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Propaganda, taxation etc.-


To my opinion, (not a scientific opinion, but created by watching people around me), i don’t believe in tools like propaganda. It may work in the short term, on the long run the truth will win. But then who has the time to wait for this “final” victory?

  • Patrice Ayme Says:
    Dear Eugen: Propaganda is everywhere. Islamophilia, Krugman style (Ibn Khaldun invented everything! Aristotle, Polybius never existed!!) is also propaganda.Bad education can lead to mass death (recent example: Nazism, Stalinism, Maoism; and even the non-intervention of the USA in 1939, 1940). Just ask the departed souls of millions of American Indians, who just did not have the means to resist from…lack of education. The Japanese, by contrast, were making their first guns, 22 years after the first contact with Europeans… They were technologically more educated (a bit the same in Dahomey, too!)
  • pshakkottai Says:
    Hi Eugine R:
    Propaganda is highly effective. Monetary sovereignty is almost unknown for example.
    There are 2 kinds of debt. Private debt is bad. Govt debt (the DEFICIT) is good. They move in opposite directions. See the plots in
    Jobs are created when govt produces more deficits. Empiirically 1$ of deficit produces $5 of GDP. The created money will find its way into the economy (the private sector.)
    Welfare is a peoples’ need. If no welfare why do we need a govt?
    Deficits automatically require a work force and produce prosperity.
    Regulation (a peoples’ need) is required to prevent poisoning of the biosphere.
    Taxes are not required for the federal govt which can create all the money required.
    MORE deficits will cure the economy painlessly with zero risk.
    Money is merely a token and a bookkeeping tool.

    • Patrice Ayme Says:
      Agreed, Partha. That’s why economy ought to be built around energy, that is, work, employment. Everything else, including property, is convention.
    • EugenR Says:
      Dear Pshakotay, Is it really all so easy? If so why should the government bother to collect taxes at all, and more than that, if the government distributes freely money (welfare), why to bother to go to work at all?
      If you have answer how it can work i am happy to listen. Or maybe you say, the government should distribute the money only to chosen ones (Plutocrats), while the others not and let those others go to work? Do you like this solution?
      To be more serious, government deficit can be helpful to economy and start economic growth, if it is a temporary and marginal phenomena during times of recession, when part of the production capacities are not utilized. Yet even then the increased government expenditures has to be used very carefully not to create a long term precedents, that may destroy the production capacity of the economy. Like if you are too liberal with unemployment allowances. This is why at times of recession the governments prefer rather to invest the deficit in infrastructure than to consumerism.You probably wonder how come the US Fed prints so much money and still there is no inflation in US. The reason is that this newly printed cash money is exchanged against government bonds and securities. Since the money in circulation is mostly created by the commercial banks and not by the Fed, the question is what the commercial banks are doing with this additional cash as compared to what they have done with the government bonds, meaning did they accept the bonds as securities against loans and by doing it the bonds were very similar to cash? Probably yes. It is a very common practice. What i know for sure is that the extra cash the Fed poured into economy, went back to the Fed in form of increased commercial banks reserves deposited in the Feds vault and had mainly negative influence on the monetary liquidity. This is why the monetary easement did not work as it was expected. This phenomena will exist until the banks and the borrowers feel that the economic entities are over-exposed to credit they took in the past.

      • Patrice Ayme Says:
        dear Eugen: The government can run the full gamut, from total command and control to total freemarket. Yet, in the latter case, still submitted to the law. So, only C&C can be total. The free market is just a toy. So is currency. I’m not talking out of fishy theory, just, but also direct historical examples.

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