Blame the unemployed?
Think about it: if labor supply exceeds labor demand – in other words, there are people who want to work but can’t find jobs – is the solution to expand labor supply? How could that help if there’s already excess labor supply?? Yet some politicians think that people aren’t working because unemployment benefits are too generous. Their solution: cut benefits, then the lazy bums will get out of their hammocks and look for work. And then we’ll get … hmm … more people looking for work and not finding it.
Paul Krugman breaks it down in his New York Times column:
The war on the unemployed isn’t motivated solely by cruelty; rather, it’s a case of meanspiritedness converging with bad economic analysis.
Read his piece here.
Grow the good, shrink the bad
Econ4’s James Boyce writes that we need better measures of economic well-being, better public policies, and better language:
We need to move beyond the stale “pro-growth” versus “anti-growth” rhetoric of the past. It’s time to raise a new banner: Grow the good and shrink the bad.
Read more here.
Unlocking our climate wealth
Econ4’s James Boyce on how to translate good principles into good practice:
Source: http://tedxtraversecity.com/videos/
Just do the math
Former Labor Secretary Robert Reich writes:
The means of most Americans haven’t kept up with what the economy could and should provide. The economy is twice as large as it was three decades ago, and yet the typical American is earning about the same, adjusted for inflation.
Read more here.
Chomsky on student debt
From a wide-ranging interview with Noam Chomsky:
[O]ne of the main problems for students today — a huge problem — is sky-rocketing tuitions. Why do we have tuitions that are completely out-of-line with other countries, even with our own history? In the 1950s the United States was a much poorer country than it is today, and yet higher education was … pretty much free, or low fees or no fees for huge numbers of people. There hasn’t been an economic change that’s made it necessary, now, to have very high tuitions, far more than when we were a poor country.
Read Chomsky’s breakdown of the rich-country-indebted-student paradox here.
Student debt hits the fan
Jason Sattler writes that Senator Elizabeth Warren is asking a good question:
Why does the government give the big banks a better deal than it gives students?
It’s question so perfect that people can’t stop talking about it.
The first standalone bill from Senator Elizabeth Warren (D-MA) would not only prevent student loan rates from doubling, it would cut them down to the same rate the Fed charges banks to borrow money overnight for the next 12 months. And the idea has taken off like wildfire, with more than 400,000 people signing on to support the legislation.
Read more here.
The ghost in the economy’s attic
Econ4’s Gerald Friedman writes:
Even while scholarship has exposed the fallacy of austerity economics and this news has reached wide audiences through Twitter and the Colbert Report, the United States government is embracing austerity’s policy prescriptions… The ghost of bad austerity economics continues to haunt, and even to drive, the living.
Read his piece here.
Austerity’s emperors have no clothes
Stephen Colbert skewers the Harvard economists whose flawed research underpins austerity politics:
Check out Colbert’s interview with UMass-Amherst economics graduate student Thomas Herndon, who showed that austerity’s emperors have no clothes:
Austerity fiasco
The revelation by UMass-Amherst researchers that a key Harvard study used to support austerity economics was based on sloppy (mis)use of data has created a sensation in the media and the economics profession. Paul Krugman explains the selling power of junk economics:
The intellectual edifice of austerity economics rests largely on two academic papers that were seized on by policy makers, without ever having been properly vetted, because they said what the Very Serious People wanted to hear.
Read Krugman’s piece here.
Read a brief summary by UMass economists here.
See links to media coverage here.
Who’s got the world’s wealth?
The world’s richest 300 people have as much wealth as the poorest 3 billion:
Source: http://www.youtube.com/watch?v=uWSxzjyMNpU
