181 results back to index
air freight, anti-communist, barriers to entry, Bay Area Rapid Transit, British Empire, call centre, collective bargaining, conceptual framework, David Ricardo: comparative advantage, deindustrialization, deskilling, Edward Glaeser, Erik Brynjolfsson, full employment, global supply chain, intermodal, Isaac Newton, job automation, knowledge economy, Malcom McLean invented shipping containers, manufacturing employment, Network effects, New Economic Geography, new economy, oil shock, Panamax, Port of Oakland, post-Panamax, Productivity paradox, refrigerator car, South China Sea, trade route, Works Progress Administration, Yom Kippur War, zero-sum game
The split among PMA members is detailed in Fairley, Facing Mechanization, p. 125, and Winter, “Thirty Years of Collective Bargaining,” chap. 5. Hartman, Collective Bargaining, pp. 99–100, discusses opposition within the ILWU. Nearly one-third of San Francisco longshoremen were over age fifty-four, and only 11 percent were younger than thirty-five. See Robert W. Cherny, “Longshoremen of San Francisco Bay, 1849–1960,” in Da-vies et al., Dock Workers, 1:137. 27. Hartman, Collective Bargaining, pp. 164–66. 28. Ibid., pp. 124–44 and 272–279; Finlay, Work on the Waterfront, p. 65. 29. Hartman quotation, Collective Bargaining, p. 150; on “Bridges loads,” see Larrowe, Harry Bridges, p. 356. 30. Bridges statement in ILWU/PMA joint meeting, August 7, 1963, quoted in Hartman, Collective Bargaining, p. 147; arbitration award ibid., p. 148. 31. Cost savings from ibid., p. 178; container statistics derived from ibid., pp. 160 and 270.
Part One: ‘The Good Old Days’ “(Berkeley, 1978), p. 21; Fairley, Facing Mechanization, p. 48; Hartman, Collective Bargaining, pp. 73–83. 18. Jennifer Marie Winter, “Thirty Years of Collective Bargaining: Joseph Paul St. Sure, Management Labor Negotiator 1902–1966” (M.A. thesis, California State University at Sacramento, 1991), chap. 4. In one well-known incident, the permanent labor arbitrator in the port of San Francisco was called to a ship to deal with a safety grievance and found only four workers on the job, sitting in the hold, drinking coffee. The rest of their gang, he was informed, had gone to a ball game and would come to work at midnight. See Larrowe, Harry Bridges, p. 352. Hartman, Collective Bargaining, pp. 84–88; ILWU, “Coast Labor Relations Committee Report,” October 15, 1957. 19. Hartman, Collective Bargaining, pp. 87–89; Sidney Roger, “A Liberal Journalist on the Air and on the Waterfront,” interview by Julie Shearer (Berkeley, 1998), p. 616. 20.
Warning about automation appears in ILWU, “Report… to the Thirteenth Biennial Convention,” p. 10. Comment about Bridges is from Roger, “A Liberal Journalist,” p. 187. 22. For more on these talks, see Fairley, Facing Mechanization, pp. 103–104; Hartman, Collective Bargaining, pp. 90–94; Larrowe, Harry Bridges, pp. 352–353. The full text of the ILA proposal is reprinted in Fairley, Facing Mechanization, p. 80. 23. Fairley, Facing Mechanization, pp. 122–129; Hartman, Collective Bargaining, pp. 96–97; Winter, “Thirty Years of Collective Bargaining,” chap. 5. Savings per hour calculated from data in Hartman, Collective Bargaining, p. 123. 24. Fairley, Facing Mechanization, pp. 132–133, and Germain Bulcke, “Longshore Leader and ILWU-Pacific Maritime Association Arbitrator,” interview by Estolv Ethan Ward, (Berkeley, 1984), p. 66. 25. Pacific Maritime Association and ILWU, “Memorandum of Agreement on Mechanization and Modernization,” October 18, 1960; Ross, “Waterfront Labor Response,” p. 413. 26.
The Fissured Workplace by David Weil
accounting loophole / creative accounting, affirmative action, Affordable Care Act / Obamacare, banking crisis, barriers to entry, business process, call centre, Carmen Reinhart, Cass Sunstein, Clayton Christensen, clean water, collective bargaining, commoditize, corporate governance, corporate raider, Corrections Corporation of America, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, declining real wages, employer provided health coverage, Frank Levy and Richard Murnane: The New Division of Labor, George Akerlof, global supply chain, global value chain, hiring and firing, income inequality, information asymmetry, intermodal, inventory management, Jane Jacobs, Kenneth Rogoff, law of one price, loss aversion, low skilled workers, minimum wage unemployment, moral hazard, Network effects, new economy, occupational segregation, Paul Samuelson, performance metric, pre–internet, price discrimination, principal–agent problem, Rana Plaza, Richard Florida, Richard Thaler, Ronald Coase, shareholder value, Silicon Valley, statistical model, Steve Jobs, supply-chain management, The Death and Life of Great American Cities, The Nature of the Firm, transaction costs, ultimatum game, union organizing, women in the workforce, Y2K, yield management
In a large organization, vertical equity issues like these can be particularly vexing. Unionized workplaces in traditional manufacturing solved this problem through collectively bargained deals that linked these grades—often providing for upward ratcheting of the whole wage system (leaving relative wages intact) over time. The collectively bargained contract creates a transparent set of expectations of what is fair (in part because it reflects the preferences of the workforce, at least as represented by the union’s negotiating committee). Large nonunion workplaces also must accommodate the demands of vertical equity in setting compensation policies, even though unfettered by collective bargaining. Higher wages in part reflect an effort to avoid unionization, but also to avoid the kind of internal frictions described above.26 In his studies of wage policies, Bewley also found that nonunion executives justified formal internal pay structures on the basis of equity.27 Although they acknowledged that differences in pay between grades proved useful as incentives, 69% of the businesses interviewed cited “internal equity, internal harmony, fairness, and good morale” as the principal justification.28 A repercussion of the need to satisfy vertical equity demand is that a large employer might end up paying workers at lower ends of the wage system a higher wage than it might prefer in order to preserve internal labor market peace.
As the elected representative of workers, a union has incentives to act on behalf of the collective interests of members in the bargaining unit.18 Unions are able to gather and disseminate information on workplace laws and rights at low cost, and provide this information through educational programs and apprenticeship training or by alerting members of their rights where a problem or issue arises. Unions also offer individual workers assistance in the exercise of their rights. This may result from the operation of committees established under collective bargaining, as is common in safety and health, or via the help of union staff who can trigger inspections, oversee pension fund investments, or help members file unemployment claims. Most importantly, unions can substantially reduce the costs associated with potential employer discrimination by helping affected employees use antidiscrimination provisions of the labor policies and providing this protection via collective bargaining agreements regulating dismissals. There is now over two decades of evidence demonstrating that workers are more likely to exercise rights given the presence of a labor union. Workers in unionized workplaces are more likely to exercise rights under the Occupational Safety and Health Act, the Mine Safety and Health Act, the Family Medical Leave Act, and a variety of other federal statutes.
The Fair Labor Standards Act, which sets minimum wage and overtime standards and regulates child labor, defines an employee as “any individual who is employed by an employer” and states that “employ includes to suffer or permit to work.” To help clarify this vague definition, courts apply an economic realities test to evaluate the particular employment situation surrounding a worker and an employer. This potentially gives the agency responsible for enforcement the latitude to adjust to changing employment conditions on the ground.13 The National Labor Relations Act, the federal statute governing union organizing and collective bargaining, also uses an economic reality test for defining employment. However, a Supreme Court decision in 1944 holding that boys who sold newspapers on the street on commission were in fact Hearst employees despite the company’s contention that they were independent contractors led enraged conservatives in Congress to amend the National Labor Relations Act in 1947 to specifically exempt independent contractors.14 This has led historically to very narrow readings of coverage and application of the act.
Affordable Care Act / Obamacare, back-to-the-land, barriers to entry, basic income, Bernie Sanders, big-box store, blue-collar work, Branko Milanovic, British Empire, Capital in the Twenty-First Century by Thomas Piketty, clean water, cognitive dissonance, collateralized debt obligation, collective bargaining, Community Supported Agriculture, corporate personhood, crony capitalism, deindustrialization, desegregation, Donald Trump, ending welfare as we know it, Frederick Winslow Taylor, full employment, Gini coefficient, income inequality, interchangeable parts, invisible hand, job automation, John Maynard Keynes: technological unemployment, labor-force participation, land reform, land tenure, low skilled workers, low-wage service sector, mandatory minimum, mass incarceration, minimum wage unemployment, moral hazard, moral panic, mortgage debt, New Urbanism, non-tariff barriers, obamacare, occupational segregation, Occupy movement, oil shock, Plutocrats, plutocrats, price discrimination, race to the bottom, rent control, road to serfdom, Ronald Reagan, Scientific racism, Simon Kuznets, single-payer health, strikebreaker, too big to fail, trade route, transcontinental railway, Triangle Shirtwaist Factory, trickle-down economics, universal basic income, Upton Sinclair, upwardly mobile, urban renewal, wage slave, War on Poverty, women in the workforce, working poor, Works Progress Administration
While Roosevelt reached out to his labor constituency through the Fair Labor Standards Act, which recognized the right to unionize and created the National Labor Relations Board, labor unions and Democratic politicians were divided on the advisability of a minimum wage.73 The AFL favored collective bargaining between (its mostly skilled, male) employees and their employers. The Congress of Industrial Organizations (CIO), which was more inclusive, endorsed a minimum wage because it offered a starting point for collective bargaining rather than a ceiling.74 The Democratic Party was divided because the labor market in the United States was segmented. Southern workers earned lower wages, lowering the cost of production in the South and promoting southern competitiveness. For example, in North Carolina, farmers objected to the introduction of federal jobs because they interfered with their ability to hire black farm laborers and domestic workers at prevailing (low) wages.
Moreover, if American industries were protected, American manufacturing workers could earn higher wages and avoid becoming impoverished like English factory workers.22 Newly enfranchised workingmen not only participated in presidential elections and shaped concerns about inequality at the national level, they also participated in a popular politics much closer to the ground. As historian Paul Gilje shows, the nature of rioting changed in the 1820s and 1830s from deferential crowd behavior to “collective bargaining by riot.” This tactic spread from the ranks of unskilled laborers, who traditionally had little leverage, to journeymen in the skilled trades, who felt increasingly pressed between an affluent class of master craftsmen and a large pool of partly trained workers who were capable of doing the journeymen’s jobs for less money. Working people in this period talked not about class but rather about productivity as indicative of social worth, since productivity illustrated a “virtuous, honest, hardworking citizenry.”23 This social critique implicitly rejected the “gentility” to which the middle and upper classes aspired.
But in the first few decades of the twentieth century, third parties also emerged, deploying a more critical language of class. Voters’ options ranged from the Progressive Party to the Socialist Party, the Farmer-Labor Party, and the Workers’ Party. Rather than seek revolution, the Socialist Party, which nominated Eugene V. Debs for president in 1912, pursued legislation that benefited workers, like child labor legislation and workers’ compensation, and the strategy of collective bargaining.46 The Socialist Party also advocated for votes for women, who could see that the state might serve to assist rather than to hinder them. Socialist parties elected 12,000 candidates to office in 340 cities in 1912, and Eugene Debs attracted 6 percent of the popular vote. Once in office, Socialist city officers addressed crucial working-class issues like sanitation, zoning, and improvement of squalid working-class neighborhoods.47 But their reach was limited, because despite their gradualism, they were met with antisocialist hysteria that culminated in the first Red Scare of the late 1910s.
Brave New World of Work by Ulrich Beck
affirmative action, Asian financial crisis, basic income, Berlin Wall, collective bargaining, conceptual framework, Fall of the Berlin Wall, feminist movement, full employment, future of work, Gunnar Myrdal, hiring and firing, illegal immigration, income inequality, informal economy, job automation, knowledge worker, labour market flexibility, labour mobility, low skilled workers, McJob, means of production, mini-job, postnationalism / post nation state, profit maximization, purchasing power parity, rising living standards, Silicon Valley, working poor, working-age population, zero-sum game
Many women would like to take a break, but do not do so because they fear ending up in the ‘part-time ghetto of the moving track’ (Suzanne Franks). Basically, this raises the question of how a postnational yet political civil society is possible in Europe. My answer is as follows. Only if the insecure new forms of paid employment are converted into a right to multiple work, a right to discontinuity, a right to choose working hours, a right to sovereignty over working time enshrined in collective-bargaining agreements – only then can new free spaces be secured in the coordination of work, life and political activity. Every person would thus be enabled to plan his or her own life over a period of one or more years, in its transitions between family, paid employment, leisure and political involvement, and to harmonize this with the claims and demands of others. Only then can the three principles of freedom, security and responsibility be adjusted and reaffirmed.
Until well into the 1970s, Germany's ‘Fordist diamond’ was bound up with the joint productivity of the key automobile, chemicals, foodstuffs, engineering and electrical sectors. Their success rested in turn upon a unique set of historical, cultural and political conditions: the proprietary ‘skilled worker’ and a corresponding culture of training and lifestyle; mass demand in the home market for mass-produced goods; a matching local supply economy; strong trade unions and free collective bargaining that was also highly valued by politicians; a corporate culture geared to partnership between both sides of industry; a guiding political image of ‘working citizens’, which replaced talk of class struggle with moderate negotiating practices and a commitment to democratic institutions. While Germany's postwar economic miracle led to collective advancement that favoured acceptance of the democratic system, both the question of unemployment and the question of democracy are posed differently in the ‘post-national constellation’ in which the German model has been losing the ground beneath its feet.
Such a history would then, in the nature of things, be full of breaks and contradictions; education would be interrupted and resumed, McJobs would often rank equally with starting up in a business of one's own, and everything would be woven together into a quite individual web of activities and employ-ment situations. One thing, however, is common to all these life-constructions: they lie outside the classical employee's biography, outside union agreements and statutory salary scales, outside collective bargaining and home mortgage contracts.32 And they are the basis for a precarious new culture of independence: ‘business men and women in their own affairs’. Scenario 8: individualization of work – disintegration of society Linda's new working life is not without its drawbacks. Chief among them is a constant cloud of anxiety about finding the next job. In some ways Linda feels isolated and vulnerable.
The End of Work by Jeremy Rifkin
banking crisis, Bertrand Russell: In Praise of Idleness, blue-collar work, cashless society, collective bargaining, computer age, deskilling, Dissolution of the Soviet Union, employer provided health coverage, Erik Brynjolfsson, full employment, future of work, general-purpose programming language, George Gilder, global village, hiring and firing, informal economy, interchangeable parts, invention of the telegraph, Jacques de Vaucanson, job automation, John Maynard Keynes: technological unemployment, knowledge economy, knowledge worker, land reform, low skilled workers, means of production, new economy, New Urbanism, Paul Samuelson, pink-collar, post-industrial society, Productivity paradox, Richard Florida, Ronald Reagan, Silicon Valley, speech recognition, strikebreaker, technoutopianism, Thorstein Veblen, Toyota Production System, trade route, trickle-down economics, women in the workforce, working poor, working-age population, Works Progress Administration
The end of World War II brought a wave of labor unrest. Angry over wage freezes imposed during the war and anxious to make up for ground lost in collective bargaining because of the no-strike pledge during the conflict, organized labor began to challenge management on a wide front. Between 1945 and 1955, the United States experienced over 43,000 strikes in the most concentrated wave of labor/management confrontations in industrial history.27 Crossing into the High-Tech Frontier 67 Management were growing concerned over what they perceived as organized labors invasion of their traditional terrain. Issues of hiring and firing, promotions, discipline actions, health benefits, and safety concerns were brought into the collective bargaining process in every industry. Business Week warned that "the time has come to take a stand ... against the further encroachment into the province of management."28 Menaced by the increasing intensi ty of labor's demands and determined to maintain its long-standing control over the means of production, America's industrial giants turned to the new technology of automation as much to rid themselves of rebellious workers as to enhance their productivity and profit.
The prospect of labor displacement can be eased, in part, by joint consultation between companies and unions and by management planning to schedule the introduction of automation in periods of high employment, to permit attrition, reduce the size of the labor force, and to allow time for the retraining of employees. 17 The AFL-CIO passed a number of resolutions at its annual conventions in the 1960s, calling for retraining provisions in collective bargaining agreements. Employers were more than willing to concede 86 THE THIRD INDUSTRIAL REVOLUTION to labor's new demands. The costs of introducing retraining programs was far less onerous than the prospect of a long and protracted battle with labor over the introduction of new automated technologies on the shop floor. Between 1960 and 1967, the percentage of collective bargaining agreements containing provisions for job retraining increased from 12 percent to more than 40 percent. iS Labor also lent its political muscle to federal legislation to promote job retraining. In 1962 the AFL-CIO mobilized rank-and-file support behind the passage of the Manpower Development Training Act, which was designed to provide retraining for workers displaced by automation.
., Automation: Implications for the Future (New York: Vintage Books, 1962), pp. 269, 275- 276. 15. Noble, p. 250. 16. Ibid., p. 253. 17. CIO Committee on Economic Policy, Automation (Washington, D.e.: Congress of Independent Organizations, 1955), pp. 21-22. 18. U.S. Bureau of Labor Statistics, Major Collective Bargaining AgreementsTraining and Retraining Provisions, Bulletin no. 1425-7 (Washington, D.e.: Government Printing Office, 1969), p. 4; U.S. Bureau of Labor Statistics, Characteristics of Major Collective Bargaining Agreements, January 1, 1980, Bulletin no. 2095, p. 105. 19. Kalleberg, Arne L., et al., "Labor in the Newspaper Industry," in Cornfield, Daniel B., Workers, Managers and Technological Change: Emerging Patterns of Labor Relations (New York: Plenum Press, 1987), p. 64. 20. Raskin, A. H., ''A Reporter at Large: Part I, 'Changes in the Balance of Power'; Part II, 'Intrigue at the Summit,''' The New Yorker, January 22, 29, 1979.
Crisis and Leviathan: Critical Episodes in the Growth of American Government by Robert Higgs, Arthur A. Ekirch, Jr.
Alistair Cooke, clean water, collective bargaining, creative destruction, credit crunch, declining real wages, endowment effect, fiat currency, fixed income, full employment, hiring and firing, income per capita, Joseph Schumpeter, laissez-faire capitalism, manufacturing employment, means of production, minimum wage unemployment, Plutocrats, plutocrats, post-industrial society, price discrimination, profit motive, rent control, rent-seeking, Richard Thaler, road to serfdom, Ronald Reagan, Simon Kuznets, strikebreaker, The Wealth of Nations by Adam Smith, total factor productivity, transaction costs, transcontinental railway, union organizing, Upton Sinclair, War on Poverty, Works Progress Administration
As the old, informally paternalistic relationships declined and a more dynamic, impersonal labor market lurched unpredictably from year to year, misunderstandings and mutual hostility became progressively more common. 41 Labor unions, with their organizational tactics, attempts at collective bargaining, and episodic strikes, galled employers mightily. Many bossesand others, including many workers-questioned the legitimacy of unions as representatives of individual workers. Employers resented the challenge to their prerogatives to manage their own private property and contractual affairs. By the second half of the nineteenth century the courts were generally holding that the mere existence and collective-bargaining activities of unions did not violate the law, but important legal questions remained unsettled, especially those pertaining to the permissible bounds of strikes, picketing, and boycotts.
Stimson, disgusted by the "national refusal to fight an all-out war," observed that "Both labour and management preferred the anarchy of a voluntary system to the imagined perils of Government direction."56 In truth the opponents had more self-serving concerns. Unionists, who ranted about "slave labor" and "involuntary servitude," did not oppose military conscription-surely a more reprehensible form of involuntary servitude than assignment to a safe, well-paid civilian job. Union leaders knew that national service would put an end to genuine collective bargaining and render them personally superfluous. Philip Murray warned the CIO executive board: destroy collective bargaining "and see how effective you will be with your people back home. You will find out how quick they will tell you to go to hell." Businessmen, of course, wanted to retain control over hiring and firing. They also perceived that drafting civilian labor would lead directly to demands for "conscription of profits"-that is, confiscatory taxation-and governmental takeovers of their production facilities. 57 Stimson and those in his camp had little regard for individual liberty in wartime, but they had at least the virtue of moral (immoral?)
Sometimes workers could be intimidated into staying on the job-once the President threatened to blacklist striking machinists to deny them war-related work and promised that "the draft boards will be instructed to reject any claim of exemption based on your alleged usefulness on war production"-but usually the government correctly perceived that such heavy-handedness would only prove counterproductive. 61 The prevailing policy was the more conciliatory one of supporting union organization and compulsory collective bargaining, the eight-hour day, and union work rules. Employers could be indemnified by cost-plus contracts with governmental procurement agencies. To help resolve some of the larger and more threatening labor-management disputes, Wilson in September 191 7 created the President's Mediation Commission, whose secretary and legal counsel was Felix Frankfurter, a Harvard law professor destined to exert a great influence on public affairs for a long time to come. 62 As the government's involvement in labor relations expanded, it grew more and more confused, finally prompting a reorganization in January 1918 that featured the creation by executive order of a War Labor Administration to be headed by the Secretary of Labor, William B.
Sleeping Giant: How the New Working Class Will Transform America by Tamara Draut
affirmative action, Affordable Care Act / Obamacare, always be closing, battle of ideas, big-box store, blue-collar work, collective bargaining, creative destruction, David Brooks, declining real wages, deindustrialization, desegregation, Detroit bankruptcy, Donald Trump, Edward Glaeser, ending welfare as we know it, Ferguson, Missouri, financial deregulation, full employment, immigration reform, income inequality, invisible hand, job satisfaction, knowledge economy, knowledge worker, low skilled workers, mass incarceration, minimum wage unemployment, mortgage tax deduction, new economy, obamacare, occupational segregation, payday loans, pink-collar, Plutocrats, plutocrats, Powell Memorandum, profit motive, race to the bottom, Ralph Nader, rent-seeking, rising living standards, Ronald Reagan, The Bell Curve by Richard Herrnstein and Charles Murray, The Wealth of Nations by Adam Smith, trickle-down economics, union organizing, upwardly mobile, War on Poverty, white flight, women in the workforce, young professional
Back when President Franklin Roosevelt signed into law some of the nation’s first labor protections regarding wages and hours, the laws were written to ensure that the majority of jobs worked by African Americans would be exempt—indeed, it was the only way to get the bill passed by a Congress controlled by segregationist southern Democrats.24 While not explicitly carving out an exception for African American workers, the National Labor Relations Act of 1935, which established the right of workers to collective bargaining, and the Fair Labor Standards Act of 1938, which established the right to a minimum wage and overtime pay, both specifically exempted agricultural and domestic workers from these rights. Even though caregiving work in the home has become an official part of our economy—and a pretty big one at that, with 2.5 million jobs and fast growth—services provided in the home for pay were essentially not considered “real work” under existing labor law or standards until very recently.
The political calculus and ideology displayed by the administration reflected decades of shifting allegiances and power in the country, including the formerly proud “party of labor.” In fact, you, reader, may even be thinking to yourself that unions are some kind of industrial-age relic with no relevance in today’s economy—that they’re dying because they make no sense in today’s tech-rich, global-scale economy. So let’s take a quick look back and remind ourselves of what unions have done for American society. The power of unions transcends the collective bargaining done on behalf of their workers. The real power is that through union dues, the labor movement can amass significant resources to engage in voter turnout, agenda setting, and issue advocacy, all on behalf of ordinary Americans. It’s that amassing of political power that is so threatening to conservatives and corporate America. After all, big labor has been responsible for advances in our day-to-day lives that still make conservatives livid: Medicare, Medicaid, and, yes, Obamacare too; unemployment insurance; Social Security; the forty-hour workweek; pensions (what’s left of them, anyway), and the minimum wage.
According to Joe, McKesson used to tout that the company had never had one of its facilities vote in a union that started out as McKesson, but that changed in October 2011, when local Teamsters 78 unionized the distribution center in Tampa, Florida. But McKesson isn’t rolling over easily on this one. A tape-recorded session of one of the captive-audience meetings is available online.45 In one of the forty-five-minute sessions, the director of labor relations for McKesson gives a presentation on “how collective bargaining works.” He tells the employees that “if the union gets voted in, everything that you have goes on the table and we negotiate it. So the current wages you have goes on the table, your benefits, your UPTOs [universal paid time off], and all your working conditions go on the table. And through the process of give-and-take, we bargain a contract. Now we give and take. So if I give something, I take something.
How Will Capitalism End? by Wolfgang Streeck
accounting loophole / creative accounting, Airbnb, basic income, Ben Bernanke: helicopter money, Bretton Woods, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, central bank independence, centre right, Clayton Christensen, collective bargaining, conceptual framework, corporate governance, creative destruction, credit crunch, David Brooks, David Graeber, debt deflation, deglobalization, deindustrialization, en.wikipedia.org, eurozone crisis, failed state, financial deregulation, financial innovation, first-past-the-post, fixed income, full employment, Gini coefficient, global reserve currency, Google Glasses, haute cuisine, income inequality, information asymmetry, invisible hand, John Maynard Keynes: Economic Possibilities for our Grandchildren, Kenneth Rogoff, labour market flexibility, labour mobility, late capitalism, liberal capitalism, market bubble, means of production, moral hazard, North Sea oil, offshore financial centre, open borders, pension reform, Plutocrats, plutocrats, Plutonomy: Buying Luxury, Explaining Global Imbalances, post-industrial society, private sector deleveraging, profit maximization, profit motive, quantitative easing, reserve currency, rising living standards, Robert Gordon, savings glut, secular stagnation, shareholder value, sharing economy, sovereign wealth fund, The Future of Employment, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, transaction costs, Uber for X, upwardly mobile, Vilfredo Pareto, winner-take-all economy, Wolfgang Streeck
The structure of the post-war settlement between labour and capital was fundamentally the same across the otherwise widely different countries where democratic capitalism had come to be instituted. It included an expanding welfare state, the right of workers to free collective bargaining and a political guarantee of full employment, underwritten by governments making extensive use of the Keynesian economic toolkit. When growth began to falter in the late 1960s, however, this combination became difficult to maintain. While free collective bargaining enabled workers through their unions to act on what had become firmly ingrained expectations of regular yearly wage increases, governments’ commitment to full employment, together with a growing welfare state, protected unions from potential employment losses caused by wage settlements in excess of productivity growth.
In subsequent years governments all over the Western world faced the question of how to make trade unions moderate their members’ wage demands without having to rescind the Keynesian promise of full employment. In countries where the institutional structure of the collective-bargaining system was not conducive to the negotiation of tripartite ‘social pacts’, most governments remained convinced throughout the 1970s that allowing unemployment to rise in order to contain real wage increases was too risky for their own survival, if not for the stability of capitalist democracy as such. Their only way out was an accommodating monetary policy which, while allowing free collective bargaining and full employment to continue to coexist, did so at the expense of raising the rate of inflation to levels that accelerated over time. In its early stages, inflation was not much of a problem for workers represented by strong trade unions and politically powerful enough to achieve de facto wage indexation.
The upward shift of conflict arenas during the decades of neoliberal progress was accompanied by a gradual erosion of the post-war standard model of democracy, pushed forward by, as well as allowing for, the gradual emergence of a new, ‘Hayekian’ growth model for OECD capitalism. By the standard model of democracy, I mean the peculiar combination, as had come to be considered normal in OECD capitalism after 1945, of reasonably free elections, government by established mass parties, ideally one of the Right and one of the Left, and strong trade unions and employer associations under a firmly institutionalized collective bargaining regime, with legal rights to strike and, sometimes, lock-out. This model reached its peak in the 1970s, after which it began to disintegrate28. The advance of neoliberalism coincided with steadily declining electoral turnout in all countries, rare and short-lived exceptions notwithstanding. The shrinking of the electorate was, moreover, highly asymmetrical: those that dropped out of electoral politics came overwhelmingly from the lower end of the income scale – ironically where the need for egalitarian democracy is greatest.
Occupying Wall Street: The Inside Story of an Action That Changed America by Writers For The 99%
Bay Area Rapid Transit, citizen journalism, collective bargaining, desegregation, feminist movement, income inequality, McMansion, Mohammed Bouazizi, Occupy movement, Port of Oakland, We are the 99%, young professional
Indeed, OWS and the burgeoning student movement it fostered provided a lucrative opportunity for the labor movement to stage a broader-based counter-attack against owners’ increasingly hard-line tactics at the bargaining table, as well as the renewed threats against collective bargaining in statehouses nationwide. Maida Rosenstein, president of United Auto Workers Local 2110, said, “We in the UAW had been talking about how do we mobilize people and our members not just electronically? How do we mobilize people to get out and protest and rally and demonstrate?” The protests against Wisconsin Governor Scott Walker’s attacks on collective bargaining rights in February of 2011, in which students and union workers occupied the State Capitol in Madison before erecting a tent city, served as an important precedent. While they failed to prevent Walker’s unionbusting law from passing, those protests served to radicalize the labor movement nationwide, and made union leaders quick to recognize the potential benefits of aligning with Occupy Wall Street.
These committees and specially designated spaces would serve as a template for later movements in Europe and the United States. Three days later, on February 14, the first wave of popular unrest in the U.S. shook the Wisconsin State Capitol in Madison and quickly reached nearby college campuses and the cities of Milwaukee, Green Bay, and Columbus, Ohio. The revolt had a specific target—the Wisconsin Budget Repair Bill, which also limited collective bargaining rights–but some protesters brandished Egyptian flags. On February 20, Egyptian union leader Kamal Abbas posted a YouTube video encouraging the “workers in Wisconsin.” “We stand with you as you stood with us,” he said. By summer, the uprisings had spread to Sub-Saharan Africa, Latin America, Asia, and Europe. All of these protests influenced the people who were to participate in OWS. Senia, from OWS’s Press Working Group, noted, for example, that Latina/o occupiers got “a really big inspiration” from less-publicized but recent protests in Chile, Colombia, Argentina, Brazil, Mexico, and Venezuela.
Before Occupy Wall Street, alliances between students at public and private colleges and universities across the city benefited from the unionization of student workers and more general union support. Many student activists in New York Students Rising were members of Communication Workers of America (CWA) graduate employee locals. They had been active in the March 4 Day of Action earlier that year against tuition hikes, departmental cuts and other attacks on Higher Education that a growing number of students understood to be connected to the nationwide attacks on collective bargaining and the U.S. working class. NYU students have also been involved in local union fights, lending support to adjunct faculty contract negotiations (the adjunct faculty at NYU and the New School are both represented by UAW Local 7902), the Teamsters art-handlers who are currently locked out of Sotheby’s and Stella D’Oro workers. NYU graduate student workers themselves are still in the midst of a recognition campaign for their union, GSOC-UAW Local 2110.
The Globalization of Inequality by François Bourguignon
Berlin Wall, Branko Milanovic, Capital in the Twenty-First Century by Thomas Piketty, collective bargaining, Credit Default Swap, deglobalization, deindustrialization, Doha Development Round, Edward Glaeser, European colonialism, Fall of the Berlin Wall, financial deregulation, financial intermediation, gender pay gap, Gini coefficient, income inequality, income per capita, labor-force participation, liberal capitalism, minimum wage unemployment, offshore financial centre, open economy, Pareto efficiency, purchasing power parity, race to the bottom, Robert Gordon, Simon Kuznets, structural adjustment programs, The Spirit Level, too big to fail, very high income, Washington Consensus
It is not clear that the countries that went in the direction of the first option by deregulating their labor markets necessarily ended up with increased inequality as a result. Other labor market institutions have a more direct impact on inequality. The first of these I will examine will be collective bargaining for wages and the role of unions. Nearly all developed economies, with the exception of those in Belgium and some Scandinavian countries, have seen a conspicuous drop in the power of unions and a commensurate decrease in the role of collective bargaining. There are several explanations for this evolution. There was, of course, the fact that certain governments, like those of Reagan and Thatcher, were hostile to union activity— which, as we remember, was played out rather spectacularly with regard to air traffic controllers in one case and miners in the other.
And, finally, disinflation radically reduced the utility of collective bargaining in determining salary levels. In a high-inflation world, workers and employers find it difficult to negotiate on an individual basis, without explicit reference to the way other workers’ salaries are adjusted for inflation, which creates a clear opportunity for the unions to coordinate wage negotiations. In a low-inflation world, on the contrary, personal characteristics and performances are easier to take into account in individual wage negotiations. Government-mandated minimum wage laws are another tool for counteracting labor market forces and limiting income inequality, or at the very least wage inequality. Most developed countries have such laws, even if some of them allow collective bargaining to determine the minimum wage for specific sectors of the economy.
The Anglo-Saxon countries are not among the reformers, but regulation in these countries is already far less restrictive than elsewhere. France is one of the rare countries in which, according to the OECD, the employment 100 Chapter 3 protection laws have become stronger over this period, albeit only slightly. There are various other ways besides these employment protection laws that the labor market is regulated, including through the role of unions and collective bargaining, social contributions, or wage deductions, and payroll charges imposed on employees and employers, unemployment compensation and, of course, minimum wage laws. It turns out that in a large number of developed countries, one or more of these methods for regulating the labor market have been significantly reformed over the last twenty or thirty years. Economists have studied these reforms closely, hoping to understand their effects and to ascertain whether these effects were what policymakers had anticipated, specifically with respect to questions of inequality and employment.
Social Democratic America by Lane Kenworthy
affirmative action, Affordable Care Act / Obamacare, barriers to entry, basic income, Celtic Tiger, centre right, clean water, collective bargaining, corporate governance, David Brooks, desegregation, Edward Glaeser, endogenous growth, full employment, Gini coefficient, hiring and firing, Home mortgage interest deduction, illegal immigration, income inequality, invisible hand, Kenneth Arrow, labor-force participation, manufacturing employment, market bubble, minimum wage unemployment, new economy, postindustrial economy, purchasing power parity, race to the bottom, rent-seeking, rising living standards, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, school choice, shareholder value, sharing economy, Skype, Steve Jobs, too big to fail, Tyler Cowen: Great Stagnation, union organizing, universal basic income, War on Poverty, working poor, zero day
The answer is that most of the time there are more people seeking jobs than employers seeking workers. The resulting power asymmetry tends to force wages down to a very low level. Legislation (a statutory minimum wage) or collective bargaining can impose a wage floor with no employment-reducing impact, and so it is a good idea to do so. The trick is to figure out the tipping point—the level above which employment is impeded—and set the wage floor at or near that point. The optimal wage floor will differ across regions. In the United States the federal government sets a minimum wage, but many states and some cities establish a higher minimum. That’s a sensible arrangement. The optimal floor also will differ across industries. This is something collective bargaining is ideally suited to address, but America’s unions are so weak that at some point government may have to play a more active role. 2.
In Denmark, for instance, the hourly wage for a hotel room cleaner as of 2006 was about $16 per hour, making annual full-time earnings around $32,000. In the United States, by contrast, a comparable job would have yielded earnings of about $11,000. In fact, according to calculations by Peter Edelman, half of the jobs in the United States pay less than $34,000 a year, and nearly a quarter pay less than $22,000.128 There is no prospect of low-end service employees in the United States achieving Danish-level wages via collective bargaining. American unions are too weak. But suppose we raised the statutory minimum wage from its current level of $7.25 per hour to $15. Would that be a good thing to do? Maybe not. We should care more about posttransfer-posttax household income than about individual wages, and there are ways to get to a decent income floor that don’t require a high wage floor.129 The Denmark–United States comparison illustrates this.
Earlier I asked you to imagine a rise in the US minimum wage to $15 per hour. In reality, this is extremely unlikely to happen. Figure 4.25 shows the evolution of America’s minimum wage and EITC, expressed in annual (rather than hourly) values. The minimum wage increased steadily until the 1970s, but it then fell and has been flat since. As of 2013 the federal minimum is $7.25 per hour, less than half the Danish (collectively bargained) minimum. We certainly can afford a higher minimum wage, yet recent history offers no reason to believe it will get close to the Danish level. More likely is a moderate increase in the minimum wage coupled with an increase in the EITC. In 1993 the EITC was indexed to the inflation rate, so it, unlike the minimum wage, always keeps up with price increases. In the past several decades it has risen faster than prices, due to legislated increases in the late 1980s, the early 1990s, and 2009.
banking crisis, British Empire, collective bargaining, corporate governance, corporate social responsibility, financial deregulation, Fractional reserve banking, Hernando de Soto, income inequality, invisible hand, Joseph Schumpeter, laissez-faire capitalism, means of production, medical malpractice, Menlo Park, minimum wage unemployment, Norman Mailer, Plutocrats, plutocrats, price stability, profit maximization, profit motive, Ralph Nader, rent control, rent-seeking, Robert Bork, Ronald Coase, Ronald Reagan, Silicon Valley, statistical model, The Wealth of Nations by Adam Smith, transcontinental railway, union organizing, Upton Sinclair, wealth creators, working poor, Works Progress Administration, zero-sum game
A lucid discussion of the ethical and economic case in favor of private property and free-market capitalism. Huber, Peter. Liability: The Legal Revolution and Its Consequences. New York: Basic Books, 1988. Huber describes the causes and consequences of America’s crazy liability law system, in which people with deep pockets are often sued regardless of whether they are liable for harming anyone. Hutt, William H. The Theory of Collective Bargaining. Washington, D.C.: Cato Institute, 1974. Hutt challenges the notion that workers are better off with collective bargaining instead of individual bargaining over wages and working conditions. He also exposes numerous myths about labor unions, such as the myth that unions are necessary to raise the living standards of workers. Kirzner, Israel. Competition and Entrepreneurship. Chicago: University of Chicago Press, 1978. The author explains the role of entrepreneurship in the economy, something that most other economists ignore.
Hoover may have been a world-class mining engineer, but he had a dangerously poor grasp of economics, which fed his desire to remake American society. Joan Hoff Wilson describes Hoover’s basic economic beliefs as follows: There was too much lawlessness, destructive competition, and economic waste, too much unemployment and repetitiveness in factory work; the twelve-hour day was too long; labor lacked the guarantee of collective bargaining; child labor still existed despite prewar progressive legislation; education was inadequate in most states; some people were making too much money—“far beyond the needs of stimulation to initiative.”11 Each of these statements reflected Hoover’s fundamental misunderstanding of economics. While Hoover complained of the “lawlessness” bred by capitalism, it seems to have been lost on him that most of the lawlessness of the 1920s was a direct effect of federal regulation—Prohibition.
Laws against extortion exempted unions as long as the extortion involved “the payment of wages by a bona fide employer to a bona fide employee.”42 We feel the effects of many of these laws even today. Thanks primarily to FDR’s Depression-era labor legislation, labor unions can compel workers to pay dues as a condition of keeping their jobs, with the dues often being used for political purposes unrelated to collective bargaining; are immune from most federal court injunctions; are legally empowered to “represent” all workers in a bargaining unit, regardless of whether they are union members; can compel employers to make their private property available to union officials; are all but immune from paying damages for personal and property injury that they inflict; and can force employers to open up their books to them.43 As Friedrich Hayek wrote in The Constitution of Liberty (1960), “We have now reached a state where they [unions] have become uniquely privileged institutions to which the general rules of law do not apply.
assortative mating, autonomous vehicles, blue-collar work, Bonfire of the Vanities, Branko Milanovic, call centre, collective bargaining, computer age, corporate governance, Credit Default Swap, David Ricardo: comparative advantage, Deng Xiaoping, Erik Brynjolfsson, feminist movement, Frank Levy and Richard Murnane: The New Division of Labor, Gini coefficient, Gunnar Myrdal, income inequality, industrial robot, invisible hand, job automation, Joseph Schumpeter, low skilled workers, lump of labour, manufacturing employment, moral hazard, oil shock, pattern recognition, Paul Samuelson, performance metric, positional goods, post-industrial society, postindustrial economy, Powell Memorandum, purchasing power parity, refrigerator car, rent control, Richard Feynman, Richard Feynman, Ronald Reagan, shareholder value, Silicon Valley, Simon Kuznets, Stephen Hawking, Steve Jobs, The Spirit Level, too big to fail, trickle-down economics, Tyler Cowen: Great Stagnation, union organizing, upwardly mobile, very high income, Vilfredo Pareto, War on Poverty, We are the 99%, women in the workforce, Works Progress Administration, Yom Kippur War
That meeting was held on a Sunday evening in November. The next day three members of Walmart’s “labor relations team” arrived from the company’s headquarters in Bentonville, Arkansas, and called a store-wide meeting (even though Noble was trying only to organize the tire and lube department). Company videos and PowerPoint presentations were shown. As Noble later recalled, one message was that “wages could be cut drastically” in collective bargaining. “People were giving me dirty looks,” Sylvia remembered. “I’m the only [union supporter] there, and they’re all staring at me like I’m the demon person from hell.” The labor relations team continued to hold similar meetings until the union vote took place in February. Meanwhile Noble, Sylvia, and the other pro-union employees weren’t permitted to discuss the union at all while they were on company property.
Business leaders were sitting down with labor leaders to discuss ways to manage not just individual companies but the entire economy. They didn’t do it because they wanted to. They did it because they had to, a circumstance wholly unimaginable today. The following year, Eric Johnston, president of the U.S. Chamber of Commerce, made a statement whose spirit of conciliation would likely get any current Chamber president fired: “Labor unions are woven into our economic pattern of American life, and collective bargaining is a part of the democratic process. I say recognize this fact not only with our lips but with our hearts.” No smelling salts were needed to revive any who heard it.6 After a century of struggle, unions had won acceptance as an inevitable component to the modern industrial economy. America’s labor movement stood at the summit of its power. Walter Reuther was a living embodiment of labor’s ascendancy.
Pressure from below had been building for decades, and the Great Depression stirred additional labor unrest. Then, in 1933, the National Industrial Recovery Act guaranteed the right of employees to join unions. Even though there was little the government could do to protect that right, the law’s passage stirred the rank and file to action. In 1935 the Wagner Act, often described as labor’s Magna Carta, established unions’ right to engage in collective bargaining and created the National Labor Relations Board (NLRB) to protect that right. Reuther’s beating two years later received prominent attention at an NLRB hearing on Henry Ford’s union-busting tactics, and the NLRB ordered Ford to desist. After Ford resisted the NLRB ruling in the courts, a UAW-organized strike at the Ford plant in 1941 persuaded the company to surrender. In an NLRB-supervised election Ford workers voted in the UAW, and the union’s organization of the big three automakers was complete.
Reskilling America: Learning to Labor in the Twenty-First Century by Katherine S. Newman, Hella Winston
active measures, blue-collar work, collective bargaining, Computer Numeric Control, deindustrialization, desegregation, factory automation, interchangeable parts, invisible hand, job-hopping, knowledge economy, low skilled workers, performance metric, reshoring, Ronald Reagan, Silicon Valley, two tier labour market, union organizing, upwardly mobile, War on Poverty, Wolfgang Streeck, working poor
Companies gain from the investment they make in training low-skilled employees who they don’t want to lose; employers gain from the regulation of wages, which means very productive workers are paid less than they would be in a more flexible employment system.2 As we have seen, unions are also important, as they can shape how firms train and then subsequently employ workers. Also with highly centralized collective bargaining, unions and business groups are better positioned to lobby the state to enact policies that promote vocational training.3 Beginning at age sixteen, German students in the vocational and educational training (VET) sector attend school one or two days a week and spend the rest of the week in the workplace. A Vocational Training Act outlines detailed rules for establishing occupational titles, training content, and duration, as well as examination or assessment standards and certification requirements.
This power-sharing arrangement prevents VW from escaping the strictures of codetermination by setting up shop in other countries and it ensures the representation of workers not only from VW but from the hundreds of suppliers whose employees are also affected by any decision the company makes to start or stop production, close or open a plant, cut or extend a shift.15 Codetermination strikes a balance between economic efficiency and employment security, production strength and the ecological responsibilities that the works councils regard as integral to decisions over plant locations. Works councils in every plant oversee the decision making on all aspects of plant operations. All employees below the level of senior management are represented in the councils, and they are paralleled by the trade unions, who appoint shop stewards whose main responsibilities involve provisions of the collective bargaining contracts. A Europe-wide works council deals with agreements that go beyond workplace policy. In 2002, the European Works Council developed a social rights charter and a platform that guarantees freedom of assembly. These are rights taken for granted in Europe, but in China, where VW was interested in setting up a number of new production facilities, this was hardly the case. In 2006, the firm’s international works council developed a policy of sustainability designed to govern supplier relations.
Historic antagonism between the labor movement and southern politics has sidelined the unions, though that story may not have come to a conclusion yet. Some German unions are strong enough to insist that companies like Volkswagen adopt governing structures in the United States that look like the ones they are used to at home. This requirement was put to the test in 2014, when the VW plant in Chattanooga, Tennessee, narrowly failed to adopt the United Auto Workers as its representatives for collective bargaining. The plant, which opened in 2008, first became the subject of controversy in 2013 after the UAW attempted to unionize the labor force, drawing opposition from right-wing politicians and others who feared such a move would deter other businesses from setting up shop in the state. In that right-to-work state, many workers were just as resistant to the entreaties of the UAW.24 Ultimately the union vote (narrowly) failed, but in November 2014 VW—apparently under pressure from its labor union in Germany—announced a new policy that would allow employees to be represented by several labor groups, among them the UAW.25 The new rules require that at least 15 percent of the workforce must join up for their union to have some level of representation.
Power Systems: Conversations on Global Democratic Uprisings and the New Challenges to U.S. Empire by Noam Chomsky, David Barsamian
affirmative action, Affordable Care Act / Obamacare, Albert Einstein, Chelsea Manning, collective bargaining, colonial rule, corporate personhood, David Brooks, discovery of DNA, double helix, drone strike, failed state, Howard Zinn, hydraulic fracturing, income inequality, inflation targeting, Intergovernmental Panel on Climate Change (IPCC), Julian Assange, land reform, Martin Wolf, Mohammed Bouazizi, Naomi Klein, new economy, obamacare, Occupy movement, oil shale / tar sands, pattern recognition, Powell Memorandum, quantitative easing, Ralph Nader, Ralph Waldo Emerson, single-payer health, sovereign wealth fund, The Wealth of Nations by Adam Smith, theory of mind, Tobin tax, union organizing, Upton Sinclair, uranium enrichment, WikiLeaks
Over time, this campaign had some success, but a majority of the workforce would still prefer to be unionized if they could be.7 Barriers have been set up by state policy which make it very hard to join a union.8 The consequence of all this is that private-sector unionization is down to about 7 percent.9 Public-sector unions still haven’t been destroyed, but that’s why there is a bitter attack against them right now. The attack in Wisconsin on the right of workers to organize and collectively bargain is a clear example.10 The issues in Wisconsin have nothing to do with the state budget deficit. That’s a fraud that’s simply used as a pretext. The issue is the right of collective bargaining, one of the basic principles of union organization. The business world wants to destroy that. Rhetoric aside, has the Democratic Party really been a friend of organized labor and the working class? Compared with the Republicans, yes, but that’s not saying much. The studies of Larry Bartels and other political scientists show that working people and the poor tend to do somewhat better under Democratic than Republican administrations.11 But that just means that the Republicans are deeper in the pockets of the corporate system than the Democrats are.
