.png)
Upper (red) line = (Net Domestic Product) ÷ (Employment)
Lower (blue) line = (Average Non-Supervisory Compensation per Hour) x (Average # of hours worked)
Tuesday, January 31, 2012
class analysis....goldn age industrialists... ron paul eat your heart out
"While the Tories, the Whigs, the Peelites — in fact, all the parties we have hitherto commented upon — belong more or less to the past, the Free Traders (the men of the Manchester School, the Parliamentary and Financial Reformers) are the official representatives of modern English society, the representatives of that England which rules the market of the world. They represent the party of the self-conscious Bourgeoisie, of industrial capital striving to make available its social power as a political power as well, and to eradicate the last arrogant remnants of feudal society. This party is led on by the most active and most energetic portion of the English Bourgeoisie — the manufacturers. What they demand is the complete and undisguised ascendancy of the Bourgeoisie, the open, official subjection of society at large under the laws of modern, Bourgeois production, and under the rule of those men who are the directors of that production. By Free Trade they mean the unfettered movement of capital, freed from all political, national and religious shackles. The soil is to be a marketable commodity’ and the exploitation of the soil is to be carried on according to the common commercial laws. There are to be manufacturers of food as well as manufacturers of twist and cottons, but no longer any lords of the land. There are, in short, not to be tolerated any political or social restrictions, regulations or monopolies, unless they proceed from “the eternal laws of political economy,” that is, from the conditions under which Capital produces and distributes. The struggle of this party against the old English institutions, products of a superannuated, an evanescent stage of social development, is resumed in the watchword:
Produce as cheap as you can, and do away with all the faux frais of production
And this watchword is addressed not only to the private individual
, but to the nation at large principally.
Royalty, with its “barbarous splendors,” its court, its civil list and its flunkeys — what else does it belong to but to the faux frais of production?
The nation can produce and exchange without royalty; away with the crown
. The sinecures of the nobility, the House of Lords?
faux frais of production.
The large standing army?
faux frais of production.
The Colonies?
faux frais of production.
The State Church, with its riches, the spoils of plunder or of mendicity?
faux frais of production.
Let parsons compete freely with each other, and everyone pay them according to his own wants.
The whole circumstantial routine of English Law,
with its Court of Chancery?
faux frais of production.
National wars?
faux frais of production.
England can exploit foreign nations more cheaply while at peace with them.
You see, to these champions of the British Bourgeoisie, to the men of the Manchester School, every institution of Old England appears in the light of a piece of machinery as costly as it is useless, and which fulfils no other purpose than to prevent the nation from producing the greatest possible quantity at the least possible expense, and to exchange its products in freedom.
Necessarily, their last word is the Bourgeois Republic, in which free competition rules supreme in all spheres of life;
in which there remains altogether that minimum only of government which is indispensable for the administration, internally and externally, of the common class interest and business of the Bourgeoisie;
and where this minimum of government is as soberly, as economically organized as possible.
Such a party, in other countries, would be called democratic.
But it is necessarily revolutionary, and the complete annihilation of Old England as an aristocratic country is the end which it follows up with more or less consciousness.
Its nearest object, however, is the attainment of a Parliamentary reform
which should transfer to its hands the legislative power necessary for such a revolution.
But the British Bourgeois are not excitable Frenchmen.
When they intend to carry a Parliamentary reform they will not make a Revolution of February.
On the contrary. Having obtained, in 1846, a grand victory over the landed aristocracy by the repeal of the Corn Laws, they were satisfied with following up the material advantages of this victory, while they neglected to draw the necessary political and economical conclusions from it, and thus enabled the Whigs to reinstate themselves into their hereditary monopoly of government.
During all the time, from 1846 to 1852, they exposed themselves to ridicule by their battle-cry: Broad principles and practical (read small) measures.
And why all this?
Because in every violent movement they are obliged to appeal to the working class.
And if the aristocracy is their vanishing opponent the working class is their arising enemy.
They prefer to compromise with the vanishing opponent rather than to strengthen the arising enemy, to whom the future belongs, by concessions of a more than apparent importance.
Therefore, they strive to avoid every forcible collision’ with the aristocracy; but historical necessity and the Tories press them onwards.
They cannot avoid fulfilling their mission, battering to pieces Old England, the England of the Past; and the very moment when they will have conquered exclusive political dominion, when political dominion and economical supremacy will be united in the same hands, when, therefore, the struggle against capital will no longer be distinct from the struggle against the existing Government — from that very moment will date the social revolution of England."
Produce as cheap as you can, and do away with all the faux frais of production
And this watchword is addressed not only to the private individual
, but to the nation at large principally.
Royalty, with its “barbarous splendors,” its court, its civil list and its flunkeys — what else does it belong to but to the faux frais of production?
The nation can produce and exchange without royalty; away with the crown
. The sinecures of the nobility, the House of Lords?
faux frais of production.
The large standing army?
faux frais of production.
The Colonies?
faux frais of production.
The State Church, with its riches, the spoils of plunder or of mendicity?
faux frais of production.
Let parsons compete freely with each other, and everyone pay them according to his own wants.
The whole circumstantial routine of English Law,
with its Court of Chancery?
faux frais of production.
National wars?
faux frais of production.
England can exploit foreign nations more cheaply while at peace with them.
You see, to these champions of the British Bourgeoisie, to the men of the Manchester School, every institution of Old England appears in the light of a piece of machinery as costly as it is useless, and which fulfils no other purpose than to prevent the nation from producing the greatest possible quantity at the least possible expense, and to exchange its products in freedom.
Necessarily, their last word is the Bourgeois Republic, in which free competition rules supreme in all spheres of life;
in which there remains altogether that minimum only of government which is indispensable for the administration, internally and externally, of the common class interest and business of the Bourgeoisie;
and where this minimum of government is as soberly, as economically organized as possible.
Such a party, in other countries, would be called democratic.
But it is necessarily revolutionary, and the complete annihilation of Old England as an aristocratic country is the end which it follows up with more or less consciousness.
Its nearest object, however, is the attainment of a Parliamentary reform
which should transfer to its hands the legislative power necessary for such a revolution.
But the British Bourgeois are not excitable Frenchmen.
When they intend to carry a Parliamentary reform they will not make a Revolution of February.
On the contrary. Having obtained, in 1846, a grand victory over the landed aristocracy by the repeal of the Corn Laws, they were satisfied with following up the material advantages of this victory, while they neglected to draw the necessary political and economical conclusions from it, and thus enabled the Whigs to reinstate themselves into their hereditary monopoly of government.
During all the time, from 1846 to 1852, they exposed themselves to ridicule by their battle-cry: Broad principles and practical (read small) measures.
And why all this?
Because in every violent movement they are obliged to appeal to the working class.
And if the aristocracy is their vanishing opponent the working class is their arising enemy.
They prefer to compromise with the vanishing opponent rather than to strengthen the arising enemy, to whom the future belongs, by concessions of a more than apparent importance.
Therefore, they strive to avoid every forcible collision’ with the aristocracy; but historical necessity and the Tories press them onwards.
They cannot avoid fulfilling their mission, battering to pieces Old England, the England of the Past; and the very moment when they will have conquered exclusive political dominion, when political dominion and economical supremacy will be united in the same hands, when, therefore, the struggle against capital will no longer be distinct from the struggle against the existing Government — from that very moment will date the social revolution of England."
is this a repeat ? ..so what
The whole game of macronautics is about comparative dynamics
The target is often far less problematic then the closing speed
Here in the states we all want to get to nairu as well as retain a tame price level
But the acceptable time to target for arrival at nairu
and the acceptable time to retstore the fetish 2% inflation rate
Seems oddly asymmetric
If we are below nairu..er actually we pre empt that outcome
If we are above nairu we seem to accept a slow clopping pace back down
vide now !
If we are below 2% ...yikes we don't do anything to get back to target
let alone do it at flank speed
If above target inflation ?
There and only there
do we seem to have a reasonable acceptable time to closing on target
Now I admit since the volckerdammerung
We have had very little volatility in the inflation core rate
And a bit more in the UE flux
But let's get some explicit time frames here
for the four different deviations
----------------
whats the welfare loss from one percent off target on inflation versus one percent off target on employment
on the up side ?
on the down side ?
we have four determinations
and each one is expressed as a function of both distance and side of target eh ?
is the welfare loss linear in both or either dimension ??
if bent
how bent ?
gets kinda interesting
The target is often far less problematic then the closing speed
Here in the states we all want to get to nairu as well as retain a tame price level
But the acceptable time to target for arrival at nairu
and the acceptable time to retstore the fetish 2% inflation rate
Seems oddly asymmetric
If we are below nairu..er actually we pre empt that outcome
If we are above nairu we seem to accept a slow clopping pace back down
vide now !
