Warren Mosler, from a talk in Chianciano, Italy, on January 11, 2014 entitled Oltre L’Euro: La Sinistra. La Crisi. L’Alternativa.
What a good economy should look like
I just want to say a quick word about what a good economy is because it’s been so long since we’ve had a good economy. You’ve got to be at least as old as I am to remember it. In a good economy business competes for people. There is a shortage of people to work for business. Everybody wants to hire you. They’ll train you, whatever it takes. They hire students before they get out of school. You can change jobs if you want to because other companies are always trying to hire you. That’s the way the economy is supposed to be but that’s all turned around. For one reason, which I’ll keep coming back to, the budget deficit is too small. As soon as they started tightening up on budget deficits many years ago, we transformed from a good economy where the people were the most important thing to what I call this ‘crime against humanity’ that we have today……
So what you do is you target full employment, because that’s the kind of economy everybody wants to live in. And the right size deficit is whatever deficit corresponds to full employment…….
Read more at Beyond The Euro: The Left. The Crisis. The Alternative | New Economic Perspectives.
This is a gag right ???
Far from it. What Mosler describes is how a capitalist system should perform when it is not ‘nobbled’ by central bank and fiscal shenanigans.
That’s the socialists interpretation.
The old saying…”socialism is great….until you run out of other peoples money!”.
Surely a factor that has been overlooked in this theory is population change. Immigration through the easing of border controls has witnessed a huge transformation in population demographics. Never before have so many aspired to migrate to the richer economies of the world.
Skilled migrants bring skills the country can make use of, without having to invest many years of education to create them. They are a net economic gain.