Wednesday, February 25, 2015

"Disgorge the Cash" at the Roosevelt Institute

I have a working paper up at the Roosevelt Institute, as part of their new Financialization Project. Much of the content will be familiar to readers of this blog, but I think the argument is clearer and, I hope, more convincing in the paper.

The paper has gotten a nice writeup at the Washington Post, and at the Washington Center for Equitable Growth.

UPDATE. And in the International Business Times.


  1. I just read it, and found it fascinating. It should be no surprise that it's getting good writeups.

    For me, personally, it was the concept of rentier opportunity costs that had me spazzing, because I was thinking that this drives what sort of profits (nature, not amount) a corporation wanted, and that drives a corporation's decision making as to who should pay for the value generated~and not by testing any marketplace. For someone who provides content on the internet, aren't individual sales to people in the aggregate capable of generating a higher price (more total profits) for a corporation's services rather than selling data to some oligopsony with finicky consumption habits? Given the whole history and dynamics of paywalls, I have to wonder about whether rentier opportunity cost, normalized throughout business society, isn't a kind of implicit barrier to entry that gets enforced, whether you have a corporation, limited partnership, or sole proprietor. Customers expect whatever they are socialized to. Other companies in your niche are structured to accommodate large players that have rentier expectations, so forth and on.

    Eeeh, might not be important thoughts, but I really did like the fizz in the head, so thanks again.

  2. Any response to Ryan Decker's (fairly standard neoclassical) critique? Which boils down to: "What do the shareholders do with the money if not invest it elsewhere?"

  3. Good question. I'm writing a response now, but it comes down to:

    1. We know that it does not flow to investment elsewhere in the economy. (That's why include the aggregate data.)
    2. Some of it does go to higher consumption by capital-income recipients -- we know that there has been a disproportionate rise in consumption spending by higher income households.
    3. Some of it ends up as incomes in the financial sector.
    4. Some of it disappears, in the sense that lower investment leads to lower aggregate output. In the simple Minsky-Kalecki story, we can imagine that firm A's decision to reduce investment and raise shareholder payouts reduces profits at other firms, and if we trace this process throughout the economy we end up with a situation where the aggregate effect of increasing the share of profits paid out is to reduce total profits and leave total payouts unchanged.

  4. I have been a victim of too many scammers out there trying to get this blank card,which made every one of us who seek this blank card is fake and doesn’t exist but not when i meet with ATM HACKERS WORLDWIDE {}. I told him that i wasn’t ready to send any fee to him but he made it clear to me that will be difficult to get it without the fee but when he gave me reasons, i decided to try him for the last time and he gave me 4 working days to get the blank card. I doubted and believe i ve lost it all, but to my great shock i heard my bell ringing and i went to open the door and behold it was a parcel dispatcher and i look into the parcel when he left there was my blank card enclosed, i did used the card has instructed and today i am a living testimony to this magic blank card. Stay away from scammers and contact email for your real and existing blank card. {} Or call +2348133873774

  5. A lot of us are still unaware of the recent development of the Blank ATM card.. An ATM card that can change your financial status within few days. With this Blank ATM card, you can withdraw between $1000-$10,000 daily from any ATM machine in the world. There is no risk of getting caught by any form of security if you followed the instructions properly. The Blank ATM card is also sophisticated due to the fact that the card has its own security making your transaction very safe and untraceable. For more info contact us with the below address and you can also watch our YouTube to read customers review.

  6. Our Persian felines are fed a high-quality diet, necessary feline formulated vitamins, mineral supplements and provide plenty of daily attention, kittens care and grooming Here at Marko Persians our cats and kittens are happy, sweet love bunnies, therefore, well socialized Healthy and exquisitely beautiful and unmatched in the Silver Doll Face Industry. Specializing in CFA Persian kittens meeting the breed standard with several coat colors and coat pattern – shades

    Persian Kittens for sale near me
    Persian Kittens for sale
    Persian Kittens for sale

  7. สล็อต Make way for a time of fun and excitement.