If we are below 2% ...yikes we don't do anything to get back to target
let alone do it at flank speed
If above target inflation ?
There and only there
do we seem to have a reasonable acceptable time to closing on target
Now I admit since the volckerdammerung
We have had very little volatility in the inflation core rate
And a bit more in the UE flux
But let's get some explicit time frames here
for the four different deviations
----------------
whats the welfare loss from one percent off target on inflation versus one percent off target on employment
on the up side ?
on the down side ?
we have four determinations
and each one is expressed as a function of both distance and side of target eh ?
is the welfare loss linear in both or either dimension ??
if bent
how bent ?
gets kinda interesting
NK from the inside
its a quale
like the color red
which you may see as i see green
but so long as we each have as many qualia as we have colors
we'll never know for sure
nick the nugget's nexus the c d howe institute
"the embrace of continental free trade by successive federal governments; elimination of federal and provincial deficits; lowering of inflation and establishment of inflation targets; reform of the Canada and Quebec Pension Plans; implementation of lower and more competitive business taxes; and innovation and reform of social programs."
nuff said eh ??
as i commented at his site
if you want to see nicks noetic iv bag
go here :
http://www.cdhowe.org/
an outfit as wickedly prudent and old school
as our heritage foundation
nuff said eh ??
as i commented at his site
if you want to see nicks noetic iv bag
go here :
http://www.cdhowe.org/
an outfit as wickedly prudent and old school
as our heritage foundation
a brit in love with lerner attacks rowe v wages pomp trot
rowe waves the distortion wand
over G tax and spend
and the equity wand
over G borrow and spend
ralph musgave brit beaver chews into this hollow log of a brain:
"why nike isn't monetary policy alone distortionarytoo
assuming that by “monetary policy” one means interest rate adjustment.
Such adjustments work only via entities that are significantly reliant loans
versus those not reliant on lending at all
. You might as well boost an economy only via people with red or blonde hair."
.
ralph you abba nut one
rowe lives inside his model
like buster brown lived inside his shoe
he has no stinking need for heterogenous thises and thats hes and hers etc etc
distortion is waved around in the marginalia
where the single agent can only f his future self
by getting the HOLY G (he elected ?)
to borrow now from himself
to buy a candy bar
to burn and reduce his consumption now
instead of using the funds himself
to lend to himself to hire himself with the candy bar
to build a machine to make candy bars out of candy bars
the x ray projection of a anti G spirit
nr:
does a gotcha for goo goos :
"I notice a correlation between people who want to use fiscal policy to escape the ZLB and people who would like G to be bigger permanently."
of course
the increase G move
versus
the lower tax to borrow ratio
gets at this point too
and right within the fisc forward "community"
at any rate
" Am I being a little bit cynical here?"
ankle biters chortle
" I don't ever remember hearing anyone advocate
a cut in future G as a way to escape the ZLB,
based on good NK modelling. "
chortle chortle hee hee hee..... heh heh
i see a spring pop out of rowes head here
he's so pleased with himself
does a gotcha for goo goos :
"I notice a correlation between people who want to use fiscal policy to escape the ZLB and people who would like G to be bigger permanently."
of course
the increase G move
versus
the lower tax to borrow ratio
gets at this point too
and right within the fisc forward "community"
at any rate
" Am I being a little bit cynical here?"
ankle biters chortle
" I don't ever remember hearing anyone advocate
a cut in future G as a way to escape the ZLB,
based on good NK modelling. "
chortle chortle hee hee hee..... heh heh
i see a spring pop out of rowes head here
he's so pleased with himself
NK the cyclops macro model
here's a toon version of NK by our old friend butt plug rowe
the shame-less indestructable nit wit neo liberal
"Let's assume that New Keynesian macroeconomics is 100% correct.
What role is there for fiscal policy?"
the shame-less indestructable nit wit neo liberal
"Let's assume that New Keynesian macroeconomics is 100% correct.
What role is there for fiscal policy?"
"....in normal times there is no role for fiscal policy as a tool to control Aggregate Demand. Monetary policy can handle AD all by itself."
"The New Keynesian case for fiscal policy as a tool to influence AD only applies at the Zero Lower Bound, when monetary policy is supposedly incapable of doing the job by itself. Let's concentrate on that ZLB case."
" New Keynesian macroeconomists recognise that a commitment to future monetary policy can still be effective at the ZLB. The central bank promises that in future it will leave interest rates "too low for too long". So, why can't we say that monetary policy still works, even at the ZLB? "
" is that such a promise might not be credible."
" OK. Let's grant them that assumption. Promises about future monetary policy are assumed not credible."
" First consider a permanent increase in government spending in a New Keynesian model. "
"The result is no change in the natural rate of interest. "
"For a given time-path of Y
a permanent increase of G and a permanent decrease of C
by an equal amount
will leave the consumption-Euler equation still satisfied
at the original time-path of real interest rates."
" Intuitively, a permanent increase in G means an equivalent reduction in permanent disposable income and an equivalent reduction in desired consumption."
what ? u cry what ?
" If the government takes part of national income and spends it ..
in New Keynesian models G does not appear in the representative agent's utility function "
lets stop right there
why would this assumption strike anyone
as anything but a trick move eh ??
G in this comes off like a welfare drain
but what if G is a transfer system ?
you know payments to paul out of taxes to peter ?
well there is no possible transfer system
WHEN THERE IS ONLY ONE AGENT !!!
there is no peter and paul
just as there is no defaults
and no real role for money
and
but i get ahead of myself
preview of next post on death to NK
rowe:
"... a temporary increase in G? "
" It's all in the framing. There is no reality in these matters."
" These are all social constructions of reality"
" We theorists shouldn't be suckered into believing that our conceptual schemes are out there in the real world. Except, the conceptual schemes of real people out there in the real world are part of the reality of that world, for a social scientist."
" And the Neo-Wicksellian social construction of reality, in which "monetary policy" is defined as "setting interest rates", is a damned bad reality to construct. Especially when we hit the ZLB."
wow that last passage is a real peach eh ?
"Neo-Wicksellian social construction of reality"
"The New Keynesian case for fiscal policy as a tool to influence AD only applies at the Zero Lower Bound, when monetary policy is supposedly incapable of doing the job by itself. Let's concentrate on that ZLB case."
" New Keynesian macroeconomists recognise that a commitment to future monetary policy can still be effective at the ZLB. The central bank promises that in future it will leave interest rates "too low for too long". So, why can't we say that monetary policy still works, even at the ZLB? "
" is that such a promise might not be credible."
" OK. Let's grant them that assumption. Promises about future monetary policy are assumed not credible."
" First consider a permanent increase in government spending in a New Keynesian model. "
"The result is no change in the natural rate of interest. "
"For a given time-path of Y
a permanent increase of G and a permanent decrease of C
by an equal amount
will leave the consumption-Euler equation still satisfied
at the original time-path of real interest rates."
" Intuitively, a permanent increase in G means an equivalent reduction in permanent disposable income and an equivalent reduction in desired consumption."
what ? u cry what ?
" If the government takes part of national income and spends it ..
in New Keynesian models G does not appear in the representative agent's utility function "
lets stop right there
why would this assumption strike anyone
as anything but a trick move eh ??
G in this comes off like a welfare drain
but what if G is a transfer system ?
you know payments to paul out of taxes to peter ?
well there is no possible transfer system
WHEN THERE IS ONLY ONE AGENT !!!
there is no peter and paul
just as there is no defaults
and no real role for money
and
but i get ahead of myself
preview of next post on death to NK
rowe:
"... a temporary increase in G? "
" It's all in the framing. There is no reality in these matters."
" These are all social constructions of reality"
" We theorists shouldn't be suckered into believing that our conceptual schemes are out there in the real world. Except, the conceptual schemes of real people out there in the real world are part of the reality of that world, for a social scientist."
" And the Neo-Wicksellian social construction of reality, in which "monetary policy" is defined as "setting interest rates", is a damned bad reality to construct. Especially when we hit the ZLB."
wow that last passage is a real peach eh ?
