Bob tackles some Keynesian / MMT fallacies that have resurfaced in light of the response to the coronavirus. In particular, he responds to Larry Summers who viewed the lockdown as being akin to workers staying home over the weekend, and then to Neil Irwin on Twitter, who approvingly retweeted a thread arguing that it was mathematically *impossible* for state governments to have saved ahead of time in preparation.
Mentioned in the Episode and Other Links of Interest:
- Bob’s article, “Why the Current Unemployment Is Worse than the Great Depression.”
- Neil Irwin’s tweet, praising the tweet thread from former Fed research assistant Amarnath, who claimed that it is literally impossible for us all to save more.
- Previous articles from Bob showing what’s wrong with the “paradox of thrift” and with the MMT argument that net private savings = government deficits. Also, an article from Bob showing why the community can save more on net.
- Sample issues of the Lara-Murphy Report.
- Help support the Bob Murphy Show.
The audio production for this episode was provided by Podsworth Media.