., 7, 58, 70, 90, 110, 153 Iraq War, 16, 56, 114–16 response to 9/11, 15–26 war crimes, 114–16 business, 25, 36, 38, 39, 40, 76–77, 81, 103, 123, 169 Butler, Smedley, 13, 14 California, 167, 172 campaign finance, 173–74 Canada, 24, 73, 161–64 capitalism, 77–78, 147, 170–73 Caribbean, 7, 161 Carlos the Jackal, (Ilich Ramírez Sánchez), 21 Carothers, Thomas, 62, 64 Carter, Jimmy, 151 Ceauescu, Nicolae, 17 CELAC, 161 Central America, 21, 36 natural resources, 17–18 Chace, James, 61 Chavis, Benjamin, 65 children, 38, 82, 83 language acquisition in, 126–36 Chile, 61 China, 7–10, 50, 57, 77, 106, 107, 164, 169 ecological problems, 12 economic growth, 7–13 -India relations, 20–22 industry, 11–13 labor, 9–12 “loss of,” 57, 60 Maoist, 12 Chun Doo-hwan, 17 Citizens United v. Federal Election Commission, 173–74 civil liberties, 69–73, 175 military detention and, 70–73 civil rights movement, 24, 30–31, 45, 65–66, 72, 150, 167, 176 climate change, 75, 121–25, 159 Clinton, Bill, 58, 83, 90, 170 Clinton, Hillary, 162 COINTELPRO, 73, 74, 120 collective bargaining, 40–41 Colombia, 7, 72, 145, 160, 164 colonialism, 3–5, 9, 46, 51 Communist Party, 23–24, 27, 29, 75, 118 Congress, U.S., 27, 32, 41–42, 85 Congress of Industrial Organizations, 23, 68 consensus, 74–75 Constitution, U.S., 72, 85, 174–75 consumerism, 36, 37, 80 corporations, 10, 24, 26, 27, 31–32, 38, 41, 76–77, 81, 103, 119, 152, 174 piracy issue, 107–8 Cuba, 4, 160, 161 culture, and language, 138–40 deaf-blind, 134–35 debt, 8, 87, 152, 168 student, 152 decolonization, 5, 46 democracy, 47, 54, 62, 79–81, 84–85, 109, 112, 143–44, 150, 151, 158–59, 172 Democratic Party, 32, 41–42 demonstrations, 29–33, 35, 40–43, 73–77 Arab Spring, 44–55, 60–64, 67, 112–13, 168 civil rights, 24, 30–31, 45, 65–66, 72, 150, 167, 176 Occupy, 47, 65–69, 74–77, 118–21, 146, 168, 177 student, 73–74 Depression, 23, 27, 28 deregulation, 48, 173–74 Dewey, John, 147, 148, 149 Dink, Hrant, 89, 91 dissidents, 144–45 doctrinal system, 8, 10, 36, 38, 158, 159 Dönitz, Karl, 116 Draghi, Mario, 169 drugs, 160–62 Durand Line, 99 Duvalier, Jean-Claude, 17 Economic Policy Institute, 168 economy, 4, 32, 76–78, 97, 121, 168, 171 Arab Spring, 44–55, 60–64, 67 Chinese, 7–10 financial crisis, 23, 48, 86–89, 168–69 global shift of power, 5–13, 58, 76–77 Indian, 7, 10–11, 20–23 stimulus, 33 U.S. decline, 4–10, 56, 59–60 education, 37, 82, 147–56, 165–68 battle over, 147–56 higher, 150–53, 165–68 K-to-12, 153–56 privatization of, 38–39, 156, 167–68 public, 37–39, 147–48, 153–56, 166–68 science, 154–55 Egypt, 35, 51, 53, 61, 67 Arab Spring, 44–49, 54, 60–64, 67, 168 Einstein, Albert, 143 Eisenhower, Dwight, 125 electoral politics, 102–13, 117–19 electronic books, 104 Ellsberg, Daniel, 15, 113 El Salvador, 145 Emerson, Ralph Waldo, 148, 156 Enlightenment, 116, 147, 148 environment, 12, 75, 121–25, 158–59, 163–65, 176 climate change, 75, 121–25, 159 fracking, 164–65 Erdoan, Recep Tayyip, 89, 90, 93 Europe, 5, 6, 9, 47, 51, 58, 161 economic crisis, 47, 86–89, 168–69 European Central Bank (ECB), 86–87, 169 European Union, 87, 89, 92 evolution, 128, 129, 137–38 Facebook, 145, 146 Federal Bureau of Investigation (FBI), 15, 71, 73 Federal Reserve, 86–87 financial crisis, 23, 48, 86–89, 168–69 Financial Times, 66, 76, 78, 123 Finland, 153, 154 Foreign Affairs, 59, 61 fossil fuels, 21, 22, 49–55, 122–24, 164, 165 fracking, 123, 164–65 France, 46, 50, 52, 68, 112–13, 170 Fraser, Doug, 25 Freedom of Information Act, 110 Gadhafi, Mu’ammar, 50, 53 Galileo, 143, 144 Gates, Bill, 11 Gaza, 93 General Motors, 33, 80 genetics, 126–27, 129, 140 Germany, 15, 27, 51, 58, 118, 153 economic policy, 88 Nazism, 28–29, 115–16 Weimar Republic, 25, 27–29 World War II, 115–16 GI bill, 152 Ginsberg, Benjamin, The Fall of the Faculty, 168 globalization, 5, 20–22, 170 financial crisis, 86–89, 168–69 labor, 9–12, 76–77, 169–70 shift of power, 5–13, 58, 76–77 Goldman Sachs, 42 Google, 107 government, 78–85, 150, 158 big, 81, 82 security, 107–13 “Grand Area” planning, 57 Great Britain, 5, 8–9, 16, 17, 21, 35, 50, 52, 61, 79, 107, 139, 172 colonialism, 9, 20 government, 79 slavery, 36 World War II, 115, 116 Greece, 87 Guantánamo, 72–73 Guatemala, 21 gun culture, 162–63 Gwadar, 22 Haiti, 11, 13–14, 17 Hale, Kenneth, 136, 139–41 Hanif, Mohammed, A Case of Exploding Mangoes, 106 Haq, Abdul, 16 Harvard University, Institute of Politics, 158 Havel, Václav, 145 health care, 24, 76, 82, 157 Obamacare, 124 Heilbrunn, Jacob, 111 Hindenburg, Paul von, 27–28 historical amnesia, 97–98 Hitler, Adolf, 28–29, 32, 88 Holder v.
., 85 Human Development Index, 13 “Human Intelligence and the Environment” (Chomsky), 42 Humanitarian Law Project, 70–71 human rights, 109, 113 violations, 89–92, 95–96, 145 Humboldt, Wilhelm von, 149 Hume, David, 79, 81 Hussein, Saddam, 17, 71, 95 imperialism, 1–33 saltwater fallacy, 3–4 terminology, 3 India, 7, 9, 10–11, 17–23, 38, 50, 51, 107, 164 Bhopal explosion, 174 British rule, 20 -China relations, 20–22 economic growth, 7, 10–11, 20–23 -Israel relations, 20, 21 natural resources, 17–20 neoliberalism and, 19–22 TAPI pipeline and, 17–18 -U.S. relations, 20–22 war, 20 indignados, 47 Indonesia, 17 intellectual culture, 79, 81, 104–6, 141 intellectual property rights, 107–8 International Energy Association (IEA), 121–22 International Monetary Fund (IMF), 47 International Organization for a Participatory Society, 171 international relations (IR) theory, 8, 63 Internet, 105–13 security, 107–13 iPhone, 145–46 Iran, 18, 60, 62, 63, 90–91, 93, 95–98, 111, 112, 114 nuclear threat, 112 TAPI pipeline and, 18 Iran-Iraq War, 97 Iraq, 16–17, 21, 60, 61 Kurds, 95–96 nationalism, 55–56 U.S. war in, 16–17, 55–56, 62–63, 114–16 Islam, 60 political, 49, 61 radical, 61, 100 Israel, 20, 21, 96, 112 -India relations, 20, 21 -Lebanon relations, 63 Palestinian conflict, 46 -Turkey relations, 92–94 -U.S. relations, 21 Jacob, François, 129 James, William, 130 Japan, 5, 8, 58, 131, 139 Jefferson, Thomas, 3, 172 job creation, 76, 87 Kagan, Elena, 70 Karachi, 22 Keller, Bill, 144 Keller, Helen, 134, 135 Kennan, George, 57 Kennedy, John F., 2–3 Vietnam policy, 2–3, 97 Khadr, Omar, 72–73 King, Martin Luther, 30–31, 66, 105 Klein, Naomi, 123, 124 Kurds, 21, 89–92, 95–96 labor, 38, 81, 87, 169 anti-labor movements, 40 Arab Spring, 44–55, 60–64, 67 Chinese, 9–10, 11–12 collective bargaining, 40–41 demonstrations and strikes, 29, 33, 35, 40–43, 68, 120, 146 Depression-era, 23, 40, 67–68 global, 9–12, 76–77, 169–70 organized, 23–25, 39–41, 67–68, 147, 171 rustbelt, 11–12 solidarity, 39–41 unemployment, 22–23, 38, 66, 76 unions, 24–26, 33, 39–41, 68, 79, 147, 171 language, 126–42 biological acquisition of, 129–36 culture and, 138–40 sensory deprivation and, 134–35 similarity of, 140–41 study of, 137–38, 142 universal grammar, 126–59 Latin America, 4–7, 22, 61, 160–62, 164 drugs, 160–62 integration of, 6–7, 47, 161 U.S. military bases in, 6–7 Laxness, Halldór, 106 Lebanon, 63 Lee, Ching Kwan, 11 Left, 23, 25, 32–33, 59, 117, 147, 149, 150, 151 student, 73–74 Left Forum, 25, 27, 33 libertarianism, 157, 158, 163 Libya, 50–54, 91 no-fly zone, 50–52 Lippmann, Walter, 81 Madison, James, 84, 85 Magna Carta, 59, 72, 116 Mandela, Nelson, 71 Manning, Bradley, 113, 114 Marcos, Ferdinand, 17 market system, 80–81 Marx, Karl, 173, 175 Massachusetts Institute of Technology, 13, 37, 105, 122, 134, 136, 149 mathematics, 137, 138 McCain, John, 103 McCarthyism, 24 McKiernan, Kevin, 95 media, 32, 66, 150, 151 mental slavery, 34–35, 101–25 Mexico, 11, 152–53, 162, 175 Middle East, 17, 44–64, 89–100, 111 Arab Spring, 44–55, 60–64, 67, 112–13, 168 oil, 21, 49–55 Turkish-Israeli relations, 92–94 uprisings, 44–64 military, 5, 98 Arab Spring, 44–55, 60–64 detention, 70–73 police, 119–20 U.S. bases in Latin America, 6–7 Mobutu Sese Seko, 17 Mondragon, 171 Montgomery, David, The Fall of the House of Labor, 23 Morgenthau, Hans, 63–64 The Purpose of American Politics, 64 Morocco, 46 Mubarak, Hosni, 45, 47, 62 Nader, Ralph, 150 NAFTA, 163, 175 Nasser, Gamal Abdel, 61 National Defense Authorization Act, 70 Native Americans, 22 natural gas, 17–18, 164–65 natural resources, 17–22, 164–65 Navy, U.S., 6–7, 14, 52, 116 Nazism, 28–29, 115–16 New Deal, 23, 82 New York, 67, 100, 166 New York Times, 60, 81, 89–91, 124, 144–45, 160 Ngo Dinh Diem, 2, 3 Ngo Dinh Nhu, 2, 3 Nicaragua, 7 9/11 attacks, 14, 15–16, 139 Nixon, Richard, 125, 150 No Child Left Behind, 153 Non-Proliferation Treaty, 18 North Africa, 46–48, 57, 60 North Atlantic Treaty Organization (NATO), 50, 51, 91, 92 Norway, 115 nuclear weapons, 97, 98, 100, 110, 112, 176 Nuremberg Trials, 115–16 Nystrom, Paul, 36 Obama, Barack, 7, 33, 63, 90–91, 93, 110, 111, 114, 153, 162, 164 Afghanistan War and, 14–15 civil liberties and, 70–73 Libya and, 51–52 organized labor and, 41–42 2008 election, 102–3 Obamacare, 124 Occupy movements, 47, 65–69, 74–77, 118–21, 146, 168, 177 oil, 21, 22, 49–55, 124 Orwell, George, 19, 97 Pakistan, 16, 17, 22, 61, 98–100, 110 drone attacks on, 18–19, 98–99 nuclear industry, 98–100, 110 TAPI pipeline and, 18 Palestine, 46, 72 -Israel conflict, 46 Palmer raids, 68 Pamuk, Orhan, 91 Panama, 7 Panetta, Leon, 114 Pashtuns, 99 Patterson, Anne W., 99, 110 Paul, Rand, 157, 162, 163 Paul, Ron, 75, 124–25, 157, 163 pensions, 12, 22, 24, 26 Peres, Shimon, 93 Peshawar, 16 pharmaceutical companies, 107–8 Philippines, 4, 17 Pinochet, Augusto, 61 piracy, 107–8 political Islam, 49, 61 Political Science Quarterly, 82 police repression, 119–20 politics, 32, 41, 57, 59, 121, 142–45, 171 electoral, 102–3, 117–19 labor demonstrations and, 41–43 poverty, 6, 66, 82, 84 Powell, Colin, 115 Powell, Lewis, 150–51 Powell memorandum, 150–51 power systems, 34–35, 69 aristocrats and democrats, 160–78 chains of submission and subservience, 34–43 global shift, 5–13, 58, 76–77 language and education, 126–59 mental slavery, 101–25 new American imperialism, 1–33 uprisings, 44–64 privatization, 11, 38, 39, 40, 156–57, 167 Progressive Labor (PL), 73 propaganda system, 35–40, 66, 80, 82, 102, 119, 122–24 property rights, 84, 85 public, power of the, 78–81 public education, 37–39, 147–48, 153–56, 166–68 public relations, 35, 79–81, 102–3 Qasim, Abd al-Karim, 61 Race to the Top, 153 racism, 3, 31, 92 Ravitch, Diane, 154 Reagan, Ronald, 62, 71, 82, 95, 99 recession, 23, 48, 86–89 Red Scare, 23, 68, 120 Reich, Robert, 170, 172 Reilly, John, 122 Republican Party, 41, 57, 75, 76, 124, 125 Revolutionary Armed Forces of Colombia (FARC), 72 Ribbentrop, Joachim von, 115 Right, 23, 32, 150–51 Riyadh, 52 Romney, Mitt, 57–58, 75 Roosevelt, Franklin D., 14, 23, 54 Roy, Arundhati, 22, 29, 31 Russia, 17–18, 20, 50, 61, 98, 102, 145 rustbelt, 11–12 Saharawi movement, 46 saltwater fallacy, 3–4 Saudi Arabia, 21, 49, 52, 61, 99, 111, 144 science, 142–43, 144 education, 154–55 modern, 143 sectarianism, 73–74 Seib, Gerald, 54 self-destruction, 42–43 Senate, U.S., 63, 85 sensory deprivation, 134–35 Shiites, 52–53 Singh, Manmohan, 19 Sino-Indian War, 20 slavery, 3, 34, 36, 51 end of, 34, 35, 36 mental, 34–35, 101–25 Slim, Carlos, 11 Smith, Adam, 8–9 social Darwinism, 157 social media, 105, 107, 145–47 Social Security, 39, 156–57 solidarity, 38–41, 146–47, 159 South Africa, 21, 50–51 apartheid, 71 South America, 6, 7, 57, 60, 161 Southeast Asia, 4, 60 South Korea, 9, 17 Spain, 4, 6, 33, 87 sports, college, 154–55 Stack, Joseph, 25–26, 29 Stalin, Joseph, 61 Stohl, Bev, 105 Stop Online Piracy Act, 107 strategic hamlets, 2 student activism, 73–74 submission and subservience, chains of, 34–43 Summit of the Americas (2012), 160–61 sunbelt, 11, 12 Sunnis, 52–53 Supreme Court, U.S., 70, 150 Buckley v.
What Went Wrong: How the 1% Hijacked the American Middle Class . . . And What Other Countries Got Right by George R. Tyler
8-hour work day, active measures, activist fund / activist shareholder / activist investor, affirmative action, Affordable Care Act / Obamacare, bank run, banking crisis, Basel III, Black Swan, blood diamonds, blue-collar work, Bolshevik threat, bonus culture, British Empire, business process, capital controls, Carmen Reinhart, carried interest, cognitive dissonance, collateralized debt obligation, collective bargaining, commoditize, corporate governance, corporate personhood, corporate raider, corporate social responsibility, creative destruction, credit crunch, crony capitalism, crowdsourcing, currency manipulation / currency intervention, David Brooks, David Graeber, David Ricardo: comparative advantage, declining real wages, deindustrialization, Diane Coyle, Double Irish / Dutch Sandwich, eurozone crisis, financial deregulation, financial innovation, fixed income, Francis Fukuyama: the end of history, full employment, George Akerlof, George Gilder, Gini coefficient, Gordon Gekko, hiring and firing, income inequality, invisible hand, job satisfaction, John Markoff, joint-stock company, Joseph Schumpeter, Kenneth Rogoff, labor-force participation, labour market flexibility, laissez-faire capitalism, lake wobegon effect, light touch regulation, Long Term Capital Management, manufacturing employment, market clearing, market fundamentalism, Martin Wolf, minimum wage unemployment, mittelstand, moral hazard, Myron Scholes, Naomi Klein, Northern Rock, obamacare, offshore financial centre, Paul Samuelson, pension reform, performance metric, pirate software, Plutocrats, plutocrats, Ponzi scheme, precariat, price stability, profit maximization, profit motive, purchasing power parity, race to the bottom, Ralph Nader, rent-seeking, reshoring, Richard Thaler, rising living standards, road to serfdom, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, Sand Hill Road, shareholder value, Silicon Valley, South Sea Bubble, sovereign wealth fund, Steve Ballmer, Steve Jobs, The Chicago School, The Spirit Level, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, transcontinental railway, transfer pricing, trickle-down economics, tulip mania, Tyler Cowen: Great Stagnation, union organizing, Upton Sinclair, upwardly mobile, women in the workforce, working poor, zero-sum game
Stagnant and declining wages are the new reality that makes Tim’s experience a common one, including surprisingly low wages, even in union shops or for higher technology jobs requiring college degrees and intensive training. Unionization has been integral to higher wages, and still is; in 2010, for example, unionized manufacturing workers in Indiana earned 16 percent more than nonunion employees. Union membership began eroding in 1965. But the benefits to the middle class of collective bargaining began to fall most sharply after 1980 as a new breed of executives began utilizing the Taft-Hartley Act to weaken unions and wages while stepping up the offshoring of high-value manufacturing jobs.6 Desperate to attract new jobs amid recession and rising imports, the UAW and other industrial unions reluctantly began to accept two-tier wage structures during the 1980s. That trend ended temporarily as these labor contracts expired in the robust 1990s amid tight labor markets and rising wages.
This requires … top-notch management skills that would innovate and capture opportunities.”36 The urgency of upskilling drives an inclusive education system where “every Australian is offered the opportunity to succeed and reach their full potential,” explained Chris Evans, Australian Minister for Tertiary Education, Skills, Jobs and Workplace Relations in November 2010. And it drives a business culture in which expectations are a “fair day’s work for a fair day’s pay, the right of employees to collectively bargain with their employer and the right to safe and fair working conditions.”37 For nearly a century, Australian voters have repeatedly made clear they want those expectations to be met by the business community and to be monitored by an alert trade union network and public sector. They demand that conservative and liberal governments alike implement those expectations, with a nationwide comprehensive bargaining and wage system overseen by the federal government as the day-to-day guarantor of Australian family prosperity.
Why Wages Stagnate The elements of Reaganomics are major factors in wage stagnation, including its Randian corporate culture, offshoring, short-termism, and quarterly shareholder or managerial capitalism. Another factor has been the failure of Washington officials to mimic the tactics of the family capitalism countries in ameliorating the impact of globalization. Economists cite three other significant factors: employer collusion to limit wage increases, the sagging minimum wage, and the weakening of employee collective bargaining power.42 Employer Collusion to Minimize Wages Even blue-chip enterprises cross the line in colluding to suppress wages. For example, the Obama administration’s Department of Justice settled two antitrust lawsuits in 2010, in which several leading high-tech firms agreed to pay penalties for conspiring against their own highly skilled artisans. Lucasfilm and rival Pixar were found to have illegally colluded to avoid wage-bidding wars for prized digital animators.
The Coke Machine by Michael Blanding
carbon footprint, clean water, collective bargaining, corporate social responsibility, Exxon Valdez, Gordon Gekko, Internet Archive, laissez-faire capitalism, market design, Naomi Klein, New Journalism, Ponzi scheme, profit motive, Ralph Nader, rolodex, Ronald Reagan, shareholder value, The Wealth of Nations by Adam Smith, Thorstein Veblen, union organizing, Upton Sinclair
Two of its leaders had already been killed by the time Isidro Gil was named secretary-general and put in charge of renegotiating the workers’ contract with the bottling company. On November 18, 1996, the union submitted its final proposal for a new contract, demanding increased pay and benefits, along with protection from firing and new security measures to keep union leadership safe from violence. The Coke plant’s local managers and its Florida-based owners had until December 5 to respond to the collective bargaining proposal. As he stood at the gate that morning, Gil was mentally preparing for the meeting that day, not knowing it would never take place. As he opened the gate to let out the delivery truck, he stepped back behind the gatehouse. The truck rumbled past, its bright red Coke logo shining in the morning light. Before Gil could push the metal frame closed, the visitor walked right through the gate behind it.
In 2002, González’s daughter, then twelve, answered the phone to a voice telling her that her “son-of-a-bitch terrorist father” had to give them 20 million pesos ($10,000) or they would kill his daughter. His wife left soon afterward. “She would say, ‘You ruined my life, my family, my daughters.’” González halts again, choking back tears. “Everyone starts to distrust you, even the neighbors.” As the tears flow, so do the words. “They want to destroy the union and because of that the collective bargaining gets worse, and the conditions for the workers get worse. I’m not a guerrilla member, I’m not a paramilitary member. I just have convictions that the country needs to change.” He suddenly explodes in a sardonic laugh. “You get so fucking pissed off by your helplessness that you want to put a bomb in the place and blow it up. You get in such an extreme psychological state you want to be a suicide bomber and just finish it off.”
By 2009, according to SINALTRAINAL researcher Carlos Olaya, that number was 350. Much of the decline has been due to outsourcing of the workforce to contract or temporary workers, he says; from 10,000 full-time workers in 1993, the company now employs only 2,000. Most of the other workers are so-called cooperative workers who are responsible for their own health insurance and other benefits, and of course excluded from collective bargaining. Even the direct workers have seen wages decline from a high of $800 a month to near $500. For nonunionized workers, wages are even worse—only $150 a month. In addition, workers have lost overtime and holiday bonuses. All of the consolidation and downsizing, however, has been tremendously successful for the company; Coca-Cola now controls 60 percent of the nonalcoholic beverages market in the country; with the acquisition of Panamco by Coca-Cola FEMSA in 2003, the country has been one of the new anchor bottlers’ primary growth markets.
call centre, collective bargaining, conceptual framework, credit crunch, deindustrialization, deskilling, Downton Abbey, financial independence, full employment, income inequality, manufacturing employment, Neil Kinnock, New Urbanism, Red Clydeside, rent control, Right to Buy, rising living standards, sexual politics, strikebreaker, The Spirit Level, unemployed young men, union organizing, upwardly mobile, urban renewal, Winter of Discontent, women in the workforce, young professional
Yet as Alice Foley later wrote, the militancy of these years was ‘a first shot in the human struggle to retain traditional methods of production against those fierce on-coming thrusts of technocracy and automation which were to harass and bedevil the cotton industry for the next half-century.’15 The actions of people like her did help to establish a modicum of negotiation with their employers and ensured that industrial workers were not forced into the deferential role demanded of domestic servants, who lacked any collective bargaining rights. On the eve of the First World War, however, employers refused to grant their workers many rights at all. Unemployment was high, and their government favoured the harsh repression of industrial militancy; the mill owners and manufacturers of Britain could defy the strikers with the support of ministers of state. Less than a month after the Dundee jute strike of 1912 had failed, the socialist trade union activist Tom Mann was charged in Manchester with inciting mutiny.
It marked one of two major turning points in the twentieth century, heralding a period of full employment and comprehensive welfare provision that was only brought to an end by the second turning point: the election of Margaret Thatcher to government in 1979. During the war the government struck a contract with the people: work hard in return for a guaranteed job, a living wage and care in times of need. This bargain evolved because the demand for munitions and men created full employment in Britain for the first time, and the workers themselves used this to strengthen their collective bargaining power. But to call the Second World War ‘the people’s war’ does not mean that Britain became classless. The government sought to win the war by demanding ever greater sacrifice and effort from the workers in the factories and from ordinary troops. Only when the crisis absolutely demanded it did they oblige middle- and upper-class people to share in some of these sacrifices. Most politicians had little interest in making Britain a more equal society.
But Bevin argued that conscription into the factories, the illegality of strike action, long hours and no holidays with pay would only increase productivity if trade unions were granted a central role in Britain’s industrial life, and workers’ welfare was prioritized. He began in May 1940 by cutting working hours in Royal Ordnance Factories, increasing the number of workplace canteens, building workers’ hostels and improving the medical services available to factory workers. Bevin professed himself determined to ensure that ‘no industry … lack trade agreement’ by the end of the war; by which he meant that every industry must institute collective bargaining between employers and trade unions, thereby granting the latter a new and permanent form of power.11 Workers needed to feel they had a vested interest in what they were doing, otherwise they wouldn’t be motivated to work at the rate the war effort required of them. Bevin won his case because, as the historian Keith Middlemas points out, ‘labour rather than machinery or capital had become the scarcest and most prized industrial commodity.’12 In other words, the war effort depended on workers – lots of them, working as hard as they possibly could.
The Making of Global Capitalism by Leo Panitch, Sam Gindin
accounting loophole / creative accounting, active measures, airline deregulation, anti-communist, Asian financial crisis, asset-backed security, bank run, banking crisis, barriers to entry, Basel III, Big bang: deregulation of the City of London, bilateral investment treaty, Branko Milanovic, Bretton Woods, BRICs, British Empire, call centre, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, central bank independence, collective bargaining, continuous integration, corporate governance, creative destruction, Credit Default Swap, crony capitalism, currency manipulation / currency intervention, currency peg, dark matter, Deng Xiaoping, disintermediation, ending welfare as we know it, eurozone crisis, facts on the ground, financial deregulation, financial innovation, Financial Instability Hypothesis, financial intermediation, floating exchange rates, full employment, Gini coefficient, global value chain, guest worker program, Hyman Minsky, imperial preference, income inequality, inflation targeting, interchangeable parts, interest rate swap, Kenneth Rogoff, land reform, late capitalism, liberal capitalism, liquidity trap, London Interbank Offered Rate, Long Term Capital Management, manufacturing employment, market bubble, market fundamentalism, Martin Wolf, means of production, money market fund, money: store of value / unit of account / medium of exchange, Monroe Doctrine, moral hazard, mortgage debt, mortgage tax deduction, Myron Scholes, new economy, non-tariff barriers, Northern Rock, oil shock, precariat, price stability, quantitative easing, Ralph Nader, RAND corporation, regulatory arbitrage, reserve currency, risk tolerance, Ronald Reagan, seigniorage, shareholder value, short selling, Silicon Valley, sovereign wealth fund, special drawing rights, special economic zone, structural adjustment programs, The Chicago School, The Great Moderation, the payments system, The Wealth of Nations by Adam Smith, too big to fail, trade liberalization, transcontinental railway, trickle-down economics, union organizing, very high income, Washington Consensus, Works Progress Administration, zero-coupon bond, zero-sum game
When General Motors, the largest manufacturing company in the world, and the UAW, the most prominent union in the country, institutionalized the “Fordist” link between mass production and mass consumption through this path-breaking collective agreement, they went far beyond anything that Henry Ford ever imagined. By tying company-level wage increases to estimates of national productivity increases, and building in inflation protection through a cost-of-living index, they implicitly accepted that collective bargaining would not disturb the existing distribution of income. The Treaty also centralized power within the union. As the focus of collective bargaining shifted to the negotiation of company-wide wage and benefit increases, and as the union accepted management’s control over production at the shop-floor level, local rank-and-file power was undermined. Since the New Deal labor law allowed for the right to strike during the term of a collective agreement, the Treaty’s requirement that authority for this in any plant had to be secured from the national union leadership further institutionalized a corporatist relationship between top company and union leaders, and the loss of local autonomy.
This approach proved quite successful in the case of agriculture.49 But the limited capacity of the state in relation to industry was immediately revealed when the National Industry Recovery Act (NIRA) reverted to the corporatist model introduced in World War I. A National Recovery Administration (NRA) was established to oversee industrial self-regulation through a system of codes drawn up by the trade association in each sector. In a concession to labor, each code was required to establish minimum labor standards and collective bargaining rights, but its implementation was left to the discretion of the trade association itself.50 This failed as a solution to the crisis, not least because by “controlling most of the information about industrial operations on which the NRA codes and their enforcement would have to be based,” private firms constructed loopholes so as to escape the labor standards and cut back production while keeping prices high; while the “NRA apparatus, itself thoroughly permeated by conflicting business interests, was unable to resolve disputes in an authoritative fashion.”51 The experience with the NIRA “foreshadowed the trend for the executive branch of the state apparatus to organize and reorganize departments and decision-making centers that would eventually circumvent conflicting interests.”52 But for the time being, especially without increased wages or public expenditures on the scale needed to generate effective demand and restore profits (which fell by three-quarters in 1934), the promised economic recovery did not materialize.
As a Wall Street publication, the Annalist, put it at the time: “The large aggregates of financial capital stand to benefit in the long run from the new regime—the elimination of competitive methods, [the] close welding together of the private banking with the governmental financial apparatus, the increase of control and co-ordination—all are elements of strength of the future of financial capitalism.”57 From New Deal to Grand Truce with Capital It was, of course, not so much the administration’s financial reforms as its labor and social legislation that came to symbolize the “Second New Deal.” Although long advanced by liberal reformers, the 1935 National Labor Relations Act was only passed in response to what Senator Wagner himself, in introducing the Bill associated with his name, called “the rising tide of industrial discontent.” The Wagner Act legalized unionization campaigns, collective bargaining and the right to strike, and established quasi-juridical procedures for securing recognition and settling disputes. The Social Security Act of the same year founded the American welfare state with its national provisions for unemployment and retirement benefits. To be sure, given the state’s responsibilities for mediating class conflict and its dependence on capital accumulation, the Wagner Act also constrained labor militancy in various ways (not least by setting strict conditions for when the right to strike could be legally exercised), while the Social Security Act (in any case funded by regressive taxation) reinforced the discipline of the labor market with its limited benefits and the many conditions it established for eligibility.
The Cost of Inequality: Why Economic Equality Is Essential for Recovery by Stewart Lansley
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 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, 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
Independent studies have shown that greater controls would have only a minimal impact on the economy, but would greatly reduce the probability of crises.418 Secondly, the UK and the US currently have the most de-regulated labour markets amongst the world’s developed nations, offering only minimal levels of workplace protection.419 The evidence is clear, that countries with a high coverage of collective bargaining tend to have lower earnings dispersion. There is nothing unusual about labour being given a stronger voice in the workplace. Compared with the rest of Europe, the UK has one of the lowest proportions of workers covered by collective bargaining arrangements.420 In Germany and several other continental countries the unions are more integrated into workplace decision making in a way which brings a much more co-operative approach to the running of business and the economy. As part of the new contract with labour, Britain should move more closely to the continental European practice, especially the ‘flexicurity’ model followed mainly in Scandinavia.
‘There can be no robust recovery as long as corporations are intent on keeping idle workers sidelined and squeezing the pay of those on the job’ added the New York Times.415 Since the downturn there have been concerted efforts across the United States, mostly by big business, to further weaken the bargaining power of labour. In Wisconsin, the state’s Republican governor, Scott Walker, even tried in February 2011 to introduce a bill designed to remove collective bargaining and other union rights. In an echo of Ronald Reagan’s war on air traffic controllers in the 1980s, this was an attempt to dismantle what was left of union power, one which led to sustained protests across the country. A similar divide has been emerging in the UK. After falling in every year from 2005-2010, real take-home pay is now predicted to continue to fall for the next year or two at least.
As part of the new contract with labour, Britain should move more closely to the continental European practice, especially the ‘flexicurity’ model followed mainly in Scandinavia. These nations have both highly interventionist policies—which combine worker security with a flexible response to technological advance—and a strong record on employment generation, labour force participation and growth. They are characterised by strong collective bargaining and workforce protection along with generous welfare benefits buttressed by stringent job search requirements and time limits on the duration of benefits. In contrast to the Anglo-Saxon experience of high earnings inequality and high levels of in-work poverty, the flexicurity countries have combined high employment with much lower levels of wage inequality. Moving to such a model would enable a gradual rise in minimum wage levels in relative terms, the extension of the living wage—which pays roughly 30 per cent more than the minimum—and a fairer distribution of workplace, pre-tax incomes.
1960s counterculture, affirmative action, airline deregulation, anti-communist, Ayatollah Khomeini, barriers to entry, Berlin Wall, blue-collar work, Bretton Woods, capital controls, centre right, collective bargaining, Credit Default Swap, crony capitalism, David Ricardo: comparative advantage, deindustrialization, desegregation, energy security, Fall of the Berlin Wall, falling living standards, feminist movement, financial deregulation, floating exchange rates, full employment, Gunnar Myrdal, income inequality, income per capita, intermodal, invisible hand, knowledge worker, laissez-faire capitalism, liberal capitalism, Long Term Capital Management, manufacturing employment, market bubble, Martin Wolf, new economy, oil shale / tar sands, oil shock, open economy, Paul Samuelson, payday loans, post-industrial society, post-oil, price mechanism, price stability, Ralph Nader, RAND corporation, reserve currency, Robert Gordon, Ronald Reagan, Simon Kuznets, strikebreaker, trade liberalization, union organizing, urban planning, urban renewal, War on Poverty, Washington Consensus, working poor, Yom Kippur War
Only William Miller, who had replaced Blumenthal as secretary of the treasury, supported the agreement and helped untie the final knots.62 Unlike most of Carter’s advisers, Miller came from industry, not the academy, and so understood the give and take of collective bargaining. In the end, Carter’s political advisers convinced him that the reelection in 1980 rode on the agreement with labor.63 The AFL-CIO would fill five of the fifteen seats on the new Pay Advisory Committee. Another five seats would go to business, and the remaining five would represent the general public. One of the public representatives was John Dunlop, the ultimate collective bargainer.64 The committee would advise the CWPS on pay standards. Whether the council was required to adopt the suggestions was deliberately left fuzzy. Kahn claimed that “their power is only to recommend.”
A Jewish refugee from Nazi Germany, Blumenthal was the kind of Democratic businessman who believed that you could do well by doing good. Balancing Blumenthal was Secretary of Labor F. Ray Marshall, another PhD in economics. AFL-CIO chief George Meany had urged Carter to appoint John Dunlop, the Harvard labor economist who had been President Ford’s secretary of labor. Dunlop had resigned after Ford vetoed labor reform legislation that he had pledged to sign. Believing that robust collective bargaining was the essence of industrial democracy, Dunlop was the consummate negotiator. But representatives of blacks and women did not believe he was committed enough to airmative action, which would have made him a problematic pick for Carter.3 Marshall, whose southern origins added to his appeal, seemed better on airmative action because he had written about racial discrimination and manpower policy.
Blacks recalled that these unions were often resistant to integrating their ranks. The second bill aimed to empower the powerless, a more politically appealing group, particularly southern workers. The South was the bastion of anti-unionism. The journalist Harry Golden declared that the people of Charlotte, North Carolina, would “elect Cassius Clay mayor if he would promise no unions and no collective bargaining.”21 Aggressive anti-union tactics and corporate violations of the labor law were a major reason why unions that had won 60 percent of representation elections, were winning only 46 percent now. The proposed reform would make it easier for workers to unionize by amending the National Labor Relations Act of 1935 (better known as the Wagner Act, after its architect, Senator Robert Wagner of New York).
back-to-the-land, Bernie Sanders, Black Swan, Bretton Woods, BRICs, British Empire, call centre, centre right, cognitive dissonance, collateralized debt obligation, collective bargaining, creative destruction, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, currency manipulation / currency intervention, David Brooks, David Ricardo: comparative advantage, falling living standards, financial deregulation, financial innovation, full employment, hiring and firing, Howard Zinn, Hyman Minsky, illegal immigration, indoor plumbing, informal economy, invisible hand, John Maynard Keynes: Economic Possibilities for our Grandchildren, lake wobegon effect, Long Term Capital Management, market fundamentalism, Martin Wolf, McMansion, medical malpractice, mortgage debt, Myron Scholes, Naomi Klein, new economy, oil shock, old-boy network, Paul Samuelson, Plutocrats, plutocrats, price mechanism, price stability, private military company, Ralph Nader, reserve currency, rising living standards, Robert Shiller, Robert Shiller, rolodex, Ronald Reagan, school vouchers, Silicon Valley, single-payer health, South China Sea, statistical model, Steve Jobs, Thomas L Friedman, Thorstein Veblen, too big to fail, trade route, Triangle Shirtwaist Factory, union organizing, upwardly mobile, urban renewal, War on Poverty, We are the 99%, working poor, Yogi Berra, Yom Kippur War
Prosperity began to be seen as being generated not just by the exceptionally talented manager, insightful investor, or genius inventor. It is the result of the interaction of all the actors in the economic drama—the majority of who are people of ordinary talent, connections, perseverance, and/or luck. All have their part to play as workers and consumers, and therefore all have a claim on the benefits of growth. Economic security—pooling risks through social insurance, subsidizing higher education, and collective bargaining—is as important as the freedom to buy low and sell high. By providing a cushion for ordinary workers, the innovations of full employment, rising wages, unions, and government-sponsored safety nets also provided a protective cushion for the American capitalist class. After all, the implication of Keynes’s proposition was that what is good for General Motors is good for America—even though the businessmen had to also accept its corollary that what is good for the United Auto Workers is good for General Motors.
The lesson was not lost; when Nixon finally became president, he famously quipped, “We are all Keynesians.”17. Keynesian economics validated the New Deal, which framed the social contract between U.S. capital and labor for approximately fifty years. The leaders of the U.S. labor movement abandoned any dream of creating a socialist future in exchange for business acceptance of social insurance programs and collective bargaining rights. Social Security guaranteed a minimal level of income for the elderly regardless of how they had fared in the market. Workers’ compensation buffered employees from the economic consequences of injury on the job, and unemployment insurance provided a way to ride out cyclical bouts of unemployment. The expansion of trade unions gave workers—not just unionized workers, but all workers—more bargaining power, spreading the benefits of rising labor productivity much more widely than ever before.
Since the consolidation of the New Deal social contract at the end of World War II, employers had generally not attempted to permanently replace striking workers. In effect, if workers can be fired for striking, then they do not have the right to strike; they simply have the right to quit. Reagan’s act signaled that the government would sanction a return to the pre–New Deal hard-line war against organized labor. Employers responded eagerly by stiffening resistance across the collective bargaining table, daring unions to strike, and creating sophisticated defenses against attempts to unionize. A new industry of consultants arose to run antiunion campaigns, teaching management how to threaten, bribe, and harass workers when union organizers showed up. Many of these tactics were illegal, but Reagan appointed antiunion hard-liners to the National Labor Relations Board, where they blocked, delayed, and denied complaints.
Were You Born on the Wrong Continent? by Thomas Geoghegan
Albert Einstein, American Society of Civil Engineers: Report Card, banking crisis, Berlin Wall, Bob Geldof, collective bargaining, corporate governance, cross-subsidies, dark matter, David Brooks, declining real wages, deindustrialization, ending welfare as we know it, facts on the ground, Gini coefficient, haute cuisine, income inequality, John Maynard Keynes: Economic Possibilities for our Grandchildren, knowledge economy, knowledge worker, labour market flexibility, laissez-faire capitalism, low skilled workers, Martin Wolf, McJob, minimum wage unemployment, mittelstand, offshore financial centre, Paul Samuelson, payday loans, pensions crisis, Plutocrats, plutocrats, purchasing power parity, Ralph Waldo Emerson, Robert Gordon, Ronald Reagan: Tear down this wall, Saturday Night Live, Silicon Valley, The Wealth of Nations by Adam Smith, Thorstein Veblen, union organizing, Wolfgang Streeck, women in the workforce
That is, elderly who had lower earnings may get a higher percentage. But that is bad news for upper-middle-class people like Barbara, whose 401(k) just got clobbered and now has to count more on Social Security. Okay, but hasn’t Europe cut back too? Even in the big example, Germany, where the public pension is just over 50 percent of working income, most Germans still have big supplements from collective bargaining. Besides, unlike us, who are deep in debt, Germans have high savings rates for their own accounts, which are not tied in to the stock market. Let’s assume that Alicia Munnell and other economists are correct and we should still get at least 67 percent of working income for retirement. That’s still true in Germany. It’s generally true in Europe. I can’t see how most Americans could even get close to that number if they have $50,000 median in their 401(k) and top out at 40 percent of their working income from Social Security.
Well, I hope they can keep as much as they can. Because getting your wage set outside the firm—over your head—helps you get more power within the firm. Even if you’re on the works council, you don’t have to ask the boss for a raise. Even if you’re on the supervisory board, you don’t ask. As Professor Martin Malin at Chicago-Kent College of Law once told me, “It takes the blood sport out of collective bargaining.” Compared to all of that, it’s not such a big deal who gets to set the closing hours. But why aren’t there huge nationwide strikes? They don’t riot. They don’t burn tires. It’s not like France or Italy. Well, think of the difference between the French and German model. In the French model, the workers are outside in the street and throwing rocks through the window. But in the German model, the workers are “inside,” running the place.
I wrote a long minute and laid out the problem. Some of us said, ‘Stop. Let’s keep it, East Germany, a separate country, at least for five or six years,’ because we couldn’t afford it. It would ruin the whole country.” Specifically, he meant that, with the higher taxes that West Germans would have to pay to bail out East Germans, it would be impossible to keep the welfare state. It would be impossible to keep the system of collective bargaining. M. laid out the trap into which the left had fallen: to bail out the East Germans, the new Germany would have to run a deficit or cut benefits. Well, as they were about to introduce the euro under the Treaty of Maastricht, they were forbidden to run a deficit that might have weakened the new currency throughout Europe as a whole. So they would have to cut back the welfare state. It was the revenge of the Right.
The Precariat: The New Dangerous Class by Guy Standing
8-hour work day, banking crisis, barriers to entry, basic income, Bertrand Russell: In Praise of Idleness, call centre, Cass Sunstein, centre right, collective bargaining, corporate governance, crony capitalism, deindustrialization, deskilling, fear of failure, full employment, hiring and firing, Honoré de Balzac, housing crisis, illegal immigration, immigration reform, income inequality, labour market flexibility, labour mobility, land reform, libertarian paternalism, low skilled workers, lump of labour, marginal employment, Mark Zuckerberg, mass immigration, means of production, mini-job, moral hazard, Naomi Klein, nudge unit, old age dependency ratio, pensions crisis, placebo effect, post-industrial society, precariat, presumed consent, quantitative easing, remote working, rent-seeking, Richard Thaler, rising living standards, Ronald Coase, Ronald Reagan, science of happiness, shareholder value, Silicon Valley, The Market for Lemons, The Nature of the Firm, The Spirit Level, Tobin tax, transaction costs, universal basic income, unpaid internship, winner-take-all economy, working poor, working-age population, young professional
How can people construct a career and build an occupational profile when they can be moved at short notice or when the next rungs on an occupational ladder are suddenly outsourced? A related trend is the spread of individual contracts, as part of the ‘contractualisation’ of life. In industrial society, the norm was a collective contract, set by collective bargaining, perhaps extended to other firms in a sector. But as unions and collective bargaining have shrunk, individualised contracts have grown. For a brief time, fewer workers were covered by any contracts, but the trend to individual contracts is strengthening. They allow firms to provide different treatments, degrees of security and status, so as to channel some workers into the salariat, some into stable jobs, some into a precariat status, increasing divisions and hierarchies.
These reforms undoubtedly contributed to the growth of the Japanese precariat. In Italy, the precariat was enlarged by the Treu law of 1997, which introduced temporary contracts, and by the 2003 Biagi law, which allowed private recruitment agencies. One country after another has acknowledged the pressure of globalisation in extending temporary labour. It has accompanied what goes under the clumsy term of ‘triangulation’. Labour law and collective bargaining were constructed on the basis of direct relationships between employers and employees. But who is responsible when a third party becomes an intermediary? Who is in control, the final employer or the intermediary? The blurring of boundaries of decision-making and responsibility adds to the precariousness. There is extensive case law to delight the minds of lawyers. But temporaries themselves know only that they report to two masters.
A POLITICS OF PARADISE 165 Increasingly, people doing work are not employees, and it is artificial to define employees in complex ways just to enable them to have labour-based entitlements. Work rights should include rules on acceptable practice between workers and within occupational communities as well as between ‘labour’ and ‘capital’. The precariat is at a disadvantage in these respects; a regime of ‘collaborative bargaining’ to give it Voice is required to complement regimes of collective bargaining between representatives of employers and employees, an issue to which we will return. The precariat should also demand construction of an international workrights regime, beginning with an overhaul of the International Labour Organisation, a bastion of labourism. How this could be done is dealt with elsewhere (Standing, 2010). Without a proper global body, the Voice of the precariat will be muted or ignored.
The Sharing Economy: The End of Employment and the Rise of Crowd-Based Capitalism by Arun Sundararajan
3D printing, additive manufacturing, Airbnb, Amazon Mechanical Turk, autonomous vehicles, barriers to entry, basic income, bitcoin, blockchain, Burning Man, call centre, collaborative consumption, collaborative economy, collective bargaining, commoditize, corporate social responsibility, cryptocurrency, David Graeber, distributed ledger, employer provided health coverage, Erik Brynjolfsson, ethereum blockchain, Frank Levy and Richard Murnane: The New Division of Labor, future of work, George Akerlof, gig economy, housing crisis, Howard Rheingold, information asymmetry, Internet of things, inventory management, invisible hand, job automation, job-hopping, Kickstarter, knowledge worker, Kula ring, Lyft, Marc Andreessen, megacity, minimum wage unemployment, moral hazard, moral panic, Network effects, new economy, Oculus Rift, pattern recognition, peer-to-peer, peer-to-peer lending, peer-to-peer model, peer-to-peer rental, profit motive, purchasing power parity, race to the bottom, recommendation engine, regulatory arbitrage, rent control, Richard Florida, ride hailing / ride sharing, Robert Gordon, Ronald Coase, Second Machine Age, self-driving car, sharing economy, Silicon Valley, smart contracts, Snapchat, social software, supply-chain management, TaskRabbit, The Nature of the Firm, total factor productivity, transaction costs, transportation-network company, two-sided market, Uber and Lyft, Uber for X, universal basic income, Zipcar
The IRC does not use “business judgment” as a term, but does ask if the worker’s services are available to the market directly. d. The Supreme Court draws its multi-factor test from Nationwide Mutual Ins. Co. v. Darden, 503 U.S. 318 (1992). Third, the true underlying issue isn’t really about a desire among workers for full-time employment, but rather about a desire to obtain the benefits currently and exclusively associated with that status. As Fox notes, since the 1944 ruling—which for collective bargaining purposes categorized the newsboys as employees—workers classified as employees “now enjoy a wide variety of federal, state and local protections, from minimum-wage and overtime laws to unemployment insurance, that aren’t available to independent contractors.”3 This is an important distinction for a number of reasons, most saliently because the specter of future litigation may actually be preventing workers from getting benefits funded by the platforms.
Many Uber and Lyft drivers, Handy providers, and TaskRabbit taskers make a significant percentage of their living through the platforms, and the fraction of the world’s workforce that fits this description will grow in the coming years. Although full-time employees can pool their individual bargaining power and take collective action, protected by the National Labor Relations Act (NLRA), the NLRA does not protect independent contractors, and current antitrust law may penalize them for doing so, a point Elizabeth Kennedy highlights using the example of independent physicians in her 2005 paper on collective bargaining for dependent contractors.6 Further, as Ai-Jen Poo, a 2015 MacArthur Foundation Fellow, has highlighted for decades, the labor laws governing domestic workers are unfairly biased against workers relative to labor laws that cover other professions.7 Fifth, the current constraints of labor law will not allow a market-based solution to easily emerge. As I have already pointed out, we do not have space under the current structure to see the extent to which benefits and other protections of the platforms will naturally provide a flexible and on-demand workforce.
The ambiguity, the paradox, of their position is thus reflected in the term used to identify them.11 Early discussions of a “third way” for worker classification in the sharing economy came from Wilma Liebman, the chair of the United States NLRB in the first Obama administration,12 and from Denise Cheng of MIT in her 2015 Roosevelt Institute policy paper.13 The more detailed Brookings Institute “independent worker” proposal from Harris and Krueger in December 2015 highlights a number of legal reforms that would need to accompany such a definition. Salient among them are the need to alter antitrust law to allow independent workers to collectively bargain (as I discussed earlier); the need to make entities that use labor provided from independent workers exempt from offering minimum wage, overtime, and other hours-of-work-based worker protections; the need to allow platforms to provide workers-compensation insurance without triggering employee categorization; and the need to allow non-employer platforms (or what they call “intermediaries”) to withhold taxes.
