Mont Pelerin Society

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pages: 662 words: 180,546

Never Let a Serious Crisis Go to Waste: How Neoliberalism Survived the Financial Meltdown by Philip Mirowski

"Robert Solow", Alvin Roth, Andrei Shleifer, asset-backed security, bank run, barriers to entry, Basel III, Berlin Wall, Bernie Madoff, Bernie Sanders, Black Swan, blue-collar work, Bretton Woods, Brownian motion, business cycle, capital controls, Carmen Reinhart, Cass Sunstein, central bank independence, cognitive dissonance, collapse of Lehman Brothers, collateralized debt obligation, complexity theory, constrained optimization, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, dark matter, David Brooks, David Graeber, debt deflation, deindustrialization, do-ocracy, Edward Glaeser, Eugene Fama: efficient market hypothesis, experimental economics, facts on the ground, Fall of the Berlin Wall, financial deregulation, financial innovation, Flash crash, full employment, George Akerlof, Goldman Sachs: Vampire Squid, Hernando de Soto, housing crisis, Hyman Minsky, illegal immigration, income inequality, incomplete markets, information asymmetry, invisible hand, Jean Tirole, joint-stock company, Kenneth Arrow, Kenneth Rogoff, Kickstarter, knowledge economy, l'esprit de l'escalier, labor-force participation, liberal capitalism, liquidity trap, loose coupling, manufacturing employment, market clearing, market design, market fundamentalism, Martin Wolf, money market fund, Mont Pelerin Society, moral hazard, mortgage debt, Naomi Klein, Nash equilibrium, night-watchman state, Northern Rock, Occupy movement, offshore financial centre, oil shock, Pareto efficiency, Paul Samuelson, payday loans, Philip Mirowski, Ponzi scheme, precariat, prediction markets, price mechanism, profit motive, quantitative easing, race to the bottom, random walk, rent-seeking, Richard Thaler, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, savings glut, school choice, sealed-bid auction, Silicon Valley, South Sea Bubble, Steven Levy, technoutopianism, The Chicago School, The Great Moderation, the map is not the territory, The Myth of the Rational Market, the scientific method, The Wisdom of Crowds, theory of mind, Thomas Kuhn: the structure of scientific revolutions, Thorstein Veblen, Tobin tax, too big to fail, transaction costs, Vilfredo Pareto, War on Poverty, Washington Consensus, We are the 99%, working poor

Jones, Masters of the Universe, p. 7. 27 Nicholls, Freedom with Responsibility, p. 96; Hartwell, A History of the Mont Pèlerin Society, pp. 84, 93; Walpen, Die offenen Feinde und ihre Gesellschaft, pp. 1072, 1074. 28 Thanks to Anette Nyqvist and Jamie Peck for the translation of this document from the Norwegian. 29 See, for instance, Hulsmann, Mises: “We find a clear expression of the neo-liberal world view in a paper Hayek wrote in 1935” (p. 710); “The exchange between Mises and his neo-liberal opponents set the tone in the Mont Pèlerin Society for years to come” (p. 871); “In the 1960s Austro-libertarianism came to be largely supplanted . . . [by] the takeover of the Mont Pèlerin Society by Chicago School neoliberals in the 1960s, and the emergence of an organized Randian or ‘Objectivist’ movement” (p. 989).

Later classical liberals, dissatisfied specifically with the evolution of the Mont Pèlerin Society, would resort to the term to contrast the position of Ludwig von Mises with what they considered the debased version found in Friedrich Hayek and elsewhere.29 The question of why the target group in and around Mont Pèlerin invoked a self-denying ordinance in using the label is interesting in its own right, and we will return to it in the next section. But for the nonce, I trust everyone can accept that the nominalist position is flawed: the term was and sometimes still is used in a sensible way on both the left and right, and moreover, the roster of people and institutions referenced is fairly stable over time: members of the Mont Pèlerin Society and their close associates. To a first approximation, the MPS will serve as our Rosetta Stone: any idea or person with membership or strong ties to the organization will qualify as “neoliberal.”

Karl Popper papers, Hoover Institute, Stanford California, Box 305, folder 13. 120 See, for instance, his 1954 speech “Towards a Liberal Theory of Public Opinion,” quoted in Burgin, The Return of Laissez Faire, pp. 186-87. 121 Maurice Allais to Friedrich Hayek, May 12, 1947, quoted in Burgin, p. 189. 122 Hartwell, A History of the Mont Pèlerin Society, chapter 5. 123 For the clash of Popper and Hayek, see Vernon, “The Great Society and the Open Society”; Kukathas, Hayek and Modern Liberalism; for the rejection of Popper on science and knowledge, see Lakatos, Criticism and the Growth of Knowledge. This question has some bearing upon the attempt by George Soros to profess Popperian principles in his new organization INET and its response to the crisis. 124 Popper, The Open Society and Its Enemies, p. 265; Popper, After the Open Society, pp. 137, 239. 125 Quoted in Hartwell, A History of the Mont Pèlerin Society, p. xiv. 126 Buchanan, Ideas, Persons and Events, p. 211. 127 See Friedman and Friedman, Free to Choose and Two Lucky People; Friedman, Bright Promises, Dismal Performances.


pages: 273 words: 34,920

Free Market Missionaries: The Corporate Manipulation of Community Values by Sharon Beder

anti-communist, battle of ideas, business climate, corporate governance, en.wikipedia.org, full employment, income inequality, invisible hand, liquidationism / Banker’s doctrine / the Treasury view, minimum wage unemployment, Mont Pelerin Society, new economy, old-boy network, popular capitalism, Powell Memorandum, price mechanism, profit motive, Ralph Nader, rent control, risk/return, road to serfdom, Ronald Reagan, school vouchers, shareholder value, spread of share-ownership, structural adjustment programs, The Chicago School, the market place, The Wealth of Nations by Adam Smith, Thomas L Friedman, Torches of Freedom, trade liberalization, traveling salesman, trickle-down economics, Upton Sinclair, Washington Consensus, wealth creators, young professional

The fund also paid for a series of lectures by Milton and Rose Friedman, and helped all these free market activists to meet and plan their strategies in places such as Mont Pèlerin.6 It was at a time when European nations were nationalizing public services and some industries and Hayek and his friends believed that this trend towards increased government planning and involvement in the economy needed to be stopped. At a subsequent meeting that year they formed the Mont Pèlerin Society to strive for the wider adoption of free-market policies. The society, which continued to meet regularly, and was presided over by Hayek until 1961, enabled extreme market ideologues who might otherwise have felt isolated or alienated to come together and plot change. It was a long-term project, and Hayek warned the others that they should expect a long-term, but winnable, struggle: ‘What to the contemporary observer appears as a battle of conflicting interests decided by the votes of the masses,’ he said, ‘has usually been decided long before in a battle of ideas confined to narrow circles.’7 The Mont Pèlerin Society was the seed that started a network of some 78 institutions. The society forged links with like-minded think tanks, corporations, governments and university economics departments, becoming the intellectual and ideological inspiration for economic fundamentalists around the world.

The first was the Institute of Economic Affairs (IEA) which promoted a laissez-faire libertarian view, keeping the economic fundamentalism ‘alive when academic opinion had pronounced it brain-dead’.10 Lord Anthony Fisher conceived of the idea of the IEA at the prompting of Friedrich von Hayek in the early 1950s, having visited the Foundation for Economic Education (FEE) in the US. According to Ralph Harris, a director of the IEA and member of the Mont Pèlerin Society, ‘The institute started in 1957, you could say the direct result of the Mont Pèlerin Society, of The Road to Serfdom, of Hayek’s ideas of freedom and competitive enterprise.’ It set out to gain wide acceptance for the ‘philosophy of the market economy’ through communications directed at the opinion leaders such as intellectuals, politicians, business people and journalists. It started as a one-person operation and at its height in the 1980s reached 15 full-time employees with a half-million-pound budget provided mainly by about 250 companies, including large transnational firms.11 The IEA began by producing pamphlets based on Hayek and Friedman’s ideas, as well as analyses of various policies in the light of those ideas.

It runs seminars, workshops and conferences, and publishes books and monographs as well as a journal entitled Policy. It runs free weekend seminars for students ‘who are committed to learning and exchanging ideas about classical liberalism’.16 Although it claims to be independent, the CIS gets two-thirds of its funding from foundations and businesses17 and its work is shaped by its free market philosophy. Greg Lindsay is, in fact, a vice president of the Mont Pèlerin Society; in the 1980s CIS organized the Pacific Regional Meeting of the Mont Pèlerin Society. CIS is committed to ‘an economy based on free and competitive markets’ and ‘individual liberty and choice’, including ‘the right to property’. It claims government decision-making should be turned over to the market and that the market and its automatic pricing mechanism should be used to allocate resources. It has strong links with the Washington-based Cato Institute (see Chapter 8).18 CIS deals with ‘practical public policy issues’ as well as ‘more intellectual issues focusing on the way societies work and the importance of liberty in securing prosperity both economically and socially’.


Globalists: The End of Empire and the Birth of Neoliberalism by Quinn Slobodian

Asian financial crisis, Berlin Wall, bilateral investment treaty, borderless world, Bretton Woods, British Empire, business cycle, capital controls, central bank independence, collective bargaining, David Ricardo: comparative advantage, Deng Xiaoping, desegregation, Dissolution of the Soviet Union, Doha Development Round, eurozone crisis, Fall of the Berlin Wall, floating exchange rates, full employment, Gunnar Myrdal, Hernando de Soto, invisible hand, liberal capitalism, liberal world order, market fundamentalism, Martin Wolf, Mercator projection, Mont Pelerin Society, Norbert Wiener, offshore financial centre, oil shock, open economy, pattern recognition, Paul Samuelson, Pearl River Delta, Philip Mirowski, price mechanism, quantitative easing, random walk, rent control, rent-seeking, road to serfdom, Ronald Reagan, special economic zone, statistical model, The Chicago School, the market place, The Wealth of Nations by Adam Smith, theory of mind, Thomas L Friedman, trade liberalization, urban renewal, Washington Consensus, Wolfgang Streeck, zero-sum game

A World of Signals 218 Conclusion: A World of P ­ eople without a ­People 263 notes acknowl­e dgments index 289 363 365 Abbreviations AAAA American-­African Affairs Association ARA American-­R hodesian Association CAP Common Agricultural Policy CWL Walter Lipp­mann Colloquium ECLA United Nations Economic Commission for Latin Amer­i­ca ECOSOC United Nations Economic and Social Council EDU Eastern Demo­cratic Union EEC Eu­ro­pean Economic Community EFTA Eu­ro­pean ­Free Trade Area G-77 Group of 77 GATT General Agreement on Tariffs and Trade ICC International Chamber of Commerce ICIC International Committee on Intellectual Cooperation IIIC International Institute for Intellectual Cooperation ILO International ­Labour Organ­ization IMF International Monetary Fund x A bb r e v iatio n s ISC International Studies Conference ITO International Trade Organ­ization LSE London School of Economics MPS Mont Pèlerin Society NAFTA North American ­Free Trade Agreement NAM National Association of Manufacturers NBER National Bureau of Economic Research NIEO New International Economic Order TPRC Trade Policy Research Centre UCT University of Cape Town UNCTAD United Nations Conference on Trade and Development WTO World Trade Organ­ization GL O BA L I S T S Introduction Thinking in World O­ rders A nation may beget its own barbarian invaders.

Scholars have shown that the term “neoliberalism” was coined first at the Walter Lipp­mann Colloquium in Paris in 1938 as a way to describe the desire of the gathered economists, sociologists, 4 GLOBALISTS journalists, and business leaders to “renovate” liberalism.17 As one scholar argues, one of the most defensible ways to study neoliberalism is as “an or­ga­nized group of individuals exchanging ideas within a common intellectual framework.”18 Historians have focused, in par­tic­u­lar, on the Mont Pèlerin Society, formed by F. A. Hayek and ­others in 1947, as a group of like-­minded intellectuals and policy makers who would meet periodically to discuss world affairs and the con­temporary condition of the po­liti­cal cause to which they ­were devoted. This group was not without its internal rifts, as the works cited have shown. Apart from monetary policy and development economics, though, the question of international and global governance has been surprisingly neglected in ­these histories.19 Although ­there ­were differences among ­these thinkers, my contention is that we can discern the broad strokes of a coherent prescription for world order in their writings and actions.

This thinking was an impor­tant intellectual stream leading into the creation of the WTO—­a crowning victory of the neoliberal proj­ect of finding an extra-­economic enforcer for the world economy in the twentieth ­century. When the GATT moved into the former headquarters of the International L ­ abour Organ­ization in 1977, they renamed the building the Centre William Rappard a­ fter the Swiss neoliberal and host of the first Mont Pèlerin Society meeting, who brought Röpke, Mises, Hayek, and Robbins to Geneva in the 1930s and 1940s. When the WTO opened in 1995, it was in this building. The long intellectual prehistory of the high point of the Geneva School of neoliberalism shows that, at its origins, neoliberalism was not only a philosophy of ­free markets but also a blueprint for double government in capitalism’s doubled world. Covering the better part of a ­century as it does, my account is necessarily incomplete.


pages: 453 words: 111,010

Licence to be Bad by Jonathan Aldred

"Robert Solow", Affordable Care Act / Obamacare, Albert Einstein, availability heuristic, Ayatollah Khomeini, Benoit Mandelbrot, Berlin Wall, Black Swan, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, Cass Sunstein, clean water, cognitive dissonance, corporate governance, correlation does not imply causation, cuban missile crisis, Daniel Kahneman / Amos Tversky, Donald Trump, Douglas Engelbart, Douglas Engelbart, Edward Snowden, Fall of the Berlin Wall, falling living standards, feminist movement, framing effect, Frederick Winslow Taylor, From Mathematics to the Technologies of Life and Death, full employment, George Akerlof, glass ceiling, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Isaac Newton, Jeff Bezos, John Nash: game theory, John von Neumann, Long Term Capital Management, Louis Bachelier, mandelbrot fractal, meta analysis, meta-analysis, Mont Pelerin Society, mutually assured destruction, Myron Scholes, Nash equilibrium, Norbert Wiener, nudge unit, obamacare, offshore financial centre, Pareto efficiency, Paul Samuelson, plutocrats, Plutocrats, positional goods, profit maximization, profit motive, race to the bottom, RAND corporation, rent-seeking, Richard Thaler, ride hailing / ride sharing, risk tolerance, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, Skype, Social Responsibility of Business Is to Increase Its Profits, spectrum auction, The Nature of the Firm, The Wealth of Nations by Adam Smith, transaction costs, trickle-down economics, Vilfredo Pareto, wealth creators, zero-sum game

As well as advocating free-market economics, the network includes specialist groups ranging from climate-change denialists to pro-tobacco-industry lobbyists. A common theme across the network is the reliance on funding from big corporations and plutocrats. At this point, the conspiracy theories emerge. Beginning with the Mont Pèlerin Society, and culminating in the Atlas Foundation, the conspiracy theorists see the lofty philosophical ambitions of these organizations as mere cover for a secret, long-run plan to protect and then enhance the wealth and influence of rich and powerful business elites. And it is true that these organizations, while formally independent of the rich and powerful, have been bankrolled by them at every step. In a deeper sense, too, the Mont Pèlerin Society saw politics as subservient to economic interests. Hayek didn’t just want laissez-faire, the old idea that politicians should leave the market and business well alone.

Hayek saw all human motivation as economic: ‘there is no separate economic motive’.6 Hayek’s ideas have come to shape contemporary culture as much as they have shaped our politics: over the last four decades the penetration of market economics deep into our daily lives has transformed what we value and how we think. And yet the impact has not been quite what Hayek might have imagined at that inaugural meeting of the Mont Pèlerin Society, because economics has itself changed greatly since then. The rise of the society turns out to be just a small part of the story. And this is where the conspiracy theories break down. Many of the most influential thinkers behind the triumph of market economics were Mont Pèlerin Society members, including Gary Becker, James Buchanan, Ronald Coase, Milton Friedman, Richard Posner and George Stigler. But they did not always share Hayek’s views. And a few economists, such as Ken Arrow and Tom Schelling, were equally influential yet had a very different political outlook to the Mont Pèlerin gang.

When it docked, he was told the modest academic plans for his US visit had been cancelled in favour of a nationwide lecture tour. It began in New York Town Hall, packed to its capacity of 3,000, with many more listening in adjoining rooms. In light of his burgeoning influence and celebrity, it was unsurprising that Hayek came to be seen as the intellectual leader of the group assembled at Mont Pèlerin (soon to be known as the Mont Pèlerin Society). Both Friedman and Director were in attendance. On 1st April, the first day of their meeting, Hayek set out the task they faced – saving Britain and the United States, among other countries, from what he and his fellow travellers saw as a descent into totalitarianism. The growing interference of government in the economy, Hayek believed, constituted a direct threat to individual freedoms, freedoms which could be restored only through the long, slow, patient rolling back of government intervention and the eventual return to a true free-market economy.


pages: 298 words: 95,668

Milton Friedman: A Biography by Lanny Ebenstein

"Robert Solow", affirmative action, banking crisis, Berlin Wall, Bretton Woods, business cycle, Deng Xiaoping, Fall of the Berlin Wall, fiat currency, floating exchange rates, Francis Fukuyama: the end of history, full employment, Hernando de Soto, hiring and firing, inflation targeting, invisible hand, Joseph Schumpeter, Kenneth Arrow, Lao Tzu, liquidity trap, means of production, Mont Pelerin Society, Myron Scholes, Pareto efficiency, Paul Samuelson, Ponzi scheme, price stability, rent control, road to serfdom, Robert Bork, Ronald Coase, Ronald Reagan, Sam Peltzman, school choice, school vouchers, secular stagnation, Simon Kuznets, stem cell, The Chicago School, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, The Wealth of Nations by Adam Smith, Thorstein Veblen, zero-sum game

Needless to say,... not many members agreed with this idea. The old rule, “once organized, never disbanded” is as true in the Mont Pelerin Society as it is in other societies and especially in government bureaucracies.34 Other organizations in which Friedman has been involved include the Intercollegiate Society of Individualists (now the Intercollegiate Studies Institute), the Philadelphia Society, and the American Enterprise Institute. The Intercollegiate Society of Individualists (ISI) was founded by Frank Chodorov in 1953. One of its key chapters was at the University of Chicago, and Friedman and Hayek were two of three advisers to the chapter’s publication, the New Individualist Review. Friedman was enthusiastic about the influence of the Mont Pelerin Society, the ISI, and the New Individualist Review. In a 1981 introduction to a republication of the journal, he writes that “two organizations... served to channel and direct”35 the resurgence of classical liberal and libertarian thought stirring in the early 1960s, before the Vietnam War tracked popular discussion, especially among the young, in a leftward direction—the Mont Pelerin Society and ISI.

According to Henry Spiegel, a wellread and judicious historian of economic thought: “At the time when Viner taught at Chicago, the designation ‘Chicago School’ was not yet a commonly used term.”12 No reference to the “Chicago school” has been found in histories of economic thought written before the mid-1950s, including Joseph Schumpeter’s massive History of Economic Analysis, Joseph Dorfman’s multivolume The Economic Mind in American Civilization, and Paul Homan’s Contemporary Economic Thought. Similarly, there is apparently no reference to a “Chicago school” in the American Economic Review or Journal of Political Economy before the 1950s. Friedman himself provides evidence that the name “Chicago school of economics” was not used before the postwar era. Writing in his memoirs about the first meeting of the Mont Pelerin Society, a group of libertarian-oriented academics and others, in 1947, he quoted journalist John Davenport as saying that these participants included a “sprinkling of what became known as the Chicago School”13—that is, they were not known as the Chicago school yet. The Chicago school of economics is largely the Friedman school of economics; his positions and views are those associated with the school.

Before he was thirty years old, he testified before the House Ways and Means Committee and worked diligently to implement income tax withholding at the source to help with World War II financing. In 1946 Friedman and Stigler coauthored the anti–rent control polemic, “Roofs or Ceilings?” This pamphlet foreshadowed Friedman’s later career as an economic writer for the general public. Friedman, Stigler, and others attended the first meeting in 1947 of what became the Mont Pelerin Society—an international association of classical liberal and libertarian academics and a few journalists and political figures—in Switzerland. This was Friedman’s first trip outside of the United States. He considers his attendance at this meeting to have been important in his growing interest in public policy from an explicitly libertarian, or classical liberal, point of view. Others from Chicago to attend this meeting were Frank Knight, Aaron Director, and Friedrich Hayek.


pages: 470 words: 130,269

The Marginal Revolutionaries: How Austrian Economists Fought the War of Ideas by Janek Wasserman

Albert Einstein, American Legislative Exchange Council, anti-communist, battle of ideas, Berlin Wall, Bretton Woods, business cycle, collective bargaining, Corn Laws, correlation does not imply causation, creative destruction, David Ricardo: comparative advantage, different worldview, Donald Trump, experimental economics, Fall of the Berlin Wall, floating exchange rates, Fractional reserve banking, Francis Fukuyama: the end of history, full employment, Gunnar Myrdal, housing crisis, Internet Archive, invisible hand, John von Neumann, Joseph Schumpeter, laissez-faire capitalism, liberal capitalism, market fundamentalism, mass immigration, means of production, Menlo Park, Mont Pelerin Society, New Journalism, New Urbanism, old-boy network, Paul Samuelson, Philip Mirowski, price mechanism, price stability, RAND corporation, random walk, rent control, road to serfdom, Robert Bork, rolodex, Ronald Coase, Ronald Reagan, Silicon Valley, Simon Kuznets, The Chicago School, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, Thomas Malthus, trade liberalization, union organizing, urban planning, Vilfredo Pareto, Washington Consensus, zero-sum game, éminence grise

See also German Historical School; Schmoller Mises, Ludwig von: a priori theory, (i), (ii), (iii); action principle, (i); Austria, (i); Austrian Economics, (i), (ii), (iii); Austrian “revival,” (i); Austrian School, (i), (ii), (iii), (iv), (v), (vi), (vii), (viii), (ix); and Austrofascism, (i); Böhm seminar, (i), (ii), (iii); on business cycles, (i); early biography, (i); on capitalism, (i), (ii); and Chicago School, (i); and Crane, (i); death of, (i); on democracy, (i), (ii); on economic policy, (i), (ii), (iii); eightieth birthday, (i); emigration, (i), (ii); on fascism, (i), (ii); and Fertig, (i), (ii); Festschrift, (i); Foundation for Economic Education, (i), (ii); and Goodrich, (i); and Haberler, (i), (ii); and Hayek, (i), (ii), (iii), (iv), (v); Human Action, (i); on interventionism; (i), (ii), (iii); and Kauder, (i); and Keynes, (i); and Kirzner, (i); and Knight, (i); on liberalism, (i), (ii), (iii), (iv); and Lippmann, (i); and Machlup, (i), (ii), (iii), (iv), (v), (vi), (vii); Mises-Kreis, (i), (ii); on monetary theory, (i); Mont Pèlerin Society, (i); and Morgenstern, (i), (ii); Nation, State, and Economy, (i), (ii); Nationalökonomie, (i), (ii); New York University, (i); praxeology, (i), (ii), (iii); and Rand, (i), (ii); and Read, (i); references to, (i); and Rothbard, (i), (ii), (iii); and Schumpeter, (i), (ii); seminar (New York), (i), (ii), (iii), (iv); seminar (Vienna), (i), (ii), (iii), (iv), (v), (vi), (vii); Socialism, (i); on socialist calculation, (i), (ii), (iii), (iv); Theory of Money and Credit, (i); Vienna Chamber of Commerce, (i); and Wicksell, (i) Mises seminar (New York), (i), (ii), (iii), (iv) Mises seminar (Vienna), (i), (ii), (iii), (iv), (v), (vi), (vii) Monetary Theory and the Trade Cycle (Hayek), (i) Mont Pèlerin Society, (i), (ii), (iii), (iv), (v), (vi), (vii), (viii), (ix), (x), (xi), (xii), (xiii) Morgenstern, Oskar: Alpbach Forum, (i); Austrian School, (i), (ii), (iii), (iv), (v), (vi), (vii), (viii); on business cycle theory, (i); emigration, (i), (ii); Geist-Kreis, (i), (ii); and Haberler, (i), (ii), (iii), (iv), (v); and Hayek, (i), (ii), (iii), (iv), (v), (vi); Institute for Advanced Studies (Vienna), (i); Institute for Business Cycle Research, (i), (ii), (iii); and Kauder, (i), (ii); and Knight, (i); late career, (i); and Machlup, (i); and Mayer, (i), (ii), (iii); and Karl Menger, (i), (ii), (iii); and Mises, (i), (ii), (iii), (iv); Mises seminar (Vienna), (i); and von Neumann, (i); as policy adviser, (i), (ii); references to, (i); Rockefeller Foundation, (i), (ii); and Schumpeter, (i); and Spann, (i), (ii); Theory of Games, (i); Vienna, (i) Nationalökonomie (Mises), (i) Natural Value (Wieser), (i) neoliberalism, (i), (ii), (iii), (iv), (v), (vi), (vii), (viii), (ix), (x), (xi), (xii), (xiii), (xiv), (xv), (xvi), (xvii), (xviii).

They advanced a new defense of liberalism, often called neoliberalism, which still informs contemporary political discussions. After the emigration of many of the school’s members from fascist-wracked Europe in the 1930s, the Austrians became best-selling authors, respected political theorists, and economic policy experts in their adoptive homelands. They shaped post–World War II life through such institutions as the Mont Pèlerin Society (MPS), the RAND Corporation, the General Agreement on Tariffs and Trade (GATT), and the Group of Thirty. They spearheaded the successful conservative counterattack against Keynesian economics in the 1970s and ushered in our current age’s faith in globalization, free markets, rule of law, entrepreneurship, and neoliberalism. They helped inspire the “Washington Consensus” at the World Bank and International Monetary Fund, which has played a significant and troubling role in the Latin American debt crises in the 1980s, the East Asian crisis of the late 1990s, and the 2008 global economic crisis.

The debate that broke out between Knight and the Austrians, while relatively minor in comparison to the Keynes dispute, nevertheless provides a window on early attempts by liberal political economists to revise their positions to address the perceived failure of classical liberalism. These discussions were also incipient attempts at the formulation of “neoliberalism”—five years before the Colloque Walter Lippmann and fifteen prior to the founding of the Mont Pèlerin Society (MPS), the loci classici of neoliberalism. After Knight’s May 1930 stay in Vienna, he began reading Menger, Böhm, Mises, and Morgenstern for a piece he was writing on marginal utility theory. He turned to Morgenstern, whom he had known since the latter’s Rockefeller fellowship, because his work seemed “closest to [Knight’s] own topic.” Knight was also about to wade into the Hayek-Keynes affair with a pointed response to Hayek’s Prices and Production.


pages: 494 words: 132,975

Keynes Hayek: The Clash That Defined Modern Economics by Nicholas Wapshott

"Robert Solow", airport security, banking crisis, Bretton Woods, British Empire, business cycle, collective bargaining, complexity theory, creative destruction, cuban missile crisis, Francis Fukuyama: the end of history, full employment, Gordon Gekko, greed is good, Gunnar Myrdal, if you build it, they will come, Isaac Newton, Joseph Schumpeter, Kickstarter, liquidationism / Banker’s doctrine / the Treasury view, means of production, Mont Pelerin Society, mortgage debt, New Journalism, Northern Rock, Paul Samuelson, Philip Mirowski, price mechanism, pushing on a string, road to serfdom, Robert Bork, Ronald Reagan, Simon Kuznets, The Chicago School, The Great Moderation, The Wealth of Nations by Adam Smith, Thomas Malthus, trickle-down economics, War on Poverty, Yom Kippur War

He became president of the society in 1971. 27 Quoted in Friedman and Friedman, Two Lucky People, p. 159. 28 Ibid. 29 Paul Samuelson, “A Few Remembrances of Friedrich von Hayek (1899–1992).” 30 Interview of Milton Friedman, October 1, 2000, Commanding Heights, PBS, http://www.pbs.org/wgbh/commandingheights/shared/minitextlo/int_miltonfriedman.html. 31 Samuelson, “A Few Remembrances of Friedrich von Hayek (1899–1992).” 32 Robbins’s full Statement of Aims, April 8, 1947, The Mont Pelerin Society, http://www.montpelerin.org/montpelerin/mpsGoals.html. 33 Collected Works, vol. 4: Fortunes of Liberalism, p. 192. 34 Interview of Milton Friedman, October 1, 2000, Commanding Heights, PBS. 35 Quoted by William Buckley in his address to the Mont Pelerin Society, Hillsdale College, Hillsdale, Mich., August 26, 1975, in William F. Buckley Jr., Let Us Talk of Many Things: The Collected Speeches (Basic Books, New York, 2008), p. 224. 36 Stephen Kresge, “Introduction,” in Hayek, Hayek on Hayek, p. 22. 37 UCLA Oral History Program, p. 395. 38 Ibid. 39 Hayek, Hayek on Hayek, p. 127. 40 Jacob Viner (1892–1970), cofounder of the Chicago School of economics who advised FDR’s secretary of the Treasury, Henry Morgenthau, against attempting Keynesian remedies during the Great Depression.

“It was just an inner need to do it.”38 The divorce scandalized Hayek’s LSE colleagues, none more so than Robbins, who was dumbfounded when Hayek resigned his LSE post in February 1950. Robbins wrote that he felt Hayek had “behaved in such a way . . . I find impossible to reconcile with the conception of his character and his standards which I have cherished through twenty years of friendship. As far as I am concerned, the man I knew is dead.” In the following ten years, such was Robbins’s disgust that he resigned from the Mont Pelerin Society in protest at Hella’s treatment and made no contact with Hayek. The two men were reconciled only after Hella’s death, when Robbins attended the wedding in 1961 of Hayek’s son, Laurence, his godson. Hayek needed to make himself scarce. In the light of his personal dramas, his move to America can be seen as a financially driven decision rather than an attempt to exploit his newfound fame as a paragon of liberty.

“When I look at social conditions in contemporary Britain, with its well fed, healthy and essentially decent and humane citizens and their children, and draw the contrast with what, as a young man, I knew 40 years ago, I do perceive a most solid and substantial improvement,”68 Robbins wrote. “Hayek is somewhat too apt . . . to assume that deviations from his norm lead cumulatively to disaster. . . . Why should he argue as if these were at all likely to lead us to social disintegration and the concentration camp?” The disappointing reviews, and sales, of The Constitution of Liberty coincided with a crisis in the Mont Pelerin Society, which, after years of dwindling membership and attendance, became riven by factionalism, personal animosity, and infighting whose details were so embarrassingly petty they have not been made public. The internecine troubles of an institution Hayek considered very much his own had proven so troubling to him that at the 1960 meeting he stepped down as president and declined to attend the 1961 gathering.


pages: 443 words: 98,113

The Corruption of Capitalism: Why Rentiers Thrive and Work Does Not Pay by Guy Standing

3D printing, Airbnb, Albert Einstein, Amazon Mechanical Turk, Asian financial crisis, asset-backed security, bank run, banking crisis, basic income, Ben Bernanke: helicopter money, Bernie Sanders, Big bang: deregulation of the City of London, bilateral investment treaty, Bonfire of the Vanities, Boris Johnson, Bretton Woods, business cycle, Capital in the Twenty-First Century by Thomas Piketty, carried interest, cashless society, central bank independence, centre right, Clayton Christensen, collapse of Lehman Brothers, collective bargaining, credit crunch, crony capitalism, crowdsourcing, debt deflation, declining real wages, deindustrialization, disruptive innovation, Doha Development Round, Donald Trump, Double Irish / Dutch Sandwich, ending welfare as we know it, eurozone crisis, falling living standards, financial deregulation, financial innovation, Firefox, first-past-the-post, future of work, gig economy, Goldman Sachs: Vampire Squid, Growth in a Time of Debt, housing crisis, income inequality, information retrieval, intangible asset, invention of the steam engine, investor state dispute settlement, James Watt: steam engine, job automation, John Maynard Keynes: technological unemployment, labour market flexibility, light touch regulation, Long Term Capital Management, lump of labour, Lyft, manufacturing employment, Mark Zuckerberg, market clearing, Martin Wolf, means of production, mini-job, Mont Pelerin Society, moral hazard, mortgage debt, mortgage tax deduction, Neil Kinnock, non-tariff barriers, North Sea oil, Northern Rock, nudge unit, Occupy movement, offshore financial centre, oil shale / tar sands, open economy, openstreetmap, patent troll, payday loans, peer-to-peer lending, plutocrats, Plutocrats, Ponzi scheme, precariat, quantitative easing, remote working, rent control, rent-seeking, ride hailing / ride sharing, Right to Buy, Robert Gordon, Ronald Coase, Ronald Reagan, Sam Altman, savings glut, Second Machine Age, secular stagnation, sharing economy, Silicon Valley, Silicon Valley startup, Simon Kuznets, sovereign wealth fund, Stephen Hawking, Steve Ballmer, structural adjustment programs, TaskRabbit, The Chicago School, The Future of Employment, the payments system, The Rise and Fall of American Growth, Thomas Malthus, Thorstein Veblen, too big to fail, Travis Kalanick, Uber and Lyft, Uber for X, uber lyft, Y Combinator, zero-sum game, Zipcar

The rentier state operates by conveying the impression that, in return for putting up with grotesque inequalities, enough of the electorate will gain through tax cuts and subsidies. This is coupled with what Michael Ross called the ‘repression effect’: rental income allows governments to construct more repressive apparatus to control the anger of the losers and keep democratic pressure at bay.3 THE MONT PELERIN SOCIETY In 1947, a small group, mostly economists but with a sprinkling of philosophers and historians, met in the Swiss resort of Mont Pèlerin, overlooking Lake Geneva, to form the Mont Pelerin Society (MPS). Pledged to promote ‘free markets’ and oppose state intervention, over the years they refined the ideological foundations of what is now termed ‘neo-liberalism’. The MPS is still thriving, although its founders have passed into the history books. The MPS has had a huge and continuing influence, particularly since the 1970s.

CONTENTS Title Page Glossary of Acronyms Preface Chapter 1: The Origins of Our Times Chapter 2: The Shaping of Rentier Capitalism Chapter 3: The Plague of Subsidies Chapter 4: The Scourge of Debt Chapter 5: Plunder of the Commons Chapter 6: Labour Brokers: The Precariat Bears the Strain Chapter 7: The Corruption of Democracy Chapter 8: Rent Asunder: The Precariat’s Revolt Index Copyright GLOSSARY OF ACRONYMS CETA Comprehensive Economic and Trade Agreement ECB European Central Bank EU European Union GDP Gross Domestic Product G20 Group of nineteen major economies and the European Union ILO International Labour Organization IMF International Monetary Fund ISDS Investor–State Dispute Settlement MGI McKinsey Global Institute MPS Mont Pelerin Society NHS National Health Service (UK) OECD Organisation for Economic Cooperation and Development (thirty-four mainly industrialised member countries) ONS Office for National Statistics (UK) PAC Parliamentary Accounts Committee (UK) PFI Private Finance Initiative (UK) QE Quantitative Easing TPP Trans-Pacific Partnership TTIP Transatlantic Trade and Investment Partnership TUC Trades Union Congress (UK) UK United Kingdom UN United Nations USA United States of America WIPO World Intellectual Property Organization WTO World Trade Organization PREFACE This book is about something worse than corruption by individuals or companies.

This time the attack was on labour-based security, previously the objective of governments of both left and right. Now it was seen as an impediment to growth. Once again, policy changes were dominated by financial capital. Intellectual justification came from the so-called ‘Chicago school’ of law and economics at the University of Chicago, whose leading lights went on to receive Nobel Prizes. Their agenda, honed in the Mont Pelerin Society set up by Friedrich Hayek and thirty-eight like-minded intellectuals in 1947, evolved into what is now called neo-liberalism. This meant the liberalisation of markets, the commodification and privatisation of everything that could be commodified and privatised and the systematic dismantling of all institutions of social solidarity that protected people from ‘market forces’. Regulations were justifiable only if they promoted economic growth; if not, they had to go.


pages: 357 words: 95,986

Inventing the Future: Postcapitalism and a World Without Work by Nick Srnicek, Alex Williams

3D printing, additive manufacturing, air freight, algorithmic trading, anti-work, back-to-the-land, banking crisis, basic income, battle of ideas, blockchain, Boris Johnson, Bretton Woods, business cycle, call centre, capital controls, carbon footprint, Cass Sunstein, centre right, collective bargaining, crowdsourcing, cryptocurrency, David Graeber, decarbonisation, deindustrialization, deskilling, Doha Development Round, Elon Musk, Erik Brynjolfsson, Ferguson, Missouri, financial independence, food miles, Francis Fukuyama: the end of history, full employment, future of work, gender pay gap, housing crisis, income inequality, industrial robot, informal economy, intermodal, Internet Archive, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Kickstarter, late capitalism, liberation theology, Live Aid, low skilled workers, manufacturing employment, market design, Martin Wolf, mass immigration, mass incarceration, means of production, minimum wage unemployment, Mont Pelerin Society, neoliberal agenda, New Urbanism, Occupy movement, oil shale / tar sands, oil shock, patent troll, pattern recognition, Paul Samuelson, Philip Mirowski, post scarcity, post-work, postnationalism / post nation state, precariat, price stability, profit motive, quantitative easing, reshoring, Richard Florida, rising living standards, road to serfdom, Robert Gordon, Ronald Reagan, Second Machine Age, secular stagnation, self-driving car, Slavoj Žižek, social web, stakhanovite, Steve Jobs, surplus humans, the built environment, The Chicago School, The Future of Employment, Tyler Cowen: Great Stagnation, universal basic income, wages for housework, We are the 99%, women in the workforce, working poor, working-age population

It was an idea of Hayek’s that ultimately mobilised this infrastructure into a ‘neoliberal thought collective’ and inaugurated the slow rise of the new hegemony.16 Since the Walter Lippmann Colloquium had been buried in the onslaught of World War II, the transnational infrastructure of an incipient neoliberalism had to be reconstructed. A chance meeting with a Swiss businessman in 1945 gave Hayek the financial means to put his ideas into action.17 Thus was born the Mont Pelerin Society (MPS): a closed intellectual network that provided the basic ideological infrastructure for neoliberalism to ferment.18 It is no exaggeration to say that almost all of the important figures in the postwar creation of neoliberalism were in attendance at its first meeting in 1947, including the Austrian economists, the UK liberals, the Chicago School, the German ordoliberals and a French contingent.19 From its beginnings, the MPS was consciously focused on changing political common sense and sought to develop a liberal utopia.20 It explicitly understood that this intellectual framework would then be actively filtered down through think tanks, universities and policy documents, in order to institutionalise and eventually monopolise the ideological terrain.21 In a letter to those he had invited, Hayek wrote that the purpose of the MPS was to enlist the support of the best minds in formulating a programme which has a chance of gaining general support.

They have struggled to open up the ‘realm of freedom’ from which humanity can continue its project of emancipation.2 While the broad aims of this project have a long series of precedents, recent developments in capitalism give renewed urgency to these issues. Rapid automation, expanding surplus populations and the continued imposition of austerity all heighten the need to rethink work and prepare for the new crises of capitalism. Just as the Mont Pelerin Society foreshadowed the crisis of Keynesianism and prepared a full-spectrum set of responses, so too should the left prepare for the coming crisis of work and surplus populations. While the effects of the 2008 crisis continue to reverberate throughout the world, it is too late to take advantage of that moment; all around us we can see that capital has recovered and consolidated itself in a renewed and sharpened form.

This is a fractious (sometimes even contradictory) alliance, but it is one that finds common interests in the broad neoliberal framework by emphasising individual freedoms.14 In addition, counter-hegemonic projects operate across diverse fields – from the state, to civil society, to the material infrastructure. This means an entire battery of actions are needed, such as seeking to spread media influence, attempting to win state power, controlling key sectors of the economy and designing important infrastructures. This project requires empirical and experimental work to identify the parts of these various fields that are operating to reinforce the present general direction of society. The Mont Pelerin Society is a good example of this. Painstakingly aware of the ways in which Keynesianism was the hegemonic common sense of its time, the MPS undertook the long-term task of taking apart the elements that sustained it. This was a project that took decades to come to full fruition, and during that time the MPS had to undertake counter-hegemonic actions in order to install it. Such long-term thinking is an important corrective to the tendency today to focus on immediate resistance and new daily outrages.


pages: 324 words: 93,606

No Such Thing as a Free Gift: The Gates Foundation and the Price of Philanthropy by Linsey McGoey

activist fund / activist shareholder / activist investor, Affordable Care Act / Obamacare, agricultural Revolution, American Legislative Exchange Council, bitcoin, Bob Geldof, cashless society, clean water, cognitive dissonance, collapse of Lehman Brothers, colonial rule, corporate governance, corporate social responsibility, crony capitalism, effective altruism, Etonian, financial innovation, Food sovereignty, Ford paid five dollars a day, germ theory of disease, hiring and firing, Howard Zinn, income inequality, income per capita, invisible hand, Jane Jacobs, Joseph Schumpeter, liquidationism / Banker’s doctrine / the Treasury view, M-Pesa, Mahatma Gandhi, Mark Zuckerberg, meta analysis, meta-analysis, microcredit, Mitch Kapor, Mont Pelerin Society, Naomi Klein, obamacare, Peter Singer: altruism, Peter Thiel, plutocrats, Plutocrats, price mechanism, profit motive, Ralph Waldo Emerson, rent-seeking, road to serfdom, Ronald Reagan, school choice, selective serotonin reuptake inhibitor (SSRI), Silicon Valley, Slavoj Žižek, Steve Jobs, strikebreaker, The Wealth of Nations by Adam Smith, Thorstein Veblen, trickle-down economics, urban planning, wealth creators

Howard Pew, whose father Joseph founded the Sun Oil Company. Howard was appointed president in 1912 and by 1941 had nurtured the company into the nation’s largest manufacturer of oil tankers. Pew was a vehement critic of New Deal policies, particularly of the effort to lower oil costs through price limits. Invited to liaise with leading conservative economists such as Friedrich Hayek at meetings of the Mont Pelerin Society, Pew quickly become one of the Society’s staunchest philanthropic patrons, determined to battle against ‘Socialism, Welfare-state–ism, Marxism, Fascism and any other like forms for government intervention … antithetical to the teaching of Jesus’.64 In 1954, Pew contacted the evangelist preacher Billy Graham to see how they might work together in establishing a ‘scripturally sound political economy’.

Left-leaning policy-makers began to grasp just how influential a tight network of right-wing think-tanks had become in DC, helping to cement Reagan’s victory and guiding his hand in economic decisions. Their criticism had an element of envy, as some on the left bemoaned the lack of similar funding towards ‘progressive’ think-tanks. Often prioritizing much-needed investment in fledgling, grassroots non-profits based in poor communities, they had failed to develop intellectual networks equivalent to those at the Mont Pelerin Society, the Cato Institute, and the Heritage Foundation. Whether on the left or the right, the one thing most agreed on was that foundations were too powerful. Dowie makes this point well, pointing out that philanthropists deploy ‘wealth in the framing of public policy through non-democratic processes. And that fact bothers American conservatives as deeply as it does liberals’.69 Government reforms in the 1960s sought to temper concerns.

CONCLUSION The Selfish Gift One of the most acute ironies concerning the size of today’s philanthropic foundations is that the emergence of well-financed, politically powerful behemoths is rooted in a political philosophy that cautioned against using the centralized power of states to plan or develop economic growth. Take the example of J. Howard Pew, who first established the Pew Charitable Trusts in 1948, not long after first reading Friedrich Hayek’s The Road to Serfdom. As the historian Olivier Zunz describes, Pew’s interest in philanthropy stemmed from meetings with Hayek at gatherings of the Mont Pelerin Society. In The Road to Serfdom and influential essays such as ‘On the Use of Knowledge in Society’, Hayek, inspired by Michael Polanyi’s work on tacit knowledge and Karl Popper’s work on the open society, made an argument that was then radical for its time. He believed that much formal economic theory represented ‘only the visible tip of the vast submerged fund of tacit knowledge, much of which is entirely beyond our powers of articulation’.1 Because of the inaccessibility of the ‘tacit knowledge’ that affects individual decision-making, it is impossible, he argued, for a central planner to respond to the needs of different market actors.


pages: 318 words: 85,824

A Brief History of Neoliberalism by David Harvey

affirmative action, Asian financial crisis, Berlin Wall, Bretton Woods, business climate, business cycle, capital controls, centre right, collective bargaining, creative destruction, crony capitalism, debt deflation, declining real wages, deglobalization, deindustrialization, Deng Xiaoping, Fall of the Berlin Wall, financial deregulation, financial intermediation, financial repression, full employment, George Gilder, Gini coefficient, global reserve currency, illegal immigration, income inequality, informal economy, labour market flexibility, land tenure, late capitalism, Long Term Capital Management, low-wage service sector, manufacturing employment, market fundamentalism, mass immigration, means of production, Mexican peso crisis / tequila crisis, Mont Pelerin Society, mortgage tax deduction, neoliberal agenda, new economy, Pearl River Delta, phenotype, Ponzi scheme, price mechanism, race to the bottom, rent-seeking, reserve currency, Ronald Reagan, Silicon Valley, special economic zone, structural adjustment programs, the built environment, The Chicago School, transaction costs, union organizing, urban renewal, urban sprawl, Washington Consensus, Winter of Discontent

They also possess, through organizations like the World Economic Forum at Davos, means of exchanging ideas and of consorting and consulting with political leaders. They exercise immense influence over global affairs and possess a freedom of action that no ordinary citizen possesses. Freedom’s Prospect This history of neoliberalization and class formation, and the proliferating acceptance of the ideas of the Mont Pelerin Society as the ruling ideas of the time, makes for interesting reading when placed against the background of counter-arguments laid out by Karl Polanyi in 1944 (shortly before the Mont Pelerin Society was established). In a complex society, he pointed out, the meaning of freedom becomes as contradictory and as fraught as its incitements to action are compelling. There are, he noted, two kinds of freedom, one good and the other bad. Among the latter he listed ‘the freedom to exploit one’s fellows, or the freedom to make inordinate gains without commensurable service to the community, the freedom to keep technological inventions from being used for public benefit, or the freedom to profit from public calamities secretly engineered for private advantage’.

