Browsing articles in "Articles"
Jul 13, 2012
boyce
Comments Off on Bringing Bad Things to Life

Bringing Bad Things to Life

In the second installment of “Capitalism Unmasked,” Econ4’s joint project with AlterNet, Doug Smith lays out the difference between profiting from market successes and profiting from market failures:

Capitalists can pick between two responses to markets that are failing. They can bet their capital on fixing them – on bringing more good things to life. Or, they can do everything possible to extract more and more profit by extending, expanding and exacerbating the failures.

Read more here.

Jul 13, 2012
boyce
Comments Off on How Paris Hilton’s Dogs Ended up Better off than You

How Paris Hilton’s Dogs Ended up Better off than You

Jerry Friedman recounts the gripping story of the greatest heist ever in the first installment of “Capitalism Unmasked,” Econ4’s joint project with AlterNet:

Elites say that we need inequality to encourage the rich to invest and the creative to invent. That’s working out well — for 1% pooches.

 

Read all about it here.

Jun 11, 2012
boyce
Comments Off on Gar Alperovitz on the new economy movement

Gar Alperovitz on the new economy movement

Just beneath the surface of traditional media attention, something vital has been gathering force and is about to explode into public consciousness.

 

Read about it here.

Jun 7, 2012
boyce
Comments Off on Rent-seeking in America

Rent-seeking in America

Nobel laureate Joe Stiglitz defines rent-seeking as “using political and economic power to get a larger share of the national pie, rather than to grow the national pie” – and he says that America today has become a rent-seeking society. Hear him interviewed here (the 7:40-8:55 interval for the rent-seeking passage), discussing on his new book, The Price of Inequality.

May 19, 2012
boyce
Comments Off on Too hot for TED?

Too hot for TED?

Something funny happened when millionaire Nick Hanauer’s was invited to give a TED talk on income inequality in America. He advocated higher taxes on the rich – including people like himself. Then the good people at TED decided his talk was too “political.” They decided not to post it. Here’s an excerpt from Hanauer’s non-talk:

We’ve had it backward for the last 30 years. Rich businesspeople like me don’t create jobs. Rather they are a consequence of an eco-systemic  feedback loop animated by middle-class consumers, and when they thrive, businesses grow and hire, and owners profit. That’s why taxing the rich to pay for investments that benefit all is a great deal for both the middle class and the rich.

Read the full text of Hanauer’s non-talk here.

See his powerpoint slides here.

Read the backstory here.

May 18, 2012
boyce
Comments Off on People’s Guide to the Federal Budget

People’s Guide to the Federal Budget

New from the National Priorities Project:

The only thing stronger than money in politics is an informed electorate.

 

Find the report here.

 

Feb 17, 2012
boyce

Mainstream amnesia

Econ4 team member Gerald Epstein writes for TripleCrisis on the “Memento syndrome” in orthodox macroeconomics:

Like the protagonist in the movie Memento, who has no memory but is trying to solve the mystery of his wife’s murder, and has to remind himself every minute about what happened the minute before by writing notes and even tattooing himself , mainstream macroeconomists’  write themselves articles and books after every crisis and they then promptly forget what they wrote (no tattoos as far as I know).

I believe there is a reason for this: the mainstream never changes its underlying theory which is based on the erroneous ideas that financial markets are, by and large, perfectly self-governing and efficient and that the market economy has strong self-equilibrating forces that always bring the economy back to full employment… Since they won’t change their basic framework, they have nowhere to put the new information they get after each crisis. So, they forget it just as soon as they can…  The tragedy is that it is these same economists who still control the elite economics departments, the main economics journals and hold the key policy making and research positions in our public institutions such as the Federal Reserve. Their stranglehold must be broken if we are going to break the Memento syndrome that is hindering sensible economics and economic policy.

Read his piece here.

Feb 17, 2012
boyce

Dividends for the people

Peter Barnes, author of Capitalism 3.0, writes for onthecommons.org:

Why don’t we pay everyone some non-labor income — you know, the kind of money that flows disproportionally to the rich? I’m not talking about redistribution here, I’m talking about paying dividends to equity owners in good old capitalist fashion. Except that the equity owners in question aren’t owners of private wealth, they’re owners of common wealth. Which is to say, all of us.

One state—Alaska—already does this. The Alaska Permanent Fund uses revenue from state oil leases to invest in stocks, bonds and similar assets, and from those investments pays equal dividends to every resident. Since 1980, these dividends have ranged from $1,000 to $2,000 per year per person, including children (meaning that they’ve reached up to $8,000 per year for households of four). It’s therefore no accident that, compared to other states, Alaska has the third highest median income and the second highest income equality.

Alaska’s model can be extended to any state or nation, whether or not they have oil. Imagine an American Permanent Fund that pays dividends to all Americans, one person, one share. A major source of revenue could be clean air, nature’s gift to us all. Polluters have been freely dumping ever-increasing amounts of gunk into our air, contributing to ill-health, acid rain and climate change. But what if we required polluters to bid for and pay for permits to pollute our air, and decreased the number of permits every year? Pollution would decrease, and as it did, pollution prices would rise. Less pollution would yield more revenue. Over time, trillions of dollars would be available for dividends.

Read his piece here.

Feb 15, 2012
boyce
Comments Off on U.S. Defense Department budget since WW2

U.S. Defense Department budget since WW2

Food for thought from the National Priorities Project:

As the chart below shows, current defense spending levels – even without funding for the wars in Iraq and Afghanistan – are higher than at any time since World War II when adjusted for inflation.

 

Source:  http://nationalpriorities.org/publications/2012/talking-about-military-spending-and-the-pentagon-budget/

Jan 14, 2012
boyce
Comments Off on Unequal and unstable

Unequal and unstable

Anant Thaker of the Boston Consulting Group and Elizabeth Williamson of the Frontenac Company look at the strong historical relationship between income inequality and America’s vulnerability to financial crises:
The correlation between income inequality and financial crises raises an important question: could it be that extended periods of increased income inequality help to cause financial crises? Evidence suggests this may well be the case, through three primary mechanisms that reinforce each other:
  • Sharp increases in debt-to-income ratios among lower- and middle-income households looking to maintain consumption levels as they fall behind in terms of income;
  • The creation of large pools of idle wealth, which increase the demand for investment assets, fuel financial innovation, and increase the size of the financial sector;
  • And disproportionate political power for elite financial interests which often yields policies that negatively affect the stability of the financial system.

Read their analysis here.