Working on this new server in php7...
imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Calendar Publish RSS
Features
latest news
best of news
syndication
commentary


KILLRADIO

VozMob

ABCF LA

A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List

LAAMN List




IMC Network:

Original Cities

www.indymedia.org africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech

Surviving Cities

www.indymedia.org africa: canada: quebec east asia: japan europe: athens barcelona belgium bristol brussels cyprus germany grenoble ireland istanbul lille linksunten nantes netherlands norway portugal united kingdom latin america: argentina cmi brasil rosario oceania: aotearoa united states: austin big muddy binghamton boston chicago columbus la michigan nyc portland rochester saint louis san diego san francisco bay area santa cruz, ca tennessee urbana-champaign worcester west asia: palestine process: fbi/legal updates process & imc docs projects: radio satellite tv
printable version - js reader version - view hidden posts - tags and related articles

The Rule of Supply-Side Economists

by Thorsten Hild Tuesday, Feb. 14, 2012 at 2:42 PM
mbatko1@hotmail.com

Supply-side economists dominate wherever one looks in politics, economics and the media. That wages and salaries are not onl.y costs but also demand usually doesn't interest supply-side economists.

THE RULE OF SUPPLY-SIDE ECONOMISTS

By Thorsten Hild

[This article published on January 12, 2012 is translated from the German on the Internet, http://www.wirtschaftundgesellschaft.de/?p=1684.]

Supply-side policy dominates wherever one looks, in politics, economics and the media. Demand-side economists only had a brief boom season when politics was forced to act in a demand-oriented way. With the phasing out of the economic program and other state fire brigade actions to stabilize the demand and bailout financial management, economists who founded those measures substantively and theoretically for decades are not sought. As the ver.di economist Dierk Hirschel said in a recent interview, “We are now sought less by the middle class media. In the 2007 financial crisis, we were actors. We were needed for successful crisis management. We did short-time work. We had an important influence on the organization of economic programs. But now we are marginalized. Our colleagues will be directly involved with the crisis but we are not currently sharing in crisis management. The German chancellor speaks with the unions. But the unions have no direct influence on government policy. I suppose that is one of the reasons why the unions are so little present now in the media.”

WHAT SUPPLY-SIDE AND DEMAND-SIDE ECONOMICS AND POLITICS MEAN

Supply-side oriented economics and politics concentrates one-sidedly on individual economic costs and seeks to keep them low. The state should keep away from the economy as much as possible and claim few resources for itself because that benefits the economy, supply-side economists say. The state “costs” less and collects fewer taxes and fees to finance its reduced spending. Unions are also to be kept small because they strengthen employees in wage- and salary negotiations and raise the price of the supply of workers. That wages and salaries are not only costs but are also converted in demand does not usually interest supply-side economists. According to their interpretation, every supply – labor or product – creates its demand. It only has to be cheap enough.

On the other hand, demand-side oriented economists think in cycles and connections that can be concretize3d in trivial economic laws that are neglected on criminal punishment. The expenditures of one are always also the revenue of the other. The economist Wolfgang Stutzel once explained this generally and concretely:

“Every sales act represents a buying act for the partner…”

How could Germany seriously think of constantly accumulating surpluses in foreign trade? Must the “rest of the world economy,” above all the other economies of the Euro-zone, the target of the large part of German foreign trade relations, accept deficits? While that connection may seem trivial, it is simply ignored by Germany and others in the scope of the Euro-crisis.

SUPPLY-SIDE POLICY AS UNADULTERATED TRASH

Is it now a program or media clumsiness/awkwardness that Germany radio on one day interviewed two supply-side economists in detail? In any case, it is exemplary for the air sovereignty held by that economic-political school in the media.

Yesterday Germany radio interviewed the chief economist of Deutsche Bank, Thomas Mayer. His economic creed is that “Italy now needs structural reforms above all. This means a flexibility of the labor market, an opening of the different cartels in the service sector. Toward the end of 2011, Monti rightly introduced another fiscal austerity package. Now it is crucial that he carry out reforms on the supply-side of the economy to strengthen growth.”

This is supply-economics in unadulterated trash. How growth should be strengthened through one-sided spending cuts remains the secret of supply-side economists! But ideology never asks for arguments or empirical evidence.

In the afternoon the economist Beert van Rosebeeke spoke on Germany radio. The broadcast station pointed out that Rosebeecke works at the Center for European Policy in Freiburg. Here is Rosebeeck’s economic dogma:

“The markets in Italy must be liberalized. Piece-work costs in Italy rose around 30 percent since 1999; in Germany they increased around five percent in the same time period. Wages must fall in Italy. This is not only in the hands of Mr. Monti; unions etc. are also obviously needed. These are measures that should be tackled now.”

That is supply-economics in unadulterated trash. The “economist” does not speak one word about wage development in Germany. The economic rule recognized worldwide – except for Germany – is: wages must develop corresponding to productivity and price fluctuations. But Germany has broken this rule downwards for years. This is reflected in the piece-work cost development.

POLITICS COULD PREVENT WORSE THINGS – BUT DOESN’T

One must almost be thankful to economists for their unsparing openness. May demand-oriented economists make economic-political comments as clearly! There are individuals in Germany who do this, perhaps one or two who reach a wider public. On the supply-side, there are whole convoys that sit in their ideologically-armored institutes financed by the economy and tax funds while the revenue base for people is deregulated regarding their jobs and the state and preach renunciation to them.

The financial crisis has shown that politics is only ready to hear demand-oriented economists in the greatest economic distress… Imbalances have developed within the Euro-zone and in the German domestic economy between wages and profits and private assets and public debts. A policy that relies on a consistent balance of these imbalances and unequal distribution could prevent worse things.

RELATED LINKS:

www.adbusters.org

www.progressive-economists.ca

www.therealnews.com

http://kickitover.org

www.commondreams.org

www.democracynow.org

www.capitalismhitsthefan.com

www.socialistproject.ca

www.onthecommons.org

www.kboo.fm

Report this post as:

© 2000-2018 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy