Debunking Economics - the podcast

Governments the world over are spending like crazy to try and steer their economies through the COVID-19 crisis. Whether it’s the fiscal policies of the government or the monetary policies of the central bank, it all still revolves around using money that wasn’t around a few months ago. So how much of what is happening is described by Modern Monetary Theory – and how much more could be done if we accepted that MMT is the way things should really work. And do central banks, or treasurers really understand it? Phil Dobbie asks Prof Steve Keen whether MMT can solve the COVID-19 debt problem? Hosted on Acast. See acast.com/privacy for more information.

We’re travelling less, staying away from the office, and spending more time at home. In the short term, it seems, those who still have money are spending a slug of it doing up their house, or moving to a bigger one, with outdoor space. House prices in the UK are growing much faster in Scotland, Wales and regional England than they are in London, for example. So, will escalating house prices be one of the consequences of COVID cocooning – and does that make the economic impact of the virus even worse than it is already? Questions Phil Dobbie puts to Prof Steve Keen in this week’s Debunking Economics podcast. Hosted on Acast. See acast.com/privacy for more information.

The agreement by EU members to issue grants and loans to member states suffering the most from COVID-19 was a turning point for the union. Whilst US politics sees continued bickering on the size and form of a stimulus package, across the Atlantic a diverse range of countries have come together to agree a way forward. Is this a major turning point for the EU. Come we see fiscal and monetary union that could pave the way for the United States of Europe? It’s a question Phil Dobbie puts to Steve Keen in this week’s Debunking Economics podcast. Hosted on Acast. See acast.com/privacy for more information.

The UK’s Home Secretary Priti Patel has revealed the government’s plan to curb migration to the UK, with a universal points system. It’s going to be hard for anyone to migrate to Britain without a job lined up that pays over £25k. Phil Dobbie asks Steve Keen whether it’s a good thing to set a minimum wage for migrants. After all, having we been exploiting workers, paying too little for jobs the locals aren’t prepared to do? Or do these low paid jobs impact the rate of pay for all workers, whatever they do for a living? Hosted on Acast. See acast.com/privacy for more information.

Remember climate change? Believe it or to, even with COVID-19 dominating our consciousness, the environment is still a thing. A new report by NGFS - a voluntary group of central bankers concerned about the environment – reckons the world’s global GDP could fall by 25 percent by 2100 if we do not do more to reduce greenhouse gas emissions. Whilst their intent might be right, Steve Keen is concerned that their modelling is wrong. Like most of the economics profession there is no application of systems thinking. Models are too simplistic, ignore tipping points and assume a closed system that doesn’t account for vital external variables. He says the worst of humanity is dragging us into a crisis, exploiting the worst of human behaviour – that we don’t think it will personally affect us. Hosted on Acast. See acast.com/privacy for more information.

Income tax, sales tax, council tax, car tax, capital gains tax, inheritance tax – there’s just so much tax! This week Phil Dobbie talks to Prof Steve Keen about the whole idea of taxation. For many it’s simply a form of revenue raising for governments, but once you accept that governments can create their own money in their own currency, the role of taxation changes. This week we look at the role tax plays in minimising income disparity, and the importance it should play in Boris Johnson’s quest to ‘level up’ the economy. And thanks to Ed Twohig for suggesting the topic. Hosted on Acast. See acast.com/privacy for more information.

The world has become dependent on trade with China, so much so that . We’ve become so we’ve been prepared to overlook human rights violations. But is that about to change? President Trump has managed to convince world leaders to ditch Huawei from their telecoms networks on fears that their equipment could be snooping on us. But, could it also be that Huawei makes twice as much money as the US’s Cisco, the world’s next biggest telecommunications equipment provider? In this week’s podcast Phil Dobbie asks Prof Steve Keen whether the world can do without China, and are hypocritical trading with them if we believe their behaviour is that bad? Hosted on Acast. See acast.com/privacy for more information.

