Category Archives: Social values

Dan Kervick: Why MMT is Not a Free Lunch

By Dan Kervick, who does research in decision theory and analytic metaphysics. Cross posted from New Economic Perspectives

A common criticism of Modern Monetary Theory is that it is a naïve doctrine of free lunches.

But this criticism misses the mark. MMT does focus a good deal of attention on the monetary system and the banking system, and on the operational mechanisms of public and private finance. But the whole point of analyzing and clarifying the monetary system is to help people see through the glare of the economy’s glittering monetary surface to the social and economic fundamentals that operate below that surface.

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Bill Black: Note to Italy – Please Send Us More Saracenos

By Bill Black, the author of The Best Way to Rob a Bank is to Own One and an associate professor of economics and law at the University of Missouri-Kansas City. Cross posted from New Economic Perspectives

Austerity has driven unemployment among young Italian adults to over 35%. The result is that Italian university graduates are emigrating. This loss of Italy’s greatest source of future productivity gains is particularly crippling because Italy has far fewer university graduates than most developed nations.

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Citi Cuts 11,000 Jobs Rather Than Lower Pay, Illustrating Rentier Capitalism in Operation

Citi is a particularly blatant example of a way of operating that has become endemic in American business: when things get tough, throw as many employees as possible under the bus, and use that to maintain or even increase the pay of the top echelon.

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Crime and Punishment in Australian Business (as in the Former is on the Rise, and Wondering if They Will Ever See the Latter)

Yves here. This is Lambert’s pick, but since I still remember my two years in Sydney fondly, I thought I would comment. Australia is often stereotyped as being 20 years behind the US in a good way: it has a commitment to collective good, a sense of community, and a robust middle class, things that are increasingly wanting in the US. And it has those qualities along with better broadband and first class, cheap healthcare (the offsets are getting used to the seasons being the reverse of up North, having to adopt a footie team, dealing with the onerous documentation requirements of their tax authority, and having most movies get there after you can see them on international flights).

The interesting quality of this article by Houses and Holes is its sense of consternation about what looks like rising corruption in Australia. I don’t mean to sound condescending, but being in a country so much further along in this ugly process, there’s an underlying trust in authorities and process evident in this piece, while those sentiments are in tatters in the US.

Most societies have a level of crooked behavior that they tolerate; the assumption seems to be that these dirty backchannels are sometimes the only efficient way to work around obstacles, and that enough bad guys will be caught and punished to keep the dubious dealing at a manageable level. You can see here a quiet sense of horror, as if someone in a movie sees their hand suddenly changing into something they don’t recognize as human and realize they may be undergoing a fundamental, chthonic transformation.

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Why Occupy Wall Street’s Rolling Jubilee Puts Borrowers at Risk

Last month, I criticized the well meaning but naive strategy of the Occupy Wall Street group Strike Debt for dealing with consumer debt, which is to buy severely discounted debt from debt collectors and forgive it. My main complaint was that there were more productive approaches, such as wider publicity and distribution of the Debt Resistors’ Operations Manual, providing more counseling and legal support to borrowers, and using debt purchases to develop cases against the debt sellers. By contrast, the Rolling Jubilee increases the profitability of bad system by providing more revenues to the incumbents, while the debt purchases are unlikely to do more than help a few random people. It might make for feel-good PR, but it won’t make a dent in the problem.

Perversely the post got pushback on the last (and by implication, the least important) issue raised, namely, that of possible tax problems with the scheme. I wanted to revisit this issue and demonstrate why the responses of allies and members of Strike Debt have failed to put the issue to rest, and more important, why this matters.

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Dan Kervick: Will We Be the Lamest Generation?

Yves here. Any post that starts out by making fun of Matt Yglesias already has something going for it. But one bit I quibble with. Kervick suggests that Social Security might be excluded from a Grand Bargain. Don’t get too optimistic.

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9 Greedy CEOs Trying to Shred the Safety Net While Pigging Out on Corporate Welfare

By Lynn Parramore, a senior editor at Alternet. Cross posted from Alternet

A gang of brazen CEOs has joined forces to promote economically disastrous and socially irresponsible austerity policies. Many of those same CEOs were bailed out by the American taxpayer after a Wall Street-driven financial crash. Instead of a thank-you, they are showing their appreciation in the form of a coordinated effort to rob Americans of hard-earned retirements, decent medical care and relief for the poorest.

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The Expanding Surveillance Society: Getting You to Buy Into Being Monitored

Like it or not, you in the not too distant future are going to have to submit to personal surveillance to get many types of insurance and certain financial products. And that future is closer than you probably realize.

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Stop Using “Obama for America” Against the People!

Yves here. Team Obama is fast out of the box with its plan to redeploy its campaign ops to sell Americans on why they should lie back and think of England why they should embrace a future with more income disparity and more catfood for old people. The media got wind of the plan the evening before the messaging barrage started. Joe Firestone does a able job of taking it apart.

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A Foreign Supply Chain Threat Opening on Walmart Labor Protests?

It’s too early to tell how effective the Black Friday against Walmart’s low pay and abusive working conditions were. The early reports from management and the organizers are wildly at odds with each other.

However, a new front may open up in the Walmart disputes: that of disruption to its international shipments.

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Obama to Deploy Campaign Apparatus to Persuade Americans to Look Forward to More and Better Catfood

Our Fearless Great Betrayer is about to repurpose his campaign sales machine to persuasion of the American public of the necessity of making do with less to appease the Bond Gods. The bizarre part, as many have noted, is the Bond Gods actually don’t seem to want the human sacrifice involved (old people dying faster) but their Wall Street soothsayers would have you believe otherwise.

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