This Author has just finished reading the Posting and Commentary written by HedgeFundGuy and Contributors, HedgeFundGuy criticizing Galbraith. The Posting and Commentary was indeed informative, but it produced fear inside myself that so much of my own musings could be equally miscontrued. I decided I should set down certain basic intellectual beliefs of myself, which guides my economic speculations.
1) I do not believe in Monetarist policy. Inflation, Growth, recessions, and economic performance are not governed by the liquidity of Money Supply. It is directly caused by unfunded Government Expenditures (read as Deficit spending). It magnifies a form of Money (think Treasury instruments), also duplicated by State and Local Governments. The expenditure of such raised Funds incite People to believe they are better off than they are. b) The very expenditure of such Funds artifically increases the draft upon Resources, making Production more expensive (shifting the entire Supply line for the Country).
2) The argument that large Corporate structure do not allow for greater Profits is fallicious. Those Profits are hidden through Corporate acquisitions and expansion of the total amount of Corporate stock. Evaluation of real Profits-taking by Corporate concerns will determine that original Sector performance has been increasing in total Dollar Profits receipts above the level of Inflation, this also creating additional Inflationary pressures.
3) The real Cause of Recessions lie in Corporate overexpansion leading to the absence of Corporate financial reserves in the face of overdraft of Resources--the higher Costs of Resources curtailing Production operations.
4) The worst Scenario for Recessions is a combination of Corporate overextension coincident with Government overspending. The real Private Sector response to Corporate overextension is Stockholder procedural control to force distribution of Corporate Profits through award of Dividends to Stockholders. The real Public Sector response to Government overspending lies in Voter demands to stop the Spending.
5) The Tax Code of this Country should be simplified. The current Code fosters Corporate overexpansion to gain what are basically idiotic Tax credits. Government can and should give Short-term, low-Interest loans to Business concerns rather than Investment Tax Credits.
I could probably develop endless assessments of this order, so I will stop here. An additional comment I would make is that while I do not fancy myself in the same league with eminent Economists, I hope this short rendition will in some way preclude potential Readers from making the same misjudgements about my Writings, as came from the Posting and Commentaries by HedgeFundGuy about the mentioned Economists. lgl