Debunking Economics - the podcast

If you follow the science of Cliodynamics, the events unfolded in the United States the last few years have been entirely predictable. This week Prof Steve Keen talks to Phil Dobbie about the work of Peter Turchin, who has built mathematical models to track changes in society based on economic, demographic and political changes. How much can it tell us about the rise in populism that brought Donal...

Earlier this year Phil Dobbie asked Steve keen for his predictions for 2020. Without a whiff of COVID-19 IN THE AIR, Steve talked of a capitalist economy on government life support. On that he was pretty much on the mark. So what of 2021. In this free edition of the Debunking Economics podcast he explains the reasoning behind his five predictions for the year ahead: 1. Recession in Europe and Amer...

As the US government argues over whether to spend almost another $1 trillion to stimulate an economy ravaged by COVID-19, and the UK government likely to increase public sector borrowing by GBP215 billion this year, plus central banks lowering interest rates to often below zero, is there a chance our response to COVID-19 has been over the top? Some argue that the response, when the economy finally...

Would the UK be better off with tariffed trade with Europe? The public discourse seems to be focused on how to remove tariffs, but Prof Steve Keen argues that if they are sufficiently high they will encourage domestic production across a variety of industry sectors. The more complex the mix of industries the more self sufficient an economy becomes, which also increases the potential for developing...

The UK has cut its foreign aid budget to help pay for the domestic costs of COVId-19. Is that a bit of a callous move? That’s a rhetorical question, but there’s a more meaningful question on today’s podcast – is there a better way of managing foreign aid. Steve Keen has worked with agencies dealing with foreign aid, and discusses the failings of the process with Phil Dobbie. Corruption is one issu...

Steve Keen and Michael Hudson have both been arguing for a debt jubilee for some time. Now, as COVID-19 hits the poorest hardest, and leaves those with money better off than before, is this the right time to write off debt? Can the economy recover without it? After all, its stagnated since the 2008 global financial crisis. If you were to have a debt jubilee, how would you do it. Steve and Michael...

It’s a first for the Debunking Economics podcast, but we think it’s not a bad idea – a bunch of listener questions to make sure we are all on the same page. Suneil Basu wrote to ask if we could cover off the differences between Keynesian and Post-Keynesian economics, and the different approaches of the Chicago and Austrian Schools. Also, how did neo-classical economists claim the centre groun...

The world economy has undergone massive transformation with COVID-19. There will be an even bigger upheaval as climate change takes hold. How do we prepare for the economic changes it will bring about. The way of coping with the virus emergency has been unprecedented levels of government intervention. Does that mean the only way to transition to a greener economy is through public funding, or can...

The world economy has undergone massive transformation with COVID-19. There will be an even bigger upheaval as climate change takes hold. How do we prepare for the economic changes it will bring about. The way of coping with the virus emergency has been unprecedented levels of government intervention. Does that mean the only way to transition to a greener economy is through public funding, or can...

Despite intensive talks Michel Barnier says there are still clear divisions between the EU and the UK over an agreement post-Brexit, which is less than two months away. This week Prof Steve Keen, a Brexit supporter, says the whole affair should be put on hold whilst the world copes with COVID-19. Phil Dobbie asks whether a deal will ever be reached anyway? Did the UK really think it would secure a...

Governments spent up big at the start of the COVID crisis, but they are being a bit more canny with their money right now. Meanwhile, central banks are seeing the need to step in, with monetary policy being used to fill the gaps where fiscal stimulus isn’t forthcoming. But are they kidding themselves? Can the economic consequences of a pandemic really be filled by a central bank dropping interest...

There’s a commonly held misconception that the Bank of England is creating extra money and pumping it into circulation through quantitative easing. In this week’s podcast Prof Steve Keen explains how QE amounts to nothing more than an asset swap – so no new money is created. The only way money can be created is through commercial banks issuing loans – something they are not doing much of – or gove...

