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Modern Monetary Theory (MMT) (Read 91642 times)
thegreatdivide
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Re: Modern Monetary Theory (MMT)
Reply #435 - Mar 31st, 2023 at 11:22am
 
https://progressive.international/blueprint/ccd13812-0487-4d80-8b8a-629a64563aeb...

Professor Jayati Ghosh delivers an address to the launch event of the New International Economic Order on the opportunities of a fragmented geopolitical order for a new world to flourish in its cracks.

There has never been a more important time to talk about a new multilateralism in a very rapidly changing world. Now that we know that the existing structures of multilateralism are simply not working — not generating either peace or stability or security or economic viability or planetary sustainability — we have to rethink these institutions. We have to think of an international architecture that will work in the current global situation.

This is possible because the world is more fragmented now, for geopolitical reasons and economic reasons. That fragmentation provides an opportunity for all of us who are concerned with much broader economic justice to think of and to work towards generating a genuinely progressive alternative.


Yes, the neoclassical foundations of the current system are buckling under pressure....
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thegreatdivide
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Re: Modern Monetary Theory (MMT)
Reply #436 - Apr 1st, 2023 at 9:27am
 
Speaking of creating money out of thin air.

https://theconversation.com/how-can-australia-pay-368-billion-for-new-submarines...

How can Australia pay $368 billion for new submarines? Some of the money will be created from thin air


...but it's a shame the nation intends to mobilize all that knowhow, labour and resources to build nuclear subs,  because of the "China threat' paranoia....
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thegreatdivide
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Re: Modern Monetary Theory (MMT)
Reply #437 - Apr 3rd, 2023 at 9:31am
 
https://profstevekeen.substack.com/p/the-schizophrenic-understanding-of?utm_sour...

The schizophrenic understanding of money in economics

Steve Keen
3 hr ago
One of the great ironies of economics is that, while the public regards economists as experts on money, the issue of how money is created is still not settled within economics.
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thegreatdivide
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Re: Modern Monetary Theory (MMT)
Reply #438 - Apr 7th, 2023 at 3:24pm
 
Forgotten experiences - relevant to the current "closing the gap" voice debate:

https://www.tandfonline.com/doi/abs/10.1080/14427591.1993.9686379

What it means to get off sit‐down money: Community development employment projects (CDEP)
Heather Jensen
Pages 12-18 | Published online: 26 Sep 2011

"CDEP has a two fold purpose: employment creation and community development. Work that the community identifies as important is carried out, and meaningful occupation is provided for individuals, increasing the workers’ skills and reducing boredom and drinking. The main thrust of self determination has been the development of Aboriginal organisations. The success of CDEP is dependent on these organisations which provide culturally appropriate employment, which includes the CDEP scheme. A recent review (ie, in 2011) of the CDEP scheme indicated that 71% of Aboriginal communities surveyed considered that CDEP was helpful in meeting the goals of the community and 82% considered that community members were better off under the scheme

PM John Howard, following disastrous Thatcherite neoliberal market orthodoxy, began dismantling the CDEPs in the 2000s.

Of course we now know Philip Lowe could fund - without taxing or borrowing - a reinstatement of the CDEPs, if he was authorized by the government to do so, because there need  be no "crowding out" of (sensible) private sector claims on available resources.
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Frank
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Re: Modern Monetary Theory (MMT)
Reply #439 - Apr 7th, 2023 at 8:10pm
 
thegreatdivide wrote on Apr 7th, 2023 at 3:24pm:
Forgotten experiences - relevant to the current "closing the gap" voice debate:

https://www.tandfonline.com/doi/abs/10.1080/14427591.1993.9686379

What it means to get off sit‐down money: Community development employment projects (CDEP)
Heather Jensen
Pages 12-18 | Published online: 26 Sep 2011

"CDEP has a two fold purpose: employment creation and community development. Work that the community identifies as important is carried out, and meaningful occupation is provided for individuals, increasing the workers’ skills and reducing boredom and drinking. The main thrust of self determination has been the development of Aboriginal organisations. The success of CDEP is dependent on these organisations which provide culturally appropriate employment, which includes the CDEP scheme. A recent review (ie, in 2011) of the CDEP scheme indicated that 71% of Aboriginal communities surveyed considered that CDEP was helpful in meeting the goals of the community and 82% considered that community members were better off under the scheme

PM John Howard, following disastrous Thatcherite neoliberal market orthodoxy, began dismantling the CDEPs in the 2000s.

