I am writing this basic explainer post by request. The primary goal is not to criticize trickle-down economics, but to actually explain what it is. To do that, I think it is helpful to first explain what it is not. For some reason, lay advocates of trickle-down economics often wrongly describe it as a demand-side… Continue reading On trickle-down economics
Author: Matt Bruenig
Leftist desert theory
In my last post, I discussed the desert theory justification for socializing finance. According to desert theory, individuals should receive compensation equal to their economic contribution. The finance industry violates this principle in a variety of ways. Most notably, it allows owners to capture compensation greater than their economic contribution at the expense of workers… Continue reading Leftist desert theory
Why socialize finance?
I was somewhat taken aback by the negative reactions to Seth Ackerman’s recent piece about socializing finance in the Jacobin. I reviewed his idea positively, but folks on twitter had a different take. The detractors asked, among other things, what problem does this solve? Socializing financial gains does not change working conditions or compensation and… Continue reading Why socialize finance?
Socialize finance!
Seth Ackerman has a fantastic piece (a primer if you will) in the latest Jacobin. At the heart of the piece is an explanation of the economic calculation problem, and the challenge it poses to the realization of socialism. For those interested in this sort of thing, the discussion is pretty standard, but still worth… Continue reading Socialize finance!
The misleading world of student debt and college cost statistics
As a frequent writer on student debt and college cost issues, I have become acquainted with a standard set of misleading and useless statistics. Here is a handy guide to the most frequently used. $1 Trillion Student Debt In spring of last year, the Consumer Financial Protection Bureau estimated that US borrowers collectively held $1… Continue reading The misleading world of student debt and college cost statistics