Showing papers in "Challenge in 2015"
TL;DR: The authors argue that there are serious structural imbalances in the US economy that make a deep recession likely and there is no natural process by which the economy will recover in short order Rather, it will require serious government spending to restore economic growth.
Abstract: The authors argue that there are serious structural imbalances in the US economy that make a deep recession likely In fact, they say there is no natural process by which the economy will recover in short order Rather, it will require serious government spending to restore economic growth
30 citations
TL;DR: In this article, the authors compare experiences in the United States to those in Sweden and Iceland to draw useful lessons and compare the two countries' experiences in terms of economic and financial crisis.
Abstract: Economic growth is produced in part by the accumulation of different kinds of capital, including social capital in its several forms. If such capital depreciates, including social capital, the economy can be undermined and financial and economic crises can follow. The author compares experiences in the United States to those in Sweden and Iceland to draw useful lessons.
25 citations
TL;DR: In this paper, the authors argue that the Internet and other information technology technologies are not the answer to growth in the developing world, unless these countries make adequate investment in education, infrastructure, and research and development.
Abstract: Are the Internet and other information technology the answer to growth in the developing world? This development economist answers "no," unless these countries make adequate investment in education, infrastructure, and research and development. This is no small order.
19 citations
TL;DR: In this article, the authors take a comprehensive look at the state of our society and present a thorough piece about not only rising inequality and slow wage growth but also social values we hold dear.
Abstract: Sometimes we have to step back and take a comprehensive look at the state of our society. The authors do just this in a thorough piece about not only rising inequality and slow wage growth but also social values we hold dear.
14 citations
TL;DR: In this paper, the author outlines Keynes's thinking back to 1944, which argued for capital controls from both donor and recipient countries and explains why Keynes's ideas on this issue are relevant today, though they were watered down back then.
Abstract: John Maynard Keynes had been concerned with controlling speculative movements of capital internationally and finding a cooperative way to control them among nations. Financial crises of 1997–1998 and 2008 have raised the profile once again of Keynes’s concerns. The author outlines Keynes’s thinking back to 1944, which argued for capital controls from both donor and recipient countries. He explains why Keynes’s ideas on this issue are relevant today, though they were watered down back then.
13 citations
TL;DR: In this paper, the authors examined why tuition for both private and public education has risen so much faster than inflation or family incomes, and pointed out that the extent of the pr...
Abstract: In this original analysis, the author examines why tuition for both private and public education has risen so much faster than inflation or family incomes. As one indication if the extent of the pr...
10 citations
TL;DR: A Review of The Political Economy of Human Happiness: How Voters' Choices Determine the Quality of Life, by Benjamin Radcliff (Cambridge, UK: Cambridge University Press, 2013) as discussed by the authors.
Abstract: A Review of The Political Economy of Human Happiness: How Voters’ Choices Determine the Quality of Life, by Benjamin Radcliff (Cambridge, UK: Cambridge University Press, 2013). $29.99, paperback, 2...
9 citations
TL;DR: The anti-corruption industry, with economists at the helm, has focused its efforts mostly on "need" corruption in poor countries as discussed by the authors, and this focus has deflected attention away from the "greed" and other kinds of damaging corruption now prevalent in the West.
Abstract: The anti-corruption industry, with economists at the helm, has focused its efforts mostly on “need” corruption in poor countries. This anthropologist, with lots of field experience, says that this focus has deflected attention away from the “greed” and other kinds of damaging corruption now prevalent in the West.
9 citations
TL;DR: The authors investigate the clash between general theory and practical constraints and find in Keynes some answers to difficult questions, such as whether general theory can provide answers to hard questions in the real world.
Abstract: The authors investigate the clash between general theory and practical constraints. They find in Keynes some answers to difficult questions.
8 citations
TL;DR: The authors presents a tour de force of analysis about why orthodox views that a hike in the minimum wage will be costly to the economy overall remain, even when new empirical data show that a higher minimum wage does not cost jobs.
Abstract: There has been a growing chorus in favor of a much higher minimum wage But the ongoing pressure from orthodox economists keeps a lid on just how high the rate can go Even when new empirical data show that a higher minimum wage does not cost jobs, the orthodoxy remains convinced it will Why is this? Few examinations are as thorough as the author presents here It is a tour de force of analysis about why orthodox views that a hike in the minimum wage will be costly to the economy overall remain
8 citations
TL;DR: More than half of high school students study economics, but what have they learned? as discussed by the authors found that they learn about economics but not the economy, which is not the right curriculum for a nation dealing with high unemployment and inequality.
