Debunking Economics - the podcast

Governments everywhere are preoccupied with keeping their spending under control. We are conditioned into thinking about the massive levels of interest being paid on the money that our governments owe. In this edition of the Debunking Economics podcast Professor Steve Keen explains to Phil Dobbie why we should quit worrying – governments can create money through their central banks. He explains the process in detail. The only concern is when money is owed in a foreign currency – again, Steve explains why. The upshot is, we should be less concerned about government debt and more worried about our trade deficit. Hosted on Acast. See acast.com/privacy for more information.

The G20 is meeting in Berlin right now. With expectations of any constructive outcomes set to low, maybe there’s a better way forward. In this edition of the Debunking Economics podcast Phil Dobbie and Prof Steve Keen work through four ideas that could change the way the economy works – for the better. Phil suggests ideas related to climate change tariffs and a global minimum wage, whilst Steve looks at trade imbalances and a new reserve currency. Hosted on Acast. See acast.com/privacy for more information.

In this edition Prof Steve Keen explains to Phil Dobbie how tax levels are really more to do with the government controlling the level of inflation in the economy and less to do with raising revenue to pay for their own expenses. Yet, few people see it that way. Once you do, it makes sense to see tax as an instrument that manages the strength of the economy, in unison with interest rates. Look at it like that and you see that tax should be low when economic growth is slow, not higher to cover the subsequent shortfall in government revenue. Hosted on Acast. See acast.com/privacy for more information.

The world’s Central Bankers have been meeting up in Portugal this week and seem to have colluded on the idea of raising interest rates sometime soon. It looks like the UK, Europe and Canada are in on it but, Professor Steve Keen reckons, they’ll soon be eating humble pie. Any rise in rates right now will quickly be reversed, because the bankers are ignoring the role of credit. Find out why that is so important in this free edition of the Debunking Economics Podcasts with Phil Dobbie and Steve Keen. Hosted on Acast. See acast.com/privacy for more information.

Automation, it seems, is taking its toll. For example, based on its turnover Amazon employs less than half the staff levels of the broader retail sector – and they are driving efficiency gains all the time. So, is the answer to tax robots – one of the ideas from failed French Presidency candidate Benoît Hamon. No, says Professor Steve Keen. He suggests to Phil Dobbie that the solution is a universal basic wage. But won’t that remove any incentive to work and innovate? Hosted on Acast. See acast.com/privacy for more information.

The EU and IMF have just bailed out Greece again, so it can avoid defaulting on the interest payments for its 300 billion Euro debt. The lenders will receive their payments, whilst Greece continues to live through tough austerity measures in the vain hope of the economy recovering at some point. That seems unlikely – GDP per capita is sliding and the smarter folk are leaving the country. Phil Dobbie asks Professor Steve Keen how this particular Greek tragedy will end. Violently seems to the only logical conclusion. Hosted on Acast. See acast.com/privacy for more information.

It’s the catch cry for those who like to spread fear – Corbyn in power would take Britain back to the 1970s, when Britain experienced runaway inflation, the three day week, class hatred and soviet style stagnation. Yet, as Prof Steve Keen explains to Phil Dobbie in this free edition of the Debunking Economics podcast, the downturn in the seventies was less to do with government policy and more to do with a turnaround in credit. Households that had been increasing their borrowing in the late sixties, started to pull back, taking money out of the economy. If you’re not convinced the seventies situation was the result of a Labour government and powerful unions, you have to ask, why was exactly the same thing happening in most of the western world? Hosted on Acast. See acast.com/privacy for more information.

In the UK salaries are now rising slower than inflation – which means living standards are going backwards. Around the world salaries seem to have stagnated, even though unemployment is low. Conventional economic theory suggests that more competition for employees should push wages higher. Phil Dobbie asks Professor Steve Keen why that’s not happening. The cause, Steve suggests, is to do with the demise of union power and the rise of the financier. The answer is more to do with reducing debt.  Hosted on Acast. See acast.com/privacy for more information.

Professor Steve Keen has predicted a house price crash in Australia before, but this time he is more certain than ever. Even the Reserve Bank of Australia has been flagging concerns about the country’s rising household debt and inflated house prices. In this edition of the Debunking Economics podcast Phil Dobbie asks Steve why he is so certain this time, and what can be done about it. Hosted on Acast. See acast.com/privacy for more information.

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.