Yearly Archives: 2012

John Henry: A Conservative Defense of a Jobs Guarantee Program

By John Henry, Professor of Economics at UMKC. Originally published at New Economic Perspectives.

John Locke is the “father” of property rights theory, and continues to be referenced in defense of private property. In the second volume of his Two Treatises of Government, Locke specified the conditions that must be satisfied in order for property to be deemed legitimate. Initially, any property taken from “the commons” (public or collective property) had to be based on one’s labor that was expended to improve that property. (While Locke focused on landed property, his argument applies more generally.)

But, there were two further conditions that had to be met, labeled the “prejudice” and the “spoilage” constraints—and these were seen as moral constraints. Essentially, the prejudice constraint means that no one can be disadvantaged by another’s appropriation of property; all must benefit, though some may benefit more than others. The spoilage constraint connotes that none can seize property beyond that which can be used by one’s own labor. If either constraint is not satisfied, two options are proposed: the disadvantaged have the right to revolt and overturn a private property regime, or government has the obligation to step in to rectify the situation in the interests of the community at large.

Now, it is clear that any large property holdings—giant farms, the modern corporation, etc.—violate the spoilage constraint. Locke himself was aware that there was a problem in his formulation in that, if adhered to, the capitalist accumulation process could not proceed. (He tried to wiggle out of his self-imposed dilemma by arguing that the accumulation of money—gold for him—was morally permissible as it didn’t violate either the prejudice or the spoilage constraints; anyone could accumulate money, and money (gold) didn’t spoil. For a critical evaluation of Locke’s proposed solution, see Bell, Henry, and Wray 2004.) The main issue addressed here is whether unemployment violates the prejudice constraint, thus calling the continued adherence to a private property regime into question. If so, from a purely Lockean standard, then government must undertake a program to guarantee full employment in the interests of society as a whole—and this is a moral obligation.

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John Cusack & Jonathan Turley on Obama’s Constitution

Originally posted by Shannyn Moore of Just Another Girl from Homer.

John Cusack was thinking all this when he talked to Jon Turley, one of the smartest and intellectually honest authorities on the Constitution. — Shannyn Moore

* * *

Jonathan TURLEY: Hi John.

CUSACK: Hello. Okay, hey I was just thinking about all this stuff and thought maybe we’d see what we can do to bring civil liberties and these issues back into the debate for the next couple of months …

TURLEY: I think that’s great.

CUSACK: So, I don’t know how you can believe in the Constitution and violate it that much.

TURLEY: Yeah.

CUSACK: I would just love to know your take as an expert on these things. And then maybe we can speak to whatever you think his motivations would be, and not speak to them in the way that we want to armchair-quarterback like the pundits do about “the game inside the game,” but only do it because it would speak to the arguments that are being used by the left to excuse it. For example, maybe their argument that there are things you can’t know, and it’s a dangerous world out there, or why do you think a constitutional law professor would throw out due process?

TURLEY: Well, there’s a misconception about Barack Obama as a former constitutional law professor. First of all, there are plenty of professors who are “legal relativists.” They tend to view legal principles as relative to whatever they’re trying to achieve. I would certainly put President Obama in the relativist category. Ironically, he shares that distinction with George W. Bush. They both tended to view the law as a means to a particular end — as opposed to the end itself. That’s the fundamental distinction among law professors. Law professors like Obama tend to view the law as one means to an end, and others, like myself, tend to view it as the end itself.

Truth be known President Obama has never been particularly driven by principle. Right after his election, I wrote a column in a few days warning people that even though I voted for Obama, he was not what people were describing him to be. I saw him in the Senate. I saw him in Chicago.

CUSACK: Yeah, so did I.

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Quelle Surprise! Former JP Morgan Chairman Offers Dubious Defenses of Big Banks

Ordinarily, it might not seem worth the bother to debunk yet another piece of bank propaganda. However Thursday’s op ed by former JP Morgan Chase chairman William Harrison, “Don’t Break Up the Big Banks,” recites a classic set of time-worn canards. As regulatory compliance expert Michael Crimmins said via e-mail, “It’s sounding desperate that they’re dragging Harrison out of retirement to spout this drivel.”Thus shredding this piece makes for one-stop shopping on this topic.

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Mark Ames: Tracy Lawrence: The Foreclosure Suicide America Forgot

Every week, it seems there’s another tragic story about a suicide or murder-suicides linked to foreclosure trauma. Some of the more spectacular murder-by-foreclosure stories the past few years have been collected by a blog called “Greenspan’s Body Count”—others, myself included, have been writing about these terrible stories of class warfare being waged by the only side fighting it, and winning it, as Warren Buffett rightly said.

Before the 2008 crisis, the media paid little attention to the death toll taken on Americans by the decades-long class warfare waged against the 99%. Now they’re impossible to ignore.

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Is an Anti-Austerity Alliance of Left Neo-classicals and Post-Keynesians Possible? Is it Desirable? (Part 2)

By Michael Hoexter. Cross posted from New Economic Perspectives. Part 1 of this post is available here

United as they are in their critique of neoclassical economics, it would be a mistake to portray post-Keynesians as united among themselves, a further complication for the emergence of any unified message from anti-austerity economists.

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Draghi Does His Best

By Delusional Economics, who is horrified at the state of economic commentary in Australia and is determined to cleanse the daily flow of vested interests propaganda to produce a balanced counterpoint. Cross posted from MacroBusiness

Two weeks ago I wrote a post about Mario Draghi and what appeared to be ECB’s step across the Rubicon into the arena of politics and fiscal policy in order to force Europe’s politicians to break the ‘chicken and egg’ stand-off that has plagued Europe for over a year. In that post I described his actions as a bluff called of both sides of the divide:

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