The Rise of Neoliberal Theory Neoliberalism as a potential antidote to threats to the capitalist social order and as a solution to capitalism’s ills had long been lurking in the wings of public policy. A small and exclusive group of passionate advocates—mainly academic economists, historians, and philosophers—had gathered together around the renowned Austrian political philosopher Friedrich von Hayek to create the Mont Pelerin Society (named after the Swiss spa where they first met) in 1947 (the notables included Ludvig von Mises, the economist Milton Friedman, and even, for a time, the noted philosopher Karl Popper). The founding statement of the society read as follows: The central values of civilization are in danger. Over large stretches of the earth’s surface the essential conditions of human dignity and freedom have already disappeared.

Fearful of how the alliance with the Soviet Union and the command economy constructed within the US during the Second World War might play out politically in a post-war setting, they were ready to embrace anything from McCarthyism to neo-liberal think-tanks to protect and enhance their power. Yet this movement remained on the margins of both policy and academic influence until the troubled years of the 1970s. At that point it began to move centre-stage, particularly in the US and Britain, nurtured in various well-financed think-tanks (offshoots of the Mont Pelerin Society, such as the Institute of Economic Affairs in London and the Heritage Foundation in Washington), as well as through its growing influence within the academy, particularly at the University of Chicago, where Milton Friedman dominated. Neoliberal theory gained in academic respectability by the award of the Nobel Prize in economics to Hayek in 1974 and Friedman in 1976. This particular prize, though it assumed the aura of Nobel, had nothing to do with the other prizes and was under the tight control of Sweden’s banking elite.


pages: 263 words: 80,594

Stolen: How to Save the World From Financialisation by Grace Blakeley

"Robert Solow", activist fund / activist shareholder / activist investor, asset-backed security, balance sheet recession, bank run, banking crisis, banks create money, Basel III, basic income, battle of ideas, Berlin Wall, Big bang: deregulation of the City of London, bitcoin, Bretton Woods, business cycle, call centre, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, central bank independence, collapse of Lehman Brothers, collective bargaining, corporate governance, corporate raider, credit crunch, Credit Default Swap, cryptocurrency, currency peg, David Graeber, debt deflation, decarbonisation, Donald Trump, eurozone crisis, Fall of the Berlin Wall, falling living standards, financial deregulation, financial innovation, Financial Instability Hypothesis, financial intermediation, fixed income, full employment, G4S, gender pay gap, gig economy, Gini coefficient, global reserve currency, global supply chain, housing crisis, Hyman Minsky, income inequality, inflation targeting, Intergovernmental Panel on Climate Change (IPCC), Kenneth Rogoff, Kickstarter, land value tax, light touch regulation, low skilled workers, market clearing, means of production, money market fund, Mont Pelerin Society, moral hazard, mortgage debt, negative equity, neoliberal agenda, new economy, Northern Rock, offshore financial centre, paradox of thrift, payday loans, pensions crisis, Ponzi scheme, price mechanism, principal–agent problem, profit motive, quantitative easing, race to the bottom, regulatory arbitrage, reserve currency, Right to Buy, rising living standards, risk-adjusted returns, road to serfdom, savings glut, secular stagnation, shareholder value, Social Responsibility of Business Is to Increase Its Profits, sovereign wealth fund, the built environment, The Great Moderation, too big to fail, transfer pricing, universal basic income, Winter of Discontent, working-age population, yield curve, zero-sum game

Isn’t the financial crisis a paradigmatic example of our collective inability to challenge the deep-rooted logic of the capitalist system? Yes and no. Ideas, behaviours, and beliefs that are built up over a lifetime cannot be undone overnight. Those raised during the end of history did not see the scales fall from their eyes on the day that Lehman Brothers collapsed. And far from organising in the shadows like the Mont Pelerin Society — the network of right-wing thinkers who sought to undermine social democracy — the left has spent decades in retreat under neoliberalism. Socialist parties, movements, and narratives all faded into the background: many genuinely believed that the centuries-long struggle between labour and capital was over. It took a while for people to realise that the crash had not been a blip; that capitalism was not invulnerable; and that things were only going to get worse, not better.

Thatcher’s radical, neoliberal economic agenda had been forged decades earlier in the Swiss village of Mont Pélerin.23 In 1947, a group of economists from all over the world met to develop a new programme that would begin the fightback against the “Marxist and Keynesian planning sweeping the globe”. This was an austere, intellectual affair, in stark contrast to the bawdy conference that had taken place across the Atlantic three years previously. The Mont Pelerin Society, or the MPS — as the group would name themselves — knew that they were politically and intellectually isolated. The credibility of pre-war laissez-faire liberalism had crashed with Wall Street in 1929. The war that had followed these events had empowered the state to levels never previously seen in history, and these states had used their power to constrain the activities of the international financiers who were sponsoring the event.

Allowing the state to determine where an individual could put their money was seen by some as a threat to human liberty, and to others simply as a barrier to profitability. The alliance between ideologues, desperate to create a world free of totalitarianism where private enterprise thrived, and the opportunists who wanted to undermine a system that was preventing them from making money, marked the Mont Pelerin Society from day one. This ambiguity is important to understanding how neoliberalism eventually rose to prominence. It is both an internally-coherent intellectual framework and an ideology used to promote the power of the owners of capital in general, and finance capital in particular.24 The work of Hayek, von Mises, and others constituted a serious intellectual enterprise grounded in a particular set of values: namely, a commitment to human freedom, defined by control over one’s property.25 The fact that this gave justification for shrinking the size of the state, removing capital controls, and reducing taxes is what led several prominent international financiers to cover a large portion of the costs for the first meeting.


pages: 525 words: 146,126

Ayn Rand Cult by Jeff Walker

affirmative action, anti-communist, Ayatollah Khomeini, Berlin Wall, buy and hold, credit crunch, deindustrialization, dematerialisation, Doomsday Book, Elliott wave, George Gilder, Jane Jacobs, laissez-faire capitalism, market fundamentalism, Mont Pelerin Society, price stability, Ralph Waldo Emerson, road to serfdom, Ronald Reagan, Saturday Night Live, school vouchers, Torches of Freedom

American columnist Walter Lippmann formed a pre-World War II prototype of what would become the Mont Pèlerin Society. Classical liberalism may have appeared dead and socialism unstoppable by 1940 but socialism’s intellectual undoing and economic liberalism’s re-tooling were already under way. Friedrich Hayek’s Road to Serfdom made a huge splash in 1944, doubtless helping out sales of The Fountainhead. Hayek’s book moved American conservatism in a more libertarian direction. Briton Antony Fisher, inspired by Road to Serfdom, would write his own book and then go on, by means of the several influential think-tanks he founded, to become the most important architect of what would later be ideological Thatcherism. The founding of the Mont Pèlerin Society in 1945 marked a decisive point in liberalism’s resurgence. Hayek’s Mont Pèlerin-based movement became the Fabian Society of renewed classical liberalism.

The new right had to create its own counterparts, and eventually infiltrate the political bureaucracy. Those counterparts would come to include the American Enterprise Institute (AEI), the Hoover Institution, the Heritage Foundation, and the Cato Institute. At AEI, William Baroody wanted to forge a conservative Brookings Institute, and by and large he did so. All along, economic liberals in the U.S. were guided by Hayek’s Mont Pèlerin Society as in Europe. At the 1980 Mont Pèlerin Society conference at California’s Hoover Institution, 600 attended. Writes James Smith of that year’s landmark event: “Reagan’s victory was the culmination of a conservative movement that began in the 1940s and early 1950s. Its intellectual lineage . . . draws on the writings of traditionalists like Richard Weaver and Russell Kirk, classical liberals like Friedrich Hayek and Ludwig von Mises, militant anticommunists like Whittaker Chambers and Frank Meyer, and political philosophers like Leo Strauss and Eric Voegelin.”

The Discovery of Freedom by Rose Wilder Lane published. Rand sells the film rights to The Fountainhead for $50,000. 1944 The Road To Serfdom by Friedrich Hayek published. Rand moves back to Hollywood, writes screenplays for Hal Wallis studio. 1947 Rand testifies as a friendly witness before HUAC. Rand breaks with her friend and mentor Isabel Paterson. First meeting of the Mont Pèlerin Society in Switzerland. 1949 Fountainhead movie released. 1950 Nathan Blumenthal (Nathaniel Branden) and Barbara Weidman meet Rand in Los Angeles. 1951 The Brandens move from Los Angeles to New York City, and the O’Connors soon follow. Leonard Peikoff is introduced to Ayn Rand by Nathaniel Branden. 1951–1952 Rand’s inner circle, ‘the Collective’, takes shape. 1953 Nathaniel Branden weds Barbara Weidman. 1954 Rand begins a platonic ‘romance’ with Nathaniel Branden. 1955 The Rand-Branden romance becomes a full-fledged sexual affair. 1957 Atlas Shrugged published. 1958 What will soon become the Nathaniel Branden Institute (NBI) begins, as Branden initiates lectures on Rand’s philosophy.


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Utopia for Realists: The Case for a Universal Basic Income, Open Borders, and a 15-Hour Workweek by Rutger Bregman

autonomous vehicles, banking crisis, Bartolomé de las Casas, basic income, Berlin Wall, Bertrand Russell: In Praise of Idleness, Branko Milanovic, cognitive dissonance, computer age, conceptual framework, credit crunch, David Graeber, Diane Coyle, Erik Brynjolfsson, everywhere but in the productivity statistics, Fall of the Berlin Wall, Francis Fukuyama: the end of history, Frank Levy and Richard Murnane: The New Division of Labor, full employment, George Gilder, George Santayana, happiness index / gross national happiness, Henry Ford's grandson gave labor union leader Walter Reuther a tour of the company’s new, automated factory…, income inequality, invention of gunpowder, James Watt: steam engine, John Markoff, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Kevin Kelly, Kickstarter, knowledge economy, knowledge worker, Kodak vs Instagram, low skilled workers, means of production, megacity, meta analysis, meta-analysis, microcredit, minimum wage unemployment, Mont Pelerin Society, Nathan Meyer Rothschild: antibiotics, Occupy movement, offshore financial centre, Paul Samuelson, Peter Thiel, post-industrial society, precariat, RAND corporation, randomized controlled trial, Ray Kurzweil, Ronald Reagan, Second Machine Age, Silicon Valley, Simon Kuznets, Skype, stem cell, Steven Pinker, telemarketer, The Future of Employment, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, Tyler Cowen: Great Stagnation, universal basic income, wage slave, War on Poverty, We wanted flying cars, instead we got 140 characters, wikimedia commons, women in the workforce, working poor, World Values Survey

“Here I was, a young, naive provincial American,” Friedman later recalled, “meeting people from all over the world, all dedicated to the same liberal principles as we were; all beleaguered in their own countries, yet among them scholars, some already internationally famous, others destined to be.”17 In fact, no fewer than eight members of the Mont Pèlerin Society would go on to win Nobel Prizes. However, in 1947 no one could have predicted such a star-studded future. Large swaths of Europe lay in ruins. Reconstruction efforts were colored by Keynesian ideals: employment for all, curbing the free market, and regulation of banks. The war state became the welfare state. Yet it was during those same years that neoliberal thought began gaining traction thanks to the efforts of the Mont Pèlerin Society, a group that would go on to become one of the leading think tanks of the 20th century. “Together, they helped precipitate a global policy transformation with implications that will continue to reverberate for decades,” says the historian Angus Burgin.18 In the 1970s, Hayek handed the presidency of the Society over to Friedman.

Seemingly the only thing they had in common with Keynes was the belief that the ideas of economists and philosophers are stronger forces than the vested interests of business leaders and politicians. This particular story begins on April 1, 1947, not quite a year after Keynes’ death, when 40 philosophers, historians, and economists converged in the small village of Mont Pèlerin in Switzerland. Some had traveled for weeks, crossing oceans to get there. In later years, they would be known as the Mont Pèlerin Society. All 40 thinkers who came to this Swiss village were encouraged to speak their minds, and together they formed a corps of capitalist resistance fighters against socialist supremacy. “There are, of course, very few people left today who are not socialists,” Hayek, the event’s initiator, had once lamented. At a time when the provisions of the New Deal had pushed even the United States toward more socialistic policies, a defense of the free market was still seen as downright revolutionary, and Hayek felt “hopelessly out of tune with his time.”16 Milton Friedman was also at the meeting of minds.

Though we still have a right and a left, neither side seems to have a very clear plan for the future. In an ironic twist of fate, the neoliberalist brainchild of two men who devoutly believed in the power of ideas has now put a lockdown on the development of new ones. It would seem that we have arrived at “the end of history,” with liberal democracy as the last stop and the “free consumer” as the terminus of our species.20 By the time Friedman was named president of the Mont Pèlerin Society in 1970, most of its philosophers and historians had already decamped, the debates having become overly technical and economic.21 In hindsight, Friedman’s arrival marked the dawn of an era in which economists would become the leading thinkers of the Western world. We are still in that era today.22 We inhabit a world of managers and technocrats. “Let’s just concentrate on solving the problems,” they say.


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Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist by Kate Raworth

"Robert Solow", 3D printing, Asian financial crisis, bank run, basic income, battle of ideas, Berlin Wall, bitcoin, blockchain, Branko Milanovic, Bretton Woods, Buckminster Fuller, business cycle, call centre, Capital in the Twenty-First Century by Thomas Piketty, Cass Sunstein, choice architecture, clean water, cognitive bias, collapse of Lehman Brothers, complexity theory, creative destruction, crowdsourcing, cryptocurrency, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, dematerialisation, disruptive innovation, Douglas Engelbart, Douglas Engelbart, en.wikipedia.org, energy transition, Erik Brynjolfsson, Ethereum, ethereum blockchain, Eugene Fama: efficient market hypothesis, experimental economics, Exxon Valdez, Fall of the Berlin Wall, financial deregulation, Financial Instability Hypothesis, full employment, global supply chain, global village, Henri Poincaré, hiring and firing, Howard Zinn, Hyman Minsky, income inequality, Intergovernmental Panel on Climate Change (IPCC), invention of writing, invisible hand, Isaac Newton, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, Kickstarter, land reform, land value tax, Landlord’s Game, loss aversion, low skilled workers, M-Pesa, Mahatma Gandhi, market fundamentalism, Martin Wolf, means of production, megacity, mobile money, Mont Pelerin Society, Myron Scholes, neoliberal agenda, Network effects, Occupy movement, off grid, offshore financial centre, oil shale / tar sands, out of africa, Paul Samuelson, peer-to-peer, planetary scale, price mechanism, quantitative easing, randomized controlled trial, Richard Thaler, Ronald Reagan, Second Machine Age, secular stagnation, shareholder value, sharing economy, Silicon Valley, Simon Kuznets, smart cities, smart meter, Social Responsibility of Business Is to Increase Its Profits, South Sea Bubble, statistical model, Steve Ballmer, The Chicago School, The Great Moderation, the map is not the territory, the market place, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, too big to fail, Torches of Freedom, trickle-down economics, ultimatum game, universal basic income, Upton Sinclair, Vilfredo Pareto, wikimedia commons

Its aim, they said, was to push back hard against the threat of state totalitarianism, which was spreading fast thanks to the growing reach of the Soviet Union. But that aim gradually morphed into a hard push for market fundamentalism, and the meaning of ‘neoliberal’ morphed along with it. What’s more, when Paul Samuelson’s diagram appeared – depicting which actors were at the heart of the economy and which were pushed into the wings – it provided the perfect setting for their play. Scriptwriting began in the late 1940s with the launch of the Mont Pelerin Society, which lives on to this day.5 But Friedman, Hayek and the other hopeful playwrights knew they might have to wait some decades before their play could be performed. They took the long view: with backing from business and billionaires, they funded university professorships and scholarships, and built an international network of ‘free market’ think tanks, including the American Enterprise Institute and the Cato Institute in Washington, DC, and the Institute of Economic Affairs in London.6 The big time came at last in 1980 when Margaret Thatcher and Ronald Reagan teamed up to bring the neoliberal script to the international stage.

Like the longest-running of Broadway shows, the neoliberal show has been playing ever since, powerfully framing the economic debate of the past thirty years.7 It is high time we met the cast of characters that star in its story, each accompanied here by a biographical note and a one-line character summary that – in true Shakespearean style – loads the plot from the get-go. Economics: the twentieth-century neoliberal story (in which we go to the brink of collapse) Staging by Paul Samuelson Script by the Mont Pelerin Society Cast, in order of appearance: THE MARKET, which is efficient – so give it free rein. As Adam Smith famously wrote, ‘It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.’8 When the market’s invisible hand is set free to work its magic of allocative efficiency, it harnesses the self-interest of every household and business to provide all the goods and jobs that are wanted.

At the end of Shakespeare’s Tempest – when all wrongs have been righted – Prospero’s daughter Miranda, who has lived a cloistered life on the island with her father, sees for the first time the scheming noblemen of Milan who were shipwrecked by the storm. ‘Oh, wonder!’ she exclaims, ‘How many goodly creatures are there here! How beauteous mankind is! O brave new world / That has such people in’t!’ Twenty-first-century economists might share her wonder, but without her political naivety. Having been cloistered for seventy years within the confines of Samuelson’s insular Circular Flow diagram and the Mont Pelerin Society’s narrow neoliberal script, we can now start writing a new story simply by picking up a pencil and first drawing the Embedded Economy. And since this big-picture perspective puts the economy in context, it is far easier to see some of the big questions that the twenty-first-century economist must tackle. There’s just one thing still missing and that is the play’s protagonist: humanity. 3 NURTURE HUMAN NATURE from rational economic man to social adaptable humans Think of the most famous portrait ever painted.


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Goddess of the Market: Ayn Rand and the American Right by Jennifer Burns

anti-communist, bank run, barriers to entry, centralized clearinghouse, collective bargaining, creative destruction, desegregation, feminist movement, financial independence, George Gilder, invisible hand, jimmy wales, Joan Didion, John Markoff, Joseph Schumpeter, knowledge worker, laissez-faire capitalism, lone genius, Menlo Park, minimum wage unemployment, Mont Pelerin Society, new economy, Norman Mailer, offshore financial centre, Ponzi scheme, profit motive, RAND corporation, rent control, road to serfdom, Robert Bork, rolodex, Ronald Reagan, side project, Stewart Brand, The Chicago School, The Wisdom of Crowds, union organizing, urban renewal, white flight, Whole Earth Catalog

Hayek’s arrival marked a high point in this campaign, even though he was rejected by the Economics Department and instead landed at the Committee for Social Thought, with a salary paid by the Volker Fund. Regardless of how he got there, once at Chicago Hayek quickly expanded on the earlier efforts of Knight and Director and helped transform the university into a powerhouse of market economics.11 His most successful venture was the Mont Pelerin Society, an international society of economists he launched in 1947. Hayek drew on the same pool of conservative businessmen that Read and Mullendore first targeted with Pamphleteers, shaping an organization that bridged the worlds of commerce and academia. Rand cast a gimlet eye on Hayek. In a letter to Rose Wilder Lane, a libertarian book reviewer, she called him “pure poison” and “an example of our most pernicious enemy.”

This qualification, like his willingness to tolerate limited government programs, outraged Rand. To her it was proof of why individualism had failed as a political ideology: “It had no real base, no moral base. This is why my book is needed.” Hayek would have been surprised at Rand’s contention that his individualism had no moral base. His work was motivated by a deep sense of spiritual crisis, and for an organization of economists the Mont Pelerin Society was unusually sensitive to questions of morality. Hayek originally wanted to name his group the Acton-Tocqueville Society, in reference to two great Catholic thinkers.15 But Rand and Hayek had very different understandings of what was moral. In The Road to Serfdom Hayek criticized people of goodwill and their cherished ideals, insisting that the West examine the ethical assumptions that underlay its descent into barbarism.

That two economists with legitimate academic positions would take a public stand against rent control was enough to ensure FEE’s support. Still, the whole episode was problematic. In addition to incurring Rand’s wrath the pamphlet alienated Friedman and Stigler, who were deeply offended by Read’s unauthorized footnote. For many years they refused any collaboration with FEE or Read, until finally reconciling through their mutual connection to the Mont Pelerin Society. For her part, Rand felt betrayed by Read’s failure to understand the principles at stake in their work and wounded by his disregard for their “ghost” agreement.47 Only weeks later Read added insult to injury when he sent Rand a sheaf of anonymous comments on her short article, “Textbook of Americanism.” Rand had written the piece for The Vigil, the official publication of the Motion Picture Alliance for the Preservation of American Ideals, the Hollywood anti-Communist group that had recruited her to its board.


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The Politics of Bitcoin: Software as Right-Wing Extremism by David Golumbia

3D printing, A Declaration of the Independence of Cyberspace, Affordable Care Act / Obamacare, bitcoin, blockchain, Burning Man, crony capitalism, cryptocurrency, currency peg, distributed ledger, Elon Musk, en.wikipedia.org, Ethereum, ethereum blockchain, Extropian, fiat currency, Fractional reserve banking, George Gilder, jimmy wales, litecoin, Marc Andreessen, money: store of value / unit of account / medium of exchange, Mont Pelerin Society, new economy, obamacare, Peter Thiel, Philip Mirowski, risk tolerance, Ronald Reagan, Satoshi Nakamoto, seigniorage, Silicon Valley, Singularitarianism, smart contracts, Stewart Brand, technoutopianism, The Chicago School, Travis Kalanick, WikiLeaks

Both of these doctrines or dogmas stem from the writings of core right-wing thinkers such as Friedrich August von Hayek, Ludwig von Mises, Milton Friedman, Rothbard, and others, as well as their more recent followers. The most trenchant critic of this work, on whose research my analysis relies in particular, is the economic historian and theorist Philip Mirowski, whose Never Let a Serious Crisis Go to Waste (2014) remains the single most comprehensive account of what he calls the Neoliberal Thought Collective and the nearly identical Mont Pelerin Society (MPS), of which Hayek was the founding president. Mirowski, along with some of his colleagues, has explained with particular cogency how Hayek and others disseminated neoliberal doctrine. From somewhat different angles, writers like Chip Berlet (2009), Berlet along with Matthew Lyons (2000), Claire Conner (2013), Sara Diamond (1995), Michael Perelman (2007), Jill Lepore (2010), and the writers in Flanders’s edited volume (2010) give us thoroughly documented accounts of how those wider spheres of right-wing political thought and practice operate, distributed among actors whose overt adherence to MPS doctrine can vary widely, though they tend to be found far more on the right than the left.

The idea that inflation is a “destruction of value” and that the U.S. dollar has lost most or all of its purchasing power over the course of a hundred years has long been a staple of conspiracy theories, in no small part used by demagogues like Alex Jones to drive the unsuspecting toward purchases of gold and other precious metals (on inflation conspiracy theories in general see Aziz 2014 and Krugman 2011; for Ron Paul’s use of inflation conspiracy theories see Foxman 2012). The extremist characterization of inflation may have found its way into some parts of popular discourse via its promulgation in JBS and other right-wing propaganda, but it was a theory developed and cultivated by the architects of neoliberal doctrine associated with the Chicago School of economics and the Mont Pelerin Society. Chief among these was MPS founding member and early 1970s president and University of Chicago economics professor Milton Friedman. Since at least the 1950s Friedman preached a very specific point of view about inflation, summarized in his famous (Friedman 1963) dictum that “inflation is always and everywhere a monetary phenomenon.” While this matter may have seemed an arcane and technical matter for economists, it ended up underwriting a new form of right-wing practice, where instead of demanding that governments take a “hands-off” policy toward markets as had their predecessors, neoliberals wanted to take control of state power for their own ends: “A primary ambition of the neoliberal project is to redefine the shape and functions of the state, not to destroy it” (Mirowski 2014, 56).


pages: 614 words: 174,226

The Economists' Hour: How the False Prophets of Free Markets Fractured Our Society by Binyamin Appelbaum

"Robert Solow", airline deregulation, Alvin Roth, Andrei Shleifer, anti-communist, battle of ideas, Benoit Mandelbrot, Big bang: deregulation of the City of London, Bretton Woods, British Empire, business cycle, capital controls, Carmen Reinhart, Cass Sunstein, Celtic Tiger, central bank independence, clean water, collective bargaining, Corn Laws, correlation does not imply causation, Credit Default Swap, currency manipulation / currency intervention, David Ricardo: comparative advantage, deindustrialization, Deng Xiaoping, desegregation, Diane Coyle, Donald Trump, ending welfare as we know it, financial deregulation, financial innovation, fixed income, floating exchange rates, full employment, George Akerlof, George Gilder, Gini coefficient, greed is good, Growth in a Time of Debt, income inequality, income per capita, index fund, inflation targeting, invisible hand, Isaac Newton, Jean Tirole, John Markoff, Kenneth Arrow, Kenneth Rogoff, land reform, Long Term Capital Management, low cost airline, manufacturing employment, means of production, Menlo Park, minimum wage unemployment, Mohammed Bouazizi, money market fund, Mont Pelerin Society, Network effects, new economy, oil shock, Paul Samuelson, Philip Mirowski, plutocrats, Plutocrats, price stability, profit motive, Ralph Nader, RAND corporation, rent control, rent-seeking, Richard Thaler, road to serfdom, Robert Bork, Robert Gordon, Ronald Coase, Ronald Reagan, Sam Peltzman, Silicon Valley, Simon Kuznets, starchitect, Steve Jobs, supply-chain management, The Chicago School, The Great Moderation, The Myth of the Rational Market, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, transaction costs, trickle-down economics, ultimatum game, Unsafe at Any Speed, urban renewal, War on Poverty, Washington Consensus

The foundation inserted a note, without the authors’ permission, describing the pamphlet as all the more compelling for showing that even a pair of bleeding hearts like Friedman and Stigler opposed rent control. A trade group for real estate agents distributed half a million copies.23 By the time the pamphlet appeared in the fall of 1946, Friedman already had left Minnesota to join the economics faculty at the University of Chicago. Shortly after his arrival, in the spring of 1947, he traveled with Aaron Director and Stigler to Switzerland for the first meeting of the Mont Pelerin Society, a group created by the libertarian economist Friedrich Hayek to bring together the lonely apostles of the free market, who labored in an environment of unremitting hostility to their ideas, which were widely viewed as dangerous and old-fashioned. “Nobody in Europe believes in the American way of life, that is, private enterprise, or rather, those who believe in it are a defeated party which seems to have no more future than the Jacobites in England after 1688,” the British political commentator A.

He also worried that using money as an inducement would draw a lower quality of people into the military. Crawford Greenewalt, the former chief executive of the chemical conglomerate DuPont, asked for assurances at the first meeting that he would not be required to support an end to the draft, and he continued to express hesitation right through the last meeting. Greenewalt was, like Friedman, a member of Hayek’s Mont Pelerin Society. But Greenewalt’s minimalist conception of social obligation included military service. He suggested the government should raise military pay while leaving conscription in place, thus eliminating the tax on those who served. Friedman and the research staff, who had a rejoinder to every concern, pointed out that paying an average wage still would not adequately compensate men who could earn more in civilian life — a group that included the likes of Private Willie Mays and Sergeant Elvis Presley.

Friedrich Hayek, after visiting in 1977, said Chile was benefiting economically and politically. “I have not been able to find a single person even in much maligned Chile who did not agree that personal freedom was much greater under Pinochet than it had been under Allende,”he said.42 But his methodology may have been compromised by his inability to interview the many thousands already killed or exiled. Four years later, in 1981, Hayek’s free-market Mont Pelerin Society held a meeting in Chile, a decision widely seen as a seal of approval. But there was little cause for celebration. The growth of the late 1970s and early 1980s only served to offset the recession of the early Pinochet years. In 1973, when Pinochet seized power, income per capita in Chile was about 12 percent higher than the average for Latin America. By 1981, the difference once again was approaching 12 percent.43 Then de Castro and the Chicago Boys crashed the Chilean economy for the second time.


Battling Eight Giants: Basic Income Now by Guy Standing

basic income, Bernie Sanders, centre right, collective bargaining, decarbonisation, diversified portfolio, Donald Trump, Elon Musk, full employment, future of work, Gini coefficient, income inequality, Intergovernmental Panel on Climate Change (IPCC), job automation, labour market flexibility, Lao Tzu, longitudinal study, low skilled workers, Martin Wolf, Mont Pelerin Society, moral hazard, North Sea oil, offshore financial centre, open economy, pension reform, precariat, quantitative easing, rent control, Ronald Reagan, selection bias, universal basic income, Y Combinator

The rise of rentier capitalism There is a structural reason for the rise of the inequality giant: the income distribution system that prevailed in the post-1945 era has broken down irretrievably. This is a global phenomenon, not restricted just to Britain, even though it has been worsened in Britain by the inequalities of austerity. The gradual collapse in the income distribution system began with the adoption of what is now called ‘neoliberalism’ in the 1980s, led by Margaret Thatcher and Ronald Reagan and guided by a bunch of economists linked to the Mont Pelerin Society. Neoliberalism may be characterized as the belief in open ‘free’ markets, defined by privatization, the sanctity of private property rights, free trade and minimal roles for protective labour regulations and collective bodies, which neoliberals see as distorting market forces. But, though preaching belief in free markets, neoliberalism actually ushered in an era dominated by finance with the most unfree market system ever envisaged, regulated in favour of corporations and rentiers.

See also individual entries definition 1, 4–8 reasons for need 8–9 security 98, 113, 114 system 1, 20, 23, 26, 32, 37, 52, 70, 84, 90–1, 122 n.7 Basic Income Earth Network (BIEN) 94 behavioural conditionality 70, 73, 77, 114 behaviour-testing 4, 39, 70, 84 benefits 5, 7, 27 conditional schemes 41 social assistance 23 BET365 11 Beveridge, William 8–9, 38 Beveridge model 21 Big Bang liberalization 18 BJP 92 black economy 40, 60 B-Mincome 99–100 Booker, Cory 101 brain development 98–9 132 Branson, Richard 54 Brexit 53 Britain 6, 8–10, 12–18, 20, 23–4, 26–7, 30–1, 33–4, 37–8, 40–2, 55, 57, 59, 90, 101, 104, 112 British Columbia 95 British Constitution 1 Buck, Karen 57 bureaucracy 40, 49, 100, 102 Bureau of Economic Analysis 16 Business Property Relief 58 California 69, 96–7 Canada 35 capacity-to-work tests 6, 104 cap-and-trade approach 34 Capita 50 capital dividend 59 capital fund 89–90 capital grants 59, 75, 76, 92 carbon dividends 37 carbon emissions 33–4 carbon tax 34–5, 37 care deficit 53 care work 36, 53, 67, 74, 84 cash payments 111 cash transfers 99 ‘casino dividend’ schemes 88 charities 48 The Charter of the Forest (1217) 1 Chicago 99 Child Benefit 57, 58, 72, 123 n.4 childcare 99, 110–11 child development 88 Child Tax Credits 81 chronic psychological stress 26 Citizens Advice 46–8 Citizen’s Basic Income Trust 7, 122 n.7, 123 n.4 citizenship rights 1, 29 civil society organizations 79 Index climate change 34 Clinton, Hillary 126 n.4 Clinton, Bill 105 Coalition government 41, 50 cognitive performance 33 collateral damage 53 common dividends 7, 20, 21, 59–60, 69, 73, 75, 83, 84, 85 Commons Fund 8, 35, 57, 59, 89 community cohesion 3 resilience 23 work 84 ‘community payback’ schemes 102 Compass 59 compensation 2, 7, 16, 104 ‘concealed debt’ 24–5 conditional cash transfer schemes 90 Conservative government 9, 85 Conservatives 23 consumer credit 24 consumption 23 contractual obligations 46 Coote, Anna 113 cost of living 25, 49, 52, 83 council house sales 76 council tax 25 Crocker, Geoff 122 n.15 cross-party plans 80 crowd-funded schemes 100 deadweight effects 102 ‘deaths of despair’ 27 Deaton, Angus 10 debt 23–6, 67, 85 debt collection practices 24–5 decarbonization 34 dementia 33 democratic values 69 Democrats 37 demographic changes 15 Index 133 Department for Work and Pensions (DWP) 11–12, 42–8, 50–2, 73, 81, 92, 129 n.6 depression 28, 94 direct taxes 56, 58 disability benefits 6, 49–52, 83 Disability Living Allowance (DLA) 49–51 Disabled People Against Cuts 52 Dividend Allowance 58 ‘dividend capitalism’ 8 domestic violence 29, 87 Dragonfly 92 due process 46, 49 ecological crisis 33, 37, 39, 114 ecological developments 21 ecological disaster 35 ecological taxes and levies 37 economy benefits 20, 60 crisis 106 damage 34 growth 20, 36, 106 industrialized 20 insecurity 21, 35, 39, 89 security 75, 80, 84, 88 system 15, 27, 38 tax-paying 60 uncertainty 8, 22–3, 31 ‘eco-socialism’ 8 ecosystems 33 Edinburgh 80 education 88, 108 Elliott, Larry 122 n.15 employment 16, 22, 39, 60–1, 81, 89, 93–4, 102, 106, 107, 110, 114 Employment Support Allowance (ESA) 27, 41, 49–51 England 28, 63, 110–11 Enlightenment 85 Entrepreneurs’ Relief 18 equality 31, 85 Europe 37 European Foundation for the Improvement of Living and Working Conditions (Eurofound) 120 n.1 European Heart Journal 33 European Union 6, 17, 41 euthanasia 113 extinction 33–7 ‘Extinction Rebellion’ 33 Fabian Society 57–8 Facebook 97 family allowances 56 family benefits 56 family insecurity 23 federal welfare programs 106 Fife 24, 80 financial crash (2007–8) 23, 26, 34 financialization 116 n.22 financial markets 18 Financial Services Authority 123 n.15 Financial Times 19, 123 n.15 financial wealth 18 Finland 28, 61, 93–5 food banks 10, 29–30, 43, 109 food donations 29 food insecurity 108–9 fossil fuels 33–4 France 12, 17, 18, 32, 38, 57 free bus services 112 freedom 8, 30, 84, 85, 101, 114 ‘free food’ 108–9, 129 n.6 ‘free’ labour market 106 free trade 13 Friends Provident Foundation 75 fuel tax 35 fund and dividend model 89 funding 29, 59, 62, 69, 71–2, 112 134 G20 (Group of 20 large economies) 15 Gaffney, Declan 57 Gallup 105 GDP 14, 17–18, 23–4, 34, 36, 59, 89, 108 General Election 91–2, 94 ‘genuine progress indicator’ 36 Germany 17–18, 38, 100 Gillibrand, Kirsten 101 Gini coefficient 9, 12 GiveDirectly 91 Glasgow City 80 globalization 14 Global Wage Report 2016/17 14 global warming 33, 37 Good Society 75, 106 The Great British Benefits Handout (TV series) 92 Great Depression 9 Great Recession 23 greenhouse gas emissions 34, 36 gross cost 110 The Guardian 101, 103, 122–3 n.15 Hansard Society 37 Harris, Kamala 101 Harrop, Andrew 57 Hartz IV 100 HartzPlus 100 health 67, 87, 100 human 33 insurance premiums 35 services 60 healthcare costs 28 hegemony 14 help-to-buy loan scheme 76 Her Majesty’s Revenue and Customs (HMRC) 64, 73, 81 Hirschmann, Albert 56 household debt 24 Index household earnings 16 household survey 12 House of Commons 110–11 housing allowance 95 Housing Benefit 24, 41, 53, 71 housing policy 53 hub-and-spoke model 112 Hughes, Chris 97 humanity 33 human relations 3 ‘immoral’ hazard 109 ‘impact’ effects 78 incentive 62 income 81 assistance 88 average 83 components 11 distribution system 4, 13–14, 38, 67, 84, 107, 114 gap 9 growth 16 insecurity 27 men vs. women 15–16 national 14, 36 pensioners’ 16 rental 13–15, 20 social 14, 16–17 support payments 110 tax 1, 7, 57, 89, 111 transfer 85 volatility 22 India 68, 80, 90–2 Indian Congress Party 91 inequality 2, 4, 9–13, 21, 29, 31, 33, 35, 37, 38, 39, 54, 80, 85, 114 growth 17 income 9–10, 15–17, 19 living standard 20 wealth 18–19, 76 informal care 111 Index 135 inheritance tax 58 in-kind services 111 insecurity 21–3, 29, 38, 39, 47, 67, 85, 106 Institute for Fiscal Studies (IFS) 10 Institute for Public Policy Research 125 n.17 Institute for Public Policy Research (IPPR) 75, 111 Institute of New Economic Thinking 123 n.15 Institute of Public Policy Research 59 insurance schemes 8 intellectual property 14–15 Intergovernmental Panel on Climate Change (IPCC) 34 International Labour Organization (ILO) 14, 122 n.4 International Monetary Fund (IMF) 31, 34 international tax evasion 18 interpersonal income inequality 83 inter-regional income inequalities 83 intra-family relationships 3 involuntary debt 26 in-work benefits 22 Ireland 35 Italy 18 labour 31, 107 inefficiency 106 law 101 markets 8, 14, 32, 39, 40, 60, 62–3, 96, 100, 106 regulations 13 supply 67, 95 Labour governments 85 labourism 106 Lansley, Stewart 59 Latin America 90 Left Alliance 94 Lenin, Vladimir Ilyich 113 Liberal government 35 life-changing errors 51 life-threatening illness 33 Liverpool 80 living standards 20, 23, 33, 36, 53, 59, 92 Local Housing Allowances 24 London Homelessness Project 92–3 low-income communities 33 low-income families 21 low-income households 17 low-income individuals 86 Low Pay Commission 63 low-wage jobs 60, 107 Luddite reaction 32 lump-sum payments 35, 59, 76 Jackson, Mississippi 99 JobCentrePlus 47 job guarantee policy 101–7 job-matching programs 106 Jobseeker’s Allowance (JSA) 41, 46 Joseph Rowntree Foundation 21 McDonnell, John 129 n.13 McKinsey Global Institute 31 Macron, Emmanuel 35 Magna Carta 1 ‘Making Ends Meet’ 97 ‘mandatory reconsideration’ stage 51 Manitoba 87–8 Manitoba Basic Annual Income Experiment (Mincome) 87 market economy 105, 114 master-servant model 101 Kaletsky, Anatole 123 n.15 Kenya 90–2 Khanna, Ro 103 Kibasi, Tom 113 136 Index Maximus 50 means-testing 4, 39, 42, 48, 58, 61–2, 70, 84, 88, 90, 109–10, 114 benefits 5, 7, 27, 40, 46, 56, 71–3, 81, 129 n.6 social assistance 23, 41, 95, 122 n.7 system 6 medical services 28 Mein Grundeinkommen (‘My Basic Income’) 100 mental health 26, 28, 94 disorders 88 trusts 28 mental illness 33, 68 migrants 7, 113 ‘minimum income floor’ 45 Ministry of Justice 51 modern insecurity 22 modern life 31 monetary policy 59 Mont Pelerin Society 13 moral commitment 75 moral hazard 109 mortality 27, 76 multinational investment funds 34 Musk, Elon 31, 54 Namibia 90–2 National Audit Office (NAO) 24, 43–4, 46, 76 National Health Service (NHS) 8, 24, 27–8, 44, 68, 80, 108, 111 National Insurance 18, 22, 124 n.4 nationalism 37 National Living Wage 63 National Minimum Wage 63–4 national solidarity 3 Native American community 88 negative income tax (NIT) 23, 87, 95, 100 neo-fascism 37–8 neoliberalism 13, 84 Netherlands 96 New Economics Foundation (NEF) 57, 113, 122 n.15 non-resident citizens 113 non-wage benefits 16 non-wage work 74 North America 67 North Ayrshire 80 North Carolina 88 North Sea oil 89–90 Nyman, Rickard 23 Oakland 96–7 Office for National Statistics (ONS) 14–15, 17, 36 Ontario, Canada 95–6 open economy 84 open ‘free’ markets 13, 15 opportunity dividend 59 Organization for Economic Co-operation and Development (OECD) 18, 23, 27, 31 Ormerod, Paul 23 Osborne, George 19 Paine, Thomas 2, 75 Painian Principle 2 panopticon state 55 Paris Agreement (2015) 34 participation income 74–5 paternalism 42, 55 pauperization 63 Pawar, Alderman Ameya 99 pay contributions 21 pension contributions 18, 58 Pension Credit 41 Pericles Condition 75 permanent capital fund 71 personal care services 110–11 Index 137 personal income tax 35 Personal Independence Payment (PIP) 49–51 personal insecurity 23 Personal Savings Allowance 58 personal tax allowances 17, 58, 59 perverse incentives 50 physical health 26, 94 piloting in Britain 67–81 applying 80–1 rules in designing 70–80 policy development 3, 69 political decision 78 political discourse 92 political instability 35 political system 38 populism 37–8, 75 populist parties 37 populist politics 39 Populus survey 55 post-war system 8 poverty 2, 4, 10–12, 22, 27, 29, 36, 38, 40, 60–1, 89, 100, 108–9, 114, 125 n.17, 129 n.6 precarity 29–30, 38, 39, 60–1, 85, 103, 129 n.6 Primary Earnings Threshold 124 n.4 private debt 23–4, 39 private inheritance 2 private insurance 85 private property rights 13 private wealth 18 privatization 13, 17, 112 property prices 76 prostitution 43 Public Accounts Committee (PAC) 51 public costs 28 public debt 23 public inheritance 61 public libraries 47 public policy 97 public sector managers 103 public services 4, 17, 62, 108, 112, 114 public spending 89 public wealth 18 ‘quantitative easing’ policy 59 quasi-basic income 89, 98 quasi-universal basic services 30 quasi-universal dividends 35 quasi-universal system 61, 70, 90 Randomised Control Trial (RCT) 124–5 n.14 rape 44 Ratcliffe, Jim 12 Reagan, Ronald 13 Reed, Howard 59 refugees 7 regressive universalism 57 regular cash payment 7 rent arrears 24 controls 53 rentier capitalism 13–21, 107, 116 n.22 republican freedom 2–3, 30, 84 Republicans 37 Resolution Foundation 10, 15, 19, 25, 76 ‘revenue neutral’ constraint 7 right-wing populism 37–8 robot advance 31–3 Royal College of Physicians 33 Royal Society of Arts 55, 59, 124 n.12 RSA Scotland 125 n.17 Rudd, Amber 9 Russia 113 138 Sanders, Bernie 101 scepticism 31 schooling 67, 89 Scotland 69, 80, 111 Second World War 19, 21 security 8, 38, 55, 68, 84 economic 3, 4, 49, 56 income 73–4 social 8, 22, 49 Self-Employed Women’s Association (SEWA) 68 self-employment 45 Shadow Chancellor of the Exchequer 3, 115 n.3 Smith, Iain Duncan 42 ‘snake oil’ 113 social assistance 3, 28 social benefit 20 social care 102, 104, 110–11 social crisis 106 social dividend scheme 92 Social Fund 29 social inheritance 2 social insecurity 21 social insurance 22, 85 social integration 44 social justice 2, 8, 20, 69, 84, 101, 114 social policy 8, 23, 26, 30, 42, 53, 84–5, 96 social protection system 32 social relation 100 social security 10, 70–1, 95 social solidarity 3, 8, 39, 61, 84–5, 91 social spending 17 social status 104 social strife 35 social value 29 ‘something-for-nothing’ economy 19–20, 61 Index Speenhamland system 63 State of the Global Workplace surveys 105 statutory minimum wages 106 stigma 47, 55 stigmatization 41, 109 Stockton 97–9 Stockton Economic Empowerment Demonstration (SEED) 97 stress 26–9, 39, 51, 67, 68, 85, 93 student loans 24 substitution effects 102–3 suicides 26–7 Summers, Larry 105–6 Sweden 113 Swiss bank Credit Suisse 12 Switzerland 35 tax advantages 49 and benefit systems 17, 18, 69, 110 credits 3, 17, 24, 63, 105, 106 policies 16 rates 72 reliefs 17–18, 57–8, 61 tax-free inheritance 19 technological change 105 technological revolution 14, 31, 114 ‘teething problems’ 42 Thatcher, Margaret 13 Thatcher government 9, 18 The Times 92 Torry, Malcolm 122 n.7 Trades Union Congress 24 tribal casino schemes 76 ‘triple-lock’ policy 16 Trump, Donald 37 Trussell Trust 29, 43 Tubbs, Michael 97–8 Index 139 Turner, Adair 123 n.15 two-child limit 44 UK.


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How Did We Get Into This Mess?: Politics, Equality, Nature by George Monbiot

Affordable Care Act / Obamacare, Alfred Russel Wallace, bank run, bilateral investment treaty, Branko Milanovic, Capital in the Twenty-First Century by Thomas Piketty, collective bargaining, Corn Laws, creative destruction, credit crunch, David Attenborough, dematerialisation, demographic transition, drone strike, en.wikipedia.org, first-past-the-post, full employment, Gini coefficient, hedonic treadmill, income inequality, Intergovernmental Panel on Climate Change (IPCC), investor state dispute settlement, invisible hand, land reform, land value tax, market fundamentalism, meta analysis, meta-analysis, Mont Pelerin Society, moral panic, Naomi Klein, Northern Rock, obamacare, oil shale / tar sands, old-boy network, peak oil, place-making, plutocrats, Plutocrats, profit motive, rent-seeking, The Wealth of Nations by Adam Smith, Thomas Malthus, transaction costs, urban sprawl, wealth creators, World Values Survey

A financial crisis caused by unregulated lending could turf hundreds of thousands out of their homes and trigger a cascade of economic troubles. These problems appear unrelated, but they all have something in common. They arise in large part from a meeting that took place sixty years ago in a Swiss spa resort. It laid the foundations for a philosophy of government that is responsible for many, perhaps most, of our contemporary crises. When the Mont Pelerin Society first met, in 1947, its political project did not have a name. But it knew where it was going. The society’s founder, Friedrich von Hayek, remarked that the battle for ideas would take at least a generation to win, but he knew that his intellectual army would attract powerful backers. Its philosophy, which later came to be known as neoliberalism, accorded with the interests of the ultra-rich, so the ultra-rich would promote it.

