Joe Stiglitz on Inequality, Wealth, and Growth: Why Capitalism is Failing (video; if you don't have 30m, skip to 20m for discussion of political inequality, wealth, credit and monetary policy) - "If the very rich can use their position to get higher returns, more investment information, more extraction of rents, and if the very rich have equal or higher savings rates, then wealth will become more concentrated... economic inequality inevitably gets translated into political inequality, and political inequality gets translated into more economic inequality. The basic and really important idea here is that markets don't exist in a vacuum, that market economies operate according to certain rules, certain regulations that specify how they work. And those effect the efficiency of those markets, but they also effect how the fruits of the benefits of those markets are distributed and the result of that is there are large numbers of aspects of our basic economic framework that in recent years have worked to increase the inequality of wealth and income in our society... leading to a society which can be better described, increasingly, as an inherited plutocracy." [more inside]
Some Paths to the True Knowledge[*] - "Attention conservation notice: A 5000+ word attempt to provide real ancestors and support for an imaginary ideology I don't actually accept, drawing on fields in which I am in no way an expert. Contains long quotations from even-longer-dead writers, reckless extrapolation from arcane scientific theories, and an unwarranted tone of patiently explaining harsh, basic truths. Altogether, academic in one of the worst senses. Also, spoilers for several of MacLeod's novels, notably but not just The Cassini Division. Written for, and cross-posted to, Crooked Timber's seminar on MacLeod, where I will not be reading the comments."
China rates its own citizens - including online behaviour: "The Chinese government is currently implementing a nationwide electronic system, called the Social Credit System, attributing to each of its 1,3 billion citizens a score for his or her behavior. The system will be based on various criteria, ranging from financial credibility and criminal record to social media behavior. From 2020 onwards each adult citizen should, besides his identity card, have such a credit code." [more inside]
Foundation: Public Goods and Options for the Bottom Billions - "Human beings just don't handle the very long run well" and that's where government increasingly comes in... (via) [more inside]
Incumbent President of Nigeria Goodluck Jonathan today conceded defeat in last weekend's election, and called President-Elect Muhammadu Buhari to congratulate him. The election has generally appeared to be the fairest in Nigeria's history and mostly free of the bloodshed of Jonathan's 2011 defeat of Buhari; this transition will mark Nigeria's first transfer of power to an opposition party after an election. Buhari's presidency will be his second administration as leader of Nigeria after acting as the head of a military junta from 1983 to 1985. [more inside]
Religion in China: Cracks in the atheist edifice - "Yang Fenggang of Purdue University, in Indiana, says the Christian church in China has grown by an average of 10% a year since 1980. He reckons that on current trends there will be 250m Christians by around 2030, making China's Christian population the largest in the world. Mr Yang says this speed of growth is similar to that seen in fourth-century Rome just before the conversion of Constantine, which paved the way for Christianity to become the religion of his empire." [more inside]
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]
Kochs Plan to Spend $900 Million on 2016 Campaign - "an unparalleled effort by coordinated outside groups to shape a presidential election that is already on track to be the most expensive in history... These donors represent the largest concentration of political money outside the party establishment, one that has achieved enormous power in Republican circles in recent years. Now the Kochs' network will embark on its largest drive ever to influence legislation and campaigns across the country, leveraging Republican control of Congress and the party's dominance of state capitols to push for deregulation, tax cuts and smaller government."
BIG and BOT Policy Proposals (transcript) - "Many of our current economic policies originated during times of scarcity. But now, says investor Albert Wenger, we live in an era of 'digital abundance', when creating new products costs virtually nothing. To adapt to the resulting economic upheavals, we won't need just more tech, says Wenger, but some strong policies. Here he explores two: basic income guarantee and the right to be represented by a bot." [more inside]
How strategists see the 2014 Senate battlefield, state by state, featuring exclusive voter data.
How strategists see the 2014 Senate battlefield, state by state, featuring exclusive voter data.