"Neo-Wicksellian social construction of reality"
glass house credit goes smash...death to the NK paradigm ... the credit con macronautics has run aground
to maintain acceptable average levels of unemployment over the cycle
new keynesian models are used to cover
what in reality is a credit flow rate adjustment to households
yes usury macro
the trick is to tilt toward housing loans
without relying on rising lot values as part of the collateral
that maxim got violated over the two last cycles
boink
when the lot bubble poped
we got not just foreclosures
we got bank loses and a huge back up of inventory
result:
the new housing production rate collapsed
and feed forwards kicked in
that were arrested by deficit spending increases but
not replaced by renewed household spending
because the household credit window narrowed
as collateral crumbled
not to recovery let alone surpass earlier peaks
the only solution is to push up nominal wages
that has only happened once in the last 32 years
during the second term of clinton
when we were in an investment boom domestically
as well as the end time of a trade gap hiatus
besides the usual consumer durable/housing credit goose
to think we can return to the new keynesian model
that supported a credit only macronautics
is nonsense
"As a minister, I experienced the power of industrialists and bankers to get their way by use of the crudest form of economic pressure, even blackmail, against a Labour Government. Compared to this, the pressure brought to bear in industrial disputes is minuscule. This power was revealed even more clearly in 1976 when the IMF secured cuts in our public expenditure. These lessons led me to the conclusion that the UK is only superficially governed by MPs and the voters who elect them. Parliamentary democracy is, in truth, little more than a means of securing a periodical change in the management team, which is then allowed to preside over a system that remains in essence intact. If the British people were ever to ask themselves what power they truly enjoyed under our political system they would be amazed to discover how little it is, and some new Chartist agitation might be born and might quickly gather momentum."
Death to new Keynesian models
assume the nk model is reality ?
why not assume hicks hansen is reality ?
one is closer then the other to ..real reality ??
that's like saying a ten foot bound across a twenty foot gap
over a chasm a mile deep
is better then a four foot bound
no its worse then saying that
A longer leap that still fals short at least suggests progress is linear here
Just lay out more of the same all the way to twenty one feet
whereas
there is no reason a priori to assume reality modeled would produce model results
closer to NK then hicks hansen
----------
come on admit it nick
you don't want kalecki to be correct
http://mrzine.monthlyreview.org/2010/kalecki220510.html
it would make practical policy solutions to the macro problems we face
plausible
to policy makers and public alike
that for you personally
for reasons too deeply embedded and intricate and adventitious
to adequately excavate
must remain wedged up in the fudge factory for ever and a day
transfer system based optimal path employment
such a straight forward model
but the damn gadget
must be prevented by all hebephrenic logic chopping
and snake charmer casuistry
time and circumstances permit
what a mandate from corporate heaven
why not assume hicks hansen is reality ?
one is closer then the other to ..real reality ??
that's like saying a ten foot bound across a twenty foot gap
over a chasm a mile deep
is better then a four foot bound
no its worse then saying that
A longer leap that still fals short at least suggests progress is linear here
Just lay out more of the same all the way to twenty one feet
whereas
there is no reason a priori to assume reality modeled would produce model results
closer to NK then hicks hansen
----------
come on admit it nick
you don't want kalecki to be correct
http://mrzine.monthlyreview.org/2010/kalecki220510.html
it would make practical policy solutions to the macro problems we face
plausible
to policy makers and public alike
that for you personally
for reasons too deeply embedded and intricate and adventitious
to adequately excavate
must remain wedged up in the fudge factory for ever and a day
transfer system based optimal path employment
such a straight forward model
but the damn gadget
must be prevented by all hebephrenic logic chopping
and snake charmer casuistry
time and circumstances permit
what a mandate from corporate heaven
Monday, January 30, 2012
Dead weight loss is a dead weight calculation
Ever instructive negative example
Nick the knack Rowe
Suggests u wouldn't want to use the tax to borrow ratio to maintain adequate net job growth
And adequately tight job markets
Why
1)Dead weight loss thru shifting tax hits
And
2) inter generational inequities
The second reason we can save for a lter post
But dead weight loss thru the ever shifting rate of extraction on various revenue sources
So we use Ramsey rule to raise and arrange rates
and Ramsey rule to lower and rearrange rates ?
Hradly
The net fow change is a equity question
The loss is in fairness not efficiency
Oddly the second point
Looks like it's about efficiency and not equity eh ?
Nice going Nick
A clean reversal
from the real concerns
To their opposites
Nick the knack Rowe
Suggests u wouldn't want to use the tax to borrow ratio to maintain adequate net job growth
And adequately tight job markets
Why
1)Dead weight loss thru shifting tax hits
And
2) inter generational inequities
The second reason we can save for a lter post
But dead weight loss thru the ever shifting rate of extraction on various revenue sources
So we use Ramsey rule to raise and arrange rates
and Ramsey rule to lower and rearrange rates ?
Hradly
The net fow change is a equity question
The loss is in fairness not efficiency
Oddly the second point
Looks like it's about efficiency and not equity eh ?
Nice going Nick
A clean reversal
from the real concerns
To their opposites
Sunday, January 29, 2012
from the "you see this sort of passage everywhere" collection
"The Federal Reserve appears committed to a 2% target under any circumstances, with even a temporary increase considered unacceptable"
ya its a real dick pull that one
imagine this rewrite :
"The Federal Reserve appears committed to a 4% unemployment target under any circumstances, with even a temporary increase considered unacceptable"
wild eh ??
so why is above target inflation so much more intolerable
to the fed then above target unemployment ?
do i have to answer that for any of you kids ??
ya its a real dick pull that one
imagine this rewrite :
"The Federal Reserve appears committed to a 4% unemployment target under any circumstances, with even a temporary increase considered unacceptable"
wild eh ??
so why is above target inflation so much more intolerable
to the fed then above target unemployment ?
do i have to answer that for any of you kids ??
The Weimar golden age 1924-1929
After the hyper inflation climax to the reparations nonsense
Germany took off
So much for the deep and lasting devestations of run away inflation
Clearing the nostrils of debt might have been a Phillip eh ?
Germany took off
So much for the deep and lasting devestations of run away inflation
Clearing the nostrils of debt might have been a Phillip eh ?
Lovely transfer union
" In terms of economic contribution to their respective monetary unions, both Wales and Greece are roughly equal, packing a fairly weak punch of about 3 percent. Both are heavily dependent on public spending. Wales is even poorer than Greece, generating a gross domestic product equal to $23,100 per person, compared with Greece’s G.D.P. of $26,900 per person.
Despite the similar economic profiles, Britain is far more generous with Wales than the European Union is with Greece. Compared with the nearly $23 billion in funds London sends to Wales every year, which is used to bolster local tax revenue and pay for services like health care and education, Greece receives on average about 2.9 billion euros a year in structural funds, or $3.7 billion, devoted mostly at specific development projects "
Now I'd like a net number here
But the points made
----------------------
If we were made aware of every states plus minus would tensions arise
Despite the similar economic profiles, Britain is far more generous with Wales than the European Union is with Greece. Compared with the nearly $23 billion in funds London sends to Wales every year, which is used to bolster local tax revenue and pay for services like health care and education, Greece receives on average about 2.9 billion euros a year in structural funds, or $3.7 billion, devoted mostly at specific development projects "
Now I'd like a net number here
But the points made
----------------------
If we were made aware of every states plus minus would tensions arise
The stock effects
Talk about even GE based impacts on various agents
Of any flow rate changes
Needs to look at the one time stock reval effects involved
They may well swamp the flow effects
Suddenly to go over from a progressive income tax to a progressive consumption tax
Would lead to a huge burst in value to existing security holders
without even any change in returns to new buyers of securities
Facing higher prices off setting higher yields
Hence the needed implementation
of a one time wind fall tax
Of any flow rate changes
Needs to look at the one time stock reval effects involved
They may well swamp the flow effects
Suddenly to go over from a progressive income tax to a progressive consumption tax
Would lead to a huge burst in value to existing security holders
without even any change in returns to new buyers of securities
Facing higher prices off setting higher yields
Hence the needed implementation
of a one time wind fall tax
Hep on levels maybe one way street
Sure now the real line has fallen below the 2% trend line
The pwogs want
level targets not rate targets
How about if after we go to level targets
we have a surge above the trend line like the late 70's ?
My guess the rate option would be re entertained
The answers cap and trade mark ups obviously
With two way indexed contracts
The pwogs want
level targets not rate targets
How about if after we go to level targets
we have a surge above the trend line like the late 70's ?
My guess the rate option would be re entertained
The answers cap and trade mark ups obviously
With two way indexed contracts
"When the ability to achieve important goals depends on relative consumption, all bets on the efficacy of Smith’s invisible hand are off. As Darwin saw, many important aspects of life are graded on the curve, and in such cases, individual incentives often lead to mutually offsetting efforts. "
R frank
Saturday, January 28, 2012
Socially destructive inflation
Just read some blog doc from ox
That used that expression apparently without any irony
Socially destructive ?
He was referencing the 70's but obviously armed with only the most connive tonal of congenital wisdom
The trail of the levels is indeed a tale to tell
About the product price Structure AND the concomitant wage rate structure
But to hang inflation of productrices from a sky hook and call it socially destructive
Requires a fairly heavy bag of assumptions and equally partial point of view taking
Simple question which decade standing alone w better for the Anglo American job class
The 70's or the 00's ?
Or to give the new moderationaries their best decade
The 70's versus the 90's ?
