
Procrastinator Extraordinaire. Likes #LVT (#LandValueTax), #MMT (#ModernMoneyTheory), #UBI (#UniversalBasicIncome), #Sortition and #QI (#QuantisedInertia)
Nova Scotia, Canada
Joined December 2013
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Derek Ross retweeted
Can someone please make Steve Keen Chancellor of the Exchequer?
Derek Ross retweeted
“MMT advocates unlimited deficits".
No. It argues fiscal policy should be judged by its effects on employment, inflation, and real resources.
A deficit can be too small, too large, or appropriate.
What's truly bizarre is turning an accounting balance into a moral compass.
Agreed. The principles of #MMT are straightforward. Most people are able to grasp the basics without trouble. The more advanced principles require a little more thought but most high school graduates should have no trouble understanding them with a little study.
I repeat, I'm not exclusively #MMT. But why do none of the professional economists on this thread apart from Itamar understand it even at a basic level? For instance, MMT does advocate tax increases in specific circumstances. It's basically a description of the operation of fiat currency systems, influenced by but not limited to older positions such as Chartalism, functional finance, endogenous money creation, sectoral balances and financial instability. It's certainly related to post-Keynesianism, which can help remedy some of its flaws such as trade balances, international currency valuation etc.
I'm just a lowly all-rounder - economic history, sociology, social psychology - who worked in criminology departments. If I can understand it and summarise it why can't professional economists? Spoiler - the basic reason is that they have to straw-man it to fit their ideologically bound off-the-peg criticisms. Empirically grounded and theoretically sophisticated reformulation of provisional knowledge just isn't their forte. Paradigm-changing ideas are out of the question - disallowed.
I block these people because there's no point in debating with them. You might as well argue with scientologists. I'm not trashing the intellectual capabilities of individuals I don't know outside their orthodox writings, but simply stating the incontrovertible truth that thus far the mainstream neoclassical position has been ideologically locked, that's all. Press any of them hard enough and you'll find its dual root is a deep fear of the state, socialism, collectivism, totalitarianism etc. and an equally deep belief in the individual's right to enter markets to aquire and bequeath unlimited assets. Professional/institutional advocates are not allowed to stray from these principles.
Derek Ross retweeted
Michael Hudson Reaction To The Newest Nobel Economics Prize Travesty
The 2026 award revives a fifty-year objection: economics keeps rewarding theories that overlook the power of creditors.
michael-hudson.com/2026/10/m…
professormichaelhudson.subst…
Derek Ross retweeted
How to Think About Macroeconomics:
1. Start with accounting identities and balance sheets, not theoretical assumptions.
2. View the economy as a system of interconnected sectors, not a collection of indicators.
3. Strictly distinguish between stocks and flows.
4. Explain economic phenomena through causal mechanisms, not mere correlations.
5. Distinguish between real resource constraints and nominal financial constraints.
6. Do not conflate accounting identities, theoretical hypotheses, and empirical regularities.
7. Analyze economic processes in historical time, accounting for fundamental uncertainty and path dependence.
Derek Ross retweeted
We, at Modern Money Lab, helped support this movie, organising its first major national tour (around Australia) in 2024.
It is now, finally, available free of charge on YouTube, everywhere in the world where YouTube is accessible.
youtube.com/watch?v=x3TJFoQW…
Derek Ross retweeted
Every year, humanity churns out entire battalions of macroeconomists who don’t understand even the basics of accounting.
Derek Ross retweeted
Gravity is a process by which quantum mechanics applies on an interplanetary scale converting position uncertainty into energy uncertainty, quantised inertia: arxiv.org/abs/1610.06787
Derek Ross retweeted
One of the Founding Fathers of America, Thomas Paine, believed citizens should be paid dividends from the rent of land, which noone created.
Today, Alaska sends cheques to everyone from their natural resources. And many believe we shouldn't tax hard work, but land instead.
Derek Ross retweeted
State funding, and the illusion of"funds" in government accounts.
A brief conversation with AI about government accounting and funding of the UK state pension.
1/5
Derek Ross retweeted
#Georgism #LVT
Eliminating taxes on productive activity is just as much a part of Georgism as LVT
reddit.com/r/georgism/commen…
History has the answers if you only look.
