Browsing articles tagged with " economics"
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 1, 2012
boyce

Robert F. Kennedy versus GDP

Hear Robert F. Kennedy’s words, just as compelling today as when they were spoken shortly before his assassination in 1968:

Source: http://www.youtube.com/watch?v=77IdKFqXbUY

Jan 19, 2012
boyce
Comments Off on Econ4: Changing the Way We Look at Economics

Econ4: Changing the Way We Look at Economics

Fast Company (fastcoexist.com) reports on Econ4:

“We’re economists: we want to promote not only the supply of new economics teaching but also student demand for it.”

 

Read the story and accompanying interview here.

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.

Jan 11, 2012
boyce
Comments Off on Economic fallacies: time to work more, or less?

Economic fallacies: time to work more, or less?

Writing in The Guardian, Econ4 team member Juliet Schor explains the economic logic of a shorter working week:
In the models of neo-classical economics times like the present are assumed away. But when we’re actually living through them, we need to recognise that measures that result in higher hours can be counter-productive by creating more unemployment and investor pessimism. Similarly, responding to shortfalls in pension programs by asking people to stay in the labour force more years further dis-equilibrates the market by creating more demand for a limited number of jobs.
Read her piece here.
Jan 9, 2012
boyce
Comments Off on Ethics in economics: a step forward

Ethics in economics: a step forward

The Wall Street Journal, reporting on the American Economics Association’s recent decision to require economists to disclose potential conflicts of interest, quotes Econ4’s George DeMartino and Gerald Epstein, leading advocates of uploading ethics into the profession.

George DeMartino, a University of Denver professor who headed the panel, has argued for the adoption of an even broader “economists’ oath” that would address questions like the ethics of advising dictators and the responsibility of economists to stand up for the poor.

Gerald Epstein, a professor at the University of Massachusetts at Amherst who has previously criticized economists’ lack of disclosure, in an email called the policy “a very big step forward.” He said the call for disclosure in nonacademic work, though nonbinding was particularly important because it will help “set norms of behavior that colleagues, the press, students and citizens can help hold economists accountable to.”

Read the story here.

Jan 7, 2012
boyce
Comments Off on Tent City University

Tent City University

The U.K.’s “Tent City University” offers a short course in occupied economics:

http://tentcityuniversity.occupylsx.org/?page_id=172

Dec 30, 2011
boyce
Comments Off on Globalization of protest

Globalization of protest

From Nobel laureate Joseph Stiglitz:

The best government that money can buy is no longer good enough.

 

Read his piece here.

Dec 27, 2011
boyce

Video: America Beyond Capitalism

“If it can happen in Cleveland, it can happen anywhere.” Gar Alperovitz on an alternative to state socialism and corporate capitalism:

Source: The Real News Network.

 

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