Not sure the bottom 2/3's of the wage structure would pick the 90's
If both sets of numbers were laid against each other
So what was socially destructive about the 70's
Well the post war advanced economy macronautic system discovered it's limitations
Limitations that threatened the fabric of corporate domination of national policy
The climax in Britain was far more dramatic
With Bennism losing out to Thatcherism
One can speculate about the what it's of a triumphant Bennism
The declaration of a state of siege so to speak
And the state taking measures toward far greater interventionism
And the class tilt that would both reveal and necessitate
That used that expression apparently without any irony
Socially destructive ?
He was referencing the 70's but obviously armed with only the most connive tonal of congenital wisdom
The trail of the levels is indeed a tale to tell
About the product price Structure AND the concomitant wage rate structure
But to hang inflation of productrices from a sky hook and call it socially destructive
Requires a fairly heavy bag of assumptions and equally partial point of view taking
Simple question which decade standing alone w better for the Anglo American job class
The 70's or the 00's ?
Or to give the new moderationaries their best decade
The 70's versus the 90's ?
Not sure the bottom 2/3's of the wage structure would pick the 90's
If both sets of numbers were laid against each other
So what was socially destructive about the 70's
Well the post war advanced economy macronautic system discovered it's limitations
Limitations that threatened the fabric of corporate domination of national policy
The climax in Britain was far more dramatic
With Bennism losing out to Thatcherism
One can speculate about the what it's of a triumphant Bennism
The declaration of a state of siege so to speak
And the state taking measures toward far greater interventionism
And the class tilt that would both reveal and necessitate
Thursday, January 26, 2012
toleration wiith off target outcomes
if its inflation
to the high side zero toleration
if its unemployment
to the high side toleration
no symmetry here at all
in fact no explicit UE rate target
or explicit time path to completion
NAIRU changes over time the experts claim
so opitmal UE rates change
well opitmal inflation targets change too
now with zero bound and huge pri sec debt load
the inflation target oughta be 5% at least
not 2%
------------------------------
in fact the nairu and inflation rates oughta be closely yoked
7 % UE with 7% core inflation
why not ?
or
2% inflation 2% UE rate
to the high side zero toleration
if its unemployment
to the high side toleration
no symmetry here at all
in fact no explicit UE rate target
or explicit time path to completion
NAIRU changes over time the experts claim
so opitmal UE rates change
well opitmal inflation targets change too
now with zero bound and huge pri sec debt load
the inflation target oughta be 5% at least
not 2%
------------------------------
in fact the nairu and inflation rates oughta be closely yoked
7 % UE with 7% core inflation
why not ?
or
2% inflation 2% UE rate
targets must be set
first come the targets then the means to reach the targets
the goal is the thing not the required remedy
sell recovery of job markets in n quarters
with interim mile stones
create the goals and use an open loop
funding mechanism
the goal is the thing not the required remedy
sell recovery of job markets in n quarters
with interim mile stones
create the goals and use an open loop
funding mechanism
models and mechanics
keynesian multipliers
are the various dash board settings critica ?
no
do macronauts need to consider the trade off between speed and efficiency ?
yes
the now infamous ziffle memo of december 08
got the answers to this pair of questions
exactly wrong
speed of arrival atthe target and target selection itself
were the essential tasks
state a pathway back given several sets of "other" spending patterns
---spending of course on just now produced products---
"other" ?
corporate household and foreign
plus all levels of gub spending
and gub taxing
set a time line
choose a middle varient and inject thru the transfer system
payments and tax rebates
but only the first 4 quarters
with a 2 quarter out adjustment node
and no additional gub spending
the health system the payroll system the retirement system
the unemployment and low income systems can all be engaged immediately
the revenues from any taxing system at all levels can be replaced
with federal borrowed funds
each state getting say
cola corrected per capita payment
ie equal real purchasing power
are the various dash board settings critica ?
no
do macronauts need to consider the trade off between speed and efficiency ?
yes
the now infamous ziffle memo of december 08
got the answers to this pair of questions
exactly wrong
speed of arrival atthe target and target selection itself
were the essential tasks
state a pathway back given several sets of "other" spending patterns
---spending of course on just now produced products---
"other" ?
corporate household and foreign
plus all levels of gub spending
and gub taxing
set a time line
choose a middle varient and inject thru the transfer system
payments and tax rebates
but only the first 4 quarters
with a 2 quarter out adjustment node
and no additional gub spending
the health system the payroll system the retirement system
the unemployment and low income systems can all be engaged immediately
the revenues from any taxing system at all levels can be replaced
with federal borrowed funds
each state getting say
cola corrected per capita payment
ie equal real purchasing power
Monday, January 23, 2012
exaptation
we can use this notion to explain repurposed institutions in class society
one wonders in the case of the "state party " whether it gets itself repurposed precisely because the demands on the state require this nasty
qualitative trans mogrification of the revolutionary party
one wonders in the case of the "state party " whether it gets itself repurposed precisely because the demands on the state require this nasty
qualitative trans mogrification of the revolutionary party
the bray of the fool
"If the profit system is retained
then it can be expected to reassert its dominance
over human needs."
the chrome steel chains on kong
" The empirical evidence for this is
overwhelming."
we'll let that stand ...but not this :
" From a Marxist theoretical perspective
the answer is:
completely remove the profit system
and produce solely and directly
for human and environmental needs."
its as if profiteers were like fleas
and this goop has a workable flea collar
show me the "empirical evidence " such a collar exists
nope
we must find ways to sublate profiteers into higher forms
of collectivized social surplus
and until we have
whether we see em or not
like fleas the clever little suckers
will always be some where
among the hairs of our dingy dog of a society
then it can be expected to reassert its dominance
over human needs."
the chrome steel chains on kong
" The empirical evidence for this is
overwhelming."
we'll let that stand ...but not this :
" From a Marxist theoretical perspective
the answer is:
completely remove the profit system
and produce solely and directly
for human and environmental needs."
its as if profiteers were like fleas
and this goop has a workable flea collar
show me the "empirical evidence " such a collar exists
nope
we must find ways to sublate profiteers into higher forms
of collectivized social surplus
and until we have
whether we see em or not
like fleas the clever little suckers
will always be some where
among the hairs of our dingy dog of a society
on balance peter diamond's OLG paper is a pro creditor class pile of shit
but hey that's what gets the big rewards
exchange with pucker butt
"There's also the micro question of how costly it is to postpone/prepone government projects."
exactly why you don't alter discretionary spending you use the tax /borrow trad off and the transfer system
exactly why you don't alter discretionary spending you use the tax /borrow trad off and the transfer system
Sunday, January 22, 2012
mgi tale of two structures
to sector total debt to gdp now :
US non fi corps 72 %
SPAIN non fi corps 134%
--nearly double--
(note comparative changes 2000-08 versus change since 2008)
households close
SPAIN 82%
US 87%
gub
SPAIN 71%
US 80%
spain has a non fi corporate debt problem.... if any
but in addition note the opposite directions of hi fi since crisis 08
US - 17 points
SPAIN + 8 points
and yet its the gub and the household sectors
that are getting the squeeze in spain and US
gubs since crisis have both seen debt ratio rise
but
Spain saw a 16 point decline 2000-08
versus
US increase in same period of 16 points
total move 2000 to now
Spain gub up 8 points
US gub up 35 points !
however neither has absolute gub debt ratio
that signals anthing like "trouble "
role of america in a multi national european revolution
according the bertie R
circa 1920
we yankees would have a decisive role
by starving them out
a blockade
an anti hoovering
-------------
seems bertie had a very crude form of ruthless ness in mind
again look at hooverian humanism at that very time
was not soft power a better weapon ??
could we actually starve a continental "gone red " system back into white ???
yes it was a long abused privillege of the brit fleet
to starve recalcitrant peoples and states in to a more docile and trackable "mood"
including most recently germany and austria
ie not just backward colored people
so why not us yankees give it a whirl ??
of course in league with our junior partner from that industrial island eden
real admiral blimp
the state of all european states that had a people fit to be starved by naval blockade
and yet thr brits did a good deal of pre emptive starving too
one might notice ireland was starved simply by the workings of the market place
and of course bengal ...several times and and and ..
lesson ?
beware the christian saxons on either side of the great pond ...eh ??
if they have navy --air force -- enough that is
circa 1920
we yankees would have a decisive role
by starving them out
a blockade
an anti hoovering
-------------
seems bertie had a very crude form of ruthless ness in mind
again look at hooverian humanism at that very time
was not soft power a better weapon ??
could we actually starve a continental "gone red " system back into white ???
yes it was a long abused privillege of the brit fleet
to starve recalcitrant peoples and states in to a more docile and trackable "mood"
including most recently germany and austria
ie not just backward colored people
so why not us yankees give it a whirl ??