Boris Johnson has talked frequently about levelling up the UK economy – bringing the wealth of the more deprived areas so they are closer to the wealth of the more affluent areas, without the affluent folks having to pay for it. This week, Phil Dobbie asks Steve Keen whether that’s possible, or do you have to level down – take some of the wealth from the high earners to distribute to the more deprived regions? They discuss growth poles, carrot and stick measures and the importance of minimum wage and local council funding. The answer for Boris is in this podcast, let’s hope Dominic gives it a listen. Hosted on Acast. See acast.com/privacy for more information.

Inevitably, as governments spend more and more money to help their economies navigate through the COVID-19 crisis, the questions inevitably being asked is, how will all this be paid for? The assumption is, either governments will have to cut back on spending, or taxes will have to be increased. Few economists or politicians suggest that the debt is never repaid. In this edition of the Debunking Economics podcast Phil Dobie talks with Prof Steve Keen about how central banks, like the Bank of England, are creating money to cover this extra spending. Isn’t there a danger that if it gets out of hand we’ll end up like Zimbabwe, or Germany after the first world war? Once a central bank has created money to cover government debt, can it ever really be wound back? Hosted on Acast. See acast.com/privacy for more information.

Donald Trump is pushing ahead with his protectionist agenda, and possibly with good reason. There were over 17 million manufacturing jobs in the US in 2000, in the 10 years that followed, China joined the WTO and the US lost about a third of those jobs. In this edition of the Debunking Economics podcast Phil Dobbie asks Steve Keen whether protectionism is valid in this day and age. What of the conventional philosophy that trying to do everything locally avoids economies of scale and pushes prices up for everyone? Steve’s argument, you need a complex economy to produce efficiency and innovation. It’s the lack of protectionism that has stymied growth in many economies. But there are exceptions, especially for an Elon Musk fan boy like Steve! Hosted on Acast. See acast.com/privacy for more information.

Furloughed workers, self-employed grant schemes, increased unemployment benefits, low interest loans, quantitative easing – governments and central banks are pulling out all the stops to try and offset the economic consequences of COVID-19. So who is doing it well? Phil Dobbie asks Prof Steve Keen to evaluate some of the programs implemented around the world – which ones are effective, which help the finance sector but do little for the broader population, and is there enough of it given the size of the impact? Governments are now trying to pull back on stimulus programs, even though infections continue and unemployment is in danger of rising still higher? Will we have learnt anything at the end of this experience about how the economy really works? Hosted on Acast. See acast.com/privacy for more information.

The world is facing the greatest economic downturn of our time. In the US at least 15 million more people are unemployed than just a few months ago. There are fears of a second wave and, even if it is contained and a cure is found, the chief scientist at the World Health Organisation is now saying it could take up to five years to get the virus under control. Meanwhile, as governments inject trillions of dollars of stimulus into the economy, share prices are reaching all-time highs. How can that be? How can the markets behave as though we were in the midst of the best of times? Phil Dobbie talks to Prof Steve Keen about what’s really driving share prices ever upwards. Hosted on Acast. See acast.com/privacy for more information.

The US might not be in a great place right now, with the riots, a narcissistic president and the COVID-19 virus taking a long time to slow down, yet, for generations it has been the country the world looks to for opportunity and innovation. Look at almost all the world’s newest big companies – Microsoft, Apple, Google, Twitter, Tesla – and they all hail from America. It claims a huge proportion of the world’s inventions and innovations. On that basis, shouldn’t we still be looking up to America? What is it they are doing that the rest of us are not? Hosted on Acast. See acast.com/privacy for more information.

Mental health is an issue that impacts a growing number of people, not helped by the COVID 19 lockdown. Divya Dhami, an undergraduate student from the University of British Columbia, says the economy is paying for it in terms of reduced productivity. Money investied in fixing the problem would be recovered through increased GDP. But isn’t GDP part of the problem? Phil Dobbie asks whether the wellbeing index is a better measure of government success? Steve Keen suggests debt is a significant part of the problem – in the good old days students went to university to learn and it was a relaxing experience. But there are behavioural issues too – like addiction. Just how far do we want the state to intervene? Hosted on Acast. See acast.com/privacy for more information.

