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]
Happy Political Clusterf*ck Day (U.S.)
In one corner: the first federal government shutdown
, 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
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]
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
investments. However, it could be equally entitled: How The Industrial Age Political-Economy Doesn't Work Anymore
, viz. Surviving Progress (2011)
... [more inside]
"Trusting your child with someone else is one of the hardest things that a parent has to do — and in the United States, it’s harder still, because American day care is a mess.
About 8.2 million kids—about 40 percent of children under five — spend at least part of their week in the care of somebody other than a parent. Most of them are in centers, although a sizable minority attend home day cares.... In other countries, such services are subsidized and well-regulated. In the United States, despite the fact that work and family life has changed profoundly in recent decades, we lack anything resembling an actual child care system. Excellent day cares are available, of course, if you have the money to pay for them and the luck to secure a spot. But the overall quality is wildly uneven and barely monitored, and at the lower end, it’s Dickensian."
Tails of the Unexpected:
"Normality has been an accepted wisdom in economics and finance for a century or more. Yet in real-world systems, nothing could be less normal than normality. Tails should not be unexpected, for they are the rule." An eminently human-readable explanation of why normal models fail to describe the uncertainties of our abnormal world. [more inside]
Louisiana monks go to court to sell their caskets.
“The number one thing you should do as a public interest litigator is to get monks as your clients in every single case.”
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."
This is why I don't give you a job.
Hungarian blogger Jakab Andor
breaks down the numbers and explains why taxes and regulations make it highly unappealing for him to start a small business employing people in Hungary. He also argues that these same factors make women and older people particularly unappealing prospects. His comments generated quite a bit of controversy
(warning: most comments in Hungarian), to which he responded with an offer
"Any industry would be proud of an average annual growth rate of 34% over ten years and of a global reach from Austria to Taiwan. But the headlong expansion of exchange-traded funds (ETFs), which by May this year controlled almost $1.5 trillion of assets (not far short of the $2 trillion in hedge funds), has become a matter for concern among financial regulators. Could ETFs be the next source of financial scandal, or even of systemic risk?
" Characterizing the Financial sector "like a hyperactive child" that "can never leave a good thing be", The Economist
appears to be wishing
for the ETFs
to be better regulated
because "it would be a shame if reckless expansion spoiled a good innovation".
Interview with Gary Gorton
) - Fascinating look at private institutional bank money
creation (really) and subsequent run on the shadow banking system that hearkens back to the late-19th century banking crises
with securitization playing the role of checking before the advent of deposit insurance. "Gorton is a lucid narrator of a complex tale
." (via via
Limited Purpose Banking
-- for lending
. -- Turn all financial firms into mutual funds:
"All mutual funds would break the buck
with one exception: cash mutual funds. These funds would strictly hold cash and be valued at $1 per share. Owners of these funds would write checks against their balances and never have to worry about a bank run. Fractional reserve banking
and the FDIC would be history
] [more inside]
Why are American voters reluctant
to support free market
policies when professional economists have achieved near-consensus
? Bryan Caplan of the Cato Institute investigates
Environmentalism, globalization and national economies, 1980-2000
in Social Forces
, Dec 06] Triple-punch! (1) "We find no impact of environmentalism on foreign investment and trade. Firms and investment do not appear to be fleeing countries with strong environmental standards." (2) "While it is common to assume that environmentalism targets industry, the agricultural sector may be [negatively] affected more significantly." (2) "[S]ociologists influenced by world-system theory [posit that] the relationship between environmentalism and growth could be spurious: environmentalism does not cause growth, but rather coincides with the economic success of core nations. However, broader results do not support this."