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Author: Lawrence Marsh
Publisher: Avila University Press
ISBN: 9780982852101
Category :
Languages : en
Pages : 0
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Book Description
Distorted money flow has diverted so much money from Main Street to Wall Street that the middle class can no longer buy back the value of the goods and services that they are capable of producing at full employment. Consequently, middle class private debt has grown enormously. But even that is not enough to maintain full employment, so Republicans engage in deficit spending with unpaid for tax cuts and Democrats with unpaid for expenditures to avoid high levels of unemployment and large vote losses at election time. Instead of working directly with the real economy, the Federal Reserve operates exclusively through the New York financial markets. Over many decades, to stimulate the economy the Fed has diverted enormous amounts of money to Wall Street instead of directing that money to Main Street. While in recent decades our economy has been growing at about 3 percent on average each year, stock prices on average have been growing at 10 percent. This has suppressed productivity and economic growth by causing non-financial firms to invest their money on Wall Street that would have otherwise gone into producing more and better consumer goods more productively. The people on Main Street have lost out, while the 10 percent richest people who own 84 percent of the stocks on Wall Street have gained enormous wealth. By restricting its operations to the New York financial markets, the Federal Reserve has only a weak and indirect effect on the real economy on Main Street. The Federal Reserve's cost-of-borrowing tool suppresses supply and demand to stop inflation and is brutal and ineffective risking recession. For over 50 years from 1911 to 1966 Americans could go to any post office to set up a savings account. By reissuing the Postal Savings Act of 1910, Congress could provide the Federal Reserve with a new return-on-savings tool offering 10 percent on savings (maximum $10,000) at any post office. Getting people to save more and spend less can stop inflation without sending our economy into a recession. Money-Flow webpage: https://optimal-money-flow.website/ Notre-Dame Economist's webpage: http://sites.nd.edu/lawrence-c-marsh/home/
Author: Lawrence Marsh
Publisher: Avila University Press
ISBN: 9780982852101
Category :
Languages : en
Pages : 0
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Book Description
Distorted money flow has diverted so much money from Main Street to Wall Street that the middle class can no longer buy back the value of the goods and services that they are capable of producing at full employment. Consequently, middle class private debt has grown enormously. But even that is not enough to maintain full employment, so Republicans engage in deficit spending with unpaid for tax cuts and Democrats with unpaid for expenditures to avoid high levels of unemployment and large vote losses at election time. Instead of working directly with the real economy, the Federal Reserve operates exclusively through the New York financial markets. Over many decades, to stimulate the economy the Fed has diverted enormous amounts of money to Wall Street instead of directing that money to Main Street. While in recent decades our economy has been growing at about 3 percent on average each year, stock prices on average have been growing at 10 percent. This has suppressed productivity and economic growth by causing non-financial firms to invest their money on Wall Street that would have otherwise gone into producing more and better consumer goods more productively. The people on Main Street have lost out, while the 10 percent richest people who own 84 percent of the stocks on Wall Street have gained enormous wealth. By restricting its operations to the New York financial markets, the Federal Reserve has only a weak and indirect effect on the real economy on Main Street. The Federal Reserve's cost-of-borrowing tool suppresses supply and demand to stop inflation and is brutal and ineffective risking recession. For over 50 years from 1911 to 1966 Americans could go to any post office to set up a savings account. By reissuing the Postal Savings Act of 1910, Congress could provide the Federal Reserve with a new return-on-savings tool offering 10 percent on savings (maximum $10,000) at any post office. Getting people to save more and spend less can stop inflation without sending our economy into a recession. Money-Flow webpage: https://optimal-money-flow.website/ Notre-Dame Economist's webpage: http://sites.nd.edu/lawrence-c-marsh/home/
Author: Lawrence C. Marsh
Publisher: Greenleaf Book Group
ISBN: 1734225211
Category : Business & Economics
Languages : en
Pages : 258
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Book Description