Abstract: More than half of high school students study economics. But what have they learned? This remarkably resourceful author finds that they learn about economics but not the economy. There are some mentions of poverty and the minimum wage but none of insider trading and downsizing in these texts, but a lot about the basic tools of neoclassical economics. Is that the right curriculum for a nation dealing with high unemployment and inequality? Gans thinks not.
TL;DR: In early 2015, the president dropped demand-side policies in favor of market-led policies and proposed policies that do not seem as yet to be benefiting the economy as discussed by the authors, and assess the damage and propose policies that are still consistent with post-Keynesian views.
Abstract: The Brazilian economy grew rapidly until the past few years. A downturn in commodities prices led to recession, despite demand-led policies. In early 2015, the president dropped demand-side policies in favor of market-led policies. They do not seem as yet to be benefiting the economy. These two authors assess the damage and propose policies that are still consistent with post-Keynesian views.
TL;DR: The authors analyzes Stiglitz's major theoretical thinking about economic development in poor countries and concludes that his recent reputation has most to do with his rebellious attitudes at the World Bank, where he was one of the most influential economists in the world.
Abstract: When in 2001 Joseph Stiglitz won the Nobel Memorial Prize in economic sciences, along with two other economists, many rejoiced that market imperfections were at last getting some recognition. But Stiglitz's recent reputation has most to do with his rebellious attitudes at the World Bank. The author of our piece analyzes Stiglitz's major theoretical thinking about economic development in poor countries.
TL;DR: In fact, the US government helped to carry out the successful overthrow of the democratically elected but Russia-friendly government of Ukraine as discussed by the authors, and other western governments see the crisis as a way to fortify the fragile western alliance under US leadership by putting into action the oldest generalization in sociology.
Abstract: The Ukraine crisis is generally presented in the West as a war between Russia and Ukraine It is more accurately a civil war with international intervention In fact, the US government helped to carry out the successful overthrow of the legitimately elected—but Russia-friendly—Ukrainian government It and other western governments see the crisis as a way to fortify the fragile western alliance under US leadership by putting into action the oldest generalization in sociology: a common external enemy induces internal cooperation We should be debating whether the US and other western governments have the right to overthrow a legitimately elected government and then help the new government it helped replace subordinate a large ethnic minority
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TL;DR: Palley as discussed by the authors argues that the best way to finance social security is to cut payroll taxes and finance the public pension system from general tax revenues, and that prefunding social security will not increase savings over time.
Abstract: This economist responds to an article on reforms to social security by Thomas Michl in our November– December 2001 issue. Thomas Palley believes the best way to finance social security is to cut payroll taxes and finance the public pension system from general tax revenues. Prefunding social security will not increase savings over time, says the author.
TL;DR: The September 11 crisis elicited almost no economic leadership from the White House, but the monetary authorities acted swiftly to supply liquidity as discussed by the authors, and this economist closely traces the actions of the...
Abstract: The September 11 crisis elicited almost no economic leadership from the White House, but the monetary authorities acted swiftly to supply liquidity. This economist closely traces the actions of the...
TL;DR: This paper argued that the concept that such rates are natural has weakened our possible responses, and discussed other ways to share the burden of unemployment, arguing that we all have a right to work.
Abstract: Must we accept unemployment rates of 5 and 6 percent? The author thinks the concept that such rates are natural has weakened our possible responses. He discusses other ways to share the burden of unemployment. We all have a right to work, he argues.
TL;DR: A Review of The Rise and Fall of Neoliberal Capitalism, by David M. Kotz (Cambridge, MA: Harvard University Press, 2014). $39.95, hardcover, 288 pp.
Abstract: A Review of The Rise and Fall of Neoliberal Capitalism, by David M. Kotz (Cambridge, MA: Harvard University Press, 2014). $39.95, hardcover, 288 pp.In 1998, Daniel Yergin and Joseph Stanislaw publi...
TL;DR: The main argument the author makes is that the euro shows striking similarities to the workings of the interwar monetary system as discussed by the authors, without enjoying any of the advantages of the gold standard, in an important sense.
Abstract: The main argument the author makes is that the euro shows striking similarities to the workings of the interwar monetary system. In an important sense, the euro suffers all the disadvantages of the interwar gold standard, without enjoying any of the advantages.
TL;DR: The economy certainly boomed in the late 1990s, but much of the expansion was based on computers and software that either wear out or become obsolete much more quickly than did traditional capital as mentioned in this paper.