If these opportunities were insufficient, the neoliberals and their backers would use bribery or force. In the US, the Democrats were neutered by new laws on campaign finance. To compete successfully with the Republicans, they would have to give big business what it wanted. The first neoliberal programme of all was implemented in Chile following Pinochet’s coup, with the backing of the US government and economists taught by Milton Friedman, one of the founding members of the Mont Pelerin Society. Drumming up support for the project was a simple matter: if you disagreed, you got shot. The International Monetary Fund and the World Bank used their power over developing nations to demand the same policies. But the most powerful promoter of this programme was the media. Most media outlets are owned by multi-millionaires who use it to project the ideas that support their interests. Those which threaten their plans are either ignored or ridiculed.

See also specific conferences International Energy Agency, 149, 172 International Family Planning Perspectives, 73 International Institute for Environment and Development, 104 International Monetary Fund, 220 investor-state dispute settlement, 250, 251, 252, 253 Ishiguro, Kazuo, 63 ISIS, 242, 243 Islamic State, 241 J Jabhat al-Nusra, 243 Japan Tobacco International, 223 Jefferson, Thomas, 230 Jesus, 58–9 Joint Congressional Inquiry into 9/11, 244 Jones, Digby, 263 Jones, Griff Rhys, 278 Joseph, Keith, 220 journals/journalists, 2, 6, 194–6, 214, 222–4 Judson, Jeff, 214 junk, festival of, 205 Justices of the Peace Act (1361), 276 JWT, 287 K Kahneman, Daniel, 188–9 Kenny, Paul, 266 Kensington Palace Gardens, 282 Keynes, John Maynard, 219 Kidd, Benjamin, 234 Kikuyu, 232, 233, 235 killer whales, change of diet of, 84 King’s College London, 39 Kingsnorth climate camp, 260 Kith (Griffiths), 43 Klein, Joe, 56 knowledge monopoly, 197 Knox, Robert, 233 Koch, Charles, 211, 212, 214 Koch, David, 211, 212, 214 Koch Industries, 211 L Labour Party, 23, 129, 183, 263, 264, 266, 267, 281, 283, 289 Lac Long Quân, 90 laissez-faire economics, 3, 182 Lake District, 135 Lancet, 73, 75 land-clearing grants, 133 land reform programmes in China, 141 in Scotland, 275, 277–9 in South Korea, Taiwan and Japan, 141 landscape pornographers, 109 The Land magazine, 277 land value taxation, 278, 282, 283 Latin America, abortion rate, 75–6 law enforcement, in schools in Texas, 62, 66 Lawson-Cruttenden, Timothy, 269 lead poisoning, and crime rates, 161–2 lead pollution, 161, 163 Leahy, Terry, 216 Leonard, Annie, 203 Leopold, Aldo, 88 Liberal Democrats, 280 Liberty, 29, 30 Lilley, Peter, 215 limited liability, 5 Lindqvist, Sven, 233 linearity, 91, 92, 98 livestock production, 113, 114 living systems, impacts of, 80 Lloyd George, David, 277 Lomborg, Bjorn, 200 The Lomborg Deception (Friel), 200 London Business School, 49, 50 London School of Economics (LSE), 49, 50 loneliness, 10, 11, 16 Longannet (Scotland), 172 Lord of the Rings, the Two Towers (film), 90 L’Osservatore Romano, 231 Lovelock, James, 103, 106, 107 Lucan, Lord, 213 lung cancer, as caused by air pollution, 171 lynx, return of to former ranges, 97 M Macdonald, Lord, 30 Main Kampf (Hitler), 234 maize cultivation, impact of, 124–5 Major, John, 215, 275 Malthus, Thomas, 180, 181, 182 management consultancy, jobs in, 48, 49, 187 Mandelson, Lord, 105 Manilow, Barry, 69 mansion tax, 278, 282 manure production, 114 Marcus Crassus, 191 marine faecal plumes, 79, 82 marine parks, 98 market economy, 5, 16 market freedom, 45, 198, 218 market fundamentalism, 3, 15, 16, 17 Marlowe, Christopher, 120 marriage same-sex marriage, 58 sex outside of, 60 Marshall, George, 158 mass mobilisation, 6 Mau Mau rebellion, 233 Maxwell, Robert, 196, 195195 meat production, 113, 114 media accountability of journalists, 222, 224 as bullying, 23 on drone strikes, 56 fascination with power politics, 287 as instrument of corporate power, 212 payola scandals, 223 role of as promoter of neoliberal programme, 220–1 think tanks and, 214–16 Men in Sheds, 13 mental health crises, 21–2 mercury pollution, 170 merit, 15, 16 meritocracy, 186 mesopredators, 80–1 methylmercury, 171 micro-hydropower, 166 migratory fish, 167 Milanovic, Branko, 191 Miliband, Ed, 278, 289 military intervention, vs. political solutions, 244 Millennium Ecosystem Assessment, 201 millionaires as funders, 23 media as owned by, 220 political parties as in the clutches of, 26 Shaun Woodward, 266 tax rate, 285 as on top of scala natura, 1–2 in US Congress, 24 mineral exhaustion, 150 money transfers, 236–9 monsters, human encounters with, 90, 91, 98 Mont Pelerin Society, 218, 220 Montreal Protocol, 100 moose, return of to former ranges, 97 Moral Maze (BBC programme), 206 Morgan, Rhodri, 148 Morris, Chris, 238 Mosquito youth dispersal device, 67, 68, 69, 71 Mother Jones, 160 MSNBC, 56 Mugabe, Robert, 139, 142 multilateralism, 101 Murdoch, Rupert, 193, 194, 212, 267 Murphy, Guy, 287, 288 Murphy-O’Connor, Cormac (Cardinal), 72–3 Muslim world, bombing of, 241, 243, 244–5 N National Council for Educational Excellence, 264 National Ecosystem Assessment (UK), 121 National Extremism Tactical Co-ordination Unit (NETCU), 260, 261, 262 National Farmers’ Union (NFU), 124, 127, 128, 129 National Institutes of Health (US), 196 National Union of Rail, Maritime and Transport Workers (RMT), 267 Natural Resources Wales, 132 natural gas, impacts of, 167 natural world creating refuges for, 102 deterioration of, 19, 24 Nature, 106 nature programmes, popularity of, 92 negative freedom, 4 neoliberalism, 3, 4, 5, 15, 16, 17, 190, 191, 213, 215, 216, 218, 219, 220, 221 Netherlands, abortion rate, 75 Never Let Me Go (Ishiguro), 63–4 New Labour, 288 New Testament, pastoral tradition as depicted in, 120 Newtown, Connecticut, 53, 55, 56 New York Times, 231 New York University, 54 Nexus 7, 205 NFU (National Farmers’ Union), 124, 127, 128, 129 Ngena detention camp, 232 NHS, 72, 253 Nigeria, greenhouse gas emissions in, 87 1950s, as golden age, 61 Nixon, Richard, 219 North American Free Trade Agreement, 252 North American roc (Aiolornis incredibilis), 85 Northern Rock, 198–9, 201 North Sea, 149, 156 Northumberland County Council, 149 Norway, climate change policies, 157 No Turning Back (Pirie), 215, 216 No Turning Back group, 215 nuclear family, 58, 59, 60 nuclear power, 150, 164–72 nursery consultant, 20 O Obama, Barack, 53, 54, 55, 56, 157, 209, 210, 243, 255, 256 O’Brien, Mike, 148 Observer, 210, 260, 261 occupations, pointless and destructive jobs, 48 Occupy London, 192 Odone, Cristina, 61 OECD, 142 Office of the Comptroller of the Currency (US), 235, 240 Ofsted, 40 oil and gas prospecting/drilling, 149, 151, 156, 157, 159, 176–7 Oil and Gas UK, 156 Oldham, Taki, 211 Old Poor Law (England), 179 oligarchs, 2, 3, 15, 121, 219, 275, 279 Olin, John M., 16, 219 One Hyde Park, 282 opencast coal mines, 147, 149, 155 opiate use, 34–5 Optimum Population Trust (OPT), 106 Osborne, George, 181, 182, 281 outdoor learning, 39–42 Oxfam, 187 Oxford Farming Conference, 133 Oxford University, 49, 50, 51 P particulates, 171 pastoral tradition, impact of, 120–1 Paterson, Owen, 133, 134, 135, 136, 137 pathological consumption, 204 pay gap, 187 Peak District National Park, 137 peak oil, 150 Pearl, Steve, 260 performance anxiety, 17 Perrara, Peter, 223 personality disorders, 17, 189 Petroamazonas, 176 Pew, Joseph N., Jr., 16, 219 Philadelphia General Hospital, 34 Philip Morris, 250 Philo, Greg, 281 pig farming, 114 Piketty, Thomas, 1 Pinochet, Augusto, 3 Pirie, Madsen, 214, 215 Pitt Review, 136 planet-eating machine, 102 plant plankton, 82, 83, 85, 86, 87 play, in children, 43–7 playdate coaches, 20–1 plutocratic power, 2, 6, 24, 213 Podhoretz, John, 230 pointless consumption, 205 political constraint, 24 political elite, 100 political freedom, 5 politics, as bankrolled by big oil and big coal, 157 poll tax, 215 pollution air pollution, 169, 171 from coal, 167, 170 lead pollution, 161, 163 mercury pollution, 170 radioactive pollution, 164 pollution permits, 158 Pontbren, 131, 132 poor blaming of for excesses of the rich, 107 characterised as unthinking beasts, 180 cutting essential services for, 275 effect of raising taxes on, 209 freedom of the rich to exploit the poor, 274 misery inflicted on, 75 as new deviants, 16 power over, 24 punishment of for errors of the rich, 285 shutting of out of healthcare, 287 as trapped in culture of dependency, 179 ultra-rich as deciding very poor are trashing the planet, 106 Poor Law Amendment Act (1834), 181 poor relief, 180, 181, 182 poor-rich men, 22 Pope Benedict XVI, 73, 74, 76 population growth, 103–4, 106 Porritt, Jonathan, 106 Portillo, Michael, 215 possessions, 175 poverty, 179–83 The Power of Market Fundamentalism (Block and Somers), 180 predators, 80–1, 89 pregnancy premarital pregnancy, 60 relationship between sex education and falling rates of unintended pregnancy, 74–5 pre-marital sex, 75 Prentis, Dave, 266 Press Complaints Commission, 224 Private Eye, 244 Proceedings of the National Academy of Sciences, 171 Progressives, 286, 289 property taxes, 278, 281 Protection from Harassment Act (1997), 269 protests injunctions against, 269 as muted, 24 suppression of, 3, 4, 28, 257, 259, 260, 262, 276 proxy life, 24 psychology, applications of advances in, 285–7, 289 Psychology, Crime and Law (journal), 189 public advocacy, 223 Public Library of Science, 196 public places, keeping children and teenagers out of, 67–71 public services, 4, 15, 24, 215, 218, 219, 220, 264, 272, 274, 280 Public Space Protection Orders, 29 public spending, 15, 130 Q Quantock Hills, 107, 109 R The Races of Man (Knox), 234 racism, 163, 234, 239 radioactive pollution, 164 Ramsay, Adam, 273 The Rational Optimist (Ridley), 199, 200 Ratzel, Friedrich, 234 Reader, W.


pages: 261 words: 81,802

The Trouble With Billionaires by Linda McQuaig

"Robert Solow", battle of ideas, Bernie Madoff, Big bang: deregulation of the City of London, British Empire, Build a better mousetrap, carried interest, collateralized debt obligation, computer age, corporate governance, Credit Default Swap, credit default swaps / collateralized debt obligations, Douglas Engelbart, Douglas Engelbart, employer provided health coverage, financial deregulation, fixed income, full employment, George Akerlof, Gini coefficient, income inequality, Intergovernmental Panel on Climate Change (IPCC), invention of the telephone, invention of the wheel, invisible hand, Isaac Newton, Jacquard loom, Joseph-Marie Jacquard, laissez-faire capitalism, land tenure, lateral thinking, Mark Zuckerberg, market bubble, Martin Wolf, mega-rich, minimum wage unemployment, Mont Pelerin Society, Naomi Klein, neoliberal agenda, Northern Rock, offshore financial centre, Paul Samuelson, plutocrats, Plutocrats, Ponzi scheme, pre–internet, price mechanism, purchasing power parity, RAND corporation, rent-seeking, rising living standards, road to serfdom, Ronald Reagan, The Chicago School, The Spirit Level, The Wealth of Nations by Adam Smith, Tobin tax, too big to fail, trickle-down economics, Vanguard fund, very high income, wealth creators, women in the workforce

While the ideas may have been out of vogue, free-market economics remained a cause dear to the hearts of the wealthy, and Hayek easily lined up ample financial support from Swiss industrialist Albert Hunold and members ‌of the Swiss banking elite.21 Flush with cash, Hayek held the inaugural meeting of his forum at the spectacular Swiss mountain retreat of Mont Pelerin in the spring of 1947, attracting the major free-market theorists, including Milton Friedman of the University of Chicago and leading members of the Austrian school Ludwig von Mises and Karl Popper. After a decade of growing support for Keynesianism in official circles and among the public, Hayek was cautious about the prospects for reviving interest in anti-collectivist ideas. He made this clear at the Mont Pelerin Society’s inaugural meeting, pointing out that there were no quick victories ahead. Instead, he set out his vision for a long, slow struggle to discredit Keynesianism and the welfare state. Key to this goal was to enlist the best minds – such as had come together at the Swiss retreat – for a marathon, twenty-year effort ‘concerned not so much with what would be immediately practicable, but with the ‌beliefs which must regain ascendance’.22 While the struggle ahead was indeed a long one, it wasn’t lacking in financial support.

Even during the war years, business funded a number of groups aimed at opposing industrial nationalizations and the drift towards the welfare state, including the Progress Trust, the National League of Freedom, and the Aims of Industry. Also important was an organization called the British United Industrialists, which was established towards the end of the war by Sir William Goodenough, chairman of Barclays Bank, and industrialist Robert Renwick (later Lord Renwick). So while the Mont Pelerin Society was focused on long-term efforts to change the intellectual mindset, these business organizations offered more direct, practical efforts to shape public views and lobby for pro-market choices. Probably most important of all was the network of think-tanks established by British farming entrepreneur Antony Fisher, whom Milton Friedman later credited with being ‘the single most important person ‌in the development of Thatcherism’.23 Inspired by Hayek’s ideas after reading a Reader’s Digest condensation of The Road to Serfdom, Fisher had considered going into politics to promote the free-market cause.

Hayek urged Fisher instead to form an academic research organization ‘to supply intellectuals in universities, schools, journalism and broadcasting with authoritative studies of the economic theory of markets and ‌its application to practical affairs’.24 Fisher followed Hayek’s advice, establishing the Institute of Economic Affairs (IEA), which was to become hugely influential in shaping British public attitudes as the years went on. The IEA set out to spread the gospel developed by Hayek and other doyens of the Mont Pelerin Society. It focused on destroying the power of trade unions, a favourite theme of Hayek’s. Another key focus for the IEA was promoting Milton Friedman’s doctrine of monetarism, a variation of the old monetarist theories from the 1920s that gave priority to controlling inflation over maintaining employment, as the gold standard had done. The IEA also paid tribute to entrepreneurs, and their role in wealth creation.


pages: 388 words: 125,472

The Establishment: And How They Get Away With It by Owen Jones

anti-communist, Asian financial crisis, bank run, battle of ideas, Big bang: deregulation of the City of London, bonus culture, Boris Johnson, Bretton Woods, British Empire, call centre, capital controls, Capital in the Twenty-First Century by Thomas Piketty, centre right, citizen journalism, collapse of Lehman Brothers, collective bargaining, don't be evil, Edward Snowden, Etonian, eurozone crisis, falling living standards, Francis Fukuyama: the end of history, full employment, G4S, glass ceiling, hiring and firing, housing crisis, inflation targeting, Intergovernmental Panel on Climate Change (IPCC), investor state dispute settlement, James Dyson, laissez-faire capitalism, light touch regulation, market fundamentalism, mass immigration, Monroe Doctrine, Mont Pelerin Society, moral hazard, Neil Kinnock, night-watchman state, Northern Rock, Occupy movement, offshore financial centre, old-boy network, open borders, plutocrats, Plutocrats, popular capitalism, profit motive, quantitative easing, race to the bottom, rent control, road to serfdom, Ronald Reagan, shareholder value, short selling, sovereign wealth fund, stakhanovite, statistical model, The Wealth of Nations by Adam Smith, transfer pricing, union organizing, unpaid internship, Washington Consensus, wealth creators, Winter of Discontent

He invited Karl Popper, one of the founders of the Mont Pélérin Society, to come and address his fellow students. Pirie would go on to attend meetings of the Society, too, and in doing so came to know Friedrich Hayek and Milton Friedman. ‘Hayek saw socialism triumphing all over the world in the capitalist democracies as well as the Communist countries,’ recalls Pirie. Three decades after World War II, he remembers, Hayek and Friedman seemed as isolated as ever, linked together out of both conviction and necessity. ‘Each of them, perhaps, was fighting a lone battle in their own university or their own country. But now they would be part of an organization that gave them a sense that they were not alone, that they were part of a movement.’ There was little in the way of optimism among leading members of the Mont Pélérin Society: ‘With the exception of Friedman all of the others were pessimistic.

‘The central values of civilization are in danger,’ read the group’s damning Statement of Aims. ‘Over large stretches of the earth’s surface the essential conditions of human dignity and freedom have already disappeared.’ To these thinkers the roots of the crisis were clear; they had ‘been fostered by a decline of belief in private property and the competitive market’. With the stage set for a generational struggle in defence of an increasingly besieged free-market capitalism, the Mont Pèlerin Society was born. The Society was the brainchild of Austrian-born British economist Friedrich Hayek. As the Nazi empire crumbled at the hands of the Red Army and Western forces, Hayek published a deeply pessimistic indictment of the world he believed had been emerging for a generation or more. The abandonment of laissez-faire economics – or the belief that the state withdrawing itself from economic life was a guarantee of prosperity and freedom – had, he claimed, threatened the very foundations of liberty: ‘We have progressively abandoned that freedom in economic affairs without which personal and political freedom has never existed in the past.’1 Published towards the end of World War II, Hayek’s seminal book The Road to Serfdom was a sensational success.

The prospects for Europe seem to me as dark as possible.’ Hayek and his adherents were ‘reactionaries’ in the truest sense of the word. They aimed to turn the clock back to a supposed golden age that had been swept away by the trauma of economic depression in the 1930s and global war in the 1940s. They were unabashed in describing themselves as ‘old-fashioned liberals’. As Hayek put it to the opening session of the Mont Pélérin Society, one of the chief tasks at hand was to purge ‘traditional liberal theory of certain accidental accretions which have become attached to it in the course of time’.3 Buried in this rather dry academese was a revealing statement about how the members of the Society saw themselves – as the ideologically pure on a mission to cleanse their own corrupted belief system. Until recently, Hayek believed, the West had been ‘governed by what are vaguely called nineteenth-century ideas or the principle of laissez-faire’,4 the model to which he and his followers advocated a return.


pages: 372 words: 92,477

The Fourth Revolution: The Global Race to Reinvent the State by John Micklethwait, Adrian Wooldridge

Admiral Zheng, affirmative action, Affordable Care Act / Obamacare, Asian financial crisis, assortative mating, banking crisis, barriers to entry, battle of ideas, Berlin Wall, Bernie Madoff, Boris Johnson, Bretton Woods, British Empire, cashless society, central bank independence, Chelsea Manning, circulation of elites, Clayton Christensen, Corn Laws, corporate governance, credit crunch, crony capitalism, Deng Xiaoping, Detroit bankruptcy, disintermediation, Edward Snowden, Etonian, failed state, Francis Fukuyama: the end of history, full employment, Gunnar Myrdal, income inequality, Khan Academy, Kickstarter, knowledge economy, Kodak vs Instagram, labor-force participation, laissez-faire capitalism, land reform, liberal capitalism, Martin Wolf, means of production, minimum wage unemployment, mittelstand, mobile money, Mont Pelerin Society, Nelson Mandela, night-watchman state, Norman Macrae, obamacare, oil shale / tar sands, old age dependency ratio, open economy, Parag Khanna, Peace of Westphalia, pension reform, pensions crisis, personalized medicine, Peter Thiel, plutocrats, Plutocrats, popular capitalism, profit maximization, rent control, rent-seeking, ride hailing / ride sharing, road to serfdom, Ronald Coase, Ronald Reagan, school choice, school vouchers, Silicon Valley, Skype, special economic zone, too big to fail, total factor productivity, War on Poverty, Washington Consensus, Winter of Discontent, working-age population, zero-sum game

He also believed that an elite of farsighted thinkers could change the entire climate of ­opinion through “permeation.” The trick was to reeducate the broad ­intelligentsia—the people whom he memorably dubbed the “second-hand dealers” in ideas—and to build think tanks that could apply free-market principles to practical problems as they emerged: not just when the mood took them but day after day and decade after decade. In 1947 Hayek helped found the Mont Pelerin Society to bring the global vanguard together. Mont Pelerin was in the Swiss Alps, but the future of the coun­terrevolution lay across the Atlantic. America had a much stronger ­tradition of individualism than Europe—and far more money for foundations and journals. The Road to Serfdom sold better in the United States than anywhere else—indeed, the Reader’s Digest condensed and serialized it—and in 1950 Hayek moved from the London School of Economics to the University of Chicago.

“Good God, don’t call me that,” he once said when he was asked if he was a conservative. “The conservatives are the New Dealers like [John Kenneth] Galbraith who want to keep things the way they are.” He viewed himself as a “philosophical radical” in the same mold as John Stuart Mill and Jeremy Bentham. The same was true of Hayek, who often wrote an essay called “Why I Am Not a Conservative.” When Russell Kirk, a Burkean conservative, visited the Mont Pelerin Society in the late 1940s, he complained that it might just as well have been called “the John Stuart Mill Club” or “the Jeremy Bentham Memorial Association.”6 Friedman once paid Margaret Thatcher the ultimate compliment in dubbing her a “nineteenth-century liberal.” What Hayek and Friedman succeeded in doing was reinventing that old doctrine for a different age. But if the cause was the same, Friedman and the Chicago boys were very different from Hayek and the Austrians.

., 1906), 72 Medicaid, 242 Medicare, 120, 123, 242 Medisave, 243 mercantilism, 40 Merkel, Angela, 12, 16, 230, 231 Mettler, Suzanne, 121 micro-powers, 260, 266 middle class, 124 entitlements and, 11, 17 government spending and, 11 as primary beneficiary of welfare state, 122 welfare state and, 17, 88 Middle East: China and, 152 failure of democracy in, 253 local government in, 217 Miliband, Ed, 114, 153 Milken, Michael, 129 Mill, James, 47, 48–49, 53, 140 Mill, John Stuart, 7, 9, 21, 27–28, 69, 80, 85, 135, 136, 219, 251, 255 background of, 47 expanded role of government embraced by, 56–57 freedom as overriding concern of, 47–48, 55, 222, 224, 226, 228, 250, 256, 268 free trade promoted by, 55 intellectual freedom as tenet of, 55 meritocracy promoted by, 53, 237 as public intellectual, 47 Mindlab, 220 Mises, Ludwig von, 83 Mississippi, 111 Modi, Narendra, 218 Moïsi, Dominique, 166 money politics, 256–58 Montefiore Medical Center, 209 Monti, Mario, 259 Mont Pelerin Society, 83, 85 Moody’s, 119 Morrill Act (U.S., 1862), 62 Morsi, Mohamed, 253 Moynihan, Daniel Patrick, 89 Mubarak, Hosni, 144, 253 Muggeridge, Malcolm, 67 Mughal Empire, 36 Mulgan, Geoff, 132 Musacchio, Aldo, 153 Muslim Brotherhood, 144, 253 Mussolini, Benito, 252 Myrdal, Alva, 169, 170 Myrdal, Gunnar, 37, 169, 170 Naím, Moisés, 186, 260, 266 Nanjing, 35 Napoléon I, Emperor of the French, 46 Narayana Hrudayalaya Hospital, Bangalore, 201 National Audit Office, British, 199 National Education Association, 114 National Front, French, 259 National Health Service, British, 62, 82, 109, 183, 199, 205 spending on, 130–31 National Health Service Act (British, 1948), 75 National Institute for Health and Care Excellence (NICE), 243 National Insurance Act (British, 1946), 75 National Journal, 256 National Labor Relations Board, 73 national minimum, 68, 69 National Statistics Office, British, 19, 177 nation-state, 6, 8, 221 commerce and, 33 democracy and, 259, 262 globalization and, 259–60, 262 government efficiency in, 37 innovation and, 37, 39 legitimacy of, 33 local-government resistance to, 260 minimal welfare vote of, 33 representative institutions in, 38 rights of citizens in, 30, 43–44 rule of law in, 37–38 security as primary duty of, 29, 30, 32, 37, 39, 181, 222, 268 Navigation Acts, 50 Nazis, 71, 232 neoconservatives, 89 Netherlands, government spending in, 75 New Brutalism, 89 New Deal, 72, 82, 192, 236 New Digital Age, The (Schmidt and Cohen), 210–11 New Labourites, 94–95, 99 Newnham College, 58 New Republic, 71 New Statesman, 67 Newsweek, 86 New York Daily News, 227 New Zealand, 239 Niebuhr, Reinhold, 265 Nigeria, 234 night-watchman state, 7, 9, 48, 61, 80, 86, 101, 136, 140, 181, 232 1984 (Orwell), 71 Nixon, Richard, 77 Nobel Prize, 82, 86, 91 Nock, Albert Jay, 177 nongovernmental organizations (NGOs), Chinese, 158 Northcote, Stafford, 52–53 Norway, 1990s financial crisis in, 176 Novey, Don, 112–13, 181 Nye, Joseph, 3, 198 Obama, Barack, 100, 126, 192, 236, 241, 255, 256 big-government ideology of, 98 health-care reforms of, 20, 98, 117, 199, 208, 217 pragmatism of, 98, 220 Obama administration, 220, 231 regulation and, 117 occupational legislation, 117–18 O’Donnell, Christine, 227–28 OECD (Organization for Economic Cooperation and Development), 186 Office of Social Innovation and Participation, U.S., 220 “Old Corruption,” 6, 49, 51, 58, 149, 185, 227, 256, 268, 269 Oldham, John, 195 Olivares, Count-Duke, 37 Olson, Mancur, 109–10, 111 Olson’s law, 111–15, 117, 124, 237 On Liberty (Mill), 55, 59, 69 Open Society and Its Enemies, The (Popper), 83 Open University, 180 opinion, freedom of, 224 Orban, Viktor, 254 Organization for Economic Cooperation and Development (OECD), 186 Ornstein, Norman, 125–26, 227 Orwell, George, 71 Ottoman Empire, 35 Our Enemy, the State (Nock), 177 Packard, David, 105 Paine, Thomas, 21, 43–44 Pall, Niti, 206 Palme, Olof, 170, 175 Palo Alto, Calif., 105, 106 Papademos, Lucas, 259 Parag, Khanna, 218 Parliament, British, 31, 43 Party, The (McGregor), 151 Party for Freedom, Dutch, 259 patronage, 50, 52–53, 222, 237, 240 Paul, Ron, 34 payroll withholding tax, 82 Peace Corps, 216 Peace of Westphalia (1648), 38 Pearson, Karl, 68 Peel, Robert, 51, 54 pensions, 16, 267 Asian expansion of, 141–42 in Brazil, 18 in California, 113, 115, 119–20, 130 in China, 156, 183 defined-benefit vs. defined-contribution systems of, 184 as entitlements, 79, 184, 243 in Scandinavia, 171, 173, 184 spiking of, 184 as unfunded liabilities, 14, 119 People’s Action Party, Singapore, 134, 137–38 Peterson, Pete, 131 Peterson Foundation, 255 Peterson Institute for International Economics, 154 PetroChina, 152, 154, 155 Philippines, health insurance in, 141 Philippon, Thomas, 239 philosophical radicals, 48, 49, 85, 181 physician’s assistants, 204 Plato, 250, 255, 260, 264 pluralism, 211–14 police, technology and, 181–82 Political Economy (Mill), 57 political parties, declining membership in, 11, 261 politics: government bloat and, 10–11 money in, 256–58 polarization of, 11–13, 100, 124–27, 164, 255, 256 talent flight from, 127 Pomperipossa effect, 170 poor, poverty: failure of welfare state programs for, 87–89 public spending as biased against, 122–24 welfare state and, 68 Popper, Karl, 83 population: aging of, 15, 122–23, 124, 165, 174, 178, 183–84, 232, 241–42 urban shift of, 149, 218 Porter, Michael, 131 Portugal, public spending in, 99–100 Potter, Laurencina, 65–66 Potter, Richard, 65 Principles of Political Economy (Mill), 55 Pritchett, Lant, 147 private life, freedom of, 224 privatization, 8, 94, 96, 234–37 Procter & Gamble, 190 productivity, 178 Baumol’s disease and, 110 in public vs. private sectors, 18–20, 177, 285 state capitalism and, 154 Programme for International Student Assessment (PISA), 148, 206–7 Progressive Party, 72 progressivism, 240 as self-defeating, 229–30 property rights, 40, 43, 224 Proposition 13, 91, 92, 107 Protestants, 38 public sector, 76, 89, 115, 177, 180 technology and, 180 Pudong, China, 1–5, 8 Pune, India, 218–19 Pure Food and Drug Act (U.S., 1906), 72 Putin, Vladimir, 144, 153, 253 Pythagorean theorem, 31 Qianlong, Emperor of China, 41 racism, 88 Rauch, Jonathan, 231 Reagan, Ronald, 8, 28, 88, 91–92, 97, 198 Friedman and, 86 small-government ideology of, 95 see also Thatcher-Reagan revolution reason, religion as opponent of, 48 Reform, 203 Reformation, 48–49 Reinfeldt, Fredrik, 184 religion: freedom of, 224 reason as opponent of, 48 rent control, 82 rent seeking, 239 “Report on Manufacturers” (Hamilton), 150 Republic, The (Plato), 250 Republican Party, U.S., 123, 236–37 increased taxes opposed by, 100, 255 tax rises approved by, 12 Reshef, Ariell, 239 retirement age, 184–85, 242 Reykjavik City Council, 261 Ricardo, David, 49 Richelieu, Cardinal, 37 Right, 82, 93 government bloat and, 10–11, 98 government efficiency and, 187 and growth of big government, 10, 95, 98, 228, 230–31 privatization and, 234, 236–37 welfare services opposed by, 88, 185 rights: Fourth Revolution and, 270 liberal state’s expansion of, 7, 48, 49, 51 in nation-state, 30, 43–44 of property, 40, 43, 224 protection of, as primary role of liberal state, 45 see also freedom Rights of Man, The (Paine), 44 Ripley, Amanda, 206–7 road pricing, 217 Road to Serfdom, The (Hayek), 10, 83, 86 Rodrik, Dani, 262 Romney, Mitt, 217 “Roofs or Ceilings” (Friedman), 82 Roosevelt, Franklin Delano, 72–73, 252 Roosevelt, Theodore, 71–72, 258 rotten boroughs, 51, 125, 227, 251, 257, 269 see also gerrymandering Rousseau, Jean-Jacques, 44, 45 Rousseff, Dilma, 153 Royal Society, 42 Rumsfeld, Donald, 77, 253 Russia, 71 China and, 152 corruption in, 186 failure of democracy in, 253, 262 privatization in, 96 Singapore model admired by, 144 state capitalism in, 153, 154 Russian Revolution, 45 Rwanda, 144 Sacramento, Calif., 105, 106, 127 Sahni, Nikhil, 200 St.


Money and Government: The Past and Future of Economics by Robert Skidelsky

anti-globalists, Asian financial crisis, asset-backed security, bank run, banking crisis, banks create money, barriers to entry, Basel III, basic income, Ben Bernanke: helicopter money, Big bang: deregulation of the City of London, Bretton Woods, British Empire, business cycle, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, central bank independence, cognitive dissonance, collapse of Lehman Brothers, collateralized debt obligation, collective bargaining, constrained optimization, Corn Laws, correlation does not imply causation, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, David Graeber, David Ricardo: comparative advantage, debt deflation, Deng Xiaoping, Donald Trump, Eugene Fama: efficient market hypothesis, eurozone crisis, financial deregulation, financial innovation, Financial Instability Hypothesis, forward guidance, Fractional reserve banking, full employment, Gini coefficient, Growth in a Time of Debt, Hyman Minsky, income inequality, incomplete markets, inflation targeting, invisible hand, Isaac Newton, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Joseph Schumpeter, Kenneth Rogoff, labour market flexibility, labour mobility, law of one price, liberal capitalism, light touch regulation, liquidationism / Banker’s doctrine / the Treasury view, liquidity trap, market clearing, market friction, Martin Wolf, means of production, Mexican peso crisis / tequila crisis, mobile money, Mont Pelerin Society, moral hazard, mortgage debt, new economy, Nick Leeson, North Sea oil, Northern Rock, offshore financial centre, oil shock, open economy, paradox of thrift, Pareto efficiency, Paul Samuelson, placebo effect, price stability, profit maximization, quantitative easing, random walk, regulatory arbitrage, rent-seeking, reserve currency, Richard Thaler, rising living standards, risk/return, road to serfdom, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, secular stagnation, shareholder value, short selling, Simon Kuznets, structural adjustment programs, The Chicago School, The Great Moderation, the payments system, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, too big to fail, trade liberalization, value at risk, Washington Consensus, yield curve, zero-sum game

The debate, as we can see, was about a fundamental question: was Keynesianism (and, more broadly, social democracy) an antidote to totalitarianism or the thin end of the wedge? Here one can say that Keynes won the major argument, but lost the minor one. Keynesianism as a policy nowhere led to serfdom, but it did lead to inflation. I V. Mon e ta r ism The Road to Serfdom was the inspiration for the Mont Pelerin Society founded by Hayek in 1947. An early member of the society was Milton Friedman. Friedman was not in the business of synthesis, but of counter-revolution. He attacked Keynes’s doctrines in order to demonstrate the futility of Keynesian policies. He recalled that: 176 t h e t h e ory a n d p r ac t ic e of mon e ta r i sm During my whole career, I have considered myself somewhat of a schizophrenic . . .

., 59 Callaghan, James, 169–70, 197 Cameron, David, 221, 225, 227 Cannan, Edwin, 100 capital movements and banking crises, 331, 333, 333–43, 334, 335, 337 controls on in post-war era, 308, 332 hot money as main story, 318–19, 337, 382 Keynes on, 382 liberalization from 1970s, 17, 318–19, 332–3 post-war liberalization, 16 recycling of OPEC surpluses (1970s), 308, 332 regulated in Great Depression era, 16 see also global imbalances 464 i n de x Carney, Mark, 261–2, 273 central banks actions during 2008 crisis, 3, 217, 219, 234–5, 253–4, 254, 256–8, 359 forecasting models, 5, 197, 233, 310–11 ‘dual mandate’ proposal, 358 during Great Moderation, 215, 252–3, 310, 359, 360 independent, 1, 32, 43, 129, 140, 188, 198, 215, 249, 272–3 inflation targeting, 2, 101, 188–9, 189, 196, 215, 249–53, 347, 358 in Keynesian economics, 101, 102–4, 105, 115–16 need for revived regulatory tools, 361 in new macroeconomic constitution, 352, 355, 359–61 open-market operations, 71, 102–4, 105, 185–6, 257–8 in post-W W1 period, 100, 102–6 pre-crash models of 2000s, 197, 212–13, 233, 310–11 purchase of government debt, 234–5, 256–8, 260–61, 274 and quantity theory, 61, 69, 70, 71 ‘resolution regimes’, 364–5 ‘stress testing’ by, 364 Taylor Rule, 213, 251 and twentieth-century monetary reformers, 60, 61, 69, 70, 71, 99, 100, 101, 125, 129, 178, 200 see also Bank of England; Bank Rate; European Central Bank; Federal Reserve, US Chamberlain, Neville, 113 Chang, Ha-Joon, 378 Chartist movement, 48 Chi Lo, 381–2 Chicago School, 174, 194, 349, 350–51 see also Friedman, Milton China and 2008 crash, 217, 218 ancient, 33, 73 bank liquidity ratios, 364 current account surplus, 331, 333, 334, 336, 338–41, 342, 380, 381 Churchill, Winston, 99, 109, 110 City of London, xviii, 58, 113, 226, 328, 367 Clark, John Bates, 288 class business class as not monolithic, 7 creditors and debtors, 29–32, 37 growth of merchant class, 79 and ideas, 13–14 and Keynesian theory, 128–9, 130–31, 169–70, 386–7 and Marx, 6, 7, 14, 130, 131, 288, 296, 386 and neo-liberal model, 305, 374 rentier bourgeoisie, 31, 43, 288, 297 shift of power from labour to capital, 7, 32, 169–70, 187, 190, 192–3, 299–301, 304, 305–6 and theory of money, 27–8 under-consumption theory, 293–6, 297–8, 303–6, 370 see also distribution; inequality classical economics tradition, xviii abstraction from uncertainty, 385–6 ‘anti-state’ view as deception, 93 contrast with Keynesian-theory modelled, 132–3 ‘crowding out’ argument, 83–4, 109–11, 226, 233–5 government as problem not solution, 1, 3, 6, 9, 10, 29, 74–5, 76, 82–3, 85–7, 93, 347 and Keynes, 122–3, 128, 130, 175–6 and labour flexibility, 56, 245 money supply in, 1, 38–9, 47 no theory of output and employment, 96 465 i n de x classical economics tradition – (cont.) post-W W1 ‘back to normalcy’, 96–7, 102 and price of labour, 107, 108, 115, 121–2, 123, 128, 130, 132, 138, 172 ‘real’ analysis of money (‘money as veil’), 22, 24, 37, 45, 84–5, 121 repudiation of mercantilism, 74–5, 78, 79, 81–5, 93 and role of state, 73, 74–5, 76, 81–5, 109, 110 Smith’s ‘invisible hand’ metaphor, 10, 312, 385 and unemployment, 10, 37, 56, 96, 118, 121–2, 123, 128, 129, 130, 138, 172 wage-adjustment story, 107, 108, 115, 121–2, 123, 128, 130, 132, 172 Walras’ general equilibrium theory (1874), 10, 173, 181, 385 see also balanced budget theory; equilibrium, theory of; neoclassical economics tradition Clay, Henry, 115 climate change, 383 Clinton, Bill, 309, 319 Coalition government (2010–15), 227–8, 243–4, 265–6 Cochrane, John, 233–4 Coddington, Alan, 173 Colbert, Jean-Baptiste, 75, 140 Cold War, 140, 158, 159, 162–3, 186, 374 collateralized debt obligations (CDOs), 323–4, 327, 330 collateralized loan obligations (CLOs), 327 communism, xviii, 13, 16, 175 collapse of (1989–90), xviii, 16 see also Marx, Karl; Marxism Congdon, Tim, 40, 105, 185, 197, 258, 268–9, 276, 279–81 on free trade, 377 and monetarism, 279–85 Money in the Great Recession (2017), 281–2, 287 ‘real balance effect’ argument, 283–5 total rejection of fiscal policy, 280, 285–7 Conservative Party ‘Barber boom’, 167, 168 governments (1951–64), 142–3, 147, 150, 152 Howe’s 1981 budget, 186–7, 192 and Keynesian ascendancy, 138–9, 142–3, 147, 150, 152 Lawson’s counterrevolution, 185, 192–3, 222, 358 Maudling’s ‘dash for growth’, 150, 152 narrative of 2008 crash, 226–8, 229–31, 233, 234–5, 237–9 and orthodox Treasury view in 1920s/30s, 109–10, 112, 113 Osborne’s economic policy, 227–8, 229–30, 231, 233, 234–5, 237–9, 243–4, 244, 245 supply-side policies, 197 Constantini, Orsola, 171 Corn Laws, repeal of (1846), 15, 85 counter-orthodoxy to Keynesianism ‘Colloque Walter Lippmann’ conference (1938), 174–5 emergence of, 163, 170, 171–2, 174–8 Friedman’s onslaught, 177–83 Hayek’s Road to Serfdom , 16, 175–6 inflation as greatest evil for, 162 Mont Pelerin Society, 176–7 rooted in political ideology, 6, 93, 176–8, 183–4, 202–3, 245–6, 258, 287, 292, 354, 386 see also Friedman, Milton; monetarism; neo-liberal ideology 466 i n de x Crafts, Nicholas, 85, 111 credit and debt and anti-Semitism, 30–31 ‘bank lending channel’, 64 credit theory of money, 23, 24–7, 33, 34, 39, 100–101, 102–3 ‘debt forgiveness’, 30 derivation of word ‘credit’, 30 doctrine of ‘creditor adjustment’, 127–8, 139, 159 excess credit problem and 2007–8 crisis, 4, 104, 303, 366–7 and gold-standard, 53 ‘hoarding’ during Great Depression, 104, 127 and inflation/deflation, 37, 42, 47 Keynes and control of credit, 100–101, 102–3, 105, 115–16 Keynes’ Clearing Union plan (1941), 127–8, 139, 159, 380–81 loan sharks and ‘pay day loans’, 32 Locke’s social contract theory, 41–2 moral resistance to credit, 30–31 private debt and 2008 collapse, 3–4 prohibition of usury, 31 USA as post-W W1 creditor, 95, 103 and value of money, 27–8, 29–31 see also national debt credit default swaps (CDSs), 324–5 credit rating agencies (CR As), 320, 326–7, 329–30 Crimean War, 91 criminality, 3, 4, 5, 7, 328, 350, 366, 367 Cunliffe Report (1918), 54–5, 102, 145 Currency School, 49–50 current account imbalances see balance of payments; global imbalances Dale, Spencer, 275 Dante, Divine Comedy, 31 Darling, Alistair, 224, 225, 254 Dasgupta, Amir Kumar, 12–13 Davies, Howard, 253 de Grauwe, Paul, 341, 376, 377 debt see credit and debt; national debt deflation ‘Austrian’ explanation of recessions, 33, 104, 303 classical view of, 44 contemporary, 358, 360 and debtor class, 37 depressions in later nineteenthcentury, 9, 15, 51–2, 89 at end of Napoleonic wars, 48 and hoarding, 64, 104 in inter-war Britain, 107–8 and quantity theory, 32–3, 60, 65, 66 US ‘dollar gap’, 159 DeLong, Brad, 225 democratic politics Bretton Woods system, 16, 139, 374 corrupted capitalism as threat to, 351, 361 election finance, 7 EU ‘democratic deficit’, 376 extensions of franchise, 87, 96, 100 neo-liberal capture of, 6, 292 political left in 1960s, 148–9, 150 and ‘public choice’ theory, 198–9 Rodrik’s ‘impossible trinity’, 375 social democratic state, 16, 149, 176, 198, 292, 293, 303–4, 348, 373–4 structural power of finance, 6–7, 309 taboos against racism, 383 twentieth-century triumph of, 32, 96 unravelling of social democracy (1970s), 16, 304 467 i n de x Democrats, American, 151, 152 Descartes, Rene, 22 developing countries and 2008 crash, 217 Keynesian era growth, 162 in monetarist era, 186 ‘neo-liberal’ agenda of IMF, 139, 181, 318–19 ‘peripheries’ in gold standard era, 56–7 and promise of globalization, 17 and protectionism, xviii, 90, 378 World Bank loans to, 332 Devine, James, 298 Dicey, A.

