Debunking Economics - the podcast

In this edition of the Debunking Economics podcast we test Donald Trump’s accusations that China, Japan and Germany are manipulating their currencies – something he hates, of course, because it makes it harder for him to achieve his aim, of returning the US to a positive balance of trade. It’s a big undertaking. Is he right that these countries have an unfair advantage over the US and, if so, will a tariff barrier really rectify the problem, or just start a trade war? Hosted on Acast. See acast.com/privacy for more information.

Donald Trump has talked about a 20 percent tax on exports from Mexico to help pay for the wall, but has also spoken about a broader tax on all imports. Many fear it’s a form of protectionism that could spark a trade war, but perhaps they are misunderstanding the intent of Trump’s plan. It’s possible he is following the thinking of Oxford professor Michael Devereux who argues that corporate tax should be applied where consumption happens, rather than where profit is generated. That would mean, irrespective of where goods are made, if they are consumed in America, companies would be taxed. Companies that tried to manufacture elsewhere and sell to the US could end up being taxed in both countries, so it heightens the incentive to produce locally. Hosted on Acast. See acast.com/privacy for more information.

The Bank of England, like many central banks, has used Quantitative Easing as a tool to try and engender growth in the economy. It’s a tool they had to resort to when sustained low interest rates failed to achieve the desired outcome. In this podcast Phil Dobbie talks to Steve Keen about how QE is, why it’s failing and how to should be redesigned. Hopefully the Bank of England will listen, along with the Treasury. In fact, the UK’s Treasury Committee is running an inquiry into the Effectiveness and Impact of post-2008 UK Monetary Policy and we discuss Steve’s submission in the podcast. Hosted on Acast. See acast.com/privacy for more information.

You’ve probably seen them – emails telling you now is the time to buy gold. When currencies collapse, gold is the safe-haven that speculators turn to. In this episode, Phil Dobbie explores the idea of stocking up with gold, with Professor Steve Keen. Is gold safer than keeping money in a bank? Is it premature to buy gold right now? What are the signs that an economic downturn and banking crisis is occurring? But buying gold isn’t the answer – reducing your level of debt is. Hosted on Acast. See acast.com/privacy for more information.

It’s very easy to look at the big salaries in the city and compare it to the average wage and assume bankers are taking us for a ride. But, for time immemorial we have needed money as a more effective means of trade than bartering. Who wants a chicken egg in exchange for today’s paper? So, banks emerged as the intermediary that enables trade. But, as Prof Steve Keen explains to Phil Dobbie, banks don’t just act as an intermediary, they also create money, and focus on encouraging us all to build up debt. So, can we regulate banks to ensure they work in ways which are best for the community? Part of the answer, says Steve, is to see them focus more on equity than loans. Hosted on Acast. See acast.com/privacy for more information.

Phil Dobbie asks Professor Steve Keen about the role of public sector spending. We’ve learnt that the government can create money, through its central bank, and this is, in effect, pumping new money into the economy. The alternate approaches, tax increases or austerity, pull money out of the economy. So public sector spending is a good thing, particularly when the economy is experiencing hardship – but how do they determine what’s best to spend money on. Aren’t government’s notoriously bad at decided how and where to inject funds? Isn’t there a need to focus on productivity rather than pushing up wages? Hosted on Acast. See acast.com/privacy for more information.

The rich poor gap in modern society isn’t just related to income. In fact, recent statistics in the UK point to a narrowing of the income gap since the financial crisis. The bigger issue is the inheritance of wealth, giving some a head start and inflating house prices beyond the reach of many. In this edition Phil Dobbie asks Prof. Steve Keen whether a heftier inheritance tax is the answer. There’s discussion of the problems with that approach, how land tax is similarly distortionary, and a suggestion of a better way of narrowing the gap – but we’d better do something about it, before civil unrest reaches fever pitch. Hosted on Acast. See acast.com/privacy for more information.

Trump’s Presidency created optimism for many – those looking for work and investors who expect his infrastructure program will create untold wealth for the entire population. He reinforced that promise in his inaugural address, talking of new roads and highways and bridges, and the wall of course. Professor Steve Keen is a big supporter of this plan, but believes it’ll fail for one simple reason. The plan is accompanied by a determination to return the budget to surplus, pulling money out of the US economy and countering any benefits from his infrastructure plans.He talks to Phil Dobbie about his change in attitude to Trump’s administration – and what he think will happen next, including a recession in 2018. Hosted on Acast. See acast.com/privacy for more information.

Journalist Phil Dobbie and economist Steve Keen agree on lots of things, but fall on either side of the Brexit camp. One believes Britain should have remained to fight EU bureaucracy from the inside, the other suggests the community is fundamentally flawed, along with the concept of free trade, and will collapse soon anyway.In this FREE podcast Phil questions Steve on whether, irrespective of the ideology, Brexit will inflict a lot of short term hurt on many of those who voted for it. There’s also discussion on Theresa May’s 12 point plan, which both agree seems to ignore the opportunity and focuses on making the mistakes of the European partnership in other parts of the world. In other words, will Theresa May just make things worse? Hosted on Acast. See acast.com/privacy for more information.

This week Donald Trump becomes the 45th President of the United States. In this free edition of the Debunking Economics podcast Phil Dobbie asks Professor Steve Keen whether he will be good news for his country, particularly those struggling to find jobs in the rust belt of Middle America. Trump is planning a spending spree to get the country back on track, but who will pay and will it be possible to target projects on those who need the work the most? Hosted on Acast. See acast.com/privacy for more information.