liberal capitalism

43 results back to index


pages: 142 words: 45,733

Utopia or Bust: A Guide to the Present Crisis by Benjamin Kunkel

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

anti-communist, Bretton Woods, capital controls, Carmen Reinhart, creative destruction, David Graeber, declining real wages, full employment, Hyman Minsky, income inequality, late capitalism, liberal capitalism, liquidity trap, means of production, money: store of value / unit of account / medium of exchange, mortgage debt, Occupy movement, peak oil, price stability, profit motive, savings glut, Slavoj Žižek, The Wealth of Nations by Adam Smith, transatlantic slave trade, War on Poverty, We are the 99%, women in the workforce, Works Progress Administration, zero-sum game

Kaushi—who, I noticed, never called me sir—wasn’t shy at all about his enthusiasm for workers’ revolution, and asked me if I wanted one. “I’m definitely thinking about it.” And that was how my article ended, which may or may not have influenced GQ’s editors to kill the piece and neglect to solicit future contributions from me. Most of my youth went by during the end of history, which has itself now come to an end. If no serious alternative to liberal capitalism can yet be made out, surely it’s also become difficult for anyone paying attention to view the present system as viable. The more substantial book I intend to be my next will sketch a different possible order. The aim is not unique; several important postcapitalist visions marked by what might be called a tough-minded utopianism (notably, in the US, After Capitalism by David Schweickart, and What Then Must We Do?

It was in the light of the feeling of a windless postmodern stasis that Jameson wanted to stick up for utopianism, especially in Archaeologies of the Future (2005), his appreciation of utopia as a subgenre of science fiction and an immortal human desire: “The very political weakness of utopia in previous generations—namely that it furnished nothing like an account of agency, nor did it have a coherent historical and practical-political picture of transition—now becomes a strength in a situation in which neither of these problems seems currently to offer candidates for a solution.” The dialectic, Adorno said, would renounce itself if it renounced the “idea of potentiality,” and it was just this dimension that Jameson meant to preserve amid the deadly consensus as to the unsurpassable virtues of liberal capitalism. In “The Valences of History,” the concluding essay of the new book, Jameson argues that when the fitful apprehension of history does enter the lives of individuals it is often through the feeling of belonging to a particular generation: “The experience of generationality is … a specific collective experience of the present: it marks the enlargement of my existential present into a collective and historical one.”

Otherwise, only a description of capitalism can be offered, and some suggestions for reform, but no fundamental criticism. Since the 1970s—and especially since 1991—perhaps the greatest challenge for Marxism has been to keep alive the belief in the possibility of a superior future society. The belief was trampled almost to extinction by miscarried Third World revolutions, capitalist transformation in China, the capitulations of European socialist parties, Soviet collapse, and the ostensible triumph of liberal capitalism. The skepticism that replaced it was twofold. The would-be revolutionary left seemed to possess neither a serious strategy for the conquest of power nor a program to implement should power be won. In this context, the maximalism of the left at its high-water marks could only ebb into a kind of survivalist minimalism. The pith of minimalism lay in the alter-globalization slogan: “Another world is possible.”


pages: 424 words: 115,035

How Will Capitalism End? by Wolfgang Streeck

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

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 fact that capitalism has, until now, managed to outlive all predictions of its impending death, need not mean that it will forever be able to do so; there is no inductive proof here, and we cannot rule out the possibility that, next time, whatever cavalry capitalism may require for its rescue may fail to show up. A short recapitulation of the history of modern capitalism serves to illustrate this point.10 Liberal capitalism in the nineteenth century was confronted by a revolutionary labour movement that needed to be politically tamed by a complex combination of repression and co-optation, including democratic power sharing and social reform. In the early twentieth century, capitalism was commandeered to serve national interests in international wars, thereby converting it into a public utility under the planning regimes of a new war economy, as private property and the invisible hand of the market seemed insufficient for the provision of the collective capacities countries needed to prevail in international hostilities.

