Re: Does debt matter

[Hyman Blumenstock <hystock@xxxxxxxxx>]

Harry Veeder wrote:
>
> Harry:
> >> ...  A "high" national debt/GDP ratio pushes national
> >> (aggregate) demand ahead of national (aggregate) supply. Inflation is
> >> a natural consequence of demand exceeding supply. Inflation says,
> >> "restrain your demands!".
>
> Hyman:
> >Is it not obvious that in view of our high rate of unemployment that
> >the reverse is true, that Supply has far exceeded Demand, for at least
> >the last century?
>
> I don't think it is obvious because I don't think it is accurate to say
> there is a high rate of UNemployment. I think it is more socially
> accurate to say there is a high level of UNDER employment with an associated
> problem of OVER employment.
>
> This of course requires new theories of under and over employment to
> supplement the traditional theories of voluntary and involunatry
> unemployment.
>
> Any takers? (I think Per G. is working on a theory of under employment.)
>
> >If we indeed had a short Supply, and an unfulfilled
> >Demand, would that not reduce Unemployment, the reverse of current
> >conditions?
>
> No, I don't think it would necessarily resolve the employment problem. In
> fact I don't think governments can solve it. People should reorganize
> the nature of paid work on their own.   The most important assistance
> governments can provide is to protect and stregthen the education, health
> and welfare systems.

Is this not precisely the area wherein the government can totally
alleviate the problem?  Create new jobs beyond mere GDP, of which we are
over supplied, by ordering the private sector to create new work, on a
cost plus basis, in Restoring the Environment, Space Programs, Pursuit
of Knowledge, Fixing everything that needs fixing, Anything, until there
is no one left unemployed.  Fund it all with Deficit Spending, to
alleviate the unconscionable Deficit of a deliberately deficient budget.

No "debt" matters not one iota, except to keep a bunch of accountants
employed until more useful work can be created for them.

Hyman
>
> > Is not "inflation" a now deliberately controlled condition
> >of Price Fixing and arbitrary adjustment by the Federal Reserve?
>
> No, I don't think so.
>
> Harry Veeder