Home > Economics - General > Internet made me a radio star? — Crooked Timber

Internet made me a radio star? — Crooked Timber

December 15th, 2010

I’m going to be on the Peter Schiff Internet Radio show, Thursday at 6:35 PM EST, talking about Zombie Economics. It should be interesting. A while ago, I had quite an interesting chat with Russ Roberts, whose views are, I think, fairly similar to Schiff’s, so i’m hoping for some creative interaction on the Keynesian and Austrian approaches to thinking about financial crises and depressions. I planned a full scale post on this, but haven’t had time yet.

Posted via email from John’s posterous

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  1. Glenn Condell
    December 15th, 2010 at 14:49 | #1

    I admire Schiff – it was an interview George Negus did with he and Steve Keen in mid 2008 that turned the coming GFC from a minor hobby into a fulltime occupation for me – but he has ingested too much American economic Kool Aid for me to go all the way with him, so to speak.

    This impression came mainly from an interview he recently did with Robert Creamer:

    http://maxkeiser.com/2010/11/29/peter-schiff-in-the-land-of-economic-lilliputians-amazingly-robert-creamer-clings-to-the-idea-that-you-can-run-an-economy-that-is-100-demand-and-0-production/

    Like Mish Shedlock and several other sharp analysts over there, he has an inbuilt mistrust of government and of collective solutions generally. Everything would be fine if the government just abolished business taxes (and in Shedlock’s case, destroyed union pension and pay agreements) – so that funds for investment were freed up, thereby increasing employment, which would drag demand back up to levels high enough for recovery. It’s a variant of trickle-down in a way. Problem is that, as TARP has shown, those with the funds to invest in times like this often prefer to hoard and repair balance sheets (and pay indecent bonuses). The more the capital is shoved upstream, the less velocity it has.

    He has no truck with the idea that spending should be targeted to low income earners to guarantee increased aggregate demand, or the MMT accounting identity notion that fiscal deficits in a fiat money economy are perfectly OK if managed sensibly. No, he agrees with the deficit hawks that massive austerity cuts must be made to make government smaller and again I suppose discounts the theory that such austerity is counterproductive in that it reduces demand.

    In short, he seems to me (admittedly something of an economic illiterate) to think that supply must come before demand, when the opposite seems like basic common sense.

    Schiff worked for Ron Paul, who I have a helluva lot of time for (unlike his dopey son), but Paul is a full-on small government libertarian, a strain of American political thought I have always found a bit loopy. It’s the sort of philosophy only people ensconced inside dominant powers can have and it fatally impairs some of the work of other good commentators such as Justin Raimondo. It’s romantic but utterly mad to imagine that we will be able someday to return to the sort of ruggedly individual, government-free self-reliance these people imagine used to obtain in the olden days.

    Schiff may not be labouring under the weight of shredded economic shibboleths as many others are, but perhaps he has some political baggage that prevents him from taking a truly inclusive wider view.

    Will try to have a listen John.

  2. Alice
    December 15th, 2010 at 18:33 | #2

    I think there are some areas the Austrians and Keynesians align.

  3. Alice
    December 15th, 2010 at 18:36 | #3

    They would both come down hard on banks.

  4. Alice
    December 15th, 2010 at 18:58 | #4

    @Glenn Condell
    Glenn says ” It’s a variant of trickle-down in a way.”

    Well trickle down has proved itself an abject afilure after all the freedoms and low tax already goven to business, with the surplus chasing speculative investments and resulting in a major crash.

    Trickle down = a monumental con on ordinary households, a monumental con for Mums and Dads spending (best to keeping the super rich paying super taxes – if they dont, we are all ruined). Either the super rich want to live in a civilised society or they dont.

    Cant have it all their way.

    Trickle down has had its day in the sun and its all over. If its not it will destroy the financial system.

  5. paul walter
    December 15th, 2010 at 20:11 | #5

    Alice, beautiful to see you again.
    I noted you engaged in what appeared to be a most sustaining conversation with yourself here, I think over the weegend?
    Your answers were good, but I do think you outsmarted yourself, once.
    JQ, Internet may have made you a radio star, but dont forget,
    “Vid-eo killed the rad-io star” ,
    So watch out for low flying electrical appliances chucked from high rise apartments, on your extensive travels.
    Note you mentioning elsewhere, Xmass Island, a cold shiver goes down my spine. Looking thru the quick comments at the ’tiser, not much sign of sympathy on the ground for them either, in some cases.

  6. Alice
    December 16th, 2010 at 16:23 | #6

    @paul walter
    Shocking Paul – answering ones own posts on the weekend is always a dead giveaway!.

  7. Alice
    December 16th, 2010 at 16:40 | #7

    I was begging for fresh sand – so much more happening on Privatisation Graft road especially in NSW now. Electricity sold – for a bad price and this when those Bs know no-one wants it and no-one wants them. Really banks (and credit ratings agencies) and executives and shareholders of sham consortiums have just got too big for their boots and its not doing nations any good at ‘all at ‘all as the irish would be saying right now.

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