Governments everywhere have been pledging billions of dollars – in some cases, trillions – to help their economies navigate through the COVID-19 pandemic. Much of it has been spent supporting businesses and helping to sustain people’s income. But what happens when we come out the other side. Quantitative easing is now widespread, but there’s still an expectation those central ban purchases will be wound back. So what does that mean for the post-pandemic economy? A question Phil Dobbie puts to Prof Steve Keen in this edition of the Debunking Economics podcast. And are there countries who can’t run up debts? Or companies or industries that can’t operate effectively with the potential debt they have been forced to build up. Just how long will we be paying for the last few months? Hosted on Acast. See acast.com/privacy for more information.

There are all sorts of theories on why there is such a huge discrepancy in income in society, and why it differs from one country to the next. For example, why does the USA have a far worse Gini index (41.4) than Japan (32.9)? Whilst there’s been lots of debate around education, ability, inheritance and opportunity, Blair Fix at York University in Toronto, has concluded that society’s hierarchy is really the overarching influence. If he’s right, that means regulation is the only way to stop income becoming so divided. Listen in to catch up on Blair’s work, in this three-way discussion with Phil in the UK, Steve Keen in Thailand and Blair in Canada. Hosted on Acast. See acast.com/privacy for more information.

Economists tend to see income as related to the value labour adds to a product or service. By that rationale, during this crisis, nurses helping save lives contribute only a fraction of the CEOs who are watching their companies fall apart. Or is something else driving inequality? It’s largely the growth of the rentier class, says Steve Keen. Phil Dobbie asks whether technology could also be making thinks worse, not better. Is a skilled carpenter forced to charge less because of the availability of mass produced pre-packed furniture? And how can lots of office jobs, which create nothing, pay more than jobs that add directly to the value of something? Even if we fully understand the causes of inequality, will we ever rid ourselves of it? Hosted on Acast. See acast.com/privacy for more information.

Companies and governments are racking up massive debts to cope with the impact of COVID-19. Apart from grants for a month or two of partial salaries, the approach has largely been to extend easy short-term credit to those people and businesses struggling to survive. We can expect, once an initial amnesty on repayments has passed, many of these companies will go to the wall, adding to the massive peak in unemployment. How can economies grow when individuals are piled high in debt and governments are forced to use austerity to repay their massive spending programs. Steve Keen has argued that debt needs to be written-off, even before the Corona crisis. Now seems like the right time for society to discuss the benefits of a debt jubilee. The only downside seems to be a significant reduction in the size of the finance sector. Can we live with that? Or, perhaps they can shift their emphasis to more productive investments. Hosted on Acast. See acast.com/privacy for more information.

In some parts of the world politicians, investors, business leaders and economists are behaving as though the Corona virus is almost eradicated. There are talks of easing up on restrictions, even though it’s only through the lockdown that infection rates have been held back. If, instead, we believe epidemiologists, who tell us this thing is with us for some time, what will life be like on the other side. Phil Dobbie asks Prof Steve Keen for his views on how our lifestyle and ways of business will change. Steve says it’s the beginning of a fundamental change in the way we interact with our planet. Hosted on Acast. See acast.com/privacy for more information.

He has been called the ‘Father of Economics’, but how much of what he talked about and wrote about has stood the test of time? Have we fully understood his ideas of free trade and the invisible hand? And why is a man, who cared so much about the plight of the poor, now seen as the poster boy for the right and those with money to protect? Phil Dobbie talks to Prof Steve Keen about the work of Adam Smith – the good and bad – on this episode of the Debunking Economics Podcast. Hosted on Acast. See acast.com/privacy for more information.

