Don’t Listen to Milton Friedman. There is a Free Lunch If There is a Lunch to be Found

I apologise for the rather brief post as I am quite busy, but I wish to address some persistent nonsense and to clarify concepts. I will use the US government as today’s example, but what I am about to say equally applies to the UK, Canada and Australia. Is lunch what you used as payment[…]

Public Purpose Spending is Not Socialism – It’s the Job of the Federal Government

There is an immense problem with the term “socialism”, especially in the United States, where the word is abused endlessly by right-wing politicians, “free market” enthusiasts and now, even liberals have joined the red-baiting bandwagon, labeling former Sanders supporters, many of whom are now Stein supporters as “socialists” and any proposed economic initiatives as “socialism”.[…]

Brief Note: The private sector cannot solve unemployment

The private sector cannot solve unemployment, because it does not control the unemployment rate. The private sector uses the national government’s currency to affect production and the consumption of that production. Consumer demand comes first, placing pressure on business to increase its production of goods and services from the nation’s finite real resources. The by-product[…]

The “Bite-Sized” Explanation of The Job Guarantee as an Automatic Stabilizer

The national government funds the Job Guarantee through deficit spending. The Job Guarantee creates a pool of employed workers outside of the private sector which the private sector can hire from at any time. When the economy is doing well, demand for more goods and services pressures business to increase production. To do that, business[…]

The “Bite-Sized” Explanation of The Phillips Curve and the Job Guarantee

The Phillips Curve: The private sector is nearing actual full employment. Wage price pressures are threatening an inflationary episode. The national government manipulates its fiscal or monetary policy, reducing aggregate demand and thus, reducing inflationary pressures, throwing workers into a state of involuntary unemployment. The Job Guarantee: The private sector is nearing actual full employment.[…]