Of all the wrong-wing gibberish, the most annoying is the claim that we Progressives are just dreamers who don't have a track record to run on. Wrong. We have a track record that is the envy of any political movement ever. When it comes to economics, WE are the grown-ups in the room.
In the days to come, I intend to explain how a system that produced significant prosperity was destroyed and the events that destroyed it. This is a pretty big project so today, I post an introduction that outlines the basic historical contours. We will get to the specifics soon enough—starting tomorrow when I intend to discuss the decision to allow free-floating currency exchange rates and the impact of domestic Peak Oil in USA
Monday, January 9, 2012
Did economics once work better?
Labels:
History,
Political economy
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The government not only needs to spend, it needs to tax wealthy people confiscatorially, to remove the non-competitive income generated when companies make social classes and take their capital and turn it into income for the upper managerial class. Removing this income generates growth, since it removes the incentives for class formation, and allows competition between people for managerial positions.
ReplyDeleteThere is also a need to break up large companies with politcal power into small ones that need to stay competitive.
This is standard progressive economics, and it is forgotten now, because of the supply-side nonsense.
The government not only needs to spend, it needs to tax wealthy people confiscatorially, to remove the non-competitive income generated when companies make social classes and take their capital and turn it into income for the upper managerial class. Removing this income generates growth, since it removes the incentives for class formation, and allows competition between people for managerial positions.
ReplyDeleteThere is also a need to break up large companies with politcal power into small ones that need to stay competitive.
This is standard progressive economics, and it is forgotten now, because of the supply-side nonsense.