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, Bretton Woods, 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, 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, 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, Thomas Malthus, Thorstein Veblen, too big to fail, Uber and Lyft, Uber for X, Y Combinator, zero-sum game, Zipcar
Little was done to prevent them, even after the Asian financial crisis of 1997–98 and the related collapse of Long-Term Capital Management, a US hedge fund that boasted two Nobel Prize-winning neo-liberal economists on its board. There was no political will to challenge the might of financial capital. At the heart of neo-liberalism is a contradiction. While its proponents profess a belief in free ‘unregulated’ markets, they favour regulations to prevent collective bodies from operating in favour of social solidarity. That is why they want controls over unions, collective bargaining, professional associations and occupational guilds. When the interests of free markets and property clash, they favour the latter. Neo-liberalism is a convenient rationale for rentier capitalism. THE GREAT CONVERGENCE It is impossible to make sense of the Global Transformation without appreciating the role of China. With a population of 1.4 billion, it has experienced three decades of rapid economic growth, becoming the world’s de facto industrial workshop.
Alistair Darling, former Labour Chancellor, admitted as much when he wrote that tax credits ‘support many who will not benefit from the minimum wage’.22 Tax credits are a subsidy to capital, distort labour markets and hold down wages. Research suggests that employers gain a quarter to a third of their value through paying lower wages.23 The unions have erred in supporting them, since they are a poor substitute for collective bargaining and reduce the incentive for low-paid workers to join unions. They are also bad for productivity, since they result in an under-valuation of labour, reducing the pressure on employers to be efficient. They also encourage firms to use low-paid workers rather than higher-wage employees. By definition, tax credits raise the income of those receiving them, thereby helping them out of poverty.
Where taskers are contractors working primarily for one company and required to comply with its rules and standards, there is a case for calling them employees, as the California appeals court decided in the case of FedEx drivers. But any distinction between contractors and employees will be arbitrary. Instead of trying to shoehorn tasking into the dichotomous classification of contractor or employee, taskers should form a separate category. This is one reason for strengthening taskers’ collective bargaining capacities. Tasker associations should be set up, as separate entities or within occupational bodies. Certainly, the emergence of taskers will intensify friction between groups of workers; there is not and never has been a ‘unified working class’. The divergence of interests is why a ‘collaborative’ bargaining system is needed, for bargaining between complementary or substitute occupational groups, not just between employers and employees.8 On one side are employers, requesters and labour brokers; on the other, employees, taskers and freelancers.
Alfred Russel Wallace, banks create money, basic income, Buckminster Fuller, collective bargaining, computerized trading, creative destruction, David Ricardo: comparative advantage, declining real wages, deindustrialization, diversified portfolio, en.wikipedia.org, Fractional reserve banking, full employment, hydraulic fracturing, income inequality, Jaron Lanier, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph Schumpeter, land reform, Mark Zuckerberg, Network effects, oil shale / tar sands, Paul Samuelson, profit maximization, quantitative easing, rent-seeking, Ronald Coase, Ronald Reagan, Silicon Valley, sovereign wealth fund, the map is not the territory, The Spirit Level, The Wealth of Nations by Adam Smith, Thorstein Veblen, transaction costs, Tyler Cowen: Great Stagnation, Upton Sinclair, Vilfredo Pareto, wealth creators, winner-take-all economy
That has been done by various countries in various ways, but there’s always pushback and never a guarantee that gains for the middle class will endure. Sustaining a large middle class requires counterbalancing the profit-maximizing imperative of corporations. For much of the twentieth century, the requisite counterforce came from labor unions. In the United States and Western Europe, labor unions finished the job that Henry Ford started. Through collective bargaining, they drove up wages and shortened the workweek; through political power, they won such benefits as unemployment insurance and Medicare. In countries like Germany and Sweden, where labor unions have remained strong, so has the middle class. In the United States, by contrast, union membership peaked in 1945 at 35 percent of nonagricultural workers, then started declining. It’s now at 12 percent of the total workforce and just 6 percent of private sector workers, and the trend isn’t likely to reverse.6 THESE THREE PHENOMENA, though distinct, aren’t unconnected.
See also Carbon capping in California, 117–118 Clean Air Act creating, 99 climate change and, 99–100 labor unions and, 131–132 offsets in, 104–105 Capital gains, 47 Capitalism creative destruction and, 120 everyone-gets-a-share capitalism, 3–4, 42, 126 types of income and, 27–28 winner-take-all capitalism, 3, 33–34 Carbon capping, 97–118 European carbon trading system, 99, 104–105 Carbon dioxide carbon capping, 97–118 carbon taxing, 113–116 environmental movement and, 135–136 pollution permits, 93 Carbon Limits and Energy for America’s Renewal (CLEAR) Act, 142 Carbon taxing, 113–116 CheatNeutral.com, 104 China, 25–26, 105 Citizen’s income, 79–80 Civil War, debt-free money distribution and, 91–92 Clean Air Act, 99 Climate change, 99–100 Clinton, William J., 99, 114 Coal-burning power plants, 99 Coase, Ronald, 98–99 Collective bargaining, 19 Collins, Chuck, 33 Collins, Susan, 110 Commercial banks. See banks Committee on Economic Security (FDR), 41–42 Common Assets Trust in Vermont, 127–128 Common Sense (Paine), 7–8 Competition and monopolies, 51–52 Co-owned wealth. See also Dividends; Rent adjacent possible and, 121 audit of, 62 benefits, entitlement to, 62 components of, 60–61 defined, 11 at economy-wide level, 140–141 externalities and, 64 guidelines for creating, 89–92 management of, 62 mental ideas and, 122–127 one person, one share, 123–124 political environment and, 120 potential dividends and, 139–146 pre-distribution and, 125–127 quantity of assets needed for, 93–95 shared wealth dividends, 124–125 specific assets and, 141–146 user fees for, 85–86 Copyrights, rent from, 144 Cowen, Tyler, 135 Creative destruction, 120 Credo, 45 Crisis preparing for, 121–127 to-do lists and preparing for, 127–131 Currency trading, 92 D Dales, John, 98 Darwin, Charles, 120 Debt fractional reserve banking and, 90 leverage, 47 Debt-free money distribution, 90–91 Lincoln, Abraham and, 91 Defined-benefits pensions, 123 Deindustrialization, 17 Dell Computers, 25–26 Democratic Congressional Campaign Committee, 109 Democrats and direct spending, 22 The Depression and the Townsend Plan, 133–134 Deregulation, 21 Derivatives, potential revenue from transaction fees, 143 Deunionization, 18–19 Distribution of wealth, 14 Dividends, 9–10.
Getting Back to Full Employment: A Better Bargain for Working People by Dean Baker, Jared Bernstein
2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, Affordable Care Act / Obamacare, American Society of Civil Engineers: Report Card, Asian financial crisis, collective bargaining, declining real wages, full employment, George Akerlof, income inequality, inflation targeting, mass immigration, minimum wage unemployment, new economy, price stability, publication bias, quantitative easing, Report Card for America’s Infrastructure, rising living standards, selection bias, War on Poverty
The absence of full employment in most years since the 1970s was not the only factor in play; the reasons for the rise in inequality include globalization, technological change, a bubble-driven finance sector claiming disproportionate profit shares, declining unions, a falling value of the minimum wage, and more. But slack employment and its corollary – diminished bargaining power – get overlooked, in no small part because policymakers assume full employment is out of their control, though it is decidedly not. To give up on full employment is a mistake, because in an economy in which collective bargaining is minimal in the private sector and under siege in the public sector, full employment is the only route for working Americans can get ahead. Rising living standards for the majority require a labor market that is tight enough to force employers to raise compensation to the level where they can attract and keep the workers they need. Whenever that force has been in place, working people have done much better than when it’s been absent.
In addition, because workers stay on the job, they do not have the same risk of falling into a period of long-term unemployment and losing their attachment to the workforce. Instead, they will be having their skills continually upgraded, as will their colleagues at work, as companies adjust their production in response to changes in demand and technology. This system has worked well in Germany in part because it has a long tradition of labor–management cooperation. About 20 percent of Germany’s workforce is unionized, but collective bargaining covers a much larger share, about 60 percent (in the United States only about 11 percent of the workforce are union members and 12.5 percent are covered by agreements). Under German law, all large companies have workers’ councils that provide a formal opportunity for worker input regardless of whether or not the workers are unionized. In this environment it is easier to arrange for reductions in hours, since there is more of an atmosphere of trust between workers and management.
The Coke Machine: The Dirty Truth Behind the World's Favorite Soft Drink by Michael Blanding
carbon footprint, clean water, collective bargaining, corporate social responsibility, Exxon Valdez, Gordon Gekko, Internet Archive, laissez-faire capitalism, market design, Naomi Klein, New Journalism, Ponzi scheme, profit motive, Ralph Nader, rolodex, Ronald Reagan, shareholder value, The Wealth of Nations by Adam Smith, Thorstein Veblen, union organizing, Upton Sinclair
Two of its leaders had already been killed by the time Isidro Gil was named secretary-general and put in charge of renegotiating the workers’ contract with the bottling company. On November 18, 1996, the union submitted its final proposal for a new contract, demanding increased pay and bene fits, along with protection from firing and new security measures to keep union leadership safe from violence. The Coke plant’s local managers and its Florida-based owners had until December 5 to respond to the collective bargaining proposal. As he stood at the gate that morning, Gil was mentally preparing for the meeting that day, not knowing it would never take place. As he opened the gate to let out the delivery truck, he stepped back behind the gatehouse. The truck rumbled past, its bright red Coke logo shining in the morning light. Before Gil could push the metal frame closed, the visitor walked right through the gate behind it.
In 2002, González’s daughter, then “SYRUP IN THE VEINS” 197 twelve, answered the phone to a voice telling her that her “son-of-a-bitch terrorist father” had to give them 20 million pesos ($10,000) or they would kill his daughter. His wife left soon afterward. “She would say, ‘You ruined my life, my family, my daughters.’” González halts again, choking back tears. “Everyone starts to distrust you, even the neighbors.” As the tears flow, so do the words. “They want to destroy the union and because of that the collective bargaining gets worse, and the conditions for the workers get worse. I’m not a guerrilla member, I’m not a paramilitary member. I just have convictions that the country needs to change.” He suddenly explodes in a sardonic laugh. “You get so fucking pissed off by your helplessness that you want to put a bomb in the place and blow it up. You get in such an extreme psychological state you want to be a suicide bomber and just finish it off.”
By 2009, according to SINALTRAINAL researcher Carlos Olaya, that number was 350. Much of the decline has been due to outsourcing of the workforce to contract or temporary workers, he says; from 10,000 full-time workers in 1993, the company now employs only 2,000. Most of the other workers are so-called cooperative workers who are responsible for their own health insurance and other benefits, and of course excluded from collective bargaining. 1 98 THE COKE MACHINE Even the direct workers have seen wages decline from a high of $800 a month to near $500. For nonunionized workers, wages are even worse— only $150 a month. In addition, workers have lost overtime and holiday bonuses. All of the consolidation and downsizing, however, has been tre mendously successful for the company; Coca-Cola now controls 60 per cent of the nonalcoholic beverages market in the country; with the acquisition of Panamco by Coca-Cola FEMSA in 2003, the country has been one of the new anchor bottlers’ primary growth markets.
additive manufacturing, barriers to entry, Berlin Wall, bilateral investment treaty, business process, business process outsourcing, call centre, citizen journalism, Clayton Christensen, clean water, collapse of Lehman Brothers, collective bargaining, colonial rule, conceptual framework, corporate governance, creative destruction, crony capitalism, deskilling, disintermediation, don't be evil, failed state, Fall of the Berlin Wall, financial deregulation, Francis Fukuyama: the end of history, illegal immigration, immigration reform, income inequality, income per capita, intangible asset, intermodal, invisible hand, job-hopping, Joseph Schumpeter, Julian Assange, Kickstarter, liberation theology, Martin Wolf, mega-rich, megacity, Naomi Klein, Nate Silver, new economy, Northern Rock, Occupy movement, open borders, open economy, Peace of Westphalia, Plutocrats, plutocrats, price mechanism, price stability, private military company, profit maximization, Ronald Coase, Ronald Reagan, Silicon Valley, Skype, Steve Jobs, The Nature of the Firm, Thomas Malthus, too big to fail, trade route, transaction costs, Washington Consensus, WikiLeaks, World Values Survey, zero-sum game
But as much as unions get credit for major breakthroughs in working life, at least in rich countries (“the folks who brought you the weekend,” as the American sticker slogan says), the story of the great trade unions for several decades now has been one of decline. The numbers vary, and not every comparison is valid given the differences in structures from country to country. Still, both union density (the percentage of workers who are members of unions) and bargaining coverage (the percentage of workers covered by a collective bargaining agreement, whether they themselves are union members or not) have been declining in most OECD countries, in some cases steeply. In the United States, union density has plummeted from 36 percent after World War II to just 12 percent today. In the private sector, the drop has been even sharper, from about one-third half a century ago to less than 8 percent now. Union density in the OECD countries varies from 5.8 percent in Turkey to 68.3 percent in Sweden (according to 2008 data), but in almost every case the numbers have been at best stagnant, and more often declining, in a trend that has held in much of Europe for several decades.
Fast-forward three decades, to a protest held at the National Mall in 2010, and the labor unions could pull together only a small fraction of that number, with 169 turnout lower than at Glenn Beck’s Tea Party rally five weeks earlier. 22 And in 2012 another important defeat confirmed the waning power of the US labor movement as, despite a massive effort, unions failed to win a recall election against Governor Scott Walker of Wisconsin. The causes of this general decline include familiar factors: globalization and technological innovation have made it easier for employers to move jobs to other countries or to eliminate them altogether, changing the balance of power in favor of employers. Though the point of collective bargaining might have been precisely to protect workers from this situation, the forces that gathered in favor of flexible and global labor markets, often supported by governments ideologically committed to market-oriented reforms, usually proved too strong. Moreover, unionization historically thrived in industries and occupations that rely on unskilled labor, which is easier to organize. As automation replaced unskilled laborers in various heavy industries, or those jobs went overseas where unskilled labor was less costly, unions needed to move into new sectors such as services that needed fresh organizing.
Many of its members were also recent immigrants, beneficiaries of the trends in global mobility that were reshaping markets and workplaces. And like their predecessors in factories and warehouses, all of them were driven by an aspiration to better themselves and achieve the gains that first lured them to the United States. Led by Andy Stern, recognized as an innovator not just in 170 American labor but also in politics and social mobilization,23 the union secured major victories with collective bargaining deals for some of the most vulnerable workers in the United States, such as janitors and child-care workers, many of whom work multiple part-time jobs and do not speak good English.24 Historically, these groups had been neglected by a union movement focused on factories and traditional industries. To organize them required not just a bright idea on the part of Stern and his team but also new tools, including alliances outside the labor movement with community and immigrant groups, and a deeper involvement in elections than simply raising money and turning out the vote on election day for local Democratic Party candidates.
Affordable Care Act / Obamacare, bank run, big-box store, bonus culture, collateralized debt obligation, collective bargaining, commoditize, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, Deng Xiaoping, financial innovation, housing crisis, invisible hand, money market fund, Naomi Klein, obamacare, payday loans, profit maximization, profit motive, road to serfdom, Robert Bork, Ronald Reagan, shareholder value, strikebreaker, The Chicago School, The Myth of the Rational Market, Thorstein Veblen, too big to fail, union organizing, Washington Consensus, white flight, Works Progress Administration
To “the reactionary,” the New Deal reforms were objectionable for the opposite reason: they meant “the capitalist system has been destroyed.”15 It is this latter complaint that concerns us today, and Seldes provided a helpful gloss on its long history. People had moaned as far back as the 1840s that allowing labor unions to exist would destroy capitalism, the author recalled, and sure enough, the form of capitalism they had in those days died, to be replaced by “capitalism modified by the right of collective bargaining.” The end-time fears returned, according to Seldes, when the federal government threatened to begin regulating railroads in the 1880s, and again the end of the world came to pass. Capitalism died, to be replaced this time by “capitalism modified by collective bargaining and Federal regulation.”16 Life went on. Today, as in Gilbert Seldes’s time, the fear that true capitalism is about to perish is with us again. Now, as then, only absolutes seem to matter. The panicked ones ignore the American genius for pragmatism and the long, complicated history of political compromise that actually built our economic system.
This was no ordinary business-cycle downturn. Millions of Americans, and a large number of their banks, became insolvent in a matter of weeks. Sixteen trillion dollars in household wealth was incinerated on the pyre Wall Street had kindled. And yet, as I write this, the most effective political response to these events is a campaign to roll back regulation, to strip government employees of the right to collectively bargain, and to clamp down on federal spending. So let us give the rebels their due. Let us acknowledge that the conservative comeback of the last few years is indeed something unique in the history of American social movements: a mass conversion to free-market theory as a response to hard times. Before the present economic slump, I had never heard of a recession’s victims developing a wholesale taste for neoclassical economics or a spontaneous hostility to the works of Franklin Roosevelt.
The Global Auction: The Broken Promises of Education, Jobs, and Incomes by Phillip Brown, Hugh Lauder, David Ashton
active measures, affirmative action, barriers to entry, Branko Milanovic, BRICs, business process, business process outsourcing, call centre, collective bargaining, corporate governance, creative destruction, credit crunch, David Ricardo: comparative advantage, deindustrialization, deskilling, Frederick Winslow Taylor, full employment, future of work, glass ceiling, global supply chain, immigration reform, income inequality, industrial cluster, industrial robot, intangible asset, job automation, Joseph Schumpeter, knowledge economy, knowledge worker, labour market flexibility, low skilled workers, manufacturing employment, market bubble, market design, neoliberal agenda, new economy, Paul Samuelson, pensions crisis, post-industrial society, profit maximization, purchasing power parity, QWERTY keyboard, race to the bottom, Richard Florida, Ronald Reagan, shareholder value, Silicon Valley, sovereign wealth fund, stem cell, The Bell Curve by Richard Herrnstein and Charles Murray, The Wealth of Nations by Adam Smith, Thomas L Friedman, trade liberalization, transaction costs, trickle-down economics, winner-take-all economy, working poor, zero-sum game
Human capital ideas not only changed the way people thought about skills and productivity but also had wider political appeal, as they suggested a new relationship between capital (money) and labor (minds). Investment in human beings was no longer solely a source of wealth creation for companies but also a source of earning potential for individuals. What people were paid did not depend on owning one’s own business or result from collective bargaining that set employers against labor unions in a ﬁght for a bigger slice of the cake. Rather, wages were based on a worker’s contribution to productivity, as earnings were assumed to reﬂect value added to the organization. Everyone could become a capitalist, whether or not people knew it (or liked it), by investing in themselves through learning. As Schultz suggests, “Laborers have become capitalists not from a diffusion of the ownership of corporation stock, as folklore would have it, but from the acquisition of knowledge and skill that have economic value.”8 In turn, this was believed to contribute to a broader commitment to social justice as people were rewarded on individual merit, and the growth in middle-class jobs offered the potential for rapid social mobility through investments in human capital.
It has also depended on free market reforms initiated by Ronald Reagan and Margaret Thatcher. It is not only the greed of executives that is at issue; they are also the beneﬁciaries of a free market system that distorts income distribution in favor of a few. Free market policies shifted the balance of power in favor of shareholders and corporate bosses as much as the deregulation of global ﬁnancial markets. By removing the potential for collective bargaining with the decline of union representation, market power became even more concentrated on the upper ﬂoors of corporate headquarters. Much like a game of Monopoly, unregulated markets have their own internal logic, as most of the money goes to those who own the houses and hotels on the prized streets of Manhattan. At the same time, these policies removed the social shock absorbers that gave protection to workers in other countries such as Sweden, France, and Germany.
See also United Kingdom Brown, Gordon, 23 bailout, 111, 148, 151 Batra, Ravi, 178n21 Baumol, William, 152 Becker, Gary, 122–23 Brown, Phillip, 143, 182n3 Buchanan, James, 134 build to order, 101–2 Bush administration, 111–12 business processes, 51–52, 72, 74–76, 77, 79 Bussolo, Maurizio, 130–31 recessions, 148 reverse engineering, 42 riots, 10 call centers, 51–52, 73, 81 Callahan, David, 144 Cambridge University, 134 Canada, 30, 91 Cao, Cong, 44 technology transfer, 41 telecommunications industry, 54 trade imbalance, 108–9, 151 unemployment, 41, 47 wage rate increase, 59 Capco Consulting, 77 capital (deﬁned), 162–63, 187n30 capitalism, 4–6, 10–11, 17, 23–26, 54, 67–68, 110–11, 113, 115, 151, 157, 161, 180n25, war for talent, 88–89 WTO (World Trade Organization), 41 Christian, Parenti, 174n33 classical economics theory, 100 187n26 casino economy, 187n31 club of rich nations, 30, 32, 168n2 cold-callers, 74 CFO Magazine, 79 Chambers, John, 85 Chanel, 114 collective bargaining, 17, 125, 160 colleges and universities, 6, 7–9, 25–26, 30, 31, 32, 40–41, 46–47, 87–88, 93–95, 116, childhood, 11–12, 143–46, 160 China. See also BRIC (Brazil, Russia, India, and China) nations auto industry, 54 Blackstone Group Greater China, 43, Collins, Randall, 139 The Coming of Post-Industrial Society, 18 comparative advantage, 111 180n24 cheating scandal, 144 competencies, 78–79 competition China Development Bank (CDB), 42 China International Marine Containers Group (CIMC), 57–58 academic credentials, 139 Asian Tigers, 18 and education, 40 China Investment Corporation, 42–43 Chinese Academy of Science, 44 elite universities, 95 global auction, 132 Chinese Dragons, 58 education, 7–8, 29–30, 32, 32–35 global auction, 148 global economy, 3 human capital, 18, 106, 161 knowledge economy, 15 government as economic partner, 157–58 green technologies, 157 knowledge wars, 20, 22–23, 30, 47, 164 mass production, 71–72 Harvard Girl Yiting Liu, 145 Higher Education Mega Centre, 29 Human Genome Project, 40 neoliberalism, 24 and prosperity, 154–55 quality-cost revolution, 50 income inequalities, 129 intellectual property rights (IPRs), 53 knowledge wars, 20 middle class, 2, 130 modernization, 157 nanotechnology program, 44 self-interest, 40 STEM subjects studies, 155 supply chains, 104–5 transnational companies, 99–100 trust relations, 107 war for talent, 87, 89–93 opportunity trap, 137 Project 211, 33 quality-cost revolution, 50, 55, 60–61 R&D (research and development), 42–43, 53, 157 190 119, 121, 133–34, 136, 140, 153, 162, 177n26 Index winner-takes-all, 11, 165n7 computer industry, 42, 56, 66, 72–77, 81, 89, 100–102, 174n27.
A Failure of Capitalism: The Crisis of '08 and the Descent Into Depression by Richard A. Posner
Andrei Shleifer, banking crisis, Bernie Madoff, collateralized debt obligation, collective bargaining, corporate governance, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, debt deflation, diversified portfolio, equity premium, financial deregulation, financial intermediation, Home mortgage interest deduction, illegal immigration, laissez-faire capitalism, Long Term Capital Management, market bubble, money market fund, moral hazard, mortgage debt, Myron Scholes, oil shock, Ponzi scheme, price stability, profit maximization, race to the bottom, reserve currency, risk tolerance, risk/return, Robert Shiller, Robert Shiller, savings glut, shareholder value, short selling, statistical model, too big to fail, transaction costs, very high income
The debts that get written down can include health and pension benefits, which in the case of the auto companies continue to be a drag on profitability even though those benefits have been reduced in recent years. Assuming, therefore, that the companies would be economically viable at a reduced level of production and are broke only because they are crushed by debts contracted when their output was much greater, reorganization in bankruptcy would be the sensible solution to their financial problems. The bankruptcy court could also abrogate the collective bargaining contracts between the automakers and the United Auto Workers. That would allow the automakers to slash wages and benefits — and a drastic reduction in labor costs may well be essential to their long-term survival. But this rosy picture belongs to normal times. There were three problems with allowing the automakers to be forced into bankruptcy just as the nation was sliding into a depression.
In supporting the auto bailout bill the Democrats scored points with their constituencies by standing up for union workers, for the "greening" of the automobile industry, for states in which the domestic auto industry is centered that voted Democratic in the recent election (Michigan, Ohio, and Indiana), for the principle of active government, and for trying to avert a deepening of the current depression. The auto-bailout bill had earned the ire of Republican senators because of its failure to lean hard on the collective bargaining agreements negotiated by the United Auto Workers, because of the divided control of the industry that the bill created— divided among the manufacturers, a federal "car czar," and intrusive congressional oversight— and because of the considerable element of fantasy in the idea that Congress plus the President can revitalize the domestic auto industry. Nowhere is it written that the United States, let alone the states in which the domestic auto manufacturers are centered, has a comparative advantage over other countries, or other regions of the United States, in manufacturing motor vehicles.
The UAW's role in the decline of the Detroit auto industry underscores the potential dangers to the economy, in a period of great economic stress, of Democrats' traditional fondness for unions, which stems from the efforts that unions make to get Democratic politicians elected, as well as from New Deal nostalgia and other forms of sentimental liberalism. Quite apart from the UAW, the depression may give the Administration and Congress pause concerning measures to strengthen unions, such as the proposed Employee Free Choice Act. The act would abolish the requirement of secret elections to determine whether a workplace shall be unionized and, if the union prevails and union and employer cannot agree on the terms of a collective bargaining agreement, would require binding arbitration. A fall in wages is a problem in a depression, as we know, because it can further a deflationary spiral, although it can also reduce unemployment, so that the net effect is uncertain. But an increase in wages, and a reduction in the efficiency with which labor is utilized (because of union-imposed work rules), will have an unambiguously negative effect on output by increasing employers' labor costs, and the reduction in output will lead to an increase in unemployment.
Austerity Britain: 1945-51 by David Kynaston
Alistair Cooke, anti-communist, British Empire, Chelsea Manning, collective bargaining, continuous integration, deindustrialization, deskilling, Etonian, full employment, garden city movement, hiring and firing, industrial cluster, invisible hand, job satisfaction, labour mobility, light touch regulation, mass immigration, moral panic, Neil Kinnock, occupational segregation, price mechanism, rent control, reserve currency, road to serfdom, Ronald Reagan, stakhanovite, strikebreaker, the market place, upwardly mobile, urban planning, urban renewal, very high income, wage slave, washing machines reduced drudgery, wealth creators, women in the workforce, young professional
Predictably, it was Deakin who fought a particularly sturdy and effective campaign against Communist influence in the unions, including in 1949 persuading his own union to bar Communists from holding office in it; by about 1953 it was generally reckoned that Communist influence in the unions had dwindled significantly, though it was still far from extinct.19For the British Communist Party, however, the workplace was a crucial location in the larger struggle, given the party’s almost complete lack of success in conventional electoral politics, and it had in its ranks some very determined and motivated people more than willing to play the long industrial game. When agreeing in the late 1940s to go out on a limb for the Labour government, Deakin was adamant that a temporary wage freeze should in no way be taken as undermining the hallowed principle of free collective bargaining – a principle at the very heart of British trade unionism. Allan Flanders, the leading academic analyst of industrial relations in this period, explained in 1952 the all-important historical, largely nineteenth-century, context: The significance of collective bargaining to the workers might be summed up in the word, self-protection. It enabled them to protect their interests in relation to their employment in three ways. First of all, in the presence of a reserve army of unemployed, it eliminated the competition which would otherwise exist among them to offer their services at a lower price than their fellow-workers for the sake of securing employment.
But we were also egalitarians, wishing to see a shift in the distribution of wealth towards those with lower incomes, and a shift of power over the conduct of their working lives and environment towards working men and women; and, for both these reasons, emphasising the importance of trade unions in industry, in the economy, and in society. We therefore attached special importance to collective bargaining as the means whereby trade unions pursue their objectives. The book itself was imbued with the assumption that enhanced trade union power was, if exercised in the appropriate way, an almost unequivocal social and economic good. The appropriate way included moderation in recourse to the strike weapon; the use wherever possible of industry-wide collective bargaining; and such bargaining to be reliant upon long-nurtured codes rather than externally imposed legal contracts.20Altogether, it was in its way a noble vision. Unfortunately for its long-term implementation, however, the fact was that British trade unionism, as it had evolved by the early 1950s, had three fateful Achilles heels.
The Treasury, not for the first or last time, gave a masterclass in institutional scepticism; there was much intellectual confusion as to what economic planning in peacetime actually meant and entailed, as epitomised by the muddle-headedness of Morrison, theoretically in charge of planning; and for more than two years there was the unwillingness of either the Ministry of Labour or the trade union leaders (for all their considerable goodwill towards the government) to countenance a wages policy, seen as a direct threat to the long, jealously guarded tradition of free collective bargaining – an unwillingness that more or less scuppered the chance of any meaningful manpower planning. But ultimately, what really killed central economic planning was the lack of willpower on the part of government. In particular, the Labour Party’s commitment to democratic socialism meant in practice an aversion to either new, unaccountable administrative mechanisms or any form of tripartism (ie government, management and labour) that seemed to threaten the sovereignty of the familiar parliamentary system.
Trust: The Social Virtue and the Creation of Prosperity by Francis Fukuyama
barriers to entry, Berlin Wall, blue-collar work, business climate, capital controls, collective bargaining, corporate governance, corporate raider, creative destruction, deindustrialization, Deng Xiaoping, deskilling, double entry bookkeeping, equal pay for equal work, European colonialism, Francis Fukuyama: the end of history, Frederick Winslow Taylor, full employment, George Gilder, glass ceiling, global village, Gunnar Myrdal, hiring and firing, industrial robot, Jane Jacobs, job satisfaction, joint-stock company, joint-stock limited liability company, Joseph Schumpeter, Kenneth Arrow, labour market flexibility, labour mobility, land reform, liberal capitalism, liberation theology, low skilled workers, manufacturing employment, mittelstand, price mechanism, profit maximization, RAND corporation, rent-seeking, Ronald Coase, Silicon Valley, Steve Jobs, Steve Wozniak, The Death and Life of Great American Cities, The Nature of the Firm, the scientific method, The Wealth of Nations by Adam Smith, transaction costs, transfer pricing, traveling salesman, union organizing
It was Bismarck, after all, who implemented Europe’s first social security system in the 1880s (albeit as the counterpart to his antisocialist legislation that included a ban on the SPD).16 The Sozialmarktwirtschaft actually had its origins in the Weimar period in the 1920s, when various forms of labor legislation, including the right of free collective bargaining and workers’ councils, were introduced.17 After the tumultuous 1930s and 1940s, when the Nazis banned independent trade unions and set up their own “yellow” corporatist organizations, postwar German leaders shared a broad consensus that a new, more cooperative system needed to be established. Major elements of the Sozialmarktwirtschaft were Mitbestimmung, or codetermination, a system under which labor representatives sat on boards of the companies they worked for, with access to corporate information and a real, if limited, participation in governance; a network of workers’ councils for managing problems and conflicts on an enterprise level; the system of collective bargaining between the industry associations and the labor unions, by which wages, hours, benefits, and the like are set on a sector- or industry-wide basis;18 and finally, the extensive social welfare legislation that stipulates health benefits, working conditions, hours, job security, and the like.
These include the Federal Association of German Employers, the Federal Association of German Industry, and various other groups connected with specific industrial sectors.13 These trade associations do not have ready counterparts outside Central Europe. Their activities and responsibilities are far broader than those of political lobbying associations like the American Chamber of Commerce or the National Association of Manufacturers. The German Verbände act as the counterparts of the trade unions during collective bargaining negotiations, by which wages, benefits, and work conditions are set on an industry-wide basis; they are actively involved in setting standards for training and product quality; and they engage in long-range planning for the strategic future of particular industrial sectors. The trade associations played a key role in initiating negotiations leading to the Investment Aid Act of 1952, for example, by which the relatively well-off sectors of German industry were taxed in order to subsidize certain bottleneck sectors like coal, steel, electricity, and railways.14 The third set of communitarian economic institutions consists of the complex of labor-management relations that were codified as part of Ludwig Erhardt’s postwar Sozialmarktwirtschaft, or social market economy.
They are based instead on informal moral obligation and would not be enforceable in a court of law. In Germany, by contrast, virtually all of the elements of the Sozialmarktwirtschaft are backed by legislation that spells out, often in great detail, the terms of the relationship. Even communal institutions that are deeply embedded in and dependent on the intermediate organizations of German civil society, such as codetermination and collective bargaining, came into being as the result of a top-down political process led by the state. Japan’s communal institutions, on the other hand, just seemed to jell out of civil society without the benefit of an explicit political decision. Although it is hard to argue that the Japanese economy is less heavily regulated than its German counterpart, much of the communal interaction in Japan is done off the books, so to speak.
The Great Leveler: Violence and the History of Inequality From the Stone Age to the Twenty-First Century by Walter Scheidel
agricultural Revolution, assortative mating, basic income, Berlin Wall, Bernie Sanders, Branko Milanovic, British Empire, capital controls, Capital in the Twenty-First Century by Thomas Piketty, collective bargaining, colonial rule, Columbian Exchange, conceptual framework, corporate governance, cosmological principle, crony capitalism, dark matter, declining real wages, demographic transition, Dissolution of the Soviet Union, Downton Abbey, Edward Glaeser, failed state, Fall of the Berlin Wall, financial deregulation, fixed income, Francisco Pizarro, full employment, Gini coefficient, hiring and firing, income inequality, John Markoff, knowledge worker, land reform, land tenure, low skilled workers, means of production, mega-rich, Network effects, nuclear winter, offshore financial centre, Plutocrats, plutocrats, race to the bottom, recommendation engine, rent control, rent-seeking, road to serfdom, Robert Gordon, Ronald Reagan, Second Machine Age, Simon Kuznets, The Future of Employment, The Wealth of Nations by Adam Smith, Thomas Malthus, transaction costs, transatlantic slave trade, universal basic income, very high income, working-age population, zero-sum game
This form of worker organization was employed to motivate the labor force for the war effort and provided a basis for the creation of enterprise-based unions under occupation. The Labor Union Law was drafted immediately after the arrival of U.S. forces, in the fall of 1945, based on prewar plans that had failed. Passed at the very end of that year, it gave workers the right to organize, strike, and engage in collective bargaining. Membership soared: in 1946, 40 percent of workers were unionized, and almost 60 percent were by 1949. Benefits on top of wages increased, and the health insurance and pension systems created during the war were expanded. Unions proved instrumental in establishing cooperative industrial relations, with their emphasis on seniority wages, job security—and, most important from a leveling perspective, by fostering consensus regarding a new wage structure that determined pay based on age, need, living standards, prices, and inflation.
Alongside the restructuring of businesses and labor relations as well as land reform, progressive taxation was a key mechanism for sustaining wartime leveling. Formalized from the 1950s onward, the Japanese tax system imposed a marginal rate of 60 percent to 75 percent on top incomes and an estate tax in excess of 70 percent on the largest fortunes. This helped contain income inequality and wealth accumulation well into the 1990s, just as strong protections for tenants depressed housing rental income and collective bargaining ensured ongoing wage compression.25 The war and its consequences made leveling sudden, massive, and sustainable. The bloodiest years in Japanese history, a war that cost millions of lives and visited enormous destruction on the homeland, had produced a uniquely equalizing outcome. This outcome was made possible by a novel type of warfare that required full demographic and economic mobilization.
New taxes were eventually required to fund these efforts, including highly progressive defense taxes and a special tax of 30 percent of estimated war profits levied on persons as well as businesses. These measures soon helped check the initial rise in inequality. Sweden likewise witnessed a sudden rise in top income shares during World War I, followed by a sharp decline by 1920, and so did Denmark. In both countries, the top 1 percent income share briefly exploded to an exceptional 28 percent in 1916 or 1917. The Danish state was slow to impose price and rent controls, and a collective bargaining agreement that did not expire until 1916 depressed real wages for workers at a time of rapid economic growth. Taxation rose only feebly. (There are no usable income share data for Norway for these years.31) By contrast, World War II coincided with opposite trends in several of the few European countries that escaped the conflict. Top income shares in Ireland declined significantly between 1938 and 1945, but data resolution is poor.
The Euro: How a Common Currency Threatens the Future of Europe by Joseph E. Stiglitz, Alex Hyde-White
bank run, banking crisis, barriers to entry, battle of ideas, Berlin Wall, Bretton Woods, capital controls, Carmen Reinhart, cashless society, central bank independence, centre right, cognitive dissonance, collapse of Lehman Brothers, collective bargaining, corporate governance, correlation does not imply causation, credit crunch, Credit Default Swap, currency peg, dark matter, David Ricardo: comparative advantage, disintermediation, diversified portfolio, eurozone crisis, Fall of the Berlin Wall, fiat currency, financial innovation, full employment, George Akerlof, Gini coefficient, global supply chain, Growth in a Time of Debt, housing crisis, income inequality, incomplete markets, inflation targeting, information asymmetry, investor state dispute settlement, invisible hand, Kenneth Arrow, Kenneth Rogoff, knowledge economy, labour market flexibility, labour mobility, light touch regulation, manufacturing employment, market bubble, market friction, market fundamentalism, Martin Wolf, Mexican peso crisis / tequila crisis, money market fund, moral hazard, mortgage debt, neoliberal agenda, new economy, open economy, paradox of thrift, pension reform, pensions crisis, price stability, profit maximization, purchasing power parity, quantitative easing, race to the bottom, risk-adjusted returns, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, secular stagnation, Silicon Valley, sovereign wealth fund, the payments system, The Wealth of Nations by Adam Smith, too big to fail, transaction costs, transfer pricing, trickle-down economics, Washington Consensus, working-age population
The Troika even put into question their commitment to the basic right of collective bargaining, the core labor standards that have been agreed to by almost all of the countries around the world. The language in which European authorities shrouded their demands was often obscure, but the intention seemed clear, so clear that in 2011 one of Papandreou’s loyalists, a bright and devoted economist, resigned from the government rather than be a party to this abnegation of basic workers’ rights. Here is what the Troika demanded of the Tsipras government (to which it reluctantly agreed), with the interpretation of Yannis Varoufakis, Greece’s former finance minister, in brackets. The Greek government agreed to undertake rigorous reviews and modernization of collective bargaining [i.e. to make sure that no collective bargaining is allowed], industrial action [i.e. that must be banned] and, in line with the relevant EU directive and best practice, collective dismissals [i.e. that should be allowed at the employers’ whim], along the timetable and the approach agreed with the Institutions [i.e. the Troika decides.]