Extremes in income and wealth inequality are leading us closer to a highly insecure and unstable economy. Neoclassical, monetarist, Keynesian, and other economic paradigms have proven inadequate to explain this phenomenon. While many books promote redistribution as an issue of fairness, Lawrence C. Marsh’s Optimal Money Flow explicitly sets aside the fairness issue to argue instead that redistribution is imperative for economic efficiency, stability, and maximum economic growth. Marsh introduces his unique money flow paradigm as the replacement for other economic paradigms that have failed at addressing the situation we face today. Marsh’s money flow paradigm views the flow of money to the top of the wealth pyramid as inherent, inevitable, and inexorable to the free enterprise system. This new paradigm requires that government assume its rightful responsibility to direct sufficient money flow from the top to the bottom (like a heart pumping blood throughout the body) in order to maximize employment, economic growth, and efficient resource allocation. In a healthy economy, the money then flows naturally back up to the top in a circulatory flow. Optimal Money Flow provides an abundance of stimulating, original ideas for readers who appreciate books at the intersection of economics and politics. One such idea is Marsh’s "My America" personal accounts. This new policy tool would serve as an alternative to the Fed buying US Treasury securities in New York financial markets, which just lowers interest rates and boosts stock and bond prices. Instead, a "My America" Federal Reserve bank account would be created for every American, into which money could be injected directly to provide consumers with cash to stimulate demand when the economy slows. Conservatives will appreciate two aspects of this approach: The people, not the government, decide how to spend the money, and it does not increase taxes or add to the national debt, while it simultaneously avoids excessive inflation through prudent monetary management. It also uses less money and has a more direct and immediate impact on consumer demand than the purchase of US Treasury securities. Lawrence Marsh sees government as the heart of the free enterprise system—where it does and should play an active part in maintaining and ensuring efficient and equitable resource allocation in an economy. Previous economic paradigms viewed government as an external, alien force outside the system, but Marsh promotes a very different approach. While he acknowledges there is efficiency in the market for ordinary goods and services, he sees contagion effects and inefficiency in many financial markets. With higher levels of globalization, low levels of unionization, and more rapid technological change, a new type of business cycle has emerged—one in which rising middle-class debt and stock market bubbles have replaced price and wage inflation as the source of economic instability. Marsh believes government can contribute to the efficiency of the free enterprise system by better aligning marginal costs and marginal benefits, and that in the long run, government can greatly enhance efficiency, productivity, and economic growth. Marsh also takes on the commonly held notion of a static fight over a fixed economic pie with the assertion that this view must be replaced with one of a dynamic process that maximizes the growth rate of the economic pie for everyone—by keeping the money flowing to all parts of the economy. Optimal Money Flow’s important message and unique proposals deliver a fresh view of the interconnectedness of the globe and an updated understanding of the underlying economic forces that shape our lives today—including international trade and how one country's decisions now impact the rest of the world. Readers will rethink their basic assumptions about the nature of economics and the role of government.
Author: Venita VanCaspel
Publisher: Simon & Schuster
ISBN:
Category : Business & Economics
Languages : en
Pages : 552
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Book Description
Takes into account revised tax laws, changes in real estate and other financial opportunities, and the impact of the Gromm-Rudmann bill to offer advice on investment strategy.
Author: M.L. Burstein
Publisher: Springer
ISBN: 134918070X
Category : Business & Economics
Languages : en
Pages : 223
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Book Description
Innovations in financial markets and in financial management, together with dramatic innovations in the substance and technique of monetary theory, have made it necessary to restate the theory of money and the theory of monetary policy. In order to provide a new monetary theory, the author treats fully the following material: choice of currency and the theory of convertibility; interest on money; speculation and rational expectations; implications of electronic-transfer settlement procedures for monetary theory, as well as other matters. The theories of Tobin are developed and exposited in detail, as is the work of Friedman.
Author: Ghislain Deleplace
Publisher: Springer
ISBN: 1349245259
Category : Business & Economics
Languages : en
Pages : 770
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Book Description
In analyzing money, contemporary economics has focused its attention on money's function as a store of value, neglecting its role as medium of circulation. When circulation is put center stage, it becomes apparent that the supply of money does indeed adapt to the needs of trade - and does so in many different ways, often ways that are difficult for a central bank to control, because they reflect the responses of banks and other financial institutions to market incentives. But money's role in circulation must be coordinated with its store of value function, and both with finance. Failure here can lead to instability. The essays in this volume by internationally renowned economists cover these issues in original and contrasting analyses, presenting the American post-Keynesian perspective, on the one hand, and the point of view of the French Circulation School, on the other.
