There is another bubble. Before it's burned, Coal, Oil and Gas sit for years on the balance sheets of private (and national) resource companies, as "known reserve" assets. Assets that, someday, will become revenues. Or will they? And if they won't, what will the balance sheets of ExxonMobil, Chevron, BP, Petrochina, and Gazprom actually look like? [more inside]
Greenspan’s Iron Law is that the sum of these two numbers is approximately constant, at least for the last half-century in the United States. That is a pretty fraught claim: it means that every time the United States adds a billion dollars to Social Security benefits or Medicare payments or unemployment insurance outlays we are forcing a billion-dollar reduction in family saving or in the retained earnings of business, or an increase in government deficits, or some combination of these. ... So what is the evidence for it? Nobel-prize winning economist Robert Solow finds Alan Greenspan's latest book to be ideologically driven and embarrassing, a pity for someone who, Solow writes, was, when looking at his whole tenure, a very good chairman of the Fed.
Let's admit it: Britain is now a developing country.
Gender equality? The WEF ranks us behind Nicaragua and Lesotho. Investment by business? The Economist thinks we are struggling to keep up with Mali. Let me put it more broadly, Britain is a rich country accruing many of the stereotypical bad habits of a developing country.Aditya Chakrabortty discusses the increasing hollowing out of the UK economy, as well as the City as an economically distorting resource curse.
The number of homeless New Yorkers in shelters has risen by more than 69 percent since 2002, when Mayor Bloomberg took office. Each night as many as 60,000 people -- including more than 22,000 children, the highest number since the Great Depression, -- experience homelessness in NYC, and during the course of each year, more than 111,000 different homeless New Yorkers, including more than 40,000 children, will sleep in the city's municipal shelter system. Meet Dasani, one of the city's 'invisible children.' [more inside]
Paul Krugman: Monetary and Fiscal Implications of Secular Stagnation Crooked Timber: If this is “secular stagnation”, I want my old job back The Global Bezzle – whence it came, where it went and why it matters (repost from 2011) [more inside]
On Graduate School and 'Love' is yet another commentary on the economics of academic work. A younger student chimes in on the role of education in life: "much of education is oriented, for better or worse, toward making a living, rather than making a life." [more inside]
How does economics work in a post-scarcity society - namely the United Federation of Planets? As depicted, the canon is not entirely consistent. But there are clear consequences to meeting all one's material needs with ease. Why is there money at all, for example? Does Picard's family own vineyards just for kicks?
The robots are here. George Mason University economist Tyler Cowen predicts that the trend towards automation will squeeze the middle class further still, and compares its effects on American politics to a too-overlooked 1955 short story by Isaac Asimov.
What I think we forget–or worse, never even realized—is the extreme privilege often inherent in “digital literacy.” Yes, much of the Internet is free. But it takes time and energy to develop the skills and habits necessary to successfully derive value from today’s media. Knowing how to tell a troll from a serious thinker, spotting linkbait, understanding a meme, cross checking articles against each other, even posting a comment to disagree with something–these are skills. They might not feel like it, but they are. And they’re easier to acquire the higher your tax bracket. - The New Digital Divide: Privilege, Misinformation and Outright B.S. in Modern Media
"It was as if, while Mark Zuckerberg was still in high school, Bowie was bracing for the 21st Century, the demand for everyone to “share” accessible versions of themselves. The self as a business card, to be distributed to anyone who asked for it. He also saw opportunity: on 1 September 1998, he launched BowieNet." Pushing Ahead Of The Dame (previously, previously) takes a look at David Bowie's late-90s, technophile projects and the future they foreshadowed - Omikron: The Nomad Soul (& BowieBanc & BowieNet)
Brad DeLong, recently installed at Equitablog, lays out a future (wonkish) where the returns to capital keep increasing relative to labor: "What do we people do to add value? Eight things... [more inside]
This shift in how companies are governed and raise money is bringing with it a structural change in American capitalism. That should be a matter of great debate. Are these new businesses, with their ability to circumvent rules that apply to conventional public companies, merely adroit exploiters of loopholes for the benefit of a plutocratic few? Or do they reflect the adaptability on which America’s vitality has always been based? - Rise of the distorporation - how changes in the way companies are financed and managed is changing the wealth distribution of America.
