The plan which eventually became acceptable, more readily under pressure of the Second World War, was that of deficit spending, whereby the government deliberately set out to spend more than they received through taxes, duties, and charges. The gap could be filled by borrowing, thereby mobilising stagnant funds. ... Read more
In terms of physically damaging, poisoning, or depleting the earth’s living environment, there are no such things as visual or noise pollution.
These are red herrings in the sense that, for example, people who object to the noise of rock music, traffic, or children at play, or object to the replacement of an ornamental old building by a stark new one, feel entitled to attach their cause to the environmental cause (feeling licensed by the use of the word “pollution” in describing what they object to), thereby distracting attention from issues of real importance to the living environment and diverting energy that should go into resolving those issues in the environment’s favour. ... Read more
To repeat in another way a point discussed earlier, there is an achievable optimum flow of money through the aggregate income (wages plus social welfare) channel in relation to the flow through other channels. The optimum state is characterised in two ways: (i) full employment, that is no involuntary employment of able people, prevails; (ii) economic activity, the wealth throughput rate, is at the maximum possible within the constraints imposed by other factors. ... Read more
So-called “Reaganomics” practiced during the 1980’s by the Reagan Administration in the USA was nothing more than a distorted Keynesian Great Depression policy practiced in the wrong context.
The theory was that large tax cuts would boost economic activity by giving people more money to spend on goods and services. ... Read more
During the 1970’s and 1980’s governments and people generally in the more perfluent nations were waiting for an economic “upturn” or “recovery” to reduce what had become chronic high unemployment. The underlying assumption was that the high throughput-increase rates, the so-called “economic growth” rates of the 1950’s and 1960’s, were normal and that the more sluggish throughput-increase (TI) rates of latter years were an abnormal phenomenon that could be expected to speed up in time through this or that brilliant policy initiative or going back to the early economics of the eighteenth and nineteenth centuries; or by eliminating (depending on your point of view) businessmen, unions, migrants, taxes, civil servants, or computers; or just by waiting. ... Read more
It has not been the aim of these posts to provide detailed remedies for every current problem in or related to economics.
It has only been my purpose to outline a more practical and realistic relationship between the human economy and the world we live in, one which favours life over death, progress and enhancement over degeneration. ... Read more
People love their children, and children generally are a source of pleasure. Some people even claim to derive deep satisfaction from a houseful of seven or eight youngsters. But it is true to say of most people regardless of ethnicity or location that, if they had a really free choice, they would rather have a manageable number – enough for pleasure and company – but not the heavy load of six to a dozen or more. ... Read more
Litter “Pollution”: A misleading idea, started when environmental awareness really took off world-wide in the late 1960’s and early 1970’s, is that “pollution” means “litter” and that preventing litter means doing all that’s necessary to prevent pollution and protect the environment. ... Read more
Material living standards are a function of three main variables – net throughput (Tn), population, and the prevailing distribution (D) of Tn among different social and occupational groups.
Tn is a function of available wealth, the state of technology, wealth renewal rates, human values, D and the proportionate flow of money through different economic channels. ... Read more
The direct addition of value inflation to the rate of price increases is quite small. The larger effect arises from secondary influences, in whose shaping human psychology plays an important part. These influences are triggered by the small value inflation component and its corollary, a slowing of the rate of net throughput increase relative to gross throughput increase. ... Read more