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Yes - the constraint has to be super inflation although of course some inflation reduces the real value of government bonds and actually redistributes somewhat. It seems as if we have avoided general inflation in recent years despite massive quantitative easing because that has gone to the banks and into asset classes, particularly property and it also seems farmland, which do not affect the prices of the mass of consumer goods. Also of course we have very weak trade unions and no real driving up, quite the opposite, of labour costs. I can see the monetary argument but states have to use taxes as a mechanism for funding the bulk of expenditure.

David Byrne



From: email list for Radical Statistics [[log in to unmask]] on behalf of John Bibby [[log in to unmask]]
Sent: 08 September 2016 09:22
To: [log in to unmask]
Subject: Re: "Corbynism after Corbyn" : Can JC arise from the dead?-- Corbyn's macro problem

Hi Larry

Just picking up this ancient email of yours, prompted by this "Mainly Macro" blog.

You wrote: "... the government, being the monopoly issuer of the currency, has no financial constraints on its spending .... ". But what ARE the constraints then?  I'd like to see this unpicked. In particular, the constraints due to fear of inflation.

Enlightenment awaited!

Greetings too.

JOHN BIBBY


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On Wed, Jun 29, 2016 at 3:54 PM, Dr L Brownstein <[log in to unmask]> wrote:

Whoever takes over after Corbyn, whenever that will be, will have to bite the macroeconomic bullet and attack neoliberalism and its neoclassical economics cousin root and branch. Nothing else will do. That much has been made clear. Neoliberalism lite is not working and can’t work. Anyone who says that austerity is demanded by being in the EU does not know what they are talking about or they are lying, which Osborne might try to convince others of when he brings forward his awful “budget”. We aren’t in the Eurozone, so we are not bound by any absurd neoliberal claptrap imposed by the Troika. There is no hole in the public finances that the UK government can not get out of by its own bootstraps, and to say otherwise is a lie. Don’t just take my word for it; have a look at Ben Bernanke’s testimony before a Congressional committee, which can be found on youtube.

 

Corbyn and McDonnell’s fundamental problem, as I see it, is that they are neoliberal lite, which means that they are unable to say why they oppose Osborne’s economic policies. It is not sufficient to say that they are “bad”. Everyone knows that. What they don’t know is why they are bad. They don’t know that taxation does not fund government expenditure. They don’t know that the government, being the monopoly issuer of the currency, has no financial constraints on its spending, whatever other constraints they may have, such as human and material resources. Has either Corbyn or McDonnell ever said either of these things? No. Yet, it is the answer to the question, How are you going to pay for it? Notwithstanding the fact that the UK is one of the richest countries in the world.

 

larry

 

Dr L Brownstein

[alt-e:] mailto:[log in to unmask]uk

 

 

From: email list for Radical Statistics [mailto:[log in to unmask]UK] On Behalf Of PILLINGER Rebecca
Sent: Wednesday, June 29, 2016 3:28 PM
To: [log in to unmask]
Subject: Re: "Corbynism after Corbyn" : Can JC arise from the dead?

 

Maybe the Labour Party can’t survive if Corbyn doesn’t stand down. I honestly don’t know.

 

The thing is, I’m not convinced its chances of survival are actually better if he does. It depends on who would replace him, and with what policies and communication strategies, but if it’s someone along the lines of any of the three who stood against Corbyn in the previous contest, I’m really not convinced that the performance at the next election will be any better than the previous whenever it’s held.

 

None of them were changing the narrative that held Labour responsible for the global financial crisis, nor did their proposals sound like they would improve people’s lives after the suffering of austerity. And now in addition many Corbynites will feel betrayed by the recent events and by the lack of support for their choice right from the beginning, and while I’d like to hope they’d consider stopping the Tories to be more important than expressing that at the next general election, I’m not convinced that would hold for all of them, and even if they still vote Labour themselves they may be less enthusiastic advocates of the party to those around them. Meanwhile to the general public Labour I would imagine just looks hopelessly unstable to the point that it probably seems foolhardy to put them in charge, and I don’t think getting rid of Corbyn (whether he resigns or fails to be re-elected) is going to change that perception.

 

So I’m not convinced that ousting Corbyn will save Labour; but I certainly agree that whenever he goes and in whatever manner, it’s important to have someone else ready to take on his mantle. (If that doesn’t happen I’d argue that, even if something called the “Labour Party” continues to have MPs in parliament, the Labour Party won’t have survived in any meaningful sense.) I also think that Corbynites are generally for Corbyn’s policies and/or approach to politics rather than particularly the man himself, so I would expect they would be happy to throw their support behind any successor along the same lines, and Jon Minton’s plan could certainly work. I’m not so sure about McDonnell, who’s rather a controversial figure, though. What about Diane Abbott?

 

Rebecca

 

 

 

 

 

From: email list for Radical Statistics [mailto:[log in to unmask]UK] On Behalf Of John Bibby
Sent: 29 June 2016 15:11
To: [log in to unmask]
Subject: Re: "Corbynism after Corbyn" : Can JC arise from the dead?

 

I'm 50% with you - maybe Tom Watson should stand but with a commitment to have Jeremy in his cabinet. That way we can really believe in (and vote for) JC's "life after death".  JB


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On Wed, Jun 29, 2016 at 2:41 PM, John Whittington <[log in to unmask]> wrote:

At 14:22 29/06/2016 +0100, John Bibby wrote:

I hope that Jeremy survives today's onslaught but he will not last forever. The important thing is the ideas, not the person.


The point surely is that, no matter what one thinks of the man, his principles, politics and ideas, the _Labour Party_ is unlikely to survive in any serious fashion unless he voluntarily 'stands down'.  If he doesn't, the Leadership election process they have chosen could very well re-elect him, but he could not really form a 'credible' Shadow Cabinet, let alone a real Cabinet should (by any miracle!) the party come into power with him as the leader, and I don't even think he could rely on the support of many of the Labour MPs if he did somehow come to power.

To me, that is simply not a formula for an 'effective opposition', let alone an effective (and credible) government - but that's just "how I see it".

Kind Regards,


John

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