Home > economics > Jamie Galbraith’s Dog Whistle: A Dishonest Defense of Deficits
  1. James Galbraith
    March 6, 2010 at 5:52 pm

    This is certainly the strangest reading of my views I’ve ever encountered.


    • charley2u
      March 6, 2010 at 8:19 pm

      Don’t complain to me Jamie; complain to Keynes who also stated that hours of work had to be reduced eventually. Debt induced economic expansion had to fail sooner or later. Welcome to the 21st Century.

  2. Paul Papanek
    March 7, 2010 at 3:56 am

    I read Galbraith’s article, and I believe it says the exact opposite about sources of aggregate demand. If banks are willing to lend – fine. But at the moment they’re not. The next question Galbraith tackles is this — if the Fed and the Treasury simply create new money by deficit spending, what’s the downside? Well, not much when we’re up against the zero bound in monetary policy. Should the the Fed create new money and deficit spend? Sure. The entire economy needs additional aggregate demand. What about inflation? Maybe. Someday. A long time from now. But maybe not, and we actually know how to deal with that problem if the economy were miraculously to overheat.

    So — this commentary is factually misleading.

    • charley2u
      March 7, 2010 at 11:55 am

      I haven’t finished Paul. Please read the next segment. In my first segment I show that debt is nothing more than the mortgaging of future earnings. In the second, I show that this mortgaging of future earnings takes place whether government incurs the debt or you do. And, that this must lead to a crisis, as predicted by Steve Keen and others. In the final segment, i will show that this crisis arises not from external problems with funding public or private debt, but result from the assumptions found in the debt itself.

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