of course in league with our junior partner from that industrial island eden
real admiral blimp
the state of all european states that had a people fit to be starved by naval blockade
and yet thr brits did a good deal of pre emptive starving too
one might notice ireland was starved simply by the workings of the market place
and of course bengal ...several times and and and ..
lesson ?
beware the christian saxons on either side of the great pond ...eh ??
if they have navy --air force -- enough that is
first draft of a compact popular outline of the marxist conception of human history
men and women day in and day out
produce their necessities of existence
and of course they produce these necessities thru their existing social organization
in the midst of their production process
come consequences altrerations discoveries
in a word they produce changes
over cycle after cycle of reproduction come not only
changes in the production of these necessities but in the necessities themselves
changes that in time
change the forms of social organization itself
and of course
thru those changed social forms
in turn
men and women find they are changing themselves
produce their necessities of existence
and of course they produce these necessities thru their existing social organization
in the midst of their production process
come consequences altrerations discoveries
in a word they produce changes
over cycle after cycle of reproduction come not only
changes in the production of these necessities but in the necessities themselves
changes that in time
change the forms of social organization itself
and of course
thru those changed social forms
in turn
men and women find they are changing themselves
serious confusion
type one party
long run mission to make a national revolution
type two party
long run mission to exploit a national revolution
-------------------------------
type two parties
might be guided by leninism marxism maoism
without the coming revolution they will work to lead
necessarily being the final conflict
..when and if a national revolution "happens " upon them ...
the final conflict ??
a revolutionary occurance
in which a triumphant mass of proles
self organize and proceed to build
in a continuous forward motion
the socialist structural sublation of capitalism
-------------------------
type two parties can lead any social revolution possible in that national context
what is ossible need less the say
is only discovered by taking action to push the frontier of institutional design and construction
likely
lots of two setps forward one step back in the line of march
-------------------
type one parties ??
simply " the bunk "
fidel :
"political revolutions are the result of social hurricanes "
social hurricanes are not made they happen
social hurricanes are an opprtunity
for more or less revolutionary social change
more or less social reconstruction
but that is all about ...apres the political revolution
not a priori
-------------------------------
type two revolutionary parties
obviously vigorously participate
in mass progressive social movements
within the confines of the old state
for as long as the old state holds together
long run mission to make a national revolution
type two party
long run mission to exploit a national revolution
-------------------------------
type two parties
might be guided by leninism marxism maoism
without the coming revolution they will work to lead
necessarily being the final conflict
..when and if a national revolution "happens " upon them ...
the final conflict ??
a revolutionary occurance
in which a triumphant mass of proles
self organize and proceed to build
in a continuous forward motion
the socialist structural sublation of capitalism
-------------------------
type two parties can lead any social revolution possible in that national context
what is ossible need less the say
is only discovered by taking action to push the frontier of institutional design and construction
likely
lots of two setps forward one step back in the line of march
-------------------
type one parties ??
simply " the bunk "
fidel :
"political revolutions are the result of social hurricanes "
social hurricanes are not made they happen
social hurricanes are an opprtunity
for more or less revolutionary social change
more or less social reconstruction
but that is all about ...apres the political revolution
not a priori
-------------------------------
type two revolutionary parties
obviously vigorously participate
in mass progressive social movements
within the confines of the old state
for as long as the old state holds together
the bourgeois struggle over chattel slavery
that history now complete makes a compact exemplar of the progressive side
of bouregois society and its definite limits
of bouregois society and its definite limits
BR
"The desire for some form of superiority is common to almost all energetic men.
No social system which attempts to thwart the emergence of superiority can be stable, since the lazy majority will never be a match for the energetic minority "
"In the conquests of modern industrialism,
the four secondary passions have been almost wholly dominant,
since those who directed them had no need to fear hunger or thirst.
It is the potency of vanity and love of power
that gives hope for the industrial future of Soviet Russia,
since it enables the Communist State
to enlist in its service men whose abilities might give them
vast wealth in a capitalistic society"
No social system which attempts to thwart the emergence of superiority can be stable, since the lazy majority will never be a match for the energetic minority "
"In the conquests of modern industrialism,
the four secondary passions have been almost wholly dominant,
since those who directed them had no need to fear hunger or thirst.
It is the potency of vanity and love of power
that gives hope for the industrial future of Soviet Russia,
since it enables the Communist State
to enlist in its service men whose abilities might give them
vast wealth in a capitalistic society"
basing your theory of the motives behind class history on just one of the four social passions leaves you with an open system
"Of the four passions we have enumerated, only one, namely
acquisitiveness, is concerned at all directly with men's relations to
their material conditions."
The other three--vanity, rivalry, and love of power
are concerned with social relations."
I think this is the source of what is erroneous in the Marxian interpretation of history
marxism tacitly assumes that acquisitiveness is the source of all political actions."
"I am compelled to reject Bolshevism for two reasons.." BR fall 1920
"First,
because the price mankind must pay to achieve Communism by Bolshevik methods is too terrible;
and secondly
because, even after paying the price, I do not believe the result would be what the Bolsheviks profess to desire."
"The larger events in the political life of the world are determined by
the interaction of material conditions and human passions"
human passions ??
"We may begin with desires for the necessaries of life: food, drink,
sex, and (in cold climates) clothing and housing. When these are
threatened, there is no limit to the activity and violence that men
will display"
"Planted upon these primitive desires are a number of secondary
desires."
" Love of property, of which the fundamental political
importance is obvious, may be derived historically and psychologically
from the hoarding instinct.
Love of the good opinion of others (which we may call vanity) is a desire which man shares with many animals; it is perhaps derivable from courtship, but has great survival value,among gregarious animals, in regard to others besides possible mates.
Rivalry and love of power
perhaps developments of jealousy; they are akin, but not identical.
These four passions--
acquisitiveness,
vanity,
rivalry,
love of power
after the basic instincts,
these four are the prime movers of almost all that happens in politics.
Their operation is intensified and regularized by herd instinct.
But herd instinct, by its very nature,cannot be a prime mover,
it merely causes the herd to act in unison, without determining
what the united action is to be.
Among men, as among other gregarious animals,
the united action,
in any given circumstances, is determined
by the common passions of the herd,
and
by imitation of leaders.
The art of politics consists in causing the latter to prevail over the former."
"
setting the real rate
nominal interets rate minus inflation rate
truman era clowning involved pins to the nominal rate
of course the pin rate caused huge wave motion in the real rate
point then ??
never admit negative real returns need noticing
only cap gain / cap loss on existing pile of outstanding nominally denumerated obligations
hold the nominal rate steady and you reduce the pro inflation rate flux
in nominal market value of players debt holdings
the fed buys up or sells off
enough of the fluxing supply of debt
to hold the nominal rate steady
that was truman policy
in paine policy
you counter changes in the inflation rate
to retain a stable (negative ) real rate
i'm spoofing here soul mates
truman era clowning involved pins to the nominal rate
of course the pin rate caused huge wave motion in the real rate
point then ??
never admit negative real returns need noticing
only cap gain / cap loss on existing pile of outstanding nominally denumerated obligations
hold the nominal rate steady and you reduce the pro inflation rate flux
in nominal market value of players debt holdings
the fed buys up or sells off
enough of the fluxing supply of debt
to hold the nominal rate steady
that was truman policy
in paine policy
you counter changes in the inflation rate
to retain a stable (negative ) real rate
i'm spoofing here soul mates
moral hazard nick rowe wants a fiscal rule to twin a monetary rule
wow nick
actually has a practical post not a chin scratcher
bravo mr micro sphincter
the rule v action distinction is fine
in model world
we now have the autostablizers
the system ought to move to a meade -lerner full auto stablizer
algorithmic complex
for get G spending flux
use the tax/borrow and transfer systems
set them all to counter changes in household demand trade balance
and corporate net spending
design and implement a sort of automaton macronautic
fiscal budget great helmsman
yes the accumulated deficits to gdp ratio
would need a price level rate of change policy mechanism too
and trade deficits suggest a forex mechanism agreeed on by our major trading partners
but you start where you can eh ??
world historical class tasks chapter 53
the guardians of multi national free range corporate
limited liability and maximal long run profit
are melding nicely into a single cosmo corporate elite
a class "fraction" of course and a not so invisible class faction
in national affairs everywhere
this class of course will split over a disputed opportunity
and as great powers begin to re equalize the playing field
options viable options other then Uncle Hedge will allow
much contradictory matter to spoil down or boil up into potential
use of the ultimate policy tool international great power wars
Clio has a good deal of weaving and tearing to do before that stage however
till then we can watch the future for all citizens of republic earth
toonishly and grotesquely pre figured
in the aquisitive antics
of the planet's corporate cosmo class
Saturday, January 21, 2012
Big footing pk
"debt, both public and private, can be a problem. "
"Debt is a particular way of allocating risks,
and it can be (and has been) pushed too far when people
underestimate those risks.