., 266 Camdessus, Michel, 314 campaign contributions, 195, 355 Canada, 96 early 1990s expansion of, 209 in NAFTA, xiv railroad privatization in, 55 tax system in, 191 US’s free trade with, 45–46, 47 capital, 76–77 bank, 284–85 human, 78, 137 return to, 388 societal vs. physical, 77–78 tax on, 356 unemployment increased by, 264 capital adequacy standards, 152 capital budget, 245 capital controls, 389–90 capital flight, 126–34, 217, 354, 359 austerity and, 140 and labor flows, 135 capital flows, 14, 15, 25, 26, 27–28, 40, 116, 125, 128, 131, 351 economic volatility exacerbated by, 28, 274 and foreign ownership, 195 and technology, 139 capital inflows, 110–11 capitalism: crises in, xviii, 148–49 inclusive, 317 capital requirements, 152, 249, 378 Caprio, Gerry, 387 capture, 158–60 carbon price, 230, 260, 265, 368 cash, 39 cash flow, 194 Catalonia, xi CDU party, 314 central banks, 59, 354, 387–88 balance sheets of, 386 capture of, 158–59 credit auctions by, 282–84 credit creation by, 277–78 expertise of, 363 independence of, 157–63 inequality created by, 154 inflation and, 153, 166–67 as lender of last resort, 85, 362 as political institutions, 160–62 regulations and, 153 stability and, 8 unemployment and, 8, 94, 97, 106, 147, 153 CEO compensation, 383 Chapter 11, 259–60, 291 childhood poverty, 72 Chile, 55, 152–53 China, 81, 98, 164, 319, 352 exchange-rate policy of, 251, 254, 350–51 global integration of, 49–50 low prices of, 251 rise of, 75 savings in, 257 trade surplus of, 118, 121, 350–52 wages controlled in, 254 as world’s largest economy, 318, 327 chits, 287–88, 290, 299–300, 387, 388–389 Citigroup, 355 climate change, 229–30, 251, 282, 319 Clinton, Bill, xiv, xv, 187 closing hours, 220 cloves, 230 cognitive capture, 159 Cohesion Fund, 243 Cold War, 6 collateral, 364 collective action, 41–44, 51–52 and inequality, 338 and stabilization, 246 collective bargaining, 221 collective goods, 40 Common Agricultural Policy, 338 common regulatory framework, 241 communism, 10 Community Reinvestment Act (CRA), 360, 382 comparative advantage, 12, 171 competition, 12 competitive devaluation, 104–6, 254 compromise, 22–23 confidence, 95, 200–201, 384 in banks, 127 in bonds, 145 and structural reforms, 232 and 2008 crisis, 280 confirmation bias, 309, 335 Congress, US, 319, 355 connected lending, 280 connectedness, 68–69 Connecticut, GDP of, 92 Constitutional Court, Greek, 198 consumption, 94, 278 consumption tax, 193–94 contract enforcement, 24 convergence, 13, 92–93, 124, 125, 139, 254, 300–301 convergence criteria, 15, 87, 89, 96–97, 99, 123, 244 copper mines, 55 corporate income tax, 189–90, 227 corporate taxes, 189–90, 227, 251 corporations, 323 regulations opposed by, xvi and shutdown of Greek banks, 229 corruption, 74, 112 privatization and, 194–95 Costa, António, 332 Council of Economic Advisers, 358 Council of State, Greek, 198 countercyclical fiscal policy, 244 counterfactuals, 80 Countrywide Financial, 91 credit, 276–85 “divorce”’s effect on, 278–79 excessive, 250, 274 credit auctions, 282–84 credit bubbles, 122–123 credit cards, 39, 49, 153 credit creation, 248–50, 277–78, 386 by banks, 280–82 domestic control over, 279–82 regulation of, 277–78 credit default swaps (CDSs), 159–60 crisis policy reforms, 262–67 austerity to growth, 263–65 debt restructuring and, 265–67 Croatia, 46, 331, 338 currency crises, 349 currency pegs, xii current account, 333–34 current account deficits, 19, 88, 108, 110, 120–121, 221, 294 and exit from euro, 273, 285–89 see also trade deficit Cyprus, 16, 30, 140, 177, 331, 386 capital controls in, 390 debt-to-GDP ratio of, 231 “haircut” of, 350, 367 Czech Republic, 46, 331 debit cards, 39, 49 debtors’ prison, 204 debt restructuring, 201, 203–6, 265–67, 290–92, 372, 390 of private debt, 291 debts, xx, 15, 93, 96, 183 corporate, 93–94 crisis in, 110–18 in deflation, xii and exit from eurozone, 273 with foreign currency, 115–18 household, 93–94 increase in, 18 inherited, 134 limits of, 42, 87, 122, 141, 346, 367 monetization of, 42 mutualization of, 242–43, 263 place-based, 134, 242 reprofiling of, 32 restructuring of, 259 debt-to-GDP ratio, 202, 210–11, 231, 266, 324 Declaration of Independence, 319 defaults, 102, 241, 338, 348 and debt mutualization, 243 deficit fetishism, 96 deficits, fiscal, xx, 15, 20, 93, 96, 106, 107–8, 122, 182, 384 and balanced-budget multiplier, 188–90, 265 constitutional amendment on, 339 and exit from euro, 273, 289–90 in Greece, 16, 186, 215, 233, 285–86, 289 limit of, 42, 87, 94–95, 122, 138, 141, 186, 243, 244, 265, 346, 367 primary, 188 problems financing, 110–12 structural, 245 deficits, trade, see trade deficits deflation, xii, 147, 148, 151, 166, 169, 277, 290 Delors, Jacques, 7, 332 democracy, lack of faith in, 312–14 Democracy in America (Tocqueville), xiii democratic deficit, 26–27, 35, 57–62, 145 democratic participation, xix Denmark, 45, 307, 313, 331 euro referendum of, 58 deposit insurance, 31, 44, 129, 199, 301, 354–55, 386–87 common in eurozone, 241, 242, 246, 248 derivatives, 131, 355 Deutsche Bank, 283, 355 devaluation, 98, 104–6, 254, 344 see also internal devaluation developing countries, and Washington Consensus, xvi discretion, 262–63 discriminatory lending practices, 283 disintermediation, 258 divergence, 15, 123, 124–44, 255–56, 300, 321 in absence of crisis, 128–31 capital flight and, 126–34 crisis policies’ exacerbation of, 140–43 free mobility of labor and, 134–36, 142–44, 242 in public investment, 136–38 reforms to prevent, 243 single-market principle and, 125–26 in technology, 138–39 in wealth, 139–40 see also capital flows; labor movement diversification, of production, 47 Dodd-Frank Wall Street Reform and Consumer Protection Act, 355 dollar peg, 50 downsizing, 133 Draghi, Mario, 127, 145, 156, 158, 165, 269, 363 bond market supported by, 127, 200, 201 Drago, Luis María, 371 drug prices, 219 Duisenberg, Willem Frederik “Wim,” 251 Dynamic Stochastic Equilibrium model, 331 East Asia, 18, 25, 95, 102–3, 112, 123, 202, 364, 381 convergence in, 138 Eastern Europe, 10 Economic Adjustment Programme, 178 economic distortions, 191 economic growth, xii, 34 confidence and, 232 in Europe, 63–64, 69, 73–74, 74, 75, 163 lowered by inequality, 212–13 reform of, 263–65 and structural reforms, 232–35 economic integration, xiv–xx, 23, 39–50 euro and, 46–47 political integration vs., 51–57 single currency and, 45–46 economic rents, 226, 280 economics, politics and, 308–18 economic security, 68 economies of scale, 12, 39, 55, 138 economists, poor forecasting by, 307 education, 20, 76, 344 investment in, 40, 69, 137, 186, 211, 217, 251, 255, 300 electricity, 217 electronic currency, 298–99, 389 electronics payment mechanism, 274–76, 283–84 emigration, 4, 68–69 see also migration employment: central banks and, 8, 94, 97 structural reforms and, 257–60 see also unemployment Employment Act (1946), 148 energy subsidies, 197 Enlightenment, 3, 318–19 environment, 41, 257, 260, 323 equality, 225–26 equilibrium, xviii–xix Erasmus program, 45 Estonia, 90, 331, 346 euro, xiv, 325 adjustments impeded by, 13–14 case for, 35–39 creation of, xii, 5–6, 7, 10, 333 creation of institutions required by, 10–11 divergence and, see divergence divorce of, 272–95, 307 economic integration and, 46–47, 268 as entailing fixed exchange rate, 8, 42–43, 46–47, 86–87, 92, 93, 94, 102, 105, 143, 193, 215–16, 240, 244, 249, 252, 254, 286, 297 as entailing single interest rate, 8, 85–88, 92, 93, 94, 105, 129, 152, 240, 244, 249 and European identification, 38–39 financial instability caused by, 131–32 growth promised by, 235 growth slowed by, 73 hopes for, 34 inequality increased by, xviii interest rates lowered by, 235 internal devaluation of, see internal devaluation literature on, 327–28 as means to end, xix peace and, 38 proponents of, 13 referenda on, 58, 339–40 reforms needed for, xii–xiii, 28–31 risk of, 49–50 weakness of, 224 see also flexible euro Eurobond, 356 euro crisis, xiii, 3, 4, 9 catastrophic consequences of, 11–12 euro-euphoria, 116–17 Europe, 151 free trade area in, 44–45 growth rates in, 63–64, 69, 73–74, 74, 75, 163 military conflicts in, 196 social models of, 21 European Central Bank (ECB), 7, 17, 80, 112–13, 117, 144, 145–73, 274, 313, 362, 368, 380 capture of, 158–59 confidence in, 200–201 corporate bonds bought by, 141 creation of, 8, 85 democratic deficit and, 26, 27 excessive expansion controlled by, 250 flexibility of, 269 funds to Greece cut off by, 59 German challenges to, 117, 164 governance and, 157–63 inequality created by, 154–55 inflation controlled by, 8, 25, 97, 106, 115, 145, 146–50, 151, 163, 165, 169–70, 172, 250, 256, 266 interest rates set by, 85–86, 152, 249, 302, 348 Ireland forced to socialize losses by, 134, 156, 165 new mandate needed by, 256 as political institution, 160–62 political nature of, 153–56 quantitative easing opposed by, 151 quantitative easing undertaken by, 164, 165–66, 170, 171 regulations by, 249, 250 unemployment and, 163 as unrepresentative, 163 European Commission, 17, 58, 161, 313, 332 European Court of Human Rights, 45 European Economic Community (EEC), 6 European Exchange Rate Mechanism (ERM), 30, 335 European Exchange Rate Mechanism II (ERM II), 336 European Free Trade Association, 44 European Free Trade Association Court, 44 European Investment Bank (EIB), 137, 247, 255, 301 European Regional Development Fund, 243 European Stability Mechanism, 23, 246, 357 European Union: budget of, 8, 45, 91 creation of, 4 debt and deficit limits in, 87–88 democratic deficit in, 26–27 economic growth in, 215 GDP of, xiii and lower rates of war, 196 migration in, 90 proposed exit of UK from, 4 stereotypes in, 12 subsidiarity in, 8, 41–42, 263 taxes in, 8, 261 Euro Summit Statement, 373 eurozone: austerity in, see austerity banking union in, see banking union counterfactual in, 235–36 double-dip recessions in, 234–35 Draghi’s speech and, 145 economic integration and, xiv–xx, 23, 39–50, 51–57 as flawed at birth, 7–9 framework for stability of, 244–52 German departure from, 32, 292–93 Greece’s possible exit from, 124 hours worked in, 71–72 lack of fiscal policy in, 152 and move to political integration, xvi, 34, 35, 51–57 Mundell’s work on dangers of, 87 policies of, 15–17 possible breakup of, 29–30 privatization avoided in, 194 saving, 323–26 stagnant GDP in, 12, 65–68, 66, 67 structure of, 8–9 surpluses in, 120–22 theory of, 95–97 unemployment in, 71, 135, 163, 177–78, 181, 331 working-age population of, 70 eurozone, proposed structural reforms for, 239–71 common financial system, see banking union excessive fiscal responsibility, 163 exchange-rate risks, 13, 47, 48, 49–50, 125, 235 exchange rates, 80, 85, 288, 300, 338, 382, 389 of China, 251, 254, 350–51 and competitive devaluation, 105–6 after departure of northern countries, 292–93 of euro, 8, 42–43, 46–47, 86–87, 92, 93, 94, 102, 105, 215–16, 240, 244, 249, 252, 254, 286, 297 flexible, 50, 248, 349 and full employment, 94 of Germany, 254–55, 351 gold and, 344–45 imports and, 86 interest rates and, 86 quantitative easing’s lowering of, 151 real, 105–6 and single currencies, 8, 42–43, 46–47, 86–87, 92, 93, 94, 97–98 stabilizing, 299–301 and trade deficits, 107, 118 expansionary contractions, 95–96, 208–9 exports, 86, 88, 97–99, 98 disappointing performance of, 103–5 external imbalances, 97–98, 101, 109 externalities, 42–43, 121, 153, 301–2 surpluses as, 253 extremism, xx, 4 Fannie Mae, 91 farmers, US, in deflation, xii Federal Deposit Insurance Corporation (FDIC), 91 Federal Reserve, US, 349 alleged independence of, 157 interest rates lowered by, 150 mandate of, 8, 147, 172 money pumped into economy by, 278 quantitative easing used by, 151, 170 reform of, 146 fiat currency, 148, 275 and taxes, 284 financial markets: lobbyists from, 132 reform of, 214, 228–29 short-sighted, 112–13 financial systems: necessity of, xix real economy of, 149 reform of, 257–58 regulations needed by, xix financial transaction system, 275–76 Finland, 16, 81, 122, 126, 292, 296, 331, 343 growth in, 296–97 growth rate of, 75, 76, 234–35 fire departments, 41 firms, 138, 186–87, 245, 248 fiscal balance: and cutting spending, 196–98 tax revenue and, 190–96 Fiscal Compact, 141, 357 fiscal consolidation, 310 fiscal deficits, see deficits, fiscal fiscal policy, 148, 245, 264 in center of macro-stabilization, 251 countercyclical, 244 in EU, 8 expansionary, 254–55 stabilization of, 250–52 fiscal prudence, 15 fiscal responsibility, 163 flexibility, 262–63, 269 flexible euro, 30–31, 272, 296–305, 307 cooperation needed for, 304–5 food prices, 169 forbearance, 130–31 forecasts, 307 foreclosure proposal, 180 foreign ownership, privatization and, 195 forestry, 81 France, 6, 14, 16, 114, 120, 141, 181–82, 331, 339–40, 343 banks of, 202, 203, 231, 373 corporate income tax in, 189–90 euro creation regretted in, 340 European Constitution referendum of, 58 extreme right in, xi growth in, 247 Freddie Mac, 91 Freefall (Stiglitz), 264, 335 free mobility of labor, xiv, 26, 40, 125, 134–36, 142–44, 242 Friedman, Milton, 151, 152–53, 167, 339 full employment, 94–97, 379 G-20, 121 gas: import of, 230 from Russia, 37, 81, 93 Gates Foundation, 276 GDP-indexed bonds, 267 German bonds, 114, 323 German Council of Economic Experts, 179, 365 Germany, xxi, 14, 30, 65, 108, 114, 141, 181–82, 207, 220, 286, 307, 331, 343, 346, 374 austerity pushed by, 186, 232 banks of, 202, 203, 231–32, 373 costs to taxpayers of, 184 as creditor, 140, 187, 267 debt collection by, 117 debt in, 105 and debt restructuring, 205, 311 in departure from eurozone, 32, 292–93 as dependent on Russian gas, 37 desire to leave eurozone, 314 ECB criticized by, 164 EU economic practices controlled by, 17 euro creation regretted in, 340 exchange rate of, 254–55, 351 failure of, 13, 78–79 flexible exchange of, 304 GDP of, xviii, 92 in Great Depression, 187 growing poverty in, 79 growth of, 78, 106, 247 hours worked per worker in, 72 inequality in, 79, 333 inflation in, 42, 338, 358 internal solidarity of, 334 lack of alternative to euro seen by, 11 migrants to, 320–21, 334–35, 393 minimum wage in, 42, 120, 254 neoliberalism in, 10 and place-based debt, 136 productivity in, 71 programs designed by, 53, 60, 61, 202, 336, 338 reparations paid by, 187 reunification of, 6 rules as important to, 57, 241–42, 262 share of global employment in, 224 shrinking working-age population of, 70, 78–79 and Stability and Growth Pact, 245 and structural reforms, 19–20 “there is no alternative” and, 306, 311–12 trade surplus of, 117, 118–19, 120, 139, 253, 293, 299, 350–52, 381–82, 391 “transfer union” rejected by, 22 US loans to, 187 victims blamed by, 9, 15–17, 177–78, 309 wages constrained by, 41, 42–43 wages lowered in, 105, 333 global financial crisis, xi, xiii–xiv, 3, 12, 17, 24, 67, 73, 75, 114, 124, 146, 148, 274, 364, 387 and central bank independence, 157–58 and confidence, 280 and cost of failure of financial institutions, 131 lessons of, 249 monetary policy in, 151 and need for structural reform, 214 originating in US, 65, 68, 79–80, 112, 128, 296, 302 globalization, 51, 321–23 and diminishing share of employment in advanced countries, 224 economic vs. political, xvii failures of, xvii Globalization and Its Discontents (Stig-litz), 234, 335, 369 global savings glut, 257 global secular stagnation, 120 global warming, 229–30, 251, 282, 319 gold, 257, 275, 277, 345 Goldman Sachs, 158, 366 gold standard, 148, 291, 347, 358 in Great Depression, xii, 100 goods: free movement of, 40, 143, 260–61 nontraded, 102, 103, 169, 213, 217, 359 traded, 102, 103, 216 Gordon, Robert, 251 governance, 157–63, 258–59 government spending, trade deficits and, 107–8 gravity principle, 124, 127–28 Great Depression, 42, 67, 105, 148, 149, 168, 313 Friedman on causes of, 151 gold standard in, xii, 100 Great Malaise, 264 Greece, 14, 30, 41, 64, 81, 100, 117, 123, 142, 160, 177, 265–66, 278, 307, 331, 343, 366, 367–68, 374–75, 386 austerity opposed by, 59, 60–62, 69–70, 207–8, 392 balance of payments, 219 banks in, 200–201, 228–29, 231, 270, 276, 367, 368 blaming of, 16, 17 bread in, 218, 230 capital controls in, 390 consumption tax and, 193–94 counterfactual scenario of, 80 current account surplus of, 287–88 and debt restructuring, 205–7 debt-to-GDP ratio of, 231 debt write-offs in, 291 decline in labor costs in, 56, 103 ECB’s cutting of funds to, 59 economic growth in, 215, 247 emigration from, 68–69 fiscal deficits in, 16, 186, 215, 233, 285–86, 289 GDP of, xviii, 183, 309 hours worked per worker in, 72 inequality in, 72 inherited debt in, 134 lack of faith in democracy in, 312–13 living standards in, 216 loans in, 127 loans to, 310 migrants and, 320–21 milk in, 218, 223, 230 new currency in, 291, 300 oligarchs in, 16, 227 output per working-age person in, 70–71 past downturns in, 235–36 pensions in, 16, 78, 188, 197–98, 226 pharmacies in, 218–20 population decline in, 69, 89 possible exit from eurozone of, 124, 197, 273, 274, 275 poverty in, 226, 261, 376 primary surplus of, 187–88, 312 privatization in, 55, 195–96 productivity in, 71, 342 programs imposed on, xv, 21, 27, 60–62, 140, 155–56, 179–80, 181, 182–83, 184–85, 187–88, 190–93, 195–96, 197–98, 202–3, 205, 206, 214–16, 218–23, 225–28, 229, 230, 231, 233–34, 273, 278, 308, 309–11, 312, 315–16, 336, 338 renewable energy in, 193, 229 social capital destroyed in, 78 sovereign spread of, 200 spread in, 332 and structural reforms, 20, 70, 188, 191 tax revenue in, 16, 142, 192, 227, 367–368 tools lacking for recovery of, 246 tourism in, 192, 286 trade deficits in, 81, 194, 216–17, 222, 285–86 unemployment in, xi, 71, 236, 267, 332, 338, 342 urgency in, 214–15 victim-blaming of, 309–11 wages in, 216–17 youth unemployment in, xi, 332 Greek bonds, 116, 126 interest rates on, 4, 114, 181–82, 201–2, 323 restructuring of, 206–7 green investments, 260 Greenspan, Alan, 251, 359, 363 Grexit, see Greece, possible exit from eurozone of grocery stores, 219 gross domestic product (GDP), xvii decline in, 3 measurement of, 341 Growth and Stability Pact, 87 hedge funds, 282, 363 highways, 41 Hitler, Adolf, 338, 358 Hochtief, 367–68 Hoover, Herbert, 18, 95 human capital, 78, 137 human rights, 44–45, 319 Hungary, 46, 331, 338 hysteresis, 270 Iceland, 44, 111, 307, 354–55 banks in, 91 capital controls in, 390 ideology, 308–9, 315–18 imports, 86, 88, 97–99, 98, 107 incentives, 158–59 inclusive capitalism, 317 income, unemployment and, 77 income tax, 45 Independent Commission for the Reform of International Corporate Taxation, 376–377 Indonesia, 113, 230–31, 314, 350, 364, 378 industrial policies, 138–39, 301 and restructuring, 217, 221, 223–25 Industrial Revolution, 3, 224 industry, 89 inequality, 45, 72–73, 333 aggregate demand lowered by, 212 created by central banks, 154 ECB’s creation of, 154–55 economic performance affected by, xvii euro’s increasing of, xviii growth’s lowering of, 212 hurt by collective action, 338 increased by neoliberalism, xviii increase in, 64, 154–55 inequality in, 72, 212 as moral issue, xviii in Spain, 72, 212, 225–26 and tax harmonization, 260–61 and tax system, 191 inflation, 277, 290, 314, 388 in aftermath of tech bubble, 251 bonds and, 161 central banks and, 153, 166–67 consequences of fixation on, 149–50, 151 costs of, 270 and debt monetization, 42 ECB and, 8, 25, 97, 106, 115, 145, 146–50, 151, 163, 165, 169–70, 172, 255, 256, 266 and food prices, 169 in Germany, 42, 338, 358 interest rates and, 43–44 in late 1970s, 168 and natural rate hypothesis, 172–73 political decisions and, 146 inflation targeting, 157, 168–70, 364 information, 335 informational capital, 77 infrastructure, xvi–xvii, 47, 137, 186, 211, 255, 258, 265, 268, 300 inheritance tax, 368 inherited debt, 134 innovation, 138 innovation economy, 317–18 inputs, 217 instability, xix institutions, 93, 247 poorly designed, 163–64 insurance, 355–356 deposit, see deposit insurance mutual, 247 unemployment, 91, 186, 246, 247–48 integration, 322 interest rates, 43–44, 86, 282, 345, 354 in aftermath of tech bubble, 251 ECB’s determination of, 85–86, 152, 249, 302, 348 and employment, 94 euro’s lowering of, 235 Fed’s lowering of, 150 on German bonds, 114 on Greek bonds, 4, 114, 181–82 on Italian bonds, 114 in late 1970s, 168 long-term, 151, 200 negative, 316, 348–49 quantitative easing and, 151, 170 short-term, 249 single, eurozone’s entailing of, 8, 85–88, 92, 93, 94, 105, 129, 152, 240, 244, 249 on Spanish bonds, 114, 199 spread in, 332 stock prices increased by, 264 at zero lower bound, 106 intermediation, 258 internal devaluation, 98–109, 122, 126, 220, 255, 388 supply-side effects of, 99, 103–4 International Commission on the Measurement of Economic Performance and Social Progress, 79, 341 International Labor Organization, 56 International Monetary Fund (IMF), xv, xvii, 10, 17, 18, 55, 61, 65–66, 96, 111, 112–13, 115–16, 119, 154, 234, 289, 309, 316, 337, 349, 350, 370, 371, 381 and Argentine debt, 206 conditions of, 201 creation of, 105 danger of high taxation warnings of, 190 debt reduction pushed by, 95 and debt restructuring, 205, 311 and failure to restore credit, 201 global imbalances discussed by, 252 and Greek debts, 205, 206, 310–11 on Greek surplus, 188 and Indonesian crisis, 230–31, 364 on inequality’s lowering of growth, 212–13 Ireland’s socialization of losses opposed by, 156–57 mistakes admitted by, 262, 312 on New Mediocre, 264 Portuguese bailout of, 178–79 tax measures of, 185 investment, 76–77, 111, 189, 217, 251, 264, 278, 367 confidence and, 94 divergence in, 136–38 in education, 137, 186, 211, 217, 251, 255, 300 infrastructure in, xvi–xvii, 47, 137, 186, 211, 255, 258, 265, 268, 300 lowered by disintermediation, 258 public, 99 real estate, 199 in renewable energy, 229–30 return on, 186, 245 stimulation of, 94 in technology, 137, 138–39, 186, 211, 217, 251, 258, 265, 300 investor state dispute settlement (ISDS), 393–94 invisible hand, xviii Iraq, refugees from, 320 Iraq War, 36, 37 Ireland, 14, 16, 44, 113, 114–15, 122, 178, 234, 296, 312, 331, 339–40, 343, 362 austerity opposed in, 207 debt of, 196 emigrants from, 68–69 GDP of, 18, 231 growth in, 64, 231, 247, 340 inherited debt in, 134 losses socialized in, 134, 156–57, 165 low debt in, 88 real estate bubble in, 108, 114–15, 126 surplus in, 17, 88 taxes in, 142–43, 376 trade deficits in, 119 unemployment in, 178 irrational exuberance, 14, 114, 116–17, 149, 334, 359 ISIS, 319 Italian bonds, 114, 165, 323 Italy, 6, 14, 16, 120, 125, 331, 343 austerity opposed in, 59 GDP per capita in, 352 growth in, 247 sovereign spread of, 200 Japan, 151, 333, 342 bubble in, 359 debt of, 202 growth in, 78 quantitative easing used by, 151, 359 shrinking working-age population of, 70 Java, unemployment on, 230 jobs gap, 120 Juncker, Jean-Claude, 228 Keynes, John Maynard, 118, 120, 172, 187, 351 convergence policy suggested by, 254 Keynesian economics, 64, 95, 108, 153, 253 King, Mervyn, 390 knowledge, 137, 138–39, 337–38 Kohl, Helmut, 6–7, 337 krona, 287 labor, marginal product of, 356 labor laws, 75 labor markets, 9, 74 friction in, 336 reforms of, 214, 221 labor movement, 26, 40, 125, 134–36, 320 austerity and, 140 capital flows and, 135 see also migration labor rights, 56 Lamers, Karl, 314 Lancaster, Kelvin, 27 land tax, 191 Latin America, 10, 55, 95, 112, 202 lost decade in, 168 Latvia, 331, 346 GDP of, 92 law of diminishing returns, 40 learning by doing, 77 Lehman Brothers, 182 lender of last resort, 85, 362, 368 lending, 280, 380 discriminatory, 283 predatory, 274, 310 lending rates, 278 leverage, 102 Lichtenstein, 44 Lipsey, Richard, 27 liquidity, 201, 264, 278, 354 ECB’s expansion of, 256 lira, 14 Lithuania, 331 living standards, 68–70 loans: contraction of, 126–27, 246 nonperforming, 241 for small and medium-size businesses, 246–47 lobbyists, from financial sector, 132 location, 76 London interbank lending rate (LIBOR), 131, 355 Long-Term Refinancing Operation, 360–361 Lucas, Robert, xi Luxembourg, 6, 94, 142–43, 331, 343 as tax avoidance center, 228, 261 luxury cars, 265 Maastricht Treaty, xiii, 6, 87, 115, 146, 244, 298, 339, 340 macro-prudential regulations, 249 Malta, 331, 340 manufacturing, 89, 223–24 market failures, 48–49, 86, 148, 149, 335 rigidities, 101 tax policy’s correction of, 193 market fundamentalism, see neoliberalism market irrationality, 110, 125–26, 149 markets, limitations of, 10 Meade, James, 27 Medicaid, 91 medical care, 196 Medicare, 90, 91 Mellon, Andrew, 95 Memorandum of Agreement, 233–34 Merkel, Angela, 186 Mexico, 202, 369 bailout of, 113 in NAFTA, xiv Middle East, 321 migrant crisis, 44 migration, 26, 40, 68–69, 90, 125, 320–21, 334–35, 342, 356, 393 unemployment and, 69, 90, 135, 140 see also labor movement military power, 36–37 milk, 218, 223, 230 minimum wage, 42, 120, 254, 255, 351 mining, 257 Mississippi, GDP of, 92 Mitsotakis, Constantine, 377–78 Mitsotakis, Kyriakos, 377–78 Mitterrand, François, 6–7 monetarism, 167–68, 169, 364 monetary policy, 24, 85–86, 148, 264, 325, 345, 364 as allegedly technocratic, 146, 161–62 conservative theory of, 151, 153 in early 1980s US, 168, 210 flexibility of, 244 in global financial crisis, 151 political nature of, 146, 153–54 recent developments in theory of, 166–73 see also interest rates monetary union, see single currencies money laundering, 354 monopolists, privatization and, 194 moral hazard, 202, 203 mortgage rates, 170 mortgages, 302 multinational chains, 219 multinational development banks, 137 multinationals, 127, 223, 376 multipliers, 211–12, 248 balanced-budget, 188–90, 265 Mundell, Robert, 87 mutual insurance, 247 mutualization of debt, 242–43, 263 national development banks, 137–38 natural monopolies, 55 natural rate hypothesis, 172 negative shocks, 248 neoliberalism, xvi, 24–26, 33, 34, 98–99, 109, 257, 265, 332–33, 335, 354 on bubbles, 381 and capital flows, 28 and central bank independence, 162–63 in Germany, 10 inequality increased by, xviii low inflation desired by, 147 recent scholarship against, 24 Netherlands, 6, 44, 292, 331, 339–40, 343 European Constitution referendum of, 58 New Democracy Party, Greek, 61, 185, 377–78 New Mediocre, 264 New World, 148 New Zealand, 364 Nokia, 81, 234, 297 nonaccelerating inflation rate of unemployment (NAIRU), 379–80 nonaccelerating wage rate of unemployment (NAWRU), 379–80 nongovernmental organizations (NGOs), 276 nonperforming loans, 241 nontraded goods sector, 102, 103, 169, 213, 217, 359 North American Free Trade Agreement (NAFTA), xiv North Atlantic Treaty Organization (NATO), 196 Norway, 12, 44, 307 referendum on joining EU, 58 nuclear deterrence, 38 Obama, Barack, 319 oil, import of, 230 oil firms, 36 oil prices, 89, 168, 259, 359 oligarchs: in Greece, 16, 227 in Russia, 280 optimal currency area, 345 output, 70–71, 111 after recessions, 76 Outright Monetary Transactions program, 361 overregulate, 132 Oxfam, 72 panic of 1907, 147 Papandreou, Andreas, 366 Papandreou, George, xiv, 60–61, 184, 185, 220, 221, 226–27, 309, 312, 366, 373 reform of banks suggested by, 229 paradox of thrift, 120 peace, 34 pensions, 9, 16, 78, 177, 188, 197–98, 226, 276, 370 People’s Party, Portugal, 392 periphery, 14, 32, 171, 200, 296, 301, 318 see also specific countries peseta, 14 pharmacies, 218–20 Phishing for Phools (Akerlof and Shiller), 132 physical capital, 77–78 Pinochet, Augusto, 152–53 place-based debt, 134, 242 Pleios, George, 377 Poland, 46, 333, 339 assistance to, 243 in Iraq War, 37 police, 41 political integration, xvi, 34, 35 economic integration vs., 51–57 politics, economics and, 308–18 pollution, 260 populism, xx Portugal, 14, 16, 64, 177, 178, 331, 343, 346 austerity opposed by, 59, 207–8, 315, 332, 392 GDP of, 92 IMF bailout of, 178–79 loans in, 127 poverty in, 261 sovereign spread of, 200 Portuguese bonds, 179 POSCO, 55 pound, 287, 335, 346 poverty, 72 in Greece, 226, 261 in Portugal, 261 in Spain, 261 predatory lending, 274, 310 present discount value, 343 Price of Inequality, The (Stiglitz), 154 prices, 19, 24 adjustment of, 48, 338, 361 price stability, 161 primary deficit, 188, 389 primary surpluses, 187–88 private austerity, 126–27, 241–42 private sector involvement, 113 privatization, 55, 194–96, 369 production costs, 39, 43, 50 production function, 343 productivity, 71, 332, 348 in manufacturing, 223–24 after recessions, 76–77 programs, 17–18 Germany’s design of, 53, 60, 61, 187–88, 205, 336, 338 imposed on Greece, xv, 21, 27, 60–62, 140, 155–56, 179–80, 181, 182–83, 184–85, 187–88, 190–93, 195–96, 197–98, 202–3, 205, 206, 214–16, 218–23, 225–28, 229, 230, 231, 233–34, 273, 278, 308, 309–11, 312, 315–16, 336, 338 of Troika, 17–18, 21, 155–57, 179–80, 181, 182–83, 184–85, 187–93, 196, 202, 205, 207, 208, 214–16, 217, 218–23, 225–28, 229, 231, 233–34, 273, 278, 308, 309–11, 312, 313, 314, 315–16, 323–24, 346, 366, 379, 392 progressive automatic stabilizers, 244 progressive taxes, 248 property rights, 24 property taxes, 192–93, 227 public entities, 195 public goods, 40, 337–38 quantitative easing (QE), 151, 164, 165–66, 170–72, 264, 359, 361, 386 railroads, 55 Reagan, Ronald, 168, 209 real estate bubble, 25, 108, 109, 111, 114–15, 126, 148, 172, 250, 301, 302 cause of, 198 real estate investment, 199 real exchange rate, 105–6, 215–16 recessions, recovery from, 94–95 recovery, 76 reform, 75 theories of, 27–28 regulations, 24, 149, 152, 162, 250, 354, 355–356, 378 and Bush administration, 250–51 common, 241 corporate opposition to, xvi difficulties in, 132–33 of finance, xix forbearance on, 130–31 importance of, 152–53 macro-prudential, 249 in race to bottom, 131–34 Reinhardt, Carmen, 210 renewable energy, 193, 229–30 Republican Party, US, 319 research and development (R&D), 77, 138, 217, 251, 317–18 Ricardo, David, 40, 41 risk, 104, 153, 285 excessive, 250 risk markets, 27 Rogoff, Kenneth, 210 Romania, 46, 331, 338 Royal Bank of Scotland, 355 rules, 57, 241–42, 262, 296 Russia, 36, 264, 296 containment of, 318 economic rents in, 280 gas from, 37, 81, 93, 378 safety nets, 99, 141, 223 Samaras, Antonis, 61, 309, 377 savings, 120 global, 257 savings and loan crisis, 360 Schäuble, Wolfgang, 57, 220, 314, 317 Schengen area, 44 schools, 41, 196 Schröeder, Gerhard, 254 self-regulation, 131, 159 service sector, 224 shadow banking system, 133 shareholder capitalism, 21 Shiller, Rob, 132, 359 shipping taxes, 227, 228 short-termism, 77, 258–59 Silicon Valley, 224 silver, 275, 277 single currencies: conflicts and, 38 as entailing fixed exchange rates, 8, 42–43, 46–47, 86–87, 92, 93, 94, 97–98 external imbalances and, 97–98 and financial crises, 110–18 integration and, 45–46, 50 interest rates and, 8, 86, 87–88, 92, 93, 94 Mundell’s work on, 87 requirements for, 5, 52–53, 88–89, 92–94, 97–98 and similarities among countries, 15 trade integration vs., 393 in US, 35, 36, 88, 89–92 see also euro single-market principle, 125–26, 231 skilled workers, 134–35 skills, 77 Slovakia, 331 Slovenia, 331 small and medium-sized enterprises (SMEs), 127, 138, 171, 229 small and medium-size lending facility, 246–47, 300, 301, 382 Small Business Administration, 246 small businesses, 153 Smith, Adam, xviii, 24, 39–40, 41 social cohesion, 22 Social Democratic Party, Portugal, 392 social program, 196 Social Security, 90, 91 social solidarity, xix societal capital, 77–78 solar energy, 193, 229 solidarity fund, 373 solidarity fund for stabilization, 244, 254, 264, 301 Soros, George, 390 South Dakota, 90, 346 South Korea, 55 bailout of, 113 sovereign risk, 14, 353 sovereign spreads, 200 sovereign wealth funds, 258 Soviet Union, 10 Spain, 14, 16, 114, 177, 178, 278, 331, 335, 343 austerity opposed by, 59, 207–8, 315 bank bailout of, 179, 199–200, 206 banks in, 23, 186, 199, 200, 242, 270, 354 debt of, 196 debt-to-GDP ratio of, 231 deficits of, 109 economic growth in, 215, 231, 247 gold supply in, 277 independence movement in, xi inequality in, 72, 212, 225–26 inherited debt in, 134 labor reforms proposed for, 155 loans in, 127 low debt in, 87 poverty in, 261 real estate bubble in, 25, 108, 109, 114–15, 126, 198, 301, 302 regional independence demanded in, 307 renewable energy in, 229 sovereign spread of, 200 spread in, 332 structural reform in, 70 surplus in, 17, 88 threat of breakup of, 270 trade deficits in, 81, 119 unemployment in, 63, 161, 231, 235, 332, 338 Spanish bonds, 114, 199, 200 spending, cutting, 196–98 spread, 332 stability, 147, 172, 261, 301, 364 automatic, 244 bubble and, 264 central banks and, 8 as collective action problem, 246 solidarity fund for, 54, 244, 264 Stability and Growth Pact, 245 standard models, 211–13 state development banks, 138 steel companies, 55 stock market, 151 stock market bubble, 200–201 stock market crash (1929), 18, 95 stock options, 259, 359 structural deficit, 245 Structural Funds, 243 structural impediments, 215 structural realignment, 252–56 structural reforms, 9, 18, 19–20, 26–27, 214–36, 239–71, 307 from austerity to growth, 263–65 banking union, 241–44 and climate change, 229–30 common framework for stability, 244–52 counterproductive, 222–23 debt restructuring and, 265–67 of finance, 228–29 full employment and growth, 256–57 in Greece, 20, 70, 188, 191, 214–36 growth and, 232–35 shared prosperity and, 260–61 and structural realignment, 252–56 of trade deficits, 216–17 trauma of, 224 as trivial, 214–15, 217–20, 233 subsidiarity, 8, 41–42, 263 subsidies: agricultural, 45, 197 energy, 197 sudden stops, 111 Suharto, 314 suicide, 82, 344 Supplemental Nutrition Assistance Program (SNAP), 91 supply-side effects: in Greece, 191, 215–16 of investments, 367 surpluses, fiscal, 17, 96, 312, 379 primary, 187–88 surpluses, trade, see trade surpluses “Swabian housewife,” 186, 245 Sweden, 12, 46, 307, 313, 331, 335, 339 euro referendum of, 58 refugees into, 320 Switzerland, 44, 307 Syria, 321, 342 Syriza party, 309, 311, 312–13, 315, 377 Taiwan, 55 tariffs, 40 tax avoiders, 74, 142–43, 227–28, 261 taxes, 142, 290, 315 in Canada, 191 on capital, 356 on carbon, 230, 260, 265, 368 consumption, 193–94 corporate, 189–90, 227, 251 cross-border, 319, 384 and distortions, 191 in EU, 8, 261 and fiat currency, 284 and free mobility of goods and capital, 260–61 in Greece, 16, 142, 192, 193–94, 227, 367–68 ideal system for, 191 IMF’s warning about high, 190 income, 45 increase in, 190–94 inequality and, 191 inheritance, 368 land, 191 on luxury cars, 265 progressive, 248 property, 192–93, 227 Reagan cuts to, 168, 210 shipping, 227, 228 as stimulative, 368 on trade surpluses, 254 value-added, 190, 192 tax evasion, in Greece, 190–91 tax laws, 75 tax revenue, 190–96 Taylor, John, 169 Taylor rule, 169 tech bubble, 250 technology, 137, 138–39, 186, 211, 217, 251, 258, 265, 300 and new financial system, 274–76, 283–84 telecoms, 55 Telmex, 369 terrorism, 319 Thailand, 113 theory of the second best, 27–28, 48 “there is no alternative” (TINA), 306, 311–12 Tocqueville, Alexis de, xiii too-big-to-fail banks, 360 tourism, 192, 286 trade: and contractionary expansion, 209 US push for, 323 trade agreements, xiv–xvi, 357 trade balance, 81, 93, 100, 109 as allegedly self-correcting, 98–99, 101–3 and wage flexibility, 104–5 trade barriers, 40 trade deficits, 89, 139 aggregate demand weakened by, 111 chit solution to, 287–88, 290, 299–300, 387, 388–89 control of, 109–10, 122 with currency pegs, 110 and fixed exchange rates, 107–8, 118 and government spending, 107–8, 108 of Greece, 81, 194, 215–16, 222, 285–86 structural reform of, 216–17 traded goods, 102, 103, 216 trade integration, 393 trade surpluses, 88, 118–21, 139–40, 350–52 discouragement of, 282–84, 299–300 of Germany, 118–19, 120, 139, 253, 293, 299, 350–52, 381–82, 391 tax on, 254, 351, 381–82 Transatlantic Trade and Investment Partnership, xv, 323 transfer price system, 376 Trans-Pacific Partnership, xv, 323 Treasury bills, US, 204 Trichet, Jean-Claude, 100–101, 155, 156, 164–65, 251 trickle-down economics, 362 Troika, 19, 20, 26, 55, 56, 58, 60, 69, 99, 101–3, 117, 119, 135, 140–42, 178, 179, 184, 195, 274, 294, 317, 362, 370–71, 373, 376, 377, 386 banks weakened by, 229 conditions of, 201 discretion of, 262 failure to learn, 312 Greek incomes lowered by, 80 Greek loan set up by, 202 inequality created by, 225–26 poor forecasting of, 307 predictions by, 249 primary surpluses and, 187–88 privatization avoided by, 194 programs of, 17–18, 21, 155–57, 179–80, 181, 182–83, 184–85, 187–93, 196, 197–98, 202, 204, 205, 207, 208, 214–16, 217, 218–23, 225–28, 229, 231, 233–34, 273, 278, 308, 309–11, 312, 313, 314, 315–16, 323–24, 348, 366, 379, 392 social contract torn up by, 78 structural reforms imposed by, 214–16, 217, 218–23, 225–38 tax demand of, 192 and tax evasion, 367 see also European Central Bank (ECB); European Commission; International Monetary Fund (IMF) trust, xix, 280 Tsipras, Alexis, 61–62, 221, 273, 314 Turkey, 321 UBS, 355 Ukraine, 36 unemployment, 3, 64, 68, 71–72, 110, 111, 122, 323, 336, 342 as allegedly self-correcting, 98–101 in Argentina, 267 austerity and, 209 central banks and, 8, 94, 97, 106, 147 ECB and, 163 in eurozone, 71, 135, 163, 177–78, 181, 331 and financing investments, 186 in Finland, 296 and future income, 77 in Greece, xi, 71, 236, 267, 331, 338, 342 increased by capital, 264 interest rates and, 43–44 and internal devaluation, 98–101, 104–6 migration and, 69, 90, 135, 140 natural rate of, 172–73 present-day, in Europe, 210 and rise of Hitler, 338, 358 and single currency, 88 in Spain, 63, 161, 231, 235, 332, 338 and structural reforms, 19 and trade deficits, 108 in US, 3 youth, 3, 64, 71 unemployment insurance, 91, 186, 246, 247–48 UNICEF, 72–73 unions, 101, 254, 335 United Kingdom, 14, 44, 46, 131, 307, 331, 332, 340 colonies of, 36 debt of, 202 inflation target set in, 157 in Iraq War, 37 light regulations in, 131 proposed exit from EU by, 4, 270 United Nations, 337, 350, 384–85 creation of, 38 and lower rates of war, 196 United States: banking system in, 91 budget of, 8, 45 and Canada’s 1990 expansion, 209 Canada’s free trade with, 45–46, 47 central bank governance in, 161 debt-to-GDP of, 202, 210–11 financial crisis originating in, 65, 68, 79–80, 128, 296, 302 financial system in, 228 founding of, 319 GDP of, xiii Germany’s borrowing from, 187 growing working-age population of, 70 growth in, 68 housing bubble in, 108 immigration into, 320 migration in, 90, 136, 346 monetary policy in financial crisis of, 151 in NAFTA, xiv 1980–1981 recessions in, 76 predatory lending in, 310 productivity in, 71 recovery of, xiii, 12 rising inequality in, xvii, 333 shareholder capitalism of, 21 Small Business Administration in, 246 structural reforms needed in, 20 surpluses in, 96, 187 trade agenda of, 323 unemployment in, 3, 178 united currency in, 35, 36, 88, 89–92 United States bonds, 350 unskilled workers, 134–35 value-added tax, 190, 192 values, 57–58 Varoufakis, Yanis, 61, 221, 309 velocity of circulation, 167 Venezuela, 371 Versaille, Treaty of, 187 victim blaming, 9, 15–17, 177–78, 309–11 volatility: and capital market integration, 28 in exchange rates, 48–49 Volcker, Paul, 157, 168 wage adjustments, 100–101, 103, 104–5, 155, 216–17, 220–22, 338, 361 wages, 19, 348 expansionary policies on, 284–85 Germany’s constraining of, 41, 42–43 lowered in Germany, 105, 333 wage stagnation, in Germany, 13 war, change in attitude to, 38, 196 Washington Consensus, xvi Washington Mutual, 91 wealth, divergence in, 139–40 Weil, Jonathan, 360 welfare, 196 West Germany, 6 Whitney, Meredith, 360 wind energy, 193, 229 Wolf, Martin, 385 worker protection, 56 workers’ bargaining rights, 19, 221, 255 World Bank, xv, xvii, 10, 61, 337, 357, 371 World Trade Organization, xiv youth: future of, xx–xxi unemployment of, 3, 64, 71 Zapatero, José Luis Rodríguez, xiv, 155, 362 zero lower bound, 106 ALSO BY JOSEPH E.
affirmative action, Asian financial crisis, bank run, banking crisis, bilateral investment treaty, borderless world, Bretton Woods, British Empire, capital controls, Carmen Reinhart, central bank independence, collective bargaining, colonial rule, Corn Laws, corporate governance, corporate social responsibility, credit crunch, Credit Default Swap, currency manipulation / currency intervention, David Ricardo: comparative advantage, deindustrialization, Deng Xiaoping, Doha Development Round, en.wikipedia.org, endogenous growth, eurozone crisis, financial deregulation, financial innovation, floating exchange rates, frictionless, frictionless market, full employment, George Akerlof, guest worker program, Hernando de Soto, immigration reform, income inequality, income per capita, industrial cluster, information asymmetry, joint-stock company, Kenneth Rogoff, labour market flexibility, labour mobility, land reform, liberal capitalism, light touch regulation, Long Term Capital Management, low skilled workers, margin call, market bubble, market fundamentalism, Martin Wolf, mass immigration, Mexican peso crisis / tequila crisis, microcredit, Monroe Doctrine, moral hazard, night-watchman state, non-tariff barriers, offshore financial centre, oil shock, open borders, open economy, Paul Samuelson, price stability, profit maximization, race to the bottom, regulatory arbitrage, savings glut, Silicon Valley, special drawing rights, special economic zone, The Wealth of Nations by Adam Smith, Thomas L Friedman, Tobin tax, too big to fail, trade liberalization, trade route, transaction costs, tulip mania, Washington Consensus, World Values Survey
This presumption contributes to our bias in favor of technical progress because it reduces, if not eliminates altogether, the concern that the playing field was tilted against the loser. Free trade is different. Firms abroad can obtain a competitive advantage not only because they are more productive or labor is more abundant (and hence cheaper), but also because they prevent their workers from engaging in collective bargaining, they have to comply with lower health and safety standards, or they are subsidized by their governments. This is another important way in which differences in institutional arrangements across nations generate opposition and create frictions in international trade. A second difference is that the adverse effects of new technologies hit different groups over time, so that one can plausibly argue that most, if not all people are made better off over the long run.
Every advanced economy has detailed regulations that cover employment practices. These regulations dictate who can work, the minimum wage, the maximum hours of work, the nature of working conditions, what the employer can ask the worker to do, and how easily the worker can be fired. They guarantee the worker’s freedom to form unions to represent his or her interests and set the rules under which collective bargaining can take place over pay and benefits. From a classical liberal standpoint, most of these regulations make little sense. They interfere with an individual’s right to enter into contracts of his or her choosing. If you are willing to work for 70 hours a week below the minimum wage under unsafe conditions and allow the employer to dismiss you at will, why should the state prevent you from accepting such terms?
Minimum wages that are significantly lower than in rich countries can be rationalized in the domestic debate by pointing to lower labor productivity and living standards. Lax child-labor regulations are often justified by the argument that it is not feasible or desirable to withdraw young workers from the labor force in a country with widespread poverty. In other cases, arguments like these carry less weight. Basic labor rights such as non-discrimination, freedom of association, collective bargaining, and prohibition of forced labor do not cost anything. Compliance with these rights does not harm, and indeed possibly benefits, economic development. Gross violations constitute exploitation of labor, and will open the door for safeguards in importing countries on the ground that they generate unfair distributional costs. Generalizing the safeguards agreement in this fashion would have its risks.
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, Bretton Woods, 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, 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, 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
Our preference is for the establishment of a three-day weekend, rather than a reduction in the working day, in order to cut down on commuting and to build upon the long holiday weekends already in existence. This demand can be achieved in a number of ways – through trade union struggles, pressure from social movements, and legislative change by political parties. Trade unions building a strategy for the future, rather than accepting the capitalist demand for jobs at all costs, could use collective bargaining to accept automation in return for a shorter working week. Indeed, the historical record suggests that trade unions are often reactive in the face of technological change, and that wage concessions only delay automation, rather than preventing it.80 An alternative approach that focused on the reduction and diffusion of work could reduce work without leaving workers out on the streets.81 Efforts can also be made to gain recognition for unofficial, unpaid labour as part of the working week, reducing it simply by bringing attention to it.82 A focus on a shorter working week also requires that unions build links with part-time and precarious workers.
We believe many unions will be better served by refocusing towards a post-work society and the liberating aspects of a reduced working week, job sharing and a basic income.55 The West Coast longshoremen in the United States represent one successful example of allowing automation in exchange for guaranteeing higher wages and less job cuts (though they also occupy a key point of leverage in the capitalist infrastructure).56 The Chicago Teachers’ Union offers another example of a union going far beyond collective bargaining, and instead mobilising a broad social movement around the state of education in general. Moreover, shifting in a post-work direction overcomes some of the key impasses between ecological movements and organised labour. The deployment of productivity increases for more free time, rather than increased jobs and output, can bring these groups together. Changing the aims of unions and organising community-wide will help to turn unions away from classic – and now failing – social democratic goals, and will be essential to any successful renewal of the labour movement.
This produces a reduction of the labour supply, as was achieved by the exclusionary unions above, but with an important difference. Rather than relying on excluding particular groups from skilled trades, the tactic of reducing working hours relies on withdrawing a portion of everyone’s labour time.76 For various reasons, though – not least because of the postwar consensus between capital and labour – this tactic fell out of favour, and the labour movement’s attention instead turned towards collective bargaining over pay. As we argued earlier, however, this tactic has the potential to be revived in the effort to transform our socioeconomic system. Another key tactic has been strikes, whose logic is to inflict costs on capital and force its hand in negotiations. But this approach was limited by the fact that unskilled labour could be easily replaced with new (and more docile) scab workers. Strikes also allow employers to use the downtime to bring in new machinery – precisely the changes which workers may be struggling against.
Capitalism 3.0: A Guide to Reclaiming the Commons by Peter Barnes
Albert Einstein, car-free, clean water, collective bargaining, corporate governance, corporate personhood, corporate raider, corporate social responsibility, dark matter, diversified portfolio, en.wikipedia.org, hypertext link, Isaac Newton, James Watt: steam engine, jitney, money market fund, new economy, patent troll, profit maximization, Ronald Coase, telemarketer, The Wealth of Nations by Adam Smith, transaction costs, War on Poverty, Yogi Berra
If we were to analyze the expansion of American birthrights, we’d see a series of waves. The first wave consisted of rights against the state. The second included rights against unequal treatment based on race, nationality, gender, or sexual orientation. The third wave— which, historically speaking, is just beginning—consists of rights not against things, but for things—free public education, collective bargaining for wages, security in old age. They can be thought of as rights necessary for the pursuit of happiness. 104 | A SOLUTION What makes this latest wave of birthrights strengthen community is their universality. If some Americans could enjoy free public education while others couldn’t, the resulting inequities would divide rather than unite us as a nation. The universality of these rights puts everyone in the same boat.
Seuss), 10, 72, 73 General Electric (NBC), 125 General Social Survey, 29–30 George, Henry, 93–94 Glaxo Wellcome, 37 global atmospheric trust, 147–50 globalization, 28, 97 Index government bias towards property owners, 39 corporate dominance of, xv–xvi, 45, 47–48, 155 corporate/commons sector balance via the, 76–78, 162 limits of regulation, 35–39, 58, 59 and pollution rights, 39–42, 60–61 role in protecing the commons, x, 33–34, 47, 152–53 Grassley, Chuck, 37 Great Britain, 16–17, 109, 114, 118, 119 Great Plains, 142 “green taxes,” 39 groundwater trusts, 138 H Haggin, James, 18–19 Hammond, Jay, 46 happiness and community, 101 and property, 110 and surplus capitalism, 29–31, 65 as universal birthright, 103, 164 Hardin, Garrett, x, 7–8, 33, 49, 169n7 Hawken, Paul, 55 health care as birthright, xv, 104, 112–15, 157, 164 management of, 109, 153 pharmaceutical lobbyists, 36–37 universal health insurance, 113–15 Hickel, Walter, 19 Homestead Act of 1862, 18 Hurwitz, Charles, 53 I illth and the commons, 9–10, 19–20, 45 definition, 9 need to address, 12 and pollution rights, 58–59 and valve keepers, 88, 163 | 189 incentives, 13, 95 inclusivity, 6, 75 inequality and birthrights, 103–5 and capitalism, 26–29, 50, 65 and commons trusts, 88 and commons rent, 96–97 in distribution of wealth, 26–29, 105–6, 143–44 in Internet access, 126–28 “influence industry,” 36–38 infrastructure, as joint inheritance, 12, 71 inheritance tax, 110–11 intellectual property, 119 Internal Revenue Service, 112 Internet digital divide, 127 “net neutrality,” 128 as product of publicly funded research, 131 resource guide, 175–76 as social asset, 70–71, 75, 118, 126–28, 157 two-tiered Internet, 128 wi-fi access, 126, 140, 145 World Wide Web, 159 J Jefferson, Thomas, 103, 108, 110, 128–29 John, King of England, 16 joint stock corporation. See corporations K Kelly, Marjorie, 28–29, 80, 81 Kennedy, Robert F., Jr., 59–60 Kyoto Protocol, 148, 149 L labor and the bottom line, 50, 54, 80 collective bargaining, 103 decimation of unions, 47, 157 190 | Land Ordinance of 1785, 18, 44 land trusts, 136–37, 142–43, 147, 175 Lasn, Kalle, 122 lawyers, 160 liquidity of common property, 76 premium, 67–68, 71 live arts, 120–21 lobbyists, 35–39, 162 local food sources, 138–39, 165 local initiatives, 136–40 Locke, John, 16–17, 74, 103, 110, 119 Lorax, The (Seuss), 10, 72, 73 Losing Ground (Murray), 28 M Madison, James, 99, 108 Magna Carta, 16 managers and capitalism, 50, 157 enlightened, 51–54, 65 free market environmentalism, 59 shareholder activism, 56 trusts, 45, 83–84, 163 Marin Agricultural Land Trust (MALT), 85–86, 136 Massachusetts Climate Action Network, 140 Maxxam, 53 MBNA, 36 media companies, 19, 37, 121, 123–26, 145–46 Medicare, 37, 75, 130, 153 Mill, John Stuart, 93, 94 Millennium Ecosystem Assessment, 25 Mining Act of 1872, 43 Mississippi basin, 141–42 Monopoly (game), 8, 102, 106 Monsanto, 36 Morrill Land Grant College Act of 1862, 18, 44 multiple bottom lines, 51–53 municipal wi-fi, 126, 140 Murdoch, Rupert, 125 C A P I TA L I S M 3 . 0 Murray, Charles, 28 Music Performance Trust Fund, 121 N NAFTA (North America Free Trade Agreement), 81 National Science Foundation, 131 National Trust (Great Britain), 84 natural assets, 70 Natural Resources Defense Council, 59 nature and capitalism, 25–26, 50, 65, 80, 81 and the commons sector, 66, 165 corporate disregard of, 54 desperate state of, 3–4, 11, 25 duty to, 79–80 fortification of, 131, 165 as joint inheritance, 12 as part of the commons, 5–6 and pollution taxes, 39–42, 91 powerlessness of, 38–39 See also common property trusts; ecosystems; global atmospheric trust; nonhuman species Nature Conservancy, 73, 84, 143 NBC, 125 negative externalities.
