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All the same, Wagenknecht was waxing lyrical about Goethe's devastating critique of capitalism. I'm not sure that was Erhardian.
Der damalige Kapitalismus war sozial gebändigt. Man konnte von der gesetzlichen Rente im Alter leben. Bei Gesundheit gab es keine Zuzahlungen. Die Löhne stiegen. Hartz TV war noch nicht mal erdacht. Vor allem aber hatte die Politik mehr Spielräume, weil es noch nicht diese konzentrierte Wirtschaftsmacht gab
Pensions one could live of, health care was free, wages were rising, there was room for politics, because economic power wasn't as concentrated as now. That's a parallel to Erhard.
Erhard himself was a neo-liberal, credited with saying "The market is social". For a left-party leader to identify herself with him (if that is what Wagenknecht is doing) is unbelievable.
Of course, I realize that there is a widely-shared Erhard myth which credits him with the "miracle". In which case Wagenknecht is just trying to pull some of the Erhard halo on to her own head. And this can cast her remarks about money in a similar light, ie opportunistic use of commonly-accepted frames. For her own advancement...
This doesn't dispel my misgivings about the capacity of existing left-of-the-left parties to be of much use in bringing about major political change.
I think that is what she is trying to do.
Too clever by half.
Wettbewerb oder Leistung sind nicht mehr die zentralen Merkmale und Perspektiven unserer Wirtschaft, so die Autorin. Wenn Ökonomie die Kunst des Anreizesetzens ist, wirken heute die falschen, denn sie belohnen abstrakte Renditeziele und Jobvernichtung statt Erhalt und Ausbau von Arbeitsplätzen, Umweltschonung und Unternehmenswachstum. Sahra Wagenknecht nimmt die Theoretiker der Sozialen Marktwirtschaft wie Walter Eucken und Ludwig Erhard beim Wort und beschreibt es als dringlichste Herausforderung an die Wirtschaft, wieder produktiv und innovativ zu sein. Denn es muss nicht nur gerechter verteilt werden, es muss auch wieder mehr zu verteilen geben.
Competition or performance are no longer the key characteristics and prospects of our economy, says the author. If economics is the art of setting incentives, the wrong incentives are at play today, because they reward abstract earnings targets and job destruction rather than preservation and expansion of jobs, environmental protection and business growth. Sahra Wagenknecht takes the theorists of the social market economy such as Walter Eucken and Ludwig Erhard at their word and describes the most urgent challenge for the economy as being productive and innovative again. For distribution must not only be fairer, there must also be more to distribute.
No Post-Keynesianism here.
In practice: The Fed uses a cruder tool than the ECB, but the Fed uses its tool with much greater skill. The outcome is practically indistinguishable.
- Jake Friends come and go. Enemies accumulate.
Which the ECBuBa uses as a strategic threat to usurp the power of democratically elected parliaments, but not something they have ever actually done for real.
And there are also equity capital requirements along with rules as to what counts in tiers, Basel I & II.
but should the Central Bank, for whatever reason,
not supply the reserves that could make a given bank insolvent overnight. Wouldn't they normally 'resolve' that bank rather than not supplying reserves?
But sane central banks never deliberately create bank runs on their own banking system like that. Partly because it's a game of musical chairs: All liquidity comes, in the final analysis, from the central bank. So if the central bank withdraws enough liquidity from the system that a bank must fold due to liquidity requirements, then (at least) one bank will fold when the music stops... and it may not be the bank the CB wanted to kill.
Particularly if nobody in the government has the balls to call its bluff and send armed goons to its place of business...
For distribution must not only be fairer, there must also be more to distribute.
sounds like RW weasel words talking point...
horse, cart etc.
(usually prefacing reformanic rhetoric about too much government regulation strangling the 'engine of the economy')
as for the larger theme of the diary, whether the present 'left' in europe is capable of changing narratives in midstream, and really call for radical changes...
right now, as ARG notes, the only glimmer is beppe grillo.
this is what co-option looks like, folks. 'The history of public debt is full of irony. It rarely follows our ideas of order and justice.' Thomas Piketty
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