Posts Tagged ‘Paul Samuelson’

The Trouble with Marxism (Part Two)

January 28, 2012 Leave a comment

The portion of the labor day that is socially necessary as a percentage of GDP

So, I got feedback from three people who, in one way or another, say they don’t understand my last post on my conversation with Andrew Kliman. One person posting on Reddit, complained it was too dense; another wondered if I was advocating a return to the gold standard; a third person, who I asked to read it and give me feedback, began to have difficulty with it about halfway through it. Specifically that person had difficulty understanding my discussion of the “transformation problem”.

This is three more examples of my “tin-ear”, which expressed itself in my disagreement with Andrew. I have not been able to explain “my point” in a way that is not abstract, or explain the relevancy of the various statements I make to real events within society. Part of this is because I am a “Marxist” in the same way I could be considered a “Darwinist” — I am not an expert on either. The theory makes sense to me, and I accept it as a reasonable explanation for how the world works.

But, if someone argued a eugenics distortion of Darwin, I could not argue against that person by quoting Darwin. And, if someone argued a Keynesian distortion of Marx, I probably could not argue back using quotes from Marx. Until recently I was more a leninist than a “Marxist”; having read a lot of Lenin, but little more of Marx himself than the Communist Manifesto. And, neither of them had I read for more than two decades.

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The Trouble with Marxism (Part One)

January 27, 2012 2 comments

Well, I have just about had enough of my conversation with The Andrew Kliman, so I thought I would try to assess what it accomplished instead.

My ‘tin-ear’ with Andrew began after a conversation with @skepoet on twitter about the odd divergence between gold and dollar measures of economic activity since the Great Depression of the 1930s. The dollar measure of US GDP has risen almost uninterrupted since the end of the contraction phase of the Great Depression; while the gold measure of GDP rose from 1934 to 1971, then fell until 1980, rose again from 1980 to 2001, and has been falling since.

Interesting enough, the gold measure of GDP exhibits a classic pattern of boom and bust typical of the economy prior to the Great Depression, but the dollar measure of GDP shows an almost disturbingly smooth continuous upward sweep, until the most recent difficulties of 2008. What I find most interesting about the two measures of economic activity is that, until 1933, both gold and the dollar measures of GDP exhibited the same behavior. However, this identical pattern broke down in 1934.

What accounts for this sudden divergence?

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Six degrees of Larry Summers…

August 1, 2009 Leave a comment

Click picture to go to Muckety

We thought you might want to know a little more about the economic adviser to the Messiah, Larry Summers, since he does play such a unique role in contemporary American economic history.

If you trace his connection to Robert Rubin – his mentor – you will find how he comes to be associated with the Wall Street octopus known as Goldman Sachs, and the manipulation of global markets which serve to keep the dollar as world reserve currency.

Trace his connection to Paul Samuelson, and Kenneth Arrow, and you will find he is the nephew of two Nobel Prize winners – one who is probably most responsible for formulating the political-economy of the American Empire, as it has been used to destroy the minds of several generations of young economists; the other, Kenneth Arrow, who first formulated a theory for why the current collapse of capital is not really happening.

He comes from good stock…

For a fun time, click on the name H. Rodgin Cohen, an adviser to Larry, and find out who advises him…

The Wiki has this to say of Mr. Cohen:

Regarding the worst economic crisis in 80 years, Cohen defended the financial system and Wall Street: “I am far from convinced there was something inherently wrong with the system.”

Cool tool! Enter your favorite A-list pond scum and find out how they’re being bred…