Economics Rules: The Rights and Wrongs of the Dismal Science by Dani Rodrik
airline deregulation, Albert Einstein, bank run, barriers to entry, Bretton Woods, butterfly effect, capital controls, Carmen Reinhart, central bank independence, collective bargaining, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, distributed generation, Donald Davies, Edward Glaeser, endogenous growth, Eugene Fama: efficient market hypothesis, Everything should be made as simple as possible, Fellow of the Royal Society, financial deregulation, financial innovation, floating exchange rates, fudge factor, full employment, George Akerlof, Gini coefficient, Growth in a Time of Debt, income inequality, inflation targeting, informal economy, information asymmetry, invisible hand, Jean Tirole, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, labor-force participation, liquidity trap, loss aversion, low skilled workers, market design, market fundamentalism, minimum wage unemployment, oil shock, open economy, Pareto efficiency, Paul Samuelson, price stability, prisoner's dilemma, profit maximization, quantitative easing, randomized controlled trial, rent control, rent-seeking, Richard Thaler, risk/return, Robert Shiller, Robert Shiller, school vouchers, South Sea Bubble, spectrum auction, The Market for Lemons, the scientific method, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, Thomas Malthus, trade liberalization, trade route, ultimatum game, University of East Anglia, unorthodox policies, Vilfredo Pareto, Washington Consensus, white flight
Distinguishing among these alternative explanations is difficult because the neoclassical theory hinges on the mathematical representation of the underlying technology (the “production function”) and the changes therein, which are not directly observable. Ultimately, a theory that cannot be pinned down is not very helpful. A wide variety of alternative theories of distribution exist. Some emphasize explicit bargaining between employers and employees, where the prevalence of trade unions and collective-bargaining rules can shape the sharing of revenues of the enterprise between the two parties. Compensation levels of high income earners such as CEOs seem also to be determined largely by bargaining.3 Other models highlight the role of norms in the spread that is considered acceptable between, say, the CEO’s compensation and the amounts earned by rank-and-file employees. Most economists would acknowledge that workers in the United States and Europe greatly benefited from the more egalitarian social understanding of the 1950s and 1960s.
., 1n Boulding, Kenneth, 11 bounded rationality, 203 Bowles, Samuel, 71n Brazil: antipoverty programs of, 4 globalization and, 166 Bretton Woods Conference (1944), 1–2 Britain, Great, property rights and, 98 bubbles, 152–58 business cycles, 125–37 balanced budgets and, 171 capital flow in, 127 classical economics and, 126–27, 129, 137 inflation in, 126–27, 133, 135, 137 new classical models and, 130–34, 136–37 butterfly effect, 39 California, University of: at Berkeley, 107, 136, 147 at Los Angeles, 139 Cameron, David, 109 capacity utilization rates, 130 capital, neoclassical distribution theory and, 122, 124 capital flow: in business cycles, 127 economic growth and, 17–18, 114, 164–67 globalization and, 164–67 growth diagnostics and, 90 speculation and, 2 capitalism, 118–24, 127, 144, 205, 207 carbon, emissions quotas vs. taxes in reduction of, 188–90, 191–92 Card, David, 57 Carlyle, Thomas, 118 carpooling, 192, 193–94 cartels, 95 Cartwright, Nancy, 20, 22n, 29 cash grants, 4, 55, 105–6 Cassidy, John, 157n Central Bank of India, 154 Chang, Ha-Joon, 11 chaos theory, butterfly effect and, 39 Chicago, University of, 131, 152 Chicago Board of Trade, 55 Chile, antipoverty programs and, 4 China, People’s Republic of, 156, 163, 164 cigarette industry, taxation and, 27–28 Clark, John Bates, 119 “Classical Gold Standard, The: Some Lessons for Today” (Bordo), 127n classical unemployment, 126 climate change, 188–90, 191–92 climate modeling, 38, 40 Cochrane, John, 131 coffee, 179, 185 Colander, David, 85 collective bargaining, 124–25, 143 Colombia, educational vouchers in, 24 colonialism, developmental economics and, 206–7 “Colonial Origins of Comparative Development, The” (Acemoglu, Robinson, and Johnson), 206–7 Columbia University, 2, 108 commitment, in game theory, 33 comparative advantage, 52–55, 58n, 59–60, 139, 170 compensation for risk models, 110 competition, critical assumptions in, 28–29 complementarities, 42 computable general equilibrium (CGE) models, 41 computational models, 38, 41 computers, model complexity and, 38 Comte, Auguste, 81 conditional cash transfer (CCT) programs, 4, 105–6 congestion pricing, 2–3 Constitution, U.S., 187 construction industry, Great Recession and, 156 consumers, consumption, 119, 129, 130, 132, 136, 167 cross-price elasticity in, 180–81 consumer’s utility, 119 contextual truths, 20, 174 contingency, 25, 145, 173–74, 185 contracts, 88, 98, 161, 205 coordination models, 16–17, 42, 200 corn futures, 55 corruption, 87, 89, 91 costs, behavioral economics and, 70 Cotterman, Nancy, xiv Cournot, Antoine-Augustin, 13n Cournot competition, 68 credibility, in game theory, 33 “Credible Worlds, Capacities and Mechanisms” (Sugden), 172n credit rating agencies, 155 credit rationing, 64–65 critical assumptions, 18, 26–29, 94–98, 150–51, 180, 183–84, 202 cross-price elasticity, 180–81 Cuba, 57 currency: appreciation of, 60, 167 depreciation of, 153 economic growth and, 163–64, 167 current account deficits, 153 Curry, Brendan, xv Dahl, Gordon B., 151n Darwin, Charles, 113 Davis, Donald, 108 day care, 71, 190–91 Debreu, Gerard, 49–51 debt, national, 153 decision trees, 89–90, 90 DeLong, Brad, 136 democracy, social sciences and, 205 deposit insurance, 155 depreciation, currency, 153 Depression, Great, 2, 128, 153 deregulation, 143, 155, 158–59, 162, 168 derivatives, 153, 155 deterrence, in game theory, 33 development economics, 75–76, 86–93, 90, 159–67, 169, 201, 202 colonial settlement and, 206–7 institutions and, 98, 161, 202, 205–7 reform fatigue and, 88 diagnostic analysis, 86–93, 90, 97, 110–11 Dijkgraaf, Robbert, xiv “Dirtying White: Why Does Benn Steil’s History of Bretton Woods Distort the Ideas of Harry Dexter White?”
Getting to Yes: Negotiating Agreement Without Giving In by Roger Fisher, Bruce Patton
Principled negotiation can be used by United States diplomats in arms control talks with the Soviet Union, by Wall Street lawyers representing Fortune 500 companies in antitrust cases, and by couples in deciding everything from where to go for vacation to how to divide their 6 property if they get divorced. Anyone can use this method. Every negotiation is different, but the basic elements do not change. Principled negotiation can be used whether there is one issue or several; two parties or many; whether there is a prescribed ritual, as in collective bargaining, or an impromptu free-for-all, as in talking with hijackers. The method applies whether the other side is more experienced or less, a hard bargainer or a friendly one. Principled negotiation is an all-purpose strategy. Unlike almost all other strategies, if the other side learns this one, it does not become more difficult to use; it becomes easier. If they read this book, all the better.
Does the government have standard specifications for these soil conditions? How deep are the foundations of other buildings in this area? What is the earthquake risk here? Where do you suggest we look for standards to resolve this question?" It is no easier to build a good contract than it is to build strong foundations. If relying on objective standards applies so clearly to a negotiation between the house owner and a contractor, why not to business deals, collective bargaining, legal settlements, and international negotiations? Why not insist that a negotiated price, for example, be based on some standard such as market value, replacement cost, depreciated book value, or competitive prices, instead of whatever the seller demands? In short, the approach is to commit yourself to reaching a solution based on principle, not pressure. Concentrate on the merits of the problem, not the mettle of the parties.
Hard Landing by Thomas Petzinger, Thomas Petzinger Jr.
airline deregulation, centralized clearinghouse, collective bargaining, cross-subsidies, desegregation, Donald Trump, feminist movement, index card, low cost carrier, low skilled workers, Marshall McLuhan, means of production, mutually assured destruction, Network effects, offshore financial centre, oil shock, Ponzi scheme, postindustrial economy, price stability, profit motive, Ralph Nader, Ronald Reagan, Silicon Valley, strikebreaker, the medium is the message, The Predators' Ball, Thomas L Friedman, union organizing, yield management, zero-sum game
As one of its biggest shareholders, he simply wanted the company to deploy its workforce in the most efficient manner possible. To help accomplish this Kelleher, wearing his lawyer’s hat, insisted that department heads participate in the contract negotiations involving the employees in their jurisdiction, a practice far from routine in labor relations. More commonly the entire affair of collective bargaining was turned over to lawyers and negotiating specialists. But professional negotiators were principally interested in controlling wages, and wages, so far as Southwest was concerned, were not the main issue. Only the middle managers understood the fine points of a 10-minute airplane turnaround, which was why Kelleher insisted on their presence at the bargaining table. This was labor strife at Southwest Airlines: Kelleher was out for dinner and drinks with a group of pilots.
Lorenzo had been vilified in the union campaign against the creation of New York Air. It was also common knowledge to union people that Lorenzo in his early days at Texas International had taken one of the longest strikes in airline history. Ominously, Lorenzo had filed a legal statement in connection with the proposed takeover saying that if he established control of Continental, “it will be necessary to renegotiate existing collective bargaining agreements.” By this time “renegotiate” was an often-used word in the Lorenzo lexicon—a word whose first five letters made it a cousin of the less dignified “renege.” The employees of Continental were beside themselves at the idea. They had contracts, after all. A group of Continental pilots came up with the ingenious idea of using an employee stock ownership plan, or ESOP, to block Lorenzo.
But what exactly were the consequences? • • • A few months earlier Bakes had been interested to read about an appellate court decision in Philadelphia. A New Jersey building supply company called Bildisco had filed for bankruptcy protection, and in doing so had repudiated its labor contracts along with its financial obligations, as if its work rules and wage rates were accounts payable. The court ruled that if collective bargaining agreements threatened the claims of other creditors, they could, in fact, be unilaterally abrogated—wiped out, kaput, while the company continued about its business. Bakes passed out copies of the case to some of his fellow executives. Bankruptcy. The notion was so … intriguing: a perfectly solvent company, with a valuable franchise and assets of tremendous value, nevertheless using bankruptcy as a way of escaping from wage agreements it no longer wished to honor.
As part of Franklin D. Roosevelt’s Depression-era New Deal, the National Labor Relations Act granted workers the right to form unions and engage in collective bargaining without fear of being fired. In early drafts, the legislation covered everybody, but the final version exempted domestic help and farmworkers from the basic protections provided by the act. In the wording of the bill, the definition of “employee” did not include “any individual employed as an agricultural laborer.” The official reason given was that, in those days, farmers kept at most only one or two hired men and that households had only a few domestic servants, so unions and collective bargaining were not an issue. But in the 1930s, most domestics and farmworkers in this country were African American, and Roosevelt needed the support of southern Democratic legislators to get his New Deal legislation through Congress.
23andMe, Andy Kessler, bank run, barriers to entry, Berlin Wall, Bob Noyce, British Empire, business process, California gold rush, carbon footprint, Cass Sunstein, cloud computing, collateralized debt obligation, collective bargaining, commoditize, computer age, creative destruction, disintermediation, Douglas Engelbart, Eugene Fama: efficient market hypothesis, fiat currency, Firefox, Fractional reserve banking, George Gilder, Gordon Gekko, greed is good, income inequality, invisible hand, James Watt: steam engine, Jeff Bezos, job automation, Joseph Schumpeter, knowledge economy, knowledge worker, libertarian paternalism, low skilled workers, Mark Zuckerberg, McMansion, Netflix Prize, packet switching, personalized medicine, pets.com, prediction markets, pre–internet, profit motive, race to the bottom, Richard Thaler, risk tolerance, risk-adjusted returns, Silicon Valley, six sigma, Skype, social graph, Steve Jobs, The Wealth of Nations by Adam Smith, transcontinental railway, transfer pricing, wealth creators, Yogi Berra
Broadcasters own valuable TV spectrum, and for the longest time there were only three broadcast networks, ABC, CBS, and NBC, with a set of arcane laws protecting their government-mandated franchises. Then the laws were amended to allow for a fourth network, Fox. And this leaks to other markets. Because of high advertising rates, broadcasters overpay for the Super Bowl, the NBA Finals, the World Series, and the Masters. The NFL passes along these fees to owners who, through collective bargaining, are forced to pass them along to players. No one is worth $10 million a year to catch a football like Terrell Owens, or $25 million a year to play shortstop and hit like Derek Jeter. (Yes, they are part of the “vital few,” but vital to our entertainment, not wealth creation!) Because of the exclusivity of media, Heineken (a Super Slopper) pays up and then passes along their advertising costs in the form of higher beer prices.
So often, publicly managed and funded projects can cost two or three times as much to build, and take two or three times as long, as similar projects done by the private sector. California has a prevailing wage law. You would think they call around to private contractors, survey what they are paying workers in the area, and then set an average wage rate. That would make too much sense. Instead, California surveys collective bargaining agreements reached with unions, and then adds up salary and health benefits and paid leaves and disability benefits and sets a prevailing wage that can easily be 50 to 100 percent more than the local private market is paying for workers. No wonder our public works are so shabby! What other political entrepreneurs are robbing us blind? Well, teachers get tenure after three years and the worst of them cruise for the next thirty.
Buying Time: The Delayed Crisis of Democratic Capitalism by Wolfgang Streeck
activist fund / activist shareholder / activist investor, banking crisis, basic income, Bretton Woods, capital controls, Carmen Reinhart, central bank independence, collective bargaining, corporate governance, creative destruction, David Graeber, deindustrialization, Deng Xiaoping, Eugene Fama: efficient market hypothesis, financial deregulation, financial repression, fixed income, full employment, Gini coefficient, Growth in a Time of Debt, income inequality, Joseph Schumpeter, Kenneth Rogoff, knowledge economy, labour market flexibility, labour mobility, late capitalism, liberal capitalism, means of production, moral hazard, Myron Scholes, Occupy movement, open borders, open economy, Plutonomy: Buying Luxury, Explaining Global Imbalances, profit maximization, risk tolerance, shareholder value, too big to fail, union organizing, winner-take-all economy, Wolfgang Streeck
In subsequent years, the capitalist elites and their political allies looked for ways to extricate themselves from the obligations that they had had to incur for the sake of social peace and which, broadly speaking, they had been able to meet during the reconstruction phase. New product strategies to ward off market saturation, a growing labour surplus resulting from changes in the social structure, and not least the internationalization of markets and production systems, gradually opened up ways for firms to shake off the social policies and collective bargaining regimes that after 1968 threatened to subject them to a long-term profit squeeze.38 With time, this turned into an enduring liberalization process that brought about the powerful, wide-scale return of self-regulating markets, not anticipated in any theory and without precedent in the political economy of modern capitalism. Frankfurt crisis theory was not prepared for this: for a state which, to rid itself of social expectations it could no longer satisfy, deregulated and liberalized the capitalism it was supposed to place in the service of society; and for a capitalism which found its politically organized freedom from crises too constrictive.39 Liberalization, as control technology, relief of government from social responsibilities and liberation of capital at the same time, in fact progressed only slowly, especially so long as memories of 1968 remained alive, and was accompanied by numerous political and economic disruptions, until it reached its highest point so far in the present crisis of public finances and the world financial system.
For example, in line with the German model, they must incorporate debt ceilings into their constitution. They must also find ways of adapting their wage formation systems to macroeconomic stability goals defined by the EU, and must for this purpose be prepared to ‘reform’ their national institutions, if necessary against the resistance of their citizens and without regard for either national rights to free collective bargaining or the limits of the jurisdiction of European-level institutions. 3) Equally important are the areas in which the new EU statutes refrain from interfering in the autonomy of member-states. No provisions stipulate a minimum level of taxation, such as would limit fiscal competition within the single market.27 This keeps up the tradition of the European Monetary Union, whose convergence and admission criteria contained nothing about a maximum tolerable level of unemployment or social inequality. 4) EU institutions, whether already existing or still to be built, get ever more far-reaching rights to oversee the economic, social and fiscal policies of member-states, even prospectively and in matters before national parliaments.
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, market fundamentalism, Mont Pelerin Society, mortgage tax deduction, Naomi Klein, new economy, New Urbanism, 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
Making common cause with probusiness Republicans, these segregationist Democrats broke the back of the labor and civil rights Left in the years immediately following the war with a pair of crucial initiatives: The antiÂ�union Taft-Â�Hartley Act of 1947 essentially halted the spread of Â�unions beyond their established territory in Northern industry by encouraging the states to pass “right-Â�to-Â�work” legislation. These laws made the beneÂ�fits of collective bargaining flow equally to those who paid Â�union dues and those who did not, thus giving workers no incentive to join the Â�union. Southern champions of industrial development lost no time in promoting their region’s antiÂ�unionism to lure facilities out of the Northeast. Arkansas, Wal-Â�Mart’s home state, passed one of the first “right-Â�to-Â�work” laws in 1947; by 1954, the entire South had enacted such legislation.11 When it came time to select sites for military bases and war contracts, the conservative conÂ�gresÂ�sional coalition made its power felt as well.
Kruse, White Flight: Atlanta and the Making of Modern Conservatism (Princeton: Princeton University Press, 2006); Matthew D. Lassiter, The Silent Majority: Suburban Politics in the Sunbelt South (Princeton: Princeton University Press, 2006); McGirr, Suburban Warriors. 17. Bethany E. Moreton, “The Soul of the Service Economy: Wal-Mart and the Making of Christian Free Enterprise” (Ph.D. diss., Yale University, 2006), 47–49. 18. Nelson Lichtenstein, “From Corporatism to Collective Bargaining: Organized Labor and the Eclipse of Social Democracy in the Postwar Era,” in The Rise and 289 NOTES TO PAGES 41 – 4 5 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. Fall of the New Deal Order, 1930–1980, ed. Steve Fraser, Gary Gerstle (Princeton: Princeton University Press, 1989), 120.
See Urban issues Civil rights movement, 2, 39, 99, 266, 286n19 Clerks, 27, 51–54, 74-75, 78–79, 84, 136, 160. See also Associates 358 INDEX Clinton, Bill, 34, 46, 201, 204, 248, 252, 254, 257, 261–262, 280n12, 345n29 Clinton, Hillary Rodham, 34, 248, 254 Coca-Cola, 34, 243 Cold War, 2, 10, 37, 39, 164, 169, 171, 176, 193, 196, 218, 220–221, 224–225, 228, 232–233, 238, 238, 240, 242–243, 247, 249–251, 254, 257, 261 Collective bargaining, 39, 104 Colleges/universities, 38, 95, 133, 173–174, 226, 228–229, 232, 270, 319n40; Christian student orÂ�gaÂ�niÂ�zaÂ� tions, 87–88, 97–98; Walton management recruited from, 127, 131–132, 134–137; new technologies at, 138–141, 143; shift to business education, 138, 142, 145–163, 167–172; emphasis on free enterprise, 180–181, 183–184, 186–190, 192; student activism, 195–200, 202–205, 207–212, 217–218; Walton scholars at, 222, 224–225, 230–231, 233–238, 240–247, 251–252; foreign students at, 234–236, 240–243, 245–246.
In the Age of the Smart Machine by Shoshana Zuboff
affirmative action, blue-collar work, collective bargaining, computer age, Computer Numeric Control, conceptual framework, data acquisition, demand response, deskilling, factory automation, Ford paid five dollars a day, fudge factor, future of work, industrial robot, information retrieval, interchangeable parts, job automation, linked data, Marshall McLuhan, means of production, old-boy network, optical character recognition, post-industrial society, RAND corporation, Shoshana Zuboff, social web, The Wealth of Nations by Adam Smith, Thorstein Veblen, union organizing, zero-sum game
These efforts, which came to be known as the "Quality of Work Life" movement, stressed the value of individual participation, cooper- ation, problem solving, and trust, in contrast to collective bargaining's emphasis on the management of conflict, due process, and contractual work practices. This approach questioned the image of the manager as the only one who knows and the one who always knows best. 54 The Quality of Work Life movement resulted in a wide range of innovations of varying degrees of comprehensiveness. In a recent study of unionized industries, labor-relations experts Thomas Kochan, Harry Katz, and Robert McKersie have grouped these reforms into three categories- innovations with a focus limited to the workplace (quality circles in which workers and managers collaborate on ways to improve produc- tion, or improvements in worker-supervisor communication); innova- tions with extensive linkages to traditional collective bargaining issues (pay-for-knowledge systems, self-managing work teams, or increased sharing of business information); and innovations that link work reforms 242 AUTHORITY: THE SPIRITUAL DIMENSION OF POWER to the business strategy (union board representation, profit sharing, or I · I .. ) ss emp oyment securIty po lCles .
In this way managers and workers, fitfully, kept the faith. RECENT CHALLENGES TO MANAGERIAL AUTHORITY These conceptions of the rights and obligations of workers and their managers remained relatively stable throughout the 1950s and 1960s. The trade union movement had significantly improved the economic well-being of the worker and helped to buffer the impact of managerial decision making. Yet the basic thrust of collective bargaining continued to reflect the spirit of New Deal legislation: management manages while workers and their unions protest unsatisfactory managerial deci- sions or attempt to negotiate their impacts. The late 1960s and the 1970s saw the beginning of a new kind of challenge to the old faith in the necessity and legitimacy of manager's exclusive right to command. Fundamental changes in U.S. society had already begun to erode once-reliable class distinctions. 48 When the Lynds wrote their classic ethnography of a typical American city in 1929, they documented the acutely different values and ways of life that separated "business class" and "working class" families.
., 77 Class struggle, 283; see also Social strat- ification Clay-getting, 37 Clerical work, 215-16; computer- mediation of, 129-33; origins of, 98-99, 113-23; see also Office work Closed loop computer system, 253 Coal excavation, 37 Cobb, Jonathan, 239 Codification, 178-85 Cognitive activity: and the abstraction Index of industrial work, 73; in action- centered skills, 73, 75-76, 185-95; in intellective skills, 185-95,216- 17 Cohen, Patricia Cline, 447n 17 Collective activity, 197-200, 204, 206; and learning of crafts, 176-77 Collective bargaining, see Trade union movement; Unions Collective responsibility, 355-61 Commercial schools, Ill, 116, 232 Communication: clerk's role and, 118-19, 125; informal, in computer medium, 362-86; manager's role and, 101-3, 105, 361; organized, 101-2; in posthierarchical organi- zations, 400; shared context as re- quirement for, 196, 204-5; see also Oral culture; Social exchange; Writ- ten word Computer-aided design, 419-22 Computer-aided manufacturing, 419- 22 Computer-aided process planning, 421-22 Computer conferencing, 15-16, 1 79, 363-72 Computer-integrated manufacturing, 421-22 Computer phobia, 259 Computer systems, see Information technology Concentration, 132, 156, 171, 440n6 Confidentiality, 380 Conformity, see Anticipatory confor- mity; Obedience Congressional Office of Technology Assessment, 416, 420 Context-dependent skills, 61, 69, 106; see also Action-centered skills; Ac- tion context Continuous-process production, 20- 22; automation limited in, 59-60; scope of computer applications in, 418-19, 421; skill and effort in, 51- 53; social and psychological issues and, 51-56 Control, sense of, 51, 157; loss of, 62- 70, 132, 344-46; and prospect of Index socially integrated workplace, 404- 12; and visibility in computer me- dium, 344, 346 Control techniques, 313-14; impact of, 31 9-61; intensification of pro- duction and, 33; managerial author- ity maintained by, 313; uses of, 389, 392, 400, 404-5, 452nl0; see also Surveillance Conveyor belt, 47 Convicts and paupers, 225, 320 Corporal punishment, 225 Cost data, 253, 255-67, 372, 424-25 Cottage industries, 31, 227 Counterculture values, 241 Court society, 29-30, III Craft work: automation and, 51, 53- 54, 59; autonomy associated with, 41; deskilling of, 107, 113, 136, 215,283; effort as organized by, 45- 46; executive work as, 99-107; in- dustrialization and, 37-42; shared action necessary for learning, 176- 77; social integration stemming from, 41,50,53-54 Crossman, E.
The Docks by Bill Sharpsteen
affirmative action, anti-communist, big-box store, collective bargaining, Google Earth, intermodal, inventory management, jitney, Just-in-time delivery, new economy, Panamax, place-making, Port of Oakland, post-Panamax, RAND corporation, refrigerator car, strikebreaker, women in the workforce
In 1933, Congress had just passed the National Industrial Recovery Act. This legislation was mostly designed to stimulate the economy, but it also contained new guarantees for trade union rights. Now, by law, workers were allowed to organize and vote in a union to represent them. With that impetus, the ILA was organizing all along the West Coast, trying to establish its own â•¯ â•¯ â•¯ 98â•… /â•… The Union locals with the ability to collectively bargain for higher wages and for work rules that protected the men from the bosses’ capricious behavior. The upheaval was coming. But that kind of overhaul—so extreme the companies fought it as though it threatened their lives—required a leader. And for that, the San Pedro dockworkers would have to look north to San Francisco. â•¯ â•¯ Harry Bridges Because the shipping companies would have had a hard time defending their treatment of the longshoremen, they took other tacks.
Interview by author. January 3, 2007. ———. Keynote address to the ILWU Thirty-third International Convention. July 21, 2006. www.ilwu.org/dispatcher/2006/06/spinosa_conventionkeynote.cfm (accessed August 14, 2006). “Strike of 1971.” Pacific Maritime Association. www.pmanet.org/index.cfm?cmd =main.content&id_content=2142586624 (accessed January 11, 2007). Winter, Jennifer Marie. 30 Years of Collective Bargaining: Joseph Paul St. Sure, Management Labor Negotiator, 1902–1966. Chapter 4: “Toward Mechanization: St. Sure and the PMA, 1952–1959.” Pacific Maritime Archives. www.pmanet .org/?cmd=main.content&id_content=2023238683 (accessed December 31, 2004). â•¯ â•¯ â•¯ Referencesâ•… /â•… 297 12. The Women Bates, Forest, et al. vs. Pacific Maritime Association, et al. U.S. District Court, Central District of California, case no.
The Inequality Puzzle: European and US Leaders Discuss Rising Income Inequality by Roland Berger, David Grusky, Tobias Raffel, Geoffrey Samuels, Chris Wimer
Branko Milanovic, Celtic Tiger, collective bargaining, corporate governance, corporate social responsibility, double entry bookkeeping, equal pay for equal work, fear of failure, financial innovation, full employment, Gini coefficient, hiring and firing, illegal immigration, income inequality, invisible hand, labour market flexibility, labour mobility, Long Term Capital Management, microcredit, offshore financial centre, principal–agent problem, profit maximization, rent-seeking, shareholder value, Silicon Valley, Silicon Valley startup, time value of money, very high income
John Monks is the General Secretary of the European Trade Union Confederation (ETUC), an organization established in 1973 to represent trade unions across Europe. Monks has held this position since 2003, prior to which he served as the General Secretary of the Trades Union Congress, a similarly purposed United Kingdom organization. With the rise of the European Union, Monks has helped make the ETUC the primary organization working for collective bargaining, good working conditions, business-labor dialogue, and worker consultation on business topics. The ETUC works with all EU governing bodies to address these issues. He is a Visiting Professor, Manchester Business School, a member of the Councils of the European Policy Centre, Brussels, and the Centre for European Studies, London, and a Fellow of the City and Guilds of London Institute. ______________________________ R.
For the major part, those who move are forced to move for economic reasons. When the Polish worker goes to Britain, it’s not because he loves to go to Britain, it’s because he needs to go there for higher earnings, to go back home to buy his house, help his wife, his kids. I’m not saying it’s wrong, I’m only saying how do we do it in a better way to ensure we achieve equal pay for equal work and full respect for collective bargaining agreements. What we need in legislation is the so-called equal pay principle, that no matter where you are, you receive adequate wages, have access to social insurance, pensions, and can benefit from high workers’ protection standards. So when Polish workers go to Germany, they are treated according to the German rules and when German workers go to Denmark, they enjoy Danish standards. If you take the northern German slaughterhouses, each Monday morning there’s a bus, or two, or ten, coming with Ukraine workers.
Let them eat junk: how capitalism creates hunger and obesity by Robert Albritton
Bretton Woods, California gold rush, clean water, collective bargaining, computer age, corporate personhood, creative destruction, deindustrialization, Food sovereignty, Haber-Bosch Process, illegal immigration, immigration reform, invisible hand, joint-stock company, joint-stock limited liability company, land reform, late capitalism, means of production, offshore financial centre, oil shale / tar sands, peak oil, price stability, profit maximization, profit motive, South Sea Bubble, the built environment, union organizing, Unsafe at Any Speed, upwardly mobile
Cheap and plentiful oil and natural gas which fuelled a petrochemical revolution of new technologies and the mass consumption of consumer durables.11 Oligopoly in the dominant economic sectors which increased not only the economic power but the political and ideological power of large corporations. Relative industrial peace made possible by a rate of growth in productivity and profits which could sustain a collective bargaining process that generally improved real wages, benefits and working conditions in the main sectors of industrial accumulation. A strong sense of togetherness generated by victory in World War II and maintained by the cold war. A welfare state which made huge investments in material and social infrastructure. Rapid population growth. Cheap land. Cheap food. Expansion of every kind of debt. A lack of concern for environmental issues.
Index A abstract theory 10–12, 18–50 see also deep structure, inner logic, pure capitalism accountability 205–10 see also democracy addiction 43, 45, 95–6, 177, 179, 222 advertising 70, 167–8, 172–4, 177 Africa 153, 156, 158 agriculture 7, 11, 18, 32, 40, 125, 127, 128, 132, 134, 141, 158, 185, 202, 205 American 8, 135, 148–9 non-food crops 7, 142, 157 (see also cotton, tobacco) see also aid to agriculture, exportoriented agriculture, family farms, industrial farms aid 134 see also aid to agriculture, food aid, foreign aid AIDS 153, 178 Alberta tar sands 148, 206 see also peak oil algae blooms 156, 159 see also chemical fertilizer allergies 118, 161–2 American hegemony 52, 76, 91, 125 see also US hegemony American Council on Science and Health 195 American Sugar Association 188 anaemia 107 anti-depressants 178 antibiotics 103 anxiety 173 Archer Daniels Midland 186, 189 asthma 149 atomism 72–3 see also individualism, islandization, possessive individualism Attention Deficit Disorder (ADD) 63, 114, 173 austerity policies 135 see also structural adjustment policies automobile 57, 59–60, 72–3 see also car-dependent development B Baby Milk Action Group 96 balance of payments 58, 68, 220 balance of trade 136, 220 banana workers 136–8, 143 Bangladesh 142 Bernay, Edward 168 biodiesel 142 see also biofuel, ethanol biofuel 151–2 blacklisting 127 Borneo 155 bottom trawling 160 bovine growth hormone 116, 236 boycotts 206 brand loyalty 166, 169, 173, 176 see also advertising, marketing Brandt, Allan 8, 168, 170 Brazil 139, 140, 151, 155 [ 251 ] 252 INDEX Bretton Woods monetary system 68 Buffet, Warren 84 bulimia 176 Bush, President George W. 149, 152 Butz, Earl (US Secretary of Agriculture) 59, 68–9, 75 C Califano, Joseph 170 California 127, 159 cancer 63 see also carcinogen capitalism x, 8–11, 50–1, 61, 82–3, 93, 122, 124, 126, 178, 183, 184, 190, 197, 201–2, 204, 210, 213 capitalist farms 130–1, 214 capitalist ideology 73–4, 165, 168, 183, 196–7 car-dependent development 60, 64 see also automobile carbon dioxide (CO2) 149, 151, 154 carbon tax 209 carcinogens 111–12, 114, 137, 178, 191, 194 Carson, Rachel 61, 77, 111 causality 169–70 causes ix, 90, 180 Center for Consumer Freedom 188, 196 Center for Science in the Public Interest (CSPI) 93, 174 Channel One 176 chemical fertilizers 58, 129, 149, 151, 159–60, 217 chemicalization 83, 158–9, 202 see also chemical fertilizers, nemagon, pesticides Chicago Board of Trade 153 child labour 138–9 see also slavery China 122, 142, 155, 175 choice 165–81, 187 see also consumer sovereignty, freedom chronic illnesses 94 class 99, 168, 213 class struggle 12 Clinton, President Bill 100 coal 151 cocoa 135, 138, 202 codex alimentarius 97, 188 coffee 135, 140–3, 202 cold war 58–9, 61–2, 74–6 collective bargaining 127 colonialism 18, 25, 44–5, 71, 124, 153 see also developing countries command economy 202 commodification 12, 21, 37–8, 39, 214–15 commodities 12, 20 commodity futures 89, 108, 142, 145, 153 see also Chicago Board of Trade concentration/centralization 25, 45, 114, 120, 131–2, 137, 187, 216 competition 11, 26, 43, 127–8, 135 confined animal feeding operation (CAFO) 101–2, 150, 153, 155, 159, 163 consumer sovereignty 165, 178–80 see also choice, freedom, rights consumerism xii, 42, 68–9, 72, 125, 173, 176, 180 consumers 28, 144, 166, 178 consumption 9, 165 contradiction x, 25 see also irrationality, rationality cooking skills 121–2 cooperation 144, 200–11 see also movements coral 159 corn 108, 111, 136, 151–3 see also ethanol, subsidies corporate lobbies 186 corporations xi, 8, 14–15, 45, 60–1, 70, 87, 123, 130, 132, 136, 138, 141–2, 145, 147–8, 162, 165, 168–9, 172, 183,–4, 186, 193–5, 197, 203, 206–7, 218–19 Costa Rica 138 INDEX cotton 111, 129, 143 see also non-food crops, pesticides, subsidies crises 12, 25, 38, 39, 42, 216 ecological crisis 146–7 see also food crisis D Dalley, George 187 death rate 127, 130 debt 42–3 64, 66, 68, 70, 122, 129, 134, 141, 205, 208 ecological debt 43, 147 health debt 43 decline of civilization 7 deep cause/deep structure ix, 12, 16, 18–50, 52, 106 see also abstract theory, inner logic, levels of analysis, pure capitalism deforestation 35, 86, 102, 140 142–3, 151, 155, 157 democracy x, 9, 19, 52, 85, 162, 166, 181, 197, 206 see also accountability, equality, freedom, inequality, liberaldemocracy, rights democratization of corporations xii, 14, 15, 205–8 of markets xii, 15, 208–10 Department of Agriculture (US) 171 deportation 126–7 depression 94, 222 desertification 157 see also deforestation developing countries 45, 58–9, 69, 76, 78, 85–6, 104, 106, 111, 129, 134–37, 140–3, 162, 193, 203, 205 diabetes 94, 96, 99, 100 diet 174, 191 distributive justice 8, 10, 16, 91, 142, 194, 209–10 division of labour 6 Doll, Sir Richard 194–5 Dominican Republic 128 253 drought 158 see also water dumping 59, 129, 135, 205 see also developing countries, food prices, subsidies E E.
Economists and the Powerful by Norbert Haring, Norbert H. Ring, Niall Douglas
accounting loophole / creative accounting, Affordable Care Act / Obamacare, Albert Einstein, asset allocation, bank run, barriers to entry, Basel III, Bernie Madoff, British Empire, central bank independence, collective bargaining, commodity trading advisor, corporate governance, creative destruction, credit crunch, Credit Default Swap, David Ricardo: comparative advantage, diversified portfolio, financial deregulation, George Akerlof, illegal immigration, income inequality, inflation targeting, information asymmetry, Jean Tirole, job satisfaction, Joseph Schumpeter, Kenneth Arrow, knowledge worker, labour market flexibility, law of one price, light touch regulation, Long Term Capital Management, low skilled workers, mandatory minimum, market bubble, market clearing, market fundamentalism, means of production, minimum wage unemployment, moral hazard, new economy, obamacare, old-boy network, open economy, Pareto efficiency, Paul Samuelson, pension reform, Ponzi scheme, price stability, principal–agent problem, profit maximization, purchasing power parity, Renaissance Technologies, rolodex, Sergey Aleynikov, shareholder value, short selling, Steve Jobs, The Chicago School, the payments system, The Wealth of Nations by Adam Smith, too big to fail, transaction costs, ultimatum game, union organizing, Vilfredo Pareto, working-age population, World Values Survey
Another spinoff, American Axle, succeeded in cutting wages by about a third (Holmes and Snider 2011). For Germany, a study of the automobile and telecommunications industries has shown that outsourcing parts has cut the wage bill. The vertical disintegration of major German employers contributed to the disorganization of Germany’s dual system of in-plant and sectoral negotiations. Subcontractors, subsidiaries and temporary agencies often have no collective bargaining institutions or are covered by different ﬁrm-level and sectoral agreements. Moving employers to these ﬁrms introduced new organizational boundaries and disrupted traditional bargaining structures to the detriment of unions (Doellgast and Greer 2007). For the US, a different study shows that contract cleaning ﬁrms and security guards employed by a service contractor receive substantially lower wages and beneﬁts than employees doing the same jobs employed 186 ECONOMISTS AND THE POWERFUL by manufacturing ﬁrms.
D. 13 American Economic Association ix, 10, 17, 20, 26–7, 44 American Economic Review 8, 20, 26–7 American International Group (AIG) 70, 90–91 Anglo-Saxon economics ix Arrow, Kenneth 7, 23–4, 212; see also impossibility theorem (Arrow’s) asset bubble 104 asymmetric information: see information, asymmetric AT&T 147 authoritarianism 24, 210 average cost 148, 151 Bank of America 77, 86, 94 barriers to entry 54, 160 Basel III Accord 104–5 Bear Stearns 90, 96, 107, 111 Becker, Gary S. 186 Bemis, Edward 9–10 Bentham, Jeremy 11 Berlin, Isaiah 25 Bernays, Edward 15–17 Bill of Rights (US) 208 Bolsa Família program 41 Boskin Commission 36 Bourdieu, Pierre 25, 115, 160 Bridgestone (tire manufacturer) 163–4, 166–7 British Empire ix, 16, 100 Buchanan, James 23–4 Buffett, Warren 93, 107–9 Bullionists 2 Bureau of Labor Statistics 32–3, 35 capitalism vii–viii, ix, 2, 5–6, 10, 18–19, 21, 31, 46, 142, 153, 158, 165 central bank 43, 67, 79–88, 104–5 CEO: see chief executive ofﬁcer (CEO) Chicago, University of 10, 17, 19, 26, 27, 44, 80, 84, 168, 186, 193 chief executive ofﬁcer (CEO) xi, 16, 47, 61, 70, 93, 95–6, 103, 107–13, 115–27, 132, 138–9, 215, 217 Chrysler xi, 113 Citicorp (bank) 43 Citigroup (bank) xi, 61, 63, 96, 105, 112, 125 Clark, John Bates 6, 10–11, 155, 193 classical value theory 5 Cold War 2, 18, 21, 25–8, 46 collective bargaining 185 Commodity Futures Trading Commission (CTFC) 90, 92 Commons, John R. 8–10 communism xii, 2, 19, 21, 25, 139 comparative advantage 4 Condorcet, Marquis de 23 conﬂict 165 consumption viii, 11, 13, 32, 78, 158, 192, 203, 211 control fraud 94–5 convergence vii 242 ECONOMISTS AND THE POWERFUL cooperation 73–5, 165, 167, 170, 198 cooperative 102 Cornell University 10 corporate elite x, xii, 115, 117, 140 corporate governance 92, 119, 127, 135, 136 corporate government 135 corporate management 109 corporation tax 139 corruption 220 credit x, xi, 29, 48–50, 59–60, 62, 65, 71, 73, 75, 77–84, 90–91, 95–8, 100, 104, 110, 149, 183 credit default swap 91, 93 CTFC: see Commodity Futures Trading Commission (CTFC) Darwinism 167 Debreu, Gerard 7 demand curve 146 democracy 18, 207, 211–13, 220 depreciation 33, 147 derivatives 67, 90–93, 96–7 Deutsche Bank 105, 121 disability adjusted life expectancy vii discrimination 130, 186–7 earnings management 129–30 economic growth xi, 80 economic policy xi, 46, 66, 76, 152 economic utility 4–5, 13 economics, mainstream viii, x–xi, xiii, 1, 29, 47, 136, 145, 164, 170, 208, 211, 214 economics, neoclassical ix, xii, 6, 8, 10–11, 13, 21–2, 25, 30, 38, 42, 45, 141, 143–4, 153–5, 157–60, 163–4, 168, 170–71, 173, 180–82, 188, 191–2, 210, 213 economies of scale 3, 54, 152, 161 economies of scope 54 Edgeworth, Francis Y. 10 efﬁciency vii, x, xi, xii, 13, 19, 25, 39, 43, 48, 62, 73, 101, 108, 136–7, 143, 144, 146–7, 149, 156, 160, 170, 176, 179, 183, 190, 193, 197, 202–4, 216, 219 efﬁcient markets x Ely, Richard T. 9–10 employment protection 188, 200–203, 205 Enron 52, 92, 98, 110, 128, 132, 217 entrenchment 126, 135 equality of opportunity vii–ix, xii, 37, 39–41, 45, 53, 114, 124, 172 equality of outcome vii equilibrium x, 6–7, 37, 47, 146, 159, 161, 181–2, 197, 208 euro ix, 67, 82, 102 European Central Bank 103, 189, 215 European Commission/Union 67, 152 executive compensation 120–21, 138 exploitation 6, 156, 209, 212 exports 2, 34, 180–81 fairness ix, 13, 37, 39–40, 160, 164–6, 169–70, 177, 220 Fannie Mae (US government subsidizer of mortgages) 217 fear, uncertainty, doubt (FUD) 145 Federal Reserve (US) 43–4, 69–70, 85, 87–92, 143, 215 feedback loop 40, 216, 220 ﬁat money 75, 81 ﬁlibuster (US antilegislative maneuver) 218 ﬁnancial industry xi, 44, 46–8, 51, 54–6, 64, 70, 89, 91–2, 121, 129, 217 ﬁnancial markets xi, 47, 92, 108, 110, 128 ﬁnancial rating agencies: see rating agencies ﬁnancial sector xi, 43–4, 47–8, 53–4, 60, 64, 69, 79, 81, 83, 88–9, 100–101, 103, 105 Financial Stability Board 103 First (Workingmen’s) International 5 ﬁrst mover advantage 132 Fisher, Irving 10, 13, 60, 75, 81, 83–4, 214 Fitch (ratings agency) 97 ﬁxed costs 143 INDEX Fortune (magazine) 128 Fortune 500 (index) 49, 139 forwards (ﬁnancial instrument) 67 founding fathers (of the United States) 207, 218 Freddie Mac (US government subsidizer of mortgages) 217 free market 6–7, 24, 46, 84, 147, 188, 193, 209 free riding 24, 37, 164 free trade 3–4, 16, 46, 209 freedom viii, 10, 18, 21, 25, 80, 94, 188, 191, 218 Freud, Sigmund 15 Friedman, Milton 44, 57, 81 front running (trading strategy) 65–6 FUD: see fear, uncertainty, doubt (FUD) fund managers 56–8, 63–4, 68, 134 futures (ﬁnancial instrument) 67 Galbraith, John Kenneth 11, 74 GDP: see gross domestic product (GDP) General Motors xi, 16, 184–5 global ﬁnancial crisis ix, 90; see also Great Financial Crisis God 24 gold 2, 72–7, 79–80, 86–7, 89 golden parachutes 112 Goldman Sachs 47, 49, 54, 56, 63, 66, 69, 88, 93, 105, 121, 215 goodwill 131 Great Depression 11, 70, 80, 138–9, 181, 204 Great Financial Crisis 79, 100, 111, 136; see also global ﬁnancial crisis gross domestic product (GDP) vii–ix, xi, 28–31, 143 growth 27–8, 31, 33, 35, 39, 71, 90, 102, 108, 128, 132, 135, 151, 195, 203–4 Hadley, Arthur 10 happiness 202 Harvard Business Review 17–18 Harvard University 17–18, 26, 109, 208 243 hedge fund 29, 43, 46, 53, 58, 64–8, 92, 96, 101, 107 hedonic method 33–6 Hicks, John 13–14, 21 Homo economicus 164–6, 173 hostile takeovers 126 human capital 128 imports 2, 12, 34, 35 impossibility theorem (Arrow’s) 23–4, 212–13 incentives 39–40, 42–5, 52, 91, 93, 109, 114–15, 129, 132, 140, 172–4, 177, 182, 214 income guarantee 41 incompleteness viii, 12, 49, 145, 169, 184 incumbency 121, 134, 149 index tracking fund 55, 58 indifference 141, 168 industrial goods 2–3, 142 industrial production 2, 179 Industrial Revolution 5, 143, 181 inequality vii, 40, 138, 140 inﬂation 32–3, 36, 50, 78, 81, 104, 109, 120 information advantage 48, 131 information, asymmetric x, 191 information costs 144 information goods 143 information, imperfect x, xii, 142, 145, 149, 220 information technology 34, 218 innovation 34, 43, 147, 150–52, 160, 208 insider information 53–4, 62–3, 131 insider knowledge 131 insider trading 63–4, 131 institutionalism 8, 21 insurance xi, 39, 69, 82, 89–91,152, 189, 198, 204, 210 interest rate, real 50, 159 International Monetary Fund 27, 31, 48, 69, 74 International Workingmen’s Association 5 244 ECONOMISTS AND THE POWERFUL investment 32–3, 37, 41, 51, 56–7, 68, 78, 96–100, 103–4, 128–30, 133, 135, 140, 157, 184, 217 advice 51, 54, 56, 129 banking 29, 43, 47, 51, 52, 54, 55, 60–62, 64, 70–71, 89–90, 93, 94, 96, 97, 101, 107, 111–12, 125, 132 personal viii irrationality vii, 1, 13, 16, 38, 40, 151, 205, 211–12 Ivy League 27 Jevons, William Stanley 5, 16 job security viii, 108, 199–200, 202–4 J.P.
What's the Matter with White People by Joan Walsh
affirmative action, Affordable Care Act / Obamacare, banking crisis, clean water, collective bargaining, David Brooks, desegregation, Donald Trump, Edward Glaeser, full employment, global village, Golden Gate Park, hiring and firing, impulse control, income inequality, invisible hand, knowledge worker, labor-force participation, mass immigration, new economy, obamacare, Occupy movement, Plutocrats, plutocrats, Ralph Nader, Ronald Reagan, upwardly mobile, urban decay, War on Poverty, We are the 99%, white flight, women in the workforce, zero-sum game
Some 2010 GOP voters seemed to get wise to the ruse after the election, however, when new GOP governors made unexpectedly aggressive moves against labor—and in Wisconsin and Ohio, working-class voters fought back. Wisconsin’s Scott Walker and Ohio’s John Kasich made public workers the new public enemy, demonizing them as slackers and moochers living off the government, as if they were twenty-first century welfare queens. In November 2011, Ohio repealed GOP Kasich’s bill that stripped public sector unions of their collective bargaining rights, and Wisconsin voters began a drive to recall Walker. Maine elected a Tea Party Republican governor in 2010. A year later, voters overturned a GOP-sponsored law that had abolished the state’s traditional same-day registration practice. The states that allowed citizens to register and vote at the same time, a practice that dramatically increases voter turnout, just happened to be the nation’s most homogeneous—that is, the whitest—from Idaho to Wyoming to Maine.
Yet once Republicans realized that even in the whitest states, same-day voter laws and other easy ballot-access regulations empower citizens who are today more likely to vote for Democrats—students, young people, the lower-income of every race, and yes, the nonwhites—they’ve fought these voter laws ruthlessly. “Voting liberal, that’s what kids do,” a New Hampshire Republican said in defense of a bill that would prohibit people from voting with only a college ID—and given his state’s demographics, he was mainly talking about white kids. Thus the radical GOP is now rolling back rights white people have long taken for granted—and in Maine, at least, they fought back. The Ohio collective bargaining victory, the Wisconsin recall, the Maine same-day voter registration backlash: all were evidence of the new activism most widely represented in the Occupy Wall Street (OWS) movement. It had an immediate success: media mentions of the word inequality soared as OWS took off. A Tumblr blog, “We are the 99 percent,” became the twenty-first-century, DIY version of Michael Harrington’s The Other America.
