Brief History of Macroeconomics and The Origins of Freshwater vs. Saltwater Economics

I and others, particularly Paul Krugman, occasionally make reference to "freshwater" vs. "saltwater" economics.  Here's a little background to explain the terms and, I hope, shed a little light on current disputes in macroeconomic theory. First, let's go back in time.  The stuff that economists study, namely the economy, economic behavior, and markets, really emerged as it's … Continue reading Brief History of Macroeconomics and The Origins of Freshwater vs. Saltwater Economics

The Economy Has Caused Riots Before – In the Great Depression

Washington's Blog reminds us that things got ugly during the last prolonged depression in the United States.  This interesting historical footage from the Great Depression shows what happens when large numbers of people are unemployed for years at a time, get desperate, and perceive that the game is rigged to the benefit of Wall Street. … Continue reading The Economy Has Caused Riots Before – In the Great Depression

Some Other Interesting Perspectives on OccupyWallStreet

I've already mentioned my initial thoughts on the Occupy Wall Street movement (#OWS).  Here's some snippets from a couple of others with some interesting insights.  First, historian William Hogeland writes at his blog Hysteriography.  He notes how the #OWS movement is a deeply American movement.  It has roots in the American revolutionary period as much … Continue reading Some Other Interesting Perspectives on OccupyWallStreet

The Fraudulent Flat Tax Pitch – A Rich and Powerful Tactic

Power and riches go together. But nowadays, they need political spin. Throughout history the very rich have usually also been the very powerful.  And usually the very rich use that power to both protect themselves from the less well-off and to figure out ways to further enrich themselves.  Often the enrichment comes at the expense … Continue reading The Fraudulent Flat Tax Pitch – A Rich and Powerful Tactic

On the Occupy Wall Street (and Everywhere Else) Movement

I've been asked what I think of the Occupy Wall Street Movements.  I say it's about d*** time.  The anger and discontentment that the movement has tapped into is real and has been building for a long time.  The mass numbers of people - like say the 99%  - have good reasons to be angry. … Continue reading On the Occupy Wall Street (and Everywhere Else) Movement

Too Big to Fail Should Be Too Big to Exist

Against Monopoly has a great graphic that shows a big part of the problem with our financial sector and our economy. The four banks shown above are the four largest banks in the U.S.: JP Morgan Chase, Citi, BofA, and Wells Fargo.  Together they dominate the financial industry. If you add in Goldman Sachs and … Continue reading Too Big to Fail Should Be Too Big to Exist

Obama’s So-Called Keynesian Stimulus Efforts Aren’t Very

The simple version of Keynesian economics suggests that if the economy is suffering from too little economic activity and high unemployment there are some policy options.  Specifically Keynes suggests there are three general kinds of policy options: The central bank (The Fed in the case of the U.S.) could lower interest rates and create money … Continue reading Obama’s So-Called Keynesian Stimulus Efforts Aren’t Very

What a Liquidity Trap Looks Like in Pictures

I want to follow up a little on my discussion of the liquidity trap that we are have been in. Brad Delong has an excellent post today called "Four Years After the Wakeup Call".  In it he shows some graphs which illustrate very well our the liquidity trap. Delong first serves us two graphs on … Continue reading What a Liquidity Trap Looks Like in Pictures

Where Are or Were The Jobs?

With the all the alleged concern in Washington now from both parties about job creation, there's something that's missing in much of the debate: facts.  So let's take a look at some.  I really like graphics like the one below.  They're complex and take quite some time to read and fully absorb what's there, but … Continue reading Where Are or Were The Jobs?

Politics and Job-Creation Policies – Disagreements and The Theories Behind Them

Blogging time has been in short supply lately.  To compound things, I've had a bunch of inter-woven ideas bouncing around in my head that I want to explain, but  I've been struggling to figure out how to do it.  I've been stuck in the "can't explain this until I explain that which in turn needs … Continue reading Politics and Job-Creation Policies – Disagreements and The Theories Behind Them