In the early twentieth century, capitalism was commandeered to serve national interests in international wars, thereby converting it into a public utility under the planning regimes of a new war economy, as private property and the invisible hand of the market seemed insufficient for the provision of the collective capacities countries needed to prevail in international hostilities. After the First World War, restoration of a liberal-capitalist economy failed to produce a viable social order and had to give way in large parts of the industrial world to either Communism or Fascism, while in the core countries of what was to become ‘the West’ liberal capitalism was gradually succeeded, in the aftermath of the Great Depression, by Keynesian, state-administered capitalism. Out of this grew the democratic welfare-state capitalism of the three post-war decades, with hindsight the only period in which economic growth and social and political stability, achieved through democracy, coexisted under capitalism, at least in the OECD world where capitalism came to be awarded the epithet, ‘advanced’.

The most important liaison between the two was, of course, Friedrich von Hayek, who for a few years occupied a chair at Freiburg, the academic home of the German ordoliberal school.9 Michel Foucault’s analysis of the rise of neoliberalism rightly focuses on Germany rather than Anglo-America.10 In anchoring ordoliberalism in the German state tradition and the politics of post-war and post-Nazi Germany, Foucault might have gone back further to Schmitt and Heller, where he would have found the basic figure of thought that informed and informs liberal ideas of the economic role of state authority under capitalism – the idea, in the words of the title of a 1980s book on Margaret Thatcher, of the need of a ‘free economy’ for a ‘strong state’.11 The unique qualification of ordoliberalism for building a bridge from the authoritarian liberalism of interwar Germany, as conceived by Schmitt and analysed by Heller, to the neoliberalism that began to dismantle the post-war political economy in the 1980s can be seen when comparing it to the economic common sense of the 1950s and 1960s. The Frankfurt School of ‘Critical Theory’, for example, was convinced that the capitalist economy had become inseparably merged into the state, which in the process had turned into the dominant institutional complex in contemporary society.12 After ‘the end of laissez-faire’, the place of liberal capitalism was supposed to have been taken by three competing economic systems, communism, fascism and New Deal democracy. All of them were seen as deeply politicized, democratically or not, with markets having given way to large, bureaucratically organized corporate monopolies closely affiliated with the bureaucracies of the state. In its own way, each of the three systems resembled Schmitt’s total state, with the New Deal variant carrying the risk of a democratic subversion of market justice, under the influence of pluralist democracy.


pages: 572 words: 134,335

The Making of an Atlantic Ruling Class by Kees Van der Pijl

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

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

Even at the beginning of US involvement in World War Two, as Roosevelt began his epic wheeling-dealing to pry the economic assets of the British Empire from Churchill, US geopolitical goals continued to be framed within a basically sphere-of-interest concept that took the division of the world market for granted. Thus the Council on Foreign Relations commissioned research to determine the minimal size of the informal empire necessary for the survival of US private capitalism in terms of raw material supplies, domestic employment and export outlets. This informal empire, called the ‘Grand Area’, was accepted as the sphere-of-interest reserved for liberal capitalism in the event of necessary accommodation with German and Soviet power. The Grand Area was envisioned as including the Western Hemisphere, the British Isles, the Commonwealth and Empire, the Dutch East Indies, China and Japan.52 (As we shall see, this concept dovetailed neatly with the ‘Atlantic Union’ idea propagated in the same period by Clarence Streit on behalf of the British imperialists organized in the Round Table Society.)

‘These liberals will rapidly accept the leadership of the President if he undertakes a liberal diplomatic offensive, because they will find in that offensive an invaluable support for their internal domestic troubles’.18 Hitherto, the European liberal bourgeoisie had been able both to contain domestic working-class pressures and to maintain a degree of autonomy vis-à-vis the United States,19 but the Russian Revolution threw them into the arms of Wilson and the universalist policy he had been cultivating for several years. The Crusade for Democracy The revolution would not have been confined to Russia had it not been for the entry of the United States in the crucial final stage of the war and the tremendous power thus thrown into battle on the side of liberal capitalism by the internationalist fraction of the American bourgeoisie led by Wilson. By his handling of the crisis of European imperialism and the revolutionary challenge that arose from it, Wilson set a historical example of how to bring unity of purpose to the liberal capitalist world and isolate its opponents. The World War had been largely ignited by rivalries arising from intersecting circuits of money capital and related railway and armaments programmes in Eastern Europe.

