This Is The Time For Budget Surpluses, Not Relaxing Austerity – Why Keynesianism Doesn’t Work

We’re told that government borrowing is falling, the deficit closing. This therefore means that it’s possible to relax austerity, to start spending more upon sweeties for the voters. This being exactly and precisely why Keynesianism as a practical matter doesn’t work. For politicians will follow the fun bit and not the difficult part. Thus as an overall theory it simply is, to use a governmental phrase, no longer operative.

Public borrowing is on track to hit its lowest level in 16 years, leaving the Chancellor Philip Hammond with the ability to sanction additional spending in his upcoming Budget.

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Teen Vogue Is Actually Written By Teens – Or The Tooting Popular Front

Teen Vogue decided to get someone in to explain capitalism to the peeps. The result being something written by a teen – one going through that angry period – or possibly the Tooting Popular Front. Without, sadly, the humour. Sorry, really, this is dire:

Capitalism is defined as an economic system in which a country’s trade, industry, and profits are controlled by private companies, instead of by the people whose time and labor powers those companies.

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The American Economy Is Becoming Less Concentrated, Not More

This is one of those findings that no one is going to take a blind bit of notice of. For the original contention – that the US economy is becoming more concentrated, less subject to market competition – is too convenient to a certain type. That type wanting to insist that a less competitive economy means we can go tax the rich bastards who own companies more, for they will be exercising their oligopoly power. The actual answer being that the US economy has always been – and will remain so for forseeable futures- quite local and regional.

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Consumer Autonomy, Pressure, Works! As It Should Do In A Market System

One underappreciated part of a market based economic system is that you really should, ought to, make your decisions based upon what you perceive to be your wider interests. This is how you tame suppliers to your will. And wondrously, it does actually work:

Depositors disciplining banks: The impact of scandals
Mikael Homanen 15 October 2018

Bank creditors have non-financial preferences too, and may withdraw deposits as a form of discipline. This column shows that protests against the Dakota Access Pipeline that targeted investor banks caused significant decreases in deposit growth, and global data suggest that this type of reaction to bank-specific scandals is widespread.…

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Surprise! Tax Innovation And You Get Less Of It

Given that the act of taxing something means that you get less of that something it shouldn’t be a surprise that if you tax innovation then you’ll get less of it. Innovation being the very foundation o our getting richer, thus high taxation leading to less of it makes us poorer than we could or should be.

It’s also true that we don’t tax innovation directly but we might well tax the returns from it. You know, all those pots of gelt made by the entrepreneurs?

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Empty Threats – Saudi Arabia Cannot Damage The Global Economy

There’s an idea that if we’re all beastly to Saudi Arabia over the killing – as alleged – of a dissident then they’ll somehow take it out on the world economy. This isn’t going to happen for the simple reason that Saudi Arabia just isn’t important enough to the global economy to be able to take things out on it. Yes, sure, they’re a big supplier of oil. But they’re no longer the swing supplier. That’s the American frackers who are.…

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Yes, Obviously, But Interestingly – London Was Built By Transport Networks

The thought that major cities were built by transport networks is obvious – even trivial – the moment one starts to think about it all. And yet there’s still interest in the details of which technologies and how. Our own insistence, around here, would be that while commuting, work and home, are interesting elements of the story the real influence is going to be in supply. How in heck do you feed 4 million people with horse drawn carts for example?

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This Economic Analysis Requires A Little More Work

There really is such a thing as the business cycle. Even Keynes agreed there was and that the task of macroeconomics is to moderate it for it will – as with JC and the poor – always be with us. We have two sets of tools with which to do that moderating, fiscal and monetary policy. Thus this set of views needs, umm, moderation:

However, a “poisonous mix” of ­reduced fiscal stimulus, higher inflation, rising interest rates and protectionism could combine to slow the US economy in the coming years, Gregory Daco, US economist at Oxford Economics, argued.

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The Price Of Dog Skins In N Korea – Or PPP Exchange Rates

North Korea has a slightly odd method of asking that citizens contribute to the welfare of the State. Contribute there being used in its taxation, confiscatory, form. Given that dog meat is a regular enough portion of the diet they insist that dog skins are, or at least one is, handed over to said State. One implication of which is don’t sign any orders for mink hats from North Korea. Those who don’t have a skin can make a cash contribution instead.…

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Socialism’s Promises – As In Liverpool, So In Venezuela, The Dead Unburied

One of the basic premises of having government in the first place is that public health matters are dealt with. Indeed, historians usually point to the small scale governance of urban areas as the very beginning of the basic concept. How to get the rubbish carted away, how to deal with the drains, how to make sure the dead are buried. That last not so much for religious reasons as purely pragmatic. Corpses not only stink – for good reason, it’s useful that we instinctively think of a dead human like us as smelling repellent – but can, assuming they’ve died of infectious diseases, be dangerous.…

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