Re: [OPE-L] The ideology of capitalist decline and decadence

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
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.

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