In present-day France, the fate of the Left government launched on the basis of an (emaciated) programme of nationalizations illustrates better than anything the fundamental dislocation of state monopolism by a new liberalism, and hence, represents a critical moment in the crisis of the theory of state-monopoly capitalism, its reformist assumptions, and the Communist parties clinging to its tenets. The crystallization of a state-monopoly tendency in the Atlantic bourgeoisie during the interwar years arose from the survival needs of large-scale industry confronted with the havoc wrought by an anarchic liberal capitalism, whose operating principles were no longer adequate to the development of the productive forces. After the Armistice in 1918, state intervention had been dismantled along with the apparatuses of the war economies as such. The defeat of the working class and the confinement of its revolution to Soviet Russia allowed the bourgeoisie to opt for a rehabilitation of pre-war patterns of class and economic relations, and to retreat from the danger-zone of state control.


pages: 353 words: 81,436

Buying Time: The Delayed Crisis of Democratic Capitalism by Wolfgang Streeck

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

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

This is not contradicted by the fact that Adorno introduced ‘late capitalism’ into social theory as a ‘Frankfurt School’ concept, using it in the title he chose for the German Sociological Congress in 1968 and in his opening report ‘Late Capitalism or Industrial Society?’ (T. Adorno, ‘Late Capitalism or Industrial Society?’, in Volker Merja et al., Modern German Sociology, New York: Columbia University Press, 1987). Adorno distinguished ‘late capitalism’ from what he called ‘liberal capitalism’, which, following Pollock, he regarded as a historically prior form of capitalism now superseded by state intervention and organization. Late capitalism was thus essentially identical with what others had been calling ‘organized capitalism’. The possibility of a looming crisis of organized (late) capitalism, or of a return to its liberal past in the shape of a neoliberal future, does not appear anywhere in Adorno’s writings. 23 D.

Canedo, The Rise of the Deregulation Movement in Modern America, 1957–1980, New York: Columbia University, 2008. 50 In different perspectives and from different normative positions, Weber, Schumpeter and Keynes all predicted a peaceful, or not so peaceful, end to free-market capitalism in the second half of the twentieth century. It is also worth recalling that, in The Great Transformation (1944), Karl Polanyi took it for granted that liberal capitalism was history and would not return. ‘Within the nations we are witnessing a development under which the economic system ceases to lay down the law to society and the primacy of society over that system is ensured’ (K. Polanyi, The Great Transformation: The Political and Economic Origins of Our Time, Boston: Beacon Press, p. 251). 51 For a selection from the abundant literature on the subject, see H.

See also ‘privatized Keynesianism’ Kochan, Thomas Kohl, Helmut, 1.1, 1.2n66, 3.1 Korpi, Walter: The Democratic Class Struggle Krippner, Greta Kristal, Tali labour market division and deregulation, 1.1, 1.2 labour mobility labour precariousness. See precarious labour labour productivity. See productivity labour surplus ‘late capitalism’, 1.1, 1.2, 1.3, 1.4n22 law, 2.1, 3.1, 3.2n49, 3.3, 3.4; medieval, 2.2n27. See also courts ‘legitimation crisis’, 1.1, 1.2, 1.3 passim, 1.4, 1.5n61, 1.6, 1.7 passim, 2.1, 4.1, 4.2 lenders as constituency. See Marktvolk ‘liberal capitalism’, 1.1, 1.2n50 loans, private. See private debt loans, public. See public debt loans, ‘subprime’ mortgage. See ‘subprime mortgages’ Lombardo, Raffaele London, England, 1.1, 2.1n56 Maastricht Treaty, 3.1, 3.2 Maier, Charles S. market internationalization. See globalization market justice, 2.1 passim, 3.1, 4.1 passim; EU, 3.2, 4.2 markets, capital. See capital markets markets, ‘self-regulated’.


pages: 501 words: 134,867

A Line in the Tar Sands: Struggles for Environmental Justice by Tony Weis, Joshua Kahn Russell

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

Bakken shale, bilateral investment treaty, call centre, carbon footprint, clean water, colonial exploitation, conceptual framework, corporate social responsibility, decarbonisation, Deep Water Horizon, en.wikipedia.org, energy security, energy transition, Exxon Valdez, failed state, global village, guest worker program, happiness index / gross national happiness, hydraulic fracturing, immigration reform, Intergovernmental Panel on Climate Change (IPCC), investor state dispute settlement, invisible hand, liberal capitalism, LNG terminal, market fundamentalism, means of production, Naomi Klein, new economy, Occupy movement, oil shale / tar sands, peak oil, profit maximization, race to the bottom, smart grid, special economic zone, working poor