., 179 Erie Canal, 90 Eshag, Eprime, 71 European Central Bank, 139, 188, 198, 217, 242–3, 253, 254, 361 institutional constraints on, 50, 234, 242, 249, 274–5 misreading of Eurozone crisis, 275 quantitative easing (QE) by, 273–4 on ‘stress testing’, 364 taxing of ‘excess’ reserves, 266 use of LTROs, 257 European Commission, 139, 3612, 365 European Exchange Rate Mechanism, 188 European Investment Bank, 354 European Union (EU, formerly EEC), 153, 318, 379, 383 Financial Stability Board (FSB), 363 ‘Four Freedoms’, 375 lack of state, 376 Single Resolution Board, 365 Eurozone current account imbalances, 333, 334, 335, 336–7, 341–2 Juncker investment programme, 274 proposed European Monetary Fund, 376, 382 structural flaw in, 341, 375–7 two original sins of, 274, 376–5 Eurozone debt crisis (2010–12), 50, 223, 377, 382 and double-dip recession, 241, 242–3, 274 ECB’s misreading of, 275 and financial crowding-out theory, 234 and Greece, 32, 224, 224–5, 226, 233, 235, 242–3, 243, 365 and ‘troika’, 32, 139, 243 469 i n de x exchange-rate policy, 127–8, 139 and Congdon’s ‘real balance effect’, 285 and domestic interest rates, 251 fixed rates under Bretton Woods, 16, 159, 161, 162, 168 floating rates from 1970s, 16–17, 184 and Friedman, 182 IMF ‘scarce currency’ clause, 380–81 Nixon’s dollar devaluation (1971), 153, 154, 165 and quantitative easing, 267, 267 sterling crisis (1951), 145 sterling devaluation (November 1967), 152 sterling-dollar peg (from 1949), 148, 150, 152 sterling/franc/deutschmark devaluations (1949), 152 ‘Triffin paradox’, 161, 165 ‘expansionary fiscal consolidation’, 192, 225, 231 Fabian socialism, 96 Fama, Eugene, 208, 311–12, 313 Fanny Mae, 217, 256, 309, 320 fascism, 13, 98, 131, 175 Federal Reserve, US and 2008 crash, 50, 217, 254, 256 AIG bail-out (2008), 325 Federal Open Market Committee (FOMC), 185–6 and Great Depression, 104–6 inflation targeting, 188 and monetarism, 185–6, 188 monetary policy in 1950s, 146 ‘Operation Twist’, 268 quantitative easing (QE) by, 256–7, 273–4 ‘Reserve Position Doctrine’ (1920s), 103–4 and under-consumption theory, 298 Ferguson, Niall, 73, 79, 80, 91 financial collapse (2007–8) acute phase, 218–20, 223 ‘Austrian’ explanation, 104, 303 banks as proximate cause, 343, 361, 365 Bear Stearns rescue, 217 British analogies with Greece, 235 British debate after, 225–8 causes of, 3–4, 343–4, 365, 366, 368 central bank responses, 3, 217, 219, 234–5, 253–4, 254, 256–8, 359 comparative recovery patterns, 241–4, 242, 273, 273–4 compared to 1929 crash, 218 Conservative narrative, 226–8, 229–31, 233, 234–5, 237–9 and crisis of conservative economics, 17 and embedded leverage, 318, 322, 325 five distinct stages of crisis, 216–19 ‘global imbalances’ explanation, 11, 331, 333, 336–43, 337 government responses, 3, 217–18, 219–20, 221–36, 237–47 Hayekian view of cause, 303 hysteresis after, 239–41, 240, 241, 370 inequality as deeper cause of, 299–306, 368 Lehman Brothers bankruptcy, 3, 50, 217, 365 leverage (debt to equity) ratios on eve of, 317–18 liquidity-solvency confusion, 317 outbreaks of populism following, 13, 371–3, 376, 383 post-crash deficit, 226–33, 229, 237–8 private debt as proximate cause, 3–4 470 i n de x stagnation of real earnings as deep cause, 4, 303, 367 standard account of origins of, 3–4 as test of two theories, 2–3, 76 theoretical and policy responses, 10, 129, 219–20, 223–36, 237–47 see also austerity policy and under-consumption theory, 303–6 US sub-prime mortgage market, 3, 216, 304–5, 309, 323, 328, 341 see also Great Recession (2008–9) Financial Services Authority, U K, 321–2, 330 financial system and causes of 2008 collapse, 3, 4–5, 253, 307–9, 361 and crisis of conservative economics, 17 deregulation, 307–9, 310–16, 318–22, 328, 332–3, 384 East Asian financial crisis (1997–8), 202, 339, 371, 382 ‘Efficient Market Hypothesis’ (EMH), 311–13, 321–2, 328, 388 ‘financialization’ of the economy, 5, 305, 307–9, 366–7 fraud and criminality, 3, 4, 5, 7, 328, 350, 365–6, 367 and free-market orthodoxy, 5, 308–16 loosening of moral restraints, 319 mark-to-market (M2M) framework, 314 offshore euro-dollar market, 308, 332 privatised gain and socialised loss, 319–20 released from national regulation (1980s/90s), 131, 318–22 structural power of finance, 6–7, 14, 309 systemic under-estimation of risk, 314–16, 316*, 320–22, 323, 329–30 Thatcher’s Big Bang (1980s), 319 tradable public debt instruments, 43, 80–81 Turner’s ‘financial intensity’ concept, 366 unrealism of assumptions, 310–16 value at risk (VaR) framework, 314–15, 315, 330 ‘Washington consensus’ deregulation, 198, 200 see also banks FinTech, 356 First World War, 86, 95, 106–7, 374, 375 ‘fiscal consolidation’, 10–11, 129, 225 Darling’s plan (2009), 225–6 ‘expansionary’, 192, 225, 231 and Osborne, 227–8, 229–30, 231, 233, 237–9, 243–4, 244, 245 fiscal policy and 2008 collapse, 10, 217–18, 219–20, 223–36, 265–6, 273–4, 286 ‘Barber boom’, 167, 168 during Blair-Brown years, 221–4, 223, 225–6, 227 British experience (1692–2012), 77 Congdon’s total rejection of, 280, 285–6 ‘crowding out’ argument, 83–4, 109–11, 226, 233–5 current and capital spending, 107–8, 114, 142, 155–6, 193, 221–3, 237–8, 355–7 directing flow of new spending, 286–7 fiscal multiplier, 110–11, 125–6, 133–6, 138, 230–31, 233, 235, 244–5 471 i n de x fiscal policy – (cont.) in inter-war Britain, 106–17 and Keynesian economics, 2–3, 109, 111, 114–17, 125–7, 129–31, 133–4, 137–8, 173, 278 Keynesian full employment phase (1945–60), 141–8 Krugman’s ‘confidence fairy’, 117 Lawson counterrevolution, 185, 192–3, 222, 358 legacy of monetarism, 190–93 May Committee (1931), 112 national income accounts, 138 New Classical view of, 200 in new macroeconomic constitution, 351–2, 355–7, 360–61 nineteenth-century theory of, 9, 29 post-Keynesian disablement of, 193, 221, 258, 304, 328 pre-crash orthodoxy, 221–2, 223–4, 230–31 Public Sector Borrowing Requirement (PSBR), 155–6 see also balanced budget theory; public investment; taxation Fisher, Irving, 9, 52, 61, 99, 280 ‘compensated dollar’ scheme, 66 equation of exchange, 62–4, 71–2, 258, 278–9, 283, 284, 287 QTM formulation, 62–7, 71–2 and quantitative easing, 258, 278–9 Santa Claus money, 62–4, 258, 278–9 Fitch (CR A), 329 France assignats in 1790s, 64–5 and gold standard, 50, 102, 104, 127 ‘indicative planning’ system, 150 ‘physiocrats’in, 81 protectionism in late nineteenthcentury, 59 state holding companies, 356 statism in, 140, 144 university campus revolts (1968), 164 Freddie Mac, 217, 256, 309, 320 free trade, xviii, 9, 58–9, 76, 79, 81–2 abandoned in Britain (1932), 113 general presumption in favour of, 377 and Hume’s ‘price-specie-flow’ mechanism, 37–8, 53, 54, 104, 332 and Irish potato famine, 15 List’s ‘infant industry’ argument, 88–9, 90, 378–7 and nationalist–globalist split, 371–3 and post-war liberalization, 16, 374 and presumption of peace, 379 repeal of Corn Laws (1846), 15, 85 Ricardo’s doctrine of comparative advantage, 88, 378, 379, 379 US conversion to (1940s), 90 Freiburg School, 140 Friedman, Milton adaptive expectations theory, 180–81, 183, 194, 206–11 and Cartesian distinction, 22 as Fisher’s heir, 278 The Great Contraction (with Schwartz; 1865), 105 idea of ‘helicopter money’, 63 and monetary base, 185, 280 and Mont Pelerin Society, 176–7 and ‘natural’ rate of unemployment, 163, 177, 181, 195, 206, 208 onslaught on Keynesianism, 170, 174, 177–83, 261 ‘permanent income hypothesis’ (1957), 178, 183 and Phillips Curve, 38, 180–81, 194, 206–8, 207 472 i n de x policy implications of work of, 182–3 political motives of, 177, 183–4 and quantity theory, 61, 70, 177–9, 182, 183, 194 ‘stable demand function for money’, 179 view of Great Depression, 104–6, 179, 183, 256, 276, 278 weaknesses in arguments of, 183 Frydman, Roman, 389 Fullarton, John, 49 Funding for Lending programme, 265–6 G20 Financial Stability Board, 363 summits (2009/10), 219–20, 223, 225 G7 finance ministers meeting (February 2010), 224–5 Galbraith, James, 303, 361 game theorists, 389 Gasperin, Simone, 357* Geddes, Sir Eric, 108 German Historical School, 88–9 Germany and 2008 crash, 217, 218, 243 current account surplus, 333, 334, 341, 342, 380, 381 employer–union bargains, 147, 167 and Eurozone crisis, 341, 365, 376, 377 and Great Depression, 97, 111, 129–30 growth Keynesianism (1960–70), 153–4 high growth rates in 1950/60s, 149, 156 Hitler’s reduction in unemployment, 111, 112, 129–30 hyperinflation of early 1920s, 275 as Keynesian in 1960s, 140 nineteenth-century expansion and unification, 89, 91 ‘ordo-liberalism’ in, 140 post-war modernization/catch-up, 156–7 protectionism in late nineteenthcentury, 59 return to gold standard (1924), 102 ‘Rhenish capitalism’ model, 154 Giffen, Robert, 51 Giles, Chris, 219, 302 Gini coefficient, 299, 300 Gladstone, William, 42–3, 86 Glass–Steagall Act (1933), 319, 361, 362 global imbalances basic theory of, 335–6 and capital account liberalization, 318–19 capital flight, 59, 334, 337, 341, 343 Eurozone see Eurozone: current account imbalances as explanation for 2007–8 crash, 11, 331, 333, 336–43, 337 and financial deregulation, 318–19, 332–3 and First World War, 95 increases in pre-crash years, 333, 333–4, 334, 335 problematic nature of, 333–4 reserve accumulation, 336, 337–41 ‘saving glut’ vs ‘money’ glut, 338–41, 342 structural causes still in place, 344 US dollar as main reserve currency, 338 global warming, 383 globalization, 17, 300, 334–5 absence of the state, 350, 373, 375–6 anti-globalist movements, 371–2, 373 first age of, 51, 55, 57, 59, 374, 375 473 i n de x globalization – (cont.) future of, 382–4 Geneva and Seattle protests (1998/99), 371 and inflation rate, 252–3 and lower wages in developed world, 252–3, 300, 379 nationalist-globalist split, 371–3 ‘neo-liberal’ agenda of IMF, 139, 181, 318–19 popular protest against, 351, 371–2 resurgence of after Cold War, 374 Rodrik’s ‘impossible trinity’, 375 gold, 23, 24, 25, 28, 35, 37 new gold production, 51, 52, 55, 62 gold standard, xviii, 1, 9, 27, 29, 338 and Britain, 9, 42, 43, 44, 45–50, 53, 57–9, 80, 101, 102, 113 collapse of US exchange standard (1971), 160, 165 commitment to convertibility, 55–6 and Cunliffe model, 54–5, 102 depressions in later nineteenthcentury, 51–2 dysfunctional after First World War, 95, 97 final suspension in Britain (1931), 113, 125 Fisher’s ‘compensated dollar’ scheme, 66 Hume’s ‘price-specie-flow’ mechanism, 37–8, 53, 54, 104, 285, 332 and international bond markets, 92 as international by 1880s, 50–52 Keynes on, 58, 101, 127 Kindleberger thesis, 58–9 move to ‘managed’ system, 71, 99–100 replaces silver standard (1690s), 42, 43 restored (1821), 48 return to in 1920s, 102, 104, 107 suspension during Napoleonic wars, 43, 45–7 suspension of convertibility (1919), 101–2 triumph of by mid-nineteenthcentury, 44, 50 working and design of, 52–9 as working in tandem with empire, 57, 58 Goldberg, Michael D., 389 Goldman Sachs, 315 Goodhart, Charles, 168, 187 Graeber, David, 28 Great Depression (1929–32), 9, 13, 96, 97–8, 110–13, 127 compared to 2008 crash, 218 Friedman-Schwartz view, 104–6, 179, 183, 256, 276, 278 impact on US policy-makers in 2008 period, 256, 275, 278 left-wing explanations of, 298 rise in inequality in lead-up to, 289 and second wave of collectivism, 15–16 Great Moderation (early 1990s–2007), 4, 53, 202, 278 economic problems during, 348 financial deregulation during, 318–22, 328 financial innovation during, 322–8 and independent central banks, 215 inflation during, 106, 215, 216, 252–3, 253, 348, 359, 360 international financial network, 309, 318–28 output growth during, 215, 253, 348 Great Recession (2008–9), xviii Congdon’s view of, 281–2, 287 co-ordinated global response, 219–20, 383 decline in productivity after, 305–6 474 i n de x initial signs of recovery (2009), 218–19, 225, 226 monetary interpretation of, 105, 106 ‘premature withdrawal’ of fiscal stimulus, 219–20, 223–36, 245, 352 reform agenda after, 361–8 rise in inequality in lead-up to, 289–90, 299–300 see also financial collapse (2007–8) Greece and Eurozone debt crisis, 32, 224, 224–5, 226, 233, 235, 242–3, 243, 337, 341, 365 in gold standard era, 59 Greenspan, Alan, 188, 313 Hamilton, Alexander, 88, 90, 92 Hammond, Philip, 236, 352 Hannover Re scandal, 329 Harrison, George, 105 Harrod, Roy, 123 Harvey, John, 333, 387 Hawtrey, Ralph, 109–10, 280 Hayek, Friedrich, 33, 46, 177, 195, 350, 367 founds Mont Pelerin Society, 176 ‘over-consumption’ theory, 296 The Road to Serfdom (1944), 16, 175–6 on Wall Street Crash, 104 Heath, Edward, 167–8 Heckscher, Eli, 37 Help to Buy programme, 265, 266 Henderson, Hubert, 109 Henderson, W.


pages: 349 words: 98,868

Nervous States: Democracy and the Decline of Reason by William Davies

active measures, Affordable Care Act / Obamacare, Amazon Web Services, bank run, banking crisis, basic income, business cycle, Capital in the Twenty-First Century by Thomas Piketty, citizen journalism, Climategate, Climatic Research Unit, Colonization of Mars, continuation of politics by other means, creative destruction, credit crunch, decarbonisation, deindustrialization, discovery of penicillin, Dominic Cummings, Donald Trump, drone strike, Elon Musk, failed state, Filter Bubble, first-past-the-post, Frank Gehry, gig economy, housing crisis, income inequality, Isaac Newton, Jeff Bezos, Johannes Kepler, Joseph Schumpeter, knowledge economy, loss aversion, low skilled workers, Mahatma Gandhi, Mark Zuckerberg, mass immigration, meta analysis, meta-analysis, Mont Pelerin Society, mutually assured destruction, Northern Rock, obamacare, Occupy movement, pattern recognition, Peace of Westphalia, Peter Thiel, Philip Mirowski, planetary scale, post-industrial society, quantitative easing, RAND corporation, Ray Kurzweil, Richard Florida, road to serfdom, Robert Mercer, Ronald Reagan, sentiment analysis, Silicon Valley, Silicon Valley startup, smart cities, statistical model, Steve Jobs, the scientific method, Turing machine, Uber for X, universal basic income, University of East Anglia, Valery Gerasimov, We are the 99%, WikiLeaks, women in the workforce, zero-sum game

Must the definition of “scientist” be stretched, until a dissenting voice can be found? Many libertarians inspired by Hayek would argue that it must. On a practical level, Hayek fought the monopoly of experts on various fronts. He was a founding member of the Society for Freedom in Science, established in Britain in 1940 to combat perceived Marxist influence over science policy. In 1947, he formed the Mont Pelerin Society, an international think tank dedicated to resurrecting liberal and libertarian thinking, and resisting the perceived drift toward socialism in the postwar world. This society, whose membership included economists such as Mises and Friedman and renowned philosophers such as Karl Popper and Michael Polanyi, became one of the main networks through which free-market thinking circulated in the decades leading up to the Thatcher and Reagan victories.

The sense that dominant academic and government institutions had been corrupted by delusions of “objectivity” and “the public interest” meant that resistance needed to be forged through a whole new infrastructure of knowledge production. The monopoly that intellectuals exerted over the mainstream public sphere could only be broken by establishing a rival one. Over the following decades, the Mont Pelerin Society became a model for various think tanks of the “New Right,” such as the Heritage Foundation in the United States, the World Economic Forum in Switzerland, and the Center for Policy Studies in the UK. Like Hayek, the new think tanks were often fueled by the suspicion that universities and media organizations were irredeemably blinkered by their own commitment to “objectivity” or “impartiality,” which in practice just meant socialism.

., Martin Luther, 21, 224 knowledge economy, 84, 85, 88, 151–2, 217 known knowns, 132, 138 Koch, Charles and David, 154, 164, 174 Korean War (1950–53), 178 Kraepelin, Emil, 139 Kurzweil, Ray, 183–4 Labour Party, 5, 6, 65, 80, 81, 221 Lagarde, Christine, 64 Le Bon, Gustave, 8–12, 13, 15, 16, 20, 24, 25, 38 Le Pen, Marine, 27, 79, 87, 92, 101–2 Leadbeater, Charles, 84 Leeds, West Yorkshire, 85 Leicester, Leicestershire, 85 Leviathan (Hobbes), 34, 39, 45 liberal elites, 20, 58, 88, 89, 161 libertarianism, 15, 151, 154, 158, 164, 173, 196, 209, 226 Liberty Fund, 158 Libya, 143 lie-detection technology, 136 life expectancy, 62, 68–71, 72, 92, 100–101, 115, 224 Lindemann, Frederick Alexander, 1st Viscount Cherwell, 138 Lloyds Bank, 29 London, England bills of mortality, 68–71, 75, 79–80, 81, 89, 127 Blitz (1940–41), 119, 143, 180 EU referendum (2016), 85 Great Fire (1666), 67 Grenfell Tower fire (2017), 10 and gross domestic product (GDP), 77, 78 housing crisis, 84 insurance sector, 59 knowledge economy, 84 life expectancy, 100 newspapers, early, 48 Oxford Circus terror scare (2017), ix–x, xiii, 41 plagues, 67–71, 75, 79–80, 81, 89, 127 Unite for Europe march (2017), 23 London School of Economics (LSE), 160 loss aversion, 145 Louis XIV, King of France, 73, 127 Louisiana, United States, 151, 221 Ludwig von Mises Institute, 154 MacLean, Nancy, 158 Macron, Emmanuel, 33 mainstream media, 197 “Make America Great Again,” 76, 145 Manchester, England, 85 Mann, Geoff, 214 maps, 182 March For Our Lives (2018), 21 March for Science (2017), 23–5, 27, 28, 210, 211 marketing, 14, 139–41, 143, 148, 169 Mars, 175, 226 Marxism, 163 Massachusetts Institute of Technology (MIT), 179 Mayer, Jane, 158 McCarthy, Joseph, 137 McGill Pain Questionnaire, 104 McKibben, William “Bill,” 213 Megaface, 188–9 memes, 15, 194 Menger, Carl, 154 mental illness, 103, 107–17, 139 mercenaries, 126 Mercer, Robert, 174, 175 Mexico, 145 Million-Man March (1995), 4 mind-reading technology, 136 see also telepathy Mirowski, Philip, 158 von Mises, Ludwig, 154–63, 166, 172, 173 Missing Migrants Project, 225 mobilization, 5, 7, 126–31 and Corbyn, 81 and elections, 81, 124 and experts, 27–8 and Internet, 15 and Le Bon’s crowd psychology, 11, 12, 16, 20 and loss, 145 and Napoleonic Wars, xv, 127–30, 141, 144 and Occupy movement, 5 and populism, 16, 22, 60 and violence, opposition to, 21 Moniteur Universel, Le, 142 monopoly on violence, 42 Mont Pelerin Society, 163, 164 moral emotion, 21 morphine, 105 multiculturalism, 84 Murs, Oliver “Olly,” ix Musk, Elon, 175, 176, 178, 183, 226 Nanchang, Jiangxi, 13 Napoleonic Wars (1803–15), 126–30 chappe system, 129, 182 and conscription, 87, 126–7, 129 and disruption, 170–71, 173, 174, 175, 226 and great leader ideal, 146–8 and intelligence, 134 and mobilization, xv, 126–30, 141, 144 and nationalism, 87, 128, 129, 144, 183, 211 and propaganda, 142 Russia, invasion of (1812), 128, 133 Spain, invasion of (1808), 128 National Aeronautics and Space Administration (NASA), 23, 175 National Audit Office (NAO), 29–30 national citizenship, 71 National Defense Research Committee, 180 National Health Service (NHS), 30, 93 National Park Service, 4 National Security Agency (NSA), 152 national sovereignty, 34, 53 nationalism, 87, 141, 210–12 and conservatism, 144 and disempowerment, 118–19 and elites, 22–3, 60–61, 145 ethnic, 15 and health, 92, 211–12, 224 and imagined communities, 87 and inequality, 78 and loss, 145 and markets, 167 and promises, 221 and resentment, 145, 197, 198 and war, 7, 20–21, 118–19, 143–6, 210–11 nativism, 61 natural philosophy, 35–6 nature, 86 see also environment Nazi Germany (1933–45), 137, 138, 154 Netherlands, 48, 56, 129 Neurable, 176 neural networking, 216 Neuralink, 176 neurasthenia, 139 Neurath, Otto, 153–4, 157, 160 neurochemistry, 108, 111, 112 neuroimaging, 176–8, 181 Nevada, United States, 194 new atheism, 209 New Orleans, Louisiana, 151 New Right, 164 New York, United States and climate change, 205 and gross domestic product (GDP), 78 housing crisis, 84 JFK Airport terror scare (2016), x, xiii, 41 knowledge economy, 84 September 11 attacks (2001), 17, 18 New York Times, 3, 27, 85 newspapers, 48, 71 Newton, Isaac, 35 Nietzsche, Friedrich, 217 Nixon, Robert, 206 no-platforming, 22, 208 Nobel Prize, 158–9 non-combatants, 43, 143, 204 non-violence, 224 North Atlantic Treaty Organization (NATO), 123, 145, 214 North Carolina, United States, 84 Northern Ireland, 43, 85 Northern League, 61 Northern Rock, 29 Norwich, Norfolk, 85 nostalgia, xiv, 143, 145, 210, 223 “Not in my name,” 27 nuclear weapons, 132, 135, 137, 180, 183, 192, 196, 204 nudge techniques, 13 Obama, Barack, 3, 24, 76, 77, 79, 158, 172 Obamacare, 172 objectivity, xiv, 13, 75, 136, 223 and crowd-based politics, 5, 7, 24–5 and death, 94 and Descartes, 37 and experts, trust in, 28, 32, 33, 51, 53, 64, 86, 89 and Hayek, 163, 164, 170 and markets, 169, 170 and photography, 8 and Scientific Revolution, 48, 49 and statistics, 72, 74, 75, 82, 88 and telepathic communication, 179 and war, 58, 125, 134, 135, 136, 146 Occupy movement, 5, 10, 24, 61 Oedipus complex, 109 Office for National Statistics, 63, 133 Ohio, United States, 116 oil crisis (1973), 166 “On Computable Numbers” (Turing), 181 On War (Clausewitz), 130 Open Society and Its Enemies, The (Popper), 171 opiates, 105, 116, 172–3 opinion polling, 65, 80–81, 191 Orbán, Viktor, 87, 146 Organisation for Economic Co-operation and Development (OECD), 72 Oxford, Oxfordshire, 85 Oxford Circus terror scare (2017), ix–x, xiii, 41 Oxford University, 56, 151 OxyContin, 105, 116 pacifism, 8, 20, 44, 151 pain, 102–19, 172–3, 224 see also chronic pain painkillers, 104, 105, 116, 172–3 Palantir, 151, 152, 175, 190 parabiosis, 149 Paris climate accord (2015), 205, 207 Paris Commune (1871), 8 Parkland attack (2018), 21 Patriot Act (2001), 137 Paul, Ronald, 154 PayPal, 149 Peace of Westphalia (1648), 34, 53 peer reviewing, 48, 139, 195, 208 penicillin, 94 Pentagon, 130, 132, 135, 136, 214, 216 pesticides, 205 Petty, William, 55–9, 67, 73, 85, 167 pharmacology, 142 Pielke Jr., Roger, 24, 25 Piketty, Thomas, 74 Pinker, Stephen, 207 plagues, 56, 67–71, 75, 79–80, 81, 89, 95 pleasure principle, 70, 109, 110, 224 pneumonia, 37, 67 Podemos, 5, 202 Poland, 20, 34, 60 Polanyi, Michael, 163 political anatomy, 57 Political Arithmetick (Petty), 58, 59 political correctness, 20, 27, 145 Popper, Karl, 163, 171 populism xvii, 211–12, 214, 220, 225–6 and central banks, 33 and crowd-based politics, 12 and democracy, 202 and elites/experts, 26, 33, 50, 152, 197, 210, 215 and empathy, 118 and health, 99, 101–2, 224–5 and immediate action, 216 in Kansas (1880s), 220 and markets, 167 and private companies, 174 and promises, 221 and resentment, 145 and statistics, 90 and unemployment, 88 and war, 148, 212 Porter, Michael, 84 post-traumatic stress disorder (PTSD), 111–14, 117, 209 post-truth, 167, 224 Potsdam Conference (1945), 138 power vs. violence, 19, 219 predictive policing, 151 presidential election, US (2016), xiv and climate change, 214 and data, 190 and education, 85 and free trade, 79 and health, 92, 99 and immigration, 79, 145 and inequality, 76–7 and Internet, 190, 197, 199 “Make America Great Again,” 76, 145 and opinion polling, 65, 80 and promises, 221 and relative deprivation, 88 and Russia, 199 and statistics, 63 and Yellen, 33 prisoners of war, 43 promises, 25, 31, 39–42, 45–7, 51, 52, 217–18, 221–2 Propaganda (Bernays), 14–15 propaganda, 8, 14–16, 83, 124–5, 141, 142, 143 property rights, 158, 167 Protestantism, 34, 35, 45, 215 Prussia (1525–1947), 8, 127–30, 133–4, 135, 142 psychiatry, 107, 139 psychoanalysis, 107, 139 Psychology of Crowds, The (Le Bon), 9–12, 13, 15, 16, 20, 24, 25 psychosomatic, 103 public-spending cuts, 100–101 punishment, 90, 92–3, 94, 95, 108 Purdue, 105 Putin, Vladimir, 145, 183 al-Qaeda, 136 quality of life, 74, 104 quantitative easing, 31–2, 222 quants, 190 radical statistics, 74 RAND Corporation, 183 RBS, 29 Reagan, Ronald, 15, 77, 154, 160, 163, 166 real-time knowledge, xvi, 112, 131, 134, 153, 154, 165–70 Reason Foundation, 158 Red Vienna, 154, 155 Rees-Mogg, Jacob, 33, 61 refugee crisis (2015–), 60, 225 relative deprivation, 88 representative democracy, 7, 12, 14–15, 25–8, 61, 202 Republican Party, 77, 79, 85, 154, 160, 163, 166, 172 research and development (R&D), 133 Research Triangle, North Carolina, 84 resentment, 5, 226 of elites/experts, 32, 52, 61, 86, 88–9, 161, 186, 201 and nationalism/populism, 5, 144–6, 148, 197, 198 and pain, 94 Ridley, Matt, 209 right to remain silent, 44 Road to Serfdom, The (Hayek), 160, 166 Robinson, Tommy, ix Roosevelt, Franklin Delano, 52 Royal Exchange, 67 Royal Society, 48–52, 56, 68, 86, 133, 137, 186, 208, 218 Rumsfeld, Donald, 132 Russian Empire (1721–1917), 128, 133 Russian Federation (1991–) and artificial intelligence, 183 Gerasimov Doctrine, 43, 123, 125, 126 and information war, 196 life expectancy, 100, 115 and national humiliation, 145 Skripal poisoning (2018), 43 and social media, 15, 18, 199 troll farms, 199 Russian Revolution (1917), 155 Russian SFSR (1917–91), 132, 133, 135–8, 155, 177, 180, 182–3 safe spaces, 22, 208 Sands, Robert “Bobby,” 43 Saxony, 90 scarlet fever, 67 Scarry, Elaine, 102–3 scenting, 135, 180 Schneier, Bruce, 185 Schumpeter, Joseph, 156–7, 162 Scientific Revolution, 48–52, 62, 66, 95, 204, 207, 218 scientist, coining of term, 133 SCL, 175 Scotland, 64, 85, 172 search engines, xvi Second World War, see World War II securitization of loans, 218 seismology, 135 self-employment, 82 self-esteem, 88–90, 175, 212 self-harm, 44, 114–15, 117, 146, 225 self-help, 107 self-interest, 26, 41, 44, 61, 114, 141, 146 Semi-Automatic Ground Environment (SAGE), 180, 182, 200 sentiment analysis, xiii, 12–13, 140, 188 September 11 attacks (2001), 17, 18 shell shock, 109–10 Shrecker, Ted, 226 Silicon Fen, Cambridgeshire, 84 Silicon Valley, California, xvi, 219 and data, 55, 151, 185–93, 199–201 and disruption, 149–51, 175, 226 and entrepreneurship, 149–51 and fascism, 203 and immortality, 149, 183–4, 224, 226 and monopolies, 174, 220 and singularity, 183–4 and telepathy, 176–8, 181, 185, 186, 221 and weaponization, 18, 219 singularity, 184 Siri, 187 Skripal poisoning (2018), 43 slavery, 59, 224 smallpox, 67 smart cities, 190, 199 smartphone addiction, 112, 186–7 snowflakes, 22, 113 social indicators, 74 social justice warriors (SJWs), 131 social media and crowd psychology, 6 emotional artificial intelligence, 12–13, 140–41 and engagement, 7 filter bubbles, 66 and propaganda, 15, 18, 81, 124 and PTSD, 113 and sentiment analysis, 12 trolls, 18, 20–22, 27, 40, 123, 146, 148, 194–8, 199, 209 weaponization of, 18, 19, 22, 194–5 socialism, 8, 20, 154–6, 158, 160 calculation debate, 154–6, 158, 160 Socialism (Mises), 160 Society for Freedom in Science, 163 South Africa, 103 sovereignty, 34, 53 Soviet Russia (1917–91), 132, 133, 135–8, 177, 180, 182–3 Spain, 5, 34, 84, 128, 202 speed of knowledge, xvi, 112, 124, 131, 134, 136, 153, 154, 165–70 Spicer, Sean, 3, 5 spy planes, 136, 152 Stalin, Joseph, 138 Stanford University, 179 statactivism, 74 statistics, 62–91, 161, 186 status, 88–90 Stoermer, Eugene, 206 strong man leaders, 16 suicide, 100, 101, 115 suicide bombing, 44, 146 superbugs, 205 surveillance, 185–93, 219 Sweden, 34 Switzerland, 164 Sydenham, Thomas, 96 Syriza, 5 tacit knowledge, 162 talking cure, 107 taxation, 158 Tea Party, 32, 50, 61, 221 technocracy, 53–8, 59, 60, 61, 78, 87, 89, 90, 211 teenage girls, 113, 114 telepathy, 39, 176–9, 181, 185, 186 terrorism, 17–18, 151, 185 Charlottesville attack (2017), 20 emergency powers, 42 JFK Airport terror scare (2016), x, xiii, 41 Oxford Circus terror scare (2017), ix–x, xiii, 41 September 11 attacks (2001), 17, 18 suicide bombing, 44, 146 vehicle-ramming attacks, 17 war on terror, 131, 136, 196 Thames Valley, England, 85 Thatcher, Margaret, 154, 160, 163, 166 Thiel, Peter, 26, 149–51, 153, 156, 174, 190 Thirty Years War (1618–48), 34, 45, 53, 126 Tokyo, Japan, x torture, 92–3 total wars, 129, 142–3 Treaty of Westphalia (1648), 34, 53 trends, xvi, 168 trigger warnings, 22, 113 trolls, 18, 20–22, 27, 40, 123, 146, 148, 194–8, 199, 209 Trump, Donald, xiv and Bannon, 21, 60–61 and climate change, 207 and education, 85 election campaign (2016), see under presidential election, US and free trade, 79 and health, 92, 99 and immigration, 145 inauguration (2017), 3–5, 6, 9, 10 and inequality, 76–7 “Make America Great Again,” 76, 145 and March for Science (2017), 23, 24, 210 and media, 27 and opinion polling, 65, 80 and Paris climate accord, 207 and promises, 221 and relative deprivation, 88 and statistics, 63 and Yellen, 33 Tsipras, Alexis, 5 Turing, Alan, 181, 183 Twitter and Corbyn’s rallies, 6 and JFK Airport terror scare (2016), x and Oxford Circus terror scare (2017), ix–x and Russia, 18 and sentiment analysis, 188 and trends, xvi and trolls, 194, 195 Uber, 49, 185, 186, 187, 188, 191, 192 UK Independence Party, 65, 92, 202 underemployment, 82 unemployment, 61, 62, 72, 78, 81–3, 87, 88, 203 United Kingdom austerity, 100 Bank of England, 32, 33, 64 Blitz (1940–41), 119, 143, 180 Brexit (2016–), see under Brexit Cameron government (2010–16), 33, 73, 100 Center for Policy Studies, 164 Civil Service, 33 climate-gate (2009), 195 Corbyn’s rallies, 5, 6 Dunkirk evacuation (1940), 119 education, 85 financial crisis (2007–9), 29–32, 100 first past the post, 13 general election (2015), 80, 81 general election (2017), 6, 65, 80, 81, 221 Grenfell Tower fire (2017), 10 gross domestic product (GDP), 77, 79 immigration, 63, 65 Irish hunger strike (1981), 43 life expectancy, 100 National Audit Office (NAO), 29 National Health Service (NHS), 30, 93 Office for National Statistics, 63, 133 and opiates, 105 Oxford Circus terror scare (2017), ix–x, xiii, 41 and pain, 102, 105 Palantir, 151 Potsdam Conference (1945), 138 quantitative easing, 31–2 Royal Society, 138 Scottish independence referendum (2014), 64 Skripal poisoning (2018), 43 Society for Freedom in Science, 163 Thatcher government (1979–90), 154, 160, 163, 166 and torture, 92 Treasury, 61, 64 unemployment, 83 Unite for Europe march (2017), 23 World War II (1939–45), 114, 119, 138, 143, 180 see also England United Nations, 72, 222 United States Bayh–Dole Act (1980), 152 Black Lives Matter, 10, 225 BP oil spill (2010), 89 Bush Jr. administration (2001–9), 77, 136 Bush Sr administration (1989–93), 77 Bureau of Labor, 74 Central Intelligence Agency (CIA), 3, 136, 151, 199 Charlottesville attack (2017), 20 Civil War (1861–5), 105, 142 and climate change, 207, 214 Clinton administration (1993–2001), 77 Cold War, see Cold War Defense Advanced Research Projects Agency (DARPA), 176, 178 Defense Intelligence Agency, 177 drug abuse, 43, 100, 105, 115–16, 131, 172–3 education, 85 Federal Bureau of Investigation (FBI), 137 Federal Reserve, 33 Fifth Amendment (1789), 44 financial crisis (2007–9), 31–2, 82, 158 first past the post, 13 Government Accountability Office, 29 gross domestic product (GDP), 75–7, 82 health, 92, 99–100, 101, 103, 105, 107, 115–16, 158, 172–3 Heritage Foundation, 164, 214 Iraq War (2003–11), 74, 132 JFK Airport terror scare (2016), x, xiii, 41 Kansas populists (1880s), 220 libertarianism, 15, 151, 154, 158, 164, 173 life expectancy, 100, 101 March For Our Lives (2018), 21 March for Science (2017), 23–5, 27, 28, 210 McCarthyism (1947–56), 137 Million-Man March (1995), 4 National Aeronautics and Space Administration (NASA), 23, 175 National Defense Research Committee, 180 National Park Service, 4 National Security Agency (NSA), 152 Obama administration (2009–17), 3, 24, 76, 77, 79, 158 Occupy Wall Street (2011), 5, 10, 61 and opiates, 105, 172–3 and pain, 103, 105, 107, 172–3 Palantir, 151, 152, 175, 190 Paris climate accord (2015), 205, 207 Parkland attack (2018), 21 Patriot Act (2001), 137 Pentagon, 130, 132, 135, 136, 214, 216 presidential election (2016), see under presidential election, US psychiatry, 107, 111 quantitative easing, 31–2 Reagan administration (1981–9), 15, 77, 154, 160, 163, 166 Rumsfeld’s “unknown unknowns” speech (2002), 132 Semi-Automatic Ground Environment (SAGE), 180, 182, 200 September 11 attacks (2001), 17, 18 Tea Party, 32, 50, 61, 221 and torture, 93 Trump administration (2017–), see under Trump, Donald unemployment, 83 Vietnam War (1955–75), 111, 130, 136, 138, 143, 205 World War I (1914–18), 137 World War II (1939–45), 137, 180 universal basic income, 221 universities, 151–2, 164, 169–70 University of Cambridge, 84, 151 University of Chicago, 160 University of East Anglia, 195 University of Oxford, 56, 151 University of Vienna, 160 University of Washington, 188 unknown knowns, 132, 133, 136, 138, 141, 192, 212 unknown unknowns, 132, 133, 138 “Use of Knowledge in Society, The” (Hayek), 161 V2 flying bomb, 137 vaccines, 23, 95 de Vauban, Sébastien Le Prestre, Marquis de Vauban, 73 vehicle-ramming attacks, 17 Vesalius, Andreas, 96 Vienna, Austria, 153–5, 159 Vietnam War (1955–75), 111, 130, 136, 138, 143, 205 violence vs. power, 19, 219 viral marketing, 12 virtual reality, 183 virtue signaling, 194 voice recognition, 187 Vote Leave, 50, 93 Wainright, Joel, 214 Wales, 77, 90 Wall Street, New York, 33, 190 War College, Berlin, 128 “War Economy” (Neurath), 153–4 war on drugs, 43, 131 war on terror, 131, 136, 196 Watts, Jay, 115 weaponization, 18–20, 22, 26, 75, 118, 123, 194, 219, 223 weapons of mass destruction, 132 wearable technology, 173 weather control, 204 “What Is An Emotion?”


pages: 453 words: 117,893

What Would the Great Economists Do?: How Twelve Brilliant Minds Would Solve Today's Biggest Problems by Linda Yueh

"Robert Solow", 3D printing, additive manufacturing, Asian financial crisis, augmented reality, bank run, banking crisis, basic income, Ben Bernanke: helicopter money, Berlin Wall, Bernie Sanders, Big bang: deregulation of the City of London, bitcoin, Branko Milanovic, Bretton Woods, BRICs, business cycle, Capital in the Twenty-First Century by Thomas Piketty, clean water, collective bargaining, computer age, Corn Laws, creative destruction, credit crunch, Credit Default Swap, cryptocurrency, currency peg, dark matter, David Ricardo: comparative advantage, debt deflation, declining real wages, deindustrialization, Deng Xiaoping, Doha Development Round, Donald Trump, endogenous growth, everywhere but in the productivity statistics, Fall of the Berlin Wall, fear of failure, financial deregulation, financial innovation, Financial Instability Hypothesis, fixed income, forward guidance, full employment, Gini coefficient, global supply chain, Gunnar Myrdal, Hyman Minsky, income inequality, index card, indoor plumbing, industrial robot, information asymmetry, intangible asset, invisible hand, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, joint-stock company, Joseph Schumpeter, laissez-faire capitalism, land reform, lateral thinking, life extension, low-wage service sector, manufacturing employment, market bubble, means of production, mittelstand, Mont Pelerin Society, moral hazard, mortgage debt, negative equity, Nelson Mandela, non-tariff barriers, Northern Rock, Occupy movement, oil shale / tar sands, open economy, paradox of thrift, Paul Samuelson, price mechanism, price stability, Productivity paradox, purchasing power parity, quantitative easing, RAND corporation, rent control, rent-seeking, reserve currency, reshoring, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, school vouchers, secular stagnation, Shenzhen was a fishing village, Silicon Valley, Simon Kuznets, special economic zone, Steve Jobs, The Chicago School, The Wealth of Nations by Adam Smith, Thomas Malthus, too big to fail, total factor productivity, trade liberalization, universal basic income, unorthodox policies, Washington Consensus, We are the 99%, women in the workforce, working-age population

He wrote: there can be no doubt that some minimum of food, shelter, and clothing, sufficient to preserve health and the capacity to work, can be assured to everybody … Where, as in the case of sickness and accident, neither the desire to avoid such calamities nor the efforts to overcome their consequences are as a rule weakened by the provision of assistance, where, in short, we deal with genuinely insurable risks, the case for the state’s helping to organize a comprehensive system of social insurance is very strong.14 * * * In many ways Friedrich Hayek was at his peak in terms of celebrity and reputation after the publication of The Road to Serfdom. He had conceived the idea of setting up a society to bring German scholars back into mainstream classical thought after the Second World War, and a couple of years later, between 1 and 10 April 1947, the first Mont Pelerin Society conference took place in Switzerland. Hayek invited intellectuals who supported classical liberalism – in all, thirty-nine individuals from ten countries. Hayek was the first president and stayed in post until 1961. It continues today in the same liberal tradition, and eight Nobel Prize winners have been members. Hayek had always been interested in psychology and after the success of The Road to Serfdom he indulged himself working on his next project, The Sensory Order.

