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]
Will we be all right in the end? David Runciman on democracy, fatalism, and the European crisis (LRB)
Social Credit is a movement that takes a different view of economic expansion. Mostly it focuses on how value is created and what happens to the excess value. Proponents can be very aggressive or very mellow but a key part of their philosophy is that we must recognize the value we've inherited from the past. In other words, we don't start our lives with an empty ledger but have inherited many physical and intellectual gifts from previous generations. Recently I began wondering whether we shouldn't look at the other side of the ledger, particularly when it comes to ecological impacts - i.e., the messes we inherit. It turns out that in the early 90s, some social credit economists were writing about this and were even talking about climate change as something that needed to be added to the equation. Is this an idea whose time has finally come?
Adam Humphreys created a successful business helping people navigate the Chinese embassy's bureaucracy (in a van parked across the street).
There will be no big Federal bureaucracy set up for this crash program. Through the courtesy of such volunteers from the communication and media fields, a very simple enlistment form will appear in many of tomorrow's newspapers along with the symbol of this new mobilization, which I am wearing on my lapel. It bears the single word WIN. I think that tells it all. [more inside]
So when the Heartlanders react to evidence of human-induced climate change as if capitalism itself were coming under threat, it’s not because they are paranoid. It’s because they are paying attention. [via the excellent Do the Math]
This is the story of one cut. Back in October 2010 George Osborne announced £95 billion in cuts to public services, saying he’d leave it to councils to choose what to shut down. Inevitably most of the casualties ended up being unrenowned places, unlikely to stir up much protest - drop-in centers in housing estates, inner-city park rangers, community theatres, etc. I wanted to write about just one of them, about the ripples created by a single closure. I made my selection quite randomly. I chose a place called Youthreach. I didn’t know much about them, only that they offered weekly counseling sessions to young people, aged 11–25, in Greenwich, South East London. Jon Ronson
Feminism's Uneven Success: "Class and racial and ethnic differences among women have intensified over time. The higher earnings of college-educated mothers make it possible for them to purchase child care and help with housework (typically performed by low-wage women workers)... the number of low-skill immigrants living in a large city reduces the tradeoff between employment and fertility for women college graduates. Outsourcing of care responsibilities can have many positive effects, but it reduces the potential for cross-class gender coalitions. Emphasis on changes in women’s average or median earnings relative to men often conceals growing inequality among women." (via)
Counterparties is a nice little collection of curated and tagged economic news stories, 5-8 every day. It is edited in part by the admirable (and MetaFave) financial journalist Felix Salmon.
Paul Krugman has really been laying into the hyperinflationists in recent days. And rightfully so... these predictions, as Dr. Krugman notes, were based on a model that is completely wrong. [more inside]
You know about the Great Depression, but do you know about the Long Depression? For a while now some have been suggesting we're in a "Third Depression", not so much like the Great one, but more like the Long Depression (1873–96) of 23 years (originally called the Great Depression). Suggesting "This slump won’t end until 2031". [more inside]
A great contribution to the economics-made-fun genre and food for Mefi thought: Arguing on the internet is addictive because you’re almost always arguing against either a very stupid person or a very smart person, and those are the two types of people most fun to argue with.
A presentation by Dr. Heiner Flassbeck, a former deputy secretary in the German Ministry of Finance and currently chief economist the UN agency for World Trade and Development in Geneva. He talks about EMU and interest rates, and then links it all to class war and America.
The Light Bulb Conspiracy is a documentary about disposable printers, light bulbs and everything else, investigating the implications of the business model and industrial design philosophy of Planned Obsolescence that drives and shapes our economy.
Divided We Stand: Why Inequality Keeps Rising is the latest report from the OECD Directorate for Employment, Labour and Social Affairs. It finds:
In the three decades prior to the recent economic downturn, wage gaps widened and household income inequality increased in a large majority of OECD countries. [...]Launching the report in Paris, OECD Secretary-General Angel Gurría said “The social contract is starting to unravel in many countries. This study dispels the assumptions that the benefits of economic growth will automatically trickle down to the disadvantaged and that greater inequality fosters greater social mobility. Without a comprehensive strategy for inclusive growth, inequality will continue to rise.”Links to Overview [.pdf]; press release; notes [.pdf format] for Australia, Canada, the UK, the USA; data link (excel format).
I was Wrong and So are You. I needed to retract the conclusions I’d trumpeted in The Wall Street Journal. The new results invalidated our original result: under the right circumstances, conservatives and libertarians were as likely as anyone on the left to give wrong answers to economic questions. The proper inference from our work is not that one group is more enlightened, or less. It’s that “myside bias”—the tendency to judge a statement according to how conveniently it fits with one’s settled position—is pervasive among all of America’s political groups. The bias is seen in the data, and in my actions. [more inside]
Here is Coffee: The Greatest Addiction Ever and other neat videos by C.G.P. Grey who explains non-obvious aspects of science, history, geography, elections, and economics in entertaining and clear ways. [more inside]
Critics of the Occupy Wall Street movement have complained that the protestors have no clear goals, so WE DON'T MAKE DEMANDS composed a list of 12 concrete, specific suggestions focusing on economic reform, stronger regulation, and closing loopholes.