That realization is what a Minsky moment is all about"
"Debt is a particular way of allocating risks,
and it can be (and has been) pushed too far when people
underestimate those risks.
That realization is what a Minsky moment is all about"
Pk on financial sector debt raises questions
"money that banks owe to each other is more a reflection of the structure of the financial system than of the degree of overborrowing more broadly."
that structure changed radically in the last 30 years
What would a consolidated hi fi sector look like ?
Yes hi fi structure is not so much aBout burden as about fragility
an added elaboration of it's circuitry makes it more prone to cascading
Notice however it's hugely greater share of a hugely greater total corporate net earnings
Share
What up with dat ?
What was it doing to earn that ?
Production corporations give away extracted surplus
only where absolutely necessary
Once again the cloud above the production platform
Reflects as much the size of the asset system ie itself
As the size of the production system with it's attendant and surrounding
distribution and market systems
-------------------------------
more p-kackle
"compare two banking systems, one in which banks directly lend deposits out to customers, another in which many deposits are lent out through the interbank wholesale market, and then lent on to nonfinancial customers."
" The second system will show much higher financial-sector debt, and it is in some real sense more risky than the first "
that sez it so far as i can tell about real economy burdens
but what of the hi fi cloud itself
what if its creating credit within itself for highly leveraged securities purchases
the hi fio system can make itself not just risky but capable of an implosion
all by itself if underlying asset values convulse
" the real economy isn’t more highly indebted than in the first case.financial-sector debt is about the internal organization of intermediation, and it’s not the same kind of thing as when households or business run up a lot of debt""
but big deal professor P kettle
the hell fire from a hi fi panic ala fall 08
leaves a hi fi sector open to gashes like that cruise ship suffered
enter the giant fed bailors
that structure changed radically in the last 30 years
What would a consolidated hi fi sector look like ?
Yes hi fi structure is not so much aBout burden as about fragility
an added elaboration of it's circuitry makes it more prone to cascading
Notice however it's hugely greater share of a hugely greater total corporate net earnings
Share
What up with dat ?
What was it doing to earn that ?
Production corporations give away extracted surplus
only where absolutely necessary
Once again the cloud above the production platform
Reflects as much the size of the asset system ie itself
As the size of the production system with it's attendant and surrounding
distribution and market systems
-------------------------------
more p-kackle
"compare two banking systems, one in which banks directly lend deposits out to customers, another in which many deposits are lent out through the interbank wholesale market, and then lent on to nonfinancial customers."
" The second system will show much higher financial-sector debt, and it is in some real sense more risky than the first "
that sez it so far as i can tell about real economy burdens
but what of the hi fi cloud itself
what if its creating credit within itself for highly leveraged securities purchases
the hi fio system can make itself not just risky but capable of an implosion
all by itself if underlying asset values convulse
" the real economy isn’t more highly indebted than in the first case.financial-sector debt is about the internal organization of intermediation, and it’s not the same kind of thing as when households or business run up a lot of debt""
but big deal professor P kettle
the hell fire from a hi fi panic ala fall 08
leaves a hi fi sector open to gashes like that cruise ship suffered
enter the giant fed bailors
A death penalty for corporations that obstruct employee self organization
The NLRB should have not only inquisitorial powers but a capital punishment option
For capital crimes
The federal gubmint would take over the outfit fire the board and management
and seize
All insiders and power brokers shares and clawback bonuses
Efectively killing the outfit by lethal injection
For capital crimes
The federal gubmint would take over the outfit fire the board and management
and seize
All insiders and power brokers shares and clawback bonuses
Efectively killing the outfit by lethal injection
Gentle ben : Why not buy a couple trillion in treasury debt
When do you know you're out of a liquidity trap ?
When prices of products start rising faster
because wage rates are rising faster
So start buying till you see the wage acceleration
No don't pre empt
Don't stop when your rigged up models tell u
Wage acceleration is just around the next quarter
Wait till the accelerations are among us
Co lateral advantage
The wage to household debt ratio needs some quick improvement
When prices of products start rising faster
because wage rates are rising faster
So start buying till you see the wage acceleration
No don't pre empt
Don't stop when your rigged up models tell u
Wage acceleration is just around the next quarter
Wait till the accelerations are among us
Co lateral advantage
The wage to household debt ratio needs some quick improvement
much of the hype about rising han production costs forgets a certain off set
the inland vastneses of the han republic
there are hundreds of millions of souls yet to be released from labor intensive farming
and millions of square miles of land
yet to be assimilated into the modern production platform
this will signifigantly moderate the rise of coastal nominal wages
even as the rising rmb relative to euro-american currencies
will reduce export cost advantages
over domestic competitors
it will increase real wages everywhere in han land
Further reducing rising wage rate pressures
there are hundreds of millions of souls yet to be released from labor intensive farming
and millions of square miles of land
yet to be assimilated into the modern production platform
this will signifigantly moderate the rise of coastal nominal wages
even as the rising rmb relative to euro-american currencies
will reduce export cost advantages
over domestic competitors
it will increase real wages everywhere in han land
Further reducing rising wage rate pressures
Friday, January 20, 2012
Selling credit rates on commission leads to ....
"from 2004 to 2008, only 6.2 percent of white borrowers with good credit scores( of 660 and above)
ended up
with higher-rate mortgages.
Latinos and blacks with good credit scores were at least three times as likely to end up with higher-rate loans"
ended up
with higher-rate mortgages.Latinos and blacks with good credit scores were at least three times as likely to end up with higher-rate loans"
Two front war
Many pwogs want a living wage
But we need a living combo
Mini max Wage rate And
An earned income social dividend
That together add up to a living income for job holders
This is of course not a stand alone two part system
We still need hours and premium pay laws
And
Most important macro nautically contrived and
Maintained hyper employment levels
But we need a living combo
Mini max Wage rate And
An earned income social dividend
That together add up to a living income for job holders
This is of course not a stand alone two part system
We still need hours and premium pay laws
And
Most important macro nautically contrived and
Maintained hyper employment levels
The great petty rip !
"A survey of over 4000 low wage
workers in Chicago, Los Angeles and New York conducted by
university and non-profit researchers found: 26 percent of
the workers were paid less than the minimum wage in the
previous week, a majority were underpaid by more than $1 an
hour; a significant number worked overtime the previous week
and were not paid the legally required overtime; many were
required to come early or stay late and work "off the clock"
and were not paid for it; almost a third of the tipped
workers were not paid the minimum wage and more than 1 in 10
tipped workers had some of their money stolen by their
employer or supervisor."
workers in Chicago, Los Angeles and New York conducted by
university and non-profit researchers found: 26 percent of
the workers were paid less than the minimum wage in the
previous week, a majority were underpaid by more than $1 an
hour; a significant number worked overtime the previous week
and were not paid the legally required overtime; many were
required to come early or stay late and work "off the clock"
and were not paid for it; almost a third of the tipped
workers were not paid the minimum wage and more than 1 in 10
tipped workers had some of their money stolen by their
employer or supervisor."
You prolly know this more or less but...
10% of wage earners earn between 7.50 and 8.50 per hour
If they could get 2 k hours at that rate
They'd earn 15 to 17 k per year ...that is if they could get 2k hours
Ie 50 40 hour weeks
An eraned social dividend that equaled a doubling of the minimum wage
Might make that palatable
Cost
150 million workers times 15k ?
2.25 trillion
Progresive Wealth tax plus a progressive consumption tax
to pay for this ?
Easily Feasible and sustainable
If they could get 2 k hours at that rate
They'd earn 15 to 17 k per year ...that is if they could get 2k hours
Ie 50 40 hour weeks
An eraned social dividend that equaled a doubling of the minimum wage
Might make that palatable
Cost
150 million workers times 15k ?
2.25 trillion
Progresive Wealth tax plus a progressive consumption tax
to pay for this ?
Easily Feasible and sustainable
Ifwecouldx ray all the books at one moment in time
Would operating statements and compensation totals suggest social labor proportions ?