A standing critique is that these changes were superficial: they were more a matter of updating their rhetoric, without necessarily becoming any less distant from grassroots struggles and frontline communities. One side of the limitations of the dominant ENGO approach is the failure of mainstream environmentalism to challenge neo-liberal capitalism. Neo-liberalism is a type of capitalism with extensive government support, in the form of deregulation, privatization, and reducing government intervention, while expanding the role of markets in economic life. The logic of neo-liberalism holds that the free market will respond to the environmental and social needs of the public by creating new technologies or services. Both Rodriguez and McMichael contend that what they describe as the “NGO industrial complex” reinforces neo-liberal capitalism, as ENGOs fill a market role of assuaging public guilt for social or environmental destruction without challenging the root issue of capitalism.9 Simply put, many ENGOs profit from selling stories of environmental destruction and token reforms to the public.

I argue that this approach, which is best understood as a form of reactionary environmentalism, is designed to reassure investors, neutralize criticism, and placate both apathetic and concerned citizens. Its Achilles heel, however, lies in claims to be engaging in a rational conversation, despite lacking evidence, in order to defend the unsustainable proposition of endless growth. Reactionary Environmentalism in the Tar Sands Reactionary environmentalism is, in essence, an extreme right-wing philosophy tied to the political economic ideology of neo-liberal capitalism. It goes under various guises, such as “ecological modernization,” “market ecology,” and “green neo-liberalism,” with the fundamental premise being a “business-as-usual” approach to environmental problems that largely places the onus on technological innovation and corporate self-management.4 In this messianic vision of enlightened corporations operating benignly within ever-freer markets, the best thing for the environment—it is claimed—is to turn everything into a commodity, from the water we drink to the air we breathe, as this supposedly yields uncoerced behavioural reform and promotes investment in innovation and efficiency.

The trope of “ethical oil” rests in large measure on Alberta’s place in an affluent, Western, democratic, capitalist nation, which ensures that transnational corporations (including many of the same players who have been implicated in crimes elsewhere) are welcome to purchase their extraction “rights” and can be entrusted to be responsible, law-abiding corporate citizens. Former premier Ralph Klein helped convert Alberta into a “capitalist paradise,”18 and this political and regulatory environment of neo-liberal capitalism is the crux of Levant’s claim that “the oil sands are cleaner than any other competing jurisdiction.”19 After all, the companies are just doing what they are allowed to do by law! Levant attempts to build his case further through a hodgepodge of relativist claims, and some patently absurd ones. For instance, at one point he goes so far as to liken the extraction of bitumen to “the largest cleanup of an oil spill in the history of the world.”20 He also casts doubt on the science of climate change as a mere “theory,” while celebrating the industry’s tremendous efforts to reduce the intensity of pollution per barrel produced and its impacts on water, wildlife, and downstream communities—all the while heaping scorn upon dirty industries abroad.


pages: 576 words: 105,655

Austerity: The History of a Dangerous Idea by Mark Blyth

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

accounting loophole / creative accounting, balance sheet recession, bank run, banking crisis, Black Swan, Bretton Woods, capital controls, Carmen Reinhart, Celtic Tiger, central bank independence, centre right, collateralized debt obligation, correlation does not imply causation, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency peg, debt deflation, deindustrialization, disintermediation, diversification, en.wikipedia.org, ending welfare as we know it, Eugene Fama: efficient market hypothesis, eurozone crisis, financial repression, fixed income, floating exchange rates, Fractional reserve banking, full employment, German hyperinflation, Gini coefficient, global reserve currency, Growth in a Time of Debt, Hyman Minsky, income inequality, information asymmetry, interest rate swap, invisible hand, Irish property bubble, Joseph Schumpeter, Kenneth Rogoff, liberal capitalism, liquidationism / Banker’s doctrine / the Treasury view, Long Term Capital Management, market bubble, market clearing, Martin Wolf, money market fund, moral hazard, mortgage debt, mortgage tax deduction, Occupy movement, offshore financial centre, paradox of thrift, Philip Mirowski, price stability, quantitative easing, rent-seeking, reserve currency, road to serfdom, savings glut, short selling, structural adjustment programs, The Great Moderation, The Myth of the Rational Market, The Wealth of Nations by Adam Smith, Tobin tax, too big to fail, unorthodox policies, value at risk, Washington Consensus, zero-sum game

