NO.035 According to macroeconomics, the parliamentarians 'statements about the economy are all-you-can-eat. Ensure the benefits of the Employees' Pension and the National Pension are fully guaranteed. If you don't have enough resources, issue pension bonds. Again, pension bonds are in line with macroeconomic principles. ・・・ Theme label: MMT. Pension government bonds. Keynes policy by the Bank of Japan's direct purchase of government bonds. These suit the principles of macroeconomics., Category label:macroeconomics,

I mentioned several times that I wanted to know the basics of economics 10 years ago, but let's mention according to the macroeconomics of the introductory elementary level that I learned at that time.

Even now, the remarks that parliamentarians mention the economy is a total insane.

The members of the parliament simply say, "What do you do with the financial resources?"
It is meaningless to use taxes as financial resources in economic policy.

People consume from the earned income. Consumption shrinks because the amount of tax paid reduces the amount of income that can be spent on consumption.
Macroeconomically, economic policy is nothing but consumption by the government. When tax resources are used for economic policy, total consumption in GDP does not change because the government that collected the tax only consumes by the amount of contraction by individual consumption.
Economic policy has no effect.

GDP = total consumption + total investment
Total investment is the total amount invested throughout the country, and total consumption is the total amount consumed throughout the country.

There was the following sentence.
"The added value produced is supplied to people's income."

In industrial production and sales, new values ​​that did not exist at the time of raw materials are created and added to products.
The term "added value" in economics is understood as the price of the value created during the production of a product.
In the end, this "added value" will always be someone's income.

GDP, or "gross national income," is the sum of the "added value" produced domestically. And that is "Gross Domestic Product".
"Value-added production" is nothing but the production of money. Even in value-added production that has been in debt and earning money, if the amount of added value produced is large enough, profits will remain after repayment of the debt.

Because value-added production is the production of money, effective economic policy necessarily involves the process by which the Bank of Japan issues new Japanese banknotes.

The fiscal policy as an economic policy can be explained as follows. "The Bank of Japan will issue new BOJ notes and purchase government bonds. The government that sold government bonds to the BOJ will issue a fiscal dispatch with the Japanese bank notes paid for.
That is, the government purchases the value-added products produced by the industry. "

This is an appropriate policy that fits the principles of macroeconomics.

"The Japanese government has made repeated public spending while making public debts for the people. The money raised by issuing government bonds has been used up, and after that, the national financial debt of 1,000 trillion yen remains.”The Japanese government has continued to say so until now.
The Japanese government is trying to increase the tax and repay the government's fiscal debt while continuing to say, "To leave no debt for children."

It is not that the money that the government has borrowed and used for financial dispatch has disappeared. It is paid to someone and it is their income.

If someone buys a product that the industry produces and sells with that income, the effects of fiscal spending should continue circulating in the Japanese economy.

If it appears that the money paid out due to financial dispatch has disappeared, the money will not be paid for the purchase of goods. The money will have been taken over by someone.

Japan's pension is paid from the pension fund according to the premium paid to the pension fund.

Public employees' pension is managed by government bonds. The government manages non-government employee welfare pensions and national pensions in the stock market. The welfare pension and the national pension are not pensions for public employees. Even if the operation of the welfare pension or the national pension fails, the public workers will not suffer pain.

Therefore, the management of the welfare pension and the national pension would have become a management that is not responsible for failure. They have spent the necessary expenses from the welfare pension fund and the national pension fund. The construction cost of housing for civil servants has been regarded as a necessary cost.

At present, the welfare pension fund and the national pension fund are insufficient for the promised total payment amount. Pension payments have been reduced, and pensioners are in need and social problems.

The government recommends that individuals who do not have enough pension money to cope with poverty should be instructed to save and manage their assets.

Pension bonds are in line with the principles of macroeconomics. If so, would it be safe to guarantee the welfare pension and the national pension?
Is it all right to compensate for the shortfall in financial resources with pension bonds?

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NO.306 Message to President Trump 41 ・・・ This is a war between all mankind and the coronavirus. The meaning of President Trump's declaration would be beneficial. The whole world will be able to implement projects that put all the will and power of the nation in order to overcome coronavirus infection. Keynes policy is needed. Many companies around the world are temporarily suspended. Many people are fired temporarily. People who have purchased products until now can no longer purchase products. The performance of companies that continue to do business deteriorates. This causes a recession. The government needs to hire the unemployed and keep paying them. The government orders the required number of respirators. If there is not enough production equipment, the government will expand.

NO.303 Message to President Trump 39 ・・・ Considerations as of March 17, 2020 Japan Time. Countries have jointly implemented maximum quantitative easing. The Fed has moved to a virtually zero interest rate. Entrepreneurs are not willing to use the investment funds provided. Stock prices fall because investors can't find investment opportunities. In the United States and Europe, entrepreneurs do not try to solve problems themselves. They wait for others to help them. Then, I propose Keynes's policy. The United States sets a national purpose and declares a state enterprise to achieve the purpose. Giving huge funds to the national business. If war, the US government could do this. This is a war between all mankind and the coronavirus. I suggest that Trump do this.

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