Of course we now know Philip Lowe could fund - without taxing or borrowing - a reinstatement of the CDEPs, if he was authorized by the government to do so, because there need  be no "crowding out" of (sensible) private sector claims on available resources.



https://mobile.twitter.com/DrLoupis/status/1642459300215033858
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thegreatdivide
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Re: Modern Monetary Theory (MMT)
Reply #440 - Apr 7th, 2023 at 8:36pm
 
Frank wrote on Apr 7th, 2023 at 8:10pm:
thegreatdivide wrote on Apr 7th, 2023 at 3:24pm:
Forgotten experiences - relevant to the current "closing the gap" voice debate:

https://www.tandfonline.com/doi/abs/10.1080/14427591.1993.9686379

What it means to get off sit‐down money: Community development employment projects (CDEP)
Heather Jensen
Pages 12-18 | Published online: 26 Sep 2011

"CDEP has a two fold purpose: employment creation and community development. Work that the community identifies as important is carried out, and meaningful occupation is provided for individuals, increasing the workers’ skills and reducing boredom and drinking. The main thrust of self determination has been the development of Aboriginal organisations. The success of CDEP is dependent on these organisations which provide culturally appropriate employment, which includes the CDEP scheme. A recent review (ie, in 2011) of the CDEP scheme indicated that 71% of Aboriginal communities surveyed considered that CDEP was helpful in meeting the goals of the community and 82% considered that community members were better off under the scheme

PM John Howard, following disastrous Thatcherite neoliberal market orthodoxy, began dismantling the CDEPs in the 2000s.

Of course we now know Philip Lowe could fund - without taxing or borrowing - a reinstatement of the CDEPs, if he was authorized by the government to do so, because there need  be no "crowding out" of (sensible) private sector claims on available resources.



https://mobile.twitter.com/DrLoupis/status/1642459300215033858


Don't understand money, Frank?

Never mind, even economists trained in the current mainstream obsolete neoclassical orthodoxy don't have a clue.   

As pointed out by Prof. Steve Keen, in #437:

"One of the great ironies of economics is that, while the public regards economists as experts on money, the issue of how money is created is still not settled within economics."
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Frank
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Re: Modern Monetary Theory (MMT)
Reply #441 - Apr 7th, 2023 at 9:02pm
 
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thegreatdivide
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Re: Modern Monetary Theory (MMT)
Reply #442 - Apr 7th, 2023 at 9:21pm
 
Frank wrote on Apr 7th, 2023 at 9:02pm:


All merely displaying your own ignorance.

Keen has actually proved current central bank monetary orthodoxy is wrong, using double entry accounting and Minsky sofware he developed himself: see #428, and #437.

But apparently the neoclassical diehards haven't even looked at it.
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thegreatdivide
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Re: Modern Monetary Theory (MMT)
Reply #443 - Apr 8th, 2023 at 5:46pm
 
Labor in danger of a slow inevitable electoral decline:

https://www.msn.com/en-au/news/other/state-government-looking-to-make-big-cuts-t...

State governments (as well as the Commonwealth) "looking to make big cuts to the public sector", owing to obsolete debt and deficit monetary orthodoxy.
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Bobby.
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Re: Modern Monetary Theory (MMT)
Reply #444 - Apr 9th, 2023 at 3:35pm
 

Zimbabwe was printing 100 trillion dollar notes
which were needed to buy a loaf of bread.


...
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Frank
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Re: Modern Monetary Theory (MMT)
Reply #445 - Apr 9th, 2023 at 5:56pm
 
thegreatdivide wrote on Apr 7th, 2023 at 3:24pm:
Forgotten experiences - relevant to the current "closing the gap" voice debate:

https://www.tandfonline.com/doi/abs/10.1080/14427591.1993.9686379

What it means to get off sit‐down money: Community development employment projects (CDEP)
Heather Jensen
Pages 12-18 | Published online: 26 Sep 2011

"CDEP has a two fold purpose: employment creation and community development. Work that the community identifies as important is carried out, and meaningful occupation is provided for individuals, increasing the workers’ skills and reducing boredom and drinking. The main thrust of self determination has been the development of Aboriginal organisations. The success of CDEP is dependent on these organisations which provide culturally appropriate employment, which includes the CDEP scheme. A recent review (ie, in 2011) of the CDEP scheme indicated that 71% of Aboriginal communities surveyed considered that CDEP was helpful in meeting the goals of the community and 82% considered that community members were better off under the scheme

PM John Howard, following disastrous Thatcherite neoliberal market orthodoxy, began dismantling the CDEPs in the 2000s.

