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]
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]
The End of Banking: Money, Credit, and the Digital Revolution - "Unregulated banking with access to government guarantees is an enticing business model. It offers the profits of excessive risk-taking in good times, and allows passing on the inevitable losses to taxpayers in bad times." [more inside]
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
Scott Aaronson on building a 'PageRank' for (eigen)morality and (eigen)trust - "Now, would those with axes to grind try to subvert such a system the instant it went online? Certainly. For example, I assume that millions of people would rate Conservapedia as a more trustworthy source than Wikipedia—and would rate other people who had done so as, themselves, trustworthy sources, while rating as untrustworthy anyone who called Conservapedia untrustworthy. So there would arise a parallel world of trust and consensus and 'expertise', mutually-reinforcing yet nearly disjoint from the world of the real. But here's the thing: anyone would be able to see, with the click of a mouse, the extent to which this parallel world had diverged from the real one." [more inside]
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]
UN Climate Report: We Must Focus On 'Decarbonization', and It Won't Wreck the Economy - "The basic message is simple: We share a planet. Let's start acting like it." [more inside]
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]
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]
The Two Cultures and the Scientific Revolution - "[Charles Percy Snow] was pleading for a more adequately educated ruling class so that the suffering of the poor might be ameliorated... Snow wanted to believe something like this: political decisions in the modern world often concern how to deploy science and technology, so people well-trained in science and technology will be better prepared to make those decisions. But that's a syllogism without a minor premise." (previously) [more inside]
Congress takes a casual look at the peer-to-peer economy - “Finding new ways to monetise used or existing assets has the obvious and immediate effects of raising their value and the wealth of their owners, while simultaneously reducing the value of comparable stuff owned by incumbent companies — for whom monetisation already wasn’t a problem, and who find themselves burdened by the newly competitive environment. The innovations also provide a surplus to those consumers who previously would have paid more to an incumbent. And all without any new stuff actually having to be made.” [more inside]
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]
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]
The Department of Justice filed a lawsuit yesterday (after a long investigation) against the state of Florida alleging the state is in violation of the Americans with Disabilities Act (ADA) in its administration of its service system for children with significant medical needs. [more inside]
Rising Demand for Long-Term Services and Supports for Elderly People (pdf, 574 kb) - "By 2050, one-fifth of the total U.S. population will be elderly (that is, 65 or older), up from 12 percent in 2000 and 8 percent in 1950. The number of people age 85 or older will grow the fastest over the next few decades, constituting 4 percent of the population by 2050, or 10 times its share in 1950. That growth in the elderly population will bring a corresponding surge in the number of elderly people with functional and cognitive limitations."
Economists and the theory of politics - "why unions were often well worth any deadweight cost" [more inside]
seaQuest: what if we could learn to live on/underneath the oceans (or in orbit)? [previously(er)] [more inside]
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]
Trade-offs between inequality, productivity, and employment - "The poor do not employ one another, because the necessities they require are produced and sold so cheaply by the rich. The rich are glad to sell to the poor, as long as the poor can come up with property or debt claims or other forms of insurance to offer as payment..." [more inside]
Start Your Own Currency - "In the Catalonia region of Spain, a restaurant and a community garden are part of an experiment in alternative cash--they are accepting a home-grown currency called the Eco as well as the Euro." [viz. gated article (Google link), cf. The Wörgl Experiment]
In Praise of Leisure - "Imagine a world in which most people worked only 15 hours a week. They would be paid as much as, or even more than, they now are, because the fruits of their labor would be distributed more evenly across society. Leisure would occupy far more of their waking hours than work. It was exactly this prospect that John Maynard Keynes conjured up in a little essay published in 1930 called 'Economic Possibilities for Our Grandchildren.' Its thesis was simple. As technological progress made possible an increase in the output of goods per hour worked, people would have to work less and less to satisfy their needs, until in the end they would have to work hardly at all... He thought this condition might be reached in about 100 years — that is, by 2030." (via) [more inside]
Why Nations Fail - In a nutshell: "Proximately, prosperity is generated by investment and innovation, but these are acts of faith: investors and innovators must have credible reasons to think that, if successful, they will not be plundered by the powerful. For the polity to provide such reassurance, two conditions have to hold: power has to be centralised and the institutions of power have to be inclusive." [more inside]
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."
Remove the scourge of conflict - "Taming mass violence is the theme of the World Bank's latest World Development Report, which focuses on 'conflict, security and development' [pdf] ... Mass violence destroys all hopes of progress. We should make a huge effort to eliminate this scourge. It seems feasible. It is desirable. So try."
