The Lighthouse | budget deficit

Debunking Modern Monetary Theory (MMT) & Understanding it First

By Erik Zimerman On April 21, 2014 · 56 Comments · In The Whiskey Room

Firstly, your humble writer, who was distracted first by untimely (though much enjoyed) reserve duty, and then quite a heavy workload, failed to convey his profound and (at the time) prophetic commentary on important recent events; Putin and Ukraine, the capture of El Chapo, and so forth. Though we shall hopefully revisit some of these in any event, a good way to get back into rhythm is write about a subject less pressing on the clock. And what better field than the “Voodo” mysteries on the attempts at making a science out of economics. In recent years, an imaginative group often going by “MMTers”, and usually finding the amiable and articulate Mr. Warren Mosler leading their charge, have caused quite a stir, at least among the more thoughtful part of the electorate. Firstly, we must point out that for the most part, proponents of MMT insist that it is not an ideology or even a proponent of any specific economic policy, but rather merely aims to describe the way money works in the modern world; hence Modern Monetary Theory. Specifically, they refer to a fiat currency regime (with the fiat as legal tender, and taxes) with a free-floating exchange rate. [...]

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A Major Reason for the left-right disconnect: The Worse Kind of Tax – And a much better Alternative

By Erik Zimerman On August 23, 2012 · 3 Comments · In The Whiskey Room

It probably comes with little surprise, that the "worse kind of tax" being referred to is the dreaded Income Tax; and with good reason, it is true. This article is the first in a series in which we will tackle ever more complex economics related and financial subjects to point out the increasingly inadequate systems most of the world is functioning under. They encourage boom-bust cycles, constant devaluation of a nation's currency, corporatism, debt, a constant unquenchable need for economic growth, government dependency, and the erosion of personal freedoms. At the same time they discourage that very same economic growth, true capital investment, work, savings, stability, individual risk taking, and self-reliance. Taxation is a good place to start. It is very interesting to note that large part of the disagreement between the right and the left on this matter (on the rate of income tax, not its existence), comes from a skewed perspective on the issue that I have never seen discussed. It will be herein.

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Liberals at success?

By Erik Zimerman On April 2, 2011 · Add Comment · In Against the Wind

Why North Dakota May Be the Best State in the Country to Live In by Carla Fried Thursday, March 31, 2011 Full Article Lowest unemployment in the nation, best job growth, lowest default rate, low violent crime and high third higest GDP growth! Today’s headline should be easy to explain… Obviously, this must because its the most multicultural and diverse state…oh no its over 90% white. Hmm maybe because it has the most progressive liberal policies that allow for jobs, regulation and fairness for all…oh no its one of the most consistently republican states in the country. Surely the sales tax is very high, because in California (which is collapsing in every way) it is only near 10% and there is a gigantic budget deficit. Hence the mighty Brown is about to raise ’em some more. To afford such a great standard for all the population in ND, consumers must be taxed quite a lot. Yes? Oh, no its only 5%, half of CA’s and they have large surpluses. Well, for sure, as Bill Maher must know, its because it has the least loony religious people, and all these enlightened vegetarian secular people grace its land without committing crimes, paying [...]

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Debunking Modern Monetary Theory (MMT) & Understanding it First

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Debunking Modern Monetary Theory (MMT) & Understanding it First

A Major Reason for the left-right disconnect: The Worse Kind of Tax – And a much better Alternative

Liberals at success?

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