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Sunday Letters

Sunday Letters

Written by: Larry G. Maguire | Psychologist
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 The Sunday Letters Podcast is the weekly audio newsletter on the meaning & purpose of daily work from work and business psychologist Larry Maguire and philosopher Dmitri Belikov. We explore how human beings may break free from tiresome means-to-an-end labour and take command of their own working lives. Topics include daily work, jobs and careers, self-employment, socialism, capitalism, economics, slavery, colonialism, and society & culture. Content follows the written newsletter, which goes out to subscribers every Sunday.

sundayletters.larrygmaguire.comLarry G. Maguire Careers Economics Personal Success Social Sciences
Episodes
  • 010 Money Part 3: What Is Modern Monetary Theory MMT?

    010 Money Part 3: What Is Modern Monetary Theory MMT?
    Jul 26 2024
    Welcome to this week’s edition of the podcast. If you like what we’re doing, consider becoming a paid subscriber. If you’d rather not, you can offer a one-off tip here, or get yourself some merch here. Many thanks for your support! Support Sunday LettersIn this latest episode of Sunday Letters, we're in conversation with PhD, writer at bondeconomics.com and former quantitative analyst at various economic consultancies in Canada. He's the author of several self-published books on economics, including Modern Monetary Theory & The Recovery, published in 2021. The guy on the cover image of this episode, by the way, is Hyman Minsky, the guy most leftist economists cite as the father of MMT. He said, "Stability leads to instability. The more stable things become, and the longer things are stable, the more unstable they will be when the crisis hits.” Brian touches on this idea in the conversation.The discussion begins with a foundational question: "What is money?" Brian explains that money is a complex concept that serves primarily as a medium of exchange, a unit of account, and a store of value. In a monetised society, money simplifies transactions by eliminating the need for direct barter or reciprocal obligations. While money is commonly thought of in terms of physical cash or digital equivalents like bank deposits, Brian highlights that it also includes instruments that are not technically part of the money supply but function similarly, such as credit card transactions and business receivables.He goes on to emphasise that while individuals use money for everyday transactions, businesses and financial institutions engage in more complex exchanges involving various forms of credit and debt. This perspective shifts the understanding of money from a simplistic medium of exchange to a more intricate system of debt settlement and liquidity management.The Role of Banks and ReservesThe conversation delves into the workings of banks and the concept of fractional reserve banking. Dmitri raises a common scenario where a bank holds only a fraction of its deposits in reserve while lending out the rest. Romanchuk clarifies that while this textbook model suggests a fixed reserve requirement, the reality is more flexible. Banks manage liquidity and credit risk, ensuring they can meet reserve requirements while still providing loans and other services.Brian points out that in practice, banks often operate with minimal reserves, relying on liquidity management to balance their books. He explains that banks borrow from each other and from the central bank to maintain the necessary reserves, highlighting the critical role of central banks in providing stability to the banking system. This liquidity management is essential to prevent bank insolvency and maintain confidence in the financial system.Modern Monetary Theory (MMT)The discussion then shifts to Modern Monetary Theory (MMT), which offers a different perspective on government spending and money creation. Brain explains that MMT posits that governments that issue their own currencies can never run out of money in the same way households or businesses can. Such governments can create money to finance deficits, focusing on managing inflation rather than balancing budgets.He underscores that MMT challenges traditional views on fiscal policy, arguing that concerns about government debt are often misplaced. Instead, the focus should be on the productive capacity of the economy and the role of government spending in achieving full employment and economic stability. Brian also highlights that in times of economic downturn, government deficits can provide the necessary stimulus to support recovery and maintain demand.Implications and CriticismsThe episode then explores potential criticisms of MMT, such as the risk of inflation and the political feasibility of its implementation. Brian acknowledges these concerns but argues that proper management of fiscal policy and economic resources can mitigate inflationary pressures. He also notes that the political challenge lies in shifting public and policymaker perceptions about the nature of money and government finance.In conclusion, the episode provides a thorough examination of money's multifaceted role in the economy and introduces listeners to the principles of Modern Monetary Theory. Brian Romanchuk's insights offer a challenge to conventional economic thinking and a fresh perspective on how governments can leverage their monetary sovereignty to achieve economic goals. The discussion encourages a re-evaluation of traditional fiscal policies and highlights the importance of understanding the complexities of money and finance in modern economies.So, How Does it Impact You And Me In Our Daily Lives?Modern Monetary Theory (MMT) argues that governments can and should spend more freely to ensure full employment. For the average worker, this means that in times of economic downturn, the government can inject money into the ...
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    1 hr and 26 mins
  • 009 A US Air Force Pilot on The Meaning of Work

    009 A US Air Force Pilot on The Meaning of Work
    Jun 28 2024

    Welcome to this week’s edition of the podcast. If you like what we’re doing, consider becoming a paid subscriber. If you’d rather not, you can offer a one-off tip here, or get yourself some merch here. Many thanks for your support!

