UKIP released its manifesto this week. It’s a glossy production with a range of arguments designed to appeal to the disenfranchised UK worker. But do they stack up economically? In this podcast Phil Dobbie talks with Professor Steve Keen about some of their plans, including zero net migration, changes to VAT, getting rid of inheritance tax, redirecting foreign aid to the NHS and ways of helping small business. It’s fair to say they get a mixed report card from Steve, but some of their ideas are worth considering. Major parties, take note. Hosted on Acast. See acast.com/privacy for more information.

Conventional neoclassic economics assumes the economy will always arrive at an equilibrium, yet central banks spend an inordinate amount of time speculating on when they should next move interest rates, and in what direction. In this edition of the Debunking Economics podcast Phil Dobbie asks Professor Steve Keen what interest rate decisions are intended to achieve and if they have their desired effect. We talk about this as the US Federal reserve prepares itself for one, possibly two, more interest rate rises this year. Hosted on Acast. See acast.com/privacy for more information.

A Debunking Economics listener asked for a podcast on the role of Shadow Banks. In particular, he wanted to know if shadow banks create money in the same way as conventional banks. The quick answer is, no, because they are not able to create deposits – but they do increase the ability for banks to extend more loans. Phil Dobbie talks to Prof Steve Keen about the role of shadow banks and asks, do they need to be curtailed? And, if so, how? It’s an issue that’s been flagged by Janet Yellen, Governor of the Federal Reserve in the US, who suggested that the influence of shadow banking on the financial system is hard to measure. Hosted on Acast. See acast.com/privacy for more information.

Economists have always seen wealth as a function of capital and labour. In effect, people and machines create things which makes them money. But Steve Keen believes there’s a far more important consideration – energy. In this free edition of the Debunking Economics podcast he points out how the industrial revolution was founded on the availability of energy and ongoing wealth creation is being driven by the more efficient use of energy. Hosted on Acast. See acast.com/privacy for more information.

Imagine if shares had a use by date. If you pass the shares issued by a company on to a secondary market, the clock starts ticking. What would that do to the valuation of shares – and why do we need to worry about it? Phil Dobbie discusses the concept with Professor Steve Keen, investigating what the impact would be on share markets and the companies that trade on them. Hosted on Acast. See acast.com/privacy for more information.

A big chunk of the trades that happen in shares are sold short. In other words, the trader takes a punt that the price will go down. In effect you sell something that you don’t own yet – like shares in the company – and you sell it to some mug who buys it off you at today’s price. Then when the price has gone down, you buy it at the lower price and deliver on your promise. Phil Dobbie asks Steve Keen whether short selling is destructive, or is it a useful balance that keeps share trading in check? Hosted on Acast. See acast.com/privacy for more information.

London and the southeast accounts for a third of the UK’s gross disposable household income. The rest of the country somehow scrapes by. But it’s clear to see why. The proximity to other businesses means investment in London creates a greater return than any other region. In this edition of the Debunking Economics podcast Phil Dobbie asks Professor Steve Keen whether the government should be involved more in regional investment, or will the laws of economics sort it out for itself. Hosted on Acast. See acast.com/privacy for more information.

Modern Monetary Theory states that’s, because the government of a country is the monopoly supplier of money, it has an unlimited capacity to pay for things and provide funds for other sectors. If the theory is right, why not provide enough money to ensure there is full employment, so full use is made of available labour? Phil Dobbie asks Professor Steve Keen whether he is a supporter of MMT. It seems he is, in part, but departs from the ideology when it comes to the theory relating to exports and imports. Hosted on Acast. See acast.com/privacy for more information.

Figures out in the US last week showed the unemployment rate had dropped to just 4.5 percent, a long way from the 10% rate back in 2009. Yet Donald Trump won an election, in part, because he was there to protect jobs for Americans. Phil Dobbie asks Prof Steve Keen What’s the problem when so many seem to be gainfully employed? The answer, it seems, is that you can do anything you want with statistics. Take a look at this graph to see his point: https://fred.stlouisfed.org/graph/?g=djl1 Hosted on Acast. See acast.com/privacy for more information.

Mark Perry, Professor of Economics and Finance at the University of Michigan, believes that raising the minimum wage will push costs up so high companies won’t be able to afford them. He wrote in his blog, “a $15 minimum wage maximizes the probability that an unskilled worker will be unemployed at $0.00 an hour instead of being gainfully employed”. So, is that the case? Prof Steve Keen argues he is making the mistake of many economists, applying a micro-economic argument to macro-economics. Find out how the Michigan professor got it so wrong. Hosted on Acast. See acast.com/privacy for more information.