Of course we now know Philip Lowe could fund - without taxing or borrowing - a reinstatement of the CDEPs, if he was authorized by the government to do so, because there need  be no "crowding out" of (sensible) private sector claims on available resources.

But despite its good intentions, CDEP’s evolution has hindered rather than helped Indigenous people. At the program’s heart is the notion that Indigenous Australians are not capable of holding mainstream employment.
Instead of being a transition to real work, CDEP is an obstacle to employment. Only around 5% of CDEP participants move to mainstream jobs.
CDEP payments are combined with other forms of income assistance such as Newstart Allowance and Parenting Payment. A single mother with six children receiving CDEP for home duties plus welfare can receive nearly $2,000 a fortnight. These payments create a ‘welfare pedestal’ which prevents participants from considering study, training, or work opportunities.  Participants are paid for doing housework, mowing their own lawns, attending funerals, and for doing nothing at all. Consequently, Indigenous people regard CDEP pay contemptuously as ‘sit down’ money.
If CDEP is excluded from employment figures, after thirty years of the CDEP program, the percentage of Indigenous people in ‘real’ employment in ghetto, fringe, and remote areas is only 17%.
CDEP has hidden the crisis in Indigenous education. CDEP participants do not need to know how to read and write, and CDEP training does not qualify them for mainstream jobs. So-called vocational certificates are awarded to participants unable to read, write, or count.
Most Aborigines and Torres Strait Islanders, even in remote areas, are located within commuting distance of work in retail, tourism, agriculture, and mining. They cannot access these jobs because they are not literate or numerate, and lack post-school vocational training.
Many people have vested interests in maintaining the status quo:
• CDEP has enabled territory and state governments to abdicate responsibility for providing local government, health, education, and policing services.
• CDEP has encouraged Indigenous organisations to expand their bureaucratic structures to service CDEP and associated activities, rather than stimulating a transition to employment.
• CDEP has enabled some communal enterprises to appear to succeed by subsidising them through the payment of wages and capital grants.
The part that CDEP has played in keeping Indigenous people out of mainstream employment must be addressed if the cycle of Indigenous joblessness, welfare dependence, and family and community dysfunction is to end.

For this and many other reasons, the Howard government decided to end the CDEP scheme. But although the Rudd government continued to phase out CDEP, existing recipients were allowed to remain on the program until July 2011; this was later extended to July 2012. And just last week the Indigenous Affairs Minister, Jenny Macklin, announced that the 4,000 people still receiving CDEP payments will remain on the scheme for another five years.

Macklin argued that many of the people on CDEP have been on the scheme for so long that it would be ‘pointless to move them on.’ The Coalition has criticised this approach, arguing that the Labor government was taking a lazy approach to CDEP by allowing Indigenous people to stay on it for a further five years without reforming it and returning it to its ‘original principles.’

CDEP was originally designed as a replacement for unemployment benefits in remote communities and to provide work and on-the-job training. But despite its good intentions, CDEP ended up hindering rather than helping Indigenous people.

At the program’s heart was the notion that Indigenous Australians are not capable of holding mainstream employment. Inevitably, because it was a separate program for Aboriginal people, lower standards were allowed to creep in and people ended up getting paid for doing very little.

https://www.cis.org.au/commentary/opinion/no-more-dreaming-of-cdep/
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thegreatdivide
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Re: Modern Monetary Theory (MMT)
Reply #446 - Apr 9th, 2023 at 6:50pm
 
Frank wrote on Apr 9th, 2023 at 5:56pm:
But despite its good intentions, CDEP’s evolution has hindered rather than helped Indigenous people.


You are mixing up the timelines: CDEP produced good results  (as shown in the links in my previous post),  UNTIL it was progressively cancelled starting with PM Howard  in the  2000s.

Quote:
At the program’s heart is the notion that Indigenous Australians are not capable of holding mainstream employment.


Correct, though you are also discounting the million or so long-term non-black workers who are ALSO "not capable of holding mainstream employment" ie, in the competitive market-economy job-market. 

Quote:
Instead of being a transition to real work, CDEP is an obstacle to employment.


No; again you apparently have not read the article which directly contradicts this claim.   

Quote:
Only around 5% of CDEP participants move to mainstream jobs.