Dwarf Fortress: A Marxist Analysis
What one does in Dwarf Fortress is create a colony of an existing dwarven fortress – you’re always sent out as a team from a much larger existing stronghold elsewhere, and your foreign relations with other dwarves are limited to that particular fortress, on the whole. Even though your settlement is independent and self-governing, and the relations with the mother fortress mostly those of trade, the purpose of the game in all its open-endedness can be nothing other than to create oneself in the image of the previous fortress. In other words, fundamentally in Dwarf Fortress you reproduce the existing structure of dwarven society on a merely quantitatively expanded scale.[more inside]
Chinese Provinces and Indian States : "local leaders are increasingly running much of India and China, which are home to a third of all humanity, from the bottom up. That is affecting how both countries act in the world, which means that these countries need to be understood from the inside out"
Few industries would routinely pay millions per unit of an item, sight unseen, with minimal (and sometimes no) market research. So how can the TV business afford to operate this way? To understand the economics of scripted television, we need to examine the idiosyncratic journey of a show from concept, to pitch, to script, to screen. And we’ll see why, in a business where only a few hits stand out any given year, lavish spending is the cost of staying relevant. -- The Economics of a Hit TV Show
"The maths that saw the US shutdown coming". Peter Turchin (Previously) has a mathematical model that shows why the US is in crisis, and what will happen next. [more inside]
"... and so I took an economics course and I loved it," during a phone interview in the early morning today. Likewise, conversations with Robert Shiller and Lars Peter Hansen, shortly after the 2013 Sveriges Riksbank Prize in Economic Sciences was awarded jointly to them for their academic contributions to the field of asset pricing. UChicago News, Yale News, New York Times, Wall Street Journal, Washington Post, and Bloomberg report. [more inside]
The Guardian presents an animated video explaining the distribution of wealth in the UK (and how it's getting worse).
Happy Political Clusterf*ck Day (U.S.)! In one corner: the first federal government shutdown since 1996, born of the House GOP/Tea Party faction's crusade to delay, defund, and destroy Obamacare (and the Democratic Senate and President's resolve to not do that). "Continuing resolutions" have ping-ponged between the two houses, fighting over language to cancel healthcare reform (plus a few other items, such as the implementation of Mitt Romney's entire economic agenda). National parks are closed, contractors are hamstrung, and 800,000 federal workers furloughed until Speaker Boehner drops the "Hastert Rule" and passes a bill the other branches can agree to. In the other corner, heedless of the chaos (though not without glitches of its own): the official rollout of the Affordable Care Act and its state insurance exchanges. The portal at Healthcare.gov is your one-stop shop for browsing, comparing, and purchasing standardized, regulated insurance coverage with premium rebates, guaranteed coverage, and expanded Medicaid for the poor (in some states). A crazy day, overall -- but peanuts compared to what might happen if the debt ceiling is breached in 16 days. [more inside]
Ask A Native New Yorker: How Guilty Should I Feel About Being A Horrible Gentrifier? Passionate response from a Bushwick native.
What’s going on in Colorado is an outstanding case study in what happens when a black market becomes a legal one, and it’s something we probably won’t see again in any of our lifetimes.
How The Economic Machine Works by Ray Dalio actually makes a case against austerity and for redistribution, but also for money printing (and, arguably, for bailouts), while stressing the need to keep making productivity-improving public and private investments. However, it could be equally entitled: How The Industrial Age Political-Economy Doesn't Work Anymore, viz. Surviving Progress (2011)... [more inside]
From a purely economic perspective: Is college worth it?
PayPal locked down the developer’s account, and said it could only have 50% of the funds. The rest would be released as development continued, based on PayPal’s assessment of the situation. PayPal was, essentially, going to become a producer going forward. Crowdfunding's Secret Enemy is PayPal
No matter what time period you are referring to, no matter what country or region of the world you are referencing, there is a single claim that you can make that will always be true and will never be challenged, not even by Malcolm Gladwell himself: the middle class is always in the process of emerging.
Tom Yulsman on the ignorant, misrepresentative and fictitious claims promulgated by some conservative journalists.
The costs of cash. Economists know that using cash has a built-in cost, compared to electronic forms of payment like credit cards or direct deposits. (Prepaid cards, not so much.) This creates a "digital divide" that may contribute to income inequality. A new study out today from Tufts quantifies these costs, which hit the poor over three times as much as wealthier folks, on average.