Obviously not
Would a correlation between hourly rate weighted " employee hours"
And market prices look closely enough to support empirically
The law of value
Or is it only thru
a panel of prices and related labor hours
OVER TIME
That the law of value emerges from the numbers at the surface
Ie
is it a dynamic law a law of motion
------------------------------
Related. Law
The law of wages
Is this also a dynamic law
Relative wage rates
Reflecting the relative price of production for different types of labor power
Obviously not
Would a correlation between hourly rate weighted " employee hours"
And market prices look closely enough to support empirically
The law of value
Or is it only thru
a panel of prices and related labor hours
OVER TIME
That the law of value emerges from the numbers at the surface
Ie
is it a dynamic law a law of motion
------------------------------
Related. Law
The law of wages
Is this also a dynamic law
Relative wage rates
Reflecting the relative price of production for different types of labor power
Thursday, January 19, 2012
there are markets and there are markets
how might a market materialize out of some related set of exchanges
the origin is of course a physical location like a flea market or shopping center
or stock exchange
but take the residential ral estate "market "
where is that ??
the extesion from location to function opens as much reification and ambiguity as
generalizing power
the origin is of course a physical location like a flea market or shopping center
or stock exchange
but take the residential ral estate "market "
where is that ??
the extesion from location to function opens as much reification and ambiguity as
generalizing power
how might corporations pareto improve a modified greenwald stigilitz system ??
do we need to add labor income houses to the GS model
b4 we can see this all clearly ??
in the game of capitalism
the key sharpener is to substitute exploitation rate
for the wage workers
savings rate no ?
capping lancaster with godwin
hewre with GS model we want to establish the various rent pockets
drained off by ceratin plausible social institutions like ...capitalist firms
that get "above " simple direct producer market exchange etc
GS explicitly point to state actions
but surely state power is not most often let alone always necessary
to tap a rent pocket
b4 we can see this all clearly ??
in the game of capitalism
the key sharpener is to substitute exploitation rate
for the wage workers
savings rate no ?
capping lancaster with godwin
hewre with GS model we want to establish the various rent pockets
drained off by ceratin plausible social institutions like ...capitalist firms
that get "above " simple direct producer market exchange etc
GS explicitly point to state actions
but surely state power is not most often let alone always necessary
to tap a rent pocket
Can the wage class work with the free class ?
Ilwu -occ friction has not abated as yet
To my surprise
The local( 19 )facing the Longview scab op
is of course not the ilwu as a whole
But clearly
minds must meet across the class divide
To my surprise
The local( 19 )facing the Longview scab op
is of course not the ilwu as a whole
But clearly
minds must meet across the class divide
taylor having fun
" Like the one-time rebate of 2001, the temporary tax cut of 2008, the cash-for-clunkers and stimulus payments of 2009, or similar policies tried back in the 1970s, these temporary policies consistently fail to stimulate sustainable recoveries"
note "sustainable recoveries
of course not these are stop gaps that oughta kick in when investment crashes or other spending slips
like household spending slipped in 09 till household spending recovers
the fiscal injections have to continue in a cross taper
here another taylor cute one
the zoom from 20 to 24 has multiple causes
including the taylor backed bush tax cuts
this in fact suggests to taylor what spending cuts ??
god knows where his high line comes from
note "sustainable recoveries
of course not these are stop gaps that oughta kick in when investment crashes or other spending slips
like household spending slipped in 09 till household spending recovers
the fiscal injections have to continue in a cross taper
here another taylor cute one
the zoom from 20 to 24 has multiple causes
including the taylor backed bush tax cuts
this in fact suggests to taylor what spending cuts ??
god knows where his high line comes from
all marginal expenditures are funded by credit
this simple reality has implications not usually investigated very far
one word leverage is a grand example here
one word leverage is a grand example here
" I have never met a personage so destitute of self importance "
that's BR on VIL
"an embodied theory."
"Bolshevism combines the characteristics of the French Revolution with those of the rise of Islam"
bertie russell September, 1920
Wednesday, January 18, 2012
still hung up on the supply of investable funds
christ jesus
there is no stinking nee for investable funds generated internally by the various agents of the economy
credit is limitless
we can control price level movements and by tax and subsidy tweek activity
given a transparent full info system
the view will be adequate to steer us ahead
and reduce the socially necessary labor time quotas
step by step as technical advances allow
and first of all forget about any private investor class
either the barren rentier variety or the clever angel
there is no stinking nee for investable funds generated internally by the various agents of the economy
credit is limitless
we can control price level movements and by tax and subsidy tweek activity
given a transparent full info system
the view will be adequate to steer us ahead
and reduce the socially necessary labor time quotas
step by step as technical advances allow
and first of all forget about any private investor class
either the barren rentier variety or the clever angel
sticky wages
this is still the spinal element in most macro interventionists models
and its wrong
there is much more sub maxima unstable forces at work
capitalism ...corporate capitalism is systemically irrational
the performance less then a better arrangement of production could achieve
however only comparative dynamics can establish this
not comparative statics
its dynamic performance that institutional arrangements impact
------------------------
corporate set prices both at the list level and the transaction level
do what they do
and produced quantities are what they are
because that set of choices looks most profitable and is also ....feasible
at the moment of decision
wages ??
they trail along for the ride these days
none of these dynamics are yet modeled of course or simulated
and feasibility has a great deal to do with credit flows and equity holder scrutiny
and its wrong
there is much more sub maxima unstable forces at work
capitalism ...corporate capitalism is systemically irrational
the performance less then a better arrangement of production could achieve
however only comparative dynamics can establish this
not comparative statics
its dynamic performance that institutional arrangements impact
------------------------
corporate set prices both at the list level and the transaction level
do what they do
and produced quantities are what they are
because that set of choices looks most profitable and is also ....feasible
at the moment of decision
wages ??
they trail along for the ride these days
none of these dynamics are yet modeled of course or simulated
and feasibility has a great deal to do with credit flows and equity holder scrutiny
gosmart as sophrosyne in political economy
in certain moods this strikes me :
the original 5 year plan
once my paradigm
now strikes me as
romantic party folly ..at best
the class war launched by the party on the peasants
a betrayal of the alliance
the gulag solution to surplus population
beyond a human tragedy
the heavy industry --- basic industry -- surge was a profligate sacrifice
the building of a modern military production platform an un necessary dissastor
this pretty well ads up to an indictment of the stalin model
but it isn't ..nothing about that model seems contingent
the first 5 year plan went forward with accelerating prodigality much like the great leap
because
nothing could prevent it
the original 5 year plan
once my paradigm
now strikes me as
romantic party folly ..at best
the class war launched by the party on the peasants
a betrayal of the alliance
the gulag solution to surplus population
beyond a human tragedy
the heavy industry --- basic industry -- surge was a profligate sacrifice
the building of a modern military production platform an un necessary dissastor
this pretty well ads up to an indictment of the stalin model
but it isn't ..nothing about that model seems contingent
the first 5 year plan went forward with accelerating prodigality much like the great leap
because
nothing could prevent it
Tuesday, January 17, 2012
pk till 1998 " I thought the liquidity trap was a myth".....tells a bigger tale then pk thinks :
"by and large, ad hoc models like IS-LM are actually more useful, in my judgment. But you probably do want to double-check your logic using fancier optimization models."
" Case in point: when I first got worried about the liquidity trap, I thought it was a myth, and set out to show that it was a myth using a simple NK model; what I actually found out was that my verbal logic was wrong, and it can indeed happen"
till 1998 he'd used verbal logic to push keyes fiscalist macronautics aside ..
" Case in point: when I first got worried about the liquidity trap, I thought it was a myth, and set out to show that it was a myth using a simple NK model; what I actually found out was that my verbal logic was wrong, and it can indeed happen"
till 1998 he'd used verbal logic to push keyes fiscalist macronautics aside ..
My take on Marx when a lesser light will due
I note a certain ruffling over at smug wood gulch
The topic
Has davey graeberunched a hole inmarx
Subject the historical emergence of money and the history of barter
I submit throwing a harpoon at Karl is a tell tale act of hubris
Why not dig up some big got willing to play historic straw man
See
Davey wants to demonstrate a barter stage of exchange never existed
Now of course once you see how it's tricked out
Who could disagree
Any more then there was a stage one could call simple commodity production
In fact that's a far more controversial assertion eh ?
The upshot of the back and forth over at smugville
The placement of Karl on the opposite side of Davy and the historical record
Is not emphatically precise
-----such that there is a historical record
In as much as these are pre historical societies we're talking about--
My take
Then why drag Karl in ?
Obviously to win great fame as the killer of the great red whale
The topic
Has davey graeberunched a hole inmarx
Subject the historical emergence of money and the history of barter
I submit throwing a harpoon at Karl is a tell tale act of hubris
Why not dig up some big got willing to play historic straw man
See
Davey wants to demonstrate a barter stage of exchange never existed
Now of course once you see how it's tricked out
Who could disagree
Any more then there was a stage one could call simple commodity production
In fact that's a far more controversial assertion eh ?
The upshot of the back and forth over at smugville
The placement of Karl on the opposite side of Davy and the historical record
Is not emphatically precise
-----such that there is a historical record
In as much as these are pre historical societies we're talking about--
My take
Then why drag Karl in ?
Obviously to win great fame as the killer of the great red whale
What exists has a necessity in it
"building a new world in the shell of the old."
