In my view, Dean shouldn't have to mention "income redistribution" in every paragraph for those who are familiar with his basic position on the issue. He is pretty clear that redistribution upward is a fundamental principle of the "conservative nanny state". Just removing the perks, protections and privileges of the wealthy would result in a massive "redistribution" to the working people who actually created the wealth in the first place.
On Thu, Jun 21, 2012 at 5:11 PM, Eugene Coyle <[email protected]> wrote: > Yes, the clarification Jim makes identifies the kind of austerity I was > thinking about -- falling real wages. Of course that is well underway in > the USA already. It is not welcome now nor as a long term plan. I should > not have said "Dean Baker recommends austerity" but rather "... seems > resigned to austerity." For he doesn't mention income redistribution. > > A massive redistribution of income in the USA is necessary right > now, along with or as an alternative to stimulus. It would be useful to > mention that in any comment on the macro economy. And if the US $ falls in > value, that redistribution must be amplified to offset it. > > On top of all that, RIO + 20 reminds us, or should remind us, that a > separate redistribution from global north to global south is demanded. To > protect middle and lower income groups as that takes place, add another > step to the domestic redistribution in the USA, to avoid austerity for the > middle and lower income groups. > > Gene > > > > > > > On Jun 21, 2012, at 2:48 PM, Jim Devine wrote: > > > Doug Henwood wrote: > >> I'd sooner believe that I could be accused of supporting austerity than > Dean Baker! > > > > This isn't the standard Angela Merkel sado-Monetarist kind of > > austerity, but Dean does say that > >>> this will require that the dollar fall in value relative to the > currencies of our trading partners, making U.S. products more competitive.<< > > > > The fall in the US$ exchange rate -- especially if large -- means that > > real wages fall as the price of foreign goods rises in terms of US$. > > This is better than the "Greek solution" of "hey, let's cut real wages > > by attacking money wages (and benefits, both private and public)." > > It's more the Icelandic solution. > > > > The problem is that, as Dean says, >> That is a process that will take > > time. With many of trading partners also in severe slumps, we cannot > > expect any major improvement in our trade balance in the immediate > > future.<< > > > > In the current mess, isn't it possible that we'll see competing > > depreciation? If the US depreciates the dollar, that hurts the > > Eurozone's exports, so they depreciate, etc. It looks to me that the > > best venue for expansionary monetary and fiscal policies is > > international. > > > > Calling the World Government! > > -- > > Jim Devine / "As far as the laws of mathematics refer to reality, they > > are not certain; and as far as they are certain, they do not refer to > > reality." -- Albert Einstein > > _______________________________________________ > > pen-l mailing list > > [email protected] > > https://lists.csuchico.edu/mailman/listinfo/pen-l > > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l > -- Cheers, Tom Walker (Sandwichman)
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