Billions of dollars are being pumped into economies the world over to protect economies from COVID-19. Much of it comes in the form of government fiscal stimulus, funded through bond issuance. Some of it involves businesses taking up further debt themselves, through low interest loans. Nobody seems to be pursuing helicopter money and while there’s some dabbling on the idea of universal basic income in the US, the money is peanuts compared to average expenditure. In this special free podcast, Phil Dobbie asks Steve Keen whether enough is being done to facilitate a rapid economic recovery, and who will be the beneficiaries – the business sector or the finance sector? Hosted on Acast. See acast.com/privacy for more information.

Putting the Corona virus aside for a moment, on this week’s Debunking Economics podcast Phil Dobbie talks to Steve Keen about our use of energy. He raises the dilemma of energy prices – if they are too low, usage goes up, expanding our ecological footprint. If you try to counter that by artificially inflating prices, it’s the poor who suffer – as evidenced by the riots in Paris. So, how do we limit our appetite for energy, and can we do it without destroying the world economy? And, importantly, can we do it when power creation and distribution is largely in the hands of private companies? Hosted on Acast. See acast.com/privacy for more information.

The EU is debating whether funding to protect economies from the ravages of the Corona virus should come from centrally issued Corona Bonds, or from country-specific debt. In short, should Italy and Spain pay the price of their own misfortune and be landed with the bill to pay off for years to come, whilst totally sovereign nations, like the US, simply issue bonds which can be paid for by the central bank and for which the government has no intention of ever repaying. In this edition of Debunking Economics Phil Dobbie asks Prof Steve Keen whether the inflexibility of the Euro at a time like this will mean countries like Italy will no longer want to be part of it. Could this crisis expedite the demise of the Euro, and, perhaps, the EU itself? If so, is that a good thing? Hosted on Acast. See acast.com/privacy for more information.

Italy is getting swamped in corona virus cases, whilst China claims the only new infections now come from visitors from overseas. Donald Trump has gone from calling it a hoax to warning that 200 thousand Americans dying will be the best possible scenario. The UK has seen its death rate step up again today, whilst Germany has seen relatively few deaths and in Sweden folks are still eating out at restaurants. In this FREE edition of the Debunking Economics podcast, Phil Dobbie asks Prof Steve Keen which countries are handling the crisis the best, not just to contain the spread, but also to prepare their economy for the recovery. Hosted on Acast. See acast.com/privacy for more information.

How did we allow the spread of the Caronavirus happen? Why were governments and health services so unprepared? In this week’s Debunking Economics podcast entrepreneur and venture capitalist Nick Hanauer joins Phil Dobbie and Steve Keen to look at the inevitability of this crisis. Nick says it’s all down to the preoccupation with small government. How do we solve it? Massive government spending and the creation of new money. What have we learnt? Steve hopes it’ll enable us to focus on the bigger issue, what we’re doing to the planet. Hosted on Acast. See acast.com/privacy for more information.

One of the questions we might be left with after the virus has left us, will be have we become too reliant on international supply chains. Another might be, are we just too reliant on stuff? If we are to look after the planet do we need to lose our appetite for goods that we keep for a short while then throw away. Why not fix them? Is it time for a repair-based economy? And if so, how do you implement it? Phil Dobbie talks to Prof Steve Keen about the circular economy, hours before he fled Europe to escape the worst of the Corona virus. Hosted on Acast. See acast.com/privacy for more information.

Central banks have cut interest rates, some governments have introduced stimulus measures. But still the disease spreads and livelihoods are put at risk. In today’s extra (free) edition of the Debunking Economics podcast Prof Steve Keen argues that stimulus measures are nowhere near enough, and serious sums of helicopter money need to be added to everyone’s bank account. He has been arguing for some time that there’s a need for a debt jubilee to get the economy moving, and now might be the time to do it, starting with the issuance of zero interest debt jubilees and personal bank deposits to cover mortgages and other outstanding commitments. Hosted on Acast. See acast.com/privacy for more information.

We know what makes up the measure of gross domestic product – it is increases in private or government spending, increases in investment or an improvement in your balance of trade. But are those factors all driven by improvements in productivity driven by technology gains? This week on the Debunking Economics podcast Phil Dobbie asks Prof Steve Keen whether technology improvements are the only real driver of economic growth? Can the economy continually grow without it? Hosted on Acast. See acast.com/privacy for more information.

