Owen Paine said...
Hopeless muddle
Yes an optimal industrial policy for the United States
Should not be about industrial employment max
Balanced industrial trade as a domestic goal
above and beyond over all trade balance
Requires long run domestic economic developmental justifications
Job scarcity and wage share dynamics are a complex product of macro policy
Up shot
Maximal numbers of Jobs can be generated with adequate macro policy
And this can be accomplished regardless of the sectoral distribution of net jobs
High paying jobs ?
A supportive macro policy is necessary if not sufficient
First step
End the reserve army of the unemployed
Abolish the policy cycle
Ie
Kill NAIRU nomic
Yes an optimal industrial policy for the United States
Should not be about industrial employment max
Balanced industrial trade as a domestic goal
above and beyond over all trade balance
Requires long run domestic economic developmental justifications
Job scarcity and wage share dynamics are a complex product of macro policy
Up shot
Maximal numbers of Jobs can be generated with adequate macro policy
And this can be accomplished regardless of the sectoral distribution of net jobs
High paying jobs ?
A supportive macro policy is necessary if not sufficient
First step
End the reserve army of the unemployed
Abolish the policy cycle
Ie
Kill NAIRU nomic
Btw pgl
Invoking Mundell ... Has its limits
Conflating selected comp stat tendencies
with certain dynamic outcomes
Is Typical cue ball casuistry
with certain dynamic outcomes
Is Typical cue ball casuistry
Other factors can easily overwhelm the tendency of an improved trade balance
To lift forex and counter tariffs
Policy can squelch Mundell
Policy Including deliberate countervailing interest rate management
For example
Yes this generates its own set of additional tasks
But such is the dynamic processes
A juggler can walk with more balls then he can carry in his hands
Speaking of balls
If any one bothers to read this dash off
A pro job class macro Policy should be obvious
To anyone
Start with
A macro policy of Super tight job markets in perpetuity
Certainly accomplished
Thru adequate fiscal / credit policies
And if we get wage push inflation ?
Grow a pair comrade
Impose Lerner mark up markets
----------
Okay
Go ahead and hide behind Crackpot realism
But never contend the possible is impossible
When state power
in "enemy class hands "
is all that blocks the resolution
of current class dilemmas
-----------
And
Yes we can achieve Trade balance
Forex management
and if it's necessary to get there fast
Impose
Buffet import chits
Nonsense about fiscal constraint not withstanding
ProGrowthLiberal said...
Gee Paine is back insisting one should never pay attention to the model of his mentor as Paine can toss out all sorts of muddle as he calls the Mundell model itself hopeless muddle. Ahem.
Again don't ignore policy options
Forex policy ie a dollar dive
can counter the relative increase in domestic import absorption
Of course
Not without blow back
But in this instance that blow back would be higher rates of increase in domestic prices
A desire able outcome in itself
To get academic and moot
Forex is slow and strategic not fast and tactical
Unfortunately it closes gaps only with lags
Hence the need for phase in phase out "buffet chits " as joe Stigilitz et al now call for
Btw the WTO is slow acting chits can be superimposed fast from a stand by status
Restricting imports to some ratio to exports until forex changes bite
-----------------------Forex policy ie a dollar dive
can counter the relative increase in domestic import absorption
Of course
Not without blow back
But in this instance that blow back would be higher rates of increase in domestic prices
A desire able outcome in itself
To get academic and moot
Forex is slow and strategic not fast and tactical
Unfortunately it closes gaps only with lags
Hence the need for phase in phase out "buffet chits " as joe Stigilitz et al now call for
Btw the WTO is slow acting chits can be superimposed fast from a stand by status
Restricting imports to some ratio to exports until forex changes bite
What a garble
Are we to accept as fact
The fed under Greenspan and treasury under Rubin/Ziffle
couldn't engineer a falling dollar path thru the boom of Clinton term 2 ?
There are more variables here and possible degrees of freedom of policy action
Then pgl appears to comprehend
He might consider using a model or two
These macro historic trajectories are complexly motivated
Party partisan sycophancy obscures the options
I note banging on Reagan's deficit fails to comprehend carter appointed Volckers boston crab hold on credit flows
And the consequent nominal interest surges
Owen Paine said...
Btw
The term national savings rate is a Boy Scout misnomer
I suggest u Reserve that Calvinist merit term
for Dicken's Scrooge and your maiden aunt
Of course if trump gives the wealthy and they high of income a big tax break
We' ll have to listen to more fiscal budget buster clap trap from Clinton faction macro hacks
The term national savings rate is a Boy Scout misnomer
I suggest u Reserve that Calvinist merit term
for Dicken's Scrooge and your maiden aunt
Of course if trump gives the wealthy and they high of income a big tax break
We' ll have to listen to more fiscal budget buster clap trap from Clinton faction macro hacks
Owen Paine said...
The school masterly evocation of a model
In pgl's comment
Only adds irony to the garble
Here the "model less mind" cries use a model
When reason himself blows hot wind
Thru the vacuities in pgl's post
The tea pot in polite tempest remains a back parlor gurgle
I suggest more job work
At least Get paid for this fragmentary garble
That or retire to the Everglades and thrash about in a real not a virtual swamp
U might delight the Alligators and escaped pythons enough
To devour your foot or squeeze your throat
In pgl's comment
Only adds irony to the garble
Here the "model less mind" cries use a model
When reason himself blows hot wind
Thru the vacuities in pgl's post
The tea pot in polite tempest remains a back parlor gurgle
I suggest more job work
At least Get paid for this fragmentary garble
That or retire to the Everglades and thrash about in a real not a virtual swamp
U might delight the Alligators and escaped pythons enough
To devour your foot or squeeze your throat
Owen Paine said...
Reason
Increased foreign demand for dollar denominated paper does hold up uncle SAMs imperial forex rate
But as dean strenuously points out
This too can be countered by fed and treasury policy
Allowing the dynamics of various interconnected paper markets to dictate
An adverse course of forex is either delinquency negligence or narrow interests at work
In this case those narrow interests were those of Mistress Wall Street and her many privateering MNC clients
The domestic industrial job class played shock absorber
Increased foreign demand for dollar denominated paper does hold up uncle SAMs imperial forex rate
But as dean strenuously points out
This too can be countered by fed and treasury policy
Allowing the dynamics of various interconnected paper markets to dictate
An adverse course of forex is either delinquency negligence or narrow interests at work
In this case those narrow interests were those of Mistress Wall Street and her many privateering MNC clients
The domestic industrial job class played shock absorber