Now at least you have rejoined the debate; but I have already commented on your irrelevant definition of "mainstream jobs"; JG jobs (and CDEP jobs) aren't "mainstream", by design.

Quote:
CDEP payments are combined with other forms of income assistance such as Newstart Allowance and Parenting Payment. A single mother with six children receiving CDEP for home duties plus welfare can receive nearly $2,000 a fortnight. These payments create a ‘welfare pedestal’ which prevents participants from considering study, training, or work opportunities. 


BS..... taking the example of a single mother with six kids...as if that is reason to condemn the CDEP, for all other worker categories.   

Quote:
Participants are paid for doing housework, mowing their own lawns, attending funerals, and for doing nothing at all. Consequently, Indigenous people regard CDEP pay contemptuously as ‘sit down’ money.
If CDEP is excluded from employment figures, after thirty years of the CDEP program, the percentage of Indigenous people in ‘real’ employment in ghetto, fringe, and remote areas is only 17%.
CDEP has hidden the crisis in Indigenous education. CDEP participants do not need to know how to read and write, and CDEP training does not qualify them for mainstream jobs. So-called vocational certificates are awarded to participants unable to read, write, or count.
Most Aborigines and Torres Strait Islanders, even in remote areas, are located within commuting distance of work in retail, tourism, agriculture, and mining. They cannot access these jobs because they are not literate or numerate, and lack post-school vocational training.
Many people have vested interests in maintaining the status quo:
• CDEP has enabled territory and state governments to abdicate responsibility for providing local government, health, education, and policing services.
• CDEP has encouraged Indigenous organisations to expand their bureaucratic structures to service CDEP and associated activities, rather than stimulating a transition to employment.
• CDEP has enabled some communal enterprises to appear to succeed by subsidising them through the payment of wages and capital grants.
The part that CDEP has played in keeping Indigenous people out of mainstream employment must be addressed if the cycle of Indigenous joblessness, welfare dependence, and family and community dysfunction is to end.

For this and many other reasons, the Howard government decided to end the CDEP scheme. But although the Rudd government continued to phase out CDEP, existing recipients were allowed to remain on the program until July 2011; this was later extended to July 2012. And just last week the Indigenous Affairs Minister, Jenny Macklin, announced that the 4,000 people still receiving CDEP payments will remain on the scheme for another five years.

Macklin argued that many of the people on CDEP have been on the scheme for so long that it would be ‘pointless to move them on.’ The Coalition has criticised this approach, arguing that the Labor government was taking a lazy approach to CDEP by allowing Indigenous people to stay on it for a further five years without reforming it and returning it to its ‘original principles.’

CDEP was originally designed as a replacement for unemployment benefits in remote communities and to provide work and on-the-job training. But despite its good intentions, CDEP ended up hindering rather than helping Indigenous people.

At the program’s heart was the notion that Indigenous Australians are not capable of holding mainstream employment. Inevitably, because it was a separate program for Aboriginal people, lower standards were allowed to creep in and people ended up getting paid for doing very little.

https://www.cis.org.au/commentary/opinion/no-more-dreaming-of-cdep/


Neoliberal market ideologues criticizing the CDEP; hence the worthless commentary (but bravo for bothering to do your own research),  contradicted by those who actually participated in and enjoyed the benefits of the CDEP, as outlined in my linked  articles re the CDEP.   

Of course, where there's a will there's a way to eradicate welfare dependency, and that is what the nation MUST do, to close the gap. 
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Frank
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Re: Modern Monetary Theory (MMT)
Reply #447 - Apr 9th, 2023 at 9:08pm
 
thegreatdivide wrote on Apr 9th, 2023 at 6:50pm:
Frank wrote on Apr 9th, 2023 at 5:56pm:
But despite its good intentions, CDEP’s evolution has hindered rather than helped Indigenous people.


You are mixing up the timelines: CDEP produced good results  (as shown in the links in my previous post),  UNTIL it was progressively cancelled starting with PM Howard  in the  2000s.

Quote:
At the program’s heart is the notion that Indigenous Australians are not capable of holding mainstream employment.


Correct, though you are also discounting the million or so long-term non-black workers who are ALSO "not capable of holding mainstream employment" ie, in the competitive market-economy job-market. 

Quote:
Instead of being a transition to real work, CDEP is an obstacle to employment.


No; again you apparently have not read the article which directly contradicts this claim.   

Quote:
Only around 5% of CDEP participants move to mainstream jobs.


