This post was written as a result of someone on Facebook insisting that since the overall mortality rate of Covid-19, calculated as the total number of American deaths divided by the total American population, is very low, that Covid-19 does not justify everyone staying at home and the loss of business activity that is cratering … Continue reading Is Covid-19 as bad as some say?
The video below is an interview with Rana Foroohar, being interviewed by Bob Herbert on Op-Ed TV. She makes an incredibly clear statement starting at 3:02, and lasting until 4:00. You won't need to find the timing marks, the video below starts and stops at those points already.
When Congress directs the US treasury to do something that requires new money be created, what is the process of that new money coming into existence? This article is based on this interview with Warren Mosler. https://youtu.be/480sGei5ZsA The mechanics of how the US treasury creates new money Step 1: The US treasury sells bonds to … Continue reading How the US Treasury creates new money
When a nation has a sovereign currency, measuring national wealth in dollars makes no sense. Money is created (and destroyed) by the banking system (which in the US includes the US Treasury and the Federal Reserve Bank) as needed. When we ask things like "How are we going to pay for it"?, we're misleading ourselves. … Continue reading The Wealth of a Nation is Not Measured in Money, but in Productive Output
Someone shared the tweet thread below with me on either Facebook or Twitter (can't remember) and it's EXCELLENT. So I've recreated it here, as faithfully as possible to the original as I can. I learned stuff and I hope you do too. To see the original tweet thread, click here. Tweet Thread About Reserve Accounting … Continue reading Understanding How Modern Money Works, Requires Knowing Reserve Accounting
We are not borrowing money from China...... What the Government is doing is creating its own financing to activate idle resources. Just like the private sector does.The Cowboy Economist (aka John Harvey Ph.D.) In this video lesson, the Cowboy Economist explains how the federal government finances its deficits. But before you watch this, you really … Continue reading Cowboy Economist Tells Us How the Government Finances Its Deficits
Did you know commercial banks create money out of thin air every time they loan money? You may have thought that when you take out a $30,000 car loan, the banks takes $30,000 from their vault, and loan you other people's savings. This is not the case. They literally create $30,000 out of thin air, … Continue reading Cowboy Economist Tells Us How the Private Sector Finances Its Deficits
The Cowboy Economist is John Harvey, PhD, who has started making really funny educational videos about econonmics. They're worth sharing, so I am. John draws a distinction between big S socialism (Karl Marx) and small S socialism (Bernie Sanders) in a way that clearly distinguishes them. The two definitions are below. As he says, they're … Continue reading Cowboy Economist Tells Us How to Recognize a Socialist
This is really a question or inquiry from me. I'm not an economist. Both of these terms are new to me. Adam Smith spoke about Economic Rent. Rent-seeking is an individual's or entity's use of company, organizational or individual resources to obtain economic gain without reciprocating any benefits to society through wealth creation. As defined … Continue reading Is Economic Rent (Adam Smith) and Fictitious Capital (Karl Marx) the Same Thing?