The manufacturing numbers from China at the weekend showed how hard the sector was hit by the lockdown in Wuhan and neighbouring districts. In today’s Debunking Economics podcast Prof Steve Keen says the rest of the world needs to prepare for a similar strategy, that will see production dive as workers don’t show up and consumers don’t go shopping. It seems likely that central banks will cut interest rates, but that won’t stop businesses going bankrupt. So what is the correct policy response? Hosted on Acast. See acast.com/privacy for more information.

The US government is now running a debt exceeding $23 trillion. When Donald Trump cam rot office it was already at $18.2 trillion. Regular Debunking Economics listeners will know the ability to rack up debt is a privilege for running the world’s reserve currency. There will always be demand for US dollar bonds. But why do so many countries seek US bonds, and how long can this imbalance continue for? Will there be a time when the US dependence on government debt will come back to bite it – or can we just sit and watch it grow? And what about China – can they grow debt ad-infinitum? Hosted on Acast. See acast.com/privacy for more information.

The multiplier is a basic concept of economics. If you come across some money and spend it, the person you spend it with then spends a proportion of it again, the recipient of which also spends some of it. In this week’s podcast Phil Dobbie talks to Prof Steve Keen about how savings and taxation influence the multiplier, including how different sectors influence the speed of the multiplier. Plus, the commonly held assumption that if money starts circulating too quickly then it’ll assume less value. And what about those who want to accumulate wealth – do they stop the multiplier working? Hosted on Acast. See acast.com/privacy for more information.

Central banks started life as clearing houses and have evolved into instruments to, supposedly, protect the economy. But with interest rates at all time lows, often in the negative, have they gone as far as they can go? And how can they control the economy when governments can implement a fiscal approach at odds with monetary policy. Is it time to consider that Central Banks have a fuller role in the management of the economy, leaving governments to consider ow best to spend the money allocated to them? Or is that a breach of democracy? Phil Dobbie discusses the idea with Prof Steve Keen. Hosted on Acast. See acast.com/privacy for more information.

Artificial intelligence is everywhere it seems, except perhaps in parliament and in quite a few newspapers. But what does it mean for the future of work. Conventional economists would argue that people freed from their jobs will be able to pursue other productive outputs, helping to grow the economy still further. Phil Dobbie asks Prof Steve Keen whether that’s likely to happen Or are we facing the danger of structural change that will lead to widening income disparity. And what can we do about it, other than becoming laggards? Hosted on Acast. See acast.com/privacy for more information.

Today Phil Dobbie talks to Prof Steve Keen about Milton Friedman’s concept of nominal value ,and how this runs counter to the argument that governments can create money to give the economy a sugar hit. The theory is, we’ll realise that the extra helicopter money has devalued the currency so, after an initial burst of growth, we’ll realise that we’re actually no better off. So where does this theory go wrong? Other than the fact that most money is created by commercial banks, not governments extending their debt. Hosted on Acast. See acast.com/privacy for more information.

The world leaders met at Davos and discussed climate change. Greta Thunberg told them they weren’t doing enough, even though the President of the United States promised to plant some more trees and warned against the doomsayers with their predictions of the apocalypse. So, will there be an apocalypse. Phil Dobbie asks Prof Steve Keen, arguing that he could be seen as one of the lefty Marxists who is using the climate change agenda to unsettle capitalism. And if we are to avoid the apocalypse, and planting trees isn’t enough, what should we be doing. What should have been said at Davos? Hosted on Acast. See acast.com/privacy for more information.

US equities, in fact shares around the world, seem to be running away with themselves right now. Is this healthy? And who wins, other than the investors who sell before the price tops out? This week Phil Dobbie talks to Prof Steve Keen about the relationship between shareholder value and the growth and productivity of the company’s shareholders are buying in to. Is part of the problem that the system promotes the managerial class, rather than incentivises entrepreneurs? Hosted on Acast. See acast.com/privacy for more information.

