Thursday, September 29, 2016

All hail deficit bias ? ......well maybe in trade but heavens ...not in state budgets ....

First fiscal frugals seem to be the votin majority

Rather than a democratically driven deficit bias we seem to be infected with a democratically driven surplus bias. " 

This is the angel of mediocre progress SWL



"The standard view among economists before the financial crisis was that economies were prone to deficit bias: a tendency for government budget deficits and debt (as a share of GDP) to slowly increase."

 " view " or well recognized bogus verity 
Errr behind the veil of public omert√† 


 " Although there are a number of theories about why deficit bias occurs, "

Occurs or posited comrade ?


" several involve voters being at best unconcerned about it, and at worst conniving in it. "
Where and when ?

"Such theories are miles away 
from an electorate giving strong support to a government 
campaigning on reducing the deficit." 

We have arrived at the starting line at last
What follows is a brief narration of debt horror stories post crisis 08

But light dawns

The phobic response
voting majority masses has a "sell by date "

Once households aren't feeling their asses pinched ...

The return of the deficit bias ....


And
There's this also

Warning fuss budgeting as leaning against the bias
Gets labeled austerity

.as part of the on going crypto  pro deficit bias campaign ?

SWL

" austerity keeps interest rates low. So not only does austerity hit wages and profits, but it also hits 

those who rely on interest income to supplement their pension, a group who in case you need reminding have a high propensity to vote."

Love this 

"  Although asset values have gone up as well, many in this group will be reluctant or unable to turn this into income." !!! 

Now SWL  throws the baby out 

As to the political economy question"

" i  think pro deficit bias ( among the masses - op-  ) 
" would be a genuine puzzle if austerity was a long term 
phenomenon."
But it's not 
Where as anti deficit bias among elites
Is a long term ....shell game 
To hoodwink the asshole innocent votin majority 
When needed 
Yup debt crises come and go
Speaking of tighter uncle belting 

"  But  as deficit bias is not  ( long term among the proto jaquerie - op) 
we need to bring in (hopefully) short term failures of knowledge and information. "
What follows or precedes 

Here's the punch out passage 

" I (SWL PhD ) 
have not noticed campaigns to ‘save our savers’ also arguing for less austerity, 
and I suspect the reason is because they just do not see the connection. 
Who makes that connection for them? ..........
the media just does not do this kind of thing. 
Central 
banks should, but for their own reasons rarely do."

But who can argue too much with Simon on this:

" People may not act in their own self-interest if they do not know what is in their own interest, and in the short term at least this knowledge may not be made available to them."