To a Chinese Scrap-Metal Hunter, America's Trash Is Treasure: Johnson Zeng is a Chinese trader who travels across the U.S. in search of scrap metal. By his estimate, there are at least 100 others like him driving from scrap yard to scrap yard, right now, in search of what Americans won’t or can’t be bothered to recycle. His favorite product: wires, cables, and other kinds of copper. His purchases, millions of pounds of metal worth millions of dollars, will eventually be shipped to China. [more inside]
Always totalize! This is the majuscule axiom — the maxiom, let us say — for revolution. Revolution is a total thought, a thought of the totality; they are necessarily entangled. Reform, repair, regime change, recuperation: all of these are the politics of the partial, of isolating specific problems as if they admitted of independent solution. Ezra Pound said that the epic is a poem that contains history. What matter that we might amend the last word, a minor amendment at that, a swapping out of inseparable concepts? The epic is the poem that contains totality. [more inside]
Wonkblog has a new advice column called "Dear Dylan" where Dylan Matthews answers the usual advice column staples using game theory, mathematics and charts.
'There’s more lobster out there right now than anyone knows what to do with, but Americans are still paying for it as if it were a rare delicacy.' Also, from 2004: David Foster Wallace goes to the Maine Lobster Festival. Via)
John Green: "Why Are Americans Health Care Costs So High?" A quick, handy little overview of common misconceptions on the US healthcare system. (SLYT)
"We condition the poor and the working class to go to war. We promise them honor, status, glory, and adventure. We promise boys they will become men. We hold these promises up against the dead-end jobs of small-town life, the financial dislocations, credit card debt, bad marriages, lack of health insurance, and dread of unemployment. The military is the call of the Sirens, the enticement that has for generations seduced young Americans working in fast food restaurants or behind the counters of Walmarts to fight and die for war profiteers and elites."-- War is Betrayal. Persistent Myths of Combat, an essay by Chris Hedges of Truthdig. Responses within. [more inside]
Payday lenders target the working poor with quick loans at exorbitant interest rates. When a ballot initiative drive in Missouri threatened this lucrative business, the payday lenders fought back with everything they had--their money. A ProPublica report, published yesterday in the St. Louis Post-Dispatch documents the web of secret donations and intimidation that smothered the reform movement.
Bankrupt By Beanies - A short documentary about what happened to people after the "Beanie Babies as investments" fad wore down. (YouTube, 8:30)
Of all the occupational golden ages to come and go in the twentieth century—for doctors, journalists, ad-men, autoworkers—none lasted longer, felt cushier, and was all in all more golden than the reign of the law partner. Noam Schreiber on The Last Days of Big Law: You can't imagine the terror when the money dries up. Former law partner Steven J. Harper, author of The Lawyer Bubble, believes the profession to be in existential crisis. Another former partner weighs in. Libertarian law professor Richard Epstein presents a more sanguine view.
Five Reasons Why I Am Not An “Artist”, an essay by Tom Ellard (formerly of 1980s industrial electropop band Severed Heads and now an academic and media art practitioner in Australia; previously), touching on areas such as artificial divisions between art and technical practice, the politics of the role of the artist and the conflict between creative exploration and artistic recognition and success.
As machines take over more of our work, we are going to have to find other ways of letting people fulfil these human needs. Forcing them to send 500 CVs out every week is not a good start. In stripping out inefficiencies and pushing digital goods to near-free prices, the Internet kills middle-class jobs. Digitization has already largely de-monetized academia, film, music, journalism, and lots more besides. More industries will feel the pain, including the legal professions, real estate, insurance, accounting, and the civil service, all of which are built on inefficiency, and all of which will be stripped of jobs in the years to come. As it becomes clear to those with established positions that there are no jobs for their children, they’ll push for a more radical solution.
"The country has cheaper medical care, smarter children, happier moms, better working conditions, less-anxious unemployed people, and lower student loan rates than we do. And that probably will never change." In The Atlantic, a comparison of some of the socio-economic aspects of Finland and the USA. [more inside]
This month, citizens and planning officials in Cape Cod, Mass., will get a chance to do what almost no one else in the U.S. is allowed to do when deciding whether to approve or reject a big-box retail development: weigh the likely impacts on the region’s economy. [more inside]
Recession prompted 'unprecedented' fall in wages - Wages have fallen more in real terms in the current economic downturn than ever before, according to a report. On top of the rising cost of living, a third of workers who stayed in the same job saw a wage cut or freeze between 2010 and 2011, said the Institute for Fiscal Studies (IFS). "The falls in nominal wages... during this recession are unprecedented," said Claire Crawford from the IFS. Labour said the figures showed there was a "living-standards crisis".