France French Revolution inequality Physiocrats and Trier Freddie Mac free market capitalism see also capitalism competition see competition see also free trade free trade and competition see competition in corn see also Corn Laws regional and bilateral agreements and theory of comparative advantage free trade agreements (FTAs) Friedman, David Friedman, Janet Friedman, Milton and the 2008 financial crisis Capitalism and Freedom and the Federal Reserve Free to Choose and Goldwater and the Great Depression John Bates Clark Medal and Keynes libertarian views life and times of A Monetary History of the United States, (with Schwartz) and monetary policy and Nixon Nobel Prize and Pinochet/Chile political influence and prediction and quantitative easing and Reagan and Stigler and Thatcher A Theory of the Consumption Function Two Lucky People Tyranny of the Status Quo Volker Lectures Friedman, Rose, née Director Frisch, Ragnar Fuji Furman, Jason Galbraith, John Kenneth gas industry General Electric (GE) German Historical School of economics Germany and China competitiveness and wages and the Great Depression industrialization/Industrial Revolution inequality manufacturing and Marshall and Marx productivity and wage growth retained cash of companies reunification and wages trade and the Treaty of Versailles wage stagnation worker representation gilts Glass–Steagall Act global macroeconomic imbalances globalization backlash and deindustrialization and emerging economies future of and inequality losers from and low wages and prosperity and specialization and trade gold and the dollar standard Goldwater, Barry Google Android government administration government bonds see also gilts government regulation government spending deficit spending and employment and Keynes see also fiscal policy: Keynes’ fiscal activism public investment/spending see public investment; public spending Gramm–Leach–Bliley Act Great Britain see Britain/UK Great Depression (1930s) Black Thursday Black Tuesday and the Federal Reserve Fisher and risk of repeating the 1930s and Friedman and ‘Great Contraction’ and Keynesian revolution/economics as a liquidity crisis and unemployment and US GDP Greece see also euro crisis gross domestic product (GDP) debt-to-GDP ratio emerging economies and world GDP and government spending investment as share of Japan per capita trade-to GDP ratios US 2015 GDP US decline with Great Depression world GDP growth of economies see economic growth Guillebaud, Claude Haberler, Gottfried Hansen, Alvin Hardenberg, Karl August von Harris, Seymour Harrison, George Hausmann, Ricardo Hayek, Friedrich and the 2008 global financial crisis and the backlash against globalization business cycle theory and capitalism in Collectivist Economic Planning The Constitution of Liberty The Denationalization of Money The Fatal Conceit and the IEA influence and Keynes Law, Legislation and Liberty life and times of Nobel Prize ‘Paradox of Saving’ path to fame political philosophy presidency of Mont Pelerin Society Prices and Production Pure Theory of Capital The Road to Serfdom and Schumpeter The Sensory Order and spontaneous order and Thatcher Hayek, Hella Hazard, Caroline Hazard, Margaret see Fisher, Margaret Hazard, Rowland Hegel, Georg Wilhelm Hicks, John R. higher education Holland Hong Kong Hoover, Herbert housing market Huawei human capital Hume, David hyperinflation hysteresis imports inclusive growth income inequality Index Number Institute (INI) Index Visible Company indexation schemes India individualism Indonesia industrialization and agriculture in China Industrial Revolution reindustrialization Second Industrial Revolution and the workers’ movement see also deindustrialization inequality and capitalism in China drivers of and globalization growing Hayek and global inequality income inequality and Marshall reasons for rising inequality over past century and skill-biased technical change in South Africa and tax and technological change US and welfare systems inflation and central bank regimes and debt indexation hyperinflation and savings stagflation and wages information and communications technology (ICT) smartphones and improvements in technology see also smartphones/mobile phones Information Technology and Innovation Foundation (US) infrastructure investment innovation and challenge of staying on top China’s challenge as engine of economic growth industry-specific Schumpeterian ‘creative destruction’ and Institute of Economic Affairs (IEA) institutions and economic development Myanmar and North self-perpetuation of and technological progress Vietnam’s institutional challenge intangible investments interest rates and the 2008 financial crisis and the Great Depression investment and low rates negative and stocks International Labour Organization (ILO) International Monetary Fund (IMF) International Working Men’s Association (IWMA) internet investment and aggregate demand in economy capital investment with fixed returns foreign (direct) growth through in human capital infrastructure see infrastructure investment investment banks/banking Keynes’ view of investors and low interest rates low investment following financial crises private and productivity public see public investment R&D see research and development investment Robinson on capital accumulation from as share of GDP ‘socializing investment’ and tax UK foreign investment after Brexit Ireland UK exports to Israel iTunes Japan ‘Abenomics’ economic growth economic stagnation GDP ‘lost decades’ manufacturing national debt productivity real estate crash in 1990s robotics as second largest economy stagnant median wages temporary workers wage growth Jevons, W.

joint-stock companies Jones, Homer Journal of Economic Perspectives Journal of Political Economy JPMorgan Juncker Plan Kahn, Richard Kant, Immanuel Keynes, John Maynard and the backlash against globalization and the Bloomsbury Group and Bretton Woods System and budget deficits counter-cyclical policies and crowding out on depression/recession The Economic Consequences of the Peace fiscal activism and Friedman The General Theory of Employment, Interest and Money and government spending on government’s role in economy and Hayek and investors Keynesian revolution legacy life and times of and Marshall and Niemeyer and paradox of thrift at Paris Peace Conference Prices and Production and public investment and Robbins Robinson and Keynes/Keynesian economics and Schumpeter and ‘socializing investment’ A Tract on Monetary Reform and the Treasury A Treatise on Money wealth Keynes, John Neville Khrushchev, Nikita Knight, Frank Kodak Korea North South Krugman, Paul Krupp Kuznets, Simon labour force growth labour productivity and work incentive laissez-faire landowners Lassalle, Ferdinand Latin America currency crisis (1981–82) see also specific countries League of Nations Lehman Brothers Lenin, Vladimir Leontief, Wassily Lewis, Arthur Lewis, Barbara (‘Bobby’) Life Extension Institute Linda for Congress BBC documentary London London School of Economics and Political Science London Stock Exchange Long Depression (1880s) Lopokova, Lydia Louis XIV LSE see London School of Economics and Political Science Lucas, Jr, Robert Ma, Jack (Ma Yun) Maastricht Treaty macroprudential policy see also central banks; financial stability Malaysia Malthus, Thomas Manchester Mandela, Nelson manufacturing additive (3D printing) automation in China and deindustrialization GDP contribution in UK German high-tech and industrialization see also industrialization Japan ‘manu-services’ ‘March of the Makers’ mass-manufactured goods and national statistics reshoring rolling back deindustrialization process and Smith trade patterns changed by advanced manufacturing US Mao Zedong Maoism ‘March of the Makers’ marginal utility analysis marginalism market forces/economy ‘Big Bang’ (1986) competition see competition and economic equilibrium see economic equilibrium emerging economies see emerging economies Hayek and the supremacy of market forces ‘invisible hand’ and laissez-faire and Marx 4 self-righting markets supply and demand see supply and demand Marshall, Alfred on approach to economics and the backlash against globalization and the Cambridge School and decentralization Economics of Industry and education’s role in reducing inequality and inequality and Keynes and laissez-faire legacy life and times of marginal utility analysis and Marx and poverty Principles of Economics and utility theory Marshall, Mary, née Paley Marx, Heinrich Marx, Henriette, née Pressburg Marx, Jenny, née von Westphalen Marx, Karl and agriculture and the backlash against globalization Capital and capitalism and China and class Communist Manifesto (with Engels) communist theories A Contribution to the Critique of Political Economy doctoral thesis The Eighteenth Brumaire of Louis Bonaparte and Engels journalism life and times of and Marshall and rate of profit and Ricardo and Russia on service sector workers surplus value theory and the Young Hegelians Marx, Laura Marx, Louise Marxism and the Austrian School and unemployment see also Marx, Karl Mason, Edward mathematical economics Mauritius May, Theresa Meade, James median income Menger, Carl mercantilist policies see also Corn Laws Merkel, Angela Mexico middle class China and economic growth and economic inequality and European revolutionaries income and industrialization and Keynes and Heinrich Marx as proportion of world population and Schumpeter social resentment US Mill, James Mill, John Stuart On Liberty Principles of Political Economy Minsky, Hyman Mises, Ludwig von Mitchell, Wesley mobile phones/smartphones monetarism see also Friedman, Milton monetary policy and Friedman tools see also quantitative easing (QE) see also central banks monopolies and Marx natural and Robinson and Schumpeter and Smith and Sraffa monopsony Mont Pelerin Society Morgenthau, Henry mortgage-backed securities (MBS) mortgage lending and the 2008 financial crisis sub-prime Myanmar Myrdal, Gunnar Napoleon I Napoleon III Napoleonic Wars national/official statistics China UK US national debt Austria and central banks China and creditors and debt forgiveness and deficits euro area and foreign exchange reserves and investment Japan major economies owed to foreigners and quantitative easing and Ricardian equivalent UK US Vietnam National Health Service (UK) National Infrastructure Commission (UK) Navigation Acts neoclassical economics convergence hypothesis ‘neoclassical synthesis’ New Neoclassical Synthesis see also Fisher, Irving; Marshall, Alfred; Solow, Robert Neoclassical Synthesis see also Samuelson, Paul New Classicists see also Lucas, Jr, Robert New Deal New Institutional Economics see also North, Douglass New Keynesians see also Stiglitz, Joseph New Neoclassical Synthesis New Rhineland News (Cologne) New Rhineland News: Review of Political Economy (London) new trade theory New York Herald New York Times New York Tribune Newcomb, Simon Newsweek Niemeyer, Sir Otto Nissan Nixon, Richard Nokia non-tariff barriers (NTBs) Nordhaus, William North, Douglass and the backlash against globalization and development challenges doctoral thesis The Economic Growth of the United States from 1790 to 1860 and institutions Institutions, Institutional Change and Economic Performance life and times of Nobel Prize path dependence theory and Smith North, Elizabeth, née Case North Korea Northern Rock Oak Ridge National Laboratory Obama, Barack Occupy movement oil industry Organisation for Economic Co-operation and Development (OECD) Osborne, George Overseas Development Institute (ODI) Oxford University Balliol College Paine, Thomas Paley, Mary Paris Peace Conference path dependence theory see also North, Douglass Peel Banking Act Philips, Lion Philips (electronics company) physical capital Physiocrats Pigou, Arthur Cecil Piketty, Thomas pin-making Pinochet, Augusto Ponzi finance populism Portugal poverty aid and development see economic development challenges eradication/reduction frictional and Marshall and Marx and median income people lifted from in South Africa productivity and agriculture ‘benign neglect’ of Britain’s productivity puzzle and computers and economic growth and education and factor reallocation and Germany and Hayek incentives and industry/industrial revolution and innovation and investment Japan and jobs labour see labour productivity and land low and Marshall moving into higher sectors of and pricing raising and Schumpeter and secular stagnation slow economic and productivity growth and the future and specialization and technology total factor productivity and trade and wages Prohibition protectionism agricultural see also Corn Laws Navigation Acts public-private partnerships public investment and Keynes public spending general government spending see government spending public investment see public investment squeeze see also austerity Puerto Rico quantitative easing (QE) Quantity Theory of Money see also Friedman, Milton; monetarism; Equation of Exchange Rand, Ayn RAND Corporation rate of profit rational expectations theory Reagan, Ronald recession/depression debt-deflation theory of depression Great Depression see Great Depression (1930s) Great Recession (2009) Greece ‘hangover theory’ of Hayek on and Keynes Long Depression (1880s) second recession (1937–38: recession within the Depression) in UK 1970s redistribution Regional Comprehensive Economic Partnership (RCEP) Reich, Robert reindustrialization Reisinger, Anna Josefina Remington Rand rent-seeking research and development (R&D) investment China Research in Motion (RIM) retail trade Rhineland News Ricardian equivalence Ricardo, David and the backlash against globalization and class comparative advantage theory and the Corn Laws Essay on the Influence of a Low Price of Corn on the Profits of Stock The High Price of Bullion international trade theory as a landlord life and times of as a loan contractor and Marx On the Principles of Political Economy and Taxation and Schumpeter and Smith wealth Ricardo, Priscilla Robbins, Lionel Robinson, Austin Robinson, James Robinson, Joan The Accumulation of Capital and the AEA and the backlash against globalization and communism Economic Philosophy The Economics of Imperfect Competition Essays in the Theory of Employment and imperfect competition Introduction to the Theory of Employment and Keynes and Keynesian economics life and times of and monopolies monopsony theory and Schumpeter and unemployment wage determination theory robotics Rodrik, Dani Rolls-Royce Roosevelt, Franklin D New Deal Russia 1905 Revolution and Lenin and Marx Samsung Samuelson, Paul and the backlash against globalization Economics factor-price equalization theorem Nobel Prize savings for capital investment and inflation and Keynes and the ‘paradox of thrift’ Say, Jean-Baptiste Schmoller, Gustav von Schumpeter, Anna, née Reisinger Schumpeter, Gladys, née Seaver Schumpeter, Joseph and the backlash against globalization as banker/investor Business Cycles and capitalism Capitalism, Socialism and Democracy ‘creative destruction’, innovation and ‘The Crisis of the Tax State’ and the Econometric Society economics and entrepreneurs on Fisher and Hayek History of Economic Analysis and Keynes legacy life and times of The Nature and Content of Theoretical Economics and perfect competition and Ricardo and Robinson Theory of Economic Development wealth Schumpeter, Romaine Elizabeth, née Boody Schumpeter Group of Seven Wise Men Schwartz, Anna Jacobson Schwarzenegger, Arnold Scottish Enlightenment Seaver, Gladys Ricarde see Schumpeter, Gladys secular stagnation self-interest services sector China and deindustrialization financial services see financial services global trade in services human capital investment invisibility of liberalization ‘manu-services’ and Marx move away from and national statistics output measurement productivity and innovation and Smith Trade in Services Agreement (TiSA) UK US shadow banking Shiller, Robert silver Singapore Skidelsky, Robert skill-biased technical change skills shortage small and medium-sized enterprises (SMEs) smartphones/mobile phones Smith, Adam and the backlash against globalization as Commissioner of Customs for Scotland economic freedom on ‘invisible hand’ of market forces and laissez-faire economics legacy life and times of and manufacturing and Marx and North and Physiocracy on rate of profit and rebalancing the economy and Ricardo and the services sector and state intervention The Theory of Moral Sentiments The Wealth of Nations social capital social networks social services socialism communist see communism vs welfare state capitalism Solow, Barbara (‘Bobby’), née Lewis Solow, Robert and the backlash against globalization with Council of Economic Advisers doctoral thesis economic growth model ‘How Economic Ideas Turn to Mush’ John Bates Clark Medal and Keynesian economics life and times of Nobel Prize Presidential Medal of Freedom and technological progress Sony Sorrell, Sir Martin South Africa South Korea Soviet Union and China Cold War collapse of see also Russia Spain specialization spontaneous order Sraffa, Piero stagflation Stanley Black & Decker state government regulation intervention in the economy laissez-faire STEM (science, technology, engineering and mathematics) workers sterling Stigler, George Stiglitz, Joseph stocks and Fisher and interest rates US railroad Strachey, Lytton Strahan, William Strong, Benjamin Sturzenegger, Federico Summers, Lawrence supply and demand see also market forces/economy: ‘invisible hand’ Sustainable Development Goals (SDGs) Taiwan Tanzania tariffs taxation and austerity devolved powers of flat for government deficit spending before Great Depression and inequality and investment Japan and Marshall negative income tax to pay off national debt Pigouvian tax progressive and Reagan redistribution through Schumpeter on Smith on Taylor, John Taylor, Overton H.


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The Triumph of Injustice: How the Rich Dodge Taxes and How to Make Them Pay by Emmanuel Saez, Gabriel Zucman

activist fund / activist shareholder / activist investor, Affordable Care Act / Obamacare, Berlin Wall, business cycle, Cass Sunstein, collective bargaining, corporate governance, Donald Trump, financial deregulation, income inequality, income per capita, informal economy, intangible asset, Jeff Bezos, labor-force participation, Lyft, Mark Zuckerberg, market fundamentalism, Mont Pelerin Society, mortgage debt, mortgage tax deduction, new economy, offshore financial centre, oil shock, patent troll, profit maximization, purchasing power parity, race to the bottom, rent-seeking, ride hailing / ride sharing, Ronald Reagan, shareholder value, Silicon Valley, single-payer health, Skype, Steve Jobs, The Wealth of Nations by Adam Smith, transfer pricing, trickle-down economics, uber lyft, very high income, We are the 99%

For card-carrying economists working in American universities, it borders on professional duty to profess its virtues.3 How did the government of a country that for decades had taxed high incomes at 90% come to think, in the mid-1980s, that 28% would instead be preferable? This monumental reversal in part reflects dramatic changes in politics and ideology that had contributed to Reagan’s victory six years earlier. Reactivating and modernizing the anti-tax rhetoric of the antebellum South, the Republican party had united high-income voters across the country with Southern whites. The small-government ideas championed by the Mont Pelerin Society from its creation in 1947, embodied by Barry Goldwater in his 1964 presidential run, and advanced by a network of conservative foundations in the 1970s, had finally spread into mainstream thought and prevailed politically.4 In this ideology, the primary role of government is to defend property rights and the key engine of growth is the profit-maximizing business, minimizing taxes paid along the way.

See also Piketty, Saez, and Zucman (2018). 3. See, e.g., the symposium on the Tax Reform Act of 1986 in the Journal of Economic Perspectives in 1987 (online at https://www.aeaweb.org/issues/256). Even scholars in favor of progressive taxation such as Joseph Pechman or Richard Musgrave end up broadly supportive of the tax reform—or at least recognize its inevitability (Pechman, 1987; Musgrave, 1987). 4. On the Mont Pelerin society, Burgin (2012). On tax revolt of the rich, Martin (2015). On Goldwater, see Perlstein (2001). On the role of conservative foundations, see Mayer (2017) and Teles (2012). 5. Margaret Thatcher, interview for Woman’s Own, September 1987. 6. See Slemrod (2007) and Slemrod and Bakija (2017), Chapter 5, for a discussion of tax evasion and tax enforcement. 7. Since 1922, when preferential tax rates on capital gains were first introduced, the maximum tax rate on long-term capital gains has always been below 40%.


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The Wrecking Crew: How Conservatives Rule by Thomas Frank

affirmative action, anti-communist, barriers to entry, Berlin Wall, Bernie Madoff, British Empire, business cycle, collective bargaining, corporate governance, Credit Default Swap, David Brooks, edge city, financial deregulation, full employment, George Gilder, guest worker program, income inequality, invisible hand, job satisfaction, Mikhail Gorbachev, Mont Pelerin Society, mortgage debt, Naomi Klein, Nelson Mandela, new economy, P = NP, plutocrats, Plutocrats, Ponzi scheme, Ralph Nader, rent control, Richard Florida, road to serfdom, rolodex, Ronald Reagan, school vouchers, shareholder value, Silicon Valley, stem cell, Telecommunications Act of 1996, the scientific method, too big to fail, union organizing, War on Poverty

In 1991 the IFF’s American magazine was renamed terra nova: A Quarterly Journal of Free-Market Economic and Political Thought. Its European journal became laissez-faire, a showplace for “radical free market articles.” The foundation dumped its old advisory board of cold-war hawks in favor of a more Information Age set, including both the chairman of the libertarian Cato Institute and the president of the Mont Pelerin Society, the free-market club founded by the economist Friedrich Hayek. As communism receded, Hayek’s sacred name came to loom ever larger in conservative circles, and the IFF deftly made itself the leader of the cult: A 1992 issue of terra nova was dedicated to Hayek’s memory, and on one of his many trips to South Africa, the IFF’s chairman presented a lucky politician with an autographed copy of a Hayek book.

Lance Gay, “Group That Opposed Mandela Had Secret South Africa Funds,” Houston Chronicle, July 30, 1995. 24. The description of laissez-faire can be found in the IFF’s newsletter, Freedom Bulletin 5, no. 4 (April 1991), p. 2. The issue of terra nova dedicated to Hayek was vol. 1, no. 3 (Spring 1992). See especially the Hayek memorial (p. 3) written by John Blundell, then president of the Charles G. Koch Foundation and today the vice president of the Mont Pelerin Society. The lucky South African politician who got the autographed copy of The Road to Serfdom was Mangosuthu Buthelezi, a perennial IFF favorite. The presentation is depicted in Freedom Bulletin 5, no. 5 (May 1991), p. 5. The presentation of the “Freedom Award” to Vaclav Klaus is described in Freedom Bulletin 5, no. 1 (January 1991), p. 1. 25. Or, more accurately, advocating “a return to market hunting” of deer.

See also specific individuals and firms advocacy bipartisan CNMI and contractors and Council on Competitiveness and DeLay and FEMA and future of government spending and Iraq and K Street Project and legislation written by return-on-investment and revolving door and price of Los Angeles Times Loudoun County Louw, Leon low-tax zones Lukens, Donald “Buz” “Made in U.S.A.” label mafian Making Democracy Work (Putnam) Malaysia Malkin, Michelle Mandela, Nelson Marianas Variety “market-based” government marketing marketization of politics market populism McCain, John McCarron, Douglas McCarthy, Joe McChesney, Fred McConnell, Mitch McCurdy, Dave McDonald, Larry McGovern, George McIntosh, David McKinley, William McTigue, Maurice media medical industry Medicare “Memogate” scandal of 2004 Mercatus Regulatory Studies Program Messing, F. Andy Mexico middle class migrant farmworkers union Milken, Michael Miner, David Mine Safety and Health Administration “Mine the Vote” effort minimum wage mining industry moderate Republicans Mondale, Walter “Fritz” money-in-politics issue Mont Pelerin Society Moon, Sun Myung Moore, Royn Moral Majority Moritz, Amy Mott, Elwood Mozambique Mulhall, Martin Multinational Business Services Muslims Nader, Ralph Nadler, Jerrold NASA NASDAQ National Association of Manufacturers (NAM) National Center for Public Policy Research National Conservative Political Action Committee (NCPAC, “nick-pack”) National Education Association National Endowment for the Arts National Ground Intelligence Center FIRES program National Institutes of Health nationalization National Labor Relations Act National Mining Association (NMA) national parks National Review National Rifle Association National Security Agency National Security Council National Student Association Nation’s Business Nazi regime New Deal New Democrats New Economy New Industrial State, The (Galbraith) New Left New Orleans New Republic New Right New Right, The (Viguerie) New York State legislature New York Times Ney, Bob Nicaragua Contrasn Sandinistas.


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The Fair Trade Scandal: Marketing Poverty to Benefit the Rich by Ndongo Sylla

British Empire, carbon footprint, corporate social responsibility, David Ricardo: comparative advantage, deglobalization, Doha Development Round, Food sovereignty, global value chain, illegal immigration, income inequality, income per capita, invisible hand, Joseph Schumpeter, labour mobility, land reform, market fundamentalism, mass immigration, means of production, Mont Pelerin Society, Naomi Klein, non-tariff barriers, offshore financial centre, open economy, Philip Mirowski, plutocrats, Plutocrats, price mechanism, purchasing power parity, Ronald Reagan, Scientific racism, selection bias, structural adjustment programs, The Wealth of Nations by Adam Smith, trade liberalization, transaction costs, transatlantic slave trade, trickle-down economics, Washington Consensus, zero-sum game

On one hand, distribution channels and agrifood industries had become increasingly oligopolistic. On the other, the degree of horizontal concentration increased along the agricultural value chains. On a global level, mechanisms regulating North–South trade were 41 Sylla T02779 01 text 41 28/11/2013 13:04 the fair trade scandal Box 2.1 Neoliberalism Neoliberalism is a political and economic doctrine that gained prominence in the wake of the Second World War with the creation of Mont Pelerin Society in 1947. Founded by the Austrian economist Friedrich Hayek, this organisation gathered together eminent personalities such as the economists Milton Friedman, George Stigler and Ludwig Von Mises, as well as the philosopher Karl Popper (Mirowski and Plehwe, 2009). The ‘neoliberal’ label is used to designate people, institutions or approaches that adhere both to the principle of individual liberties – namely entrepreneurial and trade freedom – as promoted by classical economic liberalism (hence the -liberal suffix) and to neoclassical economics – namely its blind faith in the virtues of the market economy (hence the neo- prefix).

., 33, 64, 67; Keynesianism, 42, 74, 141; euthanasia of the rentier, 157(n2) Kiribati, 135 Klein, Naomi, 78 Korea, the Republic of, 155(n1) Kraft Jacobs Suchard, 21 175 Sylla T02779 02 index 175 28/11/2013 13:04 the fair trade scandal Label-Step, 47 Labour, child labour, 51, 69, 79, 80, 113, 158(n7); division of labour, 63, 64, 65, 75; family labour, 51, 91, 94–5; forced labour, 71, 75, 80; hired labour, 43, 48, 49, 50, 51, 52, 94, 95, 112, 123, 129, 137, 160(n4), 161(n5); labour power, 76, 88, 98, 140, 148; labour supply, 9, 94–5; see also wage Lao People’s Democratic Republic, 135 Latin America, 9, 13, 15, 24, 37, 38, 42, 49, 74, 80, 107, 112, 115, 116, 117, 122, 129, 130, 131, 133, 135, 136, 137, 138, 139, 148, 154, 155(n1), 159(n23), 161(n14), 162(n22) Latin American and Caribbean Network of Smallholder Fair Trade Producers, 107 Latouche, Serge, 82–3 Least developed countries, see developing countries Lesotho, 135 Liberalism, 63, 67, 68, 74; neoliberal critique, 1, 59, 68–74, 84, 126, 146, 156(n4); neoliberalism, 3, 4, 6, 7, 41–3, 56, 59, 72, 120, 139–45, 146, 151, 162(n26), 163(n1) Liberia, 135 List, Friedrich, 8, 25; see also Protectionism Logistics Performance Index, 89, 137 Lomé Convention 155(n2) Low Income Food Deficit Countries, 135 Luxembourg, 162(n29) Madagascar, 135 Magnusson, Lars, 63–8, 71 Malawi, 134, 135 Malaysia, 155(n1) Maldives, 135 Mali, 134, 135 Market Access Overall Trade Restrictiveness Index, 30 Mars, 21 Marx, Karl, 60, 62, 75, 87, 157(n3) Marxist (tradition), 75, 76, 82, 157(n11) Mauritania, 135 Max Havelaar (novel), 39 Max Havelaar (label), 6, 39–40, 44–5, 130, 139, 157(n4), see also Fairtrade Max Havelaar (labelling initiatives), France, 46, 127, 156(n9), 158(n10), 159(n23), 160(n25), 161(n6); Switzerland, 127 McDonald’s, 77, 78, 79 Mexico, 3, 38, 79, 98, 114, 118, 131, 132, 133, 134, 136, 137, 139, 155(n1), 157 (n4), 159(n20), 161(n17) Mercantilism, 64–7 Microfinance, 1 Middle East, 15, 49 Mill, John Stuart, 65 Millennium development goal(s), see Development Mises (von), Ludwig, 42 Mohan, Sushil, 101–2 Monde (Le), 159(n19) Mont Pelerin Society, 42 Mozambique, 135 Multatuli, see Max Havelaar (novel) Multinationals, 19, 21, 41, 47, 53, 55, 56, 77–81, 140, 147, 149, 157(n13), 158(n5), 160(n26) Myers, Norman, 23, see also hamburger connection Nadel, Henri, 76 National sovereignty, 33, 64, 152 Neoclassical economics, 4, 11; 42, 65, 66, 72, 74, 82, 94–5, 140; general equilibrium theory, 99; gravity models, 162(n20) Neoliberalism, see liberalism Nepal, 135 Nestlé, 21, 78 Netherlands, 3, 20, 38, 39, 40, 54, 160 (n26), 162(n29); Groningen, 70; Kerkrade, 36 Network of European World Shops (the), 44, 46 New York, 157(n3) New York Times (the) 159 (n15) NGO, 3, 36, 38, 46, 47, 50, 53, 116, 117, 138 Nicaragua, 133, 134 Niche, 38, 70, 77 Niger, 135 Nigeria, 21 Nokia, 85–6, 125 Non-tariff barriers, 26–7, 30, 90 176 Sylla T02779 02 index 176 28/11/2013 13:04 index North America, 24, 35, 40, 44, 53, 136 North American Free Trade Agreement (NAFTA), 136 North-North relations, 31, 54, 80, 108 North-South relations, 1, 16–33, 34, 35, 40, 41, 43–4, 61–2, 73, 80, 87, 90, 97, 105–9, 126, 135, 140–5, 147, 148, 149, 163(n2), see also dependency theory Norway, 28, 162(n29) Oceania, 9, 24, 129, 131, 154 Organic production, 9, 53–5, 79, 92, 96, 112, 115, 160(n1) Organisation for Economic Co-operation and Development (OECD), 28–9; OECD countries, 10, 15, 21, 28, 29, 30, 42, 131, 144 Overall Trade Restrictiveness Index, see Market Access Overall Trade Restrictiveness Index Oxfam, 30, 32, 36, 38, 72, 122 Pakistan, 36 Palestine, 35 Panama, 134 Papua New Guinea, 134 Penson, Jonathan, 138 Peru, 114, 133, 134, 159(n20), 160(n26) Philippines, the, 155(n1) Pitt, William, 8 Polanyi, Karl, 75, 140 Popper, Karl, 42, 58–60 Portugal, 23, 65 Poverty, 2, 7, 10, 11, 33, 35, 36, 40, 58, 62, 68, 79, 84, 85–6, 95, 97–100, 103, 105, 109, 113, 114, 119, 122, 125, 131, 132, 137, 142, 143, 144, 145, 147, 148 Prebisch, Raúl, 17, 38 Price volatility, 17–18, 66, 86, 109 Primary product dependency, 10, 16, 90, 121, 132–8, 140–1, 147 Primary product financialisation, 17–8 Problem of induction, 110 Producer organisations, 3, 80, 98, 118–19, 157(n3), 159 (n16); certification, 45, 48, 49, 51, 91, 109, 111; 159(n20), 160(n4); selection bias, 81, 116–17, 132–9, 159(n23), 160(n26); shortcomings of the Fairtrade model, 97, 107–9, 138, 142–3, 162(n25); statistics, 51–3, 123–4, 130–1, 132–4, 161(n11) Producer support Estimate, 28–9; see also OECD Productive theory, 64–5, 75 Protectionism, 5, 25–33, 63, 67–8, 71–2, 145; infant industries protection, 25, 32, 37, 66, 67; see also free trade Puerto Rico, 35 Purchasing Power Parity, 153 Quinoa, 54, 159(n15) Rainforest Alliance, 53–6 Reagan, Ronald, 42 Ricardo, David, 65–7 Rist, Gilbert, 34 Rodrik, Dani, 73–4 Roozen, Nico, 3, 38–43, 54, 70, 87–8, 98, 139, 158(n4), 163(n1) Rowntree, Joseph, 72, Ruben, Ruerd, 113–17, 160(n27) Rugmark, 47 Rwanda, 134, 135, 138, Sachs, Jeffrey, 162(n23) Sao Tomé and Principe, 134, 135 Saint Lucia, 91, 134 Saint-Vincent and the Grenadines, 91, 134 Sales Exchange for Refugee Rehabilitation and Vocation (SERRV), 35–6 Samoa, 135 Samsung, 85–6, 125 Sara Lee, 70 Schumpeter, Joseph A., 63, 156(n3) Second World War, 35, 42 Selection bias, see producer organisations SELFHELP Crafts (shops), see Ten Thousand Villages Senegal, 134, 135 Sharif, Mohammed, 94–5 Sidwell, Marc, 68–73 Sierra Leone, 135 Singapore, 155(n1) Singer, Hans, 17; see also Structuralist school Slavery, 60–2, 75 177 Sylla T02779 02 index 177 28/11/2013 13:04 the fair trade scandal Slavery footprint, 156(n2) Smith, Adam, 8, 63–8, 75–6, 156(n3) Smith, Alastair M., 132, 156(n4) Smithsonian Migratory Bird Center, Bird-friendly Coffee programme, 54 Social capital, 101, 117, 119 Solidaridad, 3, 38–9, 114; see also Roozen Solomon Islands, 135 Somalia, 135 SOS Wereldhandel; see Fair Trade Organisatie Spaghetti bowl, 27 South Africa, 136, 137, 159(n20), 162(n21) South South relations, 80, 149, 163(n2) Sri Lanka, 134 STABEX, see Export earnings stabilisation system Starbucks, 77, 78, 150; Coffee and farmer equity practices, 55 Stigler, Georges, 42 Stiglitz, Joseph E. and Charlton, Andrew, 31–3, 66 Structural adjustment policies, 17, 18, 42 Structuralist school, 37–8 Sudan, 135 Sugar, 16, 27, 30, 36, 60–2, 80, 85, 90 Sustainable Agriculture Network, 53 Sustainability, 4, 24, 34, 47, 50, 53, 55, 56, 57, 70, 79, 113, 138, 142, 149–50, 158(n5) Sustainable development, 4, 34, 47, 55, 70, 82, 83, 156(n2), 163(n1) Sustainable Fair Trade Management System, 45; see also World Fair Trade Organization Sweden, 63, 162(n29) Switzerland, 53, 127, 128 System for Minerals (Sysmin), 155(n2) Taiwan, 155(n1) Tanzania, United Republic of, 134, 135 Tariff escalation, 26–8, 30 Tariff peaks, 30 Tax havens, 157(n13) Tea, 40, 49, 52, 53, 54, 56, 80, 130, 133, 134, 136 Ten Thousand Villages, 35–6 Thailand, 155(n1) Thatcher, Margaret, 42 Third Worldism, 36–40, 120 Times (the), 160(n2) Timor Leste, 135 Togo, 134, 135, 155(n2) Torrens, Robert, 65 Trade not aid (slogan), 38, 40, 126 Trade structure, 9, 10, 133–8, 141, 154, 163(n2); see also Developing countries Traders, 20, 44, 49, 86, 106, 116–17, 140 Transfair USA, additional income transferred, 125, 128, 130–1, 153; 161(n9), 161(n11); budget and licensee fees, 127–8, 153; exit from Fairtrade, 161(n13); name change, 161(n9); sales, 161(n10) Tribune (La), 159(n18) Truman, Harry, 34, 35 Turkey, 155(n1) Tuvalu, 135 UCIRI (Union de Comunidades Indigenas de la Region del Istmo), 98, 157(n4) Uganda, 134, 135, 138 Un Comtrade, 20, 134 Underdevelopment, see development Unequal exchange, 1–2, 16–22, 25, 37, 62, 76, 120, 132, 133; unequal ecological exchange, 22–4 United Nations, 10, 144, 155(n4) United Nations Conference on Trade and Development (UNCTAD), 9, 10, 13, 14, 16, 20–1, 38, 133, 134, 135, 154, 162(n19), 162(n21), 163(n2) United Kingdom, 8, 25, 31, 32, 36, 46, 53, 56–7, 60–2, 64–9, 71, 127, 128, 132 United States, 16, 20, 22, 23, 25, 27, 29, 31, 32, 35, 36, 42, 46, 53, 54, 61, 63, 67, 71, 79, 90, 125, 127, 128, 130, 131, 132, 136, 156(n2), 158(n8), 158(n9); American System, 26, 67; United States Agency for International Development (USAID), 138; see also Transfair USA UTZ Certified, 54, 55, 56, 70 Van der Hoff, Frans, 3, 38–43, 87–9, 98, 139, 158(n4), 158(n5), 162(n26), 163(n1) 178 Sylla T02779 02 index 178 28/11/2013 13:04 index Vanuatu, 135 Vent for surplus theory, 65 Vertical integration, 19–21, 41 Vietnam, 74 Wage, 79, 80, 158(n7), 160(n26), 160(n27), 161(n5); minimum wage, 51, 95, 98; reservation wage, 94–5; wage employment, 19, 72, 94, 123–4, 128, 131, 133, 137, 142, 162(n22) Wal-Mart, 78, 79 Washington Consensus, 73 Wealth of Nations, see Smith, Adam West Indies, 60–2, Williams, Eric, 60–2 Williamson, Jeffrey G., 162(n27) World Bank, 17, 31, 42; development indicators, 9, 10–12, 15, 30, 89, 131, 137, 153, 161(n7, n14, n17) World Fair Trade Organization, 44–5, 46, 80, 151 World-system theory, 76 World Trade Organization, 26, 28, 29, 31–3, 74, 144, 155(n3) Yemen, 135 Zambia, 135 179 Sylla T02779 02 index 179 28/11/2013 13:04 Sylla T02779 02 index 180 28/11/2013 13:04


pages: 223 words: 10,010

The Cost of Inequality: Why Economic Equality Is Essential for Recovery by Stewart Lansley

"Robert Solow", banking crisis, Basel III, Big bang: deregulation of the City of London, Bonfire of the Vanities, borderless world, Branko Milanovic, Bretton Woods, British Empire, business cycle, business process, call centre, capital controls, collective bargaining, corporate governance, corporate raider, correlation does not imply causation, creative destruction, credit crunch, Credit Default Swap, crony capitalism, David Ricardo: comparative advantage, deindustrialization, Edward Glaeser, Everybody Ought to Be Rich, falling living standards, financial deregulation, financial innovation, Financial Instability Hypothesis, floating exchange rates, full employment, Goldman Sachs: Vampire Squid, high net worth, hiring and firing, Hyman Minsky, income inequality, James Dyson, Jeff Bezos, job automation, John Meriwether, Joseph Schumpeter, Kenneth Rogoff, knowledge economy, laissez-faire capitalism, light touch regulation, Long Term Capital Management, low skilled workers, manufacturing employment, market bubble, Martin Wolf, mittelstand, mobile money, Mont Pelerin Society, Myron Scholes, new economy, Nick Leeson, North Sea oil, Northern Rock, offshore financial centre, oil shock, plutocrats, Plutocrats, Plutonomy: Buying Luxury, Explaining Global Imbalances, Right to Buy, rising living standards, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, shareholder value, The Great Moderation, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, too big to fail, Tyler Cowen: Great Stagnation, Washington Consensus, Winter of Discontent, working-age population

She had first read his teachings while studying chemistry at Somerville College, Oxford, just after the war. ‘This is what we believe’ she announced excitedly, waving a well-worn copy of his major work, The Constitution of Liberty, during one of her speeches after becoming leader of the Conservative Party. Born in Austria, Hayek moved to teach at the London School of Economics in 1931. In 1947 the political philosopher helped establish the Mont Pelerin Society—an international network of ideologues committed to unregulated markets—and named after the Swiss spa near Geneva where the group of founders first met. The Society had one central aim: to build opposition to the post-war economic and welfare reforms. In the United States, the case for free markets was promoted by organisations like the Foundation for Economic Education and the American Enterprise Association and in the UK by a small Westminster-based think thank called the Institute for Economic Affairs (IEA).

For British advocates, improved rewards at the top, it was claimed, would correct for the failings of post-war welfare capitalism, lift Britain out of its tepid entrepreneurial culture and bring renewed economic dynamism. For the new right thinkers, egalitarianism had gone too far, while allowing inequality to rise was a necessary condition for economic success. As Ludwig von Mises, based in New York, one of the leading post-war pro-market theorists and a founding member of the Mont Pelerin Society, had written in 1955: ‘Inequality of wealth and incomes is the cause of the masses’ well being, not the cause of anybody’s distress…. Where there is a lower degree of inequality, there is necessarily a lower standard of living of the masses.’50 Although greater reliance on markets would mean the wealth gap might grow, all citizens would still be better off through an expanded economic cake.


pages: 391 words: 22,799

To Serve God and Wal-Mart: The Making of Christian Free Enterprise by Bethany Moreton

affirmative action, American Legislative Exchange Council, anti-communist, Berlin Wall, big-box store, Bretton Woods, Buckminster Fuller, collective bargaining, corporate personhood, creative destruction, deindustrialization, desegregation, Donald Trump, estate planning, Fall of the Berlin Wall, Frederick Winslow Taylor, George Gilder, global village, informal economy, invisible hand, liberation theology, longitudinal study, market fundamentalism, Mont Pelerin Society, mortgage tax deduction, Naomi Klein, new economy, post-industrial society, postindustrial economy, prediction markets, price anchoring, Ralph Nader, RFID, road to serfdom, Ronald Reagan, Silicon Valley, Stewart Brand, strikebreaker, The Wealth of Nations by Adam Smith, union organizing, walkable city, Washington Consensus, white flight, Whole Earth Catalog, Works Progress Administration

The American Studies department and the NEP—technically a separate entity, in the interests of Harding’s accreditation—continued to devote themselves to promoting free-Â�market economics as a sacred political cause. The NEP, for example, helped publicize a Young Americas Foundation study blaming the Reagan recession on pervasive Keynesianism in college economics textbooks.100 American Studies regularly hosted supporters of the Austrian school of hard-Â�right economics from the Mont Pelerin Society and its American offshoot, the Foundation for Economic Education. The college celebrated the nation’s bicentennial with a program honoring the concurrent two hundredth anniversary of the publication of The Wealth of Nations.101 In 1979, Harding’s business department took the additional step of establishing the Belden Center for Private Enterprise Education, named in honor of an inÂ�deÂ�penÂ�dent Arkansas manufacturer.

One of the very first of the conservative think-Â�tanks that were to remake public policy, the Foundation for Economic Education focused on popularizing strict free-Â�market theories—“neoliberal” economics, in the terminology that confounds Americans’ political binary—by organizing potential opinion-Â�makers. Led by Read from its 1946 founding until his death in 1983, the Foundation for Economic Education drew its initial intellectual resources from economists like Ludwig von Mises, Fred Fairchild, and Leo Wolman.5 In 1947, Read was present at the creation of Frederick Hayek’s Mont Pelerin Society, the international gathering in Switzerland that launched the hard-Â�right Austrian school of economics as a force in the United States and Britain.6 Over the next deÂ�cades, the staff of the Foundation for Economic Education spread their alternative economic vision around North America. To inÂ�fluÂ�ence the climate of opinion on college campuses, the Foundation in 1948 began hosting short-Â�term seminars, exchanges, and conferences on its Hudson Valley estate.

See also Immigrants Mises, Ludwig von, 195 Military, 4, 10, 26, 37–40, 55, 60, 88, 108, 117, 137, 165–166, 203, 211, 223-225, 227, 249, 280n12, 330n42 Miller-Tydings Act, 19 Missionaries, 161, 164–165, 167, 187, 210, 220, 228, 236–240, 250–251, 262, 270, 340n69 Missouri, 11, 20, 45, 58, 187, 191, 201, 206; race in, 10; Populism in, 14, 16; colleges/universities in, 26, 186, 208; nearness to Wal-Mart’s base, 27; Wal-Mart stores in, 28, 61, 76, 80, 93; businesses in, 150, 217. See also speÂ�cific towns and institutions Modernity/modernism, 7, 9, 20, 23, 86, 117 Mom-and-pop stores, 52–54 Monopolies/trusts, 14–22, 24, 26, 30, 52 Monopsony, 211 Mont Pelerin Society, 167, 195, 241 Moral Majority, 3–4, 8, 119, 131, 215 Moravians, 229, 235, 337n23 Mormons, 3, 9, 115, 119 Motherhood, 120 Multinational corporations, 29, 172, 229, 243, 246, 250, 268 365 INDEX Nader, Ralph, 152, 201; Taming the Giant Corporation, 182 Nation, The, 18–20 National Anti–Chain Store League, 20 National Association of Evangelicals, 87, 224 National Association of Manufacturers, 184, 213, 327n61, 344n27 National Bipartisan Commission on Central America, 224–227 National Education Program, 166–168 National Federation of IndeÂ�penÂ�dent Businesses, 212, 327n61 Nationalism, 248–249 Nationalization, 152, 344n23 National Labor Relations Board, 178, 184 National Retail Federation, 259 National Review Institute, 215 Native Americans, 29–30, 44, 90, 164 Navigators, 97, 117 Neoconservatism, 148, 214, 224 Neoliberalism, 126, 195, 268, 312n2 New Christian Right, 3–4, 87–88, 111, 131, 193, 196, 215, 238, 250 New Deal, 2, 10, 30, 32, 34, 40, 44, 53, 55, 57, 88, 126, 165, 264, 269, 287n25 New Orleans, LA, 163, 190, 264–271 Nicaragua, 222–224, 229, 233, 235, 249, 336n11, 337n23 Nixon, Richard M., 2–3, 41, 145, 149, 162, 169, 182, 186, 203, 286n19 Noriega, Manuel, 227, 236 Norris, J.


pages: 482 words: 149,351

The Finance Curse: How Global Finance Is Making Us All Poorer by Nicholas Shaxson

activist fund / activist shareholder / activist investor, Airbnb, airline deregulation, anti-communist, bank run, banking crisis, Basel III, Bernie Madoff, Big bang: deregulation of the City of London, Blythe Masters, Boris Johnson, Bretton Woods, British Empire, business climate, business cycle, capital controls, carried interest, Cass Sunstein, Celtic Tiger, central bank independence, centre right, Clayton Christensen, cloud computing, corporate governance, corporate raider, creative destruction, Credit Default Swap, cross-subsidies, David Ricardo: comparative advantage, demographic dividend, Deng Xiaoping, desegregation, Donald Trump, Etonian, failed state, falling living standards, family office, financial deregulation, financial innovation, forensic accounting, Francis Fukuyama: the end of history, full employment, gig economy, Gini coefficient, global supply chain, high net worth, income inequality, index fund, invisible hand, Jeff Bezos, Kickstarter, land value tax, late capitalism, light touch regulation, London Whale, Long Term Capital Management, low skilled workers, manufacturing employment, Mark Zuckerberg, Martin Wolf, Mont Pelerin Society, moral hazard, neoliberal agenda, Network effects, new economy, Northern Rock, offshore financial centre, old-boy network, out of africa, Paul Samuelson, plutocrats, Plutocrats, Ponzi scheme, price mechanism, purchasing power parity, pushing on a string, race to the bottom, regulatory arbitrage, rent-seeking, road to serfdom, Robert Bork, Ronald Coase, Ronald Reagan, shareholder value, sharing economy, Silicon Valley, Skype, smart grid, Social Responsibility of Business Is to Increase Its Profits, South Sea Bubble, sovereign wealth fund, special economic zone, Steve Ballmer, Steve Jobs, The Chicago School, Thorstein Veblen, too big to fail, transfer pricing, wealth creators, white picket fence, women in the workforce, zero-sum game

The meeting was attended by Hayek and by many other famous economists and thinkers, including Milton Friedman, Ludwig von Mises, George Stigler, Frank Knight, Karl Popper and Lionel Robbins. The meeting was financed by Switzerland’s three largest banks, its two largest insurance companies, the Swiss central bank, the Bank of England and City of London interests. Hayek himself, after leaving the London School of Economics in 1950, ‘never held a permanent appointment that was not paid for by corporate sponsors’. The ambition of the Mont Pèlerin Society, born at that meeting, was utopian, even messianic, envisaging private-sector heroes overturning the dark forces of authoritarian state control. ‘We must raise and train an army of fighters for freedom,’ declared Hayek, ‘to work out, in continuous effort, a philosophy of freedom.’ Economic freedom would deliver political freedom. A tide of corporate money began to flow into a new network of radical think tanks, which pushed these ideas.

The Metcalf quote is from Stephen Metcalf, ‘Neoliberalism: the idea that swallowed the world’, Guardian, 18 August 2017. The Davies quote is from Will Davies, Limits of Neoliberalism: Authority, Sovereignty and the Logic of Competition, Sage, 2014, pp.3 and 8; and from Will Davies, ‘How “competitiveness” became one of the great virtues of contemporary culture’, LSE blogs, 19 May 2014. 15. The history of the Mont Pelerin Society is well known. For the financing of the Mont Pelerin meeting, see Nicholas Shaxson, Treasure Islands: Tax Havens and the Men Who Stole the World, Vintage, 2012, pp.83–4 and 301. 16. Wallace E. Oates, ‘The Effects of Property Taxes and Local Public Spending on Property Values: An Empirical Study of Tax Capitalization and the Tiebout Hypothesis’, Journal of Political Economy 77:6, November – December 1969, pp. 957–71. 17.

