Milton Friedaman responsible for this really dumb idea?

[JP Hochbaum]

Something i just ran into the Warren Mosler posted:

Funny how little attention, if any, is focused on how corporate profits are a function of federal deficit spending?

Ideology conflicts?

Nothing ‘new’ about the idea that deficit spending and profits are related:

Kalecki’s most famous contribution is his profit equation.

In this model total profits (net taxes this time) are the sum of capitalist consumption, investment, public deficit, net external surplus (exports minus imports) minus workers savings.

In any case, without an increase in net exports or some kind of material increase in credit expansion, the decline in the federal deficit is highly problematic."

The Center of the Universe » Blog Archive » corp profits and the federal deficit

IN other words, ceterue peribus, higher corporate profits = lower employee savings.

 

[Kushinator]

Something i just ran into the Warren Mosler posted:

Funny how little attention, if any, is focused on how corporate profits are a function of federal deficit spending?

Corporate profits in blue, federal expenditures minus tax revenue (if positive then deficit) in red. Both factored for inflation.

Not sure where the relationship is.

 

[JP Hochbaum]

Corporate profits in blue, federal expenditures minus tax revenue (if positive then deficit) in red. Both factored for inflation.

Not sure where the relationship is.

Because your only looking at two variables CP and Deficits.

In this model total profits (net taxes this time) are the sum of capitalist consumption, investment, public deficit, net external surplus (exports minus imports) minus workers savings.

 

[Kushinator]

Because your only looking at two variables CP and Deficits.

Stating corporate profits are a function of deficit spending only considers the two variables.

Also, your link did not work.