Pavlina Tcherneva
Paying for the #GreenNewDeal#Thread 5
— Paying for the Green New Deal (@payforgnd) December 13, 2019
Managing Inflation, pt. 1
Pavlina Tcherneva @ptcherneva
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Most inflation is cost-push, not demand-pull. This lack of demand-pull inflation means that we have the capacity for ambitious public spending. pic.twitter.com/fVobRoQOOc
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— Paying for the Green New Deal (@payforgnd) December 13, 2019
The orthodoxy of inflation resulting from ‘too little’ unemployment is a toxic myth. There is no 'just right' number of involuntarily unemployed people. pic.twitter.com/5Rp92eH78s
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— Paying for the Green New Deal (@payforgnd) December 13, 2019
The #MMT solution is to replace; to give up; to forever forget the concept of a 'natural' rate of involuntary unemployment -- and to replace it with policies that do not permit that condition in the first place. pic.twitter.com/m7f5icN5XU
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— Paying for the Green New Deal (@payforgnd) December 13, 2019
When the Fed ⬆️ interest rates to cool the economy, it grows the pool of unemployed -- the unemployment buffer stock. The #JobGuarantee would just give people jobs at a basic and livable wage. Why have an unemployed buffer stock when you can have an employed buffer stock? pic.twitter.com/98GjECGlHA
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— Paying for the Green New Deal (@payforgnd) December 13, 2019
Our current system of neglect is incredibly expensive. It practically guarantees that there will always be some people who are ready, willing, and able to work, but will be prohibited from doing so. pic.twitter.com/96qELnhI0R
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— Paying for the Green New Deal (@payforgnd) December 13, 2019
Besides that it squanders human potential, the current trickle-down paradigm is also more inflationary than the #JobGuarantee. The only reason why we don't see inflation today is because we are not attempting to use this flawed paradigm to achieve full employment. pic.twitter.com/YUs0LjsRqy
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— Paying for the Green New Deal (@payforgnd) December 13, 2019
Trickle-down economics became most noticeable during the Reagan admin. The consequences have meant that since 1960, smaller and smaller segments of the USA have benefited from economic growth. pic.twitter.com/N6k3F1iwsS
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— Paying for the Green New Deal (@payforgnd) December 13, 2019
Even before Reagan there were indications that the broadly shared benefits of government stimulus would not withstand a strengthening neoliberal assault. This erosion happened because we never secured a wage floor. pic.twitter.com/3iJ2eFKoR2
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— Paying for the Green New Deal (@payforgnd) December 13, 2019
Today, traditional economists are again promoting fiscal half-measures as sufficient economic stabilizers, as they did pre-Reagan. We are not interested in again watching this disappointing movie. They are omitting the most direct and efficacious stabilizer: a #JobGuarantee. pic.twitter.com/286UeusJzs
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— Paying for the Green New Deal (@payforgnd) December 13, 2019
The task before us is to secure full employment, and shift the burden of inflation fighting from the monetary to the fiscal authorities. We either make a pyrrhic project of “stable” prices and unstable lives. Or we mitigate #climatechange with good, green jobs for all. pic.twitter.com/7fiEaefj6v
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— Paying for the Green New Deal (@payforgnd) December 13, 2019
For the full video: https://t.co/OkD4LNE18J
Managing Inflation, pt. 1
by Pavlina Tcherneva @ptcherneva
start time: 5h:29m
Previous threads in this series: https://t.co/zS0wEljJfK
Please stay tuned for our next thread!