More on Obamanomincs:
- He knows that government spending is not revenue constrained.
- He knows solvency is not an issue for the government.
- He knows the ‘pay-go’ notion is flawed and works against our standard of living.
- He knows the criticism of Bush leaving the debt to our children is absurd.
- He knows there is no operational risk of social security ‘running out of money.’
- He knows social security payments are not ‘paid for’ per se by taxes or the trust fund accounting.
- He knows the Fed is about price, and not quantity.
- He knows imports are a real benefit, exports a real cost.
- He knows our policy of blocking central banks and monetary authorities from accumulating $US financial assets is killing the goose that’s been laying the golden eggs.
- He knows that unemployment is the evidence that the deficit is too small.
- He knows that loans create deposits and reserves.
- He knows that savings is not needed to have funding for investment.
- He knows that our taxed advantage pension and retirement systems and programs reduce demand and cause the need for the government to run deficits to add that demand back.
- He knows the price level is a function of prices paid by govt. and not a function of interest rates set by the Fed.
- He knows the Saudis (and maybe Russians) are setting the price of crude.
- He knows this is causing a cost push ‘inflation’ that is punishing working people disproportionately.
- He knows biofuel policy is converting the world’s food supply to fuel and starving millions to death.
- And a lot more.
- And he knows the others on the Obama economic adviser list either don’t know, pretend to not know, or have long forgotten all the above.
- And he knows Obama’s vision can only accidentally be achieved with his current economic rhetoric.
- And I know he has a fighting chance to be heard.
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Yeah, but he also named Robert Rubin to the advisory team as well. Galbraith was a great choice, but Rubin sucks.
Agreed.
Obama seems to be very politically savvy. Not yet sure how to read this.
How many economists are there who “know” these things? Before I found your blog by my own searching (prompted by Ron Paul no less), I had never heard of any of this. Just searching on Google Scholar is seems like Galbraith has written a couple of books, why is this view not challenging the mainstream economists more?
My guess is maybe only about 100, including recent phd’s from the UMKC.
And, of course, the readers of this blog.
🙂
He challenges the mainstream on other issues, as he’s never considered ‘monetary economics’ and reserve accounting his strength, though from personal experience I know he’s better than most.