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Q&A – Ask Me Anything

Since I am trying out the site without comments I figure the least I can do is open things up to a Q&A more often.  Feel free to have at it.  You can rip me a new one for closing comments, ask me something nerdy or whatever you want.  Just don’t be too rude so I go regretting opening up comments….

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    Cullen probably a stupid question but would MR have any thoughts regarding relieving poverty in, for example, Africa. Or would it not apply because the needed “infrastructure” (rule of law, appropriate banking system, political structure, income distribution, etc.) is not in place. In particular, since we can only “consume what we can produce” does that mean that “more money” would not help in these cases, as the productive capacity for goods and services is thwarted by the lack of the needed infrastructure ? Or could understanding MR help in some cases? Thank you.

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    Cullen Roche

    I tried to construct MR from a set of operational realities showing “what is” as opposed to what can be. So my hope is that people can better understand the world and then apply those understandings. But I don’t attach MR to a set of policy ideas because I think that politicizes the understandings.

    Of course, I think we should use these understandings to enact policy. But MR doesn’t stand for a set of policies. Me personally, yes, I think that understanding MR would make one more inclined to favor govt intervention in many ways because I think that one of the very real understandings in MR is that govt does some very good things (and some very bad things).

    In reecent years I’ve been an advocate of govt deficits via lower taxes or higher spending because I think that there is strong evidence of low aggregate demand resulting from weak balance sheets. Therefore, the govt can strengthen balance sheets by injecting more net financial assets into the private sector which will increase financial net worth and boost consumption which will increase corporate revenues which will increase employment, etc. Anyone who properly understood the Balance Sheet Recession theory understood this and would have advocated govt deficits while understanding that there was almost no risk of inflation from this (just as I predicted for 5 years running). We were right. Unfortunately, nobody was listening.

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