$600 checks are a “crime,” says the pope’s favorite economist
I've only recently discovered Mariana Mazzucato, who seems to be establishing herself as a celebrity economist these days. She also has a fan in Pope Francis:
A conversation with economist Mariana Mazzucato on the case against Scroogenomics
... I sat down, virtually, with the brilliant economist Mariana Mazzucato to talk about the relief plan and the problem underlying it: a loss of faith in government action that becomes a self-fulfilling prophecy: People don’t believe in government action, so government isn’t empowered to act, so people believe less and less in government.
Mariana was recently name-checked by Pope Francis as his favorite economist (along with Kate Raworth). No big deal, right? Mariana teaches at University College London. She’s written important books like The Entrepreneurial State and The Value of Everything, making a case for rewriting some of the basic thinking of economics. And she is a rare instance of a scholar who follows her work out into the world, helping policymakers implement her theories. There is much to learn from her.
On the just-passed US COVID relief package:
MARIANA: A one-time check of $600 is nowhere enough, for three reasons.
First, for the citizens in question, this amount will simply not be enough to allow people to access their basic human rights to food, shelter, and caring for their loved ones.
Second, the economy will not benefit by this meager relief. As Keynes taught us, boosting aggregate demand is critical for economic growth. Given the dire situation on disposable income, this relief will not help the economy get back on its feet.
Third, the money does exist: the government has simply decided to spend it elsewhere: for example, on corporate bailouts and defense spending.
It’s a crime and should be rectified as soon as possible. And if America truly wants to “lead” the world, then match the relief packages in other countries.
ANAND: I recently discovered that Pope Francis has a favorite economist — and it's you. What is it like being the pope's favorite economist [as he disclosed in his new book, “Let Us Dream”]?
MARIANA: As a very unreligious person, it feels great but uncomfortable. The funny thing is, he actually read my book a year ago and wrote an open letter in Argentina saying capitalism is screwed, but there's a book that tells us what to do. The Vatican, in some ways, has been talking about the common good for a long time. But there's no real equivalent for that concept in economics. ...
I'd argue that the concept exists, but is largely ignored, and is hard to measure: commonweal and social welfare.
Despite misgivings about the institution myself, I like this Pappa, and have for a while.
#MarianaMazzucato #PopeFrancis #economics #austerity #Covid19 #CovidRelief #CommonWeal
