Noah Smith is Wrong About Neofisherism Monetary Scarcity is a Failed "Dinosaur" Academic Idea

"The struggle to get on the right side of publicly subsidized compounding interest rates, is a rat race that is both unnecessary and incredibly damaging."
ratedisparity.substack.com/p/noah-smith...

"Stability leads to instability. The more stable things become and the longer things are stable, the more unstable they will be when the crisis hits."

-Hyman Minsky

My book, The Deficit Myth, turns 5 today. t.co/Ia4xR9cezr

The Job Guarantee measures the bid for currency at minimum wage, and thus cannot accelerate the price level upward.

Noah Smith is Wrong About Neofisherism Monetary Scarcity is a Failed "Dinosaur" Academic Idea

"The struggle to get on the right side of publicly subsidized compounding interest rates, is a rat race that is both unnecessary and incredibly damaging."
ratedisparity.substack.com/p/noah-smith...

Carl Sagan when asked, "Are you a Socialist?"

The age old contentions with marxism are important. The idea of a falling rate of profit is intended to motivate a fatalistic view of capitalism: it will fail

I think the best response is that capitalists can and do work hard!

I talk about this here: ratedisparity.substack.com/p/capitalist...

There are a lot of critiques of supply and demand, but none of these really are as compelling as learning linear programming in depth.

What linear programming teaches is how to think rigorously about the tradeoffs between costs and boundaries or limitations, convex optimization is great too!

I would describe 2 paths for understanding MMT: one for lay people and one for academics.

The path for lay people is simple and well developed, read the deficit myth, learn the scorekeeper analogy.

For academics: sraffra, keynes, minsky, mehrling, you have to learn PK theory+Linear Programming

Why Walking Helps Us Think Since at least the time of Greek philosophers, many writers have discovered a deep, intuitive connection between walking, thinking, and writing.

Since at least the time of Greek philosophers, many writers have discovered a deep, intuitive connection between walking, thinking, and writing.

YouTube video by Derek McDaniel Money is like Rabbits

Money is Like Rabbits: youtube.com/shorts/Lu1WJ...

This is really unfair to everyone who just voted for him for the racism.

Out here sharing some great quotes, this one from Mises @relearningecon.bsky.social

YouTube video by Eurodollar University Markets Are PANICKING as Interest Rates COLLAPSE Globally

Jeff Snyder interviews George Gammon on the Eurodollar University Channel. Very excellent stuff:
youtu.be/tCCtGFcTovU?...

That's a legitimate critique. You may be 100% right. But let me make the case that hiring JG workers increases the scrutiny these orgs would get, and it means the workers have greater choice in what orgs are actually benefiting the community.
Non-profits court wealthy donors which is bad.

Mosler suggests to employ JG workers at qualifying non-profits. the impact of JG highly depends on the initial wage level you set. If you set JG wage at $200/hr, you would get inflation really bad. if you set it at $2/hr, you are effectively lowering minwage.

it gives a true measure of unemployment

The Job Guarantee measures the bid for currency at minimum wage, and thus cannot accelerate the price level upward.

Mainstream interest rate theory is driven by the idea that real rates of return are accelerating: if people don't get enough of a yield on bonds and other dollar accounts, they will hold less $

What you won't hear, is that when you discount the currency, that implies a higher wage ask.

A higher rate of interest is the currency issuer selling tomorrow's currency at a greater discount today, and thus corresponds with an upward price path, diluting currency similar to a stock split.

Why talk about MMT at all? The price level is a function of prices paid by government when it spends or collateral demanded when it lends.

The Job Guarantee, measures unemployment AT minimum wage. Bids matter people: JG is both a support/resistance level for wages @bengolub.bsky.social

Interest based lending, is only necessary at all for operating payment systems, because collateral assets are difficult to price and/or costly to transfer.

Price Discipline vs Monetary Scarcity How to discipline prices without making money scarce

Price Discipline Vs Monetary Scarcity
open.substack.com/pub/ratedisp...