Fatal flaw in this "background theory in terms of a single causal chain," IMO:
>Consumption and Savings Decisions → Investment
If we take this all down the basic level of the thing we actually (can) measure — spending — this causative arrow seems to be saying that less household consumption spending causes more investment spending by firms.
Which strikes me as a Very Dicey Proposition indeed...
I do think we have to take Henry George seriously when it comes to the falling productivity picture. We were able to dodge him by improving transport links* but once we did that, we doubled down by also socialising housing speculation. It's not great and could be much much better
*No Price Like Home:
Global House Prices, 1870 – 2012∗
Katharina Knoll† Moritz Schularick‡ Thomas Steger§
This guy Keynes you refer to: how does he view the impact of social media and the coming revolution in artificial intelligence?
I suppose he would support a high minimum wage, a four day, work week, and a basic income.
Asking for a friend.
the classic austrian move of “making the economy more like the death star trash compactor”
/Exactly/
Fatal flaw in this "background theory in terms of a single causal chain," IMO:
>Consumption and Savings Decisions → Investment
If we take this all down the basic level of the thing we actually (can) measure — spending — this causative arrow seems to be saying that less household consumption spending causes more investment spending by firms.
Which strikes me as a Very Dicey Proposition indeed...
I do think we have to take Henry George seriously when it comes to the falling productivity picture. We were able to dodge him by improving transport links* but once we did that, we doubled down by also socialising housing speculation. It's not great and could be much much better
*No Price Like Home:
Global House Prices, 1870 – 2012∗
Katharina Knoll† Moritz Schularick‡ Thomas Steger§