Who’d have thought it – Steve Keen and Phil Dobbie turn out to be a couple of royalists. As Harry and Megan prepare to chuff off to Canada, and royal-watchers have been decrying the whole thing as one massive constitutional crisis, we use it all as an opportunity to ask whether the royal family is worth keeping at all. The expectation was that one or other of our podcasters would have it in for the royals, but after looking at the numbers they both agree it’s better to stick with what we know. After all, they’re great for tourism and only cost us a quid a year each. Hosted on Acast. See acast.com/privacy for more information.

2019 was quite a year. We had the ongoing Brexit saga, the US China trade war, Europe close to recession and a big housing downturn in Australia. It was capped off with some of the worst bushfires ever seen. Phil Dobbie asks Prof Steve what this year has in store for us? if austerity has gone will we see a bright future for Britain, or will it be dragged down by Brexit? Is this the year that Donald Trump gets re-elected, or will the US economy take a turn for the worst and drag him down with it? And will housing in Australia bounce back and see their economy back on the upward trajectory? Or not? And climate change – is this the year we finally start to take notice? Hosted on Acast. See acast.com/privacy for more information.

It’s taken us a few years to tackle the obvious topic for the Debunking Economics podcast, what are the biggest failings of neoclassical economics. Prof Steve Keen tells Phil Dobbie that it starts on page one of rudimentary economics textbooks, which the idea of the demand curve. Having debunked that, he moves on to the capital market line, used to determine investment decisions. Then it’s the models being used to determine the impact of climate change. Then the concept of diminishing marginal productivity. And finally, the process of simplifying assumptions. Having dismissed all the major tenants of economics Phil asks Steve if there any laws that apply to the ‘science’, in the same way that gravity applies to physics. Or is it all lost in the realm of unproven speculation? Hosted on Acast. See acast.com/privacy for more information.

It’s one of the basic constructs of classical economics – the concept of the opportunity cost. Steve Keen admits it works at the individual level – you are listening to this podcast at the expense of doing something else, for example. But does the theory work when applied to broader economic thinking? No, says Steve – it’s a case of false equivalences, that renders it meaningless. Does that mean it’s useless as a tool for economists? And is there a way Phil Dobbie can use it as a way of getting out of mowing the lawn? Hosted on Acast. See acast.com/privacy for more information.

In this edition of the Debunking Economics Podcast Phil Dobbie and Steve Keen discuss business cycles. What causes them and how can we reduce their impact. As Steve explains, neo-classical economics teaches us that the turns in a cycle are caused by exogenous shocks when, in reality, it is the economies own internal cycle that is the root cause. Listen in to find out why business cycles really occur and what we can do to lessen their impact. Plus, Phil asks, why has the cycle stalled all of a sudden, and is it necessarily a bad thing? Hosted on Acast. See acast.com/privacy for more information.

Economists predict GDP growth by looking at business investment, government and consumer spending, plus the net level of exports. In the long term, of course, growth only comes from the products and services you sell and for that the Atlas of Economic Complexity, developed by Harvard University, is a powerful tool. It demonstrates how growth comes to countries with a highly complex mix of products for export – the less complex, the less the growth potential. As Prof Steve Keen says to Phil Dobbie in this week’s Debunking Economics podcast, it is the exact opposite of Ricardo’s argument of Comparative Advantage. Hosted on Acast. See acast.com/privacy for more information.

Economists love the concept of externalities - factors that cost you or benefit you, for which you made no contribution, or for which you bare no blame. In this week’s podcast Phil Dobbie describe show his new neighbour said he hopes he does his house up, because gentrification benefits everyone in the street because everyone’s house goes up in value. He asks Steve Keen whether, if that’s the case, he should charge his neighbour for some of the work, given he will benefit financially. Increasingly it’s possible to find ways that people can pay for the external benefits you receive – but, the fact that you can, does that mean that you should? Hosted on Acast. See acast.com/privacy for more information.