Consent of the Networked: The Worldwide Struggle for Internet Freedom by Rebecca MacKinnon
A Declaration of the Independence of Cyberspace, Bay Area Rapid Transit, Berlin Wall, business intelligence, Cass Sunstein, Chelsea Manning, citizen journalism, cloud computing, cognitive dissonance, collective bargaining, conceptual framework, corporate social responsibility, Deng Xiaoping, digital Maoism, don't be evil, Filter Bubble, Firefox, future of journalism, illegal immigration, Jaron Lanier, Jeff Bezos, John Markoff, Julian Assange, Mark Zuckerberg, Mikhail Gorbachev, national security letter, online collectivism, Parag Khanna, pre–internet, race to the bottom, Richard Stallman, Ronald Reagan, sharing economy, Silicon Valley, Silicon Valley startup, Skype, Steve Crocker, Steven Levy, WikiLeaks
Over time, the environmental, labor, and traditional human rights movements built powerful political constituencies that have shifted the domestic and international policy priorities of most of the world’s democracies. There is no reason an Internet freedom movement cannot eventually do the same thing, with enough effort by enough people. CORPORATE TRANSPARENCY AND NETIZEN ENGAGEMENT The power of corporations to shape netizens’ digital discourse and hence our political lives will not be constrained without new mechanisms and strategies for collective bargaining by netizens with corporations. The existing political and legislative processes of nation-states are failing to do the job. While it makes no sense for a company to try to duplicate the mechanisms of representative parliamentary democracy within their global constituencies, the status quo is also unacceptable. Netizens, companies, and governments all face an urgent moral imperative to innovate politically—in the broadest sense of the word—on a scale that matches the dramatic technical innovations of the past several decades.
The Internet Is Not the Answer by Andrew Keen
3D printing, A Declaration of the Independence of Cyberspace, Airbnb, AltaVista, Andrew Keen, augmented reality, Bay Area Rapid Transit, Berlin Wall, bitcoin, Black Swan, Bob Geldof, Burning Man, Cass Sunstein, citizen journalism, Clayton Christensen, clean water, cloud computing, collective bargaining, Colonization of Mars, computer age, connected car, creative destruction, cuban missile crisis, David Brooks, disintermediation, Donald Davies, Downton Abbey, Edward Snowden, Elon Musk, Erik Brynjolfsson, Fall of the Berlin Wall, Filter Bubble, Francis Fukuyama: the end of history, Frank Gehry, Frederick Winslow Taylor, frictionless, full employment, future of work, gig economy, global village, Google bus, Google Glasses, Hacker Ethic, happiness index / gross national happiness, income inequality, index card, informal economy, information trail, Innovator's Dilemma, Internet of things, Isaac Newton, Jaron Lanier, Jeff Bezos, job automation, Joseph Schumpeter, Julian Assange, Kevin Kelly, Kickstarter, Kodak vs Instagram, Lean Startup, libertarian paternalism, lifelogging, Lyft, Marc Andreessen, Mark Zuckerberg, Marshall McLuhan, Martin Wolf, Metcalfe’s law, move fast and break things, move fast and break things, Nate Silver, Network effects, new economy, Nicholas Carr, nonsequential writing, Norbert Wiener, Norman Mailer, Occupy movement, packet switching, PageRank, Paul Graham, peer-to-peer, peer-to-peer rental, Peter Thiel, Plutocrats, plutocrats, Potemkin village, precariat, pre–internet, RAND corporation, Ray Kurzweil, ride hailing / ride sharing, Robert Metcalfe, Second Machine Age, self-driving car, sharing economy, Silicon Valley, Silicon Valley ideology, Skype, smart cities, Snapchat, social web, South of Market, San Francisco, Steve Jobs, Steve Wozniak, Steven Levy, Stewart Brand, TaskRabbit, Ted Nelson, telemarketer, The Future of Employment, the medium is the message, the new new thing, Thomas L Friedman, Tyler Cowen: Great Stagnation, Uber for X, urban planning, Vannevar Bush, Whole Earth Catalog, WikiLeaks, winner-take-all economy, working poor, Y Combinator
The twentieth-century industrial age, while far from ideal in many ways, was distinguished by what George Packer, writing in the New York Times, calls the “great leveling” of the “Roosevelt Republic.”64 For hard-line neoliberals like Tom Perkins, Packer’s “great leveling” probably raises the specter of a socialist dystopia. But for those not fortunate enough to own a $130 million yacht as long as a football field, this world offered an economic and cultural center, a middle ground where jobs and opportunity were plentiful. The late industrial age of the second half of the twentieth century was a middle-class world built, Packer notes, by “state universities, progressive taxation, interstate highways, collective bargaining, health insurance for the elderly, credible news organizations.”65 According to the Harvard economists Claudia Goldin and Lawrence Katz, this was a “golden age” of labor in which increasingly skilled workers won the “race between education and technology” and made themselves essential to the industrial economy.66 And, of course, it was a world of publicly funded institutions like ARPA and NSFNET that provided the investment and opportunities to build valuable new technologies like the Internet.
On Twitter, @travisk even once borrowed the cover of The Fountainhead, Ayn Rand’s extreme libertarian celebration of free-market capitalism, as his profile photo.3 Kalanick’s $18 billion venture is certainly a badass company, with customers accusing its drivers of every imaginable crime from kidnapping4 to sexual harassment.5 Since its creation, the unregulated Uber has not only been in a constant legal fight with New York City, San Francisco, Chicago, and federal regulators, but has been picketed by its own nonunionized drivers demanding collective bargaining rights and health-care benefits.6 Things aren’t any better overseas. In France, opposition to the networked transportation startup has been so intense that, in early 2014, there were driver strikes and even a series of violent attacks on Uber cars in Paris.7 While in September 2014, a Frankfurt court banned Uber’s budget price UberPop product entirely from the German market, claiming that the massively financed startup unfairly competed with local taxi companies.8 Uber drivers don’t seem to like Kalanick’s anti-union company any more than regulators do.
3D printing, Airbnb, American energy revolution, assortative mating, autonomous vehicles, Bakken shale, barriers to entry, basic income, Bernie Sanders, BRICs, call centre, Capital in the Twenty-First Century by Thomas Piketty, Clayton Christensen, cloud computing, collective bargaining, computer age, creative destruction, dark matter, David Ricardo: comparative advantage, deindustrialization, dematerialisation, Deng Xiaoping, deskilling, Dissolution of the Soviet Union, Donald Trump, Downton Abbey, Edward Glaeser, Erik Brynjolfsson, eurozone crisis, everywhere but in the productivity statistics, falling living standards, first square of the chessboard, first square of the chessboard / second half of the chessboard, Ford paid five dollars a day, Francis Fukuyama: the end of history, future of work, gig economy, global supply chain, global value chain, hydraulic fracturing, income inequality, indoor plumbing, industrial robot, intangible asset, interchangeable parts, Internet of things, inventory management, invisible hand, Jacquard loom, James Watt: steam engine, Jeff Bezos, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph-Marie Jacquard, knowledge economy, low skilled workers, lump of labour, Lyft, manufacturing employment, Marc Andreessen, mass immigration, means of production, new economy, performance metric, pets.com, price mechanism, quantitative easing, Ray Kurzweil, rent-seeking, reshoring, rising living standards, Robert Gordon, Ronald Coase, savings glut, Second Machine Age, secular stagnation, self-driving car, sharing economy, Silicon Valley, single-payer health, software is eating the world, supply-chain management, supply-chain management software, TaskRabbit, The Future of Employment, The Nature of the Firm, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, trade liberalization, transaction costs, Tyler Cowen: Great Stagnation, Uber and Lyft, Uber for X, very high income, working-age population
Such organizations, in addition, are seen as important counterweights to owners of other productive factors – either land or capital – who, thanks to the relative scarcity of their contribution to production, enjoy significant bargaining power in negotiations with labour. It is no coincidence that trade unionism emerged as a powerful political force over the course of a tumultuous nineteenth century, a century in which workers often suffered miserable conditions and pay while capitalists prospered. Collective bargaining addressed the difficulty created by the relative abundance of labour. In the absence of organization, a firm faced little pressure to increase the share of the economic surplus created, when a worker was hired, that flowed to the workers themselves. If the worker didn’t like it, he could bugger off, and there would be a long line of replacements waiting to take his spot. Organization sought to eliminate the line of waiting replacements.
Acemoglu, Daron ageing populations agency, concept of Airbnb Amazon American Medical Association (AMA) anarchism Andreessen, Marc Anglo-Saxon economies Apple the iPhone the iPod artisanal goods and services Atkinson, Anthony Atlanta, Georgia austerity policies automation in car plants fully autonomous trucks of ‘green jobs’ during industrial revolution installation work as resistant to low-pay as check on of menial/routine work self-driving cars and technological deskilling automobiles assembly-line techniques automated car plants and dematerialization early days of car industry fully autonomous trucks self-driving cars baseball Baumol, William Belgium Bernanke, Ben Bezos, Jeff black plague (late Middle Ages) Boston, Massachusetts Brazil BRIC era Bridgewater Associates Britain deindustrialization education in extensions of franchise in financial crisis (2008) Great Exhibition (London 1851) housing wealth in and industrial revolution Labour Party in liberalization in political fractionalization in real wages in social capital in surpassed by US as leading nation wage subsidies in Brontë, Charlotte Brynjolfsson, Erik bubbles, asset-price Buffalo Bill (William Cody) BuzzFeed Cairncross, Frances, The Death of Distance (1997) capital ‘deepening’ infrastructure investment investment in developing world career, concept of cars see automobiles Catalan nationalism Central African Republic central banks Chait, Jonathan Charlotte chemistry, industrial Chicago meat packers in nineteenth-century expansion of World’s Columbia Exposition (1893) China Deng Xiaoping’s reforms economic slow-down in era of rapid growth foreign-exchange reserves ‘green jobs’ in illiberal institutions in inequality in iPod assembly in technological transformation in wage levels in Chorus (content-management system) Christensen, Clayton Cisco cities artisanal goods and services building-supply restrictions growth of and housing costs and industrial revolution and information membership battles in rich/skilled and social capital clerical work climate change Clinton, Hillary Coase, Ronald Columbia University, School of Mines communications technology communism communities of affinity computing app-based companies capability thresholds cloud services cycles of experimentation desktop market disk-drive industry ‘enterprise software’ products exponential progress narrative as general purpose technology hardware and software infrastructure history of ‘Moore’s Law’ and productivity switches transistors vacuum tubes see also digital revolution; software construction industry regulations on Corbyn, Jeremy Corliss steam engine corporate power Cowen, Tyler craft producers Craigslist creative destruction the Crystal Palace, London Dalio, Ray Dallas, Texas debt deindustrialization demand, chronically weak dematerialization Detroit developing economies and capital investment and digital revolution era of rapid growth and industrialization pockets of wealth in and ‘reshoring’ phenomenon and sharp slowdown and social capital see also emerging economies digital revolution and agency and company cultures and developing economies and distance distribution of benefits of dotcom tech boom emergence of and global imbalances and highly skilled few and industrial institutions and information flows investment in social capital niche markets pace of change and paradox of potential productivity and output and secular stagnation start-ups and technological deskilling techno-optimism techno-pessimism as tectonic economic transformation and trading patterns web journalism see also automation; computing; globalization discrimination and exclusion ‘disruption’, phenomenon of distribution of wealth see inequality; redistribution; wealth and income distribution dotcom boom eBay economics, classical The Economist education in emerging economies during industrial revolution racial segregation in USA and scarcity see also university education electricity Ellison, Glenn Ellison, Sara Fisher emerging economies deindustrialization economic growth in education in foreign-exchange reserves growth in global supply chains highly skilled workers in see also developing economies employment and basic income policy cheap labour as boost to and dot.com boom in Europe and financial crisis (2008) ‘green jobs’ low-pay sector minimum wage impact niche markets in public sector ‘reshoring’ phenomenon as rising globally and social contexts and social membership as source of personal identity and structural change trilemma in USA see also labour; wages Engels, Friedrich environmental issues Etsy euro- zone Europe extreme populist politics liberalized economies political fractionalization in European Union Facebook face-recognition technology factors of production land see also capital; labour ‘Factory Asia’ factory work assembly-line techniques during industrial revolution family fascism Federal Reserve financial crisis (2008) financial markets cross-border capital flows in developing economies Finland firms and companies Coase’s work on core competencies culture of dark matter (intangible capital) and dematerialization and ‘disruption’ ‘firm-specific’ knowledge and information flows internal incentive structures pay of top executives shifting boundaries of social capital of and social wealth start-ups Ford, Martin, Rise of the Robots (2015) Ford Motor Company fracking France franchise, electoral Friedman, Milton Fukuyama, Francis Gates, Bill gender discrimination general purpose technologies enormous benefits from exponential progress and skilled labour supporting infrastructure and time lags see also digital revolution Germany ‘gig economy’ Glaeser, Ed global economy growth in supply chains imbalances lack of international cooperation savings glut and social consensus globalization hyperglobalization and secular stagnation and separatist movements Goldman Sachs Google Gordon, Robert Gothenburg, Sweden Great Depression Great Depression (1930s) Great Exhibition, London (1851) Great Recession Great Stagnation Greece ‘green jobs’ growth, economic battle over spoils of boom (1994-2005) and classical economists as consistent in rich countries decline of ‘labour share’ dotcom boom emerging economies gains not flowing to workers and industrial revolution Kaldor’s ‘stylized facts of’ and Keynes during liberal era pie metaphor in post-war period and quality of institutions and rich/elite cities rich-poor nation gap and skilled labour guilds Hansen, Alvin Hayes, Chris, The Twilight of the Elites healthcare and medicine hedge funds and private equity firms Holmes, Oliver Wendell Hong Kong housing in Bay-Area NIMBY campaigns against soaring prices pre-2008 crisis zoning and regulations Houston, Texas Huffington Post human capital Hungary IBM identity, personal immigration and ethno-nationalist separatism and labour markets in Nordic countries and social capital income distribution see inequality; redistribution; wealth and income distribution India Indonesia industrial revolution automation during and economic growth and growth of cities need for better-educated workers and productivity ‘second revolution’ and social change and wages and World’s Fairs inequality and education levels between firms and housing wealth during industrial revolution during liberal era between nations pay of top executives rise of in emerging economies and secular stagnation in Sweden wild contingency of wealth see also rich people; wealth and income distribution inflation in 1970s hyperinflation information technology see computing Intel interest rates International Space Station (ISS) iRobot ISIS Italy Jacksonville, Florida Jacquard, Joseph Marie Japan journalism Kaldor, Nicholas Keynes, John Maynard Kurzweil. Ray labour abundance as good problem bargaining power cognitive but repetitive collective bargaining and demographic issues discrimination and exclusion global growth of workforce and immigration liberalization in 1970s/80s ‘lump of labour’ fallacy occupational licences organized and proximity reallocation to growing industries retraining and skill acquisition and scarcity and social value work as a positive good see also employment Labour Party, British land scarcity Latvia Le Pen, Jean-Marie Le Pen, Marine legal profession Lehman Brothers collapse (2008) Lepore, Jill liberalization, economic (from 1970s) Linkner, Josh, The Road to Reinvention London Lucas, Robert Lyft maker-taker distinction Malthus, Reverend Thomas Manchester Mandel, Michael Mankiw, Gregory marketing and public relations Marshall, Alfred Marx, Karl Mason, Paul, Postcapitalism (2015) McAfee, Andrew medicine and healthcare ‘mercantilist’ world Mercedes Benz Mexico Microsoft mineral industries minimum wage Mokyr, Joel Monroe, President James MOOCs (‘massive open online courses’) Moore, Gordon mortality rates Mosaic (web browser) music, digital nation states big communities of affinity inequality between as loci of redistribution and social capital nationalist and separatist movements Netherlands Netscape New York City Newsweek NIMBYism Nordic and Scandinavian economies North Carolina North Dakota Obama, Barack oil markets O’Neill, Jim Oracle Orbán, Viktor outsourcing Peretti, Jonah Peterson Institute for International Economics pets.com Philadelphia Centennial Fair (1876) Philippines Phoenix, Arizona Piketty, Thomas, Capital in the Twenty-First Century (2013) Poland political institutions politics fractionalization in Europe future/emerging narratives geopolitical forces human wealth narrative left-wing looming upheaval/conflict Marxism nationalist and separatist movements past unrest and conflict polarization in USA radicalism and extremism realignment revolutionary right-wing rise of populist outsiders and scarcity social membership battles Poor Laws, British print media advertising revenue productivity agricultural artisanal goods and services Baumol’s Cost Disease and cities and dematerialization and digital revolution and employment trilemma and financial crisis (2008) and Henry Ford growth data in higher education of highly skilled few and industrial revolution minimum wage impact paradox of in service sector and specialization and wage rates see also factors of production professional, technical or managerial work and education levels and emerging economies the highly skilled few and industrial revolution and ‘offshoring’ professional associations skilled cities professional associations profits Progressive Policy Institute property values proximity public spending Putnam, Robert Quakebot quantitative easing Race Against the Machine, Brynjolfsson and McAfee (2011) railways Raleigh, North Carolina Reagan, Ronald redistribution and geopolitical forces during liberal era methods of nation state as locus of as a necessity as politically hard and societal openness wealth as human rent, economic Republican Party, US ‘reshoring’ phenomenon Resseger, Matthew retail sector retirement age Ricardo, David rich people and maker-taker distinction wild contingency of wealth Robinson, James robots Rodrik, Dani Romney, Mitt rule of law Russia San Francisco San Jose Sanders, Bernie sanitation SAP Saudi Arabia savings glut, global ‘Say’s Law’ Scalia, Antonin Scandinavian and Nordic economies scarcity and labour political effects of Schleicher, David Schwartz, Anna scientists Scotland Sears Second World War secular stagnation global spread of possible solutions shale deposits sharing economies Silicon Valley Singapore skilled workers and education levels and falling wages the highly skilled few and industrial revolution ‘knowledge-intensive’ goods and services reshoring phenomenon technological deskilling see also professional, technical or managerial work Slack (chat service) Slate (web publication) smartphone culture Smith, Adam social capital and American Constitution baseball metaphor and cities ‘deepening’ definition/nature of and dematerialization and developing economies and erosion of institutions of firms and companies and good government and housing wealth and immigration and income distribution during industrial revolution and liberalization and nation-states productive application of and rich-poor nation gap and Adam Smith and start-ups social class conflict middle classes and NIMBYism social conditioning of labour force working classes social democratic model social reform social wealth and social membership software ‘enterprise software’ products supply-chain management Solow, Robert Somalia South Korea Soviet Union, dissolution of (1991) specialization Star Trek state, role of steam power Subramanian, Arvind suburbanization Sweden Syriza party Taiwan TaskRabbit taxation telegraphy Tesla, Nikola Thatcher, Margaret ‘tiger’ economies of South-East Asia Time Warner Toyota trade China as ‘mega-trader’ ‘comparative advantage’ theory and dematerialization global supply chains liberalization shaping of by digital revolution Adam Smith on trade unions transhumanism transport technology self-driving cars Trump, Donald Twitter Uber UK Independence Party United States of America (USA) 2016 Presidential election campaign average income Bureau of Labour Statistics (BLS) Constitution deindustrialization education in employment in ethno-nationalist diversity of financial crisis (2008) housing costs in housing wealth in individualism in industrialization in inequality in Jim Crow segregation labour scarcity in Young America liberalization in minimum wage in political polarization in post-crisis profit rates productivity boom of 1990s real wage data rising debt levels secular stagnation in shale revolution in social capital in and social wealth surpasses Britain as leading nation wage subsidies in university education advanced degrees downward mobility of graduates MOOCs (‘massive open online courses’) and productivity see also education urbanization utopias, post-work Victoria, Queen video-gamers Virginia, US state Volvo Vox wages basic income policy Baumol’s Cost Disease cheap labour and employment growth and dot.com boom and financial crisis (2008) and flexibility and Henry Ford government subsidies and housing costs and immigration and industrial revolution low-pay as check on automation minimum wage and productivity the ‘reservation wage’ as rising in China rising in emerging economies and scarcity in service sector and skill-upgrading approach stagnation of and supply of graduates Wandsworth Washington D.C.
2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, affirmative action, banking crisis, carried interest, collateralized debt obligation, collective bargaining, Credit Default Swap, credit default swaps / collateralized debt obligations, desegregation, full employment, Home mortgage interest deduction, job automation, Mahatma Gandhi, minimum wage unemployment, money market fund, new economy, Occupy movement, offshore financial centre, Plutocrats, plutocrats, Ponzi scheme, race to the bottom, Ronald Reagan, single-payer health, special drawing rights, The Wealth of Nations by Adam Smith, Tim Cook: Apple, too big to fail, trickle-down economics, women in the workforce, working poor, zero-sum game
Unions didn’t cause these crises—state revenues plummeted because of the Great Recession—but regressives view them as opportunities to gut public employee unions, starting with teachers. Governor Scott Walker of Wisconsin told a wealthy supporter (who later contributed more than half a million dollars to help him fight off a recall) that his first step for reducing union power was “to deal with collective bargaining for all public employee unions because you divide and conquer.” Soon thereafter, Walker and his GOP majority in the state legislature ended most union rights for public employees. Ohio’s Republican governor, John Kasich, tried to push a similar plan through a Republican-dominated legislature there. New Jersey’s governor, Chris Christie, attempted the same, telling a conservative conference, “I’m attacking the leadership of the union because they’re greedy, and they’re selfish and they’re self-interested.”
Why Wages Rise by F. A. Harper
Let me illustrate. A Wage Contract for My Boy In the year 2012, the Lord willing, my boy will be old enough to retire at age 65. He will then be in the final year of what I hope will have been a worthy occupational life, just prior to being forced to retire. Here is a proposal. Let us say that I want to help him by bargaining for his wage for that year — the year 2012. As his representative at this collective bargaining table, I shall herewith state my proposal and give my reasons for my demands. Then if anyone will accept the offer, we shall see if we can work out the other minor details of the agreement. My proposal is that you pay him a wage of $29.99 per hour for the year 2012. This figure is arrived at by the same method now coming into vogue in negotiations over wage contracts. Contracts are being offered for a period of five years, or perhaps more.
The New Prophets of Capital by Nicole Aschoff
3D printing, affirmative action, Affordable Care Act / Obamacare, Airbnb, American Legislative Exchange Council, basic income, Bretton Woods, clean water, collective bargaining, commoditize, crony capitalism, feminist movement, follow your passion, Food sovereignty, glass ceiling, global supply chain, global value chain, helicopter parent, hiring and firing, income inequality, Khan Academy, late capitalism, Lyft, Mark Zuckerberg, mass incarceration, means of production, performance metric, profit motive, rent-seeking, Ronald Reagan, Rosa Parks, school vouchers, shareholder value, sharing economy, Silicon Valley, Slavoj Žižek, structural adjustment programs, Thomas L Friedman, Tim Cook: Apple, urban renewal, women in the workforce, working poor, zero-sum game
If we truly want to realize the goals of our mothers and sisters struggling through the ages and make the world a better place for women, we need to lean in to campaigns and projects that challenge existing structures of power. If we’re going to improve women’s lives we need to help them organize their workplaces. While it might work for some women (like Sandberg) to focus on individual strategies to get ahead in their jobs, the only way most women are going to get sick days, family leave, health insurance, or a raise is through a collective bargaining agreement organized with other workers, not “trickle-down feminism.”36 Women must lean in to collective projects that unite women in spirit and purpose, projects that channel individual female voices into a deafening roar for true feminism, projects that give women the power to change the world, to make it a better place for all people. ________ 1Sheryl Sandberg, Lean In: Women, Work, and the Will to Lead, New York: Alfred A.
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, 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
As the Milwaukee Journal Sentinel noted in 2011, the Bradley Foundation was “one of the most powerful philanthropic forces behind America’s conservative movement” and “the financial backer behind public policy experiments that started in the state and spread across the nation—including welfare reform, public vouchers for private schools and, this year, cutbacks in public employee benefits and collective bargaining.” As Grebe later acknowledged about Walker’s meteoric rise to The New York Times, “At the risk of being immodest, I probably lent some credibility to his campaign early on.” As a college dropout with no exceptional charisma or charm, Walker might not ordinarily have been marked for high office, but Americans for Prosperity, which had a large chapter in Wisconsin, had provided him with a field operation and speaking platform at its Tea Party rallies when he was still just the Milwaukee county executive.
As a college dropout with no exceptional charisma or charm, Walker might not ordinarily have been marked for high office, but Americans for Prosperity, which had a large chapter in Wisconsin, had provided him with a field operation and speaking platform at its Tea Party rallies when he was still just the Milwaukee county executive. The Kochs’ political organization had been fighting the state’s powerful public employee unions there since 2007. The fight was freighted with larger significance. In 1959, Wisconsin had become the first state to allow its public employees to form unions and engage in collective bargaining, which conservatives detested in part because the unions provided a big chunk of muscle to the Democratic Party. “We go back a long way on this in Wisconsin, and in other states,” Tim Phillips, the head of Americans for Prosperity, acknowledged to Politico. In the past, Phillips had spoken enviously of the unions as the Left’s “army on the ground.” Walker’s anti-union, antitax, and small-government message harmonized perfectly with the Kochs’ philosophy and also served their business interests.
Fifteen days after Walker was inaugurated, in January 2011, Hendricks was captured in what she thought was a private chat, urging the governor to go after the unions. Looking glamorous but impatient, the sixty-something widow pressed Walker to turn Wisconsin into a “completely red” “right-to-work” state. Walker assured her that he had a plan. He had kept voters in the dark about it during his campaign, but he confided to Hendricks that his first step was to “deal with collective bargaining for all public employees’ unions.” This, he assured her, would “divide and conquer” the labor movement. Evidently, this was what Hendricks wanted to hear. She had amassed a fortune estimated at $3.6 billion from ABC Supply, the nation’s largest wholesale distributor of roofing, windows, and siding, which she and her late husband, Ken, founded in 1982. Despite her phenomenal success, Hendricks said she was worried that America was becoming “a socialist ideological nation.”
The Golden Passport: Harvard Business School, the Limits of Capitalism, and the Moral Failure of the MBA Elite by Duff McDonald
activist fund / activist shareholder / activist investor, Affordable Care Act / Obamacare, Albert Einstein, barriers to entry, Bayesian statistics, Bernie Madoff, Bob Noyce, Bonfire of the Vanities, business process, butterfly effect, capital asset pricing model, Capital in the Twenty-First Century by Thomas Piketty, Clayton Christensen, cloud computing, collateralized debt obligation, collective bargaining, commoditize, corporate governance, corporate raider, corporate social responsibility, creative destruction, deskilling, discounted cash flows, disintermediation, Donald Trump, family office, financial innovation, Frederick Winslow Taylor, full employment, George Gilder, glass ceiling, Gordon Gekko, hiring and firing, income inequality, invisible hand, Jeff Bezos, job-hopping, John von Neumann, Joseph Schumpeter, Kenneth Arrow, London Whale, Long Term Capital Management, market fundamentalism, Menlo Park, new economy, obamacare, oil shock, pattern recognition, performance metric, Peter Thiel, Plutocrats, plutocrats, profit maximization, profit motive, pushing on a string, Ralph Nader, Ralph Waldo Emerson, RAND corporation, random walk, rent-seeking, Ronald Coase, Ronald Reagan, Sand Hill Road, Saturday Night Live, shareholder value, Silicon Valley, Skype, Steve Jobs, survivorship bias, The Nature of the Firm, the scientific method, Thorstein Veblen, union organizing, urban renewal, Vilfredo Pareto, War on Poverty, William Shockley: the traitorous eight, women in the workforce, Y Combinator
So the Australian was by no means alone in his concern. But that’s where things started to get interesting. To Mayo, worker unrest was analogous to war neurosis—psychopathological in origin, not the result of poor wages or working conditions. While those mental wounds were the fault of society, to Mayo their manifestation was at least partly self-inflicted, the result of stepping on the land mines of workplace democracy (that is, unions, collective bargaining) in an imaginary war between capital and labor. The real war, Mayo argued, was between each man and himself, a battle against “anomie” and “the hidden fires of mental uncontrol.” In that case, the needed correction wasn’t to alter working environments, but to alter the workers themselves, to cure the sickness in their minds. In his 1919 book, Democracy and Freedom: An Essay in Social Logic, Mayo called for a dose of corrective thinking, one that would allow disaffected employees to return to a state from whence spontaneous and unforced collaboration with their coworkers might once again arise.
(“You’re a maker of air conditioners and aren’t sure how to expand your territory? Well, we’ve got the guy who used to run the largest air conditioner company in the country on our payroll. We think you’ll be interested in what he has to say.”) A young HBS grad with practically zero business experience had no place in that model. But that didn’t mean Bower wasn’t milking the HBS network for all it was worth. Shortly after the 1935 Wagner Act mandated collective bargaining with unions, Bower attended a conference at HBS where he noted the “complete bewilderment of most managements” in the area. “The solution,” Bower concluded, imbibing heavily from the human relations school of thinking then prevalent at HBS, “must go beyond increasing wages and improving working conditions, since these methods . . . are temporary expedients only and offer no permanent solution.”
The third, and newest of the three, was the decision theory of Robert Schlaifer and Howard Raiffa. On the margins were smaller groups, usually centered around a senior professor, such as Business History (Alfred Chandler), Retailing (Walter Salmon), and Transportation (John Meyer). Its weaknesses were what they had always been. The faculty’s strength in industrial relations—including work satisfaction, labor relations, and collective bargaining—was paltry to nonexistent. In human resources, it had a gaping hole when it came to personnel administration.6 Fewer than two hundred HBS graduates worked in the two fields combined. But was it such a surprise? Industrial relations was for people who could—or even wanted to—talk to the little people. And human resources was—and remains—the province of female executives, of which HBS could claim precious few.
Winner-Take-All Politics: How Washington Made the Rich Richer-And Turned Its Back on the Middle Class by Paul Pierson, Jacob S. Hacker
accounting loophole / creative accounting, active measures, affirmative action, asset allocation, barriers to entry, Bonfire of the Vanities, business climate, carried interest, Cass Sunstein, clean water, collective bargaining, corporate governance, Credit Default Swap, David Brooks, desegregation, employer provided health coverage, financial deregulation, financial innovation, financial intermediation, fixed income, full employment, Home mortgage interest deduction, Howard Zinn, income inequality, invisible hand, knowledge economy, laissez-faire capitalism, Martin Wolf, medical bankruptcy, moral hazard, Nate Silver, new economy, night-watchman state, offshore financial centre, oil shock, Powell Memorandum, Ralph Nader, Ronald Reagan, shareholder value, Silicon Valley, The Wealth of Nations by Adam Smith, too big to fail, trickle-down economics, union organizing, very high income, War on Poverty, winner-take-all economy, women in the workforce
He stressed that a Republican majority would need to be responsive to middle-class economic concerns and gave no hint of a platform challenging the New Deal economic agenda. For Phillips, it was liberals who had repudiated the New Deal by moving “beyond programs taxing the few for the benefit of the many (the New Deal) to programs taxing the many on behalf of the few (the Great Society).” The main obstacles to Republican inroads among northern blue-collar workers were “[f]ears that a Republican administration would undermine Social Security, Medicare, collective bargaining and aid to education.” If a Nixon administration could “dispel these apprehensions,” it would gain the political loyalties of the white working class.3 The Nixon we remember was the “law and order” president who cultivated working-class cultural anxieties. But Nixon cut a far different figure when it came to most of the essential aspects of domestic governance, especially those related to the economy and social welfare.
., 130 Thune, John, 283 Thurber, James, 274 Tocqueville, Alexis de, 75, 77, 79, 150 Toomey, Pat, 209 transparency, 63–64, 67, 246–47[jH1] transportation, 55, 74, 79, 100 Travelers, 249–50 Treasury Department, U.S., 123, 125, 195, 196, 198, 214, 249–50, 261 Troubled Asset Relief Program (TARP), 265, 274 Truman, Harry S., 165 UBS, 198, 254 unemployment insurance, 86, 89, 189 unemployment rate, 2, 27, 63, 86, 88, 125, 165, 235, 253, 281, 282, 287, 294–95 Unequal Democracy (Bartels), 151–52, 167 unions, labor: business opposition to, 55, 121–24, 127–32, 135, 219, 303 collective bargaining by, 98 decline of, 5, 56–61, 66, 127–32, 139–43, 164, 235, 248, 278, 303 Democrats supported by, 58, 89, 99, 121–24, 126, 129–32, 141, 164, 172, 178, 248, 278–79 financial resources of, 143 laws for, 44, 58, 78, 80, 125–32, 134, 189, 296 membership of, 57–58, 61, 140, 141–42, 248, 278–79, 318n organization by, 127–28, 204 PACs organized by, 121–22, 128, 172 picketing by, 128–29 political influence of, 89, 99, 121–24, 126, 127–32, 139–43, 144, 145, 146, 154, 204, 218, 275, 278–79, 293 in public sector, 56, 142, 278 Republican opposition to, 58–59, 129–32, 186–87 strikes by, 58–59, 60, 186–87, 191 upper class: income levels of, 3, 12–13, 16–18, 18, 20–25, 32, 39–40, 39, 46, 153–55, 194, 290, 311n political influence of, 72, 78–79, 112–14, 147–51, 157–58 Republicans supported by, 110–11, 147–49 taxation of, 3, 5, 14, 20–24, 34, 47–48, 133, 134, 157, 187, 212–13, 215–17, 243–46, 266, 290 wealth accumulated by, 16–17, 24–25, 31, 32, 43, 49–50, 54–55, 56, 74–77, 100, 101, 225–26, 256, 302–3, 306 upward mobility, 14n, 28–29, 152–53 Urofsky, Melvin, 81 Vanguard Group, 229 Verba, Sidney, 144 vetoes, presidential, 84, 85, 98–99, 126, 128, 213, 241, 298 Vietnam War, 95, 101, 216 Viguerie, Richard, 202 Vogel, David, 116 Volcker, Paul, 46, 256 voters: information for, 108–10, 154–58, 214–15, 236–37, 277, 295 median-voter model of, 77–78 misconceptions of, 151–55, 236–37 mobilization of, 107–10, 138–39, 140, 160, 248, 282 participation by, 77–78, 99, 107, 108–10, 113–14, 137–60, 167–68, 174–75, 252, 268, 287 registration of, 99, 140, 142, 203 swing, 109, 159 targeting of, 147–48, 174–75 “unmoored,” 139, 149–51 Wagner, Robert, 306 Wagner Act (1935), 129, 140 Walker, Charls, 120, 124–26, 133–34, 135 Wall Street, 1, 2, 6, 51, 66–68, 70, 104, 194, 195, 197, 209, 221–30, 232, 247–50, 256, 261, 274, 282, 290–91; see also financial services industry Wall Street Journal, 47, 59, 77, 275 Wal-Mart, 32, 64, 104, 240, 318n Walton family, 218, 240 War on Poverty, 200 Washington, George, 269–70 Watergate scandal, 98, 117 Waxman, Henry, 260 Wealth of Nations, The (Smith), 82 Weber, Vin, 190 Weill, Sanford, 71, 249–50 welfare, 52, 97, 107, 181, 182, 193 What a Party!
Civilization: The West and the Rest by Niall Ferguson
Admiral Zheng, agricultural Revolution, Albert Einstein, Andrei Shleifer, Atahualpa, Ayatollah Khomeini, Berlin Wall, BRICs, British Empire, clean water, collective bargaining, colonial rule, conceptual framework, Copley Medal, corporate governance, creative destruction, credit crunch, David Ricardo: comparative advantage, Dean Kamen, delayed gratification, Deng Xiaoping, discovery of the americas, Dissolution of the Soviet Union, European colonialism, Fall of the Berlin Wall, Francisco Pizarro, full employment, Hans Lippershey, haute couture, Hernando de Soto, income inequality, invention of movable type, invisible hand, Isaac Newton, James Hargreaves, James Watt: steam engine, John Harrison: Longitude, joint-stock company, Joseph Schumpeter, Kitchen Debate, land reform, land tenure, liberal capitalism, Louis Pasteur, Mahatma Gandhi, market bubble, Martin Wolf, mass immigration, means of production, megacity, Mikhail Gorbachev, new economy, Pearl River Delta, Pierre-Simon Laplace, probability theory / Blaise Pascal / Pierre de Fermat, profit maximization, purchasing power parity, quantitative easing, rent-seeking, reserve currency, road to serfdom, Ronald Reagan, savings glut, Scramble for Africa, Silicon Valley, South China Sea, sovereign wealth fund, special economic zone, spice trade, spinning jenny, Steve Jobs, Steven Pinker, The Great Moderation, the market place, the scientific method, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, Thomas Malthus, Thorstein Veblen, total factor productivity, trade route, transaction costs, transatlantic slave trade, transatlantic slave trade, upwardly mobile, uranium enrichment, wage slave, Washington Consensus, women in the workforce, World Values Survey
The bouleversements of 1830 and 1848 were the results of short-run spikes in food prices and financial crises more than of social polarization.33 As agricultural productivity improved in Europe, as industrial employment increased and as the amplitude of the business cycle diminished, the risk of revolution declined. Instead of coalescing into an impoverished mass, the proletariat subdivided into ‘labour aristocracies’ with skills and a lumpenproletariat with vices. The former favoured strikes and collective bargaining over revolution and thereby secured higher real wages. The latter favoured gin. The respectable working class had their trade unions and working men’s clubs.34 The ruffians – ‘keelies’ in Glasgow – had the music hall and street fights. The prescriptions of the Communist Manifesto were in any case singularly unappealing to the industrial workers they were aimed at. Marx and Engels called for the abolition of private property; the abolition of inheritance; the centralization of credit and communications; the state ownership of all factories and instruments of production; the creation of ‘industrial armies for agriculture’; the abolition of the distinction between town and country; the abolition of the family; ‘community of women’ (wife-swapping) and the abolition of all nationalities.
Western Europe, its post-war recovery underwritten by American aid, rapidly regained the growth path of the pre-Depression years (though the biggest recipients of the programme named after George Marshall did not in fact grow fastest). The fascist years had weakened trade unions in much of Europe; labour relations were accordingly less fractious than before the war. Strikes were shorter (though they had higher participation). Only in Britain, France and Italy did industrial action increase in frequency. Corporatist collective bargaining, economic planning, Keynesian demand management and welfare states: the West Europeans took multiple vaccinations against the communist threat, adding cross-border economic integration with the signing of the Treaty of Rome in 1957. In fact the menace from Moscow had largely receded by that date. The Soviet exactions, the unrelenting emphasis on heavy industry, the collectivization of agriculture and the emergence of what Milovan Djilas called ‘The New Class’ of Party hacks – all of these things had already sparked revolts in Berlin (1953) and Budapest (1956).
Albert Einstein, All science is either physics or stamp collecting, barriers to entry, collective bargaining, computer age, Copley Medal, creative destruction, David Ricardo: comparative advantage, decarbonisation, delayed gratification, Fellow of the Royal Society, Flynn Effect, fudge factor, full employment, invisible hand, Isaac Newton, Islamic Golden Age, iterative process, Jacquard loom, James Hargreaves, James Watt: steam engine, John Harrison: Longitude, Joseph Schumpeter, Joseph-Marie Jacquard, knowledge economy, moral hazard, Network effects, Paul Samuelson, Peace of Westphalia, Peter Singer: altruism, QWERTY keyboard, Ralph Waldo Emerson, rent-seeking, Ronald Coase, Simon Kuznets, spinning jenny, the scientific method, The Wealth of Nations by Adam Smith, Thomas Malthus, transaction costs, transcontinental railway, zero-sum game, éminence grise
In Troyes, spinners rioted, killing the mayor and mutilating his body because “he had favored machines.”60 The carders of Lille destroyed machines in 1790; in 1791, the spinning jennies of Roanne were hacked up and burned. By 1796, administrators in the Department of the Somme were complaining, it turns out presciently, that the “prejudice against machinery61 has led the commercial classes … to abandon their interest in the cotton industry.” The Luddite version of machine breaking—what the historian E. J. Hobsbawm called “collective bargaining by riot”62—was the product of half a dozen different but related historical threads. One was surely the Napoleonic Wars, which had been under way more or less continuously for more than fifteen years by the time of the first Luddite activity. The war economy had affected the textile industry of the Midlands no less than the shipbuilders of Portsmouth, first with dramatic increases in demand for sailcloth and uniforms, and then—as Napoleon’s so-called “Continental System” restricted British trade with the Americas and Europe—with equally dramatic decreases in exports, which fell by nearly a third from 1810 to 1811.
., Technology in Western Civilization. 55 “as soon as Arkwright’s patent expired” Ibid. 56 In 1551 Parliament passed legislation Mokyr, Lever of Riches. 57 Not only was Richard Hargreaves’s original spinning jenny destroyed Jeff Horn, “Machine-breaking in England and France During the Age of Revolution,” Labour/Travail 55, Spring 2005. 58 Normandy in particular Ibid. 59 “the machines used in cotton-spinning” Ibid. 60 “he had favored machines” Ibid. 61 “prejudice against machinery” Ibid. 62 “collective bargaining by riot” Kevin Binfield, Writings of the Luddites (Baltimore and London: Johns Hopkins University Press, 2004). 63 Handloom weavers had been earning Sale, Rebels Against the Future. 64 “mee-mawing” Ibid. 65 more than half of all the land then in cultivation in England Ibid. 66 The lack of a patent Usher, History of Mechanical Inventions. 67 In the late 1770s, they petitioned Parliament Binfield, Writings of the Luddites. 68 The stockingers began in the town of Arnold Ibid. 69 The attacks continued throughout the spring Horn, “Machine-breaking in England and France During the Age of Revolution.” 70 That November, a commander Ibid. 71 “2000 men, many of them armed” Binfield, Writings of the Luddites. 72 Manchester was further down the path Ibid. 73 Manchester alone had more than three thousand men Sale, Rebels Against the Future. 74 In January, the West Riding of Yorkshire Binfield, Writings of the Luddites. 75 “Whereas by the charter” A.
Hacker, Hoaxer, Whistleblower, Spy: The Story of Anonymous by Gabriella Coleman
1960s counterculture, 4chan, Amazon Web Services, Bay Area Rapid Transit, bitcoin, Chelsea Manning, citizen journalism, cloud computing, collective bargaining, corporate governance, creative destruction, crowdsourcing, David Graeber, Debian, East Village, Edward Snowden, feminist movement, George Santayana, hive mind, impulse control, Jacob Appelbaum, jimmy wales, Julian Assange, mandatory minimum, Mohammed Bouazizi, Network effects, Occupy movement, pirate software, Richard Stallman, SETI@home, side project, Silicon Valley, Skype, Steven Levy, WikiLeaks, zero day
To put this in perspective: in Wisconsin, a thirty-eight-year-old truck driver, Eric Rosol, was fined for running an automated DDoS tool against the Koch Industries website for sixty seconds. (As part of an Anonymous operation, he was protesting the billionaire Koch brothers’ role in supporting the Wisconsin governor’s effort to reduce the power of unions and public employees’ right to engage in collective bargaining.) The actual financial losses were less than $5,000, but he was slapped with a fine of $183,000—even though a far worse physical crime, arson, would earn a fine of only $6400 in the same state.31 The fine represents the cost the Koch brothers spent hiring a consulting firm prior to the attack for advice on mitigating. In the UK, Chris Weatherhead—who didn’t directly contribute to a DDoS campaign but ran the Anonymous communication hub where the protests were coordinated—received a whopping eighteen-month sentence, “convicted on one count of conspiracy to impair the operation of computers.”32 The legal outcome for those arrested for the PayPal attacks merits further discussion.
chapter 9 AntiSec One day in February 2011, a twenty-six-year-old Chicago hacker logged onto the AnonOps IRC server and said to himself, “Now here is a productive conversation.” Anonymous was in the midst of targeting the notorious Koch brothers, who had donated money to Wisconsin’s Republican governor, Scott Walker. That frigid winter, activists all over the state had marched from the farms and factories into the state’s capitol in protest of Governor Walker, who was pushing for a bill that would strip away state employees’ rights to collective bargaining. This hacker watched as Anonymous DDoSed the Koch-funded free-market advocacy group Americans for Prosperity.1 It was also frigid in Chicago. Whirling around corners, and howling down corridors, the powerful winter spell wind braced gripped the city. This hacker, Jeremy Hammond, had barely been logged on for twenty minutes before losing his Internet connection. He sighed and pulled his six-foot, lanky body from his chair and shuffled outside.
The Divided Nation: A History of Germany, 1918-1990 by Mary Fulbrook
Albert Einstein, banking crisis, Berlin Wall, centre right, collective bargaining, deindustrialization, Fall of the Berlin Wall, feminist movement, first-past-the-post, fixed income, full employment, joint-stock company, land reform, means of production, Mikhail Gorbachev, open borders, Peace of Westphalia, Sinatra Doctrine, union organizing, unorthodox policies
What is quite clear is that, far from achieving a social revolution, the effects of Nazi economic policies on society represented in large measure a continuation and perhaps exacerbation of previous socio-economic trends. Realities under Nazi rule by no means corresponded with pre-1933 election promises. While the return to full employment did mean jobs and a steady income for many, the associated withdrawal of trade union rights and collective bargaining, as well as the very variable rates of pay and conditions, rendered the experience at best an ambiguous one. Despite attempts by the All-German Federation of Trade Unions (ADGB) to reach a compromise with the new regime in April 1933, autonomous trade unions had been unequivocally smashed; and although many workers were prepared somewhat cynically to enjoy any holidays or outings Page 86 offered to them by organizations such as Strength through Joy, few really swallowed much of the propaganda about the 'harmonious factory community' and the like.
But the continuity and development of alternative, potentially subversive youth subcultures indicated the failure to achieve a uniform impact Page 355 on youth in all social positions in Nazi Germany. Similarly, the destruction of trade unions and the co-ordination of workers under the DAF did prevent a whole generation of young workers from gaining experience of trade unionism. The loss of collective bargaining and the introduction of individual pay negotiations and rewards for merit and achievement also induced a greater degree of individualism among some German workers, whittling away at previous notions of collectivism and sentiments of solidarity. But, as in the area of youth organizations, these effects were not universal: many workers quite cynically took advantage of essentially paternalistic schemes, such as the holidays and outings offered by the KDF, without swallowing much of the ideological baggage that went along with such policies.
The Forgotten Man by Amity Shlaes
anti-communist, bank run, banking crisis, collective bargaining, currency manipulation / currency intervention, Frederick Winslow Taylor, invisible hand, jobless men, Mahatma Gandhi, Plutocrats, plutocrats, short selling, Upton Sinclair, wage slave, Works Progress Administration
Especially disturbing was the act’s clear warning that refusals by employers to allow workers to organize “lead to strikes and other forms of industrial strife.” The suggestion was that employers who did not interpret the new law generously could expect to pay for that with strife—violence—and might even be subject to such violence as a result of pre–Wagner Act refusals. Again, Lilienthal acted with alacrity: he began readying a statement noting that 17,000 TVA workers were entitled to rights and collective bargaining under the new Wagner Act. The Wagner Act contained news enough for a year. But there was also the Social Security Act, Perkins’s and Douglas’s plan to provide pensions for senior citizens. Here lawmakers had given Perkins, in particular, a hard time. Senator Thomas Gore of Oklahoma—a Democrat, though no relation to the Gores of Tennessee—had been blind since childhood. Though presumably precisely the sort of person whom acts like Social Security might protect, Gore was sarcastic.
As at the TVA or at Tugwell’s RA, responsibility within the WPA for supplying the jobs and overseeing the programs would be assigned regionally. The head of the program for New York City—the theater center—was to be Elmer Rice, a well-known and left-leaning playwright. The signal was clear: WPA product in the coming year would not necessarily be all pro-Roosevelt, but it certainly would be anti-Republican. By November, the new CIO had opened an office in Washington. Its goal was “to foster recognition and acceptance of collective bargaining” in mass production industries. Lewis named John Brophy to head the office. The dreamer who had placed the last question to Stalin in Moscow had completed his transformation: he was now a lobbyist on K Street. At the Supreme Court, the justices began to contemplate what they would do when the Wagner Act came before them, or if Roosevelt won a second term. After paying a call on FDR in November, Justice Ben Cardozo wrote to Felix Frankfurter of the president, “He seemed strong and happy.