Now at least you have rejoined the debate; but I have already commented on your irrelevant definition of "mainstream jobs"; JG jobs (and CDEP jobs) aren't "mainstream", by design.

Quote:
CDEP payments are combined with other forms of income assistance such as Newstart Allowance and Parenting Payment. A single mother with six children receiving CDEP for home duties plus welfare can receive nearly $2,000 a fortnight. These payments create a ‘welfare pedestal’ which prevents participants from considering study, training, or work opportunities. 


BS..... taking the example of a single mother with six kids...as if that is reason to condemn the CDEP, for all other worker categories.   

Quote:
Participants are paid for doing housework, mowing their own lawns, attending funerals, and for doing nothing at all. Consequently, Indigenous people regard CDEP pay contemptuously as ‘sit down’ money.
If CDEP is excluded from employment figures, after thirty years of the CDEP program, the percentage of Indigenous people in ‘real’ employment in ghetto, fringe, and remote areas is only 17%.
CDEP has hidden the crisis in Indigenous education. CDEP participants do not need to know how to read and write, and CDEP training does not qualify them for mainstream jobs. So-called vocational certificates are awarded to participants unable to read, write, or count.
Most Aborigines and Torres Strait Islanders, even in remote areas, are located within commuting distance of work in retail, tourism, agriculture, and mining. They cannot access these jobs because they are not literate or numerate, and lack post-school vocational training.
Many people have vested interests in maintaining the status quo:
• CDEP has enabled territory and state governments to abdicate responsibility for providing local government, health, education, and policing services.
• CDEP has encouraged Indigenous organisations to expand their bureaucratic structures to service CDEP and associated activities, rather than stimulating a transition to employment.
• CDEP has enabled some communal enterprises to appear to succeed by subsidising them through the payment of wages and capital grants.
The part that CDEP has played in keeping Indigenous people out of mainstream employment must be addressed if the cycle of Indigenous joblessness, welfare dependence, and family and community dysfunction is to end.

For this and many other reasons, the Howard government decided to end the CDEP scheme. But although the Rudd government continued to phase out CDEP, existing recipients were allowed to remain on the program until July 2011; this was later extended to July 2012. And just last week the Indigenous Affairs Minister, Jenny Macklin, announced that the 4,000 people still receiving CDEP payments will remain on the scheme for another five years.

Macklin argued that many of the people on CDEP have been on the scheme for so long that it would be ‘pointless to move them on.’ The Coalition has criticised this approach, arguing that the Labor government was taking a lazy approach to CDEP by allowing Indigenous people to stay on it for a further five years without reforming it and returning it to its ‘original principles.’

CDEP was originally designed as a replacement for unemployment benefits in remote communities and to provide work and on-the-job training. But despite its good intentions, CDEP ended up hindering rather than helping Indigenous people.

At the program’s heart was the notion that Indigenous Australians are not capable of holding mainstream employment. Inevitably, because it was a separate program for Aboriginal people, lower standards were allowed to creep in and people ended up getting paid for doing very little.

https://www.cis.org.au/commentary/opinion/no-more-dreaming-of-cdep/


Neoliberal market ideologues criticizing the CDEP; hence the worthless commentary (but bravo for bothering to do your own research),  contradicted by those who actually participated in and enjoyed the benefits of the CDEP, as outlined in my linked  articles re the CDEP.   

Of course, where there's a will there's a way to eradicate welfare dependency, and that is what the nation MUST do, to close the gap. 


You should change your name to Oblivious.


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thegreatdivide
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Re: Modern Monetary Theory (MMT)
Reply #448 - Apr 10th, 2023 at 10:04am
 
Priceless.

Buyer: "the parrot is dead" - seller: ""no, it's only resting"  (Monty Python sketch).

Prof. Steve Keen examines and disposes of the mainstream 'money-multiplier' concept.

https://profstevekeen.substack.com/p/the-dead-parrot-of-mainstream-economics?utm...

The Dead Parrot of Mainstream Economics


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thegreatdivide
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Re: Modern Monetary Theory (MMT)
Reply #449 - Apr 10th, 2023 at 10:10am
 
Frank wrote on Apr 9th, 2023 at 9:08pm:
You should change your name to Oblivious.


Who is oblivious of the fact the nation has to end welfare dependency among a significant minority, if it wants to close the gap?

Note: even the Alice Springs Police Commissioner recently acknowledged the fact.
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