Private Sector

  • 07.16.18

    The Private Sector & Climate Change: Holding Corporations Accountable

    The future or our planet depends on us taking action against climate change. The United States of America needs to take a closer look at the economic policies that encourage and allow companies to contribute to climate change and global warming. In this video, Bill McKibben addresses some of the ways that we can h...

    The future or our planet depends on us taking action against climate change. The United States of America needs to take a closer look at the economic policies that encourage and allow companies to contribute to climate change and global warming.

    In this video, Bill McKibben addresses some of the ways that we can hold corporations accountable and stop actions that negatively affect the environment: we must get money out of politics, encourage taxes that reflect the true cost of pollution, incentivize the right types of activities, and get the penalties right when companies harm the environment.

  • 06.03.11

    What Happens When The Government Tightens Its Belt? (Part II)

    In this article Stephanie Kelton describes the relationship between the government, the private sector, and foreign entities. She describes that when you look at these three players in the economy, one entity's purchase is another entity's sale. Therefore, any surplus for one entity equates to a deficit for anoth...

    In this article Stephanie Kelton describes the relationship between the government, the private sector, and foreign entities. 

    She describes that when you look at these three players in the economy, one entity's purchase is another entity's sale. Therefore, any surplus for one entity equates to a deficit for another. In more simplistic terms: wen we have a trade deficit and are importing in more goods than we are exporting, that means that when compared to us foreign entities are exporting more goods to the U.S. than they are importing from the U.S. 

    Kelton specifically points out that the government has a role to play to offset the trade deficit that this country has because, "Whenever the government’s deficit is too small to offset a deficit in the current account, the private sector will experience a net loss."

    She concludes that: "the Government needs to loosen its belt when we tighten ours. If it doesn’t, then millions of us will lose our [jobs]."

    Kelton Figure 2 (Part 2)

  • 03.27.11

    What Happens When The Government Tightens Its Belt?

    In this article Stephanie Kelton describes the interaction between the government and the private sector in regards to spending and saving. Kelton describes that there is a direct relationship between what is happening in the private sector and what is happening in the public sector - " the total amount of money s...

    In this article Stephanie Kelton describes the interaction between the government and the private sector in regards to spending and saving.

    Kelton describes that there is a direct relationship between what is happening in the private sector and what is happening in the public sector - " the total amount of money spent buying newly produced goods and services will yield an equivalent income to the sellers of these products." Meaning that someone's purchase is another person's sale and vice versa.

    The government both collects taxes, and spends money (from salaries for government workers to social programs). Kelton demonstrates that when the government runs a surplus, meaning that it is bringing in more money than it is spending, that money is removed from the private sector.  She finishes with the statement "As the government “tightens” its belt, it “lightens” its load on the teeter-totter, shifting the relative burden onto you."

    Kelton Figure 4