Replying to @Handre
The US froze prices in WWII
By 1941–42 the US was pouring unprecedented sums into the war. Deficits hit 13–27% of GDP. Factories were converting, workers were flooding into cities, and civilian demand was colliding with military demand for steel, rubber, food, and fuel.
In WWI the same pattern produced a price explosion. Officials remembered that. Uncontrolled bidding would have driven the cost of the war itself through the roof, created windfall profits in scarce goods, and risked civilian unrest. Price controls were not a peacetime ideology. They were an emergency tool to keep the mobilisation from eating itself.
The institutional answer:
Roosevelt created the Office of Price Administration. John Kenneth Galbraith, then a young economist, became deputy administrator in charge of prices. Early selective “scientific” ceilings on individual commodities proved too slow. Inflation kept rising.
In April 1942 they switched to the General Maximum Price Regulation - a near-economy-wide freeze at March 1942 levels. In April 1943 came the “Hold-the-Line” order. Complementary rationing (meat, sugar, gasoline, tires) and wage guidelines followed. Taxes and war-bond drives soaked up purchasing power.
How inflation was actually contained:
Official consumer prices for working-class households rose about 12% from the May 1942 freeze to January 1946 - roughly 3.3% a year. After Hold-the-Line the rise slowed to 1.4% a year through early 1946.
That was far below the WWI trajectory. Wholesale prices and the cost of living rose much less than in the corresponding months of 1917–18, even though real output more than doubled and unemployment fell below 2%.
Galbraith’s later explanation: many prices were already “administered” by large firms rather than set in auction markets. A freeze plus public compliance plus rationing could hold the line within a “margin of tolerance” of excess demand. Patriotism and local volunteer boards did a lot of the enforcement work.
What made them useful:
The point was never perfect price stability. It was to stop prices of war-critical and household goods from exploding while resources were redirected.
• The government paid less for munitions and ships.
• Civilian real consumption still rose 50% even as the military took a huge share of output.
• Labour’s share of income increased.
• Windfall profits in scarcity were limited, which helped political legitimacy.
• Time was bought for fiscal measures (withholding tax, bond sales) to catch up.
Galbraith later wrote that the General Maximum Price Regulation “worked.” He considered the OPA years one of his principal achievements precisely because prices stayed relatively stable while the economy quadrupled in size.
What they did not do:
They did not abolish shortages. Quality often deteriorated. Black markets appeared, especially in meat. A large bureaucracy was required. Official indices missed some hidden inflation (skimpflation, forced substitution). When controls were lifted abruptly in 1946, prices jumped 20%.
Those costs were accepted as the price of running a command-mobilisation economy at full stretch. Galbraith himself later favoured only limited, strategic restraints on large firms and unions in peacetime - not a full wartime apparatus.
Derek Ross retweeted
Replying to @Handre
The US froze prices in WWII
By 1941–42 the US was pouring unprecedented sums into the war. Deficits hit 13–27% of GDP. Factories were converting, workers were flooding into cities, and civilian demand was colliding with military demand for steel, rubber, food, and fuel.
In WWI the same pattern produced a price explosion. Officials remembered that. Uncontrolled bidding would have driven the cost of the war itself through the roof, created windfall profits in scarce goods, and risked civilian unrest. Price controls were not a peacetime ideology. They were an emergency tool to keep the mobilisation from eating itself.
The institutional answer:
Roosevelt created the Office of Price Administration. John Kenneth Galbraith, then a young economist, became deputy administrator in charge of prices. Early selective “scientific” ceilings on individual commodities proved too slow. Inflation kept rising.
In April 1942 they switched to the General Maximum Price Regulation - a near-economy-wide freeze at March 1942 levels. In April 1943 came the “Hold-the-Line” order. Complementary rationing (meat, sugar, gasoline, tires) and wage guidelines followed. Taxes and war-bond drives soaked up purchasing power.
How inflation was actually contained:
Official consumer prices for working-class households rose about 12% from the May 1942 freeze to January 1946 - roughly 3.3% a year. After Hold-the-Line the rise slowed to 1.4% a year through early 1946.