Abstract: The economy certainly boomed in the late 1990s. But much of the expansion was based on computers and software that either wear out or become obsolete much more quickly than did traditional capital ...
TL;DR: In this article, the authors explore cooperative models of the economy and growth and show that replacing less productive entities with more productive ones will not ultimately create enough demand to support growth, and that the creative destruction analysis known as creative destruction is not working.
Abstract: The author claims that the neoliberal analysis known as creative destruction is not working. Replacing less productive entities with more productive ones will not ultimately create enough demand to support growth. What will such a world look like? This is one of the more imaginative pieces we have published, exploring cooperative models of the economy and growth.
TL;DR: In 1989, many Western economists were rapturous about the prospects for Eastern Europe's transition to rapid growth and solid democracy once the Berlin Wall fell in 1989 as mentioned in this paper. The march to capitalism was to be paved with gold.
Abstract: Many Western economists were rapturous about the prospects for Eastern Europe’s transition to rapid growth and solid democracy once the Berlin Wall fell in 1989. The march to capitalism was to be paved with gold. Most of the nations did poorly. Here is the disappointing scorecard.
TL;DR: In this article, the author explains why he believes the ability to tax has been only slightly diminished, but he recognizes the dangers of capital flows more freely around the world and concern is growing that other corporations and individuals can increasingly easily avoid taxes.
Abstract: As capital flows more freely around the world, concern is growing that other corporations and individuals can increasingly easily avoid taxes. In this refreshing analysis, the author explains why he believes the ability to tax has been only slightly diminished. But he recognizes the dangers.
TL;DR: In this article, the authors derive seven lessons from a summer conference on child poverty that we should all know, including the moral stain of America's high child poverty rate and its high poverty rate.
Abstract: Is there a greater moral stain on America than its high child poverty rate? This author derives seven lessons from a summer conference on child poverty that we should all know.
TL;DR: The authors compute several measures of the actual dollar cost of job loss and find it still very high, but the silver lining is that it is at last starting to fall, which is a good sign.
Abstract: Why do so many Americans still feel pessimistic about the economy? These two economists compute several measures of the actual dollar cost of job loss and find it is still very high. The silver lining? It is at last starting to fall.
TL;DR: In the late 1930s, under the shadow of a looming war, John Maynard Keynes looked back at his early views and revised them in a classic essay, "My Early Beliefs".
Abstract: In the late 1930s, under the shadow of a looming war, John Maynard Keynes looked back at his early views and revised them in a classic essay, “My Early Beliefs.” He saw his own views and those of his young colleagues as rather thin when it came to analyzing human nature. A belief in an exclusive and very narrow conception of rationality, he now felt, was erroneous and naive. Humans were hardly purely rational, and a system of economics now had to deal with uncertainty and unstable behavioral relationships. With this, Keynesianism turned away from classical economics. The relevance today, writes this author, is obvious. Economics turned back toward a belief in hyper-rationality in the 1970s and has not yet recovered. Hence, among other things, austerity in Europe.
TL;DR: In this paper, the normal retirement age is increased to cover the shortfall in social security revenues that would result from partial privatization, which would disproportionately hurt those workers who are most dependent on social security benefits.
Abstract: It is likely that substantial changes to social security will be proposed in the near future. Some of these changes include proposals for partial privatization. To cover the shortfall in social security revenues that would result from partial privatization, the normal retirement age may be increased. Such a benefit cut would disproportionately hurt those workers who are most dependent on social security benefits.
TL;DR: Many economists now believe that rising income inequality can contribute to slow growth as mentioned in this paper, arguing that the lack of income in turn sows the seeds of the next recession, and that inequality rises during cyclical upturns.
Abstract: Many economists now believe that rising income inequality can contribute to slow growth. Howard Sherman and Paul Sherman argue that, though little noticed, inequality rises during cyclical upturns. The lack of income in turn sows the seeds of the next recession.
TL;DR: McCloskey has launched a broadside against Thomas Piketty, the celebrated author of the international best seller, Capital in the Twenty-first Century, arguing that inequality is likely to increase over time as discussed by the authors.
Abstract: The talented and engaging Deirdre McCloskey has launched a broadside against Thomas Piketty, the celebrated author of the international best seller, Capital in the Twenty-first Century Piketty argues that inequality is likely to increase over time McCloskey will have none of it, criticizing not merely his empirical methods but also his understanding of free market theory The author rises to Piketty’s defense in a fascinating essay that picks apart McCloskey’s analysis in a devastating and intellectually provocative way