Baumol's disease.

[CBradSmith]

@07pilt

Have any comment about this article? I'm looking to learn something on the topic or topics this may touch.

http://www.dailyprogress.com/opinio...cle_c48c51a8-3b40-11e7-8e39-9371373cc1c9.html

Or this?

http://www.kausfiles.com/2017/05/17/the-most-important-chart/

 

[07pilt]

@07pilt

Have any comment about this article? I'm looking to learn something on the topic or topics this may touch.

http://www.dailyprogress.com/opinio...cle_c48c51a8-3b40-11e7-8e39-9371373cc1c9.html

Or this?

http://www.kausfiles.com/2017/05/17/the-most-important-chart/

I think the first article mixes a couple of issues. I don't think Baumol disease is an issue. I do think that changing returns to capital and high and low skill labor can be an issue (previously discussed).

Baumol does pick up on an issue of productivity increases being very lumpy, but that doesn't really matter. Productivity much like BMI really isn't useful except in the aggregate. Sure the number and quality of concerts the Met can put on has been stagnate, but in the context of increasing productivity those concerts are worth more to the concert goers. So measured in quantity of concerts it is stagnated, but measured in value created the productivity has gone up.

The chart in the second article I think mostly reflects higher overall educational attainment and educational attainment being more meritocratic. Imagine a society where educational achievement had a random element to it, and pay was a function of educational achievement and merit. As the random element was eliminated, it would create the exact chart shown.

 

[CBradSmith]

I think the first article mixes a couple of issues. I don't think Baumol disease is an issue. I do think that changing returns to capital and high and low skill labor can be an issue (previously discussed).

Baumol does pick up on an issue of productivity increases being very lumpy, but that doesn't really matter. Productivity much like BMI really isn't useful except in the aggregate. Sure the number and quality of concerts the Met can put on has been stagnate, but in the context of increasing productivity those concerts are worth more to the concert goers. So measured in quantity of concerts it is stagnated, but measured in value created the productivity has gone up.

The chart in the second article I think mostly reflects higher overall educational attainment and educational attainment being more meritocratic. Imagine a society where educational achievement had a random element to it, and pay was a function of educational achievement and merit. As the random element was eliminated, it would create the exact chart shown.

Thanks.

What "problems" do the trendlines portend, and what are your prescriptions?

 

[07pilt]

Thanks.

What "problems" do the trendlines portend, and what are your prescriptions?

Massive inequality, depression of low skill wages, the deskilling of the economy, return to feudalism. First thing is first, FOMC needs to return the inflation target to at least 4% (6% preferably). The Federal Government should acknowledge and follow the teachings of the MMT school of economics. A lot of problems might just go away if we had a tight labor market. If that doesn't work, UBI and/or a United States sovereign wealth fund.

 

[CBradSmith]

Massive inequality, depression of low skill wages, the deskilling of the economy, return to feudalism. First thing is first, FOMC needs to return the inflation target to at least 4% (6% preferably). The Federal Government should acknowledge and follow the teachings of the MMT school of economics. A lot of problems might just go away if we had a tight labor market. If that doesn't work, UBI and/or a United States sovereign wealth fund.

Would like to read about MMT. Have a link or 2 that you trust as a resource?

 

[07pilt]

For dummies, for laymen, for academics?

 

[07pilt]

For laymen:
http://xa.yimg.com/kq/groups/16338395/1920074591/name/Soft+Currency+Economics.pdf

 

[CBradSmith]

For laymen:
http://xa.yimg.com/kq/groups/16338395/1920074591/name/Soft+Currency+Economics.pdf

And for the hell of it, academics.

 

[07pilt]

And for the hell of it, academics.

This is still pretty light, but the reference make a pretty good MMT bibliography
http://cas2.umkc.edu/economics/peop.../Working Papers/Fullwiler Kelton Wray MMT.pdf

 

[CBradSmith]

Thanks a lot...pretty excited about this!