Economic stimulus packages can never satisfactorily address the real problem of unemployment and underemployment in market economies, according to Randall L. Wray. He estimates real unemployment is close to 30 million people or 20% of the workforce in the USA. But there is an effective and affordable to achieve full employment through direct job creation programs financed by the US Government. In this webcast, Professor Wray discusses the short and long term causes of unemployment, the right to employment, the hidden costs of unemployment, the unrecognized benefits of full employment, theory of how job guarantee programs can effectively balance full employment and currency stability along with practical examples of successful programs. This presentation will be of interest to all those looking for a realistic practical strategy for addressing the problem of unemployment. Wray is Professor of Economics and Research Director of the Center for Full Employment and Price Stability at the University of Missouri–Kansas City and Senior Scholar at the Levy Economics Institute of Bard College in New York. He is author of numerous books including Money and Credit in Capitalist Economies and Understanding Modern Money: The Key to Full Employment and Price Stability. For a complete bio and list of Professor Wray’s publications and links to working papers, click here
Cannabis: Moving from Insanity to Industry Patrick Martin May 15, 2019 According to Einstein, insanity is, “Doing the same things over and over and expecting different results”. Since colonialism, we have been doing a same thing.We have been acting out a deception that caused the demonization of a plant that has profound medicinal and industrial… Read More
Seven Deadly Innocent Frauds of Economic Policy
- The government must raise funds through taxation or borrowing in order to spend. In other words, government spending is limited by its ability to tax or borrow.
- With government deficits, we are leaving our debt burden to our children.
- Government budget deficits take away savings.
- Social Security is broken.
- The trade deficit is an unsustainable imbalance that takes away jobs and output.
- We need savings to provide the funds for investment.
- It’s a bad thing that higher deficits today mean higher taxes tomorrow.
October 8-12, 1974 a symposium on “Patterns of Resource Use, Environment and Development Strategies” was convened in Cocoyoc, Mexico by the directors of United Nations Environment Programme and the United Nations Conference on Trade and Development, Maurice Strong and Gamani Corea. The rapporteurs were Barbara Ward for resource use and the environment and Johan Galtung for development strategies. That part of THE COCOYOC DECLARATION—adopted by the participants–is reproduced below, with a certain sadness: it is as valid today, more than 30 years later. The two directors received a three feet long cable, from the US State Department, rejecting the declaration entirely. Signed by: Henry Kissinger.
Scientific and everyday language have long lacked generic concepts to identify the market’s underlying systems of natural and social reproduction. In consequence, expropriation and destruction of these ecological and civil infrastructures by monetised capital expansion has evaded understanding. This investigation provides the conceptual bearings required to understand what has occurred and its modes of resolution by explanation of the long overlooked “life-ground” and “civil commons”; their evolving “social immune system”; and a “life-value calculus” whereby to assess authentic social development and retardation. At the same time, the analysis explains the causal structure behind a world-wide degradation and confiscation of life infrastructures whose principal victims and resisters are unwaged women. Finally, the argument distinguishes the civil commons and the life-ground from notions of “the global commons”, “the life-world” of Habermas, and the now dominant concept of “civil society.” Throughout, the analysis draws on real-life examples to demonstrate deep infrastructures of human life advance and regression which have eluded the received paradigms of social and political analysis.
Depuis bien longtemps, il manque dans le langage scientifique quotidien de notions générals pour identifier les systèmes de la reproduction naturlle et sociale qui sont à la base du marché. Par conséquent, l’expropriation et la destruction des ces infrastructures écologiques et civiles par l’expansion du capital monétaire échappent à la comprehension. Pour expliquer ce phénoène et ces modes de résolution actuels, cette étude fournit une base conceptuelle des notions ignorées depuis longtemps, telles que la «base vitale», la «commune civile», le «système immunitaire social» qui en émerge, et le «calcul des valeurs vitales», notions par lesquelles on évalue le vrai développement social ou le retard. Par ailleurs, l’analyse démontre la structure causale entre la dégradation mondiale et la confiscation des infrastructures vitales dont les principales victimes et opposantes sont les femmes au travail non rémunéré. Enfin, l’analyse différencie la notion de la commune civile et de la base vitale de celles des «biens publics globaux», du «monde de la vie» de Habermas, et de la «société civile» qui dominent dans le discours présent. L’analyse se sert des exemples actuels pour illustrer les infrastructures profondes des progrès et des reculs de la vie humaine qui ont échappé aux paradigmes de l’analyse sociale et politique actuelle.