122, 136–7 Cadbury’s 113 Cameron, David 48 Capital Group 84 capital requirements 148–63 Careline Homecare Limited 190–3, 202–5, 206, 216, 220 care sector 4, 190–4, 202–9, 216–17, 220, 228, 229, 234 Carillion 46, 231, 237 Carlyle Group 214 Carvalho, Arnaldo Lago de 233 Cassano, Joe 161 Cayman Islands 1, 2, 3, 59–60, 62, 63–7, 93, 125, 136, 140, 141, 145, 150, 151, 152, 153–4, 157, 162, 179, 188, 200, 211, 228, 242 Cayman Trust Law (1967) 62 Celtic Tiger (Ireland economy) 4, 115, 116–39 Central Bank of Ireland 129, 136 Cheney, Dick 244 Cherwell, Lord 53 Chicago School 28, 29, 30, 46, 71, 74, 98, 110, 197, 209, 253 China 13, 23, 50, 55, 84, 85, 87, 92, 104, 108, 110, 117, 138, 200, 258, 262–7, 272, 274 China General Nuclear Power Corporation (CGN) 262–3 Chinese Communist Party (CCP) 258, 264, 265, 266, 267, 272 Christensen, John 5, 11, 48, 67–8 Christensen, Professor Clayton 197, 198 Citibank/Citigroup 11, 59, 83, 129, 140, 159 City of London 37, 38, 84, 92–3, 183, 185, 252, 271, 272, 273; Big Bang 104, 143–4; capture of British establishment 13, 142, 166–7, 257–60, 265, 266; Chinese influence upon 262–7; evidence machine/lobbying and 257–60; financial brain drain and 6, 108, 259; global financial crisis and see global financial crisis; monopolies and 84; neoliberalism and 37, 38; organised crime and other abusive activities linked to 11–12, 93, 97, 141–6, 154, 166, 167, 168; penetrated and captured by reckless global finance (London loophole) 140–68; rebirth as global financial centre after fall of British empire 4, 10, 50–69; tax havens and see tax havens; Third Way and 92–3, 97, 98, 102, 104, 108, 109, 113; UK economy and growth in size of 5–14, 108, 218–40, 257–61, 262–74 City of London Corporation 257–8 Clearing House Group 130–1 Clinton, Bill 91, 97, 101, 114, 115, 122, 159 Clinton, Hillary 91, 100 Coase, Ronald: The Problem of Social Cost 72–4, 79 Coelho, Tony 98–9 Cohen, Benjamin J. 57 Cohen, Sheldon 254 collateralised debt obligations (CDOs) 165, 235 collateralised loan obligations (CLOs) 165, 200 Commodity Futures Modernisation Act (CFMA) (2000) 159–60 Community Mental Health Fund, Missouri 44 comparative advantage concept 105, 108 Competition and Markets Authority 70 competitiveness of nations/competitiveness agenda 8–9, 13–14, 23, 28–49, 62, 68, 70–1, 73, 80, 95, 97–8, 100–15, 130, 131, 132–3, 136, 142, 143, 149, 159, 160, 161, 164, 165, 180–1, 184–5, 207, 218, 241–3, 246–7, 250, 252–3, 258, 266, 267, 270, 271, 273 Conservative Party 37, 53, 71, 78, 102, 157, 165, 168, 220, 229 consultants 40, 41, 42–3, 66, 117, 230, 232, 233 controlled foreign company (CFC) reforms, U.K. 249–50 Cook Islands 177, 186, 272 Cornfield, Bernie 93 corporation: complexity of 3, 205–6; concept of 196–7 credit, control of 21 credit default swap (CDS) 128, 141, 147, 155–9, 165 Credit Suisse 11, 180, 183 crime/criminal money 12, 56, 58, 61, 62, 63, 64–5, 93–4, 142–3, 144, 145, 153, 154, 167–8, 175, 180, 187, 223, 264, 272, 273 Cromwell, William 22 Daily Mail 113, 251, 252 Darling, Alistair 257 Davidson, Charles 182, 189 Davidson, Kenneth 81, 252 Davies, Will 36, 39, 102 Deaton, Angus 181 debt 7, 34, 58, 69, 121, 152, 160, 165, 169, 186, 190, 193–6, 198–201, 205, 206–7, 208, 210, 215, 221, 234, 235, 244, 248, 262 Delaware, U.S. 181 Deloitte 235, 237 Delors, Jacques 100 Democratic Party, U.S. 39, 97, 98–100, 102, 141, 245 Deng Xiaoping 117 Depfa 133 deregulation, financial 13, 31, 35, 64–5, 68–9, 91, 97, 104, 107, 109, 117–18, 138, 142, 143, 146, 152, 159–60, 164, 165, 260 derivatives 12, 140–1, 142, 144, 146–7, 149, 151, 155, 158–60, 161, 164, 193 Desmond, Dermot 129–30 de Tocqueville, Alexis 75–6 Deutsche Bank 83, 95, 111, 160 Devereux, Professor Mike 243 Director, Aaron 71–2, 78, 79 DIRT (Deposit Interest Retention Tax) 136 Down’s Syndrome North East Association (UK) (DNSE) 169–70, 174 Drexel Burnham Lambert 161, 195 drugs: gangs/money 12, 61, 64–5, 92, 142–3, 145, 167, 185–6; pharmaceutical/Big Pharma 85–6, 126, 247 Dunbar, Nicholas 152, 161 dynamic scoring/dynamic modeling 253–4 East India Company 50, 75 Eddy, Bruce 44 Efficient Markets Hypothesis 150 Elf Affair 94, 187 Enron 46, 141, 165, 235–6 Epstein, Professor Gerald 10–11, 259; Overcharged: The High Costs of Finance 10– 11 Ernst & Young 163, 235, 238 Espino, Ovidio Diaz: How Wall Street Created a Nation 23 Essilor 82; EssilorLuxottica 82 Eurodollar markets/Euromarkets 55–9, 60, 61, 62, 63, 64, 68, 69, 77, 91, 93, 104, 142 European Central Bank (ECB) 137 European Commission (EC) 84, 94, 100, 111, 137; Liikanen Report (2012) 135 European Economic Community (EEC) 77, 98, 118, 123, 124–5 European Round Table of Industrialists (ERT) 100 European Union (EU) 98, 109–10, 111, 124, 132, 147, 238 Export Profits Tax Relief 118 Facebook 23, 71, 84, 88, 171, 173, 185, 226, 271, 274 fallacy of composition 107–8, 247 Fallon, Padraic 124 Fanning, John 126 Fantus Factory Location Service 40 Farm Aid 87–8 Federal Reserve Bank of New York 57 Ferguson, Niall: The Ascent of Money 242 Fiat 250 Finance Acts, Ireland: (1968) 120; (1987) 131 finance curse, concept of 3–14, 15, 18, 19, 22, 31, 37, 48, 68, 71, 103, 108, 111, 132, 136, 174, 184–5, 193, 198, 216, 228, 239, 257, 261, 265, 267, 269, 270, 271, 272, 273, 274 financial capture 13, 68, 96, 153, 257, 259, 265, 266 Financial Conduct Authority (FCA) 25–6, 246 financial crisis, global (2007–8) 4, 6, 25, 83, 90, 99, 109, 113, 114, 116, 128, 130, 133–4, 135–6, 140–68, 169, 195, 202, 224–5, 233, 235, 236, 240, 257 financialisation 2–4, 6, 9, 10, 11, 37, 68–9, 71, 88, 90, 174, 180, 185, 190, 191, 194, 198, 205, 217, 224, 225, 226, 228, 232, 259, 267, 274 Financial Services Authority (FSA) 104, 160, 161, 166, 167 Financial Stability Board (FSB) 83 Financial Times 68, 84, 94, 107, 146, 214, 218, 226, 232, 243, 256 Finger, Bernd 168 Fischel, William 38 Fordism 80 foreign direct investment (FDI) 110, 118–19, 123, 124, 132, 250 Fox News 71, 253 Franks, Oliver 52 Fraser, Ian: Shredded 227 free markets 18–19, 71–2, 99, 126, 128, 241 free-rider problem 30–1, 43, 47, 38 free trade 31, 50–1 Friedman, Milton 28, 30, 37, 59, 72, 73–4; ‘The Social Responsibility of Business Is to Increase Its Profits’ 196–7, 198, 209 Friedmaniacs 28, 30 FTSE 100 228, 238 Gapper, John 232–3 Gash, Tom 230 Gates, Bill 127, 185 Gauke, David 249 Gaydamak, Arkady 186 Gazprom 84 GDP (gross domestic product) 6, 8, 111, 112, 123, 147, 153, 174, 241, 245, 254, 256, 260, 266 General Electric (GE) 86–7 Gensler, Gary 140–1 Gibraltar 60, 63 Giddens, Anthony: The Third Way 105 Gilbert, Martin 83 Gilead 85–6 Giles, Chris 218 Glasman, Baron 258 Glass-Steagall Act (1933) 76, 147, 158–9 globalisation 10, 35, 59, 93, 94–5, 97, 98, 101, 102, 103, 106, 107, 109, 165, 177, 251, 254 Golden Age of Capitalism 34, 69, 91, 92, 118, 196, 251, 254–5 Goldman Sachs 113, 159, 160, 183, 213, 235, 242 Google 71, 88, 226, 271 Graphite Capital Partners VIII A LP 191–2, 205, 206 Great Depression (1929–39) 31, 98 Greenspan, Alan 75, 159, 160 gross national income (GNI) 112, 119, 122–3, 134 Guernsey 60, 181, 191, 220, 222 Hahneman, Daniel 181 Haldane, Andrew 225 Hands, Guy 181 Hansen, Lee 28 happiness, wealth and 181–3, 189 Harlech, Lord 34 Harrington, Brooke 186, 188 Hartnett, Dave 113 Harvard Business School 101, 196, 197 Harvie, Alicia 87–8 Harvoni 86 Haughey, Charles 114–15, 120–3, 129–30, 136 Hayek, Friedrich 35–6, 37, 59, 76; The Road to Serfdom 36, 37 Hayes, Jerry 229 Heaton, David 234 hedge funds 6, 13, 83, 104, 108, 128, 130–1, 140–1, 154, 164, 177, 178, 189, 193, 200, 209, 213, 214–15, 217, 233 Henry, James 166, 260 Hewlett-Packard 39–40 Hinkley C 262–3 HMRC 62, 104, 113, 168, 173, 234, 241, 242, 245, 246, 249, 252–4; Computable General Equilibrium model 241, 252–4 HNWI (high net worth individuals) 180; ultra-HNWI 180 Hodge, Margaret 168, 239 Hofri-Windogradow, Adam 180 Hong Kong 50, 130, 138, 171–2, 266 HSBC 12, 54, 83, 107–8, 167, 266 Hundred Group 242 Hunt Companies 221 HypoVereinsbank 133 Industrial Development Authority (IDA), Ireland 118, 124–5, 126, 129, 131, 135 inequality 4, 11, 31, 34, 36, 47, 48, 59, 90, 109, 138, 179, 187, 225, 251, 255, 256, 257, 259, 267–8, 270, 272, 274 inflation 34, 80, 107, 129 Innes, Abby 229 Institute for Fiscal Studies (IFS) 247 Intel 125 internal rate of return (IRR) 198, 211 International Financial Services Centre (IFSC), Dublin 128–35, 251 International Monetary Fund (IMF) 137, 164, 219, 250, 251, 257 International Public Partnerships Limited (INPP) 220–1 International Swaps and Derivatives Association (ISDA) 158 Intruders 113 Investec Wealth & Investment Limited 220 investment funds 2, 88, 110, 140 Investors Overseas Services (IOS) 93 Iran 53–4 Ireland: Celtic Tiger economy in 4, 114–15, 116–39 Isle of Man 60, 136 Jackson County, Missouri, U.S. 44 Jenkins, Robert 11 Jensen, Professor Michael 196, 197, 198, 209, 215 Jersey 1, 2, 3, 5, 60, 63, 67–8, 131, 136, 169, 171, 173, 174, 202, 221, 222, 223, 228, 258 Jiang Zemin 117 Johnson, Boris 218, 219, 222 Johnson County, Kansas, U.S. 41–4 Johnson, Paul 247 Johnson, Simon 257 Joly, Eva 187 Journal of Political Economy 29, 46 JP Morgan Chase 83, 95, 141, 146, 147, 155, 158, 160, 214 Juncker, Jean-Claude 94–5, 97, 102, 103, 104, 111, 114, 122 Kansas, U.S. 41–4, 244–5, 255–6 Kay, John 9 Kennedy, Edward 78–9 Keynes, John Maynard 31–2, 34, 37, 38, 52, 59, 68, 251 KKR (Kohlberg Kravis Roberts) 2, 3, 195, 214 Koch, Charles 74 Kohlberg Junior, Jerome 194, 195, 199 Kohl, Marius 95 KPMG 114, 235, 237, 238–9 Kraft Heinz 81, 113 Kravis, Henry 2, 195 Kroes, Neelie 110 Krugman, Paul: ‘Competitiveness: A Dangerous Obsession’ 105 Labour Party 77, 97, 102–5, 132, 192, 220, 247, 257 Lack, Simon 214; The Hedge Fund Mirage 214 Laffer, Arthur/Laffer curve 244–5, 254 Lazonick, Bill 225, 226 Leaver, Professor Adam 207, 224–5, 234 Lehman Brothers 140, 162–4 Leigh-Pemberton, Robin 145 LeRoy, Greg 40–1 leveraged buyout (LBO) 195–6 Levin, Carl 134 Liberty Global 250 Libor (London Inter-Bank Offered Rate), manipulation of 12, 85, 109, 166 Linares, Adolfo 185, 188 Linklaters 163 Lloyds Bank 52 Local Government Association (LCA) 224 Loch Alpine Economics 253 London School of Economics (LSE) 37, 105, 229 London Stock Exchange (LSE) 167, 220 London Whale 141 Long-Term Capital Management (LTCM) 140–1 Luxembourg 1, 2, 3, 13, 55–6, 92, 93–7, 98, 111–13, 125, 130, 138, 142, 166, 201, 211, 221, 222, 228, 243 Luxleaks scandal (2014) 95, 109 Luxottica 82 Lycamobile 168 Lydian Capital Partnership 202 Lynn, Barry 87, 88 Macdonald, Ken 168 Macmillan, Harold 34, 53–4 MacSharry, Ray: The Making of the Celtic Tiger 118, 127 Madoff, Bernie 94, 96 Madrid, Miguel de la 58 Major, John 220 Maloney, Carolyn 141 Manafort, Paul 183 Manne, Henry 74 Marchant, David 157 Marx, Karl 15, 18 Masters, Blythe 158 Maugham, Jolyon 156 Maurer, Ueli 45–6 Mazerov, Michael 255 McAlpin, Clovis 62 McCarthy, Joseph 29 McCarthy, Justine 119 McCreevy, Charlie 132 McDonald, Duff 197 Mellon, Tamara 208 mergers and acquisitions (M&A) 26, 71, 81, 82, 83, 84, 87, 99, 110, 155, 225, 226, 251 Metcalf, Stephen 36 Microsoft 125, 185 Midland Bank 34, 54–5 Milken, Michael 195 Missouri, U.S. 41, 43, 44, 244–5, 255 money laundering 12, 145–6, 167, 168, 183 Money Trust Investigation, U.S. Congress 21–2 monopolies 3, 19, 21, 22, 23, 24–5, 33, 35, 70–91, 98, 99, 100, 101, 110–11, 178, 185, 217, 225, 226, 231, 237, 251, 252, 269, 270, 271, 274 Mont Pèlerin Society 37 Montecino, Juan 10–11, 259; Overcharged: The High Costs of Finance 10–11 Morgan, J. P. 21, 22, 76, 77, 84 Morgenthau, Henry 33 Morgenthau, Robert 145 Moriarty Tribunal (2006) 136 Morris, Peter 196, 212, 215 Mossack Fonseca 66–7 Moulton, Jon 163 Munger, Charlie 235 Murdoch family 70–1, 80 Murphy, Richard 169, 170 National Archives 59, 66 National Audit Office 224, 229, 240 National City Brokers 129 Nazi Party 35, 52, 76, 77, 111 neoliberalism 28–49, 69, 72, 74, 76, 97, 101, 103, 188, 232, 260 network effects 84 Network Rail 227 New Deal, U.S. 33, 55, 68, 71, 76 New Labour 97, 102–5, 220, 257 Newton Investment Management Limited 220 New York Stock Exchange (NYSE) 21, 167 NHS (National Health Service) 36, 86, 223 Niue 66–7 Northern Ireland 39, 120, 126, 137–8 Northern Rock 165, 169–70, 173, 174, 185 Northwestern University 28, 29 Oates, Wallace 38, 39, 40, 45, 46 OECD 8, 186, 263; Common Reporting Standard 269 Offshore Alert 157 Ó hUigínn, Pádraig 130 oil sector 4–5, 6, 7, 8, 19–21, 25, 26–7, 53–4, 58, 59, 71, 76, 77, 85, 94, 126, 146, 182, 219, 225, 233 O’Leary, Olivia 126–7 Opco-Propco shuffle 201–2 Open Markets Institute 80, 99, 271 Operation Robot 52–3 Opium Wars 50 O’Regan, Brendan 117 Ormond Quay 133 Osborne, George 167, 219, 234, 238, 262 O’Toole, Fintan 116; Ship of Fools 116, 121–2, 123, 138 outsourcing 87, 90, 203, 223, 224, 226–7, 229–32, 234, 240 Oxford University Centre for Business Taxation 242–3 Packard, David 39–40 Palan, Professor Ronen 64 Panama 22–4, 64, 66–7, 176, 185–6, 188 Panama Canal Company of America 22–4 Panama Papers 66–7, 109, 268 Payton, Stanley 60–1, 62 pension funds 200–1, 206, 207, 210, 212, 213, 214, 216, 223 perpetuities 181 Phalippou, Ludovic 212, 215 Piper, Steve 255 Ponzi schemes 93, 96, 145, 177 Porter, Michael 101; The Competitive Advantage of Nations 101 Portes, Jonathan 106 Posner, Richard 74, 79, 80 Potts, Robin 157, 158 predatory pricing 78, 81 Price Waterhouse/Price Waterhouse Coopers (PwC) 62, 68, 95, 129, 137, 167, 235, 236, 237, 239 private equity 4, 26, 83, 103, 181, 190–217, 226, 231, 233, 234, 240, 269, 272 Private Equity, Public Loss report (2010) 212 Private Eye 113, 114 private finance initiative (PFI) 103, 220–4, 228 Project Troy 201 Promoting Employment Across Kansas programme 43 protectionism 51, 106 Prowse, David 210–11 Public Accounts Committee (PAC) 168, 239 public services 4, 30, 39, 47, 69, 224, 256 Railtrack 231 Rand, Ayn 75 Reagan, Ronald 80, 87, 99, 146 Redwood, John 143 rehypothecation 163–4 relocation, company 39–49, 116–39, 250, 266 repo 162–4 resource curse 5, 219 return on invested capital (ROIC) 198 return on net assets (RONA) 198 Reuters 4, 250 Revealed Preference Theory 29 Ricardo, David 105, 108 Ridley, Matt 185 Rising Tide Foundation 216 Roberts, George 2, 195 Rockefeller, John D. 19–21, 26, 31, 71, 76 Rodrik, Dani 254 Roosa, Robert 57 Roosevelt, F.


pages: 780 words: 168,782

Strange Rebels: 1979 and the Birth of the 21st Century by Christian Caryl

anti-communist, Ayatollah Khomeini, Berlin Wall, Bretton Woods, British Empire, colonial rule, Deng Xiaoping, financial deregulation, financial independence, friendly fire, full employment, income inequality, industrial robot, Internet Archive, Kickstarter, land reform, land tenure, liberal capitalism, liberation theology, Mahatma Gandhi, means of production, Mikhail Gorbachev, Mohammed Bouazizi, Mont Pelerin Society, Neil Kinnock, new economy, New Urbanism, oil shock, open borders, open economy, Pearl River Delta, plutocrats, Plutocrats, price stability, rent control, road to serfdom, Ronald Reagan, single-payer health, special economic zone, The Chicago School, union organizing, upwardly mobile, Winter of Discontent, Xiaogang Anhui farmers, Yom Kippur War

A few years earlier he had published a book called The Road to Serfdom, an articulate polemic about the perils of liberty in a world where planners increasingly reigned. Most of those in the British establishment dismissed the book’s ideas. (That did not stop it from becoming a surprise best-seller in the United States.) Most of the men—and they were, in fact, all men—who came together to form the Mont Pèlerin Society (named after the resort where they met) drew their intellectual sustenance from three particular universities: the London School of Economics, the University of Chicago, and the University of Vienna. It was these three universities that would deliver many of the crucial theoretical and academic underpinnings for the liberal counterrevolution the new society hoped to unleash. Among the men present were Milton Friedman, Ludwig von Mises, and Karl Popper—each of whom would help to reshape twentieth-century discourse about political liberty and market economics in the decades to come.

The results, in far too many cases, were inefficiency, corruption, and chronic inflation. The main intellectual alternative to the reigning consensus in global economics emerged from the so-called Chicago School, a term that was first applied in the 1950s to a group of free-market economists who came together at the University of Chicago. Their most famous theoretician was Milton Friedman, a founding member of the Mont Pèlerin society and a gifted polemicist for the cause of economic liberalism. The Chicago School did not content itself with merely generating ideas. It also turned out an enormously influential crop of international economists who later played direct roles in the process of economic reform in their home countries.23 Friedman and his colleagues did much to prepare the way for Thatcher’s economic counterrevolution by promoting the new thinking during the 1970s.

See also under Poland Martyrs, 197, 216, 223, 292, 298 Marxism, 9, 11, 12, 13, 14, 16, 25, 29, 38–39, 60, 72, 100, 102, 105, 111, 121–122, 202, 206, 342, 355 Islamic Marxism, 114 See also Communism; Socialism Massoud, Ahmed Shah, 103–105, 228, 272, 310, 311, 359 Mawdudi, Abul Ala, 112, 219–220, 221, 227, 306, 344 Mecca/Medina, 223, 224, 234, 296, 300 Media, 42, 90, 108, 121, 144, 172, 175, 198, 239, 241, 242, 245, 246, 283, 298, 311, 334, 336 in Poland, 199, 205, 207, 208, 280 See also Press; Television Meisner, Maurice, 179 Merino, Gustavo Gutiérrez, 78 Methodism, 58–59, 342 Mexico, 3, 78–79, 354 Michnik, Adam, 199, 206, 282, 285 Middle class, 43, 45, 47, 58, 109, 138, 140, 149, 157, 158 Mileposts (Qutb), 220–221 Militaries, 7, 11, 15, 19, 24, 27, 28, 29, 30, 39, 40, 42, 90, 97, 98–99, 119, 134, 171, 188, 270, 292 Iranian military, 148–149, 152 mutiny/defections in Afghan army, 214, 262 special forces, 266, 272, 274 See also People’s Republic of China: People’s Liberation Army Militias, 119, 149, 150, 152, 154, 206, 211, 216, 217, 238, 242, 297, 298 Millar, Ronnie, 183, 314 Missiles, 13, 268, 269, 273 Modarres, Seyyed Hassan, 87, 88 Modernization, 7, 8, 11, 12, 34, 35, 38, 42, 43, 44, 45, 48, 75, 92, 100, 110, 112, 126, 131, 132, 134, 166, 173, 174, 218, 294, 324, 340, 352, 355, 357–358 socialist modernization, 135 See also People’s Republic of China: and Four Modernizations Mohammad (Prophet), 219, 222, 223 Money supply/monetarism, 6, 53, 61, 62, 159, 166, 167, 185, 186, 187, 188, 190, 193–194, 313, 315, 317 Montazeri (Ayatollah), 296 Mont Pèlerin Society, 161–162, 324 Moral Majority, 360 Mosher, Steven, 249, 253 Mossadeq, Mohammed, 7, 42, 46, 88, 109, 230 Motahhari, Morteza (Ayatollah), 113, 142, 152 Mountbatten (Lord), 188 Mousavi, Mir-Hossein, 348 Mujahideen, 215, 267, 270, 304, 305, 307, 356, 357 feuding among, 271, 310 Mujahideen-e Khalq (MEK), 149, 151, 212, 241–242, 298 Mullahs, 12, 37, 39, 40, 226, 227, 294, 301, 349 Murdoch, Rupert, 181, 194 Muslim Brotherhood, 91, 104, 112, 219, 220, 223, 226, 346 Muslims, 40, 47, 96, 102, 105, 110.


pages: 526 words: 160,601

A Generation of Sociopaths: How the Baby Boomers Betrayed America by Bruce Cannon Gibney

1960s counterculture, 2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, affirmative action, Affordable Care Act / Obamacare, American Society of Civil Engineers: Report Card, Bernie Madoff, Bernie Sanders, Bretton Woods, business cycle, buy and hold, carbon footprint, Charles Lindbergh, cognitive dissonance, collapse of Lehman Brothers, collateralized debt obligation, corporate personhood, Corrections Corporation of America, currency manipulation / currency intervention, Daniel Kahneman / Amos Tversky, dark matter, Deng Xiaoping, Donald Trump, Downton Abbey, Edward Snowden, Elon Musk, ending welfare as we know it, equal pay for equal work, failed state, financial deregulation, Francis Fukuyama: the end of history, future of work, gender pay gap, gig economy, Haight Ashbury, Home mortgage interest deduction, Hyperloop, illegal immigration, impulse control, income inequality, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Jane Jacobs, Kitchen Debate, labor-force participation, Long Term Capital Management, Lyft, Mark Zuckerberg, market bubble, mass immigration, mass incarceration, McMansion, medical bankruptcy, Menlo Park, Mont Pelerin Society, moral hazard, mortgage debt, mortgage tax deduction, neoliberal agenda, Network effects, obamacare, offshore financial centre, oil shock, operation paperclip, plutocrats, Plutocrats, Ponzi scheme, price stability, quantitative easing, Ralph Waldo Emerson, RAND corporation, rent control, ride hailing / ride sharing, risk tolerance, Robert Shiller, Robert Shiller, Ronald Reagan, Rubik’s Cube, school choice, secular stagnation, self-driving car, shareholder value, short selling, side project, Silicon Valley, smart grid, Snapchat, source of truth, stem cell, Steve Jobs, Stewart Brand, survivorship bias, TaskRabbit, The Wealth of Nations by Adam Smith, Tim Cook: Apple, too big to fail, War on Poverty, white picket fence, Whole Earth Catalog, women in the workforce, Y2K, Yom Kippur War, zero-sum game

The Wealth of Nations (note, however, that Smith, while favoring a limited role for government and emphasizing the market’s superior ability to organize itself, did endorse certain specific roles for the government, like the post, and the encouragement of certain industries—these specifics have now been lost to the generality of Smith’s Invisible Hand). 5. Harris, Ethan S. Ben Bernanke’s Fed: The Federal Reserve After Greenspan. Harvard Business Review Press. 15 July 2008, ch. 12. There are several similar, but slightly different versions of this quote floating around, but the substance is always the same. 6. “Statement of Aims.” The Mont Pelerin Society. www.montpelerin.org/statement-of-aims/. 7. “Mont Pelerin Society Directory 2010.” Re-created by DeSmogBlog. www.desmogblog.com/sites/beta.desmogblog.com/files/Mont%20Pelerin%20Society%20Directory%202010.pdf. 8. “‘Goldwater Girl’: Putting Context to a Resurfaced Hillary Clinton Interview.” NPR. 26 Mar. 2016, www.npr.org/2016/03/26/471958017/-goldwater-girl-putting-context-to-a-resurfaced-hillary-clinton-interview?version=meter+at+7&module=meterLinks&pgtype=article&contentId=&mediaId=&referrer=https%3A%2F%2Fwww.google.com%2F&priority=true&action=click&contentCollection=meter-links-click. 9.

As for neoliberalism, it was not only ideologically impure, which was incompatible with the sociopath’s distaste for nuance, the theory also didn’t provide as many attractive social benefits and was irritatingly obsessed with fiscal restraint. Even as the original neoliberalism developed, the purists assembled their forces. Influential thinkers like von Mises as well as Friedrich Hayek, Karl Popper, and Milton Friedman founded the Mont Pelerin Society to fight for laissez-faire.* Per its website, Society members saw—and still saw as of this book’s printing—“danger in the expansion of government, not least in state welfare, in the power of trade unions and business monopoly, and in the continuing threat and reality of inflation.”6 Despite the Society’s obscurity—a search of the New York Times archives produces only a handful of references, with more about the resort than the Society itself—it has nevertheless been exceedingly influential.


Worldmaking After Empire: The Rise and Fall of Self-Determination by Adom Getachew

agricultural Revolution, Bretton Woods, British Empire, collective bargaining, colonial exploitation, colonial rule, failed state, financial independence, Gunnar Myrdal, land reform, land tenure, liberal world order, market fundamentalism, means of production, Monroe Doctrine, Mont Pelerin Society, Peace of Westphalia, Ronald Reagan, Scramble for Africa, structural adjustment programs, trade liberalization, transatlantic slave trade

Economic decision-­ making was thus no longer a site of political contestation but an arena of technical and legal expertise, better left to economists and lawyers rather than politicians. [ 174 ] Ch a pter Fi v e The rise of neoliberal economics, which extended far beyond the halls of international institutions, gave ideological shape to this displacement of the NIEO and launched a counterrevolution against the aspiration for an egalitarian global economy. For neoliberal economists associated with the Mont Pèlerin Society, the demand for equality threatened the “self-­ equilibrating system of the world economy.”140 While order had meant a global economy that aimed toward redistributive justice for the NIEO’s proponents, from the perspective of neoliberals order entailed a fluctuating system in which actors respond to market stimuli without a preconceived end state in mind.141 In reforms to GATT and international investment law, the neoliberal counterrevolution prevailed against the NIEO.

Manley, 180; mechanisms of, 174; and NIEO, 144; and poor nations, 164; regional, 131, 143 Martinique, 116 Marx, Karl: Capital, 3; Communist Man­ ifesto, 3, 73 Marxism, 4, 68, 76, 77, 81, 83, 145, 167 Marxists, 168 Mazzini, Giuseppe, 76 Médecins Sans Frontières (Doctors Without Borders), 104 metropole, 49, 78, 82, 111, 112 mines, 72, 82 Mitchell, Timothy, 50 Mobutu, Joseph, 100 modernization, 28, 148, 214n4 modernization theory, 147, 148, 152 Monroe Doctrine, 118 Mont Pèlerin Society, 174 most favored nation standard, 164, 165 Movement for Black Lives, 181 Moyn, Samuel, 92 Moynihan, Daniel Patrick, 176–­77, 178 Mozambique, 87 Mussolini, Benito, 69 Myrdal, Gunnar, 144, 159, 160–­62, 218n77; Beyond the Welfare State, 149, 161; Eco­ nomic Theory and Underdeveloped Regions, 148–­49; “The Equality Issue in World Development,” 162 Nardal, Paulette, 5, 184n16 nationalism, 159; and Berlin, 76; as compatible with internationalism, 170; congenital defects of, 30; and democratic state, 27; and economic development, 143–­44; good vs. bad, 27; and Habermas, 27; and Lenin, 37–­ 38; and liberalism, 26, 27; and liberal universalism, 28; as necessary for national independence, 24; pathological character of, 26; and postcolonial di- index lemmas, 25; and regional federations, 110; and United States of Europe, 113 National Party (South Africa), 48 nation-­building, 2, 11; and dependen­ cies after decolonization, 17; and ex­ ternal forces, 12; and internal instability, 29; international conditions for, 24; and international market, 144, 157; and NIEO, 167, 174; and self-­ determination, 15, 180; socialist, 154, 156, 157, 163; and worldmaking, 4, 15, 17, 22, 24, 28, 106, 154, 180 nation-­state, 96, 181; and anticolonial nationalism, 25; and decolonization, 112; decolonization as diffusion of, 26; decolonization as globalization of, 16; empirical and normative limits of, 30; as majoritarian, homogenizing, and exclusionary, 179; as normative, 4; rights of, 29; rise of, 3; and self-­ determination, 16; territorial form of, 25; universalization of, 1, 16, 112 Native Americans, 19–­20, 118 native rulers, 83–­84 natural resources, 89, 90, 91–­92, 144, 153, 170, 180, 215n17.


pages: 395 words: 116,675

The Evolution of Everything: How New Ideas Emerge by Matt Ridley

"Robert Solow", affirmative action, Affordable Care Act / Obamacare, Albert Einstein, Alfred Russel Wallace, AltaVista, altcoin, anthropic principle, anti-communist, bank run, banking crisis, barriers to entry, bitcoin, blockchain, Boris Johnson, British Empire, Broken windows theory, Columbian Exchange, computer age, Corn Laws, cosmological constant, creative destruction, Credit Default Swap, crony capitalism, crowdsourcing, cryptocurrency, David Ricardo: comparative advantage, demographic transition, Deng Xiaoping, discovery of DNA, Donald Davies, double helix, Downton Abbey, Edward Glaeser, Edward Lorenz: Chaos theory, Edward Snowden, endogenous growth, epigenetics, Ethereum, ethereum blockchain, facts on the ground, falling living standards, Ferguson, Missouri, financial deregulation, financial innovation, Frederick Winslow Taylor, Geoffrey West, Santa Fe Institute, George Gilder, George Santayana, Gunnar Myrdal, Henri Poincaré, hydraulic fracturing, imperial preference, income per capita, indoor plumbing, interchangeable parts, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Isaac Newton, Jane Jacobs, Jeff Bezos, joint-stock company, Joseph Schumpeter, Kenneth Arrow, Kevin Kelly, Khan Academy, knowledge economy, land reform, Lao Tzu, long peace, Lyft, M-Pesa, Mahatma Gandhi, Mark Zuckerberg, means of production, meta analysis, meta-analysis, mobile money, money: store of value / unit of account / medium of exchange, Mont Pelerin Society, moral hazard, Necker cube, obamacare, out of africa, packet switching, peer-to-peer, phenotype, Pierre-Simon Laplace, price mechanism, profit motive, RAND corporation, random walk, Ray Kurzweil, rent-seeking, reserve currency, Richard Feynman, rising living standards, road to serfdom, Ronald Coase, Ronald Reagan, Satoshi Nakamoto, Second Machine Age, sharing economy, smart contracts, South Sea Bubble, Steve Jobs, Steven Pinker, The Wealth of Nations by Adam Smith, Thorstein Veblen, transaction costs, twin studies, uber lyft, women in the workforce

The day was cold and the wind was bumpy, and the aeroplane crew were frankly bored. Presently the battery signaller sent a message, “Battery out of action for an hour; remain aloft awaiting orders.” Back came the reply with remarkable promptitude: “This machine is not fitted with skyhooks.”’ From the Feilding Star (New Zealand) 15 June 1915. On the implications of Darwinism, Arnhart, Larry 2013. The Evolution of Darwinian Liberalism. Paper to the Mont Pelerin Society June 2013. On Lucretius, Greenblatt, Stephen 2012. The Swerve. Vintage Books. On Dawkins and Lucretius, Gottlieb, Anthony 2000. The Dream of Reason. Allen Lane/The Penguin Press. On Lucretius’s influence on Western thought, Wilson, Catherine 2008. Epicureanism at the Origin of Modernity. Oxford University Press. On Newton and Lucretius, Jensen, W. 2011. Newton and Lucretius: some overlooked parallels.

How Adam Smith Can Change Your Life. Penguin. Also Kennedy, G. 2013. Adam Smith on religion, in the Oxford Handbook on Adam Smith. Oxford University Press. And Foster, Peter 2014. Why We Bite the Invisible Hand. Pleasaunce Press. And Butler, Eamonn 2013. Foundations of a Free Society. IEA On liberalism and evolution, Arnhart, Larry 2013. The Evolution of Darwinian Liberalism. Paper to the Mont Pelerin Society June 2013. On the decline of violence, Pinker, Steven 2011. The Better Angels of Our Nature. Penguin. On medieval violence, Tuchman, Barbara 1978. A Distant Mirror. Knopf. On Lao Tzu, Blacksburg, A. 2013. Taoism and Libertarianism – From Lao Tzu to Murray Rothbard. Thehumanecondition.com. On bourgeois values, McCloskey, Deirdre N. 2006. The Bourgeois Virtues. University of Chicago Press.


pages: 354 words: 118,970

Transaction Man: The Rise of the Deal and the Decline of the American Dream by Nicholas Lemann

Affordable Care Act / Obamacare, Airbnb, airline deregulation, Albert Einstein, augmented reality, basic income, Bernie Sanders, Black-Scholes formula, buy and hold, capital controls, computerized trading, corporate governance, cryptocurrency, Daniel Kahneman / Amos Tversky, dematerialisation, diversified portfolio, Donald Trump, Elon Musk, Eugene Fama: efficient market hypothesis, financial deregulation, financial innovation, fixed income, future of work, George Akerlof, gig economy, Henry Ford's grandson gave labor union leader Walter Reuther a tour of the company’s new, automated factory…, index fund, information asymmetry, invisible hand, Irwin Jacobs, Joi Ito, Joseph Schumpeter, Kenneth Arrow, Kickstarter, life extension, Long Term Capital Management, Mark Zuckerberg, mass immigration, means of production, Metcalfe’s law, money market fund, Mont Pelerin Society, moral hazard, Myron Scholes, new economy, Norman Mailer, obamacare, Paul Samuelson, Peter Thiel, price mechanism, principal–agent problem, profit maximization, quantitative trading / quantitative finance, Ralph Nader, Richard Thaler, road to serfdom, Robert Bork, Robert Metcalfe, rolodex, Ronald Coase, Ronald Reagan, Sand Hill Road, shareholder value, short selling, Silicon Valley, Silicon Valley ideology, Silicon Valley startup, Social Responsibility of Business Is to Increase Its Profits, Steve Jobs, TaskRabbit, The Nature of the Firm, the payments system, Thomas Kuhn: the structure of scientific revolutions, Thorstein Veblen, too big to fail, transaction costs, universal basic income, War on Poverty, white flight, working poor

A few years earlier, Milton Friedman, the conservative economist, had joined the Chicago economics department, and Friedman’s brother-in-law, Aaron Director, had become a professor at the university’s law school. Friedman and Director were both protégés of Hayek’s, deeply influenced by him; Director had arranged for Hayek’s appointment in Chicago. Friedman and Hayek were among the founders, in 1947, of the Mont Pelerin Society, which convened market-oriented intellectuals every summer in Switzerland. Michael Jensen was conservative in an almost automatic way—in the sense that he deeply mistrusted the idea that government could improve social conditions—but political ideology wasn’t his professional interest. What he was interested in was the stock market, and that was another Chicago specialty. In 1932 a newspaper heir named Alfred Cowles had founded an economic research institute in Colorado, and in 1939 he had relocated it to the University of Chicago.

Metcalfe, Bob Metcalfe’s law Mexico: factories moved to; immigrants from microeconomics; see also corporations Microsoft middle class; corporations as benefit to; corporations as hindrance to; regulation to support; as stockholders; see also Chicago Lawn Middle-earth liberalism Milgram, Stanley Milken, Michael Miller, Merton Mills, C. Wright Mind Dynamics MIT Mitsubishi mobile devices Modern Corporation and Private Property, The (Berle and Means) Modigliani, Franco Moley, Raymond Mondelez money market funds money trust Mont Pelerin Society Moreno, Jacob Morgan, Henry Morgan, J. P.; Morgan Stanley and Morgan, J. P., Jr. Morgan Stanley; bailout of; board of; changes to in 1970s; commercial banks vs.; compensation at; in competition with its clients; corporate clients of; debt of; deregulation and; derivatives and; diversity at; elitism of; expansion of; fixed-income department at; founding of; as global company; government employees from; IPO of; Jensen honored by; junk-bond department of; largest loss at; mergers and acquisitions at; mortgaged-backed securities and; price setting by; prime brokerage at; research department at; shareholders as clients of; Silicon Valley and; size of; syndicate system at; trading at; in 2008 financial crisis Morison, Samuel Eliot mortgages; adjustable-rate; collapse of subprime market of, see 2008 financial crisis; federal involvement in; loan modifications for; predatory; racial politics of; securities backed by; state regulation of; as unregulated; see also 2008 financial crisis Moss, John Musk, Elon mutual funds; inflation and; statistical study of My Years with General Motors (Sloan) Nabisco Nader, Ralph Napster Nashashibi, Rami Nation, The National Automobile Dealers Association National Economic Council National Industrial Recovery Act (NIRA) National Labor Relations Board “Nature of the Difficulty, The” (Berle) “Nature of the Firm, The” (Coase) Nazis; in U.S.


pages: 504 words: 126,835

The Innovation Illusion: How So Little Is Created by So Many Working So Hard by Fredrik Erixon, Bjorn Weigel

"Robert Solow", Airbnb, Albert Einstein, American ideology, asset allocation, autonomous vehicles, barriers to entry, Basel III, Bernie Madoff, bitcoin, Black Swan, blockchain, BRICs, Burning Man, business cycle, Capital in the Twenty-First Century by Thomas Piketty, Cass Sunstein, Clayton Christensen, Colonization of Mars, commoditize, corporate governance, corporate social responsibility, creative destruction, crony capitalism, dark matter, David Graeber, David Ricardo: comparative advantage, discounted cash flows, distributed ledger, Donald Trump, Elon Musk, Erik Brynjolfsson, fear of failure, first square of the chessboard / second half of the chessboard, Francis Fukuyama: the end of history, George Gilder, global supply chain, global value chain, Google Glasses, Google X / Alphabet X, Gordon Gekko, high net worth, hiring and firing, Hyman Minsky, income inequality, income per capita, index fund, industrial robot, Internet of things, Jeff Bezos, job automation, job satisfaction, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, joint-stock company, Joseph Schumpeter, Just-in-time delivery, Kevin Kelly, knowledge economy, laissez-faire capitalism, Lyft, manufacturing employment, Mark Zuckerberg, market design, Martin Wolf, mass affluent, means of production, Mont Pelerin Society, Network effects, new economy, offshore financial centre, pensions crisis, Peter Thiel, Potemkin village, price mechanism, principal–agent problem, Productivity paradox, QWERTY keyboard, RAND corporation, Ray Kurzweil, rent-seeking, risk tolerance, risk/return, Robert Gordon, Ronald Coase, Ronald Reagan, savings glut, Second Machine Age, secular stagnation, Silicon Valley, Silicon Valley startup, Skype, sovereign wealth fund, Steve Ballmer, Steve Jobs, Steve Wozniak, technological singularity, telemarketer, The Chicago School, The Future of Employment, The Nature of the Firm, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, too big to fail, total factor productivity, transaction costs, transportation-network company, tulip mania, Tyler Cowen: Great Stagnation, uber lyft, University of East Anglia, unpaid internship, Vanguard fund, Yogi Berra

Nor was the emerging system of global governance a synonym for neoliberalism. It was rather “embedded liberalism” – a Keynesian and social democratic vision of the management rather than the liberalization of global affairs – that guided politics.11 Economic freedom in the world expanded and regulations were changed. Yet regulations were not abolished; nor were reforms of regulations embraced by the Mont Pelerin Society, the group faithful to classical market liberalism. During the second phase of globalization, the parallel trend to market liberalization was a reconstructed belief in the capacity of smart people to control complex economic aggregates. Together with other believers in a mathematical approach to economic life, the likes of Greenspan and Rubin heralded an economic cosmos that was made and managed by political fiat.

