Message from @NewRogernomics
Discord ID: 649099679346196480
Hope you aren't getting frustrated too much talking with me. 😄
I am not really saying more than what I've been brought up to think.
i know, it's a major issue in the states
Literally, ask anyone from NZ what they think about government budget deficits and debt to gdp, and they'll view it as a metric of poor government policy.
partly it's because of neoclassical economics, but there is definitely some purposeful lying in there to brainwash people
the emphasis on monetary policy is really what keeps the crop of elites in power
Well, if you look at govt policy...there was a massive drive to lower the gdp to debt ratio, create a budget surplus, and have low inflation.
From the 1980s-1990s at least.
poor people can't rebel
(easily)
in the US, we give lip service to it, but ignore it enough that we do ok
historian recently dug up some JFK quotes to show he understood this
NZ mostly survives through exports and tourism, and a lot of foreign investment, which is a curse and a blessing.
one of our major parties, at least in pretend form, is tied to that very issue, so it's a challenge to their very soul
Mostly the population grows through immigration.
but same party is also in bed with military industrial complex, which is a huge tool of fiscal policy
yea, the immigration issue also come sfrom same misunderstanding. I think that might be one way around it
the nativists might be convinced if you show them about how the labor woes are really caused by the policies
NZ is kinda the reverse of the US in that we spend way too little, even when we know where money needs to go.
dangerous well to drink from but something has to give
yea, the US has a military industial complex and the hypocracy around championing it makes it sort of impossible to do completely euro-style austerity pushes here
the inflation issue is a misunderstanding of how we get the price level and also the effects of demand for credit on aggregate demand
Well, at least from what I see the US is spending the right amounts in education, healthcare, and on the military, but not putting it in the right places or letting it be wasted.
some fiscal policies might be DEFLATIONARY ironically
because they would lower credit demand
Realistically, the amount the US is spending, it should be getting way better outcomes in education at least...yet school systems are failing, and the response seems to be 'we need more money'.
they would be deflationary in exactly the areas the elites hate as well, asset prices
they need more money, but it's also the pressure on the parents for having to work so much, and ideological battles inside system i only mildly understand
There are lot of high admin costs, yet teachers are low paid compared to the job they do, and classrooms are without the resources they need.
it all has to go to the top or it can't happen
that tells me it's about more than simply a misunderstanding of the economics
At least from the way I see it, both major parties have no clue over what direction to go in.
it varies by state/locality here though, you can see dramatic differences if you travel aroudn US
in the US, i think the far left is becoming the more rational group, which excludes mainstream democrats for the most part
I disagree with both parties, and have pretty much given up on trying to understand where they are going.
wealth inequality has macroeconomic effects, alongside all the social justice stuff
Well, on a real basic level, I think the tax system needs work.
as workers share of GDP shrinks, aggregate demand drops
sure, but i woudl say more for the labor savings than any real issue of taxation
The way the US system is set up, tax avoidance is a major issue, and it seems to hurt the poor and middle class.