7.30 Report Dr Steve Keen

By: geoffreykelley (Registered ) on 09-11-2007 01:09

AlanK, I don’t wish to denigrate Dr Steven Keen any further than to say he is an obscure academic from the Univ. of Western Sydney. And furthermore, you said,” but, I doubt if he could fool ALL of his colleagues ALL of the time…….”. Actually he hasn’t fooled all his colleagues all the time. Here is a quote from Wikipedia,” Keen's full-range critique of neoclassical economics is contained in his book "Debunking Economics." Some reviewers of the book, neoclassical or otherwise, contend that Keen has not shown what he claims and that he is making exaggerated claims for his research, most of which is based on a misunderstanding of economic theory.” I also stand by my claims about the ABC. 
Keen mentioned the salary of $100,000.00 and not me. And, he was NOT talking about the average wage, whatever that might be. Are you suggesting that the average wage has increased from 30K to 100K under this Howard Govt? If you are, then Howard will romp in the next election. 
You said, “You are also playing a small amount with the “take home pay” because you have not accounted for super, and other deductions (health fund, life insurance, and maybe an annuity) that a prudent worker would plan for, or be compelled to pay. If only tax was all that went………….” Actually I am not trying to play any games. We all know that personal income tax has fallen under the Howard Govt. 
For your information the employer, not the employee, contributes the 9% super paid into a workers fund. 
All the other expenses you list are normal living expenses, except Howard introduce the GST and removed wholesale sales tax. 
I repeat my claim that Keen is playing games with the facts. 
What Keen was trying to say is that we are more heavily in debt today than we were 17 years ago, and he is right. The reason we have borrowed more is because interest rates are lower and borrowed money is more attractive at 8.5% than at 17.5%. Borrowers today are paying off capital and not just interest. 
I also repeat that peoples disposable income is greater today than it was 17 years ago and once again offer the “toy shops” as proof. 
Geoffrey Kelley

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