    In this episode of The Sunday Letters Podcast, I’m in conversation with former US Air Force pilot and current lecturer in digital media studies at TU Shannon, Bernie Goldbach. We talk about the contrast in Bernie’s work from the high intensity of flying missions in the Pacific region and the Middle East to the perhaps less demanding work of lecturing third-level students in Clonmel. Here’s a summary of some of the main points in the conversation.

    * Hauling radioactive waste on Enewetak in the Pacific

    * Identity and intrinsic motivation of Air Force pilots

    * The challenge of work-life balance in high-intensity roles

    * The Secret Service, working at The Pentagon and one of the greatest spoofs the US played on Russia.

    * Bernie’s take on Ukraine, the intrinsic motivation of Ukrainian soldiers

    * Why did the 1988 Ramstein Air Show disaster happen? What Bernie witnessed that day and, crucially, the night before.

    * Leaving the Air Force and moving to Ireland and translating his skills into teaching.

    * The heightened attention, perception, memory and motor skills of high-performers

    * Creative design and digital media in education

    * The negative impact of technology on young people’s development. Passive entertainment Vs practical interaction.

    * Finding fulfilment and engagement in work and the power of symbols of success.

    * The work in the post-Social Media world and the power of stories.

    * What would you do if money was no object?

    * The future of work and the impact of technology on work and jobs.

    Links

    clonmeldigital.micro.blog

    insideview.ie

    Bernie Goldbach LinkedIn

    Technological University of The Shannon

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    This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit sundayletters.larrygmaguire.com
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    1 hr and 1 min
  • 008 Money Part 2: The Morality of Money

    008 Money Part 2: The Morality of Money
    Jun 21 2024

    Welcome to this week’s edition of the podcast. If you like what we’re doing, consider becoming a paid subscriber. If you’d rather not, you can offer a one-off tip here, or get yourself some merch here. Many thanks for your support!

    In our latest episode of The Sunday Letters Journal podcast, and I delved into the complex topic of the morality of money. This discussion is not just about the practicalities of economics but rather about the more profound moral questions that underpin our financial systems, our relationship with one another, and our sense of humanity and everyday existence.

    The discussion begins by reflecting on the importance of money in our society. It’s impossible to talk about work without mentioning money because we’ve collectively decided that money is essential to our way of life. We dedicate a significant portion of our lives to work, often at the expense of truly living. The question arises then: why do we work? What is the purpose of work? Can we survive without effectively working as waged slaves for the best part of our lives? This leads us to the fundamental question of what it means to be moral in the context of making and spending money.

    We both have been reading David Graeber’s “Debt: The First 5,000 Years”, which provides a substantial historical backdrop to our conversation. One of the core ideas we discussed is the concept of morality itself. Dmitri explained that morality involves a set of rules or principles that govern behaviour, and these principles can be understood through different philosophical lenses, such as deontology and utilitarianism. Deontology, as championed by Immanuel Kant, posits that there are universal moral laws that apply to everyone, regardless of the consequences. In contrast, utilitarianism, or consequentialism, suggests that the morality of an action is determined by its outcomes, specifically whether it maximises happiness or utility for the greatest number of people.

    As we delved deeper, we touched on the historical perspectives of morality and money, drawing on the ideas of ancient philosophers like Plato and Aristotle. Plato condemned the pursuit of money, believing it corrupted the soul by allowing desires to override reason. While also critical of the excessive pursuit of wealth, Aristotle introduced the concepts of use value and exchange value. He argued that goods should be produced primarily for their use value – to meet genuine needs – rather than for exchange value – merely to generate profit. This distinction remains relevant today as we grapple with the implications of producing goods and services primarily for profit and the satisfaction of base-level desires.

    Our conversation then shifted to the role of religion in shaping moral views on money. In medieval Europe, the early church maintained a stance against commerce, just as perhaps Aristotle did, viewing profit as inherently deceitful and corrupting. However, as time progressed, the church’s position softened, recognising the necessity of trade for societal functioning. This transition highlights the evolving nature of moral perspectives on money, influenced by changing economic realities. Or it was perhaps due to the church’s increasing ties to wealth and political systems.

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    References



    This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit sundayletters.larrygmaguire.com
    Show More Show Less
    59 mins
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