51: MMT's Bill Mitchell - Unemployment, Surpluses and Investments


Manage episode 273280104 series 1770598
By [i3] Podcast. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.
Professor Bill Mitchell is one of the key figures behind the Modern Monetary Theory, a term he coined himself. We talk to Professor about the impact of the pandemic on economies, what can be done about the sky-high unemployment rates and why ultimately unemployment is a political choice. Overview of Podcast with Bill Mitchell, University of Newcastle 1:00 You coined the term ‘Modern Monetary Theory’? 3:00 Starting tto blog: http://bilbo.economicoutlook.net/blog/ 5:00 More interest from the investment industry 6:00 The Australian economy has collapsed 7:00 Most of the collapse could have been prevented 9:00 We are about $100 bn short of government spending 10:00 Not against the lockdowns 12:00 Much attention goes to MMT’s comments on deficits, but what it says about budget surpluses is much more interesting: it detracts from economic activity. 15:00 What is the role of fiscal policy? It is to ensure that spending in the economy is sufficient to maintain production at levels which will provide jobs for everybody. 16:30 To run a deficit is to undermine economic activity. That is okay in the case of Norway (where the economy runs hot). 17:00 A surplus not only undermines economic activity but it also destroys private sector wealth 22:30 Can we solve unemployment? A very pertinent problem at the moment. 23:30 Mass unemployment like we have today is a political choice 27:00 The Green New Deal or Green Transition. 28:00 If I was the government I would be embarking on large scale investments in renewables, transition technologies, in speeding up the process of carbon elimination. 28:30 Why not use the Hunter Valley culture of high productivity manufacturing to build a renewable energy hub for Australia and create jobs in manufacturing, R&D, et centera. 31:00 What do you want people to take away from MMT? 34:00 Does working from home distort the measuring of worked hours? 35:30 There is a massive distortion in economic data. This is not to blame the statistic agencies, but it is just very hard to measure right now.

53 episodes