From: Paul Cockshott (wpc@DCS.GLA.AC.UK)
Date: Tue Mar 14 2006 - 15:52:42 EST
It is an interesting paper, the Levy institute ones usually are. It assumes certain things which may seem a constant in the US today but are not invariant. In particular it assumes that the private sector will be in net financial balance. Why does the US household sector not run a financial surplus? If it did that would partially finance the govt debt and reduce the current account deficit. At other times and places the household sector can run a large surplus. I remember that in the late 70s in the UK it was running at 17% of household income. -----Original Message----- From: OPE-L on behalf of Rakesh Bhandari Sent: Tue 3/14/2006 4:52 PM To: OPE-L@SUS.CSUCHICO.EDU Subject: Re: [OPE-L] The ideology of capitalist decline and decadence Galbraith's paper on the fiscal facts could be read as a counter to the doom mongering about the dollar. I'd be interested in any comments on it. http://www.levy.org/default.asp?view=aboutlevy_staffprofile&profileID=jgalbraith&showType=&showAuthor=jgalbraith rb
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