In 2009, Urumqi, China exploded in riots. The assessment of Western media was on-going ethnic clashes. Behind the scenes, Beijing now stands accused of The Xinjiang Procedure, ground zero for the organ harvesting of political prisoners. [more inside]
The most economically efficient use of a turkey is to use it for conceptual art while others starve. Generalized equilibrium theory wishes you a happy and Pareto-optimal Thanksgiving, via Cosma Shalizi.
Professor Herwig Schlunk of Vanderbilt University explores whether a law degree is a good investment today. (SSRN link) [more inside]
Economics blog VoxEU debates Why do we need a financial sector? Serious, important and very dull articles discuss the trade-offs and myths of innovation, and whether the sector is overrated, critical or a contributor to the wider economy.
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."
lululemon athletica, the "yoga-inspired athletic apparel company", has rapidly become a brand fixture in the Pacific Northwest since its founding by Chip Wilson in 1998. Recently, a strange ode to Ayn Rand appeared on their website, and a "Who Is John Galt?" advertising campaign has adorned company packaging this November. Meanwhile, one of their employees has been convicted in the bizarre murder of a co-worker, in which the employees of a neighbouring Apple Store ignored the victim's cries for help.
Today I am sharing with you an article arguing that unemployment rates during the Great Depression were overstated, that current unemployment rates are understated and that the two sets of data considered in combination indicate that we are are firmly in Depression-era levels of unemployment.
While Occupy Wall Street has captured the attention of major American politicians, its counterpart in Canada has been mainly a municipal headache. Despite inequality north of the border rising at a comparable rate, and similar political sentiments, most Canadians also believe the movement is ineffective, though their hearts are in the right place. As the movement slows as winter weather sets in, cities are taking various measures to discourage the protests, hoping a combination of inconvenience and weather will disperse the encampments. [more inside]
Richard Wilkinson: How economic inequality harms societies (ted/yt) - "We feel instinctively that societies with huge income gaps are somehow going wrong. Richard Wilkinson charts the hard data on economic inequality, and shows what gets worse when rich and poor are too far apart: real effects on health, lifespan, even such basic values as trust." (previously)
Alyssa Rosenberg of Think Progress on why CBS's new show 2 Broke Girls is the closest thing we have to a 99% Movement Comedy.
Effect of Herman Cain's proposed "9-9-9" tax reform plan on average household tax liability. Cain is leading the field of GOP Presidential candidates in polls of Iowa, South Carolina and Florida. Previously 1 2
Political revolution, the Tea Party, and Occupy Wall Street notwithstanding, what actual policy steps could be taken to prevent the U.S. from falling into a Japanese-like decade of stagnation (or worse)? Economists from the New America Foundation offer a rather balanced, clearly articulated, and comprehensive proposal: The Way Forward. [more inside]
Over the past few centuries, Western cultures have been very good at creating general prosperity for themselves. Historian Niall Ferguson asks: Why the West, and less so the rest? He suggests half a dozen big ideas from Western culture -- call them the 6 killer apps -- that promote wealth, stability and innovation. And in this new century, he says, these apps are all shareable. [more inside]
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.
Are small theaters punching a ticket to oblivion? Radical changes in the traditional structure of the lab processing and exhibition sides of the film industry have been filling the lives of small theater operators with uncertainty and worry for the last few years. Will filmstock be the next Kodachrome? (And what will that mean for the future of film preservation?) [more inside]
BBC News asks independent trader Alessio Rastani "what would keep investors happy, make them feel more confident?" and gets a surprisingly honest answer: "Personally, it doesn't matter. See, I'm a trader. I don't really care about that kind of stuff. If I see an opportunity to make money, I go with that. So, for most traders, we don't really care that much about how they're going to fix the economy, about how they're going to fix the whole situation; our job is to make money from it. And, personally, I've been dreaming of this moment for three years. I have a confession which is I go to bed every night and dream of another recession, I dream of another moment like this." [SLYT]
Obama to Congressional Republicans: pass this jobs bill, or take the blame. The Economist has the details of the plan. Paul Krugman describes the plan as significantly bolder and better than expected. Good news and bad news: Obama's plan would work, but GOP won't pass it. Why not? [more inside]
Robert Reich talks at Google about the biggest problem facing the US economy. [SLYT, 57min]
JS Mill vs. Thomas Carlyle Economics may deserve its reputation for being hardnosed and calculating, not warm and fuzzy. But sometimes it is its critics who are lacking in the spirit of humanity. [more inside]
White House economic policy largely originates with The Council of Economic Advisers, CEA, who directly advise the President of the United States. CEA research and publish the annual Economic Report of the President[ .pdf ], which details the state of the nation's economic health. Today President Barack Obama is expected to nominate Princeton Economist Alan Krueger as chairman of the White House Council of Economic Advisers. Krueger, who previously held the post of Assistant Treasury Secretary for Economic Policy, has written on a wide range of topics, from the economics of rock music [ .pdf ], the causes of terrorism [ .pdf ] and American's changing work / life balance. But Krueger is best known as a labor economist who has extensively researched long term unemployment. [more inside]