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View Diary: David Stockman calls bullshit (21 comments)

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  •  You don't state a claim (10+ / 0-)

    Your diary doesn't make a lot of sense.  You cite Stockman and say that he thinks the world doesn't need Goldman Sachs.  Duh.  But what does that have to do with the rest of the story?

    Supply Side bullshit had two major concepts.

    1)  Deficits are okay because they cause growth which causes more revenue which closes deficits. This is Keynsianism and is true in a recession, false at other times.

    2) The way for 1 to happen is by cutting taxes on the rich, not by spending on society at large.

    Of course point 2 was the whole point, cut taxes.  But now we have a Democratic president and a depression, and Keynsianism is the obvious answer, but the Banana Republicans want Obama to "fail", so they are sabotaging the economy.  Thus they deny point 1 and demand point 2 anyway, accompanied by massive austerity cuts on the 99%.

    I'm under the impression that Stockman is really calling for more austerity. Not sanity.  Am I wrong?  Did he really change sides, or is he just playing a different card from the same old deck?

    •  Stockman is calling for a return to the gold . . . (4+ / 0-)

      standard, which did wonders for the world economy in the run up to the Great Depression.

      Yes, the value of a dollar is based on trust -- trust that the Fed is transparent about the amount of actual money in circulation and the size of the money supply, trust that the U.S. government will be around, and so on.

      But the idea that a gold standard embues the fiat money with some magical "real" value isn't really accurate either.  Yeah, we could conduct trade in some other physical commodity, but it wouldn't be a very efficient way to conduct commerce.

    •  Rentiers. Rentiers. (5+ / 0-)

      "Supply side" economics is a bastardization of Keynes, and of Adams' "Wealth of Nations." It leaves out entirely a class of persons born into incredible wealth, who live their lives without labor or other contribution to society, merely custodians of capital who collect tolls on every kind of economic activity.

      If these rentiers are not included in the daily accounting of our economy, and their standing wealth taxed or nationalized and returned to circulation regularly, the economy locks up into huge pools of standing, inherited wealth. Usually found offshore.

      "Supply side" economics was wordplay in the Eighties, and it is wordplay now. The bastards who trumpeted it then and extol it now are conscious liars. Numbers don't lie -- it is theft on a grand scale.

      Stockman is also lying when he calls for the gold standard as some kind of solution, and when he calls for austerity. Both are based on the myth that sovereign government budgets are no different than household budgets.

      They are totally different.

      Government deficits represent the money available to the population. If there were no government deficit, there would be no money in circulation. A balanced budget is great for a family on Main Street, but a balanced budget is a depression for the sovereign nation that achieves it.

      "The rule of the wise must be absolute . . . rulers ought not to be responsible to the unwise subjects." ~ Professor Leo Strauss

      by antifa on Mon Apr 08, 2013 at 11:09:56 PM PDT

      [ Parent ]

      •  Two excellent points (0+ / 0-)

        I'd rec that twice if I could.  Once because you brought up rentiers, who are the real beneficiaries of the economic changes wrought since Reagan and Stockman came in.  And second for pointing out that the deficit is where money in circulation comes from.  The mainstream media do not point that out; they still have fantasies of yellow commodities, which make no sense.

        Historical point:  During the gold era, finances were not stable.  Spain's conquest of Mexico brought much gold to Europe, leading to inflation, not prosperity.

    •  In the article from the NYT a week or so ago, (2+ / 0-)
      Recommended by:
      geordie, K S LaVida

      Stockman certainly called for more austerity (as well as a return to the gold standard). He has not changed sides at all and isn't even really pulling out a different card as far as I can tell. He thinks the New Deal and the Great Society programs are the cause of our economic problems and wants a social welfare net for only the very few, most destitute people.

      You can't scare me, I'm sticking to the Union - Woody Guthrie

      by sewaneepat on Tue Apr 09, 2013 at 05:35:01 AM PDT

      [ Parent ]

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