| The Free Enterprise Cartoon Bears discuss quantitative easing and unemployment. The Maynard Keynes and the Ben Bernanke, take some heat. Bernanke said unemployment was one of his reasons to use quantitative easing (inflation). He has not explained how or why it should work now, when it didn't work in the 1970's, when both inflation and unemployment went up. The "sticky wages" of the Maynard Keynes do not address the real problem, which is decreased purchasing power, caused by the huge household debt of about $14 Trillion' plus the huge national debt of about $14 Trillion. Made with Xtrnormal Movie Maker. *** 1) Stagflation, 1970s Style www.investopedia.com 2) Sticky Wages, Sticky Prices and the Keynesians 12-15-10 economix.blogs.nytimes.com 3) Household Sector: Liabilites: Household Credit Market Debt Outstanding (CMDEBT) research.stlouisfed.org 4) Federal Government Debt: Total Public Debt (GFDEBTN) research.stlouisfed.org 5) Bernanke vs. Sticky Wages www.dailyreckoning.com.au 6) The General Theory of Employment, Interest and Money John Maynard Keynes (1936) www.marxists.org Chapter 17 has some sticky wages stuff: "Thus those reformers, who look for a remedy by creating artificial carrying-costs for money ... have been on the right track; and the practical value of their proposals deserves consideration. ... I conclude, therefore, that the commodity, in terms of which wages are expected to be most sticky, cannot be one whose elasticity of production is not least, and for ... |