In Ireland “a similar outcome occurred during the 1987–1989 stabilization.”113 Why, then, do these cases “so sharply contradict the Keynesian prediction about the effects of a fiscal contraction?”114 Giavazzi and Pagano conjectured that “in both cases, cuts in spending and tax increases were accompanied by a shift in the balance of political power, and by complementary monetary and exchange rate policies; after an initial devaluation, both countries pegged … to the German mark, inducing a sharp monetary deflation, and liberalized capital flows.”115 This did not, however, sound very expectations related. New policies and developments external to the budget brought about a major fall in interest rates that increased income (a wealth effect—less debt to pay back) more than the contraction in spending hurt the economy. To get over this problem, Giavazzi and Pagano teased out econometrically the part of the postcontraction boom that can’t be attributed to the wealth effect.

The classic exposition of this thesis remains Barrington Moore’s Social Origins of Dictatorship and Democracy (Boston: Beacon Press, 1966) and Alexander Gerschenkron, Economic Backwardness in Historical Perspective (Cambridge, MA: Harvard Belknap Press, 1962). 6. Woo Cummings, ed., The Developmental State (Ithaca, NY: Cornell University Press 1999); but also Wolfgang Streek and Yamamura, The Origins of Non-Liberal Capitalism (Cambridge: Cambridge University Press 2002). 7. Gerschenkron, Economic Backwardness; and Leonard Seabrooke, The Social Sources of Financial Power (Ithaca, NY: Cornell University Press, 2006). 8. The world’s first welfare state was founded in Germany, in the nineteenth century, by Otto von Bismark. 9. David J. Gerber, “Constitutionalizing the Economy: German Neoliberalism, Competition Law and the ‘New’ Europe.”


pages: 613 words: 151,140

No Such Thing as Society by Andy McSmith

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

anti-communist, Ayatollah Khomeini, Berlin Wall, Big bang: deregulation of the City of London, Bob Geldof, British Empire, Brixton riot, call centre, cuban missile crisis, Etonian, F. W. de Klerk, Farzad Bazoft, feminist movement, fixed income, Francis Fukuyama: the end of history, friendly fire, full employment, glass ceiling, God and Mammon, greed is good, illegal immigration, index card, John Bercow, liberal capitalism, light touch regulation, Live Aid, loadsamoney, long peace, means of production, Mikhail Gorbachev, mortgage debt, mutually assured destruction, negative equity, Neil Kinnock, North Sea oil, Northern Rock, old-boy network, popular capitalism, Right to Buy, Ronald Reagan, Rubik’s Cube, Sloane Ranger, South Sea Bubble, spread of share-ownership, strikebreaker, The Chicago School, union organizing, upwardly mobile, urban decay, Winter of Discontent, young professional

No established communist system had ever been dismantled or overthrown from within. People expected this contest between rival systems to continue indefinitely. Instead, they saw it coming to a quick, decisive and non-violent end. As communism rolled out of Eastern Europe in 1989, an American philosopher forecast that the end of history was approaching13 and that every other political system in the world would evolve into the western model of liberal capitalism. These developments were mirrored in domestic politics. Since 1945, the UK had edged towards becoming more ‘socialist’, with free medicine, free schools, state pensions and more than 40 per cent of the country’s industrial capacity owned by the state. Within the Labour Party, there was a vigorous movement led by Tony Benn to give the country another sharp push in the same direction. Mrs Thatcher, however, was determined to ‘roll back the frontiers of socialism’,14 which she succeeded in doing.