Wealth in UK is very concentrated I the southeast of England. In other countries, the structure of administration and banking has seen a more diversified economy. So what could change to make income and productivity more equable throughout the UK. In this week’s Debunking Economics podcast Phil Dobbie talks to Prof Steve Keen about the devolution of Scotland, the role of local administrations, Ger...

Politicians, the media and most economists are obsessed with government debt – now more so than ever. But, as Modern Monetary Theory has shown, there is no issue with governments perpetually running budgets in the red, providing the extra money supply resulting from it is not inflationary. This week Phil Dobbie suggests some of the debt issued in the form of bonds could be given to the public as a...

Would a job guarantee resolve the battle between inflation and unemployment? Conventional economists argue that when the labour market is tight – and there are few jobs to go around – people ask for more money and that creates inflation. When there are very few jobs – like now – inflation is much lower. The counter argument, from Modern Monetary Theorists, is that a job guarantee would reduce this...

The US Federal reserve this week indicated that interest rates will remain close to zero through till 2023, at the earliest. Why because inflation is subdued and they don’t expect it to pick up until employment returns to normal. But what’s normal? Central banks work on the principle of NAIRU - the nonaccelerating inflation rate of unemployment – but they never seem to be able top in down exactly...

There are the deniers who will argue that mankind has no influence on climate, but worse yet, there are economists who argue the impact will be so small the cost of trying to prevent it will be far greater than the consequences of living with it. That’s the line taken by joint Nobel prizewinner William Nordhaus. In this week’s edition of the Debunking Economics podcast Prof Steve Keen takes Phil D...

In Japan Shinzo Abe has announced he is stepping aside because of ill health. Will this mark the end of Abenomics, the term used to describe his three-pronged approach to fighting the country’s ailing growth rate and deflation? Some point to the continued slow growth as a sign that his approach hasn’t worked, but on today’s podcast Prof Steve Keen tells Phil Dobbie, things would have been much wor...

Governments the world over are spending like crazy to try and steer their economies through the COVID-19 crisis. Whether it’s the fiscal policies of the government or the monetary policies of the central bank, it all still revolves around using money that wasn’t around a few months ago. So how much of what is happening is described by Modern Monetary Theory – and how much more could be done if we...

We’re travelling less, staying away from the office, and spending more time at home. In the short term, it seems, those who still have money are spending a slug of it doing up their house, or moving to a bigger one, with outdoor space. House prices in the UK are growing much faster in Scotland, Wales and regional England than they are in London, for example. So, will escalating house prices be one...

The agreement by EU members to issue grants and loans to member states suffering the most from COVID-19 was a turning point for the union. Whilst US politics sees continued bickering on the size and form of a stimulus package, across the Atlantic a diverse range of countries have come together to agree a way forward. Is this a major turning point for the EU. Come we see fiscal and monetary union t...

The UK’s Home Secretary Priti Patel has revealed the government’s plan to curb migration to the UK, with a universal points system. It’s going to be hard for anyone to migrate to Britain without a job lined up that pays over £25k. Phil Dobbie asks Steve Keen whether it’s a good thing to set a minimum wage for migrants. After all, having we been exploiting workers, paying too little for jobs the lo...

Remember climate change? Believe it or to, even with COVID-19 dominating our consciousness, the environment is still a thing. A new report by NGFS - a voluntary group of central bankers concerned about the environment – reckons the world’s global GDP could fall by 25 percent by 2100 if we do not do more to reduce greenhouse gas emissions. Whilst their intent might be right, Steve Keen is concerned...

Income tax, sales tax, council tax, car tax, capital gains tax, inheritance tax – there’s just so much tax! This week Phil Dobbie talks to Prof Steve Keen about the whole idea of taxation. For many it’s simply a form of revenue raising for governments, but once you accept that governments can create their own money in their own currency, the role of taxation changes. This week we look at the role...

The world has become dependent on trade with China, so much so that . We’ve become so we’ve been prepared to overlook human rights violations. But is that about to change? President Trump has managed to convince world leaders to ditch Huawei from their telecoms networks on fears that their equipment could be snooping on us. But, could it also be that Huawei makes twice as much money as the US’s Ci...