Karl Marx: The Philosophical, Activist, Economist Layers Overlap. They Always Overlap

David Glasner does the Lord's work in pointing out that David Graeber—well, it's hard to know what David Graeber does. It certainly does not include things I would call "doing one's homework", "thinking clearly", or "writing coherently". : David Glasner: Graeber Against Economics https://uneasymoney.com/2019/12/01/graeber-against-economics/: 'Graeber describe how he thinks that economists think about how banks create money, correctly observing that there is a debate.... "Only a minority—mostly heterodox economists, post-Keynesians, and modern money theorists—uphold... that... deposits themselves were the result of loans. The one thing it never seemed to occur to anyone to do was to get a job at a bank...". But since James Tobin’s classic essay “Commercial banks as creators of money” was published in 1963, most economists who have thought carefully about banking have concluded that... deposits created by banks corresponds to the quantity of deposits that the public... chooses to hold.... Graeber... acknowledges that the weight of professional opinion... says that loans create deposits. He... triumphantly cites a report by Bank of England economists.... "Before long, the Bank of England... rolled out an elaborate official report called 'Money Creation in the Modern Economy', replete with videos and animations, making the same point: existing economics textbooks, and particularly the reigning monetarist orthodoxy, are wrong. The heterodox economists are right. Private banks create money. Central banks like the Bank of England create money as well, but monetarists are entirely wrong to insist that their proper function is to control the money supply..." Graeber, I regret to say, is simply exposing the inadequacy of his knowledge of the history of economics. Adam Smith in The Wealth of Nations explained that banks create money.... Subsequent economists from David Ricardo through Henry Thornton, J. S. Mill and R. G. Hawtrey were perfectly aware...

#noted #2019-12-02