The political economy of a universal basic income: "your view of what is feasible should not be backwards looking. The normalization of gay marriage and legalization of marijuana seemed utopian and politically impossible until very recently. Yet in fact those developments are happening, and their expansion is almost inevitable given the demographics of ideology... UBI — defined precisely as periodic transfers of identical fixed dollar amounts to all citizens of the polity — is by far the most probable and politically achievable among policies that might effectively address problems of inequality, socioeconomic fragmentation, and economic stagnation." [more inside]
- Welfare economics: an introduction
- The perils of Potential Pareto
- Inequality, production, and technology
- Welfare theorems, distribution priority, and market clearing
- Normative is performative, not positive
Francis Fukuyama on 'The End of History?' twenty-five years later: "liberal democracy still doesn't have any real competitors," but to get there... [more inside]
The Mayday SuperPAC. Yesterday Lawrence Lessig announced the launch of the Mayday SuperPAC, "The SuperPAC to end all SuperPACs." Its ultimate goal is to achieve constitutional campaign finance reform. They've set out specific funding goals--$1 million in 30 days, $5 million in the next 30--which will be matched by Lessig and other (currently) anonymous funders once achieved. Their initial goal is to influence races in five House districts and if successful they hope to expand in 2016.
VC for the people - "It's just that people who have options are much more likely to actually find success than people who don't." [more inside]
Gilens and Page analyze 1,779 policy outcomes over a period of more than 20 years. They conclude that “economic elites and organized groups representing business interests have substantial independent impacts on U.S. government policy, while mass-based interest groups and average citizens have little or no independent influence.” Average citizens have “little or no independent influence” on the policy-making process? This must be an overstatement of Gilens’s and Page’s findings, no? Alas, no... (pdf)
Turkey: The Erdogan-Gulen showdown - "A political fight to the death had just broken out between Recep Tayyip Erdogan, Turkey's prime minister, and his former allies in the movement of Mr Gulen... The prime minister argues that the Gulenists have set up a 'parallel state' within the bureaucracy, following orders from Pennsylvania and pursuing an agenda of their own." [more inside]
Free Money for Everyone - "A wacky-sounding idea with surprisingly conservative roots may be our best hope for escaping endless, grinding economic stagnation." (via) [more inside]
What’s gone wrong with Democracy? It was the most successful political idea of the 20th century. Why has it run into trouble, and what can be done to revive it? Excellent Essay of the Economist.
The return of "patrimonial capitalism": review of Thomas Piketty's Capital in the 21st century (pdf) - "Thomas Piketty's 'Capital in the 21st century' may be one of the most important recent economics books. It jointly treats theory of growth, functional distribution of income, and interpersonal income inequality. It envisages a future of relatively slow growth with the rising share of capital incomes, and widening income inequality. This tendency could be checked only by worldwide taxation of capital." [more inside]
The Endgame for Democracy: A short essay by Bill Moyers. [SLYT]
Australia goes to the polls tomorrow. Want the skinny on three word slogans? Want to know about the fabled voters of 'middle Australia'? Are you confused about preferential voting? Aussie comedian Dan Ilic has you covered with #C@%TASTROPHE 2013: Guide to the Election. [more inside]
In 2011, the CIA declassified documents admitting its involvement in the 1953 coup that overthrew Iran's elected government and installed Mohammad Reza Shah Pahlavi, details of which were first first disclosed by the New York Times in 2000. Timeline. However, they refused to release them to the public. Today, the National Security Archive research institute has (after a Freedom of Information Act lawsuit) obtained and made the 21 documents public. "Marking the sixtieth anniversary of the overthrow of Iranian Prime Minister Mohammad Mosaddeq, the National Security Archive is today posting recently declassified CIA documents on the United States' role in the controversial operation. American and British involvement in Mosaddeq's ouster has long been public knowledge, but today's posting includes what is believed to be the CIA's first formal acknowledgement that the agency helped to plan and execute the coup. [more inside]
It became necessary to finish this thing. A U.S.-funded 'ally' has carried out one of the largest massacres of protesters since the 1989 assault on Tiananmen Square. At least 525 people (and counting and counting) have been killed since Egypt's police and army attacked two sit-ins in support of ousted president Muhammad Morsi on August 14th. Armored cars, police officers, and soldiers marched on the protests in Nasr City and Giza, opening fire with birdshot, tear gas, and live ammunition. It only gets worse from here. [more inside]
David Graeber’s “The Democracy Project” and the anarchist revival. "Is the current arrangement of our democracy unstable? Should we start thinking about what might come next?"
