Re: Call for a NEW Economics


Thanks for the comments, let me clarify: (caps to disclose changes)

We, the world, need a new "economics" with at least
these foundation premises:

1. What matters IN ECONOMIC DECISION-MAKING is real goods
and services, LABOR AND MATERIAL, not "money."

When Hitler wanted to rebuild Germany and its war machine
he did "do it" and let the bankers attend to the fact that
there was no money to do it.

When FD Roosevelt had to build a war machine after
Dec. 7, 1941 he had NO money, ignored that fact and
built a huge war machine.

What mattered in both cases was the existence of labor
and material to do the job.

Current example:

Why cannot presently-impoverished Iraq not do the same?
Why should hundreds of thousands of healthy young Iraqi
men be unemployed? It is erroneous economics theory
that causes this, nothing else. Put them all to work
rebuilding their country -- it'll keep them out of trouble.


2. What matters IN DESIGNING AN ECONOMICS THEORY
is the state of the bottom decile, not the average or median.
(re: gdp, unemployment, etc. etc.)

Consider what is happening in Latin America where the poverty
at the bottom is erecting socialist governments. How might
global free trade be evaluated differently and trade treaties
differ if the bottom decile were a basic concern of economic theory?

---- now, now --- that does NOT imply a "welfare state" !

Mason C

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