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The Humphrey-Hawkins Full Employment and Balanced Growth act signed into law by President Jimmy Carter on October 27, 1978, tried to translate into practical reality the right of all Americans to get useful paid employment at fair rates by embracing Keynesian economic theory. If someone magically has a right to work, someone must necessarily lose…

Public Debt US vs Greece

The Keynesian “growth” model as we know it over the last four decades consist of debt funded consumption backed by the ever increasing balance sheet of the central bank. Right wing nutcases believe households should be the ultimate bearer of that debt, while spendthrift statist on the left prefer government to be the main conduit…

Sectoral Balance 1

In 1999 Wynne Godley penned “Seven Unsustainable Processes” where he, based on a new-Keynesian concept of sectoral financial balances, predicted the forthcoming recession. Godley pointed to seven unsustainable processes within the US economy that rendered it vulnerable to sudden shocks. More specifically, Mr. Godley found that the US boom of the 1990s was based on;…