That was far below the WWI trajectory. Wholesale prices and the cost of living rose much less than in the corresponding months of 1917–18, even though real output more than doubled and unemployment fell below 2%.
Galbraith’s later explanation: many prices were already “administered” by large firms rather than set in auction markets. A freeze plus public compliance plus rationing could hold the line within a “margin of tolerance” of excess demand. Patriotism and local volunteer boards did a lot of the enforcement work.
What made them useful:
The point was never perfect price stability. It was to stop prices of war-critical and household goods from exploding while resources were redirected.
• The government paid less for munitions and ships.
• Civilian real consumption still rose 50% even as the military took a huge share of output.
• Labour’s share of income increased.
• Windfall profits in scarcity were limited, which helped political legitimacy.
• Time was bought for fiscal measures (withholding tax, bond sales) to catch up.
Galbraith later wrote that the General Maximum Price Regulation “worked.” He considered the OPA years one of his principal achievements precisely because prices stayed relatively stable while the economy quadrupled in size.
What they did not do:
They did not abolish shortages. Quality often deteriorated. Black markets appeared, especially in meat. A large bureaucracy was required. Official indices missed some hidden inflation (skimpflation, forced substitution). When controls were lifted abruptly in 1946, prices jumped 20%.
Those costs were accepted as the price of running a command-mobilisation economy at full stretch. Galbraith himself later favoured only limited, strategic restraints on large firms and unions in peacetime - not a full wartime apparatus.
Derek Ross retweeted
Replying to @wbmosler @mb_ghalibaf
Synopsis:
The Price Level, Inflation & the Neutral Rate of Interest
#MMT
Derek Ross retweeted
What the hell is the point of having followers if X doesn’t actually show them your posts?
You follow someone because you WANT to see what they post, yet X dumps you straight into the “For You” cesspit instead. Hate, rage, politics, arguments, outrage and whatever other crap the algorithm decides will keep you scrolling.
Meanwhile, the people who actually chose to follow you might never see a thing you post.
This is completely backwards.
X needs to make “Following” the DEFAULT tab. Let people see the content they signed up to see instead of forcing everyone through this ridiculous algorithmic shitshow.
Derek Ross retweeted
Make poorer people pay more in tax so the rich can pass on all their wealth to their children.
Yes, this is a VERY Tory idea.
Inheritance tax could be scrapped if income tax or VAT raised by 1 percentage point to 21% says Times analysis bit.ly/4xzjVbZ
Derek Ross retweeted
Replying to @RaoulGMI
This panic about government debt is being pushed from many Right Wing sources at present. It is a distraction from the real problem of private debt. When the music stops, which it may do soon, it is private debt that will plunge us into depression.
Derek Ross retweeted
"The immense accumulations of fixed capital which, to the great benefit of mankind, were built up during the half century before the war, could never have come about in a Society where wealth was divided equitably."
-John Maynard Keynes
I love this Keynes quote because if you follow the argument through Keynes and then Kalecki, you end up somewhere very different from where it starts.
Before WWI, wealth was incredibly concentrated. Rich households obviously couldn't consume all of their income, so a huge amount was saved while factories, railways, machinery and other capital were being built.
And from the outside that makes it look pretty simple. The rich had the money, the rich saved it, those savings financed investment, therefore you needed rich people and inequality to get capital accumulation.
But... Investment doesn't have to sit around waiting for somebody to save first. Banks can create the credit to finance investment, firms spend that money, that spending becomes somebody else's income, and out of the higher income comes the saving.
So investment can create the saving needed to account for it. Then Kalecki makes this even more interesting because the same thing happens with profits.
Capitalists aren't just sitting on some pile of previously accumulated profits and deciding how much of it they can afford to invest. When they invest, that spending itself helps generate profits across the capitalist sector.
That's where Kalecki's great line comes from: workers spend what they earn, capitalists earn what they spend.
And once you put those two ideas together, the old argument that we need massive inequality because rich people need to save enough money for society to invest starts falling apart.
We don't need to wait for someone to become incredibly wealthy and graciously stop consuming before we can build a factory.
We need real resources, financing, demand and someone willing to actually make the investment.
The saving shows up as a consequence of the income we create along the way.