Dissent Is the Health of the Democratic State - "We live in big, complex societies, which means we are thoroughly interdependent on each other, and that we will naturally have different ideas about how our life in common should go, and will have divergent interests. This means that politics we shall always have with us. It also means that political problems are largely ones about designing and reforming the institutions which shape how we interact with each other..." (via) [more inside]
Representative democracy is what's happening. Unfortunately, democracy is broken. There's a hidden failure mode, we've landed in it, and we probably won't be able to vote ourselves out of it. (via cstross)
Has politics gone peer-to-peer? A rich 90-minute panel discussion with Steven Johnson, author of "Future Perfect: The Case for Progress in a Networked World", featuring Yochai Benkler, Susan Crawford and Lawrence Lessig.
"Used to be that the idea was 'once every two years voters elected their representatives.' And now instead it's 'every ten years the representatives choose their constituents.'"
Obama won Ohio by two points, and Democratic Sen. Sherrod Brown won by five, but Democrats emerged with just four of Ohio’s 16 House seats. In Wisconsin, Obama prevailed by seven points, and Democratic Senate candidate Tammy Baldwin by five, but their party finished with just three of the state’s eight House seats. In Virginia, Obama and Democratic U.S. Senate candidate Tim Kaine were clear victors, but Democrats won just three of the commonwealth’s 11 House seats. In Florida, Obama eked out a victory and Democratic Sen. Bill Nelson won by 13 points, but Democrats will hold only 10 of the Sunshine State’s 27 House seats. The Revenge of 2010: How gerrymandering saved the congressional Republican majority, undermined Obama's mandate, set the terms of the sequestration fight, and locked Democrats out of the House for the next decade. It's not a new problem. But if the Supreme Court guts the Voting Rights Act, it could get a whole lot worse. And the electoral college may be next. (What's gerrymandering, you ask? Let the animals explain. Meet the Gerry-mander. Peruse the abused. Catch the movie. Or just play the game. Previously.)
we choose to have an election thread and and do the other things, not because they are easy but because they are hard
Finally, it's almost over. Obama and Romney tie in Dixville Notch, Obama landslide in Hart's Location. Interactive Infographic: 512 Paths to the White House. More election 2012 infographics. And still more. How to tell who is winning Ohio. Ohio recount plan could take election into overtime. Gandalf speaks: Late Poll Gains for Obama Leave Romney With Longer Odds. Final estimates from Votamatic and Sam Wang at the Princeton Election Consortium. Google's voting education page. [more inside]
Beautiful Georgia, my adopted state as I finish life’s journey ... my last year ever to vote in a presidential election. I wanted to feel part of this great privilege, wanted to again walk out of my precinct tapping my Georgia Peach voter sticker. Even if the day were dark, gloomy and cold, the sun would be shining. One Georgia nonagenarian's quest for voter ID
"[T]he corrupting influence of money is the first problem facing this nation. That unless we solve this problem, we won’t solve anything else... The Framers, Lessig says, had just one kind of dependence in mind for members of Congress: a dependence on the people. He quotes The Federalist (the then-anonymous essays by Alexander Hamilton, James Madison, and John Jay that are often used as a contemporary account of the Framers’ intentions) to make this point: number 52 describes the House of Representatives as that “branch of the federal government which ought to be dependent on the people alone” (emphasis added). But in the last two decades, Lessig writes, members of Congress have developed a fearsome dependency: campaign cash. The total amount spent on campaigns by all candidates for Congress in 2010 was $1.8 billion. Fundraising has become a way of life..." (via 3 Quarks Daily)
With the U.S. Presidential election about 3 months away, and voter ID laws headed to court this Wednesday in Pennsylvania and in other states like Texas and Minnesota, Propublica tells you Everything You’ve Ever Wanted to Know About Voter ID Laws. A solution to a nonproblem. [Previously] [more inside]
PDI is a policy-agnostic political party that does not have, nor will ever have, a political ideology. It has a single and radical proposal: PDI elected representatives will vote in congress according to what the people have previously voted through the internet using Agora.
The Control Revolution And Its Discontents - "the long process of algorithmisation over the last 150 years has also, wherever possible, replaced implicit rules/contracts and principal-agent relationships with explicit processes and rules."
