Saturday, December 28, 2019

Killing time with Jared Bernstein

Back-up evidence for WaPo piece on most important econ lessons of the decade
1) The unemployment rate can fall a lot lower than most economists thought without triggering inflationary pressures.

No, economists always knew the variable was employment to population ratio. Unemployment was simply a quick proxy that worked well until the boomers began retiring.

2) Budget deficits cannot be assumed to place upward pressure on interest rates.

The real lesson was that more debt yields less inflation which we discovered when the complete monetary cycle from the Nixon Shock was revealed.

3) Weak worker bargaining power has long been a factor driving inequality. In the last decade, the increasing clout of certain employers has joined the mix.

The biggest drive of inequality is government debt which is farmed out to the primary dealer system to bridge the liquidity gaps. This is mainly Krugman, Bernstein doing this, then covering up.

4) Progressive health care reform, wherein the government plays a larger role in coverage and cost control, works.

Complete horseshit. In fact, Bernstein and company lost four elections in a row because of the high cost of premiums under Obamacare.  Then we have the massive rural nursing shortages, made worse by Obamacare.

5) [Lesson re-learned] Trickle-down tax cuts don’t work.

Trickle down tax cuts are miniscule in comparison to the massive inequality caused by Bernstein and company via their misunderstanding of debt.

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