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Posts Tagged ‘theory

“Anyone who lives within their means suffers from a lack of imagination”*…


Modern Monetary Theory’s basic principle seems blindingly obvious: Under a fiat currency system, a government can print as much money as it likes. As long as country can mobilize the necessary real resources of labor, machinery, and raw materials, it can provide public services. Our fear of deficits, according to MMT, comes from a profound misunderstanding of the nature of money.

Every five-year-old understands money. It’s what you give the nice lady before she hands you the ice cream cone—an object with intrinsic value that can be redeemed for goods or services. Through the lens of Modern Monetary Theory, however, a dollar is nothing but a liability issued by the US government, which promises to accept it back in payment of taxes. The dollar in your pocket represents a debt owed you by the federal government. Money isn’t a lump of gold but rather an IOU.

This mildly metaphysical distinction ends up having huge practical consequences. It means the federal government, unlike you and me, can’t run out of cash. It can run out of things money can buy—which will drive up their price and be manifest in inflation—but it can’t run out of money. As Sam Levey, a graduate student in economics who tweets under the name Deficit Owls told me, “Macy’s can’t run out of Macy’s gift certificates.”

Especially for those who want the government to provide more services to citizens, this is a convincing argument, and one that can be understood by non-economists…

Everyone knows governments need to tax before they can spend. What Modern Monetary Theory presupposes is, maybe they don’t.  Offered for interest (and with no endorsement): “The Radical Theory That the Government Has Unlimited Money.”

* Oscar Wilde


As we crank up the printing press, we might recall that it was on this date in 2009, several months into the Great Recession, President Barack Obama met with the CEOs of America’s 13 largest financial institutions to discuss a path out of the economic trough onto which the U.S. had descended.  Finding them suspicious of his new (Democratic) administration and worried that he would be less generous to their companies than President Bush and his administration had been, Obama opened by suggesting…

My administration is the only thing between you and the pitchforks… But you need to show that you get that this is a crisis and that everyone has to make some sacrifices…I’m not out there to go after you. I’m protecting you. But if I’m going to shield you from public and congressional anger, you have to give me something to work with on these issues of compensation. Help me help you Everybody has to pitch in. We’re all in this together.

The result was a series of compromises that survived the Obama Administration, but that are now being systematically undone under the Trump Administration.

See also “13 Bankers.”

Kenneth D. Lewis, the chief executive of Bank of America, with other bank executives outside the White House after the meeting with President Obama



Written by LW

March 27, 2018 at 1:01 am

“A few scribbles on a blackboard… can change the course of human affairs”*…


What’s the most transformative piece of technology in U.S. classrooms? Smart boards? Laptops? In a 2000 paper on computers in education, Steven D. Krause argues that it’s one that’s been around for nearly two centuries: the blackboard. And he suggests that if we want to understand how teachers adopt technology, we might want to study its history.

To understand the impact of blackboards, Krause writes, we need to consider what schools were like before them. Around 1800, most U.S. schools were one-room log buildings with a fireplace at one end and a single window at the other. “Writing lessons” generally meant students working on their own, whittling goose-quill pens and copying out texts.

When the idea of chalkboards first arrived in the early nineteenth century, they came as a revelation to teachers and education experts. In 1841, one educator declared that the blackboard’s unknown inventor “deserves to be ranked among the best contributors to learning and science, if not among the greatest benefactors of mankind.” Around the same time, another writer praised blackboards for “reflecting the workings, character and quality of the individual mind.”

It’s important to remember that school budgets and student-teacher ratios in the early nineteenth century would seem ludicrous to a modern school district. One teacher might be responsible for hundreds of students, with very little funding for supplies.

Krause writes that one prominent way of using the blackboard to improve education under these circumstances was known as the Lancasterian method, after British educator John Lancaster. Lancaster prescribed particular ways of physically arranging the classroom so that a teacher could work with a large group all at once…

The whole dusty story at “How blackboards transformed American education.”  Read Krause’s paper, “‘Among the Greatest Benefactors of Mankind’: What the Success of Chalkboards Tells Us about the Future of Computers in the Classroom,” here.

* Stanislaw Ulam


As we clean the erasers, we might send repetitive-but-instructive birthday greetings to Edwin Ray Guthrie; he was born on this date in 1886.  A philosopher and mathematician by training, he became a leading behavioral psychologist, specializing in the psychology of learning and more specifically, in the role association plays in acquiring skills.  He’s probably best remembered for his belief that all learning is based on a stimulus- response association, instantiated in his Law of Contiguity, which held that “a combination of stimuli which has accompanied a movement, will on its recurrence tend to be followed by that movement.”  Movements are, he argued, small stimulus- response combinations; these movements make up an act.  Thus, a learned behavior– an act that is consolidated by the learner so that it can be repeated– is, at its root, a series of movements.  Guthrie believed that what is learned are the movements (of which the behaviors are simply a result).



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