James K Galbraith Reviews Modern Monetary Theory Nov 2, 2017 Some sage advice from an elder at the First International Convention of Modern Monetary Theory 2017 Presidential Lecture Series: Stephanie Kelton – “But How Will We Pay for It? Making Public Money Work for Us” Oct 18, 2018 Our nation’s finances are a blistering topic.… Read More
We live in the era of Economism. Human consciousness is deeply etched by economistic beliefs in individualism, materialism, property, markets, economic growth, and freedom as consumer choice. These beliefs are necessary to sustain the system that supports us. But the economy we have is unlikely to support our grandchildren. Natural scientists argue that we are in a new geologic era, the Anthropocene, where people have become the major force in changing the geosphere: the atmosphere, oceans, and land. But it is the economistic beliefs that describe the cosmos of most people, bind people together, support their particular behavior, and sustain the economic system. Economism is altering the physical processes of the geosphere and collapsing the diversity of the biosphere. Econocene is a more appropriate term for the new geologic era. Fossil fuels and their technologies have transformed agricultural and industrial processes, the mobility of goods and people, and the geographies of cities and rural areas. People’s values, ways of understanding, and social organization have coevolved with fossil fuels and their technologies, but it is economism that binds people together and girds the economic system we have. We need a new “ism”, a new human consciousness, to support a new relationship with Earth and its other inhabitants.
The state of planet Earth is widely recognised as in jeopardy due to a range of environmental problems relating to a dominant economic system that extracts resources and uses energy on an unprecedented scale in human history. A long-running claim amongst mainstream economists, defenders of unregulated capitalism and those favouring a regulated productivist economy has been that human ingenuity can find substitutes for all resources and technology can solve all problems allowing humanity to change and adapt to anything. These arguments are made in almost total ignorance of how the economy interacts with ecosystems and impacts their structure and functioning, how dependent economies are on the flow of low entropy materials and energy and what are the basic limits to humans as biological animals. Indeed even ignorance itself is ignored and reduced down to risk and probabilities.
Yet, that economies must change is no longer in question. That they will change is also no longer even an issue. The question is what responses materialise as resources, energy supplies and functioning of ecosystems do change? The options being put forward are numerous, but most aim to preserve some form of high-technology, capital accumulating, growth economy embedded in price-making markets, including: green economy, climate economy, low carbon economy, circular economy, knowledge economy, bioeconomy. Yet, none of these addresses the causal mechanisms of the current crises, or structural issues facing social ecological transformation; they are concerned only with controlling for impacts and adapting to consequences, not with the bio-physical relations of the economy with non-human nature.
This article provides an overview of the relationships between economic systems and the environment, human society and non-human nature, ecology and economy. It brings together various literatures with the aim of introducing the reader to the importance of biophysical reality for the operation of real economies, and therefore also for economics. In the next section, we explain the problems facing standard economic approaches if they are to address environmental problems, but more generally their inability to even understand the social ecological crises due to a limited scope and direction. This is followed by outlining the place of economies in the context of their social and bio-physical structural relations, a basic general ontology. More specific detail is then added on the lessons that can be drawn from ecological understanding in terms of ecosystems, materials and energy. The final section draws out the implications of this understanding for social ecological transformation of the currently dominant economic systems and the type of economics required to help achieve that transformation.
As the climate crisis worsens and the carbon budgets set out by the Paris Agreement shrink, climate scientists and ecologists have increasingly come to highlight economic growth as a matter of concern. Growth drives energy demand up and makes it significantly more difficult – and likely infeasible – for nations to transition to clean energy quickly enough to prevent potentially catastrophic levels of global warming. In recent years, IPCC scientists have argued that the only feasible way to meet the Paris Agreement targets is to actively scale down the material throughput of the global economy. Reducing material throughput reduces energy demand, which makes it easier to accomplish the transition to clean energy.
Ecological economists acknowledge that this approach, known as degrowth, is likely to entail reducing aggregate economic activity as presently measured by GDP. While such a turn might seem inimical to human development, and indeed threaten to trigger a range of negative social consequences, proponents of degrowth argue that a planned reduction of throughput can be accomplished in high-income nations while at the same time maintaining and even improving people’s standards of living. Policy proposals focus on redistributing existing income, shortening the working week, and introducing a job guarantee and a living wage, while expanding access to public goods.
As debates unfold around what these policies might look like and how to implement them, here I step back to consider the deeper economic logic of degrowth theory. On the surface, degrowth sounds like an economics of scarcity, as many on both the right and left have been quick to allege. But in fact exactly the opposite is true. A long view of the history of capitalism reveals that growth has always depended on enclosure. The Lauderdale Paradox first articulated by James Maitland holds that an increase in “private riches” is achieved by choking off “public wealth”. This is done not only in order to acquire free value from the commons but also, I argue, in order to create an “artificial scarcity” that generates pressures for competitive productivity.
Degrowth seeks to invert the Lauderdale Paradox. By calling for a fairer distribution of existing resources and the expansion of public goods, degrowth demands not scarcity but rather abundance (see Sahlins, 1976; Galbraith, 1998; Latouche, 2014; D’Alisa et al., 2014). I build on this insight to show that such an approach not only embodies an alternative to a growth-oriented economy, but in fact offers an antidote to the driving mechanism of growth itself, thus releasing both humans and ecosystems from its grip. By advancing a theory of abundance, degrowth provides a feasible political pathway toward an ecological economy fit for the Anthropocene.
We have many problems – poverty, unemployment, environmental destruction, climate change, financial instability, etc. – but only one solution for everything, namely economic growth. We believe that growth is the costless, win-win solution to all problems, or at least the necessary precondition for any solution. This is growthism. It now creates more problems than it solves.