The Future of History (non-gated, summary): Many have noted that democracy [1,2,3] does not often sit well with capitalism [1,2,3], but Foreign Affairs argues in its latest issue that, while the ideological battle was won in the 20th century, the challenge of 21st is one of implementation -- how to make liberal democracy work. [more inside]
Rethinking the Idea of 'Christian Europe'. Kenan Malik's essay is awarded 3 Quarks Daily's Top Quark for politics & social science by judge Stephen M. Walt: "Soldiers in today’s culture wars believe 'European civilization' rests on a set of unchanging principles that are perennially under siege—from godless communism, secular humanism, and most recently, radical Islam. For many of these zealots, what makes the 'West' unique are its Judeo-Christian roots. In this calm and elegantly-written reflection on the past two millenia, Malik shows that Christianity is only one of the many sources of 'Western' culture, and that many of the ideas we now think of as 'bedrock' values were in fact borrowed from other cultures. This essay is a potent antidote to those who believe a 'clash of civilizations' is inevitable—if not already underway—and the moral in Malik’s account could not be clearer. Openness to outside influences has been the true source of European prominence; erecting ramparts against others will impoverish and endanger us all."
"The political elite have actually no interest in explaining to the people that important decisions are made in Strasbourg; they are only afraid of losing their own power." Jürgen Habermas on the crisis of the European project and how it could be overcome.
David Graeber profile: Meet the anthropologist, activist [1,2], and anarchist who helped transform a hapless rally into a global protest movement... " 'Most people don't think anarchism is a bad idea. They think it's insane,' says Graeber. 'Yeah, sure it would be great not to have prisons and police and hierarchical structures of authority, but everybody would just start killing each other. That wouldn't work, right?' Graeber's father, however, had seen it work."
Standing up for the little guy. Robert Reich spoke last night on the steps of Sproul Hall at UC Berkeley -- the epicenter of recent violence -- as the speaker for the Mario Savio memorial lecture. Reich has been making the rounds, both within corporations, in the media, and at Occupy events, has been lecturing on the dangers of inequality well before the current income/opportunity disparity crisis. "There is going to come a time when the (inequality) trends we are seeing are going to cause something to snap... There are two kinds of snaps... one is the snap back... and the other is the snap break."
Peter Orszag (previously of Obama's OMB) argues that circumventing democracy is the best way to save it, but Catherine Rampell isn't sold, and Uwe Reinhardt points out that technocrats base "science" on moral values.
Why A Heterosexual, Married, North Carolinian Father Of Three Cares About LGBT Equality. Married father of three boys writes eloquently about the reasons why he opposes the proposed constitutional amendment banning any legal relationship recognition for same-sex couples. The amendment goes before voters in May primary election, when heavy Republican turnout is expected. Meanwhile Senator Goolsby says that it is all about "empowering voters" "so no activist judge is able to decide on his or her own what marriage is." [original]
"Change Proposed for State's Electoral Vote Process." Gov. Tom Corbett and state Senate Majority Leader Dominic Pileggi are proposing that Pennsylvania divide up its Electoral College votes according to which candidates carried each Congressional district, plus two votes for the statewide winner. Talking Points Memo says that under the proposed plan Obama would have received only 11 of the state's 20 electors in 2008; Dave Weigel and Nick Baumann say gerrymandering could mean that in 2012 Obama could actually wind up with a minority of the state's electors even if he carries the state. GOP-led legislatures in other states, such as Wisconsin and Michigan, could make similar moves. But could this be a bridge too far for some members of the state's GOP caucus? [more inside]
Cameron said: “Free flow of information can be used for good. But it can also be used for ill. And when people are using social media for violence, we need to stop them.”
Anger, Politics and the Wisdom of Uncertainty - "If there's somebody or even some institution to blame, it turns out people are much more likely to get angry... anger tends to inspire individuals to engage in more political activities than they would otherwise... Without someone to blame, respondents mostly just grow fearful and anxious... A particular danger of anger seems to be closed-mindedness. Research finds that when citizens get angry, they close themselves off to alternative views and redouble their sense of conviction in their existing views. Fear and anxiety, on the other hand, seem to promote openness to alternative viewpoints and a willingness to compromise." (via) [more inside]