(i), (ii), (iii) Lewis, Michael, Liar’s Poker (i) liberalism classical market liberalism (i) economic liberalism and technology (i) embedded liberalism (i) vs. government intervention (i) neoliberalism (i) License Raj (India) (i), (ii) Lidl (i) Life Magazine, on Milwaukee-Matic (i) life-or-death competition (i), (ii), (iii), (iv) Linaburg Maduell Transparency Index (LMTI) (i) Lindgren, Astrid (i) listed companies and mergers and acquisitions (i) and ownership (i) and predictability (i) Litan, Robert (i) LMTI (Linaburg Maduell Transparency Index) (i) lobbying (i), (ii), (iii), (iv), (v) Locke, John (i) logistics hubs (i), (ii) logistics industry, and lean production (i) London Stock Exchange, and sovereign wealth funds (i) LoopPay (i) Lord Voldemort (Harry Potter books character) (i), (ii) Lyft (i) M&As (mergers and acquisitions) (i), (ii), (iii), (iv) McAfee, Andrew, The Second Machine Age (Brynjolfsson and McAfee) (i), (ii) McCloskey, Deirdre (i) McKinsey (i), (ii) McKinsey Global Institute (i) McLaughlin, Patrick (i) Maddison, Angus (i) Madoff, Bernie (i) Mainelli, Michael (blockchain study) (i) make-or-buy question (i), (ii), (iii) Malkin, Michelle (i) The Man in the Gray Flannel Suit (Sloan Wilson) (i) “man of system” (Adam Smith) (i) managerialism see corporate managerialism Mandel, Michael (i) Mannering, Fred (transportation expert) (i), (ii)n21 Mansfield, Edwin (i) manufacturing (i), (ii), (iii), (iv), (v), (vi) Marconi, Guglielmo (i) market vs. capitalism (i), (ii) complexity (i) concentration (i), (ii), (iii), (iv), (v) dominance by big firms (i) failure and firms (i) liberalization (i), (ii), (iii) and modern portfolio theory (i) uncertainty (i), (ii) see also deregulation; external capital markets; firm boundaries; labor markets; market contestability; public markets; regulation; stock markets market contestability boosting contestability, ways of (i) and deregulation (i) and economic dynamism (i), (ii) and global trade (i) and globalist worldview (i) and globalization (2nd phase) (i), (ii) and innovation (i), (ii), (iii), (iv), (v), (vi) and lean production in car industry (i) and managerialism (i), (ii) vs. market concentration (i) and multinationals (i) and occupational licenses (i), (ii) and oligopolistic (or monopolistic) competition (i) and performance imperatives (i) and performance tools and methods (i) and productivity (i), (ii) and regulation (i), (ii) and services sector (i), (ii) and strategy (i) and telecom network services (i) market socialism (i) marketing (i) Markowitz, Harry (i) Marris, Robin (i) Mars (company) (i) Mars (planet) (i) Marx, Karl (i), (ii), (iii), (iv), (v), (vi) Communist Manifesto (Marx and Engels) (i), (ii) Mason, Paul (i) mass affluent (i) Mauborgne, Renée (i) Blue Ocean Strategy (Kim and Mauborgne) (i) Means, Gardiner (i) mechanistic cognition (i) medical/healthcare sector and regulation (i), (ii), (iii), (iv) and robotics (i) see also corporate medical research; pharmaceutical sector meetings (i), (ii), (iii) MelaFind (i), (ii) Memphis International Airport, Federal Express (FedEx) hub (i) mercantilism (i), (ii), (iii), (iv), (v) Mercedes-Benz cars, French ban on (i) mergers and acquisitions (M&As) (i), (ii), (iii), (iv) MetLife (i) metrics (i), (ii) “Mexican standoff” metaphor (i) Mexico, North American Free Trade Agreement (i) Michaels, Guy (i) Microsoft (i), (ii), (iii), (iv), (v), (vi) Middle Ages, economy and innovation (i) “middle-aged” capitalism (i), (ii), (iii) Mill, John Stuart (i) Millennials (i) Milne, Alistair (blockchain study) (i) Milwaukee-Matic (i) Minsky, Hyman, “money manager capitalism” (i) MIT Media Lab (i) MIT Technology Review, Graylin on e-wallets (i) mobile banking, in Africa (i) mobile phones/technology (i), (ii), (iii), (iv), (v), (vi) see also Nokia mobile subscription market, and globalization (i) modern portfolio theory (i) Modi, Narendra (i) Mokyr, Joel (i), (ii), (iii)n41 “money manager capitalism” (Hyman Minsky) (i) monopolistic (or oligopolistic) competition (i) monopoly, theory of (John Hicks) (i) Monsanto (i) Mont Pelerin Society (i) Moody’s (i) Moore, Wilbert, The Conduct of the Corporation (i) Morieux, Yves (i) Morrison, William (i) Motorola (i), (ii) Mouchot, Augustin (i) moving-target regulations (i) Mr. Chance (Being There character) (i), (ii) multinational (global) companies characteristics of (i), (ii) and competition (i) and corporate cash savings (i) and dispersed ownership (i) and firm boundaries (i), (ii) and foreign direct investment (FDI) (i), (ii) and global trade (i), (ii) vs. home-market firms (i) and innovation (i) as logistics hubs (i) and market concentration (i), (ii) and market contestability (i) and private standards (i) and productivity (i), (ii) and R&D (i) and regionalization of Asia’s trade growth (i) and regulation (i) reputation of (i) and “slicing up” of value chains (i) and specialization (i), (ii) and supply chains (i) and transaction costs (i) see also big firms; globalization; globalization (overview) Musk, Elon (i), (ii), (iii) mutual funds (i), (ii) nanotechnology (i), (ii), (iii) NASA (i) Nasdaq, and sovereign wealth funds (i) national accounts (recorded data), vs. real value of improvements (i), (ii) National Science Foundation (US) (i) neoconservatism (i) neoliberalism (i) nepotism (i) net lending see corporate net lending Netherlands exports to China (i) taxi services and regulation (i) “new economy” (i) New England Journal of Medicine, medical devices study (i) New Machine Age thesis background: economic realities vs. technological blitz vision (i), (ii), (iii), (iv), (v), (vi), (vii); historical perspective (i) criticism of thesis: cyclical effects on productivity argument (i); jobs and technology issue (i); productivity/income decoupling issue (i), (ii); recorded data vs. real improvements argument (i), (ii); summary (i) and fear of artificial intelligence (i) and planning machine economic philosophy (i) and Robert Gordon on US labor productivity growth (i) see also The Second Machine Age (Brynjolfsson and McAfee) New York City dockers and containerization (i) taxi services and regulation (i), (ii) New York Stock Exchange (i), (ii), (iii), (iv), (v) see also Wall Street New York Times, on Bell’s telephone invention (i) NICs (newly industrialized countries) (i) Nietzsche, Friedrich (i), (ii) nimby (not-in-my-backyard) attitude (i) NM Electronics (Intel) (i), (ii), (iii) Nobel Peace Prize, and Twitter (i) “noise” (at work) (i) Nokia and corporate managerialism (i), (ii), (iii), (iv), (v), (vi) and Foxconn (i) and specialization (i) and tablet market (i) non-entrepreneurial planning (i) North American Free Trade Agreement (i) Norway, sovereign wealth fund (i), (ii), (iii) not-in-my-backyard (nimby) attitude (i) Obama, Barack (i), (ii) obsolescence see knowledge obsolescence occupational licenses (i), (ii), (iii), (iv) OECD (Organisation for Economic Co-operation and Development) on aging firms and innovation (i) on corporate savings (i) on “diffusion machine” and productivity (i) GDP forecasts (i) on intermediaries and shareholders’ income (i) on pension funds and PPRFs (i) on R&D skill deficiencies (i) on regulatory administration costs (i) on sovereign wealth funds (i) on taxi services (i) OECD countries product market regulation (PMR) indicators (i), (ii) R&D spending (i) start-ups (i) total assets by types of institutional investors (2001–13) (i), (ii) “off-license” sectors (i) “offshore” pattern of innovation (i) oligopolistic (or monopolistic) competition (i) Ollila, Jorma (i), (ii) Olson, Mancur (i) “one percent” (wealthiest group) (i) online services and diffusion of innovations (i), (ii) and recorded economic data (i) and regulation (i) see also internet open source technology, and socialism (i) organic cognition (i) Organisation for Economic Co-operation and Development see OECD; OECD countries organization industrial organization (i), (ii) vs. managerialism/technostructure (i) and multinationals (i) and specialization (i) Organization Man (i), (ii) organizational diversification (i), (ii) Osborne, Michael (i) outsourcing (i) ownership see capitalist ownership; institutional owners Palo Alto Research Center (PARC, Xerox) (i) “Panama Papers” story (i) Parisian taxis, and regulation (i) patents, and knowledge obsolescence (i) pay see incomes payment cycles (i) payment technologies (i) pensions and asset management industry (i) and gray capitalism (i), (ii), (iii), (iv) need for reform (i) pension crisis (i) pensioners vs. working-age households incomes (i) and principal–agent debate (i) private pensions (i), (ii) public/state pensions (i), (ii), (iii), (iv), (v); public pension funds and reserve funds (OECD, 2001–13) (i), (ii); public pension return funds (PPRFs) (i) see also retirement Pepsi (i) performance imperatives (i) performance measurements (i) performance tools (i), (ii) permission-based regulatory culture (i), (ii) permissionless innovation (i) pessimism, and capitalist decline (i) Pessoa, João Paolo (i) Pfleiderer, Paul (i) pharmaceutical sector and price regulations (i)n28 R&D investment (i), (ii) and regulation (i), (ii) Phelps, Edmund (i)n41 Mass Flourishing (i), (ii) Piketty, Thomas (i), (ii) PillCam digestive tract sensor (i) Pippi Longstocking (i) planning and corporate managerialism: planning machines (i), (ii), (iii); strategy (i); uncertainty and risk (i) Cybersyn project (i) and failing companies (i) and globalization (i) non-entrepreneurial planning (i) and regulation (i) and “scientific civilization” thinking (i) and spirit of bureaucracy (i) and Swedish economy (i) plastic cards (i) Pliny the Elder, Naturalis Historia (i) Plouffe, David (i) PMR (product market regulation) indicators (i), (ii) policy uncertainty, and investment (i), (ii) political romanticism (i) political world and capitalism as borderless space (i) cronyism , (i), (ii), (iii), (iv) dirigisme (France) (i) government intervention vs. liberalism (i) governments and globalization (i) governments and mobile technology (i) gray-haired voters (i) lobbying (i), (ii), (iii), (iv), (v) and regulation: 1980s–1990s policy changes (i); case of taxi services and Uber (i); political romanticism (i); social regulation (i); trend on the rise (i) and sovereign wealth funds (i), (ii), (iii) see also policy uncertainty; politics politics corporate politics (i), (ii), (iii), (iv) end of and digital age (i) populism (i), (ii), (iii), (iv), (v) see also political world populations aging (i), (ii), (iii) decline (i) populism (i), (ii), (iii), (iv) Porter, Michael (i), (ii) portfolio theory (i) Portugal, lesser dependence on larger enterprises (i) positioning (i), (ii), (iii), (iv) poverty, and globalization (i) PPRFs (public pension return funds) (i) see also pensions precautionary regulations (i), (ii), (iii), (iv) predictability (i), (ii), (iii), (iv), (v), (vi), (vii) see also uncertainty; volatility premature scaling (i), (ii) price index bias (i) Pricewaterhouse Coopers (PwC) on asset management industry (i) on compliance officers in US (i) productivity growth survey (i) on sovereign wealth funds (i) principal–agent problem (i) principal–agent theory (i) prioritizing, and strategy (i) private standards (i) probabilistic decision-making (i), (ii) product market regulation (PMR) indicators (i), (ii) production and computer technology (i) geography of production (i) lean production (i), (ii) and multinationals (i) production costs (i), (ii), (iii) unbundling of: first (i); second (i), (ii), (iii), (iv) see also specialization; supply chains; value chains productivity and containerization (of global trade) (i) and cyclical effects (i) and data economy (i) downward trend (i), (ii) and employment (i) and financial sector growth (i) and foreign operations (i)n46 and globalization (i), (ii), (iii) and ICT intensity (i), (ii) and incomes (decoupling thesis) (i), (ii) key to prosperity (i) low productivity and innovation diffusion problems (i) and market contestability (i), (ii) and multinationals (i), (ii) and regulation (i) and robots (i) total factor productivity (TFP) growth (i), (ii), (iii) and transaction costs (i) UK productivity puzzle (i) professional investment/investors (i), (ii), (iii) see also asset managers professions regulation of (i), (ii) see also occupational licenses profit margins and decoupling (productivity/incomes) thesis (i) and globalization (i), (ii) protectionism (i), (ii), (iii), (iv), (v) public markets and financialization of the economy (i) and mergers and acquisitions (i) public pension return funds (PPRFs) (i) see also pensions public relations campaigns (i), (ii) “put option” (i) PwC see Pricewaterhouse Coopers (PwC) quantitative valuation methods (i) quantum dots (QD) technology (i) R&D (research and development) and corporate net lending (i) and firm boundaries (i), (ii) and multinationals (i) and pharmaceutical products (i), (ii) and policy uncertainty (i) and productivity (i) R&D scoreboards (European Commission) (i), (ii) and regulation (i), (ii), (iii) vs. share buybacks at IBM (i) spending issues (i), (ii), (iii) and sunk costs (i) US R&D investment (i), (ii), (iii) and vertical specialization (i) see also incremental development Rajan, Raghuram (i) rating agencies (i), (ii), (iii) rationalism and globalist worldview (i), (ii) and societal change (i) Reagan, Ronald (i), (ii) real economy, vs. financial economy (i), (ii), (iii), (iv) reallocation of business, and deregulation (i) recorded data (national accounts) vs. real value of improvements (i), (ii) regulation after 1980s–1990s deregulation wave (i), (ii) and bureaucracy brake (Germany) (i) and compliance officers (i) and costs and time lags (i) and decline of capitalism (i), (ii) economic regulation (i), (ii) financial regulations (i), (ii), (iii), (iv) and globalization (i) and gray capitalism (i) and healthcare sector (i), (ii), (iii), (iv) index of regulatory freedom (i), (ii) and industrial policy (i), (ii) and innovation (i), (ii), (iii), (iv), (v), (vi) and labor (i), (ii), (iii), (iv), (v) and lobbying (i) and managerialism (i), (ii) and market contestability (i), (ii) moving-target regulations (i) and multinationals (i) and pensions (i) permission-based regulatory culture (i), (ii) and permissionless innovation (i) and planning (i) and political romanticism (i) and political world (i), (ii) prescriptive vs. proscriptive (i), (ii) private standards (i) and R&D (i), (ii), (iii) and size of companies (i) social regulation (i), (ii) and trade (i), (ii), (iii) see also deregulation; legislation; regulatory complexity/uncertainty regulatory accumulation (i) regulatory bodies (i) regulatory complexity/uncertainty cadmium example (i), (ii) energy sector case (i), (ii) impact on economic growth (i) impact on innovation (i), (ii), (iii), (iv), (v) precautionary regulations (i), (ii), (iii), (iv) regulatory conflicts (i) regulatory/policy uncertainty and investment allocation (i), (ii) rise of regulatory uncertainty (i) see also deregulation; regulation renewable energy see green/renewable energy rent-seeking (i), (ii), (iii) rentier capitalism (i), (ii), (iii), (iv), (v), (vi) rentier formula, resource allocation according to (i) rentiers (i), (ii) reputation management (i) research concept of in corporate world (i), (ii) scientific research (i) see also cancer research; incremental development; R&D Research in Motion (RiM) (i), (ii) retail, and globalization (i) retirement age of (i) savings (i), (ii), (iii), (iv), (v), (vi), (vii) see also pensions Ricardo, David, wine-for-cloth thesis (i) rich people vs. capitalists (i), (ii) high-net-worth individuals (i) mass affluent (i) “one percent” (wealthiest group) (i) risk banks’ proneness to (i) and globalist worldview (i), (ii) and uncertainty (i), (ii) Robertson, Dennis (i) Robinson, James (i) robotics/robots and Asimov/science fiction (i) impact of on society (i) and labor (i), (ii), (iii), (iv), (v); Foxconn example (i) and technology-frustrated generation (i) see also artificial intelligence; automation; driverless vehicles; New Machine Age thesis; technology Rodman, Dennis (i) Rolling Stone (magazine), “Why Isn’t Wall Street in Jail?”


pages: 545 words: 137,789

How Markets Fail: The Logic of Economic Calamities by John Cassidy

"Robert Solow", Albert Einstein, Andrei Shleifer, anti-communist, asset allocation, asset-backed security, availability heuristic, bank run, banking crisis, Benoit Mandelbrot, Berlin Wall, Bernie Madoff, Black-Scholes formula, Blythe Masters, Bretton Woods, British Empire, business cycle, capital asset pricing model, centralized clearinghouse, collateralized debt obligation, Columbine, conceptual framework, Corn Laws, corporate raider, correlation coefficient, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, Daniel Kahneman / Amos Tversky, debt deflation, different worldview, diversification, Elliott wave, Eugene Fama: efficient market hypothesis, financial deregulation, financial innovation, Financial Instability Hypothesis, financial intermediation, full employment, George Akerlof, global supply chain, Gunnar Myrdal, Haight Ashbury, hiring and firing, Hyman Minsky, income per capita, incomplete markets, index fund, information asymmetry, Intergovernmental Panel on Climate Change (IPCC), invisible hand, John Nash: game theory, John von Neumann, Joseph Schumpeter, Kenneth Arrow, Kickstarter, laissez-faire capitalism, Landlord’s Game, liquidity trap, London Interbank Offered Rate, Long Term Capital Management, Louis Bachelier, mandelbrot fractal, margin call, market bubble, market clearing, mental accounting, Mikhail Gorbachev, money market fund, Mont Pelerin Society, moral hazard, mortgage debt, Myron Scholes, Naomi Klein, negative equity, Network effects, Nick Leeson, Northern Rock, paradox of thrift, Pareto efficiency, Paul Samuelson, Ponzi scheme, price discrimination, price stability, principal–agent problem, profit maximization, quantitative trading / quantitative finance, race to the bottom, Ralph Nader, RAND corporation, random walk, Renaissance Technologies, rent control, Richard Thaler, risk tolerance, risk-adjusted returns, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, shareholder value, short selling, Silicon Valley, South Sea Bubble, sovereign wealth fund, statistical model, technology bubble, The Chicago School, The Great Moderation, The Market for Lemons, The Wealth of Nations by Adam Smith, too big to fail, transaction costs, unorthodox policies, value at risk, Vanguard fund, Vilfredo Pareto, wealth creators, zero-sum game

The article shared two attributes with many of Friedman’s subsequent publications. It took a simple economic concept—the law of supply and demand—and applied it to a practical problem; and it proved popular with business interests. The National Association of Real Estate Boards circulated half a million copies. In 1947, Friedman and Stigler went to Switzerland for the first meeting of what became the Mont Pelerin Society, an international association of conservative and libertarian academics. (Hayek attended the meeting, too.) During the 1950s, Friedman took part in a series of conferences organized by the right-leaning William Volker Fund, at which he lectured groups of impressionable young scholars. These talks formed the basis for Capitalism and Freedom, which inspired an entire generation of conservatives.

“Ministry of Production in the Collectivist State, The” (Barone) Minnesota, University of Minsky, Hyman (Mis)Behavior of Markets, The (Mandelbrot and Hudson) Mises, Ludwig von Missal, Michael J. Mobil Oil Modigliani, Franco monetarism Monetary History of the United States, A (Friedman and Schwartz) Money Store, The Monnett, Charles Monopoly (game) monopoly power Montaigne, Michel de Monte Carlo simulation Monthly Review, The Mont Pelerin Society Moody’s Investor Services moral philosophy Morgan, J. P. Morgan Stanley Chinese equity in compensation of CEO of Economics Department of Federal Reserve and reduction in assets of repayment of government loans by subprime mortgage securities issued by Morgenstern, Oskar Morris, Ian Mortgage Asset Research Institute mortgage-backed securities (MBSs) Mortgage Brokers Association for Responsible Lending Mozilo, Angelo Munger, Charles Muolo, Paul Murphy, Kevin Muth, John Myrdal, Gunnar Nagel, Stefan NASDAQ Nash, John National Academy of Sciences National Aeronautics and Space Administration (NASA) National Association for Business Economics National Association of Real Estate Boards National Bureau for Economic Research National Homeownership Strategy National Resources Committee National Socialism, see Nazis Navy, U.S., Pacific Fleet Nazis Netherlands Netscape Communications neuroeconomics New Century Financial Corporation New Deal New Industrial State, The (Galbraith) New Republic, The New School Newsweek Newton, Huey P.


Adam Smith: Father of Economics by Jesse Norman

"Robert Solow", active measures, Andrei Shleifer, balance sheet recession, bank run, banking crisis, Basel III, Berlin Wall, Black Swan, Branko Milanovic, Bretton Woods, British Empire, Broken windows theory, business cycle, business process, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, centre right, cognitive dissonance, collateralized debt obligation, colonial exploitation, Corn Laws, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, David Brooks, David Ricardo: comparative advantage, deindustrialization, Eugene Fama: efficient market hypothesis, experimental economics, Fall of the Berlin Wall, Fellow of the Royal Society, financial intermediation, frictionless, frictionless market, future of work, George Akerlof, Hyman Minsky, income inequality, incomplete markets, information asymmetry, intangible asset, invention of the telescope, invisible hand, Isaac Newton, Jean Tirole, John Nash: game theory, joint-stock company, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, lateral thinking, loss aversion, market bubble, market fundamentalism, Martin Wolf, means of production, money market fund, Mont Pelerin Society, moral hazard, moral panic, Naomi Klein, negative equity, Network effects, new economy, non-tariff barriers, Northern Rock, Pareto efficiency, Paul Samuelson, Peter Thiel, Philip Mirowski, price mechanism, principal–agent problem, profit maximization, purchasing power parity, random walk, rent-seeking, Richard Thaler, Robert Shiller, Robert Shiller, Ronald Coase, scientific worldview, seigniorage, Socratic dialogue, South Sea Bubble, special economic zone, speech recognition, Steven Pinker, The Chicago School, The Myth of the Rational Market, The Nature of the Firm, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, theory of mind, Thomas Malthus, Thorstein Veblen, time value of money, transaction costs, transfer pricing, Veblen good, Vilfredo Pareto, Washington Consensus, working poor, zero-sum game

It was true, he explained, that Smith had said various things that conflicted with them: that he had defended a cap on interest rates, and duties on the state to erect and maintain certain public works and public institutions, potentially including roads, bridges and canals, and to establish schools. But these statements were uncharacteristic blemishes, which should not be allowed to detract from the whole. Now this was a popular article, not a scholarly one. Taken from a paper given to the free-market Mont Pelerin Society, its purpose was to help make the case against what Friedman saw as the economic sclerosis of late 1970s America. But even so, as a case study in adjusting the facts to fit one’s own theory, it is a masterclass. For much of Friedman’s account is hopelessly wide of the mark. Adam Smith was not a radical, and did not see himself as one; he does not seem to have believed his society was ‘overgoverned’, whatever that may mean, except perhaps as regards the American colonies; he had no ‘doctrine’ of the invisible hand, indeed no single theory of how markets work; he did not think free markets always served human well-being; and he did not hold that human sympathy was intrinsically limited or required economizing.

One of Smith’s most subtle and sophisticated modern interpreters, the economist and historian Donald Winch, also rejects readings of TMS in terms of charity or benevolence in ‘Science and the Legislator: Adam Smith and After’, Economic Journal, 93.371, 1983 Viner on Smith’s catholicity: Jacob Viner, ‘Adam Smith and Laissez Faire’, Journal of Political Economy, 35.2, April 1927 Viner’s most famous student: Viner’s later students also notably included Donald Winch Friedman article: Milton Friedman, ‘Adam Smith’s Relevance for Today’, Challenge, March–April 1977; the article was based on a paper delivered to the Mont Pelerin Society in August 1976 Contra Friedman on Smith: not a radical, see D. D. Raphael, The Impartial Spectator: Adam Smith’s Moral Philosophy, Oxford University Press 2007, Ch. 13 pp. 124ff.; did not believe sympathy required economizing, see Avner Offer, ‘Self-Interest, Sympathy and the Invisible Hand: From Adam Smith to Market Liberalism’, Economic Thought, 1.2, 2012 Whiggish outlook: with the specifically Scottish twist that turned Whigs north of the border away from sixteenth- and seventeenth-century resistance to overbearing monarchy and more towards a wider critique of feudal and aristocratic society Smith’s appetite for privacy: Dugald Stewart, LAS Recent biographers: see the Bibliography Adam Smith on Burke: see Robert Bisset, Life of Edmund Burke, 2 ed., 2 vols, George Cawthorn 1798, ii p. 429.


pages: 431 words: 129,071

Selfie: How We Became So Self-Obsessed and What It's Doing to Us by Will Storr

Albert Einstein, autonomous vehicles, banking crisis, bitcoin, computer age, correlation does not imply causation, Donald Trump, Douglas Engelbart, Douglas Engelbart, Elon Musk, en.wikipedia.org, gig economy, greed is good, invisible hand, job automation, John Markoff, Kickstarter, longitudinal study, Lyft, Menlo Park, meta analysis, meta-analysis, Mont Pelerin Society, mortgage debt, Mother of all demos, Nixon shock, Peter Thiel, QWERTY keyboard, rising living standards, road to serfdom, Robert Gordon, Ronald Reagan, selective serotonin reuptake inhibitor (SSRI), Silicon Valley, Silicon Valley startup, Steve Jobs, Steven Levy, Stewart Brand, The Future of Employment, The Rise and Fall of American Growth, Tim Cook: Apple, Travis Kalanick, twin studies, Uber and Lyft, uber lyft, War on Poverty, Whole Earth Catalog

All this would put individualism back, where it belonged, at the heart of Western society. For Hayek, neoliberalism was the ideology of no ideology: it would bring a utopia in which we’d finally be liberated from the follies of the politicians. It wasn’t until the 1970s, when the old system began to collapse, that neoliberalism was sucked dramatically into the mainstream. With the help of a band of powerful businessmen, thinkers and economists known as the Mont Pelerin Society, it had grown, since the 1940s, spreading through a network of well-funded ‘think tanks’, to eventually become influential in all the right places. It was taken up as the guiding principle behind the governments of Ronald Reagan and Margaret Thatcher. It also, of course, had much in common with the views of Ayn Rand and her acolyte Alan Greenspan – who, in this new world, suddenly found himself in favour, and in power.

Keith ref1, ref2, ref3, ref4 Carlyle, Abbot Aelred ref1, ref2 Carnegie, Dale ref1 How to Win Friends and Influence People ref1 Carter, Drummond ref1 celebrity culture ref1, ref2, ref3 chimpanzees ref1, ref2 China biographies in ref1 Confucian self ref1 and group harmony ref1 suicides in ref1 Christian Science movement ref1 Christianity ref1, ref2 Ancient Greek influence ref1, ref2 and belief in God ref1 dourly introspective ref1 future-orientated ref1 orthodox not orthoprax ref1 and perfection ref1 and reason ref1 ritual and mimicry ref1 and the unconscious ref1 and the university system ref1 Cialdini, Dr Robert, The Psychology of Influence and Persuasion ref1 CJ becomes anorexic ref1 childhood and family life ref1 description and life ambition ref1 devotion to The Hunger Games ref1, ref2, ref3 drops out of drama college ref1 need for validation ref1 personality ref1, ref2 relationship with boys ref1 takes selfies as validation of self ref1, ref2 Claybury psychiatric hospital ref1 Clinton, Bill ref1, ref2 Clinton, Hilary ref1 Coan, James ref1 Cole, Steve ref1 the Collective ref1 computers see digital technology Confucianism ref1 and Aristotelianism ref1 and suicide ref1 Confucius ref1 Connop, Phoebe ref1 Cook, Tim ref1 Cooley, Charles Horton ref1 Cornish, Jackie ref1 corporate self ref1 Corporation Man and Woman, idea of ref1 Coulson, William ref1, ref2 Council of Economic Advisers ref1 Cowen, Graeme ref1, ref2 Cramer, Katherine ref1 cultural self and Ancient Greece ref1 and Asian self ref1, ref2 childhood and adolescence ref1 and Confucianism ref1 and the environment ref1 Freudian beliefs ref1 and ideal body ref1, ref2 and storytelling ref1 and youth ref1 Curtis, Adam ref1 Cynics, in Ancient Greece ref1 Deep Space Industries ref1, ref2 Demo: New Tech Solving Big Problems conference (San Jose, 2014) ref1 Deukmejian, George ‘The Duke’ ref1, ref2, ref3 digital technology and age of perfectionism ref1 development of ref1, ref2 dot.com crash ref1 humanist-neoliberal ideology ref1, ref2, ref3 and the ideal self ref1 online community ref1 personal computers ref1, ref2 as portal to information ref1 and the selfie drone ref1 vision of the future ref1 Web 2.0 ref1, ref2, ref3, ref4 DNA ref1 Doyle, Jacqueline ref1 Dunbar, Robin ref1 Eagleman, David ref1 East Asians ref1, ref2, ref3, ref4, ref5 eating disorders ref1, ref2 Eddy, Mary Baker ref1, ref2 Eells, Gregory ref1 effectance motive ref1 Ehrenreich, Barbara ref1 El Rancho Inn, Millbrae ref1, ref2, ref3 empathy ref1, ref2, ref3, ref4, ref5, ref6, ref7 encounter groups danger of ref1 Doug Engelbart’s ref1 online ref1 participation in ref1, ref2, ref3, ref4 Fritz Perls’ ref1 Carl Rogers as pioneer of ref1 Will Schutz’s ref1 Engelbart, Doug ref1 interest in EST ref1 introduces encounter groups ref1 joins Global Business Network ref1 presents personal computer concept ref1, ref2 vision of information age ref1, ref2 ‘Augmenting Human Intellect’ ref1 environment and development of the brain ref1, ref2 Easterners’ vs Westerners’ awareness of ref1 effect of changes to ref1 importance of ref1 and individual experience ref1 and social perfectionism ref1, ref2, ref3 Epley, Nicholas ref1, ref2 Erhard, Werner ref1 Erhard Seminars Training (EST) workshops ref1 Esalen Institute ref1, ref2, ref3, ref4, ref5, ref6, ref7, ref8, ref9, ref10 Big Yurt ref1 criticisms of ref1 final assignment ref1 hosts conference on Spiritual and Therapeutic Tyranny ref1, ref2, ref3 influence at Stanford ref1, ref2 The Max ref1, ref2 Pandora’s Box ref1 Fritz Perls’ Gestalt encounter groups ref1 role-play tasks ref1 Will Schutz’s encounter groups ref1 stated mission ref1 suicides connected to ref1 unaffiliated ‘Little Esalens’ ref1 and wired technology ref1 EST see Erhard Seminars Training (EST) workshops Euclid, Cleveland ref1 Euripides, The Suppliants ref1 extraverts ref1, ref2, ref3, ref4 Faber, Daniel ref1, ref2 Facebook ref1, ref2, ref3, ref4 Fall Joint Computer Conference (San Francisco, 1968) ref1, ref2 financial crises ref1, ref2, ref3, ref4 Flett, Gordon ref1, ref2 Fonda, Jane ref1, ref2 Fortune magazine ref1, ref2 ‘The Founder’ concept ref1, ref2 Fox, Jesse ref1 free speech ref1 free will ref1, ref2, ref3, ref4 Freud, Sigmund ref1, ref2, ref3, ref4 Totem and Taboo ref1 Frith, Chris ref1 Gagarin, Nick ref1 gamified self ref1, ref2, ref3 Garcia, Rigo ref1 Gazzaniga, Michael ref1, ref2 GBN see Global Business Network Generation X ref1, ref2 George, Carol ref1 gig economy ref1, ref2 Global Business Network (GBN) ref1, ref2 globalization ref1, ref2, ref3 Gold, Judith ref1 Goldman, Marion ref1 Gome, Gilad ref1, ref2, ref3 Gordon, Robert ref1 gossip ref1, ref2, ref3, ref4, ref5, ref6, ref7 Great Compression (c. 1945–c. 1975) ref1, ref2, ref3, ref4, ref5, ref6, ref7, ref8, ref9, ref10, ref11, ref12 Great Depression ref1 Greenspan, Alan appointed Chairman of the Federal Reserve ref1 considers himself a libertarian ref1 effect of decisions on financial crisis ref1 influenced by Rand ref1, ref2, ref3, ref4 relationship with Clinton ref1 rise to power ref1 Hacker Hostels, San Francisco ref1, ref2 Haidt, Jonathan ref1, ref2, ref3 Hampton, Debbie ref1, ref2, ref3, ref4 Hayek, Friedrich ref1, ref2, ref3 Heinz, Adrienne ref1, ref2, ref3 Heinz, Austen considered sexist and misogynistic ref1 description of ref1 DNA vision ref1 personality ref1 suicide of ref1 Henrich, Joseph ref1, ref2, ref3 heroes ref1, ref2, ref3, ref4, ref5, ref6, ref7, ref8 Hewitt, John ref1, ref2, ref3, ref4 Hierarchy of Needs (Maslow) ref1 Himba people ref1 Hogan, Robert ref1 Hollesley Bay Young Offenders Institution, Suffolk ref1 Hood, Bruce ref1, ref2, ref3 The Self Illusion ref1 Horowitz, Mitch ref1, ref2 Human Potential Movement ref1, ref2, ref3, ref4, ref5 Humanistic Psychology ref1, ref2 The Hunger Games ref1, ref2, ref3 hunter-gatherers ref1, ref2, ref3, ref4, ref5 Hutchinson, Audrey ref1, ref2 Huxley, Aldous ref1 ideal self ref1, ref2, ref3, ref4, ref5, ref6, ref7, ref8, ref9, ref10 see also perfect self Immaculate Heart Community, California ref1 Inc.com ref1, ref2 individualism and the 2016 political shocks ref1 in America ref1 Ancient Greek notion of ref1, ref2, ref3 and blame ref1 Christian view ref1, ref2 competitive ref1, ref2 cooperation and teamwork ref1, ref2 and culture ref1 development of ref1, ref2 East Asian concept of ref1 East–West clash ref1 and freedom ref1, ref2, ref3, ref4 getting along and getting ahead ref1, ref2 and the Great Compression ref1 hard form of ref1 as heightened ref1 hyper-individual model ref1 libertarian-neoliberal ref1 and passion ref1 and personality traits ref1, ref2 and Ayn Rand ref1, ref2, ref3, ref4 rise of ref1, ref2 and self-esteem ref1, ref2, ref3, ref4 and social pain ref1 and the state ref1 Stewart Brand’s concept of ref1 and wired technology ref1 internet ref1, ref2, ref3, ref4, ref5 and Doug Engelbart ref1 and Web 2.0 ref1, ref2, ref3 introverts ref1, ref2, ref3 Jaeger, Werner ref1, ref2, ref3 James, William ref1 Japan, suicide in ref1 Jeremy (mechanical engineer) ref1, ref2, ref3, ref4 Jobs, Steve ref1, ref2, ref3, ref4 Kalanick, Travis ref1 kalokagathia ref1, ref2, ref3, ref4, ref5 Kelly, Jodi ref1 Kidlington Detention Centre, Oxfordshire ref1 Kim, Uichol ref1, ref2, ref3, ref4, ref5 Konrath, Sara ref1 Lakewood Church, Houston ref1 leadership ref1, ref2 Leary, Mark ref1 Levey, Cate ref1, ref2 libertarianism ref1, ref2, ref3, ref4, ref5 Lincoln Elementary School, Long Beach ref1 Little, Brian ref1, ref2, ref3, ref4 Loewenstein, George ref1 ‘The Long Boom: A History of the Future’ (Schwartz et al.) ref1, ref2 The Looking-Glass Self (Bruce) ref1, ref2 Lord, Frances ref1 Luit (chimpanzee) ref1 Lyons, Dan ref1 McAdams, Dan ref1 McKee, Robert ref1 McManus, Chris ref1 Marin, Peter ref1 market rhetoric ref1 Markoff, John ref1 Martin, Father ref1, ref2, ref3, ref4 Marwick, Alice ref1, ref2, ref3 Maslow, Abraham ref1, ref2 Matteo Ricci College, Seattle ref1 Mayfield, Janet ref1 Mecca, Andrew ref1, ref2, ref3, ref4, ref5, ref6 Menlo Park ref1, ref2, ref3, ref4, ref5 Michie, Colin ref1 millennials ref1, ref2, ref3, ref4 Mind Cure ref1, ref2, ref3 Mitropoulos, Con ref1, ref2 monastic life ref1, ref2, ref3, ref4, ref5 Monitoring the Future Project ref1 Mont Pelerin Society ref1 Morales, Helen ref1 Mumford, Lewis, The Myth of the Machine ref1 Murphy, Michael ref1, ref2, ref3, ref4, ref5, ref6, ref7 Musk, Elon ref1, ref2, ref3 narcissism ref1 at Esalen ref1, ref2 and over-praise ref1, ref2 research into ref1 rise in ref1, ref2, ref3, ref4 and self-esteem ref1, ref2, ref3 and Trump ref1 and Vasco ref1 in younger people ref1, ref2 The Narcissism Epidemic (Twenge and Campbell) ref1 narcissistic perfectionism ref1 Narcissistic Personality Disorder ref1 Narcissistic Personality Inventory (NPI) ref1, ref2 National Academy of Sciences Proceedings (2015) ref1 National Council for Self Esteem ref1 nature vs nurture in development ref1, ref2 neoliberalism becomes mainstream ref1 and being self-sufficient and successful ref1 and ‘bespoke hero’ ref1 corporate view ref1 and creation of new form of human ref1 and the digital future ref1 disdain for regulation and government oversight ref1 emergence ref1 and financial inequalities ref1, ref2 and gay rights/gay marriage ref1 and global financial crisis (2008) ref1 as global phenomenon ref1 governments run like businesses ref1 Hayek’s vision of ref1, ref2 individualism, status and self-esteem ref1 negative effects ref1 and new style of government ref1 and power of multinationals ref1 rebellion against ref1 and structural inequalities ref1 and working conditions ref1 Netflix: code for employees ref1 Nettle, Daniel ref1, ref2, ref3, ref4 Personality ref1 neurotics and neuroticism ref1, ref2 neurotic perfectionism ref1, ref2, ref3, ref4 as personality trait ref1, ref2, ref3, ref4, ref5, ref6, ref7 Nietzsche Society, UCL ref1 Nisbett, Richard ref1, ref2, ref3, ref4, ref5, ref6, ref7 NPI see Narcissism Personality Index; Narcissistic Personality Inventory O’Connor, Rory ref1, ref2, ref3, ref4, ref5 Oedipus complex ref1, ref2 O’Reilly, Tim ref1 ostracism ref1 Ozawa-de Silva, Chikako ref1 Pakrul, Stephanie (aka StephTheGeek) ref1 ‘Paris Hilton effect’ ref1 Peale, Dr Norman Vincent, The Power of Positive Thinking ref1 perfect self as an illusion ref1 Heinz Austen as example of ref1 and being anything we want to be ref1, ref2 Christian ref1 CJ as example of ref1 cultural conception of ref1 and culture ref1 and digital self ref1 and gamified individualist economy ref1 and ideal self ref1 judging others and ourselves ref1 narcissistic ref1 and neoliberalism ref1 neurotic ref1, ref2, ref3, ref4 perfectionist presentation ref1 and personal responsibility ref1 pressures of ref1 and the self ref1, ref2 selfishness or selflessness ref1, ref2 social ref1 and suicide ref1 see also ideal self Perls, Fritz ref1, ref2 as a ‘dirty old man’ ref1, ref2, ref3 feud with Schutz ref1 fractious relationship with Esalen ref1 Gestalt encounter groups ref1, ref2, ref3 near obsessional attacks and insults ref1 reaction to suicides ref1 Tom Wolfe’s comments on ref1 tough upbringing ref1 visits Freud ref1, ref2 personal computers see digital technology personality and acting out of character ref1 assumptions concerning ref1 basic traits ref1, ref2, ref3 and being or doing whatever we want ref1 and the brain ref1, ref2, ref3 different people in different contexts ref1 individualism and self-esteem ref1 and parental influence ref1 predictable shifts in ref1 prison metaphor ref1 and realising you’re not the person you wanted to be ref1 social responses ref1 tests and research ref1 as virtually unchanging ref1 physical self Ancient Greek ideals ref1, ref2 and body consciousness ref1, ref2, ref3, ref4 cultural influences ref1 and diet ref1 linked to moral worth ref1 Pluscarden Abbey ref1, ref2, ref3, ref4, ref5, ref6, ref7, ref8 polyamory ref1, ref2 Price, Marcia ref1 Price, Richard ref1, ref2, ref3 Pridmore, John ref1 childhood trauma ref1 effect of culture on ref1, ref2, ref3 sent to prison ref1 undergoes religious conversion ref1, ref2, ref3 violent behaviour ref1, ref2, ref3, ref4, ref5, ref6, ref7 weeps when watching TV ref1, ref2 psychoanalysis ref1 Qi Wang ref1 Quimby, Phineas ref1, ref2 Rainbow Mansion, Silicon Valley ref1, ref2 Rand, Ayn ref1, ref2, ref3 beliefs and influence ref1, ref2, ref3, ref4, ref5, ref6 changes her name/identity ref1 early life ref1 reaction to Nathaniel Branden’s infidelity ref1, ref2 sets up the Collective ref1 Atlas Shrugged ref1, ref2, ref3 The Fountainhead ref1 The Virtue of Selfishness ref1 reputation ref1, ref2 in Ancient Greece ref1 ‘getting along and getting ahead’ (Hogan) ref1, ref2, ref3, ref4, ref5, ref6 and guilt ref1 ‘honour culture’ ref1 and tribal brains ref1 Rogers, Art ref1, ref2 Rogers, Carl ref1, ref2, ref3, ref4, ref5, ref6, ref7 Roh Moo-hyun ref1 Rosenbaum, Alyssa see Rand, Ayn Rosetto, Louis ref1 Ross, Ben ref1, ref2 Rudnytsky, Peter ref1 Rule of St Benedict, The ref1, ref2 San Francisco ref1, ref2, ref3, ref4, ref5, ref6, ref7, ref8, ref9 Sapolsky, Robert ref1, ref2 Sartre, Jean-Paul ref1, ref2 Satir, Virginia ref1 Schuman, Michael ref1 Schutz, Will ref1, ref2, ref3, ref4, ref5, ref6 Joy ref1 Schwartz, Peter ref1 Scott, Sophie ref1, ref2 Seager, Martin ref1 self cultivation of ref1 East Asian, and reality ref1, ref2 and engagement in personal projects ref1 and local best-practice ref1 and need for a mission ref1 as open and free ref1 perfectible ref1, ref2 as a story ref1 see also authentic self Self-Determination Think Tank ref1 self-esteem Baumeister’s research into ref1 belief in ref1 and changes in values ref1 in education ref1, ref2, ref3 high ref1, ref2, ref3, ref4 and lack of tolerance and empathy ref1 legislation embodying ref1 legitimization of ref1 and life-affirming message ref1 lingering effects of movement ref1 low ref1, ref2, ref3, ref4, ref5, ref6, ref7, ref8, ref9, ref10 media questioning of ref1 myths and lies concerning ref1, ref2, ref3 and narcissism ref1, ref2, ref3 negative effects ref1 negative report on ref1 and overpraise ref1 and perfectionism ref1 popularity of ref1 raising ref1 research into ref1 and selfie generation ref1 Self-Esteem Task Force project ref1 social importance of ref1 Vasco’s ideology of ref1, ref2, ref3, ref4, ref5, ref6, ref7 Western emphasis on ref1 self-harm ref1, ref2, ref3, ref4, ref5, ref6, ref7, ref8 self-interest ref1, ref2, ref3 self-just-about-everything ref1, ref2 self-loathing ref1 self-love movement ref1, ref2, ref3, ref4 selfie generation ref1 awareness of structural inequalities ref1 CJ as example of ref1, ref2 effect of social media on ref1 maintaining continual state of perfection ref1 and narcissism ref1 need for social feedback ref1 and parenting practices ref1 selfishness/selflessness ref1, ref2, ref3, ref4, ref5 Shannahoff-Khalsa, David ref1, ref2, ref3, ref4 Shannin (entrepreneur) ref1 Shaw, Paula ref1, ref2, ref3, ref4 Silani, Dr Giorgia ref1 Silicon Valley, California ref1, ref2 attitude to conspicuous wealth ref1 as capital of the neoliberal self ref1 cold-blooded rationalism in ref1 demonstration of personal computing in ref1 hyper-individualist model of corporate self in ref1, ref2 involvement in transformation of economy ref1 lack of compassion in ref1 links with Esalen ref1 living in fear in ref1 as military-industrial complex ref1 model of ideal self in ref1 Simon, Meredith ref1, ref2, ref3 Singularity ref1 Smelser, Neil ref1, ref2, ref3, ref4, ref5 Smiles, Samuel ref1 Self Help ref1 Snyder, Mark ref1 Social Importance of Self-Esteem, The (Smelser et al.) ref1, ref2 social media ref1, ref2 social pain ref1, ref2 South Korea, suicide in ref1 Sparks, Randy ref1 Oh Yes, I’m A Wonderful Person and other Musical Adventures for those of us in search of Greater Self-Esteem ref1 Spiritual and Therapeutic Tyranny: The Willingness to Submit (conference, 1973) ref1, ref2, ref3 Squire, Michael ref1 Stanford Research Institute, Menlo Park ref1, ref2 Augmentation Research Center (ARC) ref1, ref2 Stanford University ref1, ref2, ref3 Center for Advanced Study in the Behavioral Sciences Unit ref1 Stark, Rodney ref1 start-ups ref1, ref2, ref3, ref4, ref5, ref6 Startup Castle, Silicon Valley ref1 stimulus-action hunger ref1 storytelling Brexit/Trump narrative ref1 development of personal narratives ref1 East–West differences/similarities ref1 and feelings of control ref1 as form of tribal propaganda ref1 happiness and sense of purpose ref1 and the inner voice ref1, ref2, ref3, ref4, ref5 self and culture ref1 and self-esteem ref1 and self-loathing ref1 selfishness or selflessness ref1, ref2, ref3 split-brain participants ref1 success and failure ref1 as universal ref1 suicide ref1 attempts at ref1, ref2, ref3 Confucian cultures ref1 connected to Esalen ref1, ref2 as failed hero stories ref1 gender and culture ref1, ref2 increase due to financial crisis (2008) ref1 in Japan ref1 and loss of hero status ref1 as a mystery ref1 patterns in ref1 and perfectionism ref1, ref2, ref3 rates of ref1 research into ref1 in South Korea ref1 Sunshine (attendee at Esalen) ref1 Sweet Peach ref1 synthetic biology ref1, ref2 Talhelm, Thomas ref1 Tanzania ref1, ref2 teamwork/cooperation ref1 Thiel, Peter ref1 Zero to One ref1 Tice, Dianne ref1 Tomkins, Detective Sergeant Katherine ref1 Tomlinson, Rachel ref1 Toward a State of Esteem (1990) ref1 tribal self Brexit/Trump narrative ref1 hierarchy, territory, status ref1 and ideal/perfect self ref1 monks as ref1 prejudice and bias ref1 and punishing of transgressors ref1 reputation and gossip ref1, ref2 selflessness or selflessness ref1, ref2, ref3, ref4 and storytelling/left-brain interpretation ref1 Trudeau, Garry ref1, ref2, ref3, ref4 Trump, Donald as anti-establishment ref1 appeal to voters ref1, ref2 declares he will put ‘America first’ ref1 false stories concerning ref1 narcissistic tendencies ref1 and social media ref1 as straightforward no-nonsense businessman ref1 Trzesniewski, Kali ref1 Turner, Fred ref1, ref2 Twenge, Jean ref1, ref2, ref3, ref4 20Mission (Hacker Hostel, San Francisco) ref1 Twitter ref1, ref2, ref3, ref4 University of Glasgow Suicide Behaviour Research Laboratory ref1, ref2, ref3 Vanessa (employee at Rainbow Mansion) ref1, ref2 Vasconcellos, John ‘Vasco’ ref1, ref2 death of ref1 description and beliefs ref1 early life and education ref1 as ‘furious’ ref1, ref2, ref3 as homosexual ref1 ideology of self-esteem ref1, ref2, ref3, ref4, ref5 nutty notions of ref1, ref2 ridiculed by the media ref1 and Smelser’s conclusions on the task force ref1 suffers massive heart attack ref1, ref2 Task Force project ref1 Vittitow, Dick ref1 Waal, Frans de ref1 Wallace, Donald ‘Smokey’ ref1 Warren, Laura ref1 Whole Earth Catalog ref1 Whole Earth ’Lectronic Link ref1, ref2, ref3 Wigglesworth, Smith ref1, ref2 Williams, Kip ref1, ref2 Wilson, Timothy D. ref1 Wolfe, Tom ref1 Wolin, Sheldon ref1 Wood, Natalie ref1, ref2 Wrangham, Richard ref1 Xerox ref1, ref2, ref3 zero-hours contracts ref1, ref2, ref3 Also by Will Storr FICTION The Hunger and the Howling of Killian Lone NON-FICTION Will Storr versus The Supernatural The Heretics: Adventures with the Enemies of Science (published in the US as The Unpersuadables) First published 2017 by Picador This electronic edition published 2017 by Picador an imprint of Pan Macmillan 20 New Wharf Road, London N1 9RR Associated companies throughout the world www.panmacmillan.com ISBN 978-1-4472-8367-6 Copyright © Will Storr 2017 Cover Design: Neil Lang, Picador Art Department The right of Will Storr to be identified as the author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988.


pages: 590 words: 153,208

Wealth and Poverty: A New Edition for the Twenty-First Century by George Gilder

"Robert Solow", affirmative action, Albert Einstein, Bernie Madoff, British Empire, business cycle, capital controls, cleantech, cloud computing, collateralized debt obligation, creative destruction, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, deindustrialization, diversified portfolio, Donald Trump, equal pay for equal work, floating exchange rates, full employment, George Gilder, Gunnar Myrdal, Home mortgage interest deduction, Howard Zinn, income inequality, invisible hand, Jane Jacobs, Jeff Bezos, job automation, job-hopping, Joseph Schumpeter, knowledge economy, labor-force participation, longitudinal study, margin call, Mark Zuckerberg, means of production, medical malpractice, minimum wage unemployment, money market fund, money: store of value / unit of account / medium of exchange, Mont Pelerin Society, moral hazard, mortgage debt, non-fiction novel, North Sea oil, paradox of thrift, Paul Samuelson, plutocrats, Plutocrats, Ponzi scheme, post-industrial society, price stability, Ralph Nader, rent control, Robert Gordon, Ronald Reagan, Silicon Valley, Simon Kuznets, skunkworks, Steve Jobs, The Wealth of Nations by Adam Smith, Thomas L Friedman, upwardly mobile, urban renewal, volatility arbitrage, War on Poverty, women in the workforce, working poor, working-age population, yield curve, zero-sum game

Hobbs, The Welfare Industry (Washington, DC: the Heritage Foundation, 1978), pp. 83 and 84. 7 Ibid., p. 20 and passim. 8 “Studies Indicate New York Welfare Far Exceeds Federal Poverty Line,” New York Times, January 25, 1979, p. B6. These analyses, however, exclude many available means-tested benefits. See also Hobbs, The Welfare Industry, pp. 83 and 84. 9 Gary Becker, “The Effect of the State on the Family,” monograph prepared for the Mont Pelerin Society meetings, September, 1978. 10 For a lucid exposition of the Feldstein position, plus critiques and comments from James M. Buchanan, Nancy Teeters, Arthur M. Okun, and others, see Martin S. Feldstein, “Social Insurance,” in Colin D. Campbell, ed., Income Distribution (Washington, DC: American Enterprise Institute for Public Policy Research, 1977), pp. 71–124. See also Martin S. Feldstein, “Facing the Social Security Crisis,” Public Interest, no. 47 (Spring 1977), pp. 88–100; Martin S.

