I don't think a purely government operated banking system is a good idea. The current system has the advantage of creating a separation of roles between government regulators and the banks themselves. The standard of regulation is not strong and should be ...
Claims about science fictions and utopia as side, I was discussing with Bill how to grow GDP while shrinking the ecological footprint of the economy. When he says that we must first abolish markets and first instate some other (yet to be defined) system he...
No, including energy use tracking with GDP. If you think of an alternative real economy (a sustainable one) then the payments for that can obviously be arranged in essentially any manner. Arguing that it has to be that way then is also claiming there is no...
John's comment was dead on to begin with. There would have been similar sized deficits regardless if labour was elected. Labour needs to explain why the deficits are necessary and stop playing a game of irrelevant political football with the constant ...
Closer but you are not there yet. GDP has three main components, consumption, investment and government spending. So growing GDP does not mandate growing consumption. Also not all consumption is a measure of physical consumption it also counts service ...
Closer but you are not there yet. GDP has three main components, consumption, investment and government spending. So growing GDP does not mandate growing consumption. Also not all consumption is a measure of physical consumption it also counts service ...
Sorry, that kind of thinking doesn't cut it. Explain why if you have some sustainability policy (say reforestation) the government can't pay for it to happen.
Labour wants to run deficits it just doest know it yet. I have been explaining this to you for weeks now and you said the issue was lying, not that deficits were a problem (which they are not). Are you revising that position?
Disagree with this line of thinking. There is no reason fossil fuel use must track GDP growth. The government should invest in employing people to create a sustainable economy. If it does this on a large enough scale then it's quite possible for GDP to ...
Bunji your first post is focusing on the wrong issue, your second on the right issue. Government spending adds directly to GDP by accounting so if the deficit was lower in any of the last seven years then GDP would also have been lower by the exact same ...
No a full reserve system was not tried, but a lower reserve ratio was assumed to work. The result was the reserve supply didn't limit deposit creation anyway. I don't believe a full reserve ratio will be any different without causing issues with payment ...
"What it does if it is done effectively is to limit the investment decisions to something that is a bit more rational the next time around" Australia introduced CGT in 1986. Canada introduced CGT in 1972. UK introduced CGT in 1965. Still don't think it ...
Baa a haha haha. The reserve bank acknowledges that M3 (mostly bank deposits) is part of the money supply.
Seems this did happen. Property speculation tax 1973.
It's complicated, but it's unlikely that a full reserve banking system can really be enforced. Similar proposals were tried in the eighties, called monetarism, and all they achieved was wild fluctuations in lending rates. The idea was to control the total ...
Even if that's true it's still a huge advantage for the left. If what you said is true then the left will never gain support from a CGT policy. They have now avoided having to push it. On the other hand National is taking the risk if it fails to deliver. I...
You are claiming the only reason that NZ taxes in its own currency is because it's 'rational'? But this statement is clearly shown to be meaningless because there are many countries which don't tax in their own currency. At minimum to justify the idea that...
While exports certainly contribute to demand for a currency you lack any explanation for why NZ uses NZ $ without the taxation part of the equation. Trade demands can't possibly explain this. Another piece of evidence is that all Euro zone nations switched...
Once it's leaked parliament had the evidence he lied to them already. It was clear labour had this during question time. I doubt that Nationals strategy involves making it clear the PM regularly lies in parliament so the above.
Let me try to explain it better. We just need to compare two weeks, during the first week you spend all your income. During the second week you (through an act of will power) spend two thirds of your income and save one third. So has aggregate saving gone ...
I don't know a lot about local currency systems. The seem to be popular is places where they are used, but I think the main effect is to keep spending circulating in a local area, rather than to promote exporting. They are usually just fixed exchange rate ...
Thanks for the general pilorying. I am well aware that tax cuts in the upper brackets tend not to be as stimulatory as tax cuts in the lower brackets, however I still think it's important to be consistent about what you are saying. To not do so is ...
Thanks but genius I am not. I am basically outlining economic theory according to post Keynesian economics and modern monetary theory. The reason to do that is so more people understand the financial system and then are able to push for it to be used for ...
Actually your proposal is similar to a policy Labour should adopt. The policy is usually called a job guarantee. The outline is, jobs in the job guarantee program are at the current minimum wage. Non profit and charity sectors may apply to the program for ...
Could the government do it? Yes. Let's assume that the government does it the conventional way and increases the budget deficit to pay for it. I pointed out in my reply to 5.1.2.1.1.1 that this is basically the same as printing if the reserve bank wants to...
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