MMT doesn't work so now they are after our Super:

Bobby. wrote on Nov 26^th, 2025 at 11:36am:



Your error: MMT is currently rejected by Neoclassical economists, bureaucrats and politicians in charge of national and global governance.

Hence the political chaos in the UK  (see the following post).

So politicians who are trying to 'balance the government budget', as per Neoclassical orthodoxy, will certainly try to "come after your super"...

I have already addressed the concerns re free treasury issued money (currently illegal) and inflation, in #1322:

To avoid inflation, an MMT government must ensure the resources needed for vital public services  are available for purchase, before issuing the (free) 'public money' needed to purchase them.

I note you still haven't understood the difference between interest-bearing money which is "printed" by central banks, and (free) treasury-created money.

Bobby. wrote on Nov 26^th, 2025 at 7:29pm:


Again,  courtesy of Neoclassical economics.

The post-Keynesian privatization ideology in place since the 80s has failed, hence governments once again have to create jobs outside of the private sector.

The US is about the only economy where an AI boom is growing the economy (though the benefits mainly accrue to billionaires); all other 1st world economies are moribund like the UK (detailed in the previous post) partly because China - the "world's factory" - reigns over the production of consumer goods, a feat achieved under WTO "freetrade" rules.

Bobby. wrote on Nov 27^th, 2025 at 12:47pm:


Oh - you are back to your uncomprehending narrative  re 'funny money'.

I have explained to you many times already, ALL money is 'funny money' ie created out of thin air.

The real question is: should the private sector or the public sector manage its distribution....

If you are a  'survival of the fittest', private enterprise,  free market ideologue, your choice will be obvious.

I prefer a productive combination of central planning and private enterprise, as already noted in #1322. 

Quote:


Jobs in the public-sector caring industries are not "fake jobs", regardless of how government funds them.

Bobby. wrote on Nov 27^th, 2025 at 2:42pm:


I didn't have to waste too much time; JM Keynes (who died in 1946) was responsible for the very successful, post-WW2 'welfare state' era which saw governments funding social programs (eg, hospitals and housing) via deficit spending, for the first time. 

Unfortunately, the 'stagflation' which arose during the Arab oil embargo couldn't be cured by Keynes' deficit spending policies (which would normally counter recessions), so economists who instinctively disliked  public sector spending saw their  chance, and reverted to pre Great Depression  private sector economics - hence the arrival of Neoclassical economics which is devastating the world today.

https://www.gresham.ac.uk/watch-now/oil-shock

The oil shocks of 1973 and 1979 led to international disruption and a crisis in the post-war order. Domestically, weaker productivity growth, the squeeze on profits, and de-industrialisation led to conflict between capital and labour. Public finances came under strain and led to major changes associated with Thatcher and Reagan. The result was an intellectual revolution: a shift to neo-liberalism** with a stress on individualism and incentives rather than collectivism and equality, and greater power for finance. ‘Hyper-globalisation’ now prioritised international over domestic concerns.

**and the delusional economics behind neoliberalism , namely Neoclassicism.

I could tell where the video's narrator was going as soon as he mentioned 'Keynes' and 'massive debt' in the same sentence;  indeed debt is now reaching catastrophic proportions around the globe and is forcing governments into 'austerity' which will destabilize democracy itself.

Yet the post-WW2 Keynesian period (1946-1970)was the most successful for capitalism in history....until the price of oil quadrupled in the 70's because the Arabs were angry with Israel, and the 'sleeping giant' Asia, at the same time, roused itself out of the ashes of WW2 and beat the Western capitalists at their own game until, finally, China became  'the world's factory'.

Trump is very displeased....

Bobby. wrote on Nov 27^th, 2025 at 7:40pm:


"Good times"....?

Not according to actual history, eg in the US since WW2.

https://en.wikipedia.org/wiki/History_of_the_United_States_public_debt#:~:text=A...

United States public debt as a percentage of GDP reached its peak during Harry Truman's first presidential term, amidst and after World War II. It rapidly declined in the post-World War II period, reaching a low in 1973 under President Richard Nixon. Since then, debt as a share of GDP has consistently risen, with exceptions during the terms of Presidents Jimmy Carter and Bill Clinton. Public debt surged during the 1980s, as Ronald Reagan cut tax rates and increased military spending, while it decreased in the 1990s due to reduced military spending, increased taxes, and the economic boom.

Public debt sharply rose following the 2008 financial crisis, driven by significant tax revenue declines and spending increases.

Note:

1. US public debt/GDP rapidly declined in the post war, high-growth Keynesian period.

2. Since the 70s Arab oil embargo,  US public debt/GDP has consistently risen, except under Democratic presidents  Carter and Clinton.

3. Reagan (who followed Carter in 1981) cut taxes, hoping this would  grow the economy according to the Neoclassical small government 'trickle down' theory.

4. Clinton raised taxes, reduced spending and US publc debt/GDP stabilized.

5. GFC (2008-)  caused big increase in US public debt/GDP.....the government has to save the private sector from itself....tax revenue automatically declined because wages collapsed.

6. Ditto for the  pandemic (2021-); government had to borrow to keep locked down workers alive.

......

So you can see your statement: "Govts. got too used to borrowing massive amounts of money even in good times" ignores exigencies of dealing with recessions following the  dot.com crash (2000), real estate boom and bust (GFC), military spending, and pandemics.    

eg,

The economy was in a recession when Carter came to Washington. Immediately upon taking office, he declared that his primary domestic goal was to create jobs for the unemployed. At his request, Congress passed an Economic Stimulus Appropriations Act to create jobs and help the economy.

   
Quote:


More glib assertions; Labor promised lower taxes than the Coalition in the last election, and won,  because  Labor - following  Bill Shorten's defeat -  has learned the 'Catch-22' of politics, namely:

governments need to raise taxes to fund vital public services (health, public-housing/infrastructure, education); but governments need to reduce taxes to get elected.

Hence my work promoting a new system, to replace the current dysfunctional Neoclassical system in which government debt keeps growing despite the best attempts at 'fiscal discipline' to "balance the budget" (which Reeves and Chalmers are contuinually bleating about, while the US is merrily increasing its debt via the Big Beautiful Bill), resulting in enforcing 'austerity' on low income groups, thus destabilizing democracy itself.

Jasin wrote Yesterday at 4:21pm:



This thread should be moved there.

I don't think FD likes TGD though - he calls him a commie.