Mindorenyo

Thursday, December 06, 2012

Budget Deficits Drive Profits

My understanding, via Bill Mitchell and Michael Kalecki is that budget deficits drive corporate profits.  Corporate CEOs aren't good at macroeconomics and most don't understand this. Their efforts to reduce fiscal deficits will ultimately backfire (be careful what you wish for).  More significantly, the U.S. pension system is now dependent upon corporate profits, through 401K and similar plans which encourage saving via stock market investments.

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