Mike the Mad Biologist

Links 11/13/10


  1. #1 Min
    November 14, 2010

    Brad DeLong: “It is not that they {the Pain Caucus economists} or their funders have any material interest in prolonged depression. It is no longer the case that there are many rich people who hold their wealth in bonds and so profit from deflation and do not lose from unemployment and idle capacity: Everybody’s portfolio today is much more diversified than that. Today, in a depression everybody loses.”

    Oh, but it is not absolute gain that matters, but relative gain. Los Ricos are comfortable regardless. But what good is it to be rich if there are no poor?

    Besides, have some regard for the future. How do you produce a servant class without high unemployment? How do you keep wages down? How do you keep control of the government?