Mentions John Quiggin

A nice little restatement of some basic facts:

I often hear progressives say that Modern Monetary Theory (MMT) is all very well, but given the real politic, within which these debates are contested, it is better to rely on mainstream understandings to make the case for more government spending on progressive goals.

I remind these economists of the way that John Maynard Keynes used the (erroneous) neoclassical concept of marginal productivity theory for labour demand in The General Theory, to allow him to concentrate on the supply side, where he believed the differences between his approach and the orthodoxy could best be highlighted.

It was a decision that he regretted when it became obvious that the orthodoxy manipulated the debate to categorise Keynes’ quibbles as the special rather than the general case.

And the result was the neoclassical synthesis which dominated macroeconomics for the next several decades and allowed Monetarism an easier path and then the current New Keynesian paradigm to emerge.

The essential message of Keynes was quickly lost because he made that sort of strategic error – using neoclassical framing.

Last November, however, Trevaunance Cove turned brown with sewage. Lifeguards described the stench as "unbearable". The utility company responsible — South West Water — said heavy rains forced it to release the sewage and storm runoff to avoid the local filtration system becoming overwhelmed.

But the pollution event was no one-off. Two months prior, discharge alerts were in place at more than 100 beaches around the country, and in 2021, there were more than 370,000 such releases of raw sewage by water utilities across the United Kingdom. That year, another company, Southern Water, was fined a record 90 million pounds ($170 million) for dumping 21 billion litres of untreated sewage into protected marine areas off the southern coast of England.

Rivers and lakes have also been used as dump sites; there are credible reports that untreated sewage is spilled into natural waterways every two-and-a-half minutes. As temperatures across the UK have risen, there has been a growing backlash against the government's inability to fix the problem.

At the heart of the scandal is a decision taken in 1989 to sell off the country's water and sewerage industry.