Just print money and give it to everyone by Chris Arnade: "The usual answer to why we don't do this is that it isn't politically feasible and there is no precedent. 1) That has never stopped bank bailouts, which often require a great deal of political and regulatory ingenuity to jam through. (TARP cough TARP) 2) It is a symptom of a system built by and for the bankers to benefit themselves. It is the equivalent of saying, 'We can't do it because we have never wanted to do it'. That we don't do it this way isn't just a small economic quibble with no impact. The most visceral anger I hear from voters across the country is directed at bank bailouts, which they see as evidence of a rigged system. They are right. The system is rigged in the sense that our primary method to stimulate the economy also conveniently bails out bankers." (previously; via) [more inside]
Kennedy was right - "Much that is valuable is neither tangible nor tradable... Gross domestic product (GDP) is increasingly a poor measure of prosperity. It is not even a reliable gauge of production."* [more inside]
FINLAND: New Government Commits to a Basic Income Experiment - "The Finnish government of Juha Sipilä is considering a pilot project that would give everyone of working age a basic income."[1,2,3] (via) [more inside]
The Japanese government is attempting to end Japan's culture of "death by overwork" (now known as karoshi) by moving to make it illegal to not take mandatory paid vacation days. Why won't Japanese workers go on vacation? The Japanese work some of the longest hours in the world and fear taking paid holidays in case they are ostracised by colleagues. The stress is so extreme that every year thousands of workers succumb to “karoshi”, or “death by overwork”. They either commit suicide (the see suicide as salvation), or die of a stroke or a heart attack. The Japanese are literally dying for work and the phenomenon is spreading to other Asian countries such as China, South Korea, and Bangladesh. A "chapter" of the award winning documentary "Happy" (now on Netflix and other online venues) looks at this Japanese phenomenon of Karoshi. HAPPY (trailer here) takes you on a journey from the swamps of Louisiana to the slums of Kolkata in search of what really makes people happy. Combining real life stories of people from around the world and powerful interviews with the leading scientists in happiness research, HAPPY explores the secrets behind our most valued emotion.
Let Us Face the Future - "All parties pay lip service to the idea of jobs for all. All parties are ready to promise to achieve that end by keeping up the national purchasing power and controlling changes in the national expenditure through Government action. Where agreement ceases is in the degree of control of private industry that is necessary to achieve the desired end. In hard fact, the success of a full employment programme will certainly turn upon the firmness and success with which the Government fits into that programme the investment and development policies of private as well as public industry." [more inside]
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]
What's Going On In Japan? "Really Japan is quite a remarkable case, since neither fiscal nor monetary policy seems to be working to achieve the anticipated results. This year Japan will have a fiscal deficit of around 10% of GDP and gross government debt will hit 235% of GDP, yet the country is still struggling to find growth. Instead of reiterating old dogmas (whether they come from Keynes or from Hayek) more people should be asking themselves what is happening here. This is not a simple repetition of something which was first time tragedy and is now second time tragedy, it is something new, and could well be a harbinger for more that is to come, elsewhere. Oh, why oh why are economists not more curious?" [more inside]
Buying useful things, like roads and universities and health care and solar energy and spaceships, should be better stimulus than fighting wars.
"Liberals have not always been very good at communicating why liberalism works. There’s many reasons for this, but part of it is that it can be hard to defend the obvious from an absurd and deceptive attack. For half a century you had to be a crank to oppose what Roosevelt accomplished; liberals got out of the habit of arguing for their beliefs. I hope this page will help. Liberals don’t need to apologize for their vision of how American society should work. Liberalism saved American capitalism and democracy, defeated Naziism, created a prosperous middle class, and benefited every sector of society, from the back streets to Wall Street. " Mefi's own Zompist (previously) on Why Liberalism Works.
Inside Africa. What about the digital frontier? How is the broadband download performance? How many mobile phones are there in Africa? And mobile subscriptions? How is Twitter doing in South Africa? And how many internet users are there in South Africa anyway? Yes, the other stuff like GDP growth rates, nation brand values and Sino-African trade are there too. And female entrepreneurship..
Which countries match the GDP and population of ● Brazil's States? ● China's Provinces? ● India's States and Territories? [more inside]
There may be $2 trillion sitting on the balance sheets of American corporations globally, but firms show no signs of wanting to spend it in order to hire workers at home, however much Washington might hope they will.
Time magazine outlines five common destructive myths about how to stimulate U.S. Growth.
Time magazine outlines five common destructive myths about how to stimulate U.S. Growth.
Ten Charts that Prove the United States Is a Low-Tax Country from the Center for American Progress.
IMF bombshell: Age of America nears end. According to the latest IMF official forecasts, China’s economy will surpass that of America in real terms in 2016 — just five years from now. [more inside]
SEED Magazine: Wealth of Nations: "Shared natural resources underpin the global economy, but our current economic system does not acknowledge their worth. Can a major new effort to assess the costs of biodiversity loss force a paradigm shift in what we value?" [more inside]
Moving beyond GDP for an information-based society - If indeed[1,2] "A 'Quantum Leap' in Governance" is needed then, as part of the solution, we might start looking past GDP[5,6] and perhaps more toward "betterness instead of business, pursue awesomeness instead of innovation — and maximize good, instead of quarterly profits..." [more inside]
"Hard Numbers: The Economy is Worse than You Know" [full article for Harper's subscribers, a different abridged version] discusses how the Consumer Price Index and other US economic statistics have been manipulated over time. Among other things, the article claims, these changes make Social Security checks 70% lower than they would otherwise be. [more inside]
The Happy Planet Index presents an alternative to GDP for measuring standard of living. It ranks countries by measuring life expectancy and self-reported life satisfaction against an "ecological footprint" needed to support that country's lifestyle. The press release claims that well-being is not based on high levels of consumption, but many don't agree. Full report in PDF here. Vanuatu tops the charts, while Zimbabwe and Swaziland lie at bottom. Critiques here, here, here, and here. A critique of happiness indices generally here.
Is the U.S. Bankrupt? [332Kb PDF] Laurence Kotlikoff, writing in this month's Federal Reserve Bank of St. Louis Review, says "yes" - to the tune of $66 trillion! [more inside]
How happy are you? Today's NYT has a great article on alternate methods of analyzing the overall well-being of a country, focusing on Bhutan, the largely Buddhist country whose king put forth an alternative to the capitalist-centric Gross Domestic Product: Gross National Happiness. Not only does it fit in with Buddhist ideals, but organizations like the World Values Survey have come to some (not-so) surprising findings regarding the correlation between wealth and happiness. There are similar movements cropping up around the world, such as Australia's Genuine Progress Indicator, which attempts to quantify non-material progress rather than rely on subjective interpretations of happiness. How do you measure your own happiness?
Game Theories: Are these virtual worlds the best place to study the real one? The Gross National Product of EverQuest, measured by how much wealth all the players together created in a single year inside the game. It turned out to be $2,266 U.S. per capita. By World Bank rankings, that made EverQuest richer than India, Bulgaria, or China, and nearly as wealthy as Russia. (by Clive Thompson)
Vive la California! France passed by California in rankings of world economies.