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Create a School of Economics

Jifpop09
Posts: 2,243
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5/2/2014 5:56:57 AM
Posted: 2 years ago
Name of School: National Progressive School

Tenets

- Use Fiscal Policy as incentives instead of subsides.
Ex: Tax the farm for bad choices, instead of giving them money for good ones.

- Establish complex progressive double levies.
Ex: Establish a progressive levy over the current progressive income tax, based on how much the 1% puts back into the economy.

- Create strong national institutions that coincide with free market business, with strong incentives to go national.
Ex: Creating a national bank, which will incentivize the populous with tax breaks for depositing with them.

- Collect low rate taxes on growth in big business, and redirect it to small business as stimuli. I normally disagree with directly touching corporate growth, but my views have changed slightly since low rates don't do much harm. (I've been interested in windfall theory for a while)
Ex: Collect 1% more corporate taxes for every 5% of corporate growth, and redistribute that to small business.

- Stabilize inflation and keep selective tariffs low. A free trade agreement should be had with one/two countries for every market we have open. To many free trade agreements leave the nation vulnerable.
Ex: Sign a FTA with Morroco for Ivory, while subsequently opening a FTA in agricultural imports. P.S, lowering food tariffs in Africa provides lots of revenue
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storytimewithjesus
Posts: 64
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5/3/2014 10:23:10 PM
Posted: 2 years ago
Evolutionist School

Understand the need for both selectivity and adaptability to the survival of everything from individuals to economies to nations and more.

Examples of selectivity: Markets encourage positive selection of good traits by rewarding people who provide goods and services that people want and need, enforcing laws against violent crimes negatively selects against traits that harm people.

Examples of adaptability: Respecting freedom of speech allows for ideological/memetic diversity (more variety of ideas leaves you more options for dealing with problems that come up), localizing more of government would allow for more experimentation and specialization by local government agencies.

Although the school's philosophy can line up relatively well with many aspects of modern libertarianism (free markets, emphasis on local control and competition, etc.) it also recognizes that libertarianism isn't the only system that works. For example, Confucian meritocratic bureaucracy worked very well because of their meritocratic selectivity. Ancient Greece advanced human knowledge significantly by having a lot of separate city states that could each specialize in different things, from warfare to philosophy to trade and craftsmanship and more. As a modern example, many European countries have more efficient health care systems for a couple reasons. First, many of their systems do more to reward doctors for outcomes, where the US health care system charges for services performed. Second, the US spends about the same amount on the health care of the average person age 18-65 as most European countries, but twice as much on people age 65-75 and three times as much on people age 75 and over. Europe invests their health care resources in people who are young and capable of contributing more back to society, while Medicare in the US redirects a lot more resources towards retirees who will never work again, causing us to spend about twice as much on health care per person as the average European country.
jimtimmy3
Posts: 189
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5/4/2014 1:56:34 PM
Posted: 2 years ago
I'll call my school "Obamaism":

1.) Give subsidies to corporations that helped Obama get elected.

2.) Create regulatory schemes that Obama says are in the public interest but are actually supported by large, existing companies to crush out competition.

3.) Massively increase government intervention in the economy and make fun of anyone who dares point out that this is, in fact, what Obama is doing with misleading charts and statistics.

4.) Pretend that supply and demand don't exist and anyone who believes in them is just being paid by Fox News.

5.) Endless faith in the government to do everything for us economically.
JohnMaynardKeynes
Posts: 1,512
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5/7/2014 2:39:43 PM
Posted: 2 years ago
Here's mine:

New Market Keynesian School -- a combination of Market Monetarism and New Keynesianism

1. The economy hinges on fluctuations in aggregate demand, which leads it to be perpetually stuck in the short run, which is to say below the natural rate of unemployment.

2. In order to bring the economy to the natural rate of unemployment, or the non-accelerating inflation rate of unemployment (NAIRU) the government must intervene through fiscal stimulus and the Fed must aggressively expand its balance sheet.

3. The economy is prone to liquidity traps, as it is in now. In order to combat a liquidity trap, the Fed should turn away from conventional QE and instead approach nominal GDP targeting -- setting a growth rate for nominal GDP per annum. In the process, it must endorse a higher rate of inflation, perhaps 4 percent, and consistently communicate its accommodative intentions.

4. Markets are inherently volatile, and people are not rational actors, so even following accommodative monetary policy and expansionary fiscal policy, the economy may continue to stagnate until it approaches its long-run condition.

5. Following Cambridge, the aggregate supply curve is virtually redundant, save for an exogenous shock, e.g., an OPEC-sanctioned embargo.

6. Free trade is the best policy for nominal GDP growth, but must be tailored during a liquidity trap as it interferes with counter-cyclical nominal GDP targeting and disproportionately allocates benefits toward the affluent, effectively nullifying the initial intention of the stimulus.

7. As Keynes advocated, heavy regulation is needed. Because the aggregate supply curve is redundant, any shock to supply will be absorbed insofar as it is offset by demand -- or we could even say net demand relative to what it could have been in the absence of regulation, i.e., depressed due to a financial crisis. This draws on Hymen Minsky's financial stability hypothesis, which argues that the financial system is inherently unstable and can endogenously implode simply by virtue of self interest.
~JohnMaynardKeynes

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DanT
Posts: 5,693
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5/8/2014 11:37:59 AM
Posted: 2 years ago
At 5/2/2014 5:38:44 AM, Jifpop09 wrote:
If you could develop a school of economic thought, what would it look like? I'll go first.

Ideology is dangerous. Those who create economic schools are not ideologists, they are simply trying to figure out what works and what doesn't. People who subscribe to economic schools are ideologists, because they cling to predetermined tenants, rather than approaching economics with an open mind.
"Chemical weapons are no different than any other types of weapons."~Lordknukle
JohnMaynardKeynes
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5/8/2014 12:04:31 PM
Posted: 2 years ago
At 5/8/2014 11:37:59 AM, DanT wrote:
At 5/2/2014 5:38:44 AM, Jifpop09 wrote:
If you could develop a school of economic thought, what would it look like? I'll go first.

Ideology is dangerous. Those who create economic schools are not ideologists, they are simply trying to figure out what works and what doesn't. People who subscribe to economic schools are ideologists, because they cling to predetermined tenants, rather than approaching economics with an open mind.

What would you say about people who create their own school, like for instance, market monetarists? I agree with you that simply saying "I'm X" is shutting off our mind to every other possible, but surely creating a school of thought to account for the pertinent nuances you have examined can't be wrong, can it?
~JohnMaynardKeynes

"The sight of my succulent backside acts as a sedative for the beholder. It soothes the pain of life and makes all which hurts seem like bliss. I urge all those stressed by ridiculous drama on DDO which will never affect your real life to gaze upon my cheeks for they will make you have an excitement and joy you've never felt before." -- Dr. Dennybug

Founder of the BSH-YYW Fan Club
Founder of the Barkalotti
Stand with Dogs and Economics