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The magic money tree does exist, according to modern monetary theory

After seven years of austerity, we are accustomed to thinking of the economy as a household with the nation’s credit card maxed out, to paraphrase David Cameron. The fetishisation of debt translated into massive cuts to UK spending on public services. At the same time, there remains widespread public anger that the big banks continued to make record profits and bonuses in spite of George Osborne’s assurances that we would all be in it together.


So who got it wrong ?

The monetarists, they forgot the basic concept of capitalism that wealth is what you make and what you grow and all else stems from that and you need a consumer base - forcing down wages so no one has any disposable income will destroy an economy. Look at what has haoppenbed in the US, manufacturing jobs moved abroad because it was cheaper makes sense in the short term but no one was left with enough income to buy anuthing but the bare necessities. Milton friedman was an idiot.

The elusive magic money tree does exist.


Not here. All our money is made of plastic now. It's pretty but it's just not the same.

gmc;1514414 wrote: The monetarists, they forgot the basic concept of capitalism that wealth is what you make and what you grow and all else stems from that and you need a consumer base - forcing down wages so no one has any disposable income will destroy an economy. Look at what has haoppenbed in the US, manufacturing jobs moved abroad because it was cheaper makes sense in the short term but no one was left with enough income to buy anuthing but the bare necessities. Milton friedman was an idiot.


funny huh? At what point in the history of mankind did the trickle down effect ever work/or exist?

magentaflame;1514459 wrote: funny huh? At what point in the history of mankind did the trickle down effect ever work/or exist?It does work, in theory, provided everyone does their part, which is where the problem lies. If there isn't going to be a strongly supported mechanism (fair regulation) that forces people to participate properly, which is what taxes are supposed to do, then we end up where we are.

I think the European model is better managed than the American model.

Well, there you go eh? See i believe those in the garbage/rubbish industry is just as important as a doctor. And therefore should be payed the same, and accordingly.

magentaflame;1514516 wrote: Well, there you go eh? See i believe those in the garbage/rubbish industry is just as important as a doctor. And therefore should be payed the same, and accordingly.I personally agree with this, but that does not change the fact that, in theory, trickle-down-economics can work. It probably never will though.