Author: Onno van Hilten
Publisher: Springer Science & Business Media
ISBN: 3642778844
Category : Business & Economics
Languages : en
Pages : 439
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Book Description
In this book we open our insights in the Theory of the Firm, obtained through the application of Optimal Control Theory, to a public of scholars and advanced students in economics and applied mathematics. We walk on the micro economic side of the street that is bordered by Theory of the Firm on one side and by Optimal Control Theory on the other, keeping the reader away from all the dead end roads we turned down during our 10 years lasting research. We focus attention on the expressiveness and variety of insights that are obtained through studying only simple models of the firm. In this book mathematics is our tool, insight in optimal corporate policy our goal. Therefore most of the mathematics and calculations is put into appendices and in the main text all attention is on modelling corporate behaviour and on analysing the results of the calculations. So, the main text focusses on micro economics, even more specific: on Theory of the Firm. In that way this book is contrasted from such famous text books in applied Optimal Control with a much broader portfolio of applications, like Feichtinger & Hartl (1986) or with a more rigorous introduction into theory, like Seierstad & Sydsaeter (1987).
Author: John Maynard Keynes
Publisher: Springer
ISBN: 3319703447
Category : Business & Economics
Languages : en
Pages : 430
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Book Description
This book was originally published by Macmillan in 1936. It was voted the top Academic Book that Shaped Modern Britain by Academic Book Week (UK) in 2017, and in 2011 was placed on Time Magazine's top 100 non-fiction books written in English since 1923. Reissued with a fresh Introduction by the Nobel-prize winner Paul Krugman and a new Afterword by Keynes’ biographer Robert Skidelsky, this important work is made available to a new generation. The General Theory of Employment, Interest and Money transformed economics and changed the face of modern macroeconomics. Keynes’ argument is based on the idea that the level of employment is not determined by the price of labour, but by the spending of money. It gave way to an entirely new approach where employment, inflation and the market economy are concerned. Highly provocative at its time of publication, this book and Keynes’ theories continue to remain the subject of much support and praise, criticism and debate. Economists at any stage in their career will enjoy revisiting this treatise and observing the relevance of Keynes’ work in today’s contemporary climate.
Author: Joseph A. Schumpeter
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Schumpeter first reviews the basic economic concepts that describe the recurring economic processes of a commercially organized state in which private property, division of labor, and free competition prevail. These constitute what Schumpeter calls "the circular flow of economic life," such as consumption, factors and means of production, labor, value, prices, cost, exchange, money as a circulating medium, and exchange value of money. The principal focus of the book is advancing the idea that change (economic development) is the key to explaining the features of a modern economy. Schumpeter emphasizes that his work deals with economic dynamics or economic development, not with theories of equilibrium or "circular flow" of a static economy, which have formed the basis of traditional economics. Interest, profit, productive interest, and business fluctuations, capital, credit, and entrepreneurs can better be explained by reference to processes of development. A static economy would know no productive interest, which has its source in the profits that arise from the process of development (successful execution of new combinations). The principal changes in a dynamic economy are due to technical innovations in the production process. Schumpeter elaborates on the role of credit in economic development; credit expansion affects the distribution of income and capital formation. Bank credit detaches productive resources from their place in circular flow to new productive combinations and innovations. Capitalism inherently depends upon economic progress, development, innovation, and expansive activity, which would be suppressed by inflexible monetary policy. The essence of development consists in the introduction of innovations into the system of production. This period of incorporation or adsorption is a period of readjustment, which is the essence of depression. Both profits of booms and losses from depression are part of the process of development. There is a distinction between the processes of creating a new productive apparatus and the process of merely operating it once it is created. Development is effected by the entrepreneur, who guides the diversion of the factors of production into new combinations for better use; by recasting the productive process, including the introduction of new machinery, and producing products at less expense, the entrepreneur creates a surplus, which he claims as profit. The entrepreneur requires capital, which is found in the money market, and for which the entrepreneur pays interest. The entrepreneur creates a model for others to follow, and the appearance of numerous new entrepreneurs causes depressions as the system struggles to achieve a new equilibrium. The entrepreneurial profit then vanishes in the vortex of competition; the stage is set for new combinations. Risk is not part of the entrepreneurial function; risk falls on the provider of capital. (TNM).
Author: John Maynard Keynes
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Author:
Publisher:
ISBN:
Category : Budget
Languages : en
Pages : 530
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