The Great Railroad Revolution by Christian Wolmar
1919 Motor Transport Corps convoy, accounting loophole / creative accounting, banking crisis, Bay Area Rapid Transit, big-box store, collective bargaining, cross-subsidies, intermodal, James Watt: steam engine, Ponzi scheme, quantitative easing, railway mania, Ralph Waldo Emerson, refrigerator car, Silicon Valley, strikebreaker, too big to fail, trade route, transcontinental railway, traveling salesman, union organizing, urban sprawl
Attempts to hire unskilled “scabs” inevitably led to failure, since most railroad jobs required skills and experience. The managers were faced with uniquely powerful opponents who were further strengthened by their sheer numbers. It is hardly surprising that the railroads were fertile territory for union organization and, indeed, would become “the seedbed of the American labour movement.”21 The brotherhoods’ industrial and political strength meant that they could pioneer methods of collective bargaining, union organization, and grievance procedures that later would become universal across the labor movement. Railroad workers were able to exploit their skills by moving to rival railroads, often in the expectation of bettering themselves, even if by only a few cents an hour. This practice became so prevalent that those who drifted from job to job in this way became known as “boomers.” Railroad workers were involved in three major strikes in the last quarter of the nineteenth century, and although all of them were effectively defeats, these actions were an inspiration for the railroad workers to form strong unions.
Nothing better illustrates the continued importance of the railroads as late as 1964 than the fact that the results of the successful negotiation were announced by a jubilant President Lyndon B. Johnson, who was so eager to inform the nation that he rushed to CBS’s studios in a motorcade rather than wait for the cameras to come to the White House: “This settlement ends four and a half years of controversy. I tell you quite frankly there are few events that give me more faith in my country and more pride in the free collective bargaining process.”5 The fact that this statement came from a president from Texas shows the extent to which it is not only the role of the railroads that has changed in the intervening half century, as one could hardly imagine that more recent Texas president, George W. Bush, sorting out either the railroads or the unions. The double-manning issue had, in fact, not really been resolved and would continue to burden the railroads with unnecessary expense for many years, since the deal announced by Johnson covered only three years and the unions were soon, once again, pressing for firemen to be retained.
Albert Einstein, anti-communist, banking crisis, Berlin Wall, British Empire, central bank independence, centre right, collective bargaining, falling living standards, fiat currency, fixed income, full employment, German hyperinflation, housing crisis, Internet Archive, Johann Wolfgang von Goethe, mittelstand, offshore financial centre, Plutocrats, plutocrats, quantitative easing, rent control, risk/return, strikebreaker, trade route, zero-sum game
In effect, any deal.2 As a leading representative of the steel industry’s employers had said on 14 November: ‘It is not a question of money now . . . right now we must see that we survive the chaos.’3 Thus it was that some of Germany’s most diehard captains of industry affixed their names to the historic treaty between organised labour and capital in Germany that became known as the ‘Stinnes-Legien Agreement’. The agreement gave workers an eight-hour working day with no reduction in pay – a long-standing demand of organised labour – compulsory union recognition, mandatory collective bargaining and wage contracts, and the right to be represented in companies with more than fifty employees through ‘workers’ committees’. It also guaranteed that industry would re-employ every one of the millions of German men who would soon be demobilised. To ensure that these improvements would work in practice, trade union and employer representatives set up a ‘Central Working Group of Industrial and Commercial Employer and Employee Organisations of Germany’.
The Rentenbank’s composition and structure, and its crucial role in the desperately hoped-for currency reform, placed representatives of industrial and agricultural interests in a position of extraordinary power over the government and the Reichstag. Government records show that, on 15 November, the administrative committee of the Rentenbank paid a visit to the Chancellor. The official reason was the inauguration of the Rentenmark. However, actually, it seems, the committee’s members used the occasion to deliver a collective tirade calling for the abolition of the eight-hour day, the end of compulsory collective bargaining, reform of the unemployment relief system and a host of other pro-business reforms. The Rentenbank could threaten to – and frequently actually did – withhold credit from the government, and from any organisations it considered, from its highly conservative point of view, unworthy. The realisation of this led the Social Democratic deputy, Otto Wels, to declare in an angry speech to the Reichstag that the budgetary power of that body had seemingly been transferred to the Agrarian League and the Reich Association of German industry.
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, 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
Their membership has collapsed by around half from its peak in 1979. Their ranks did increase by 59,000 in 2013, but this was the first jump for a decade. In the private sector, the story is even bleaker. Only around 14 per cent of workers are organized, and many of those are former public-sector workers who have been privatized or contracted out. On the eve of Thatcherism, more than eight out of ten workers had their wages and conditions set by a collective bargaining agreement; but this figure has collapsed to less than three in ten. ‘I think there was a failure to face up to our diminishing power over that period,’ says Frances O’Grady, ‘partly because the economy was growing and the fact we were getting an ever smaller share of it for the people we represented was disguised in the fact that the cake was growing, so it didn’t hurt as much.’ Trade unions have been crippled for a variety of reasons.
Whereas one wing of the British Establishment continued to see the European Union as an essential pillar of British trade, another wing increasingly saw it as a threat to Britain’s new ruling ideology. To some on the left and in the labour movement, on the other hand, the EU seemed to offer some protection from the new Establishment. In the late 1980s the European Commission proposed a ‘Community Charter’, which included protections for trade unions and collective bargaining, gender equality, and health and safety standards. Thatcher savaged it as a ‘socialist charter’, and Conservative British governments secured the right of countries to opt out of its successor, the Social Charter. After all, such proposals were direct challenges to Establishment dogma. It was not until 1997, when New Labour came to power, that Britain signed up. The EU’s Working Time Directive granted workers a minimum number of holidays each year and imposed a forty-eight-hour-week maximum limit: New Labour opted out of the requirement on hours.
The Making of an Atlantic Ruling Class by Kees Van der Pijl
anti-communist, banking crisis, Berlin Wall, Boycotts of Israel, Bretton Woods, British Empire, capital controls, collective bargaining, colonial rule, cuban missile crisis, deindustrialization, deskilling, diversified portfolio, European colonialism, floating exchange rates, full employment, imperial preference, Joseph Schumpeter, liberal capitalism, mass immigration, means of production, North Sea oil, Plutocrats, plutocrats, profit maximization, RAND corporation, strikebreaker, trade liberalization, trade route, union organizing, uranium enrichment, urban renewal, War on Poverty
The Du Pont group, alienated by Hoover’s liberalism, was prominent among the backers of the project at this stage. However, Roosevelt’s appointment of a woman, Frances Perkins, over the opposition of the AFL, signalled a new approach to the mass of unorganized workers. Arguing that ‘unorganized as well as organized labour should be represented’54, the Administration inserted NRA’s famous section 7a, which recognized labour’s right to organize within the company and to engage in collective bargaining at the industry level. This everywhere encouraged the unorganized to organize, and trade unions to press new demands. However, strikers who turned to Washington for help in the face of employer victimization (which was extensive everywhere in the first years of the New Deal) quickly discovered that NRA chief Hugh Johnson and Secretary Perkins were more interested in the success of the integrative mechanisms of the NRA, and its impact on the macro-economy, than in any particular rights or struggles of the working class as such.55 Although the Supreme Court — a last bastion of economic liberalism — ruled the NRA unconstitutional in 1936, its assumptions still guided the Roosevelt Administration’s search for a corporatist format of industrial relations.
When an expansive policy was tried again by the new Chancellor of the Exchequer, Maudling, in 1962, it led to a new balance of payments crisis, forcing the Wilson government to make a deflationary turn again soon after its assumption of power in 1964.48 The Dutch Liberals, finally, had already entered the government in 1959, but the De Quay cabinet was of a marked conservative and narrowly Europeanist orientation except for the Atlanticist Ministry of Foreign Affairs. Still in 1960 and 1961, the government resorted to credit restrictions to put a brake on industrial expansion; the corporatist mechanisms of collective bargaining were abandoned from 1959 on. In the Defence Ministry, which was held by the Liberal Party VVD, the two tendencies, Atlantic and European, confronted one another, and following a serious conflict the Europeanist sphere-of-interest line triumphed. The initial minister, Unilever director Sydney van den Bergh, in the struggle over the choice of a new fighter plane then in progress seemed willing to contemplate the Northrop Freedom Fighter on the basis of a direct transaction with the Americans.
The Way We Eat: Why Our Food Choices Matter by Peter Singer, Jim Mason
agricultural Revolution, air freight, clean water, collective bargaining, dumpster diving, food miles, Hugh Fearnley-Whittingstall, Intergovernmental Panel on Climate Change (IPCC), Isaac Newton, means of production, rent control, urban sprawl, Whole Earth Review
To gain SA8000 certification, a facility must pass an independent audit that assesses its performance in nine areas: • Child Labor-with some limited exceptions, all workers must be at least 15 years old. ♦ Forced Labor-there must be no forced labor, which also means no prison labor and no debt bondage (forced labor to repay real or false debts). ♦ Health and Safety-the employer must provide a safe and healthy work environment; including access to bathrooms and safe drinking water. ♦ Freedom of Association and Right to Collective Bargaining-the employer must respect the workers' rights to form and join trade unions and bargain collectively. ♦ Discrimination-there can be no discrimination based on race, caste, origin, religion, disability, gender, sexual orientation, union or political affiliation, or age, and no sexual harassment. ♦ Discipline-no corporal punishment, mental or physical coercion, or verbal abuse may be used
Kindness and compassion toward all, humans and animals, is clearly better than indifference to the suffering of another sentient being. 4. Social Responsibility: Workers should have decent wages and working conditions. Minimally decent treatment for employees and suppliers precludes child labor, forced labor, and sexual harassment. Workplaces should be safe, and workers should have the right to form associations and engage in collective bargaining, if they so choose. There must be no discrimination on the basis of race, sex, or disabilities irrelevant to the job. Workers should receive a wage sufficient to cover their basic needs and those of dependent children. 5. Needs: Preserving life and health justifies more than other desires. A genuine need for food, to survive and nourish ourselves adequately, overrides less pressing considerations and justifies many things that might otherwise be wrong.
Keynes Hayek: The Clash That Defined Modern Economics by Nicholas Wapshott
airport security, banking crisis, Bretton Woods, British Empire, 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, 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
As Harrod explained, Keynes stressed that “it was important for [the committee] to understand that the mechanism on which we had come to place our exclusive reliance could only produce a downward adjustment through severe unemployment leading to cuts in money wages.”45 Keynes declared that savings and investment were out of kilter, and acknowledged that monetary pressures, in the form of high interest rates leading to an increase in the cost of borrowing to businesses, could only put downward pressure on profits and costs, such as wages. The result was unemployment. One problem in Britain in the 1920s, however, was that because of collective bargaining by trade unions, wages were “sticky” and could not be easily cut. In fact, because of a reduction in the length of the working week and the maintenance of wages due to trade union demands, wages had actually increased. Keynes warned the committee that “there has never been in modern or ancient history a community that has been prepared to accept without immense struggle a reduction in the general level of money income.”46 Though he denied to the committee that unemployment benefits had contributed to the “stickiness” in wage rates, likening the suggestion to those who blamed the provision of hospitals for encouraging ill health, in a radio broadcast he conceded that benefits for the unemployed had indeed added to the resistance of workers to countenance a reduction in wages.
., 38–40, 82–83, 203, 227, 326n Civilian Conservation Corps (CCC), 163 civil rights, 222–23, 240, 270, 292, 337n civil service, 250 Civil Works Administration (CWA), 163 Clark, J. B., 28 Clark, Kenneth, 95 Clarke, Peter, 279–80 classical economics, 73–74, 79–80, 101, 115, 124, 125–26, 128, 131, 146, 147–49, 150, 152–53, 169, 171, 172–73, 175, 178–79, 192, 197, 210, 232 Clemenceau, Georges, 4–5, 8–9, 11–12, 155 Clinton, Bill, 272–75, 276 coal industry, 9, 12, 18, 38, 259 Cold War, 234, 269, 274 Cole, G. D. H., 24 collective bargaining, 60 collectivism, 29, 144–45, 202, 219–20 Collectivist Economic Planning: Critical Studies on the Possibilities of Socialism (Hayek, ed.), 144–45 “Colloque Walter Lippmann,” 210–11 Columbia University, 28, 160, 216 Commerce Department, U.S., 166 Committee on Economic Information, 123–24 Committee on Economic Outlook, 61–62 Committee on Social Thought, 217–18 commodities, 52 communism, 9, 32, 87, 145, 191, 194, 196–97, 213, 221, 267, 287 Companion of Honour, 288 competition, 2, 34–35, 69, 179–81, 193, 268 composite rates of interest, 120–21 concentration camps, 151, 223 “Conditions of Equilibrium between the Production of Consumers’ Goods and the Production of Producers’ Goods, The” (Hayek), 75–76 Congress, U.S., 158, 165, 189, 221, 228–29, 235, 236, 237, 238, 239, 245, 271, 272–74, 275, 278, 279, 280, 281, 283 Congressional Budget Office (CBO), 274, 276 Connally, John, 242–43, 335n Conscience of a Conservative, The (Goldwater), 251–52 conscientious objectors, 8 conservatism, xiii–xiv, 17, 36–37, 94, 124–25, 135, 162, 203–6, 216, 220–21, 232, 233, 238, 242, 251–61, 268, 272, 274–75, 278, 281, 288, 292, 293, 296, 333n Conservative Party (Tories), 12, 33, 38, 40, 58, 83, 86, 123, 140, 203, 258–61, 295 Constitution, U.S., 204, 230, 292–93 Constitution of Liberty, The (Hayek), 218–23, 290 consumer credits, 77 consumer prices, 41, 49–50, 54–55, 76–77, 81, 117–18, 143–44, 184–87, 189, 191, 224, 229–30, 267–68 consumption, 81–82, 119–20, 127, 131, 143–44, 184–87, 191 contractions, monetary, 217, 248–49 “Contract with America,” 272–74, 278, 293 corporations, 145, 233, 262, 264, 267–68, 275, 293 corporatist states, 145, 293 corruption, 159, 250, 277, 278 Council of Economic Advisers, 229, 231–32, 236, 242, 244, 278 “creative destruction,” 294 Credit-Ansalt Bank, 83 credit derivatives, 275 credit policies, 25, 43, 55, 79, 84–85, 100, 117–18, 136–37, 142, 160, 188, 279, 280–81 Crimean War, 11 Cromwell, Oliver, 140 Croome, H.
India's Long Road by Vijay Joshi
Affordable Care Act / Obamacare, barriers to entry, Basel III, basic income, blue-collar work, Bretton Woods, business climate, capital controls, central bank independence, clean water, collapse of Lehman Brothers, collective bargaining, colonial rule, congestion charging, corporate governance, creative destruction, crony capitalism, decarbonisation, deindustrialization, demographic dividend, demographic transition, Doha Development Round, eurozone crisis, facts on the ground, failed state, financial intermediation, financial repression, first-past-the-post, floating exchange rates, full employment, germ theory of disease, Gini coefficient, global supply chain, global value chain, hiring and firing, income inequality, Indoor air pollution, Induced demand, inflation targeting, invisible hand, land reform, Mahatma Gandhi, manufacturing employment, Martin Wolf, means of production, microcredit, moral hazard, obamacare, Pareto efficiency, price mechanism, price stability, principal–agent problem, profit maximization, profit motive, purchasing power parity, quantitative easing, race to the bottom, randomized controlled trial, rent-seeking, reserve currency, rising living standards, school choice, school vouchers, secular stagnation, Silicon Valley, smart cities, South China Sea, special drawing rights, The Future of Employment, The Market for Lemons, too big to fail, total factor productivity, trade liberalization, transaction costs, universal basic income, urban sprawl, working-age population
Moreover, demands to make contract labour permanent are an issue over which trade unions frequently initiate strike action. The rigidities created by labour regulations are accentuated by the parts of IDA that govern the settlement of industrial disputes. While the Act mandates ‘conciliation’ between employers and workers as the first response to a ‘dispute’, it places much greater emphasis on adjudication by labour tribunals and courts than on collective bargaining. Cooperation between workers and employers is additionally hampered by the tendency, encouraged by the Trade Union Act, to have a multiplicity of unions, with no provision for recognizing any one of them as ‘representative’ of workers. In consequence, the employer-worker relationship is excessively litigious, and in the overloaded labour courts, there are hundreds of thousands of pending cases, which linger for years.
Section 9A should also be amended to give companies more freedom and flexibility in the assignment and redeployment of labour tasks. Secondly, the CLA needs to be recast to reduce the scope for administrative discretion by clarifying the circumstances in which contract labour can be used.43 Thirdly, the massive overload of labour laws should be streamlined and the inspections process made much more transparent.44 Fourthly, the involvement of the state in industrial disputes should be curtailed and the role of collective bargaining increased. The above reform agenda would obviously face political obstacles. Individual states would probably be able to make quicker progress, and a demonstration effect may lead others to follow suit. Article 254 of the Constitution permits states to pass laws (on subjects in the Concurrent List) that override central laws, provided they are permitted to do so by the President of India (who, in practice does whatever the central cabinet G r o w t h a n d t h e Em p l oy m e n t P r o b l e m [ 81 ] 82 decides).
Bonfire of the Vanities, Bretton Woods, clean water, collective bargaining, computerized trading, corporate raider, declining real wages, floating exchange rates, full employment, George Akerlof, George Gilder, Home mortgage interest deduction, income inequality, indoor plumbing, informal economy, invisible hand, Kenneth Arrow, knowledge economy, life extension, lump of labour, new economy, Nick Leeson, paradox of thrift, Paul Samuelson, Plutocrats, plutocrats, price stability, rent control, Ronald Reagan, Silicon Valley, trade route, very high income, working poor, zero-sum game
When it started to run persistently higher rates in the 1970s and 1980s, many economists attributed the differential to a more generous unemployment insurance system. But even as that system has become less generous, the unemployment gap has continued to widen—Canada’s current rate is 10 percent. Why? The Canadian economist Pierre Fortin points out that from 1992 to 1994 a startling 47 percent of his country’s collective bargaining agreements involved wage freezes—that is, precisely zero nominal wage change. Most economists would agree that high-unemployment economies like Canada suffer from inadequate real wage flexibility; Fortin’s evidence suggests, however, that the cause of that inflexibility lies not in structual, microeconomic problems but in the Bank of Canada’s excessive anti-inflationary zeal. In short, the belief that absolute price stability is a huge blessing, that it brings large benefits with few if any costs, rests not on evidence but on faith.
Making the Future: The Unipolar Imperial Moment by Noam Chomsky
Albert Einstein, Berlin Wall, Bretton Woods, British Empire, capital controls, collective bargaining, corporate governance, corporate personhood, creative destruction, deindustrialization, energy security, failed state, Fall of the Berlin Wall, financial deregulation, Frank Gehry, full employment, Howard Zinn, Joseph Schumpeter, kremlinology, liberation theology, Long Term Capital Management, market fundamentalism, Mikhail Gorbachev, Occupy movement, oil shale / tar sands, precariat, RAND corporation, Ronald Reagan, structural adjustment programs, The Great Moderation, too big to fail, uranium enrichment, Washington Consensus, WikiLeaks, working poor
By that time, even in Europe there was mounting concern about what labor historian Ronaldo Munck, citing Ulrich Beck, calls the “Brazilianization of the West . . . the spread of temporary and insecure employment, discontinuity and loose informality into Western societies that have hitherto been the bastions of full employment.” By now, an insult to Brazil, which is seeking to address such problems, not exacerbate them. The state-corporate war against unions has recently extended to the public sector, with legislation to ban collective bargaining and other elementary rights. Even in pro-labor Massachusetts, the House of Representatives voted right before May Day to sharply restrict the rights of police officers, teachers and other municipal employees to bargain over health care—essential matters in the United States, with its dysfunctional and highly inefficient privatized health care system. The rest of the world may associate May 1 with the struggle of American workers for basic rights, but in the United States that solidarity is suppressed in favor of a jingoist holiday.
CHAPTER 10 Usability as common courtesy WHY YOUR WEB SITE SHOULD BE A MENSCH1 1 Mensch: a German-derived Yiddish word originally meaning “human being.” A person of integrity and honor; “a stand-up guy”; someone who does the right thing. Sincerity: that’s the hard part. If you can fake that, the rest is easy. —OLD JOKE ABOUT A HOLLYWOOD AGENT SOME TIME AGO, I WAS BOOKED ON A FLIGHT TO DENVER. AS IT happened, the date of my flight also turned out to be the deadline for collective bargaining between the airline I was booked on and one of its unions. Concerned, I did what anyone would do: (a) Start checking Google News every hour to see if a deal had been reached, and (b) visit the airline’s Web site to see what they were saying about it. I was shocked to discover that not only was there nothing about the impending strike on the airline’s Home page, but there wasn’t a word about it to be found anywhere on the entire site.
The Economics of Inequality by Thomas Piketty, Arthur Goldhammer
affirmative action, basic income, Capital in the Twenty-First Century by Thomas Piketty, collective bargaining, conceptual framework, deindustrialization, endogenous growth, Gini coefficient, income inequality, low skilled workers, means of production, moral hazard, Pareto efficiency, purchasing power parity, Simon Kuznets, The Bell Curve by Richard Herrnstein and Charles Murray, very high income, working-age population
By the same token, there is no denying that the two Western countries in which wage inequalities have increased most since the 1970s, namely, the United States and the United Kingdom, are also the two countries in which the power of unions has decreased most, in significant part due to political opposition. Meanwhile, wage inequalities among employed workers have remained relatively stable in countries such as Germany and France, where the union coverage rate (that is, the percentage of workers covered by collective bargaining agreements) has remained relatively stable, even if the unionization rate (the percentage of workers belonging to unions) has decreased. This is a major reason for the contrasting evolution of wage inequalities in the West since the 1970s: it explains 20 to 40 percent of the observed variance (Card, 1992; Lemieux, 1993). This is totally overlooked by pure human capital theory and the theory of skill-biased technological change.
Usability as common courtesy WHY YOUR WEB SITE SHOULD BE A MENSCH1 1 Mensch: a German-derived Yiddish word originally meaning “human being.” A person of integrity and honor; “a stand-up guy”; someone who does the right thing. Sincerity: that’s the hard part. If you can fake that, the rest is easy. —OLD JOKE ABOUT A HOLLYWOOD AGENT Some time ago, I was booked on a flight to Denver. As it happened, the date of my flight also turned out to be the deadline for collective bargaining between the airline I was booked on and one of its unions. Concerned, I did what anyone would do: (a) Start checking Google News every hour to see if a deal had been reached, and (b) visit the airline’s Web site to see what they were saying about it. I was shocked to discover that not only was there nothing about the impending strike on the airline’s Home page, but there wasn’t a word about it to be found anywhere on the entire site.
The End of Loser Liberalism: Making Markets Progressive by Dean Baker
Asian financial crisis, banking crisis, Bernie Sanders, collateralized debt obligation, collective bargaining, corporate governance, currency manipulation / currency intervention, Doha Development Round, financial innovation, full employment, Home mortgage interest deduction, income inequality, inflation targeting, invisible hand, manufacturing employment, market clearing, market fundamentalism, medical residency, patent troll, pets.com, pirate software, price stability, quantitative easing, regulatory arbitrage, rent-seeking, Robert Shiller, Robert Shiller, Silicon Valley, too big to fail, transaction costs
German employers have been supportive of the country’s short-work policy in large part because they recognize the advantage of having workers on their payrolls whose hours can be increased quickly when demand grows, as opposed to the disadvantage of spending time and money hiring new workers. However, there are other features of Germany’s labor market, which do not exist in the United States, that make short work relatively more attractive there. First and foremost, Germany has a far higher union coverage rate, with approximately 43 percent of its workers covered by collective bargaining agreements compared to about 13 percent in the United States. This means that German employers are more likely to have to negotiate layoffs with a union rather than unilaterally lay off workers. Second, firms with more than 250 employees are required to have a works council, which would play a role in any layoff decisions. In addition, employment protection rules in Germany do not allow employers to dismiss most workers at will.
Imperial Ambitions: Conversations on the Post-9/11 World by Noam Chomsky, David Barsamian
British Empire, collective bargaining, cuban missile crisis, declining real wages, failed state, feminist movement, Howard Zinn, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Joseph Schumpeter, liberation theology, Monroe Doctrine, offshore financial centre, Ronald Reagan, The Wealth of Nations by Adam Smith, Thomas L Friedman, Upton Sinclair, uranium enrichment, Westphalian system
In fact, one of the main reasons behind the passionate effort to destroy unions is that they are one of the few mechanisms by which ordinary people can get together and compensate for the concentration of capital and power. That’s why the United States has a very violent labor history, with repeated efforts to destroy unions anytime they make any progress. In fact, Missouri and Indiana have recently abolished the right for public-sector workers to engage in collective bargaining.6 The federal government has done pretty much the same. Part of the Bush administration’s Department of Homeland Security scam was to strip a hundred and eighty thousand government workers of union rights.7 Why? Are they going to work less efficiently if they’re unionized? No. It’s just that you have to eliminate the threat that people might get together and try to achieve things like decent health care, decent wages, or anything that benefits the population and doesn’t benefit the rich.
Albert Einstein, Ayatollah Khomeini, Cal Newport, clean water, collective bargaining, corporate governance, creative destruction, Credit Default Swap, haute couture, Honoré de Balzac, Howard Zinn, illegal immigration, income inequality, Joseph Schumpeter, Naomi Klein, offshore financial centre, Ralph Nader, Ronald Reagan, single-payer health, statistical model, uranium enrichment
It dated back to the “scientific management” methods of Frederick Taylor, who, in the name of efficiency, “‘streamlined’ assembly plants by conducting time-motion studies of each worker, breaking down each movement into a number of discrete steps, and then reorganizing them in a more efficient sequence by eliminating all unnecessary movements.”26 This dehumanization led Taylor’s disciples to take another approach. While some conservative followers focused solely on “productivity and efficiency,” liberal “business leaders, bankers, politicians, trade-union leaders, and academic social scientists” during the 1920s “tried to forge a viable corporate order.”27 They sought to establish a stable corporate state by implementing worker “uplift” programs, such as collective bargaining, profit-sharing, company magazines, insurance, pension plans, safety reform, workmen’s compensation, restricted work hours and the “living wage.” The idea that “better living and working conditions would render him [the worker] more cooperative, loyal, content, and, thus, more efficient and ‘level-headed’ . . . also carried over into such aspects of the industrial-betterment movement as gardens, restaurants, clubs, recreational facilities, bands, and medical departments.”28 “Since at least a century ago, a number of engineers, businessmen, and scientists realized that technology was no longer the limiting factor of production; now, it was man that could be engineered, and made still more efficient, given the right motivation,” González wrote, quoting from historian David Noble’s book America by Design.29 “However there are two aspects of today’s industrial relations that are genuinely new: first, the specific psychological techniques used to motivate workers; and, second, the increased number of companies willing to experiment with these techniques.”30 Toyota pioneered the new approach.
Waiting for Superman: How We Can Save America's Failing Public Schools by Participant Media, Karl Weber
She has advocated a number of flexible, proactive approaches to improve teaching and learning, including a new template for teacher development and evaluation; a fresh approach to due process for misconduct cases; ensuring teachers have the tools, time, and trust to succeed; and forging collaborative labor-management relationships. More than fifty AFT local unions and their district partners have begun work on new systems to develop and evaluate teachers based on the AFT model. Since becoming AFT president, Weingarten has been personally involved in helping several AFT affiliates achieve innovative, reform-minded collective bargaining agreements. She also initiated the AFT Innovation Fund, supported by AFT member dues and substantial grants from private philanthropic organizations, to help AFT affiliates develop innovative, bottom-up reform projects with their district partners. I respect what Davis Guggenheim and his team set out to do in their film Waiting for “Superman”—to show how far we are from the great American ideal of providing every child with the excellent education they need and deserve.
Swimming With Sharks: My Journey into the World of the Bankers by Joris Luyendijk
activist fund / activist shareholder / activist investor, bank run, barriers to entry, Bonfire of the Vanities, bonus culture, collapse of Lehman Brothers, collective bargaining, corporate raider, credit crunch, Credit Default Swap, Emanuel Derman, financial deregulation, financial independence, Flash crash, glass ceiling, Gordon Gekko, high net worth, hiring and firing, information asymmetry, inventory management, job-hopping, light touch regulation, London Whale, Nick Leeson, offshore financial centre, regulatory arbitrage, Satyajit Das, selection bias, shareholder value, sovereign wealth fund, the payments system, too big to fail
Only three in 100 can be that ‘excellent performer’, he added, while everybody knows that the bottom few per cent get ‘chopped off’. Stories and anecdotes like this sometimes made me conscious of how far Britain had travelled in the past 30 years. As a product of a typical north-west European country, I had been brought up to believe in the welfare state, job protections, safety nets and collective bargaining. These are now unfashionable notions in London’s financial centre. My discomfort only grew when I heard the way investment bankers in the front office spoke of sudden dismissals. A round of redundancies was a ‘reduction of headcount’ or a ‘clean-up’ of ‘bodies’ or ‘bums on seats’. A senior investment banker said that in his department colleagues who had suddenly disappeared were always referred to as having resigned.
The Wisdom of Finance: Discovering Humanity in the World of Risk and Return by Mihir Desai
activist fund / activist shareholder / activist investor, Albert Einstein, Andrei Shleifer, assortative mating, Benoit Mandelbrot, Brownian motion, capital asset pricing model, carried interest, collective bargaining, corporate governance, corporate raider, discounted cash flows, diversified portfolio, Eugene Fama: efficient market hypothesis, financial innovation, follow your passion, George Akerlof, Gordon Gekko, greed is good, housing crisis, income inequality, information asymmetry, Isaac Newton, Jony Ive, Kenneth Rogoff, Louis Bachelier, moral hazard, Myron Scholes, new economy, out of africa, Paul Samuelson, Pierre-Simon Laplace, principal–agent problem, Ralph Waldo Emerson, random walk, risk/return, Robert Shiller, Robert Shiller, Ronald Coase, Silicon Valley, Steve Jobs, The Market for Lemons, The Nature of the Firm, The Wealth of Nations by Adam Smith, Tim Cook: Apple, transaction costs, zero-sum game
In fact, American declared bankruptcy with close to $5 billion in cash on hand. As Horton made clear, the untenable nature of their position was actually “their cost position relative to their competitors,” a gap reflecting labor contracts and pension obligations. Bankruptcy would allow them to renegotiate those contracts and put unions under increased pressure to agree to concessions. One of the first steps they took was to nullify several parts of their collective bargaining agreements with labor, something that was inconceivable without the protection of the bankruptcy code. Arpey reflected, “I believe it’s important to the character of the company and its ultimate long-term success to do your very best to honor those commitments. It is not good thinking—either at the corporate level or at the personal level—to believe you can simply walk away from your circumstances.”
The Price of Inequality: How Today's Divided Society Endangers Our Future by Joseph E. Stiglitz
affirmative action, Affordable Care Act / Obamacare, airline deregulation, Andrei Shleifer, banking crisis, barriers to entry, Basel III, battle of ideas, Berlin Wall, capital controls, Carmen Reinhart, Cass Sunstein, central bank independence, collapse of Lehman Brothers, collective bargaining, colonial rule, corporate governance, Credit Default Swap, Daniel Kahneman / Amos Tversky, Dava Sobel, declining real wages, deskilling, Exxon Valdez, Fall of the Berlin Wall, financial deregulation, financial innovation, Flash crash, framing effect, full employment, George Akerlof, Gini coefficient, income inequality, income per capita, indoor plumbing, inflation targeting, information asymmetry, invisible hand, jobless men, John Harrison: Longitude, John Markoff, John Maynard Keynes: Economic Possibilities for our Grandchildren, Kenneth Arrow, Kenneth Rogoff, labour market flexibility, London Interbank Offered Rate, lone genius, low skilled workers, Marc Andreessen, Mark Zuckerberg, market bubble, market fundamentalism, mass incarceration, medical bankruptcy, microcredit, moral hazard, mortgage tax deduction, negative equity, obamacare, offshore financial centre, paper trading, Pareto efficiency, patent troll, Paul Samuelson, payday loans, price stability, profit maximization, profit motive, purchasing power parity, race to the bottom, rent-seeking, reserve currency, Richard Thaler, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, shareholder value, short selling, Silicon Valley, Simon Kuznets, spectrum auction, Steve Jobs, technology bubble, The Chicago School, The Fortune at the Bottom of the Pyramid, The Myth of the Rational Market, The Spirit Level, The Wealth of Nations by Adam Smith, too big to fail, trade liberalization, transaction costs, trickle-down economics, ultimatum game, uranium enrichment, very high income, We are the 99%, wealth creators, women in the workforce, zero-sum game
Financial liberalization Over the past three decades, U.S. financial institutions have argued strongly for the free mobility of capital. Indeed, they have become the champions of the rights of capital—over the rights of workers or even political rights.19 Rights simply specify what various economic players are entitled to: the rights workers have sought include, for instance, the right to band together, to unionize, to engage in collective bargaining, and to strike. Many nondemocratic governments severely restrict these rights, but even democratic governments circumscribe them. So too, the owners of capital may have rights. The most fundamental right of the owners of capital is that they not be deprived of their property. But again, even in a democratic society, these rights are restricted; under the right of eminent domain, the state can take away somebody’s property for public purpose, but there must be “due process” and appropriate compensation.
At least within the United States and most European countries, the 1 percent normally doesn’t get its way without a fight. But finance ministries often use the IMF to enforce their perspectives, to adopt the institutional arrangements and the regulatory and macroeconomic frameworks that are in the interests of the 1 percent. Even Greece, to secure its 2011 bailout by the European Union, was forced to pass laws affecting not only the budget but also the health sector, the rights of unions in collective bargaining, and the minimum wage. Even when globalization doesn’t circumscribe democracy through global agreements or as part of an international “rescue,” it circumscribes democracy through competition. One of the reasons, we were told, that we had to have weak financial regulations was that if we didn’t, financial firms would move overseas. In response to a proposal to tax bank bonuses, London firms threatened to leave the country.
Empire by Michael Hardt, Antonio Negri
Berlin Wall, Bretton Woods, collective bargaining, colonial rule, conceptual framework, discovery of the americas, Dissolution of the Soviet Union, equal pay for equal work, European colonialism, Fall of the Berlin Wall, feminist movement, Francis Fukuyama: the end of history, global village, Haight Ashbury, informal economy, invention of the printing press, invisible hand, labour mobility, late capitalism, low skilled workers, mass immigration, means of production, Monroe Doctrine, New Urbanism, open borders, Peace of Westphalia, post-industrial society, postindustrial economy, Scramble for Africa, The Wealth of Nations by Adam Smith, union organizing, urban planning, William of Occam
The previous European and Japanese forms of state-based public assistance and the development of the corporativist state (in both its liberal and national-socialist forms) were thus substantially transformed. The ‘‘social state’’ was born, or really the global disciplinary state, which took into account more widely and deeply the life cycles of populations, ordering their production and reproduction within a scheme of collective bargaining ﬁxed by a stable monetary regime. With the extension of U.S. hegemony, the dollar became king. The initiative of the dollar (through the Marshall Plan in Europe and the economic reconstruction in Japan) was the ineluctable path to postwar reconstruction; the establishment of the dollar’s hegemony (through the Bretton Woods accords) was tied to the stability of all the standards of value; and U.S. military power determined the ultimate exercise of sovereignty with respect to each of the dominant and subordinate capitalist countries.
In our times, however, civil society no longer serves as the adequate point of mediation between capital and sovereignty. The structures and institutions that constitute it are today progressively withering away. We have argued elsewhere that this withering can be grasped clearly in terms of the decline of the dialectic between the capitalist state and labor, that is, in the decline of the effectiveness and role of labor unions, the decline of collective bargaining with labor, and the decline of the representation of labor in the constitu- CAPITALIST SOVEREIGNTY tion.6 The withering of civil society might also be recognized as concomitant with the passage from disciplinary society to the society of control (see Section 2.6). Today the social institutions that constitute disciplinary society (the school, the family, the hospital, the factory), which are in large part the same as or closely related to those understood as civil society, are everywhere in crisis.
Apple II, Bob Noyce, collective bargaining, computer age, George Gilder, informal economy, John Markoff, laissez-faire capitalism, low skilled workers, means of production, Menlo Park, Murray Gell-Mann, open economy, Richard Feynman, Richard Feynman, Ronald Reagan, Sand Hill Road, Silicon Valley, Silicon Valley startup, Steve Jobs, Steve Wozniak, union organizing, War on Poverty, women in the workforce, Yom Kippur War
An hour spent chatting and sharing coffee with your boss’s boss humanized the white-collar workers and blurred the traditionally sharp line between “labor” and “management.” When in 1962 a union attempted to organize Fairchild production workers, it was voted down. The result must have pleased Noyce. The strikes he witnessed when he worked at Philco had left a bad taste in his mouth, and he also thought that collective bargaining by definition undermined individual striving. He believed that it was far better to let a person rise on the basis of talent rather than due to seniority or some other bureaucratic requirement. Noyce asked human resources chief Yelverton and a young man named Jerry Levine whom Noyce had hired to handle “special assignments,” to codify some of the ideas they had been discussing in a policy and procedures book.
“I felt we brought the unionization problem on ourselves,” Bowers explains. “If we had followed our own policies, it never would have happened.” The timing of Intel’s misstep coincided with a spike in union-organizing activity throughout Silicon Valley. In 1974, the United Electrical Workers (UE) created an organizing committee specifically to target the Silicon Valley labor force. Many in the labor movement thought that workers might be more open to collective bargaining after the massive 1974 layoffs, especially if someone pointed out to them that with every passing year, more semiconductor production jobs moved offshore. A worker’s sense of insecurity may have been heightened by the increasingly austere and antiseptic nature of semiconductor production work. Even Intel’s head of manufacturing, Gene Flath, admits that semiconductor fabs had become increasingly “scary places to work” by the mid-1970s.
affirmative action, anti-communist, Ayatollah Khomeini, Berlin Wall, British Empire, carbon footprint, centre right, collective bargaining, energy security, full employment, Gunnar Myrdal, illegal immigration, immigration reform, low skilled workers, mass immigration, Mikhail Gorbachev, Naomi Klein, North Sea oil, open economy, postnationalism / post nation state, Potemkin village, Ronald Reagan, World Values Survey
Such legal action begins in member states’ courts but goes to the ECJ if a point of law needs clarification With the ratification of the Lisbon Treaty, the Charter of Fundamental Rights referred to by the Nice agreement acquires a legal quality. In theory, any European law contrary to the values and objectives identified by the charter can now be declared null and void by the European Court of Justice. For example, the Court may force a rewriting of national laws regarding social and economic policy such as strikes, collective bargaining, and working hours. The Lisbon agreement added new social objectives to the charter, including full employment, eradication of poverty, and rights preventing social exclusion and discrimination. Two countries refused to sign the Charter of Fundamental Rights. Britain cited concerns over its ability to control social and economic policy and Poland was suspicious that its Catholicinspired moral and family policies would be open to challenge.
The new village green: living light, living local, living large by Stephen Morris
back-to-the-land, Buckminster Fuller, clean water, cleantech, collective bargaining, Columbine, Community Supported Agriculture, computer age, cuban missile crisis, deindustrialization, discovery of penicillin, distributed generation, energy security, energy transition, Fellow of the Royal Society, financial independence, Firefox, index card, Indoor air pollution, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Kevin Kelly, Louis Pasteur, Mahatma Gandhi, mass immigration, McMansion, Menlo Park, Negawatt, off grid, peak oil, rolodex, Silicon Valley, Steve Jobs, Stewart Brand, Whole Earth Catalog, Whole Earth Review
Instead, they believed that it was dishonest and deceitful to ask a higher price than what they would accept. Their prices were thus set and non-negotiable. According to A Quaker Book of Wisdom, written recently by Robert Lawrence Smith, a practicing Quaker: Early in the history of the labor movement, Quaker businessmen recognized that unions were essential as a means of communication between management and workers. Many saw collective bargaining at its best as similar to the search for consensus that goes on at Quaker Meetings for Business. Viewed this way, negotiations become a method for bringing about an enlightened resolution or synthesis of different points of view. One result is that, by and large, workers at Quaker businesses have been able to reach fair contract terms without resorting to strikes. ... The fact is, many Quaker businesses have demonstrated that proﬁt and social responsibility are not only compatible, but interdependent.
The Pirates of Somalia: Inside Their Hidden World by Jay Bahadur
At the time of writing, the highest recorded ransom had reached a staggering $9.5 million, paid in November 2010 to free the oil supertanker Samho Dream. Later generations of pirates owed their extravagant multimillion-dollar ransoms to the negotiating abilities of the pioneers. Indeed, the triumvirate of Afweyne, Boyah, and Garaad Mohammed could be compared to the hard-nosed leaders of a newly formed labour union—though in their struggle for higher wages they admittedly employed stronger-arm tactics than typically seen in collective bargaining. The lucrative ransoms for which they fought predictably attracted a new influx of independent groups to the industry—what I refer to as the “third wave” of piracy in Puntland. Many of these pirates were opportunists without histories in fishing, often disaffected inland youth. Yet their recent entry into the field did not stop them from telling any apologist reporter who would listen that persecution by foreign fishing fleets had driven them to their desperate course
Albert Einstein, barriers to entry, Berlin Wall, collective bargaining, congestion charging, Corn Laws, David Ricardo: comparative advantage, decarbonisation, Deng Xiaoping, Fall of the Berlin Wall, George Akerlof, information asymmetry, invention of movable type, John Nash: game theory, John von Neumann, Kenneth Arrow, market design, Martin Wolf, moral hazard, new economy, Pearl River Delta, price discrimination, Productivity paradox, race to the bottom, random walk, rent-seeking, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, sealed-bid auction, second-price auction, second-price sealed-bid, Shenzhen was a fishing village, special economic zone, spectrum auction, The Market for Lemons, Thomas Malthus, trade liberalization, Vickrey auction
See also competition Bruges, Belgium, 201 in China, 252 Bulow, Jeremy, 167 impact on free markets, 135 bureaucracy, 188 medical savings accounts, 132–33 and prices, 63, 64, 70 cabs, 179 and responsibility, 131–32 Cafédirect, 33 “revealed preference,” 94 Camelback houses, 96 and scarcity, 17 Cameroon Christies, 164 climate, 190 civil service, 194–95 corruption, 178, 182–86, 186–89, climate change, 220 189–93 Coca-Cola, 117 described, 177–79 cocktail bars, 52 • 264 • I N D E X coffee in China, 233 and commuters, 5–8 impact on development, 197–200 fair trade coffee, 33, 42, 229, 254n. and institutions, 189, 190–93 and free markets, 228–29 and taxation, 185, 187–88 prices, 6–8, 12–13, 31–35, 38, 39– Cosi, 6, 7, 13 40 Costa Coffee, 31–34, 39, 42 and rents, 8–11, 12–13, 31–35 coupons, 36 and scarcity, 31–35 Crescent, 171 collective bargaining, 25 crime, 23–25 collectives, 236 Cuba, 226 collusion, 16, 160–65 Cultural Revolution, 232, 239 command economies, 235 currency exchange, 207 Common Agricultural Policy, 217, 218 cynicism, 155 compact discs (CDs), 53 Czech Republic, 121 comparative advantage, 201–11, 225, 236 dams, 193–97 competition deductibles, 119, 124 among professionals, 26–27 demand, 26 avoiding, 160 democracy, 199, 226 and comparative advantage, 201– Deng Xiaoping, 235, 237, 240, 242 11, 225, 236 development entry into marketplaces, 21 capital investments, 237–41 and free markets, 78 in China, 180–81, 231–32, 233, international, 26, 203 237–41, 249–52 preventing, 23–25 and foreign direct investment, and prices, 68 212–13, 214, 215–16, 246, 247 and production choices, 66 impact of corruption, 197–200 and profitability, 24 and institutions, 189 and rents, 15, 21–23 irrigation projects, 193–97 and starting positions, 73 and poverty, 193–97, 197–200, sustainable competitive advantage, 228–30 19 dictatorships, 182–86, 187 UK spectrum auction, 169 digital media, 53 complexity of economic systems, 2, diminishing returns, 180 10, 14, 65, 66 discounts, 36, 56 computer industry, 51–52, 80 disease, 53–54, 58, 251.
air freight, banking crisis, big-box store, BRICs, carbon footprint, collateralized debt obligation, collective bargaining, creative destruction, credit crunch, David Ricardo: comparative advantage, decarbonisation, energy security, food miles, hydrogen economy, illegal immigration, immigration reform, Intergovernmental Panel on Climate Change (IPCC), invisible hand, James Watt: steam engine, Just-in-time delivery, market clearing, megacity, North Sea oil, oil shale / tar sands, oil shock, peak oil, profit maximization, reserve currency, South Sea Bubble, the market place, The Wealth of Nations by Adam Smith, trade liberalization, zero-sum game
Now all those trade barriers have been removed and firms are footloose and fancy free to move to wherever they can make the most money. As more and more of the world’s factories were uprooted from North America and Europe and sent overseas to cheap Asian labor markets, unions back home lost their bargaining power. When jobs crossed the ocean, wage concessions quickly replaced wage gains in new collective bargaining agreements in once highly protected and highly paying industries like autos and steel. With labor costs typically accounting for as much as two-thirds of the cost of a typical manufactured good, containing wages meant controlling prices. That’s ultimately why the US supported globalization and agreed to give up all those jobs to China. Globalization changes the quid pro quo to lower prices for fewer jobs.
Stealth of Nations by Robert Neuwirth
accounting loophole / creative accounting, big-box store, British Empire, call centre, collective bargaining, corporate governance, full employment, Hernando de Soto, illegal immigration, income inequality, informal economy, invisible hand, Jane Jacobs, jitney, joint-stock company, Joseph Schumpeter, megacity, microcredit, New Urbanism, pirate software, profit motive, Shenzhen was a fishing village, Simon Kuznets, special economic zone, The Wealth of Nations by Adam Smith, thinkpad, upwardly mobile, Vilfredo Pareto, yellow journalism
For the first time, their workweek will be limited to, at most, six days; they will have the right to higher wages if they work more than forty hours in any week; and they can qualify for an extremely short paid-vacation time (three days of vacation after twelve months of work, as guaranteed by the law, is skimpy by almost any standard). The Bill of Rights even applies to people who work off the books. Sadly, however, the legislature rejected a broader set of proposals that would have guaranteed domestic workers two weeks’ notice before they could be dismissed, severance pay, and the right to join a union and engage in collective bargaining. Alfonso Morales, the planning professor at the University of Wisconsin who financed his graduate degree by selling cut-price hardware at Chicago’s Maxwell Street Market, offers another in-between proposal that would enable governments to recapture some off-the-books cash without preventing people from surviving in difficult times. He suggests that street markets are crucial for development, and that municipal, state, and national governments in the United States and elsewhere have to learn how to work with them.
Dreaming in Public: Building the Occupy Movement by Amy Lang, Daniel Lang/levitsky
Bay Area Rapid Transit, bonus culture, British Empire, clean water, cognitive dissonance, collective bargaining, corporate governance, corporate personhood, crowdsourcing, David Graeber, deindustrialization, facts on the ground, glass ceiling, housing crisis, Kibera, late capitalism, mass incarceration, Naomi Klein, Occupy movement, oil shale / tar sands, out of africa, Plutocrats, plutocrats, Port of Oakland, Rosa Parks, Saturday Night Live, Slavoj Žižek, structural adjustment programs, the medium is the message, too big to fail, trade liberalization, union organizing, upwardly mobile, urban renewal, War on Poverty, We are Anonymous. We are Legion, We are the 99%, white flight, working poor
With humility in front of you, our comrades, we would like to tell of our experience. Encampments and occupations are common in Mexico and comrades joke about the lack of space to put up more encampments. But this isn’t by chance and was won through struggle. One recent example: in 2006, in the state of Oaxaca, the local teachers’ union set up an encampment in the center of Oaxaca City during their annual collective bargaining. One morning, on 14 June, the state police tried to take down the camp of the teachers and the city rose up, they not only retook the plaza but kicked the police out of the city. The Commune of Oaxaca was born on this day and the following six months transformed Oaxaca and the participants in the uprising. Like you, they also had problems of repression and representation. Against the repression they put up thousands of barricades each night to protect the population from the murderous paramilitaries of Governor Ulises Ruiz, who they struggled to kick out.
algorithmic trading, asset allocation, asset-backed security, automated trading system, backtesting, Black Swan, Brownian motion, business process, capital asset pricing model, centralized clearinghouse, collapse of Lehman Brothers, collateralized debt obligation, collective bargaining, computerized trading, diversification, equity premium, fault tolerance, financial intermediation, fixed income, high net worth, implied volatility, index arbitrage, information asymmetry, interest rate swap, inventory management, law of one price, Long Term Capital Management, Louis Bachelier, margin call, market friction, market microstructure, martingale, Myron Scholes, New Journalism, p-value, paper trading, performance metric, profit motive, purchasing power parity, quantitative trading / quantitative ﬁnance, random walk, Renaissance Technologies, risk tolerance, risk-adjusted returns, risk/return, Sharpe ratio, short selling, Small Order Execution System, statistical arbitrage, statistical model, stochastic process, stochastic volatility, systematic trading, trade route, transaction costs, value at risk, yield curve, zero-sum game
These quotes provide market participants with information about other market participants’ valuations. The process repeats until most market participants agree on a range of acceptable prices; the equilibrium price band can then be considered achieved. The process of tâtonnement, therefore, not only incorporates information into prices but also shapes beliefs of market participants through a form of collective bargaining process. The discipline that studies the price formation process is known as market microstructure. Trading on market microstructure is the holy grail R 127 128 HIGH-FREQUENCY TRADING Time (GMT) 7:00:01 6:00:01 5:00:01 4:00:01 3:00:01 1.094 1.0935 1.093 1.0925 1.092 1.0915 1.091 1.0905 1.09 1.0895 1.089 2:00:01 USD/CHF Price Level Price Adjustment Period News release time News Release Time 06:42:20:491 06:38:42:450 06:35:48:931 06:31:40:095 06:27:16:752 06:22:56:927 06:17:57:625 06:14:39:905 06:11:22:955 06:08:00:711 06:05:30:391 05:58:53:276 05:51:56:382 05:45:29:923 05:35:09:464 05:28:12:164 05:14:09:406 05:00:22:013 04:51:44:015 04:44:41:972 04:31:40:802 Bid Ask 04:19:53:737 USD/CHF Price Level Price Adjustment Period 1.095 1.094 1.093 1.092 1.091 1.09 1.089 1.088 1.087 1.086 1.085 Time FIGURE 10.1 USD/CHF price adjustments to Swiss unemployment news, recorded on July 8, 2009 at hourly (top panel) and tick-by-tick (bottom panel) frequencies.
