Assume that generally MV=PY, where M is money supply, V is velocity of money, P is the price level, and Y is real GDP. Now assume that we have a bitcoin currency with a fixed money supply (M) and the velocity of money (V) is also constant. If real GDP (Y) increases, the only way… Continue reading Bitcoin + Growth = Deflation
Author: Matt Bruenig
Policy Shop: Job Training Is Not the Answer
New post at Policy Shop. Excerpt: You cannot fix a problem caused by there not being not enough available jobs by training people to do jobs. It won’t work. To be sure, it would help some people get jobs in areas where there not enough workers with the right skills, given that many employers say… Continue reading Policy Shop: Job Training Is Not the Answer
Why I Tend to Disbelieve Employers
So some employers say that they cannot find qualified workers. Maybe that is the case in some situations, but there is a basic problem with the notion that this is holding things back. That basic problem is that if you cannot find qualified workers, you can find unqualified workers and make them qualified. If there… Continue reading Why I Tend to Disbelieve Employers
Just Give Everyone Food Stamps
The right-wing is getting riled up about food stamps, again. Sean Hannity even dedicated an entire hour to the food stamp program last week, with predictable messaging about how it is exploding and a scourge on the country. While the purpose of this manufactured outrage is to get rid of or dramatically shrink the food stamp program,… Continue reading Just Give Everyone Food Stamps
Policy Shop: Cash Benefit Programs Are Not Really Government Spending
New post at Policy Shop. Excerpt: Cash benefit programs are simply distributive institutions: they, along with our other economic institutions, determine which individuals get to spend money and how much. The government does not spend money on a cash benefit program, it just channels it to someone who spends it. The only coherent objection that… Continue reading Policy Shop: Cash Benefit Programs Are Not Really Government Spending