Fareed Zakaria: Are America's Best Days Behind Us? - "We have an Electoral College that no one understands and a Senate that doesn't work, with rules and traditions that allow a single Senator to obstruct democracy without even explaining why. We have a crazy-quilt patchwork of towns, municipalities and states with overlapping authority, bureaucracies and resulting waste. We have a political system geared toward ceaseless fundraising and pandering to the interests of the present with no ability to plan, invest or build for the future. And if one mentions any of this, why, one is being unpatriotic, because we have the perfect system of government, handed down to us by demigods who walked the earth in the late 18th century and who serve as models for us today and forever. America's founders would have been profoundly annoyed by this kind of unreflective ancestor worship." [for/against]
Out of thin air? "Have you ever said something like 'Let me buy you a beer next week'? I'm sure you have. We all issue promises of this sort. And we frequently use such promises as a form of currency... I have just described a simple credit exchange. Societies rely heavily on promising-making and promise-keeping. It is the foundation of all financial markets. I'd like to point out something about the promises you make. They are made 'out of thin air.' " [more inside]
How to feed 9 billion people: The global food supply is starting to get tight, with increasing sensitivity to droughts and floods causing price spikes and food shortages. The UK commissioned a report to examine how to feed a planet with a population that is set to increase to 9 billion by 2050. [more inside]
Trust, Coordination Technology* & The Experience Economy - "It could be that the nature of technological change isn't causing the slowdown** but a shift in values.*** It could be that in an industrial economy people develop a materialist mind-set and believe that improving their income is the same thing as improving their quality of life. But in an affluent information-driven world, people embrace the postmaterialist mind-set. They realize they can improve their quality of life without actually producing more wealth." (via mr) [more inside]
Life after Capitalism - Beyond capitalism, it seems, stretches a vista of... capitalism: [more inside]
Starting by fighting for her own children's rights, she ends up in government implementing the UN Convention on Disability Rights.
The Irish Banking Crisis: A Parable - What happened when the Irish stood up to the bankers in the 1970s? cf. Why Wall Street won't get shrunk & The Inequality That Matters [more inside]
Elizabeth Warren on setting up the Bureau of Consumer Financial Protection - lecture starts here, but really starts getting good here: "I feel like this is a boring speech." stay for the Q&A.
The Birth of Sharing Law and the Rise of Co-ops - "A new sharing economy is emerging — but how does it fit within our legal system? Time for a whole new field of cooperation law." (via wc)
With capitalism in crisis, can it be sustained or is it altogether outdated? As Umair Haque asks though, perhaps a better question is: "are organizations and markets making decisions that help make people, communities, and society better off in the long run, by allocating their scarce resources to the most productive uses?" [more inside]
The Politically Incorrect Guide to Ending Poverty In the 1990s, Paul Romer revolutionized economics. In the Aughts, he became rich as a software entrepreneur. Now he's trying to help the poorest countries grow rich—by convincing them to establish foreign-run "charter cities" within their borders. Romer's idea is unconventional, even neo-colonial—the best analogy is Britain's historic lease of Hong Kong. And against all odds, he just might make it happen. (via cc) [more inside]
How to Save a Dying Ocean - "New England fishermen have mixed feelings about a programme designed to allow overfished species to recover. Mark Schrope reports on how catch shares have scientists fishing for answers." (via) [more inside]
What if our economy was not built on competition? Nobel Prize winner Elinor Ostrom talks about her work on cooperation in economics. [more inside]
The New Kaldor Facts: Ideas, Institutions, Population, and Human Capital [pdf] - "For now, we think that progress is likely to be most rapid if we follow the example of the neoclassical model and treat institutions the way the neoclassical model treated technology... Further out on the horizon, one may hope for a successful conclusion to the ongoing hunt for a simple model  of institutional evolution. Combining that with the unified approach to growth outlined here would surely constitute the economics equivalent of a grand unified theory..." [2, viz. previously] This might, as it were, be a subset of collective cognition (or, possibly, autism ).
Paul Romer: A Theory of History, with an Application - "His economic theory of history explains phenomena such as the constant improvement of the human standard of living by looking primarily at just two forms of innovative ideas: technology and rules." (previously, via) [more inside]
What is the future of capitalism?
b) Canada* (,)
c) 'smart growth' (viz.)
d) none of the above** [more inside]
b) Canada* (,)
c) 'smart growth' (viz.)
d) none of the above** [more inside]
A society without power relations can only be an abstraction. Which, be it said in passing, makes all the more politically necessary the analysis of power relations in a given society, their historical formation, the source of their strength or fragility, the conditions which are necessary to transform some or to abolish others. For to say that there cannot be a society without power relations is not to say either that those which are established are necessary or, in any case, that power constitutes a fatality at the heart of societies, such that it cannot be undermined. Instead, I would say that the analysis, elaboration, and bringing into question of power relations and the "agonism" between power relations and the intransitivity of freedom is a permanent political task inherent in all social existence."Saint" Michel Foucault (1926-1984) transformed Western thought. Institutions -- prisons, asylums, clinics -- define the rhythm of our daily existence; Foucault found that they also determine the way we think. The search for the political and philosophical implications of this insight led him to biology and economics, linguistics and the study of sexuality. In Foucault's eyes, intellectual activity, however radical, could never be divorced from the techniques of power. This is why some have accused him of political quietism. Other critics say he was simply a bad scholar. Who was the real Foucault? "Anarchist, leftist, ostentatious or disguised Marxist, nihilist, explicit or secret anti-Marxist, technocrat in the service of Gaullism, new liberal," gay saint, charlatan, or something else entirely? Perhaps we have posed the question incorrectly...
Early reports on cultural institutions in Katrina's path. From The American Association of Museums.