Jeremy Corbyn pledged over the weekend that, if he was to become Prime Minister, he would deliver free high-speed full-fibre broadband to everyone by 2030. To do it he would renationalise Open Reach, the network arm of BT. Is any of this a good idea? Phil Dobbie asks Steve Keen whether the government can deliver a solution any faster than the private sector. Surely subsidies are a better approach. And can’t something be learnt from the experience in Australia, where politicking has destroyed the country’s hope of having decent broadband anytime soon. Instead, they have something that’s slower and more expensive than what Britain already has. Even if the government was to manage the roll-out – does it really need to be free? And, if we pursued the principle of Modern Monetary Theory, isn’t there a danger that we’d see more schemes like this, without the fiscal rigour that you’d expect when access to funding is more restrictive? Hosted on Acast. See acast.com/privacy for more information.

For all the best efforts we have seen over recent years, the gender pay gap in most countries remains an issue. There are lots of other factors determining how much you get paid, of course – your age, your education, where you live. Can these gaps ever be resolved? Probably not, says Steve Keen, who says the issue is one of hierarchy. Society needs hierarchy to organise itself, so we will always see some getting paid more than others, even if, on the face of it, they don’t deserve it. The question is, how do people rise to the top of the hierarchy and what is the pay differential between the top and the bottom. Hosted on Acast. See acast.com/privacy for more information.

Steve Keen and Phil Dobbie had very different ideas about Brexit a few years ago. Now they both agree it’s a vote that should never have happened? So, is it the impact of tariffs?? Is it the impact on foreign investment? Is it impacts on the supply chain? No, many of those things, Steve believes, will be overcome. It’s the one unsurmountable thing that was never discussed ahead of the vote – the one thing that is likely to kill the whole idea. Now they agree on one thing, Brexit will never happen. Hosted on Acast. See acast.com/privacy for more information.

One of the constraints of MMT is that to create more government money you need to have a sovereign currency. That rules out countries in the Eurozone and developing nations heavily reliant on the US dollar. Yet the idea of a Green New Deal is to resolve the issue of climate change using MMT. How can you pursue a global issue with a protocol that only applies in certain parts of the world? And how do you apply it without going down the dangerous road of world government? Questions Phil Dobbie puts to Prof Steve Keen in this week’s Debunking Economics podcast. Hosted on Acast. See acast.com/privacy for more information.

Larry Randall Wray has suggested Modern Monetary Theory should be applied to create a Green New Deal. This week and next, Phil Dobbie talks to Prof Steve Keen about the idea of creating government money to tackle the climate emergency. Would it work? Is there a danger that public sector spending will crowd out private investment in innovative approaches to renewable energy? And what can we learn from the original New Deal, from Roosevelt just after the Great Depression? Hosted on Acast. See acast.com/privacy for more information.

There’s a glimmer of hope that the US China trade war will ease a little. In other words, it won’t get worse. But even so, the tariffs and other conditions are being felt in both countries. Steve Keen, who is not a fan of global trade, admits this one is having a destructive effect on the global economy. So how will it end? Could Trump achieve his aim of drawing manufacturing back to the United States? If he does, how long will it take? And what happens in the meantime? Hosted on Acast. See acast.com/privacy for more information.

At the Labour party conference recently, UK Shadow Chancellor outlined the policy aim of reducing the working week to 32 hours, with no loss in pay. It’s been lambasted by many, who see it as a way of reducing productivity and costing jobs as businesses fail against overseas competitors with a lower cost base. In this week’s podcast, Prof Steve Keen tells Phil Dobbie that the protagonists have got it wrong. The reason productivity has slowed is because companies are becoming too reliant on low cost labour. A rise in labour costs will encourage more investment in technology, which is what will increase productivity. It’s impossible to increase the productivity of low skilled labour because humans can’t improve their energy output without machines to help them. Hosted on Acast. See acast.com/privacy for more information.