The End of Growth by Jeff Rubin
Ayatollah Khomeini, Bakken shale, banking crisis, Berlin Wall, British Empire, call centre, carbon footprint, collateralized debt obligation, collective bargaining, Credit Default Swap, credit default swaps / collateralized debt obligations, decarbonisation, deglobalization, energy security, eurozone crisis, Exxon Valdez, Fall of the Berlin Wall, fiat currency, flex fuel, full employment, ghettoisation, global supply chain, Hans Island, happiness index / gross national happiness, housing crisis, hydraulic fracturing, illegal immigration, income per capita, Intergovernmental Panel on Climate Change (IPCC), Jane Jacobs, labour mobility, McMansion, Monroe Doctrine, moral hazard, new economy, Occupy movement, oil shale / tar sands, oil shock, peak oil, Ponzi scheme, quantitative easing, race to the bottom, reserve currency, Ronald Reagan, South China Sea, sovereign wealth fund, The Chicago School, The Death and Life of Great American Cities, Thomas Malthus, Thorstein Veblen, too big to fail, uranium enrichment, urban planning, urban sprawl, women in the workforce, working poor, Yom Kippur War, zero-sum game
The rest of the adjustment would come from cutting government spending and raising taxes to reduce the size of the deficits that must be funded. The pending battle to pare down America’s huge budget deficits won’t be limited to showdowns in Congress, like the ones over the debt ceiling that rocked markets during the summer of 2011 and again at the end of 2012. It’s likely to spill over into the streets, just as it has in Europe. In Wisconsin, that has already happened, after the Republican governor rescinded the collective bargaining rights of state employees, claiming the state’s fiscal crisis was so severe that taxpayers could no longer afford to give state workers the right to strike. Demonstrations by disenfranchised workers on the steps of the Capitol building in Madison looked eerily similar to protests on the other side of the Atlantic. North of the border, Canada’s federal government, which has yet to face a debt crisis, has nevertheless already attempted to short-circuit the right to strike for federal civil servants, as well as airline and postal workers.
back-to-the-land, balance sheet recession, bank run, banking crisis, Berlin Wall, capital controls, centre right, citizen journalism, collapse of Lehman Brothers, collective bargaining, creative destruction, credit crunch, Credit Default Swap, currency manipulation / currency intervention, currency peg, eurozone crisis, Fall of the Berlin Wall, floating exchange rates, Francis Fukuyama: the end of history, full employment, ghettoisation, illegal immigration, informal economy, land tenure, low skilled workers, mass immigration, means of production, megacity, Mohammed Bouazizi, Naomi Klein, Network effects, New Journalism, Occupy movement, price stability, quantitative easing, race to the bottom, rising living standards, short selling, Slavoj Žižek, Stewart Brand, strikebreaker, union organizing, We are the 99%, Whole Earth Catalog, WikiLeaks, Winter of Discontent, women in the workforce, working poor, working-age population, young professional
The danger is not that civil conflict breaks out because of one egregious rant by Glenn Beck or Al Sharpton—but that at a certain point the apparatus of government becomes paralyzed, as it was in August 2011, and the mechanisms for resolving conflict break down. Tahrir comes to America It is in this context that we have to consider the Madison, Wisconsin revolt, which began on 14 February 2011. Madison was sparked when Republican Governor Scott Walker attacked public sector workers’ collective bargaining rights and pensions. As tens of thousands of teachers, firefighters and students protested outside the state capitol, four days after the fall of Mubarak, Lin Weeks (@weeks89) tweeted: ‘Weirdly high number of signs ref’ing egypt. And now chanting: “From Egypt/ to Wisconsin/ power to the people”.’10 The demonstrations continued on successive days, swelling from 30,000 to 75,000 protesters in the first week and becoming a national media spectacle.
Postcapitalism: A Guide to Our Future by Paul Mason
Alfred Russel Wallace, bank run, banking crisis, banks create money, Basel III, basic income, Bernie Madoff, Bill Gates: Altair 8800, bitcoin, Branko Milanovic, Bretton Woods, BRICs, British Empire, business process, butterfly effect, call centre, capital controls, Cesare Marchetti: Marchetti’s constant, Claude Shannon: information theory, collaborative economy, collective bargaining, Corn Laws, corporate social responsibility, creative destruction, credit crunch, currency manipulation / currency intervention, currency peg, David Graeber, deglobalization, deindustrialization, deskilling, discovery of the americas, Downton Abbey, drone strike, en.wikipedia.org, energy security, eurozone crisis, factory automation, financial repression, Firefox, Fractional reserve banking, Frederick Winslow Taylor, full employment, future of work, game design, income inequality, inflation targeting, informal economy, information asymmetry, intangible asset, Intergovernmental Panel on Climate Change (IPCC), Internet of things, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph Schumpeter, Kenneth Arrow, Kevin Kelly, knowledge economy, knowledge worker, late capitalism, low skilled workers, market clearing, means of production, Metcalfe's law, money: store of value / unit of account / medium of exchange, mortgage debt, Network effects, new economy, Norbert Wiener, Occupy movement, oil shale / tar sands, oil shock, Paul Samuelson, payday loans, Pearl River Delta, post-industrial society, precariat, price mechanism, profit motive, quantitative easing, race to the bottom, RAND corporation, rent-seeking, reserve currency, RFID, Richard Stallman, Robert Gordon, Robert Metcalfe, secular stagnation, sharing economy, Stewart Brand, structural adjustment programs, supply-chain management, The Future of Employment, the scientific method, The Wealth of Nations by Adam Smith, Transnistria, union organizing, universal basic income, urban decay, urban planning, Vilfredo Pareto, wages for housework, women in the workforce
Neoliberalism was designed and implemented by visionary politicians: Pinochet in Chile; Thatcher and her ultra-conservative circle in Britain; Reagan and the Cold Warriors who brought him to power. They’d faced massive resistance from organized labour and they’d had enough. In response, these pioneers of neoliberalism drew a conclusion that has shaped our age: that a modern economy cannot coexist with an organized working class. Consequently, they resolved to smash labour’s collective bargaining power, traditions and social cohesion completely. Unions had come under attack before – but always from paternalist politicians who had proffered the lesser of two evils: in place of militancy, they’d encouraged a ‘good’ workforce, defined by moderate socialism, unions run by agents of the state. And they helped build stable, socially conservative communities that could be the breeding ground for soldiers and servants.
Capitalism: Money, Morals and Markets by John Plender
activist fund / activist shareholder / activist investor, Andrei Shleifer, asset-backed security, bank run, Berlin Wall, Big bang: deregulation of the City of London, Black Swan, bonus culture, Bretton Woods, business climate, Capital in the Twenty-First Century by Thomas Piketty, central bank independence, collapse of Lehman Brothers, collective bargaining, computer age, Corn Laws, corporate governance, creative destruction, credit crunch, Credit Default Swap, David Ricardo: comparative advantage, deindustrialization, Deng Xiaoping, discovery of the americas, diversification, Eugene Fama: efficient market hypothesis, eurozone crisis, failed state, Fall of the Berlin Wall, fiat currency, financial innovation, financial intermediation, Fractional reserve banking, full employment, God and Mammon, Gordon Gekko, greed is good, Hyman Minsky, income inequality, inflation targeting, information asymmetry, invention of the wheel, invisible hand, Isaac Newton, James Watt: steam engine, Johann Wolfgang von Goethe, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Meriwether, joint-stock company, Joseph Schumpeter, labour market flexibility, liberal capitalism, light touch regulation, London Interbank Offered Rate, London Whale, Long Term Capital Management, manufacturing employment, Mark Zuckerberg, market bubble, market fundamentalism, mass immigration, means of production, Menlo Park, money market fund, moral hazard, moveable type in China, Myron Scholes, Nick Leeson, Northern Rock, Occupy movement, offshore financial centre, paradox of thrift, Paul Samuelson, Plutocrats, plutocrats, price stability, principal–agent problem, profit motive, quantitative easing, railway mania, regulatory arbitrage, Richard Thaler, rising living standards, risk-adjusted returns, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, shareholder value, short selling, Silicon Valley, South Sea Bubble, spice trade, Steve Jobs, technology bubble, The Chicago School, The Great Moderation, the map is not the territory, The Wealth of Nations by Adam Smith, Thorstein Veblen, time value of money, too big to fail, tulip mania, Upton Sinclair, Veblen good, We are the 99%, Wolfgang Streeck, zero-sum game
The subsequent explosion in tax revenues is explained by the growth of the welfare state. Where previously tax had been regarded chiefly as a means of financing wars, it now provided the wherewithal for health care, education, pensions and infrastructure, as well as defence. This was a cornerstone of the post-war settlement between labour and capital, which included increased welfare and free collective bargaining for workers, together with a political guarantee of full employment underpinned by Keynesian demand management. The post-war social contract implicitly recognised that the utilitarian ethical basis of capitalism – that is, its ability to deliver the greatest good of the greatest number through the self-interested actions of individuals – involved potential conflicts with social justice.
Unequal Britain: Equalities in Britain Since 1945 by Pat Thane
Ayatollah Khomeini, British Empire, call centre, collective bargaining, equal pay for equal work, full employment, gender pay gap, mass immigration, moral panic, Neil Kinnock, old-boy network, pensions crisis, sexual politics, Stephen Hawking, unpaid internship, women in the workforce
In the 1980s, strong leadership, better relations with the trade unions and a succession of legislative amendments and court decisions increased the effectiveness of the EPA and SDA.39 An investigation by the EOC into alleged discrimination at Barclays Bank in 1983 focused the banking industry’s attention on inequalities women faced in promotion, training and fair treatment in other respects, and prompted the emergence of ‘equal opportunities’ policies in large companies.40 Again, judicial decisions at the European level, on cases often brought with the support of the EOC, were an important driver. A ruling in 1983 judged unlawful the exemption from the Equal Treatment Directive of employees in private households, businesses with fewer than five employees and partnerships with fewer than five partners. This resulted in a new Sex Discrimination Act in 1986, which outlawed discrimination in collective bargaining agreements and extended anti-discrimination law to small businesses.41 The appointment in 1989 of Valerie Amos, a Black woman, as chief executive (until 1994) helped to boost the EOC’s credibility on race issues and also to cement stronger links with the Commission for Racial Equality (CRE). There was a relatively weak relationship between the equality experts, lawyers and policy advisers, and the WLM.
The Physics of Wall Street: A Brief History of Predicting the Unpredictable by James Owen Weatherall
Albert Einstein, algorithmic trading, Antoine Gombaud: Chevalier de Méré, Asian financial crisis, bank run, beat the dealer, Benoit Mandelbrot, Black Swan, Black-Scholes formula, Bonfire of the Vanities, Bretton Woods, Brownian motion, butterfly effect, capital asset pricing model, Carmen Reinhart, Claude Shannon: information theory, collateralized debt obligation, collective bargaining, dark matter, Edward Lorenz: Chaos theory, Edward Thorp, Emanuel Derman, Eugene Fama: efficient market hypothesis, financial innovation, fixed income, George Akerlof, Gerolamo Cardano, Henri Poincaré, invisible hand, Isaac Newton, iterative process, John Nash: game theory, Kenneth Rogoff, Long Term Capital Management, Louis Bachelier, mandelbrot fractal, martingale, Myron Scholes, new economy, Paul Lévy, Paul Samuelson, prediction markets, probability theory / Blaise Pascal / Pierre de Fermat, quantitative trading / quantitative ﬁnance, random walk, Renaissance Technologies, risk-adjusted returns, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Coase, Sharpe ratio, short selling, Silicon Valley, South Sea Bubble, statistical arbitrage, statistical model, stochastic process, The Chicago School, The Myth of the Rational Market, tulip mania, V2 rocket, Vilfredo Pareto, volatility smile
To put these pressure tanks to good use, they needed to figure out how to use them safely — that is, they needed to figure out the conditions under which ruptures would occur. But this seemed an impossible task. The ruptures seemed, quite simply, random. Until Sornette noticed a pattern. Normally, the parts of a pressure tank are more or less independent, like workers in the nineteenth century, before collective bargaining. If you kick a pressure tank, for instance, there might be some vibrations, but these will die off pretty quickly, and even if you manage to put a dent in the part of the tank where your foot made contact (unlikely), you won’t do any damage to the rest of the tank. Likewise, if a small fracture appears under these circumstances, it won’t produce a rupture. This is a bit like when you try to pop an only partially inflated balloon: a pin doesn’t have much of an effect.
Death of the Liberal Class by Chris Hedges
1960s counterculture, Albert Einstein, Berlin Wall, call centre, clean water, collective bargaining, Columbine, corporate governance, deindustrialization, desegregation, Donald Trump, Fall of the Berlin Wall, Henry Ford's grandson gave labor union leader Walter Reuther a tour of the company’s new, automated factory…, hive mind, housing crisis, Howard Zinn, illegal immigration, Jane Jacobs, Jaron Lanier, Lao Tzu, Pearl River Delta, post scarcity, profit motive, Ralph Nader, Ronald Reagan, strikebreaker, the scientific method, The Wisdom of Crowds, Tobin tax, union organizing, Unsafe at Any Speed, Upton Sinclair, WikiLeaks, working poor, Works Progress Administration
Faith in human institutions was at the core of the Social Gospel, a Christian movement articulated at the turn of the century in books such as Christianity and the Social Crisis, published in 1907, and Theology for the Social Gospel, published a decade later, both of them written by the leading proponent of the movement, Walter Rauschenbusch. The Social Gospel replaced a preoccupation with damnation and sin with a belief in human progress. It spawned the Chautauqua movement, which had hundreds of chapters across the country. Chautauquan communities supported labor unions, collective bargaining, social services for the poor, hygiene programs, and universal education, although the movement was not free from many of the prejudices of its age and excluded Roman Catholics and African Americans. Organizations such as the Labor Temple in New York City, the University Settlement House in Chicago, and Washington Gladden’s crusades to better the working conditions in Columbus, Ohio, were part of this intoxicating fusion of religion and reform, the Christian churches’ version of the liberal class belief in the power of reform and human progress through good government.
Conscious Capitalism, With a New Preface by the Authors: Liberating the Heroic Spirit of Business by John Mackey, Rajendra Sisodia, Bill George
Berlin Wall, Buckminster Fuller, business process, carbon footprint, collective bargaining, corporate governance, corporate social responsibility, creative destruction, crony capitalism, cross-subsidies, en.wikipedia.org, Everything should be made as simple as possible, Fall of the Berlin Wall, fear of failure, Flynn Effect, income per capita, invisible hand, Jeff Bezos, job satisfaction, lone genius, Mahatma Gandhi, microcredit, Occupy movement, profit maximization, Ralph Waldo Emerson, shareholder value, six sigma, Steve Jobs, Steven Pinker, The Fortune at the Bottom of the Pyramid, The Wealth of Nations by Adam Smith, too big to fail, union organizing, wealth creators, women in the workforce, zero-sum game
The industrial part of the economy became largely unionized by the middle of the twentieth century. Private-sector union membership peaked at 36 percent in 1945 but has since declined to only 6.9 percent.2 Public employee unions were mostly illegal (the argument being that government is a monopoly lacking market competition to check union power) until President Kennedy in 1962 issued an executive order permitting collective bargaining in federal bureaucracies. Since then, public employee unions have grown tremendously and now represent about 36 percent of all public workers.3 Compelling arguments have been made that public employee unions are raising the cost of government tremendously and that they threaten the long-term solvency of many local, state, and federal governments.4 Whole Foods Market employs over sixty-seven thousand people, and none are unionized, despite the fact that we operate in a highly unionized segment of the economy.
Airbus A320, airline deregulation, airport security, Atul Gawande, call centre, Captain Sullenberger Hudson, collective bargaining, inflight wifi, low cost carrier, Maui Hawaii, Mercator projection, New Urbanism, pattern recognition, race to the bottom, Skype, Tenerife airport disaster, US Airways Flight 1549, zero-sum game
How much do you think a pilot should be paid? What is your passage worth? That’s a tough one to answer, and it sets up a trap. Does a baseball player deserve $10 million a year? Or, turning it around, does a teacher or a social worker deserve $24,000? That’s making a moral judgment on a market-determined product. Pilots aren’t paid what they’re worth; they’re paid what they can get, through negotiation and collective bargaining. But, just for fun, pretend you’re traveling from New York to San Francisco on an airline whose pilots are compensated by voluntary passenger donations. A cup is passed around at the conclusion of each flight. How much is safe transport across the continent worth to you? How much would you put in the cup? In practice, you’re putting in about twelve dollars. When you average out the pay rates of the biggest airlines, the captain of a Boeing 767 (a typical plane for this route) makes $190 per flight hour.
A Brief History of Neoliberalism by David Harvey
affirmative action, Asian financial crisis, Berlin Wall, Bretton Woods, business climate, 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
This system conferred benefits such as expanding export markets (most obviously for Japan but also unevenly across South America and to some other countries of South-East Asia), but attempts to export ‘development’ to much of the rest of the world largely stalled. For much of the Third World, particularly Africa, embedded liberalism remained a pipe dream. The subsequent drive towards neoliberalization after 1980 entailed little material change in their impoverished condition. In the advanced capitalist countries, redistributive politics (including some degree of political integration of working-class trade union power and support for collective bargaining), controls over the free mobility of capital (some degree of financial repression through capital controls in particular), expanded public expenditures and welfare state-building, active state interventions in the economy, and some degree of planning of development went hand in hand with relatively high rates of growth. The business cycle was successfully controlled through the application of Keynesian fiscal and monetary policies.
The Impulse Society: America in the Age of Instant Gratification by Paul Roberts
2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, 3D printing, accounting loophole / creative accounting, activist fund / activist shareholder / activist investor, Affordable Care Act / Obamacare, American Society of Civil Engineers: Report Card, asset allocation, business process, Cass Sunstein, centre right, choice architecture, collateralized debt obligation, collective bargaining, computerized trading, corporate governance, corporate raider, corporate social responsibility, creative destruction, crony capitalism, David Brooks, delayed gratification, double helix, factory automation, financial deregulation, financial innovation, fixed income, full employment, game design, greed is good, If something cannot go on forever, it will stop - Herbert Stein's Law, impulse control, income inequality, inflation targeting, invisible hand, job automation, John Markoff, Joseph Schumpeter, knowledge worker, late fees, Long Term Capital Management, loss aversion, low skilled workers, mass immigration, new economy, Nicholas Carr, obamacare, Occupy movement, oil shale / tar sands, performance metric, postindustrial economy, profit maximization, Report Card for America’s Infrastructure, reshoring, Richard Thaler, rising living standards, Robert Shiller, Robert Shiller, Rodney Brooks, Ronald Reagan, shareholder value, Silicon Valley, speech recognition, Steve Jobs, technoutopianism, the built environment, The Predators' Ball, the scientific method, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, total factor productivity, Tyler Cowen: Great Stagnation, Walter Mischel, winner-take-all economy
Even before the crash of 1929, reformers such as Theodore Roosevelt and Woodrow Wilson had sought to use government’s vast scale and power to reorder a marketplace too focused on short-term gratification, both corporate and individual. Monopolies such as Standard Oil and the railroad trusts were broken up and regulated. Workers were slowly empowered by a minimum wage and laws protecting collective bargaining (which gradually forced corporations to make peace with their unions). Consumers were shielded with regulations from unsafe products, tainted food, and predatory lenders, and from the volatility of shortsighted speculators. Government also countered the underinvestment in public goods by spending heavily on education, research, and especially infrastructure (everything from roads and bridges to irrigation and reclamation projects), which then encouraged private industry to step up its own investments.
The Meritocracy Myth by Stephen J. McNamee
affirmative action, Affordable Care Act / Obamacare, Bernie Madoff, British Empire, collective bargaining, computer age, conceptual framework, corporate governance, deindustrialization, delayed gratification, demographic transition, desegregation, deskilling, equal pay for equal work, estate planning, failed state, fixed income, gender pay gap, Gini coefficient, glass ceiling, helicopter parent, income inequality, informal economy, invisible hand, job automation, joint-stock company, labor-force participation, low-wage service sector, marginal employment, Mark Zuckerberg, mortgage debt, mortgage tax deduction, new economy, New Urbanism, obamacare, occupational segregation, old-boy network, pink-collar, Plutocrats, plutocrats, Ponzi scheme, post-industrial society, prediction markets, profit motive, race to the bottom, random walk, school choice, Scientific racism, Steve Jobs, The Bell Curve by Richard Herrnstein and Charles Murray, The Spirit Level, The Wealth of Nations by Adam Smith, too big to fail, trickle-down economics, upwardly mobile, We are the 99%, white flight, young professional
More recently, unions have increased representation in arenas of the labor force not traditionally highly unionized, such as public workers and service workers. Public-sector workers, for instance, now have a rate of union membership (35.9 percent) more than five times higher than that of private-sector workers (6.6 percent) (Greenhouse 2013). However, it is illegal for most public workers to strike, and the right of public unions even to collectively bargain has been challenged and is an especially contentious issue. Reversing the decline of unions and restoring more balance to management–labor negotiations could potentially help to make the system more equal and more equitable than it is. Another version of strengthening the relative power of workers is to establish more worker owned and controlled businesses. This is a challenge since most unions and workers do not have the resources to buy businesses outright; indeed, most employee-owned business are acquired as high-risk rescues when businesses are failing and workers would otherwise lose their jobs.
How to Speak Money: What the Money People Say--And What It Really Means by John Lanchester
asset allocation, Basel III, Bernie Madoff, Big bang: deregulation of the City of London, bitcoin, Black Swan, blood diamonds, Bretton Woods, BRICs, Capital in the Twenty-First Century by Thomas Piketty, Celtic Tiger, central bank independence, collapse of Lehman Brothers, collective bargaining, commoditize, creative destruction, credit crunch, Credit Default Swap, crony capitalism, Dava Sobel, David Graeber, disintermediation, double entry bookkeeping, en.wikipedia.org, estate planning, financial innovation, Flash crash, forward guidance, Gini coefficient, global reserve currency, high net worth, High speed trading, hindsight bias, income inequality, inflation targeting, interest rate swap, Isaac Newton, Jaron Lanier, joint-stock company, joint-stock limited liability company, Kodak vs Instagram, liquidity trap, London Interbank Offered Rate, London Whale, loss aversion, margin call, McJob, means of production, microcredit, money: store of value / unit of account / medium of exchange, moral hazard, Myron Scholes, negative equity, neoliberal agenda, New Urbanism, Nick Leeson, Nikolai Kondratiev, Nixon shock, Northern Rock, offshore financial centre, oil shock, open economy, paradox of thrift, Plutocrats, plutocrats, Ponzi scheme, purchasing power parity, pushing on a string, quantitative easing, random walk, rent-seeking, reserve currency, Richard Feynman, Richard Feynman, Right to Buy, road to serfdom, Ronald Reagan, Satoshi Nakamoto, security theater, shareholder value, Silicon Valley, six sigma, South Sea Bubble, sovereign wealth fund, Steve Jobs, survivorship bias, The Chicago School, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, trickle-down economics, Washington Consensus, wealth creators, working poor, yield curve
The practical aspect is the more visible, so I’ll start with that. It involves policies that are designed to favor business, entrepreneurship, and the individual; to reduce the role of the state; to cut public spending; to increase the individual’s possibilities and responsibilities, both for success and for failure; to promote free trade, and accordingly to eliminate protectionist barriers and tariffs; to reduce the roles of unions and collective bargaining; to minimize taxes; to pursue policies that encourage wealth creators and to trust in the process whereby that wealth trickles down to other sectors of the economy; to move enterprises from public to private ownership. In the background of these specific policies are philosophical positions that are concerned, in the final analysis, with the role and importance of the individual. Neoliberalism sees the route to the greater collective good in the empowerment of the individual.
Skygods: The Fall of Pan Am by Robert Gandt
Airbus A320, airline deregulation, Ayatollah Khomeini, Berlin Wall, collective bargaining, hiring and firing, invisible hand, Maui Hawaii, RAND corporation, Tenerife airport disaster, yield management, Yogi Berra, Yom Kippur War
Martinside had no particular feelings about the strike one way or another. There were no gut-burning, Bastille-storming, banner-waving issues at stake. The pilots were on strike because they were union members and that’s what the union had declared. The check pilots were flying because they worked for management and that’s what management had declared. Both sides were doing their jobs in the collective bargaining process. But it was more complicated than that. A note appeared in Rob Martinside’s mailbox: I presume that by now you have seen the light and resigned your check pilot position. If not, consider our friendship ended. It was signed by a friend from his new-hire class. Another friend called up to say he thought Martinside was a gutless traitor. A man on the picket line spat at him as he walked past.
Twilight of the Elites: America After Meritocracy by Chris Hayes
affirmative action, Affordable Care Act / Obamacare, asset-backed security, barriers to entry, Berlin Wall, Bernie Madoff, carried interest, circulation of elites, Climategate, Climatic Research Unit, collapse of Lehman Brothers, collective bargaining, creative destruction, Credit Default Swap, dark matter, David Brooks, David Graeber, deindustrialization, Fall of the Berlin Wall, financial deregulation, fixed income, full employment, George Akerlof, Gunnar Myrdal, hiring and firing, income inequality, Jane Jacobs, jimmy wales, Julian Assange, Kenneth Arrow, Mark Zuckerberg, mass affluent, mass incarceration, means of production, meta analysis, meta-analysis, money market fund, moral hazard, Naomi Klein, Nate Silver, peak oil, Plutocrats, plutocrats, Ponzi scheme, Ralph Waldo Emerson, rolodex, The Spirit Level, too big to fail, University of East Anglia, Vilfredo Pareto, We are the 99%, WikiLeaks, women in the workforce
Then a respected labor representative for the United Steelworkers, Miller was chosen by a player search committee that was casting around for an effective leader with experience in contracts and pension plans. He immediately went to work impressing upon his players the rudiments of union consciousness—solidarity—and putting it into practice with a series of strikes. By 1968, Miller had negotiated baseball’s first collective bargaining agreement, raising baseball’s minimum salary for the first time in twenty years. Four years later the players struck for the first time. It would be the first of many. In each strike the union held, the owners conceded, and the players walked away with concrete and valuable contract improvements. If the median American wage earner had been able to join a Marvin Miller union, that wage earner would have seen his or her inflation-adjusted wages increase from $4,938 to $62,717 over the same period of time (1966 to 1982).
Undoing the Demos: Neoliberalism's Stealth Revolution by Wendy Brown
Affordable Care Act / Obamacare, bitcoin, Branko Milanovic, Capital in the Twenty-First Century by Thomas Piketty, collective bargaining, corporate governance, credit crunch, crowdsourcing, David Brooks, Food sovereignty, haute couture, immigration reform, income inequality, invisible hand, labor-force participation, late capitalism, means of production, new economy, obamacare, occupational segregation, Philip Mirowski, Ronald Reagan, sexual politics, shareholder value, sharing economy, The Chicago School, the market place, The Wealth of Nations by Adam Smith, Thomas Malthus, too big to fail, trickle-down economics, Washington Consensus, Wolfgang Streeck, young professional, zero-sum game
Since the decision, lower court judges have cited the law more than one hundred times to turn back class-action lawsuits, vindicating Vanderbilt University law professor Brian Fitzpatrick’s claim that it was not merely favorable to business but “a game-changer.”5 In June 2011, following a series of state and federal legislative actions limiting the powers of organized labor, the Wisconsin Supreme Court upheld a state law gutting the collective-bargaining power of public unions. (Wages may still be negotiated, but work conditions 152 u n d o in g t h e d e m o s and benefits may not.) 6 The state supreme court decision, upheld in federal appeals court in 2013, is a death blow to organized labor in the public sector.7 Also in June 2011, in Wal-Mart Stores, Inc. v. Dukes et al, the largest employment-discrimination case in history, the Supreme Court turned back a class-action suit against Wal-Mart in which 1.5 million women sought back pay for gender discrimination.
Equal Is Unfair: America's Misguided Fight Against Income Inequality by Don Watkins, Yaron Brook
3D printing, Affordable Care Act / Obamacare, Apple II, barriers to entry, Berlin Wall, Bernie Madoff, blue-collar work, business process, Capital in the Twenty-First Century by Thomas Piketty, Cass Sunstein, collective bargaining, colonial exploitation, corporate governance, correlation does not imply causation, creative destruction, Credit Default Swap, crony capitalism, David Brooks, deskilling, Edward Glaeser, Elon Musk, en.wikipedia.org, financial deregulation, immigration reform, income inequality, indoor plumbing, inventory management, invisible hand, Isaac Newton, Jeff Bezos, Jony Ive, laissez-faire capitalism, Louis Pasteur, low skilled workers, means of production, minimum wage unemployment, Naomi Klein, new economy, obamacare, Peter Singer: altruism, Peter Thiel, profit motive, rent control, Ronald Reagan, Silicon Valley, Skype, statistical model, Steve Jobs, Steve Wozniak, The Spirit Level, too big to fail, trickle-down economics, Uber for X, urban renewal, War on Poverty, wealth creators, women in the workforce, working poor, zero-sum game
Looking at four aspects of economic freedom—property rights, sound money, international trade, and regulation—de la Escosura finds that, after declining sharply during the New Deal and World War II period, economic freedom expanded in the post-war period as significant parts of the New Deal regulatory regime were rolled back, and continued to expand until the early 1970s when it once again contracted.17 Regardless of what one thinks of de la Escosura’s index, however, there is no justification whatever for attributing the rapid growth of the post-war era to the policies enshrined by the Inequality Narrative: pro-union laws, high tax rates, and a growing welfare state. Unions First of all, it’s important to distinguish between unions, which can be valuable organizations, and pro-union legislation, which gives unions coercive power at the expense of employers and non-unionized workers. Employees who freely choose to join a union (which their employer freely chooses to deal with) can benefit from collective bargaining. But, economist Henry Hazlitt warns, “it is easy, as experience has proved, for unions, particularly with the help of one-sided labor legislation which puts compulsions solely on employers, to go beyond their legitimate functions, to act irresponsibly, and to embrace shortsighted and antisocial policies.”18 Unfortunately, that is precisely what happened during the mid-twentieth century.
Throwing Rocks at the Google Bus: How Growth Became the Enemy of Prosperity by Douglas Rushkoff
3D printing, activist fund / activist shareholder / activist investor, Airbnb, algorithmic trading, Amazon Mechanical Turk, Andrew Keen, bank run, banking crisis, barriers to entry, bitcoin, blockchain, Burning Man, business process, buy low sell high, California gold rush, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, centralized clearinghouse, citizen journalism, clean water, cloud computing, collaborative economy, collective bargaining, colonial exploitation, Community Supported Agriculture, corporate personhood, corporate raider, creative destruction, crowdsourcing, cryptocurrency, disintermediation, diversified portfolio, Elon Musk, Erik Brynjolfsson, ethereum blockchain, fiat currency, Firefox, Flash crash, full employment, future of work, gig economy, Gini coefficient, global supply chain, global village, Google bus, Howard Rheingold, IBM and the Holocaust, impulse control, income inequality, index fund, iterative process, Jaron Lanier, Jeff Bezos, jimmy wales, job automation, Joseph Schumpeter, Kickstarter, loss aversion, Lyft, Marc Andreessen, Mark Zuckerberg, market bubble, market fundamentalism, Marshall McLuhan, means of production, medical bankruptcy, minimum viable product, Naomi Klein, Network effects, new economy, Norbert Wiener, Oculus Rift, passive investing, payday loans, peer-to-peer lending, Peter Thiel, post-industrial society, profit motive, quantitative easing, race to the bottom, recommendation engine, reserve currency, RFID, Richard Stallman, ride hailing / ride sharing, Ronald Reagan, Satoshi Nakamoto, Second Machine Age, shareholder value, sharing economy, Silicon Valley, Snapchat, social graph, software patent, Steve Jobs, TaskRabbit, The Future of Employment, trade route, transportation-network company, Turing test, Uber and Lyft, Uber for X, unpaid internship, Y Combinator, young professional, zero-sum game, Zipcar
These “alliances” will last an average of eighteen months, during which a new product or division might be launched, a financial problem rectified, or a creative challenge solved. The project itself becomes part of the worker’s portfolio, and the worker is engaged less as an employee than as a partner in the project. The devil is always in the details: Isn’t this a recipe for exploitation? When everyone’s essentially a work for hire, what happens to the collective bargaining power once offered by labor unions? Would COBRA cover people’s health insurance between engagements that might be years apart? What about pensions? Again, imagination and flexibility are required. New forms of organized labor—like the Freelancers Union—will emerge, and older, preindustrial ones like guilds will likely be retrieved. These sorts of changes don’t happen overnight but incrementally and after much trial and error.
affirmative action, Affordable Care Act / Obamacare, Bernie Sanders, Bretton Woods, carried interest, clean water, collateralized debt obligation, collective bargaining, computerized trading, creative destruction, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, David Brooks, desegregation, diversification, diversified portfolio, Donald Trump, financial innovation, Goldman Sachs: Vampire Squid, Gordon Gekko, greed is good, illegal immigration, interest rate swap, laissez-faire capitalism, London Interbank Offered Rate, Long Term Capital Management, margin call, market bubble, medical malpractice, money market fund, moral hazard, mortgage debt, obamacare, passive investing, Ponzi scheme, prediction markets, quantitative easing, reserve currency, Ronald Reagan, Sergey Aleynikov, short selling, sovereign wealth fund, too big to fail, trickle-down economics, Y2K, Yom Kippur War
Candidate Obama similarly laughed at the notion that reimporting cheap drugs from Canada was unsafe, but when he became president his administration ultimately rejected reimportation over safety issues. His campaign take on taxing “Cadillac” health plans (a major McCain campaign idea) was just as eloquent; candidate Obama was one of the few politicians to grasp that a lot of these so-called Cadillac plans were union benefits that had been negotiated up in exchange for concessions on salary in collective bargaining. “John McCain calls these plans ‘Cadillac plans,’ ” Obama said in October 2008. “Now in some cases, it may be that a corporate CEO is getting too good a deal. But what if you’re a line worker making a good American car like the Cadillac? What if you’re one of the steelworkers … and you’ve given up wage increases in exchange for better health care?” It wasn’t just the promise, it was the candidate’s nuanced understanding of issues like this, added to a seemingly rare willingness to educate the public about these matters, that impressed voters like me before the election.
Networks of Outrage and Hope: Social Movements in the Internet Age by Manuel Castells
access to a mobile phone, banking crisis, call centre, centre right, citizen journalism, cognitive dissonance, collective bargaining, conceptual framework, crowdsourcing, currency manipulation / currency intervention, disintermediation, en.wikipedia.org, housing crisis, income inequality, microcredit, Mohammed Bouazizi, Occupy movement, offshore financial centre, Port of Oakland, social software, statistical model, We are the 99%, web application, WikiLeaks, World Values Survey, young professional, zero-sum game
There were multiple proposals of various natures, voted on in the General Assemblies, but little effort to translate them into a policy campaign going beyond combating the effects of mortgage foreclosures or financial abuses on borrowers and consumers. The list of most frequently mentioned demands debated in various occupations hints at the extraordinary diversity of the movement’s targets: controlling financial speculation, particularly high frequency trading; auditing the Federal Reserve; addressing the housing crisis; regulating overdraft fees; controlling currency manipulation; opposing the outsourcing of jobs; defending collective bargaining and union rights; reducing income inequality; reforming tax law; reforming political campaign finance; reversing the Supreme Court’s decision allowing unlimited campaign contributions from corporations; banning bailouts of companies; controlling the military-industrial complex; improving the care of veterans; limiting terms for elected politicians; defending freedom on the Internet; assuring privacy on the Internet and in the media; combating economic exploitation; reforming the prison system; reforming health care; combating racism, sexism, and xenophobia; improving student loans; opposing the Keystone pipeline and other environmentally predatory projects; enacting policies against global warming; fining and controlling BP and similar oil spillers; enforcing animal rights; supporting alternative energy sources; critiquing personal leadership and vertical authority, beginning with a new democratic culture in the camps; and watching out for co-optation in the political system (as happened with the Tea Party).
Rogue States by Noam Chomsky
anti-communist, Asian financial crisis, Berlin Wall, Branko Milanovic, Bretton Woods, capital controls, collective bargaining, colonial rule, creative destruction, cuban missile crisis, declining real wages, deskilling, Edward Snowden, experimental subject, Fall of the Berlin Wall, floating exchange rates, labour market flexibility, labour mobility, land reform, liberation theology, Mikhail Gorbachev, Monroe Doctrine, new economy, oil shock, RAND corporation, Silicon Valley, strikebreaker, structural adjustment programs, Tobin tax, union organizing, Washington Consensus
By the time the Reaganites had completed their work, the US was far enough off the spectrum so that the International Labor Organization, which rarely criticizes the powerful, issued a recommendation that the US conform to international standards, in response to an AFL-CIO complaint about strikebreaking by resort to “permanent replacement workers.”46 Apart from South Africa, no other industrial country tolerated these methods to ensure that Article 23 remains empty words; and with subsequent developments in South Africa, the US may stand in splendid isolation in this particular respect, though it has yet to achieve British standards, such as allowing employers to use selective pay increases to induce workers to reject union and collective bargaining rights.47 Reviewing some of the mechanisms used to render Article 23 inoperative, Business Week reported that from the early Reagan years, “US industry has conducted one of the most successful anti-union wars ever, illegally firing thousands of workers for exercising their rights to organize.” “Unlawful firings occurred in one-third of all representation elections in the late ‘80s, vs. 8 percent in the late ‘60s.”
Priceless: The Myth of Fair Value (And How to Take Advantage of It) by William Poundstone
availability heuristic, Cass Sunstein, collective bargaining, Daniel Kahneman / Amos Tversky, delayed gratification, Donald Trump, East Village, en.wikipedia.org, endowment effect, equal pay for equal work, experimental economics, experimental subject, feminist movement, game design, German hyperinflation, Henri Poincaré, high net worth, index card, invisible hand, John von Neumann, Kenneth Arrow, laissez-faire capitalism, Landlord’s Game, loss aversion, market bubble, mental accounting, meta analysis, meta-analysis, Nash equilibrium, new economy, Paul Samuelson, payday loans, Philip Mirowski, Potemkin village, price anchoring, price discrimination, psychological pricing, Ralph Waldo Emerson, RAND corporation, random walk, RFID, Richard Thaler, risk tolerance, Robert Shiller, Robert Shiller, rolodex, Steve Jobs, The Chicago School, The Wealth of Nations by Adam Smith, ultimatum game, working poor
Inevitably, word of the NBC offer leaked out. It was soon all over the entertainment news. The network brass must have hoped that everyone would appreciate that Seinfeld was a special case and that a blue-sky $5 million offer did not set a precedent. Actors at all levels of the TV food chain thought otherwise. Over the next few years, star—and sidekick—salary demands escalated as never before. In 2002, the leads of Friends collectively bargained their way to $1 million per episode. That was $1 million each for the six “friends.” Ray Romano was making $800,000 an episode for Everybody Loves Raymond, and Frasier’s Kelsey Grammer was the leader with $1.6 million an episode. James Gandolfini shut down The Sopranos after he found out he was only making as much money as the housekeeper on Frasier. What is a TV star worth? For that matter, what’s a construction foreman, ballplayer, or U.S. president worth?
3D printing, Airbnb, Amazon Web Services, Andy Kessler, banking crisis, barriers to entry, basic income, Benevolent Dictator For Life (BDFL), bitcoin, blockchain, Burning Man, business climate, call centre, car-free, cloud computing, collaborative consumption, collaborative economy, collective bargaining, commoditize, congestion charging, creative destruction, crowdsourcing, cryptocurrency, decarbonisation, don't be evil, Elon Musk, en.wikipedia.org, ethereum blockchain, Ferguson, Missouri, Firefox, frictionless, Gini coefficient, hive mind, income inequality, index fund, informal economy, Intergovernmental Panel on Climate Change (IPCC), Internet of things, Jane Jacobs, Jeff Bezos, jimmy wales, job satisfaction, Kickstarter, Lean Startup, Lyft, means of production, megacity, Minecraft, minimum viable product, Network effects, new economy, Oculus Rift, openstreetmap, optical character recognition, pattern recognition, peer-to-peer, peer-to-peer lending, peer-to-peer model, Richard Stallman, ride hailing / ride sharing, Ronald Coase, Ronald Reagan, Satoshi Nakamoto, Search for Extraterrestrial Intelligence, self-driving car, shareholder value, sharing economy, Silicon Valley, six sigma, Skype, smart cities, smart grid, Snapchat, sovereign wealth fund, Steve Crocker, Steve Jobs, Steven Levy, TaskRabbit, The Death and Life of Great American Cities, The Future of Employment, The Nature of the Firm, transaction costs, Turing test, turn-by-turn navigation, Uber and Lyft, Zipcar
I told Carlos about the world I envisioned, with a workforce of economically empowered and passionate freelancers supported by a porous set of platform companies providing scaffolding for distributed value creation and making efficient use of existing assets. His take on what Peers Inc might look like from the perspective of the low-skilled marginalized worker was not so rosy. Carlos saw wages falling to the lowest possible levels, as a nearly infinite supply of freelance labor meant there would always be someone willing to work at a lower rate. He saw freelancers as workers without collective bargaining power, benefits, or safety nets. He saw that platforms can easily become monopolies. Consumers would have no choices. Peers would do the work, while the platform owners got all the money and retained all the control—same as it ever was, but perhaps even worse, since more people will find themselves in tenuous unprotected jobs, outsourced from their full-time-with-benefits ones. Increased unemployment.
The Virgin Way: Everything I Know About Leadership by Richard Branson
barriers to entry, call centre, carbon footprint, Celtic Tiger, clean water, collective bargaining, Costa Concordia, Donald Trump, Elon Musk, friendly fire, glass ceiling, illegal immigration, index card, inflight wifi, Lao Tzu, low cost carrier, M-Pesa, Mahatma Gandhi, Mark Zuckerberg, Northern Rock, profit motive, Ralph Waldo Emerson, Ronald Reagan, shareholder value, Silicon Valley, stem cell, Steve Jobs, Tesla Model S, trade route, zero-sum game
Turning around the crumbling ruin of a business that was the British Rail system for generations was no mean feat for anyone. The kind of a calamity of an organisation we inherited from British Rail is illustrated by the story of how their train drivers once threatened to go on strike over management demands that they improve their abysmal on-time performance – and maybe even have a train leave on time once in a while! The union representing the drivers argued there was nothing in their collective bargaining agreement that specified their members had to own watches and so inferred that as a result they could not be held responsible for on-time departures. I think it was Timex that was the beneficiary of a very large order for ‘Property of BR’ inscribed watches. Hard to believe, I know, but that was the prevalent kind of employee ‘no can do’ attitude that we inherited. So with or without a brand like Virgin behind it, the kind of transformation that Tony and his people have achieved with our ‘train set’ has been nothing short of miraculous.
Rogue State: A Guide to the World's Only Superpower by William Blum
anti-communist, Ayatollah Khomeini, Berlin Wall, British Empire, collective bargaining, Columbine, experimental subject, Fall of the Berlin Wall, Johann Wolfgang von Goethe, Joseph Schumpeter, land reform, Monroe Doctrine, profit motive, Ronald Reagan, union organizing
In a multitude of ways, NED meddles in the internal affairs of foreign countries by supplying funds, technical know-how, training, educational materials, computers, fax machines, copiers, automobiles and so on, to selected political groups, civic organizations, labor unions, dissident movements, student groups, book publishers, newspapers, other media, etc. NED programs generally impart the basic philosophy that working people and other citizens are best served under a system of free enterprise, class cooperation, collective bargaining, minimal government intervention in the economy and opposition to socialism in any shape or form. A free-market economy is equated with democracy, reform and growth, and the merits of foreign investment are emphasized. From 1994 to 1996, NED awarded 15 grants, totaling more than $2,500,000, to the American Institute for Free Labor Development, an organization used by the CIA for decades to subvert progressive labor unions.2 AIFLD's work within Third World unions typically involved a considerable educational effort very similar to the basic NED philosophy described above.
Pirates and Emperors, Old and New by Chomsky, Noam
anti-communist, Berlin Wall, collective bargaining, conceptual framework, cuban missile crisis, drone strike, Fall of the Berlin Wall, land reform, liberation theology, Mikhail Gorbachev, RAND corporation, Ronald Reagan, union organizing, urban planning
., where manufacturers develop excess capacity abroad that can be used to break strikes, and threaten “transfer” to Mexico to disrupt union organizing, a significant consequence of NAFTA that has probably impressed Israeli manufacturers.50 Poor Israeli workers in “development towns” and the Arab sector would be particularly affected, as has already happened. During the neoliberal onslaught of the 1990s, Israeli port workers struggled against privatization of the ports and dismantling of collective-bargaining agreements endorsing rights they had won. Employer associations tried to break strikes by diverting cargo ships to Egypt and Cyprus, but that carries heavy transportation costs. A port in Gaza would be ideal. With the collaboration of local authorities in the standard neocolonial fashion, port operations could be transferred there, strikes broken, and Israeli ports transferred to unaccountable private hands.51 It is not surprising that Israel is coming to resemble the U.S., with very high inequality and levels of poverty, stagnating wages and deteriorating working conditions, and erosion of its formerly well-functioning social systems.
Rethinking the Economics of Land and Housing by Josh Ryan-Collins, Toby Lloyd, Laurie Macfarlane, John Muellbauer
agricultural Revolution, asset-backed security, balance sheet recession, bank run, banking crisis, barriers to entry, basic income, Bretton Woods, Capital in the Twenty-First Century by Thomas Piketty, collective bargaining, Corn Laws, correlation does not imply causation, creative destruction, credit crunch, debt deflation, deindustrialization, falling living standards, financial deregulation, financial innovation, Financial Instability Hypothesis, financial intermediation, full employment, garden city movement, George Akerlof, ghettoisation, Gini coefficient, Hernando de Soto, housing crisis, Hyman Minsky, income inequality, information asymmetry, knowledge worker, labour market flexibility, labour mobility, land reform, land tenure, land value tax, Landlord’s Game, low skilled workers, market bubble, market clearing, Martin Wolf, means of production, money market fund, mortgage debt, negative equity, Network effects, new economy, New Urbanism, Northern Rock, offshore financial centre, Pareto efficiency, place-making, price stability, profit maximization, quantitative easing, rent control, rent-seeking, Richard Florida, Right to Buy, rising living standards, risk tolerance, Second Machine Age, secular stagnation, shareholder value, the built environment, The Great Moderation, The Market for Lemons