Re: Voice of the people

["Gary Santos" <evs@xxxxxxxxxxxx>]

        Speaking to Liu's comments -- I would rather
    attribute overcapacity  [which is a problem only
    IF poor people's income is not raised to allow
    them to buy what they need]  to income distri-
    bution within a country and internationally,
    than to savings primarily.

        It is the increasing disparity in wealth that
    exacerbates overcapacity even making it inevitable.
    Whether money as state credit is a solution is
    another question.

    --------------------end Santos ---------------------------

    Gelles replies: I like Santos acceptance of overcapacity
    in hope of its use to supply poor people in need of more
    purchasing power.

    He should address the general thought of Sanders that
    Greenspan is too focused on prices instead of basic
    human, national and world needs. Then he should chose sides between
Gelles and the rest of PKT:
-------------------------------
John,

My understanding of the state credit concept is that present spending will
create net value, hence, any "over issuance" today can be recouped by future
returns. I have absolutely no problem with that. However, we all know that
between the idea and the practice is a wide chasm where all this spending
can end up, i.e. in a hole. The concept (and all the other approaches that
entail government spending in deficit) will have to address in detail
exactly how money is to be spent. Spend it into a hole and the experiment
fails. I have asked this question in the forums many times.

I would like to think that there are really no sides. Classical Keynes and
the discussions we have had in all the forums have one thing in common --
deficits. We differ in the underlying concept and in some details but find
ourselves walking the same road. It is a journey with good company, I must
say.

My best,

Gary