Monday, September 3, 2012

Debunking the propaganda about public investments

I read with interest Mariana Mazzucato's fine piece in today's Guardian. The title -- "Public money spent on 'digging ditches' won't stimulate the economy" -- initially put me off (after all, Keynes showed that was not true), but the subtitle -- "State spending to boost growth needs to go beyond mere investment – it must transform the economy" -- gets at the real subject of the article. (Nicholas Stern makes a similar argument regarding public investments in dealing with climate change, in particular in part 2 of this interview.)

Being lazy and also preparing for the start of classes this week, I wasn't going to write anything about Mazzucato's article, and my laziness paid off as Yanis Varoufakis wrote a much better piece about it than I would ever be able to, and it prompted me to add a link to his excellent blog in the list of blogs on this page.

By the way, I wrote earlier about Varoufakis's remarkable book Foundations of Economics: A Beginner's Companion. Check it out!