For those not familiar with Godwin's Law it says:
"As an online discussion grows longer, the probability of a comparison involving Nazis or Hitler approaches 1"
Neil Wilson has suggested in a comment on the blog a new law, let's called it Godwin's Law of Economics, or as Neil does Godwin's Law (Economic Collary):
“As an online economic discussion grows longer, the probability of a comparison involving Zimbabwe, Weimar or Argentina approaches 1″
Seems right to me.
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And perhaps we also need Godwin’s Law of Socialism:
“As an online discussion of socialism grows longer, the probability of a comparison involving Venezuela approaches 1”
Venezuela is going through a torrid time at the moment due to right wing groups trying to depose the democratically-elected socialist government.
However, Chavez (and now Maduro) have tranformed the country and have made some staggering achievements.
Instead of sneering at Venezuela, as much of the mainstream media constantly indulges in, it might well be worth their while looking at the many accomplishments of the socialist government there.
North Korea more likely, from what I observed that seems to be their favourite. So predictable.
Re: the Weimar Republic comparison; there has always been much misleading interpretations of that event.
For one, it was a private bank, and not the government, that threw newly printed money at the countries claiming reparations from Germany despite the fact they knew the German economy had all but collapsed. As with most hyperinflations, trying to pay off the debt they owed by printing up millions of reichmarks caused a glut of German currency in the markets and collapsing it’s value.
It was an act of desperation to pay off hugely unfair reparations that caused Germany’s hyperinflation, not by the German government wildly spending money.
Except I can’t spell corollary properly.
“Except I can’t spell corollary properly.”
Best not to use words in writing that you can’t pronounce properly and “corollary” is a word I wouldn’t touch with a barge pole because it makes me sound drunk!
http://bilbo.economicoutlook.net/blog/?p=3773
You may be interested in this 2009 article on Zimbabwe.
It’s good
Always liked Godley’s law myself.
When it comes to financial assets. Everything comes from somewhere and goes to somewhere.
Monetary Economics 2007.
In a double entry sense, yes
But to presume that economics is just double entry is wrong
The double entry has to be right but economics is about more than the mechanics just as business is more than the ledgers that record it
The whole problem with mainstream economics over the last 100 years is that they have ignored the macro monetary framework that you have been discussing over the past couple of weeks on this site.
Keynes got that. People like to to save financial assets for some strange reason.
Savings = Unemployment according to the fundamental national accounting identity i.e. Output = Income = Spending.
Godley laid it out in that book including.Economic models with fully integrated double entry of flows and stocks of financial assets.
Oh dear. Looks like I’ll have to stop referring to political favouritism in privatisation as Mugabe Economics.
Don’t forget comparing the uk to greece