Editing Post-Keynesian Economics (section)

== <span style="color: #FFFFFF;">Understanding</span> ==
Post-Keynesian economics is understood through '''Uncertainty''' and '''Debt'''.

'''1. The "Black Hole" of the Future (Uncertainty)''':
Mainstream economics assumes people are "Rational calculators."
* Post-Keynesians say we are "Blindly groping" in the dark.
* Because we are "Uncertain," we hold "Money" as a "Safety Blanket."
* If everyone gets scared at the same time and "Holds money," the economy stops dead. Money is not just a "Tool for trade"; it is a "Refuge from the unknown."

'''2. Stability is Unstable (Minsky's Law)''':
Hyman Minsky argued that "Peace leads to War."
* When the economy is "Stable" for a long time, people get "Confident."
* They borrow more money. They take bigger risks.
* Eventually, they can't pay the interest. The system "Snaps."
* This means the "Boom" **causes** the "Bust." To stop the bust, you have to stop the "Too-big-boom."

'''3. Money is "Created," not "Collected"''':
In most textbooks, the government "Prints money" and "Gives it to banks."
* Post-Keynesians argue that "Private Banks" are the real money-creators.
* When you sign a mortgage, the bank "Types numbers into a screen" and **creates** that money out of thin air.
* Therefore, the "Amount of money" in the world is determined by "How much debt people are willing to take."

'''The 'Kalecki' Profit Equation'''': Michal Kalecki (a co-founder of the school) famously said: "Workers spend what they get, and Capitalists get what they spend." He showed that if capitalists spend more on investment, it actually *increases* their total profit, proving that "Spending" is the engine of the whole system.
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