Time for a New Approach for Unemployment?

[Kimura]

Scuze me, but the federal government is funded by taxpayers, even when it spends money that is printed by The Fed.

Um, no it's not. The government spends by having the FED credit private bank accounts. Tax payments and borrowing occur with money that is already spent.

Secondly, this is a thread related to labor theory, not monetary operations. Just sayin'.

You sad little booby. It's clear that trying to explain to you how the real world functions is pointless.

Happy Happy Joy Joy!

Don't forget the Three Shells!

The federal government creates money when it spends/lends. Once government $$$$ has been created, the federal government can then receive back tax payments or "borrow" back its $$$$ from the non-government sector.

We define the non-government sector to include both the domestic private sector (firms and households) and the foreign sector (foreign individuals, households, firms and governments). In other words, we can't pay taxes or buy government debt until we have obtained the government's $$$$, and this is impossible before its creation through government spending/lending.

The federal government spends by a) crediting private bank accounts, or b) cutting checks to US citizens that end up as credits in private bank accounts. Private banks then have more deposits and an identical amount of reserves.The deposits in private banks and reserves are considered financial assets of the non-government. Government spending creates net financial assets, because it creates an increase in the non-government holding of financial assets.

When the government taxes, it debits private banks accounts, and we have a corresponding decrease in the reserve and bank deposits of private banks. If we considered taxation by itself, it results in a decrease of non-government holdings of financial assets. In other words, taxation destroys financial assets.

Therefore, operationally, under our fiat system, all spending PRECEDES taxation or "borrowing".

 

[TakeAStepBack]

Still trying to sell that loaf of shit, I see. While deliberately avoiding the obviosu underpinnings of economic law. It's as though you actually believe your own bullshit.

 

[Kimura]

Still trying to sell that loaf of shit, I see. While deliberately avoiding the obviosu underpinnings of economic law. It's as though you actually believe your own bullshit.

I find it amazing I constantly have to explain monetary operations to all the resident econ geniuses. That includes you and your fanboy obsession with a deceased Austrian sociologist and his cargo cult.

 

[Freemason9]

Just sayin'...again....underemployment is a bigger problem, with no end in site and more long-term of a problem.
For the life of me why no one really talks about it...

Exactly. The solution to our disastrous economy is easily at hand--and yet, no mention of this solution ever appears in corporate media or national-level politics.

Just create jobs and put people to work earning money and developing skills. Renew the collapsing American infrastructure. Distribute wealth more evenly, like we used to in the pre-Reagan days. This happens though a full employment economy.

That will actually fix nearly everything, and it is quite simple. The real question is why this is never, ever discussed.

 

[Kimura]

Just sayin'...again....underemployment is a bigger problem, with no end in site and more long-term of a problem.
For the life of me why no one really talks about it...

Exactly. The solution to our disastrous economy is easily at hand--and yet, no mention of this solution ever appears in corporate media or national-level politics.

Just create jobs and put people to work earning money and developing skills. Renew the collapsing American infrastructure. Distribute wealth more evenly, like we used to in the pre-Reagan days. This happens though a full employment economy.

That will actually fix nearly everything, and it is quite simple. The real question is why this is never, ever discussed.

I agree. Investments in infrastructure, transportation, education, R&D, nuclear power, green energy, rail, etc would be HUGE. We could significantly increase output in year.

 

[SteadyMercury]

The reason the vast majority of new jobs is part time is because of the new Health Care Law.

Are you sure about this?

It makes sense but I remember recently seeing BLS stats that showed a surprisingly small percentage of people with part time jobs forced to for economic reasons. Most just wanted to work part time instead of full.

 

[Desperado]

It's not funded by the taxpayer, it's funded by the federal government.

Seriously you are going with that?
You obviously don't have a clue.

 

[Kimura]

It's not funded by the taxpayer, it's funded by the federal government.

Seriously you are going with that?
You obviously don't have a clue.

I've explained monetary operations probably thirty different times on this forum. Why does the federal government need to receive back its own fiat, which it freely issues, to fund federal expenditures? Taxes function to drive $$$$ and to regulate aggregate demand. We're on a fiat system now, it's a different ball game.

I explained it here: http://www.usmessageboard.com/economy/328809-time-for-a-new-approach-for-unemployment-2.html#post8277353 & here: http://www.usmessageboard.com/economy/327251-wage-strikes-planned-at-fast-food-outlets-45.html#post8270682