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Get this: an economist (Professor Scott Sumner) has said that Denmark is the most neoliberal sovereign state in the world. For instance, by embracing free trade and opposing protectionism (relevant...

I'm not saying that you should give a crap about labour costs for corporations. I'm saying that higher wages lead to higher labour costs for corporations and this creates cost-push inflation for the...

Again, it's a basic fallacy to confuse intentions with results. It was not the intention of foreign investors in the East Asian Tigers to transform them from Third World to First World states, but...

If wages increase, then this creates inflationary pressure, not deflationary pressure. In Keynesian economics, this is called demand-pull inflation. There would also be cost-push inflation in...

What? Higher wages lead to lower prices?

Consumer prices have remained low because of cheap imports. This is one of the reason why so much of the money supply has ended up in housing, causing the...

The fact that someone doesn't aim to do good doesn't mean that what they do isn't good. A baker who sells you bread isn't aiming to improve your life, he's aiming to make a profit. Equally, a...

Depends on the terms of the loan. If I offer you a 0% loan over five years, you have an incentive to pay back the original nominal sum because otherwise you have broken the contract and are a felon....

I actually think that there are some in the Fed who would welcome a clear rule. The Fed loves certainty and being absolved from blame. If they have a clear rule, then all they had to do is meet that...

The thing is that they have perverse incentives: if NGDP growth is low but there's no big inflationary problem and no deflation, it is rational for them to stay put. This is because, if (by some...

I think that a clear, sensible mandate for a central bank is what is essential. There are a number of ways of doing this, but the important thing is this: as little as possible should be left to...

It wouldn't bother banks too much, because demand for money is currently very high, while the supply is very low. It's a seller's market, in other words. There is a shortage of blood and a lot of...

It's not the whole story, but it's an important part. Put another way: businesses are in the business of the future, and this requires investing for the future. Banks loaning money to businesses are...

Ideally-

(1) Monetary stimulus to get NGDP growth back on track, without increasing the national debt.

(2) Welfare reforms to make work pay. One way would be to reduced the marginal cost to the...

Not at all. If the situation in 1982 had continued, the US would have seen its power implode in the early 1990s like the USSR. The distribution of wealth is determined by real economy factors, not...

Yes, this had the disastrous consequences, after 1933, of an IMPROVEMENT in the US economy that lasted until the tightening of 1938. Just like the UK left the Gold Standard in 1931 and then enjoyed...

The OP realises that the US economy can do better than this and that there are ways in which the current decline of the US economy can be reversed, but he has the wrong idea. There are still ways of...

I don't understand the hate for African-American community organisation. If a group has faced systematic discrimination and is united around a common culture, they should work together to strive to...

Einstein, Belgian colonialism was directly responsible for the genocide in Rwanda and Congo.[/QUOTE]

So "no".

Wrong. Jews had been in Europe for a LONG, LONG time prior to WWII (longer than the "European" Huns and Teutogoths). The holocaust started in the country where Jews were best intergrated into...

I was critical of Bush's economic policies when he was in power and I'm just as critical now that Obama has adopted them.