1/ A thread on Art Laffer, his ridiculous island analogy, and the real world, mass suffering caused by both.
[#LearnMMT v.1]
[#LearnMMT v.1]
2/ If there are two farmers on an island and NOTHING ELSE, then what does unemployment even mean? Where does the "employed" farmer get that money? What purpose does money serve?
In this scenario, the farmers help each other to survive, or they die.
In this scenario, the farmers help each other to survive, or they die.
3/ So the successful farmer can grow his crops just fine but he won’t give any food to the unsuccessful farmer because the latter doesn’t have any "money"? Money is an even more meaningless concept when you imagine an island with ONE farmer & nothing else.
4/ "Imagine a scenario where [critical element] doesn’t exist. Without [critical element], the people in my scenario must do without the benefits [critical element] provides. It sucks. Therefore, I conclude [critical element] doesn’t work. I am very smart."
5/ The question can not be, "How can we provide healthcare for all?"
The question must be, "How can we not try?"
Because otherwise, we must choose who lives and who dies.
We can provide* for all.
(*Stop suffering, as long as it does not cause inflation.)
The question must be, "How can we not try?"
Because otherwise, we must choose who lives and who dies.
We can provide* for all.
(*Stop suffering, as long as it does not cause inflation.)
6/ All nations, no matter their capabilities or resource availability, can provide healthcare, jobs, education, dignified retirement, livable environment for all. They may need to provide less than richer nations, but of course they can provide for all.
7/ The primary justification for trickle down economics is Art Laffer's Laffer Curve. Trickle down economics works as well as Laffer’s curve, which works as well as does his logic in his island analogy.
Here’s a (non-#MMT) look at the Laffer Curve: thebalance.com/trickle-down-e…
Here’s a (non-#MMT) look at the Laffer Curve: thebalance.com/trickle-down-e…
8/ And yet decades of real world policy are based on Art Laffer's thinking.
9/ Real world, mass suffering has been created by well reasoned decisions based on flawed models. A great example of a flawed model is the Laffer Curve.
10/ Can’t say I disagree.
11/ Lol.
12/ A real economist chimes in.
13/ For an island analogy that actually reflects reality, read the 1000 Castaways by @clintballinger.
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15/ Credit:
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18/18 To #LearnMMT in general, here is a good place to start.