In Boskin, Michael, ed. Federal Tax Reform: Myths and Realities. San Francisco: Institute for Contemporary Studies, 1978. ———. “U.S. Inflation and the Choice of Monetary Standard.” Speech at University of Rochester, April 9, 1980. Bartlett, Bruce. A Walk on the Supply Side. New Rochelle, NY: Arlington House, Inc., 1981. Becker, Gary. “The Effect of the State on the Family.” Monograph prepared for the Mont Pelerin Society Meetings, September 1978. Bell, Daniel. The Coming of Post-Industrial Society. New York: Basic Books, Inc., 1973. ———. The Cultural Contradictions of Capitalism. New York: Basic Books, Inc., 1975. ———. “The New Class: A Muddled Concept.” Transaction/Society 16 (2) Januray–February 1979. Reprinted in Bruce-Briggs, Barry, ed. The New Class. New Brunswick, NJ: Transaction Books, 1979. Berle, Adolph.


pages: 202 words: 62,901

The People's Republic of Walmart: How the World's Biggest Corporations Are Laying the Foundation for Socialism by Leigh Phillips, Michal Rozworski

Berlin Wall, Bernie Sanders, call centre, carbon footprint, central bank independence, Colonization of Mars, combinatorial explosion, complexity theory, computer age, corporate raider, decarbonisation, discovery of penicillin, Elon Musk, G4S, Georg Cantor, germ theory of disease, Gordon Gekko, greed is good, hiring and firing, index fund, Intergovernmental Panel on Climate Change (IPCC), Internet of things, inventory management, invisible hand, Jeff Bezos, Joseph Schumpeter, linear programming, liquidity trap, mass immigration, Mont Pelerin Society, new economy, Norbert Wiener, oil shock, passive investing, Paul Samuelson, post scarcity, profit maximization, profit motive, purchasing power parity, recommendation engine, Ronald Coase, Ronald Reagan, sharing economy, Silicon Valley, Skype, sovereign wealth fund, strikebreaker, supply-chain management, technoutopianism, The Nature of the Firm, The Wealth of Nations by Adam Smith, theory of mind, transaction costs, Turing machine, union organizing

Hayek is better known today as the godfather of neoliberalism, the pro-market ideology that has come to dominate government policy around much of the world, the first incarnation of which is best exemplified by the administrations of Margaret Thatcher in the UK and Ronald Reagan in the United States during the 1980s. Hayek was explicit about wanting ideological regime change. The postwar welfare state truce between capital and labor had barely been installed when Hayek joined a small group of right-wing radicals to found the Mont Pelerin Society in 1944—a free market think tank before its time. It was integral to their task of reshaping ideology that they have at the ready a rebuke to Lange, Lerner and the other socialists who looked to have the upper hand. For someone who believed so fervently in capitalism, Hayek offered a very honest picture of the system. Maybe it was precisely because he was so ideologically committed to capitalism that he could talk about its shortcomings—all the ways it deviated from the fantasies of the neoclassical economists with their perfect humans, perfect markets and perfect information.


pages: 586 words: 160,321

The Euro and the Battle of Ideas by Markus K. Brunnermeier, Harold James, Jean-Pierre Landau

Affordable Care Act / Obamacare, asset-backed security, bank run, banking crisis, battle of ideas, Ben Bernanke: helicopter money, Berlin Wall, Bretton Woods, business cycle, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Celtic Tiger, central bank independence, centre right, collapse of Lehman Brothers, collective bargaining, credit crunch, Credit Default Swap, currency peg, debt deflation, Deng Xiaoping, different worldview, diversification, Donald Trump, Edward Snowden, en.wikipedia.org, Fall of the Berlin Wall, financial deregulation, financial repression, fixed income, Flash crash, floating exchange rates, full employment, German hyperinflation, global reserve currency, income inequality, inflation targeting, information asymmetry, Irish property bubble, Jean Tirole, Kenneth Rogoff, Martin Wolf, mittelstand, money market fund, Mont Pelerin Society, moral hazard, negative equity, Neil Kinnock, new economy, Northern Rock, obamacare, offshore financial centre, open economy, paradox of thrift, pension reform, price stability, principal–agent problem, quantitative easing, race to the bottom, random walk, regulatory arbitrage, rent-seeking, reserve currency, road to serfdom, secular stagnation, short selling, Silicon Valley, South China Sea, special drawing rights, the payments system, too big to fail, union organizing, unorthodox policies, Washington Consensus, WikiLeaks, yield curve

L’Economie Pure, in which he sought to find a solution to “the fundamental problem of any economy”: how to promote the greatest feasible economic efficiency while ensuring a distribution of income that would be generally acceptable. Though it is sometimes claimed that Allais’s approach to capital and time preference laid the foundations for subsequent planning, he always considered himself an economic liberal. He attended the first meeting of the Mont Pélerin Society in 1947, and though he refused to sign the Statement of Aims, he wrote to Hayek that he wished to express his “profound agreement with economic and political liberty.” His dissent was based on the view that land should be held as national property: in every other respect, he was a classical liberal.32 The Influence of Engineering The new French tradition had its roots not so much in high thought, in the works of France’s most prominent economists, but rather in the work of practical economists who were trained in institutions that had been conceived as oriented toward the service of the state.

Dennis Snower, Johannes Burmeister, and Moritz Seidel, “Dealing with the Euro Area Debt Crisis: A Proposal for Reform,” Kiel Policy Brief No. 33, Kiel Institut für Weltwirtschaft. Last accessed January 4, 2016, from http://www.ifw-kiel.de/wirtschaftspolitik/politikberatung/kiel-policy-brief/kiel_policy_brief_33. 31. Michael Hüther, “Es steht auf Messers Schneide in Athen,” interview in Münchener Merkur, May 10, 2012. 32. Maurice Allais, “Nobel Prize Acceptance Speech,” in A History of the Mont Pelerin Society, Max Hartwell (Indianapolis: Liberty Fund, 1995). 33. Marion Fourcade, Economists and Societies: Discipline and Profession in the United States, Britain, and France, 1890s to 1990s (Princeton, NJ: Princeton University Press, 2010), 231. 34. Cecil Smith, “The Longest Run: Public Engineers and Planning in France,” American Historical Review 95 (1990): 657–92; Charles Gillispie, Science and Polity in France: The End of the Old Regime (Princeton, NJ: Princeton University Press, 1980); Richard Kuisel, “Technocrats and Public Economic Policy: From the Third to the Fourth Republic,” Journal of European Economic History 2 (1973): 53–99; Richard Kuisel, Capitalism and the State in Modern France: Renovation and Economic Management in the Twentieth Century (New York: Cambridge University Press, 1981), 202–12. 35.


pages: 317 words: 71,776

Inequality and the 1% by Danny Dorling

Affordable Care Act / Obamacare, banking crisis, battle of ideas, Bernie Madoff, Big bang: deregulation of the City of London, Boris Johnson, Branko Milanovic, buy and hold, call centre, Capital in the Twenty-First Century by Thomas Piketty, centre right, collective bargaining, conceptual framework, corporate governance, credit crunch, David Attenborough, David Graeber, delayed gratification, Dominic Cummings, double helix, Downton Abbey, en.wikipedia.org, Etonian, family office, financial deregulation, full employment, Gini coefficient, high net worth, housing crisis, income inequality, land value tax, longitudinal study, low skilled workers, lump of labour, mega-rich, Monkeys Reject Unequal Pay, Mont Pelerin Society, mortgage debt, negative equity, Neil Kinnock, Occupy movement, offshore financial centre, plutocrats, Plutocrats, precariat, quantitative easing, race to the bottom, Robert Shiller, Robert Shiller, TaskRabbit, The Spirit Level, The Wealth of Nations by Adam Smith, trickle-down economics, unpaid internship, very high income, We are the 99%, wealth creators, working poor

Verso/Leo Hollis A club on Pall Mall: home to the elite for two centuries Of course, members of the House of Lords with shared ‘business interests’ act together to get a corrupt healthcare bill through parliament. But when they do so, they are like drones in a beehive, they look as if they know what they are doing; but they are merely following their programming and behaving as expected. Occasionally we discover a Mont Pelerin Society or Bilderberg Group, and we think these are just the tip of the iceberg, and beneath the waters lies a vast conspiracy – but such explicit collusion is in fact the exception. The rich rule because their money rules; their own participation is relatively marginal. Receiving huge sums of money leads almost all people to behave in ways that a similar person would not behave if they were living in a more equal society.


pages: 741 words: 179,454

Extreme Money: Masters of the Universe and the Cult of Risk by Satyajit Das

affirmative action, Albert Einstein, algorithmic trading, Andy Kessler, Asian financial crisis, asset allocation, asset-backed security, bank run, banking crisis, banks create money, Basel III, Benoit Mandelbrot, Berlin Wall, Bernie Madoff, Big bang: deregulation of the City of London, Black Swan, Bonfire of the Vanities, bonus culture, Bretton Woods, BRICs, British Empire, business cycle, capital asset pricing model, Carmen Reinhart, carried interest, Celtic Tiger, clean water, cognitive dissonance, collapse of Lehman Brothers, collateralized debt obligation, corporate governance, corporate raider, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, Daniel Kahneman / Amos Tversky, debt deflation, Deng Xiaoping, deskilling, discrete time, diversification, diversified portfolio, Doomsday Clock, Edward Thorp, Emanuel Derman, en.wikipedia.org, Eugene Fama: efficient market hypothesis, eurozone crisis, Everybody Ought to Be Rich, Fall of the Berlin Wall, financial independence, financial innovation, financial thriller, fixed income, full employment, global reserve currency, Goldman Sachs: Vampire Squid, Gordon Gekko, greed is good, happiness index / gross national happiness, haute cuisine, high net worth, Hyman Minsky, index fund, information asymmetry, interest rate swap, invention of the wheel, invisible hand, Isaac Newton, job automation, Johann Wolfgang von Goethe, John Meriwether, joint-stock company, Jones Act, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, Kevin Kelly, laissez-faire capitalism, load shedding, locking in a profit, Long Term Capital Management, Louis Bachelier, margin call, market bubble, market fundamentalism, Marshall McLuhan, Martin Wolf, mega-rich, merger arbitrage, Mikhail Gorbachev, Milgram experiment, money market fund, Mont Pelerin Society, moral hazard, mortgage debt, mortgage tax deduction, mutually assured destruction, Myron Scholes, Naomi Klein, negative equity, NetJets, Network effects, new economy, Nick Leeson, Nixon shock, Northern Rock, nuclear winter, oil shock, Own Your Own Home, Paul Samuelson, pets.com, Philip Mirowski, plutocrats, Plutocrats, Ponzi scheme, price anchoring, price stability, profit maximization, quantitative easing, quantitative trading / quantitative finance, Ralph Nader, RAND corporation, random walk, Ray Kurzweil, regulatory arbitrage, rent control, rent-seeking, reserve currency, Richard Feynman, Richard Thaler, Right to Buy, risk-adjusted returns, risk/return, road to serfdom, Robert Shiller, Robert Shiller, Rod Stewart played at Stephen Schwarzman birthday party, rolodex, Ronald Reagan, Ronald Reagan: Tear down this wall, Satyajit Das, savings glut, shareholder value, Sharpe ratio, short selling, Silicon Valley, six sigma, Slavoj Žižek, South Sea Bubble, special economic zone, statistical model, Stephen Hawking, Steve Jobs, survivorship bias, The Chicago School, The Great Moderation, the market place, the medium is the message, The Myth of the Rational Market, The Nature of the Firm, the new new thing, The Predators' Ball, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, trickle-down economics, Turing test, Upton Sinclair, value at risk, Yogi Berra, zero-coupon bond, zero-sum game

Henry Simons, another protégé of Knight, saw Keynes as “the academic idol of...cranks and charlatans...and [the General Theory] as the economic bible of a fascist movement.”13 Frederick Hayek proved a key figure in discrediting Keynes and in the resurgence of free markets. His Road to Serfdom attacked government intervention in the economy. His 1960 book The Constitution of Liberty argued that the power and role of government should be limited to maintaining individual liberty. Hayek criticized the welfare state and the role of unions. His influence on Chicago was strengthened through the Mont Pelerin Society, a collaboration of 36 like-minded scholars seeking to revive the liberal tradition. Friedman’s 1963 book The Monetary History of the United States, 1867–1960, written with Anna Schwartz, provided the basis for unseating Keynesian orthodoxy. According to Pierre Bayard,14 there are four types of books: UB (books unknown to the reader); SB (books skimmed); HB (books heard about); and FB (books read but forgotten).

Writing about the Mississippi Company speculation of 1719/20, Matthieu Marais, an advocate in the Parisian Parliament, noted: “It is trade where you do not understand anything, where all precautions are useless, where the most enlightened spirit doesn’t see a flicker and which turns according to the designs of the Movement of the Machines. Yet all the fate of the Kingdom depends on it.”36 Prime Minister David Oddsson, a key architect of Iceland’s transformation, was heavily influenced by Friedman, Hayek, Thatcher and Reagan. He lowered taxes, privatized government-owned assets, reduced trade restrictions and deregulated the banking system. In 2005, Iceland even hosted a meeting of the Mont Pelerin Society, the free-market think tank associated with Hayek and Friedman. Iceland was quintessentially American in its “can do attitude.” Anticipating Barrack Obama’s “Yes, we can!” call to arms, Sigurdur Einarsson, the CEO of Kaupthing, told employees of his then small brokerage firm: “If you think you can, you can.”37 Tony Shearer, CEO of Singer & Friedlander, an English bank, acquired by Kaupthing, observed: “They were very different.


pages: 920 words: 233,102

Unelected Power: The Quest for Legitimacy in Central Banking and the Regulatory State by Paul Tucker

Andrei Shleifer, bank run, banking crisis, barriers to entry, Basel III, battle of ideas, Ben Bernanke: helicopter money, Berlin Wall, Bretton Woods, business cycle, capital controls, Carmen Reinhart, Cass Sunstein, central bank independence, centre right, conceptual framework, corporate governance, diversified portfolio, Fall of the Berlin Wall, financial innovation, financial intermediation, financial repression, first-past-the-post, floating exchange rates, forensic accounting, forward guidance, Fractional reserve banking, Francis Fukuyama: the end of history, full employment, George Akerlof, incomplete markets, inflation targeting, information asymmetry, invisible hand, iterative process, Jean Tirole, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, liberal capitalism, light touch regulation, Long Term Capital Management, means of production, money market fund, Mont Pelerin Society, moral hazard, Northern Rock, Pareto efficiency, Paul Samuelson, price mechanism, price stability, principal–agent problem, profit maximization, quantitative easing, regulatory arbitrage, reserve currency, risk tolerance, risk-adjusted returns, road to serfdom, Robert Bork, Ronald Coase, seigniorage, short selling, Social Responsibility of Business Is to Increase Its Profits, stochastic process, The Chicago School, The Great Moderation, The Market for Lemons, the payments system, too big to fail, transaction costs, Vilfredo Pareto, Washington Consensus, yield curve, zero-coupon bond, zero-sum game

Public Debate: Realism This all begs the question of whether it is realistic to expect public debates of this kind. In the middle of the twentieth century, two of America’s leading public intellectuals locked horns on just that. Center-Left liberal John Dewey, whom we have already met, argued that public reason and participation were integral to democracy. Centre-Right liberal Walter Lippmann, a central figure at the 1938 Paris Colloque Lippmann, a forerunner of the neoliberal Mont Pelerin Society, argued that looking for rich public debate was utterly unrealistic and naïve: most people would choose an evening watching television or a sporting event over debating public affairs.25 Both seem wrong. On the one hand, people of all kinds do sometimes discuss events and politics with their friends, colleagues, and family, even if they prefer watching or playing sports. On the other hand, Lippmann’s apparent condescension aside, he was obviously correct that it is not remotely realistic to assume that everybody is tuned in to all or many significant public issues.

., 221 Mexico, 327, 397 microprudential power, 470–72, 476 Milgrom, Paul, 121n12 military: administrative state and, 25, 35, 52, 72, 76–81, 83, 85, 89; central banks and, 503–4, 517–24, 543; Clausewitz and, 77–78, 518; democratic values and, 546, 564–67; emergency state and, 503–4, 517–24; as exemplars for central banks, 78–79; independent agencies and, 104, 121; insulated agencies and, 282, 288; Janowitz on, 77; MacArthur and, 80; norm of self-restraint and, 77–78; objective civilian control and, 76–77; power and, 3, 13, 23, 89, 385, 395; as pure agent, 79–81 mimesis, 428 Monetary History of the United States (Friedman and Schwartz), 524 monetary independence: central banks and, 5–8, 23, 270–71, 290, 325n30, 395, 419, 450, 489, 493, 507, 509, 520, 526–27, 531–32; independent agencies and, 290; oversight issues and, 395; Principles for Delegation and, 270–71, 325n30 monetary policy: administrative state and, 25, 29, 43, 52; central banks and, 408–14, 435–36, 443, 447–54, 460, 485, 497, 503–17, 521, 566n17; credibility and, 417, 419n13, 423, 426–29, 432–36; credible commitment and, 229; emergency state and, 510–12, 516, 519, 523; fiscal state and, 487, 493–94, 497–501; independent agencies and, 95, 99, 102–3, 106, 113, 115–17, 120–22, 126n13, 168–70, 173, 179, 344; inflation risk premium and, 411–13; insulated agencies and, 289–90; Keynesianism and, 417, 427; legal issues and, 350–51, 355, 357; macroeconomic demand management and, 405–8; Money-Credit Constitution (MCC) and, 17–18, 402, 436, 456–59, 463, 511, 520, 526, 537, 562–63; overmighty citizens and, 525–39, 542–43; oversight issues and, 368n36, 370, 373–75; politics of, 405–13; power and, 9–10, 13, 15, 17, 23, 382, 388, 394–99, 402, 405–13; Principles for Delegation and, 131, 134, 252, 261, 264–66, 313, 317–19, 326; prudential responsibilities and, 454; risk appetite and, 533–34; stability and, 438–42, 447, 449n21, 450–54, 458, 475–80; veto points and, 408–11 monetary regimes: abstemious policies and, 430; balance-sheet policy and, 432, 435, 481–502, 526; Bank of England and, 433–34; Chancellors of the Exchequer and, 40, 387, 426n1, 509; consensus and, 428, 430; constrained discretion and, 510; custom and, 560–62; Delegation Criteria and, 432; Design Precepts and, 432, 436; Dodd-Frank Act and, 384, 434, 476, 506, 516, 524; efficiency and, 432; European Central Bank (ECB) and, 427n5, 434; European Union (EU) and, 428; Federal Reserve and, 428, 430–31, 434, 442n8; fiat money and, 23, 288–90, 392, 405, 439, 457, 561; fractional-reserve banking and, 440–42, 444–46, 487, 505, 561; goal independence and, 427; Great Financial Crisis and, 431; Great Moderation and, 4, 431; increased power for, 433–34; inflation and, 427, 431; interest rates and, 428–29, 433, 436; legitimacy and, 426, 428, 432–37; lender of last resort (LOLR) and, 435–36; liquidity and, 432, 435; mimesis and, 428; multiple-mission agencies and, 435; operational independence and, 426–27; overmighty citizens and, 396–98, 527–34; override and, 427; post-crisis, 527–34; power and, 396–98; principled boundaries and, 435–37; pristine and parsimonious policies for, 429–30; public debate and, 429; regulatory state and, 396–98; rule of law and, 428; securities and, 430; simple, 429–30; standard of resilience and, 464–72, 480, 534, 562; technocracy and, 427; United Kingdom and, 426–28; United States and, 428 monetary-system stability: central banks and, 438, 440–47, 449–52, 455, 456, 458n29, 463, 464n5, 472; credibility and, 405, 423; democratic values and, 562, 566; emergency state and, 523; independent agencies and, 111; legitimacy and, 426, 428, 432–37; overmighty citizens and, 523, 526, 533, 539–40; power and, 7, 17, 405, 426–33; two components of, 446 Money-Credit Constitution (MCC), 17–18, 402, 436, 456–59, 463, 511, 520, 526, 537, 562–63 monitorable objectives: central banks and, 455, 461–63, 501, 514, 534; credibility and, 229, 232; democratic values and, 556, 558; independent agencies and, 102–3, 112n5, 113, 116, 126n13, 168, 183, 187, 194, 344, 347, 349; insulated agencies and, 277; power and, 15, 18; Principles for Delegation and, 128, 133, 143, 260, 262n33, 330, 330 monopolies: abuse risk and, 61; antitrust and, 60–62, 168–69, 178n14, 249, 337, 338n11, 352; power and, 42, 49, 60–62, 127, 135, 152–53, 154n11, 228, 267, 296, 299, 304, 309, 392, 429, 443n10 Montesquieu, Baron, xi, 19, 32, 181–83, 217n41, 219, 275 Montfort, Simon de, 218 Mont Pelerin Society, 257 moral hazard, 87–88, 106, 124, 442–43, 453–54, 497, 506–7, 510–11 moral issues: administrative state and, 56n8, 87–88; growth and, 531; independent agencies and, 104–6, 124, 147–58, 191n41, 218; insulated agencies and, 287; obligation to obey and, 12, 147, 149–50, 152–56; power and, 12, 407–8; pragmatic authority and, 151–55, 396, 443, 448, 455, 471, 561; Principles for Delegation and, 128, 239, 244 mortgages, 52, 131–32, 406, 432, 469, 474, 482–83, 499–500 Mount, Ferdinand, 193 Mounk, Yascha, 3n5 Mudie, George, 525, 539 Muller, Jan Werner, 1n1, 37n32, 167n39, 195n3, 246n17 multiple-mission agencies: central banks and, 16–18, 439, 449, 452–59, 467, 471–76, 480–81, 526, 534, 537; constraints on, 92, 121–24, 246, 321, 332, 439, 454n25, 455, 458, 471, 526, 571–72; independent agencies and, 92, 121–24, 571–72; legal issues and, 352, 357; monetary regimes and, 435; power and, 246; Principles for Delegation and, 246, 321, 332, 571–72; stability and, 452–55, 472–76 Musgrave, Richard, 51–52 mutual funds, 142, 444 Napoleon, 36, 182 narrow banking, 438, 444–45 National Labor Relations Board (NLRB), 29 neoliberalism, 6, 169, 257, 459, 510, 527 neorepublicanism, 165.


pages: 370 words: 102,823

Rethinking Capitalism: Economics and Policy for Sustainable and Inclusive Growth by Michael Jacobs, Mariana Mazzucato

balance sheet recession, banking crisis, basic income, Bernie Sanders, Bretton Woods, business climate, business cycle, Carmen Reinhart, central bank independence, collaborative economy, complexity theory, conceptual framework, corporate governance, corporate social responsibility, creative destruction, credit crunch, Credit Default Swap, crony capitalism, David Ricardo: comparative advantage, decarbonisation, deindustrialization, dematerialisation, Detroit bankruptcy, double entry bookkeeping, Elon Musk, endogenous growth, energy security, eurozone crisis, factory automation, facts on the ground, fiat currency, Financial Instability Hypothesis, financial intermediation, forward guidance, full employment, G4S, Gini coefficient, Growth in a Time of Debt, Hyman Minsky, income inequality, information asymmetry, Intergovernmental Panel on Climate Change (IPCC), Internet of things, investor state dispute settlement, invisible hand, Isaac Newton, Joseph Schumpeter, Kenneth Rogoff, Kickstarter, knowledge economy, labour market flexibility, low skilled workers, Martin Wolf, mass incarceration, Mont Pelerin Society, neoliberal agenda, Network effects, new economy, non-tariff barriers, paradox of thrift, Paul Samuelson, price stability, private sector deleveraging, quantitative easing, QWERTY keyboard, railway mania, rent-seeking, road to serfdom, savings glut, Second Machine Age, secular stagnation, shareholder value, sharing economy, Silicon Valley, Steve Jobs, the built environment, The Great Moderation, The Spirit Level, Thorstein Veblen, too big to fail, total factor productivity, transaction costs, trickle-down economics, universal basic income, very high income

The corporate dominance involved in actually existing neoliberalism challenges its compatibility with both the market order and political democracy. Notes 1 The leading neoliberal theorists dominate the economics departments of the world’s universities, particularly in the US and especially the University of Chicago. They have been particularly prominent among winners of the Swedish National Bank’s economics prize, generally known as the economics Nobel Prize. To some extent neoliberal thinkers are organised within the Mont Pèlerin Society founded by Friedrich von Hayek and his colleagues. A highly critical but thorough guide to the leading members of the school and the range of their contributions will be found in P. Mirowski, Never Let a Good Crisis Go to Waste: How Neoliberalism Survived the Financial Meltdown, London, Verso, 2013. 2 C. Crouch, The Strange Non-Death of Neoliberalism, Cambridge, Polity Press, 2011, ch. 5. 3 See the works of J.J.


pages: 308 words: 99,298

Brexit, No Exit: Why in the End Britain Won't Leave Europe by Denis MacShane

3D printing, banking crisis, battle of ideas, Big bang: deregulation of the City of London, Boris Johnson, Bretton Woods, British Empire, centre right, Corn Laws, deindustrialization, Doha Development Round, Donald Trump, Etonian, European colonialism, first-past-the-post, fixed income, Gini coefficient, greed is good, illegal immigration, James Dyson, labour mobility, liberal capitalism, low cost airline, low cost carrier, Martin Wolf, mass immigration, Mont Pelerin Society, negative equity, Neil Kinnock, new economy, non-tariff barriers, offshore financial centre, open borders, open economy, price stability, purchasing power parity, quantitative easing, reshoring, road to serfdom, secular stagnation, Silicon Valley, Thales and the olive presses, trade liberalization, transaction costs, women in the workforce

His short book The Road to Serfdom (published in 1944) is often hailed as the founding charter of postwar economic liberalism. It was seen as an assault on the collectivist, statist, social democratic and socialist ideas that were emerging as the response to both Nazism and communism. Margaret Thatcher venerated the Austrian-born economist and gave him one of Britain’s top honours in 1984. The Mont Pélerin Society was founded in Switzerland to give voice to his ideas. Hayek became an icon for the right, especially the anti-European right. Yet a study of the book shows a man who seems to be promoting the very federalist ideas, as well as endorsing a strong political Europe, that his disciples on the British right find anathema. Hayek quotes approvingly Lord Acton, the greatest of England’s nineteenth-century historians.


pages: 330 words: 99,044

Reimagining Capitalism in a World on Fire by Rebecca Henderson

Airbnb, asset allocation, Berlin Wall, Bernie Sanders, business climate, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, collaborative economy, collective bargaining, commoditize, corporate governance, corporate social responsibility, crony capitalism, dark matter, decarbonisation, disruptive innovation, double entry bookkeeping, Elon Musk, Erik Brynjolfsson, Exxon Valdez, Fall of the Berlin Wall, family office, fixed income, George Akerlof, Gini coefficient, global supply chain, greed is good, Hans Rosling, Howard Zinn, Hyman Minsky, income inequality, index fund, Intergovernmental Panel on Climate Change (IPCC), joint-stock company, Kickstarter, Lyft, Mark Zuckerberg, means of production, meta analysis, meta-analysis, microcredit, mittelstand, Mont Pelerin Society, Nelson Mandela, passive investing, Paul Samuelson, Philip Mirowski, profit maximization, race to the bottom, ride hailing / ride sharing, Ronald Reagan, Rosa Parks, Second Machine Age, shareholder value, sharing economy, Silicon Valley, Snapchat, sovereign wealth fund, Steven Pinker, stocks for the long run, Tim Cook: Apple, total factor productivity, Toyota Production System, uber lyft, urban planning, Washington Consensus, working-age population, Zipcar

I simply want to reduce it to the size where I can drag it into the bathroom and drown it in the bathtub.”14 Trust in government—and in the idea that governments can be relied on to fix society’s problems—is at an all-time low.15 But these perceptions are a function of a systematic campaign to discredit government, not of the role that governments could—and have—played in building just and sustainable societies. One of the most important roots of the triumph of the “free market at almost any cost” ideas that characterized the United States in the 1980s and 1990s was an intellectual and cultural movement that was bankrolled by the private sector. Much of the funding for the Mont Pelerin Society, an international group of scholars that included conservative economists like Friedrich Hayek and Milton Freidman and met regularly for some years to develop a rigorous academic basis for their ultra–free market ideas, came from the business community.16 In the decades following World War II, businesspeople funded a number of radio programs and popular magazines that featured the ideas of Ludwig von Mises, Friedrich Hayek, and other neoliberal thinkers.


pages: 332 words: 106,197

The Divide: A Brief Guide to Global Inequality and Its Solutions by Jason Hickel

Andrei Shleifer, Asian financial crisis, Atahualpa, Bartolomé de las Casas, Bernie Sanders, Bob Geldof, Bretton Woods, British Empire, Cape to Cairo, capital controls, carbon footprint, clean water, collective bargaining, colonial rule, David Attenborough, David Graeber, David Ricardo: comparative advantage, declining real wages, dematerialisation, Doha Development Round, Elon Musk, European colonialism, falling living standards, financial deregulation, Fractional reserve banking, Francisco Pizarro, full employment, Hans Rosling, happiness index / gross national happiness, Howard Zinn, income inequality, Intergovernmental Panel on Climate Change (IPCC), investor state dispute settlement, James Watt: steam engine, laissez-faire capitalism, land reform, land value tax, liberal capitalism, Live Aid, Mahatma Gandhi, Monroe Doctrine, Mont Pelerin Society, moral hazard, Naomi Klein, Nelson Mandela, offshore financial centre, oil shale / tar sands, out of africa, plutocrats, Plutocrats, purchasing power parity, race to the bottom, rent control, road to serfdom, Ronald Reagan, Scramble for Africa, shareholder value, sharing economy, Silicon Valley, Simon Kuznets, structural adjustment programs, The Chicago School, The Spirit Level, trade route, transatlantic slave trade, transfer pricing, trickle-down economics, Washington Consensus, WikiLeaks, women in the workforce, Works Progress Administration

His chief inspiration was Hayek, the Austrian-born economist at the London School of Economics who had become known for his 1944 book The Road to Serfdom, in which he argued that any intervention in the economy would inevitably lead to the kind of totalitarianism that characterised fascist Germany and Communist Russia. But there was virtually no audience for these views at the time. Everyone was Keynesian, and the memory of the Great Depression meant that people were reluctant to return to the dangerous days of laissez-faire capitalism. Nonetheless, the two men continued to propagate their ideas, hoping they would eventually take hold. In 1947, they formed the Mont Pèlerin Society along with others who shared their ideology. It was a club of free-market economists, named for its location in the elite Swiss resort town, established to push these ideas as urgently as possible into the public sphere. Source: Thomas Piketty’s data on www.quandl.com34 By 1950, both Hayek and Friedman had accepted posts in the economics department at the University of Chicago, which soon became a hub for the liberal revival in economics.


pages: 374 words: 113,126

The Great Economists: How Their Ideas Can Help Us Today by Linda Yueh

"Robert Solow", 3D printing, additive manufacturing, Asian financial crisis, augmented reality, bank run, banking crisis, basic income, Ben Bernanke: helicopter money, Berlin Wall, Bernie Sanders, Big bang: deregulation of the City of London, bitcoin, Branko Milanovic, Bretton Woods, BRICs, business cycle, Capital in the Twenty-First Century by Thomas Piketty, clean water, collective bargaining, computer age, Corn Laws, creative destruction, credit crunch, Credit Default Swap, cryptocurrency, currency peg, dark matter, David Ricardo: comparative advantage, debt deflation, declining real wages, deindustrialization, Deng Xiaoping, Doha Development Round, Donald Trump, endogenous growth, everywhere but in the productivity statistics, Fall of the Berlin Wall, fear of failure, financial deregulation, financial innovation, Financial Instability Hypothesis, fixed income, forward guidance, full employment, Gini coefficient, global supply chain, Gunnar Myrdal, Hyman Minsky, income inequality, index card, indoor plumbing, industrial robot, information asymmetry, intangible asset, invisible hand, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, joint-stock company, Joseph Schumpeter, laissez-faire capitalism, land reform, lateral thinking, life extension, manufacturing employment, market bubble, means of production, mittelstand, Mont Pelerin Society, moral hazard, mortgage debt, negative equity, Nelson Mandela, non-tariff barriers, Northern Rock, Occupy movement, oil shale / tar sands, open economy, paradox of thrift, Paul Samuelson, price mechanism, price stability, Productivity paradox, purchasing power parity, quantitative easing, RAND corporation, rent control, rent-seeking, reserve currency, reshoring, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, school vouchers, secular stagnation, Shenzhen was a fishing village, Silicon Valley, Simon Kuznets, special economic zone, Steve Jobs, The Chicago School, The Wealth of Nations by Adam Smith, Thomas Malthus, too big to fail, total factor productivity, trade liberalization, universal basic income, unorthodox policies, Washington Consensus, We are the 99%, women in the workforce, working-age population

He wrote: there can be no doubt that some minimum of food, shelter, and clothing, sufficient to preserve health and the capacity to work, can be assured to everybody … Where, as in the case of sickness and accident, neither the desire to avoid such calamities nor the efforts to overcome their consequences are as a rule weakened by the provision of assistance, where, in short, we deal with genuinely insurable risks, the case for the state’s helping to organize a comprehensive system of social insurance is very strong.14 In many ways Friedrich Hayek was at his peak in terms of celebrity and reputation after the publication of The Road to Serfdom. He had conceived the idea of setting up a society to bring German scholars back into mainstream classical thought after the Second World War, and a couple of years later, between 1 and 10 April 1947, the first Mont Pelerin Society conference took place in Switzerland. Hayek invited intellectuals who supported classical liberalism – in all, thirty-nine individuals from ten countries. Hayek was the first president and stayed in post until 1961. It continues today in the same liberal tradition, and eight Nobel Prize winners have been members. Hayek had always been interested in psychology and after the success of The Road to Serfdom he indulged himself working on his next project, The Sensory Order.


pages: 558 words: 168,179

Dark Money: The Hidden History of the Billionaires Behind the Rise of the Radical Right by Jane Mayer

affirmative action, Affordable Care Act / Obamacare, American Legislative Exchange Council, anti-communist, Bakken shale, bank run, battle of ideas, Berlin Wall, Capital in the Twenty-First Century by Thomas Piketty, carried interest, centre right, clean water, Climategate, Climatic Research Unit, collective bargaining, corporate raider, crony capitalism, David Brooks, desegregation, diversified portfolio, Donald Trump, energy security, estate planning, Fall of the Berlin Wall, George Gilder, housing crisis, hydraulic fracturing, income inequality, Intergovernmental Panel on Climate Change (IPCC), invisible hand, job automation, low skilled workers, mandatory minimum, market fundamentalism, mass incarceration, Mont Pelerin Society, More Guns, Less Crime, Nate Silver, New Journalism, obamacare, Occupy movement, offshore financial centre, oil shale / tar sands, oil shock, plutocrats, Plutocrats, Powell Memorandum, Ralph Nader, Renaissance Technologies, road to serfdom, Robert Mercer, Ronald Reagan, school choice, school vouchers, The Bell Curve by Richard Herrnstein and Charles Murray, The Chicago School, the scientific method, University of East Anglia, Unsafe at Any Speed, War on Poverty, working poor

“single-minded pursuit”: Phillips-Fein, Invisible Hands, 164. “tax-exempt refuge”: For more on Buchanan’s memo, see Jason Stahl, The Right Moves: The Conservative Think Tank in American Political Culture Since 1945 (University of North Carolina Press, forthcoming), 93. “the artillery”: James Piereson comments at Open Society Institute’s Forum, Sept. 21, 2006. One of them: Feulner was a member of the Mont Pelerin Society, an Austrian economics club that Hayek co-founded and attended and that was almost entirely underwritten by American businessmen. described himself openly as a “radical”: David Brock, Blinded by the Right: The Conscience of an Ex-conservative (Crown, 2002), 54. After reading Powell’s memo: Lee Edwards, The Power of Ideas: The Heritage Foundation at 25 Years (Jameson Books, 1997). “I do believe”: See Dan Baum, Citizen Coors: A Grand Family Saga of Business, Politics, and Beer (William Morrow, 2000), 103.


pages: 840 words: 202,245

Age of Greed: The Triumph of Finance and the Decline of America, 1970 to the Present by Jeff Madrick

accounting loophole / creative accounting, Asian financial crisis, bank run, Bretton Woods, business cycle, capital controls, collapse of Lehman Brothers, collateralized debt obligation, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, desegregation, disintermediation, diversified portfolio, Donald Trump, financial deregulation, fixed income, floating exchange rates, Frederick Winslow Taylor, full employment, George Akerlof, Hyman Minsky, income inequality, index fund, inflation targeting, inventory management, invisible hand, John Meriwether, Kitchen Debate, laissez-faire capitalism, locking in a profit, Long Term Capital Management, market bubble, minimum wage unemployment, MITM: man-in-the-middle, money market fund, Mont Pelerin Society, moral hazard, mortgage debt, Myron Scholes, new economy, North Sea oil, Northern Rock, oil shock, Paul Samuelson, Philip Mirowski, price stability, quantitative easing, Ralph Nader, rent control, road to serfdom, Robert Bork, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, Ronald Reagan: Tear down this wall, shareholder value, short selling, Silicon Valley, Simon Kuznets, technology bubble, Telecommunications Act of 1996, The Chicago School, The Great Moderation, too big to fail, union organizing, V2 rocket, value at risk, Vanguard fund, War on Poverty, Washington Consensus, Y2K, Yom Kippur War

Hayek wanted to establish an international cadre of influential intellectuals with like-minded ideas. He succeeded in finding the financing and attracted a formidable group of thinkers, including the Chicago economists Knight, Simons, Director, and the Friedmans, as well as the philosopher Karl Popper and the chemist and philosopher Michael Polanyi. They named the group after the small Swiss town in which they convened, Mont Pelerin, near Vevey, Switzerland. The formation of the Mont Pelerin Society was financed by Europeans and a highly conservative tax-exempt American foundation, the William Volker Charitable Fund of Kansas City, founded by prosperous right-wing local businessmen. The fund also helped finance the Foundation for Economic Education, which published the Friedman-Sigler paper on rent control. After the remarkable success of The Road to Serfdom, the Volker Fund attempted to bring Hayek from London to an American university.


pages: 636 words: 202,284

Piracy : The Intellectual Property Wars from Gutenberg to Gates by Adrian Johns

active measures, banking crisis, Berlin Wall, British Empire, Buckminster Fuller, business intelligence, commoditize, Corn Laws, demand response, distributed generation, Douglas Engelbart, Douglas Engelbart, Edmond Halley, Ernest Rutherford, Fellow of the Royal Society, full employment, Hacker Ethic, Howard Rheingold, informal economy, invention of the printing press, Isaac Newton, James Watt: steam engine, John Harrison: Longitude, Marshall McLuhan, Mont Pelerin Society, new economy, New Journalism, Norbert Wiener, pirate software, Republic of Letters, Richard Stallman, road to serfdom, Ronald Coase, software patent, South Sea Bubble, Steven Levy, Stewart Brand, Ted Nelson, the scientific method, traveling salesman, Whole Earth Catalog

Friedrich Hayek’s Road to Serfdom and Karl Popper’s Open Society and Its Enemies became the two bestknown statements of the position against such policies, Hayek in particular warning of a slippery slope from state planning to totalitarianism. The Road to Serfdom backfired at the time, being widely read as hyperbolic. When Labour did take power, Hayek and his allies retreated and formed themselves into the Mont Pèlerin Society, a group dedicated to economic liberalism in what they perceived to be a hostile world. Polanyi was a foundermember. His view of science was an integral part of this commitment, and his transitory Society for Freedom in Science had had parallel aims. He conceived of the scientist as the exemplary practitioner of what he called “public liberty.” That is, the scientist’s independence from social control was at root the same as that of the witness, judge, and voter.


pages: 767 words: 208,933

Liberalism at Large: The World According to the Economist by Alex Zevin

activist fund / activist shareholder / activist investor, affirmative action, anti-communist, Asian financial crisis, bank run, Berlin Wall, Big bang: deregulation of the City of London, Bretton Woods, British Empire, business climate, business cycle, capital controls, centre right, Chelsea Manning, collective bargaining, Columbine, Corn Laws, corporate governance, corporate social responsibility, creative destruction, credit crunch, David Ricardo: comparative advantage, debt deflation, desegregation, disruptive innovation, Donald Trump, Edward Snowden, failed state, Fall of the Berlin Wall, financial deregulation, financial innovation, Francis Fukuyama: the end of history, full employment, Gini coefficient, global supply chain, hiring and firing, imperial preference, income inequality, interest rate derivative, invisible hand, John von Neumann, Joseph Schumpeter, Julian Assange, Khartoum Gordon, land reform, liberal capitalism, liberal world order, light touch regulation, Long Term Capital Management, market bubble, Martin Wolf, means of production, Mikhail Gorbachev, Monroe Doctrine, Mont Pelerin Society, moral hazard, Naomi Klein, new economy, New Journalism, Norman Macrae, Northern Rock, Occupy movement, Philip Mirowski, plutocrats, Plutocrats, price stability, quantitative easing, race to the bottom, railway mania, rent control, rent-seeking, road to serfdom, Ronald Reagan, Rosa Parks, Snapchat, Socratic dialogue, The Wealth of Nations by Adam Smith, Thomas Malthus, too big to fail, trade liberalization, trade route, unbanked and underbanked, underbanked, unorthodox policies, upwardly mobile, War on Poverty, WikiLeaks, Winter of Discontent, Yom Kippur War, young professional

In the 30s, the stiffest resistance to Keynes had after all come from the LSE, where before departing for the US, Hayek wrote The Road to Serfdom as a call to reject ‘foreign ideas’ about the state, and return to the classical conceptions of Smith and Mill; and the economics department had ties from its inception to the most important international association of neoliberal thinkers, the Mont Pelerin Society in Switzerland, founded in 1947.90 The launch in 1955 of the Institute for Economic Affairs further cemented these connections. Arthur Seldon and Ralph Harris developed the IEA into a powerful corporate fundraiser in Britain, inviting leading US academics to give talks, and publishing pamphlets to win those whom Hayek deemed ‘second-hand dealers in ideas’ – teachers, journalists, doctors, lecturers, politicians and businessmen – to its principles.91 By 1974, many were converts.


pages: 756 words: 228,797

Ayn Rand and the World She Made by Anne C. Heller

affirmative action, Albert Einstein, American ideology, anti-communist, Bolshevik threat, Charles Lindbergh, conceptual framework, greed is good, laissez-faire capitalism, Milgram experiment, money market fund, Mont Pelerin Society, New Journalism, open borders, price stability, profit motive, rent control, rolodex, Ronald Reagan, Silicon Valley, the scientific method, theory of mind, Thorstein Veblen, transcontinental railway, upwardly mobile, wage slave, War on Poverty, Works Progress Administration, young professional

Ashby, having returned to California with a degree from Harvard, was editing a quasi-religious libertarian magazine called Faith and Freedom; no doubt that sealed his fate with Rand. Yet he continued to think of her as the twentieth century’s most important philosopher. “Whenever I wrote anything” in the following decades, he said in his eighties, “I tried to slip in her name.” She never joined the influential Mont Pelerin Society, an annual free-market think tank, and she shunned the old J. B. Matthews crowd, many of whom now wrote for National Review. Even as old bonds loosened, however, professional good tidings continued to arrive. In the spring of 1958, Atlas Shrugged was nominated for a National Book Award, along with a dozen other distinguished novels of 1957, including James Agee’s A Death in the Family, John Cheever’s The Wapshot Chronicle, and Nabokov’s second novel in English, Pnin, about an awkward but endearing Russian émigré professor teaching in an American college.