This isn't restricted to prescient pre figurations
Sure we see thru the glass darkly
But
Hell as "building a new world in the shell of the old."
that's what is going on always everywhere around and inside us
The cautiously partial sense in the phrase
"all that is real is rational"
Seems lost on certain anarcho fantasticals
This isn't restricted to prescient pre figurations
Sure we see thru the glass darkly
But
Hell as "building a new world in the shell of the old."
that's what is going on always everywhere around and inside us
The cautiously partial sense in the phrase
"all that is real is rational"
Seems lost on certain anarcho fantasticals
Assembly versus soviet
Consensus as a decision rule
Open mass Participation
Direct democracy
Assemblies can exist and self sustain in real time but could they govern ?
soviets from day one used majority rule
Ie voting to make collective decisions
All power to the assemblies ?
Let is think that one thru
Open mass Participation
Direct democracy
Assemblies can exist and self sustain in real time but could they govern ?
soviets from day one used majority rule
Ie voting to make collective decisions
All power to the assemblies ?
Let is think that one thru
Monday, January 16, 2012
decision-making structures and a vanguard party
consider this dynamic form
for a party like org
ie pragmatic action involved real time confronting political organization
punctuated paradigmatic homeostasis
the moments of seriously new discourse
where a break up or break thru causes all existing paradigms to scramble into new forms interupt extended periods of majority/ minority paradigm
thus there's a whole lot of administration for every burst of deliberation
for a party like org
ie pragmatic action involved real time confronting political organization
punctuated paradigmatic homeostasis
the moments of seriously new discourse
where a break up or break thru causes all existing paradigms to scramble into new forms interupt extended periods of majority/ minority paradigm
thus there's a whole lot of administration for every burst of deliberation
in the next stage processing of intermediate commodities by means of intermediate commodities there is always there is the possibility of producting a value subtraction
"Labour always transfers the value of the means of production to the product"
caveat gosplan IIers !
" in so far as (labor) really consumes (the value of the means of production)
in a suitable manner as means of production"
exploring how tight is "suitable " becomes of interest
at some point unsuitable amounts to value subtracted
caveat gosplan IIers !
" in so far as (labor) really consumes (the value of the means of production)
in a suitable manner as means of production"
exploring how tight is "suitable " becomes of interest
at some point unsuitable amounts to value subtracted
king and lincoln our chosen pairing for American icons
why are the many discarded and the very fewest chosen
the chosen radiate a perfectly pitched ambiguity
the chosen radiate a perfectly pitched ambiguity
Sunday, January 15, 2012
for now
push vickrey macro policy reforms generally
we have open trade borders
plus a sovereign currency and a forex rate
both potentially under congressional control
we can control the trade deficit and the debt to gdp ratio with these tools
so
restrict talk of the CL mark up cap and trade system
to our health sector alone
------------------------------
possibly CL can be discussed
wrt the euro zone's various national pricing systems
--- no national forex instrument and restricted control of market interest rate---
we have open trade borders
plus a sovereign currency and a forex rate
both potentially under congressional control
we can control the trade deficit and the debt to gdp ratio with these tools
so
restrict talk of the CL mark up cap and trade system
to our health sector alone
------------------------------
possibly CL can be discussed
wrt the euro zone's various national pricing systems
--- no national forex instrument and restricted control of market interest rate---
can we find insight
the lancaster -godwin differential "capitalism games "
do they show us any features of todays capitalism
systemically essential and fetterish ??
even
if in toon form ???
i think so
now the usual two class partition is fine ..fine inded
but we oughta consider a rate of exploitation not of producer class "savings "
producer class is a "foward" label of workers
the exploiter class has the same mission
"investment " both consume too
the worker might well save or dois save at the household by household level
and exploiters might play usery games instead of investing
all of this is consumption of course
these are easy to manipulate models
once we label correctly
i suggest land and money exist
and buying land and holding money are non productive activities per se
obviously
a keen fantasy
finding and outlining the systemic fetters
that is the task of any critique of capitalism....in practice
comparative long term dynamics
and
comparative short term dynamics
right now for agitprop
outlining the institutional and class whats and whys
of our short term fetters is obviously paramount
then of course we suggest we can build a better governor
even modest steps like this :
watts governor
gibbs governor
comparative long term dynamics
and
comparative short term dynamics
right now for agitprop
outlining the institutional and class whats and whys
of our short term fetters is obviously paramount
then of course we suggest we can build a better governor
even modest steps like this :
watts governor
gibbs governor
call it the 20/30 for 40/40 demand
job system extraction norm today
40 hours a week for 40 years
george jetson update
20 hours a week for 30 years
40 hours a week for 40 years
george jetson update
20 hours a week for 30 years
why 65 ??
well at the time of draughting (early 30's )
the systems guardian class figured by 65
--for members of the broad job class--
your raw labor power was pretty much scrap
add in obsolescent skill sets .....
point ???
age for scraps subject to serious upward revisions
consider this
the system had a tacit life time average
("job life time share " "quota")
of 40 years
(some high school to 65 )
figure that quota the reduction in physical demands in aggregate job tasking
and new up to date actuarial charts and of course increased "schooling years "
and what becomes the optimal systemic water line ???
70 ??? ...72 ??
the systems guardian class figured by 65
--for members of the broad job class--
your raw labor power was pretty much scrap
add in obsolescent skill sets .....
point ???
age for scraps subject to serious upward revisions
consider this
the system had a tacit life time average
("job life time share " "quota")
of 40 years
(some high school to 65 )
figure that quota the reduction in physical demands in aggregate job tasking
and new up to date actuarial charts and of course increased "schooling years "
and what becomes the optimal systemic water line ???
70 ??? ...72 ??
saving out of income a national cult ...substitute job hours
the ultimate measure of virtue oughta be
the social sacrfice of your total life time job hours
at any quarterly interval the ratio of total post 16 job hours to waking hours
oughta determine your earned social dividend
the social sacrfice of your total life time job hours
at any quarterly interval the ratio of total post 16 job hours to waking hours
oughta determine your earned social dividend
Saturday, January 14, 2012
"True wealth is the fruit of human labour. By their mobilization, European workers can put an end to the financial orgies"
Address to the European Workers
by Jean-Luc Melenchon and Oskar Lafontaine :
With the current leaders of the European Union, we are heading for disaster.
With the current leaders of the European Union, we are heading for disaster.
For years now they have been conceding more and more power to high finance. The outcome is catastrophic. The environment has been sacrificed and unemployment has literally exploded. Wage earners are being pressurized and impoverished. The real economy has become hostage to the banks.
And now, pretexting the crises that they themselves have created, European governments intend to pursue and tighten austerity measures. Under pressure from Angela Merkel and Nicolas Sarkozy, they have decided to concoct a new treaty which will deny the European people their right to freely decide their budgets and impose tighter regulations throughout Europe. Not one of them plans on asking the people for their opinion on such a fundamental text. This is a headlong rush into a Europe of austerity. Since Europe cannot exist without or against the will of the people, we therefore demand that a referendum be called throughout our different countries concerning this future treaty
Sarkozy and Merkel want to extend the disastrous 2010 programme, a programme which has severely deteriorated the situation of German workers, to all of Europe. Their aim is to heighten competition between European wage earners and to level down the rights which have made Europe one of the world’s most socially advanced regions. This strategy deliberately pits European citizens against each other. In fact, Sarkozy and Merkel have not hesitated an instant in fanning the flames of nationalism and xenophobia, at the risk of reopening old wounds. Merkel's entourage speaks of forcing the Greeks to sell their islands. Sarkozy speaks of the new arrivals in the euro zone as poisoned pills. These provocative remarks are aimed at diverting the anger of the people away from the real culprits, the banks, high finance and the political leaders who have relinquished their power to them We call upon you to resist with all your might against the decline of our European civilisation.
We urge you not to fall into this trap, a trap that threatens peace across Europe. Together, let us preserve the friendship between our two peoples, the Germans and the French, because sustaining peace throughout Europe depends on it.
How can we guarantee peace in Europe? Peace cannot be decreed. It is cultivated through cooperation between peoples, its purpose is to serve all. It is incompatible with the domination of two arrogant heads of government over the rest. It must rely on politics that serve the general European interest. The time has come to take control in order to meet the needs and aspirations of the great mass of the population and therefore of the workers of Europe: the sharing of wealth, the protection and enlargement of the right to a decent retirement, the recovery of public services, the eradication of insecurity, the relentless struggle against poverty and inequality, and ecological transition.
We urge the European workers not to give up! Finance can do nothing against a determined people. True wealth is the fruit of human labour. By their mobilization, European workers can put an end to the financial orgies. And start building, at last, a world which is finally human.
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posted by paine