Aft er the great upheavals of the 1980s, there were no more big political causes to be fought. ‘Nowadays, there is a clear tendency to proclaim the death of all ideologies in the name of the victory of capitalism,’ the novelist Carlos Fuentes lamented, writing in the Guardian in the last week of 1990.16 However, to proclaim that history has ended, that all ideologies have been routed by the final victory of liberal capitalism is itself ideological. It was to be the prevailing ideology of the 1990s. British history did not end during the 1980s, but it did slow down, because the events of that turbulent decade had settled the way that Britons would be ruled and the way they thought about the world for at least the next quarter of a century. NOTES INTRODUCTION 1. According to Frank Field, Labour MP for Birkenhead, a visitor to a Merseyside Jobcentre would see ‘jobs advertised at £1.20 an hour, £1 an hour, £57.25 a week’, while the best paid ones would offer ‘princely sums of £70 and £91 a week’.


pages: 621 words: 157,263

How to Change the World: Reflections on Marx and Marxism by Eric Hobsbawm

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

anti-communist, banking crisis, battle of ideas, Berlin Wall, British Empire, continuation of politics by other means, creative destruction, currency manipulation / currency intervention, deindustrialization, discovery of the americas, experimental subject, Fall of the Berlin Wall, full employment, Gunnar Myrdal, labour market flexibility, liberal capitalism, market fundamentalism, mass immigration, means of production, new economy, Simon Kuznets, Thorstein Veblen, Upton Sinclair, upwardly mobile, Vilfredo Pareto, zero-sum game

The object of social institutions is to ‘faire concourir les principales institutions à l’accroissement du bien- être des prolétaires’, defined simply as ‘la classe la plus nombreuse’ ( Organisation Sociale, 1825). On the other hand, insofar as the ‘industrialists’ are entrepreneurs and technocratic 28 Marx, Engels and pre-Marxian Socialism planners, they oppose not only the idle and parasitic ruling classes, but also the anarchy of bourgeois-liberal capitalism, of which he provides an early critique. Implicit in him is the recognition that industrialisation is fundamentally incompatible with an unplanned society. The emergence of the ‘industrial class’ is the result of history. How much of Saint-Simon’s views were his own, how much influenced by his secretary (1814–17), the historian Augustin Thierry, need not concern us. At all events social systems are determined by the mode of organisation of property, historic evolution rests on the development of the productive system, and the power of the bourgeoisie on its possession of the means of production.

Nevertheless, the fall of the USSR and the Soviet model was traumatic not only for communists but for socialists everywhere, if only because, with all its patent defects, it had been the only attempt actually to construct a socialist society. It had also produced a superpower which for almost half a century acted as a global counterbalance to the capitalism of the old capitalist countries. In both these respects its failure, not to mention its patent inferiority in most respects to Western liberal capitalism, was manifest, even to those who did not share the post-1989 triumphalism of Washington ideologists. Capitalism had lost its memento mori. Socialists saw that the end of the Soviet Union 386 Marxism in Recession 1983–2000 foreclosed any hope that somehow a different and better socialism (‘with a human face’ as the Prague Spring put it) could emerge from the heritage of the October Revolution.


pages: 497 words: 123,718

A Game as Old as Empire: The Secret World of Economic Hit Men and the Web of Global Corruption by Steven Hiatt; John Perkins

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

airline deregulation, Andrei Shleifer, Asian financial crisis, Berlin Wall, big-box store, Bob Geldof, Bretton Woods, British Empire, capital controls, centre right, clean water, colonial rule, corporate governance, corporate personhood, deglobalization, deindustrialization, Doha Development Round, energy security, European colonialism, financial deregulation, financial independence, full employment, global village, high net worth, land reform, large denomination, liberal capitalism, Long Term Capital Management, Mexican peso crisis / tequila crisis, Mikhail Gorbachev, moral hazard, Naomi Klein, new economy, North Sea oil, offshore financial centre, oil shock, Ponzi scheme, race to the bottom, reserve currency, Ronald Reagan, Scramble for Africa, statistical model, structural adjustment programs, too big to fail, trade liberalization, transatlantic slave trade, transfer pricing, union organizing, Washington Consensus, working-age population, Yom Kippur War

John Perkins, Confessions of an Economic Hit Man (San Francisco: Berrett-Koehler, 2004), pp. 14-15. 4. Naomi Klein, “Not Neo-Con, Just Plain Greed,” Globe and Mail (Toronto), December 20, 2003. 5. 2006 World Data Sheet (Washington, D.C.: Population Reference Bureau, 2006). 6. Ha-Joon Chang, Kicking Away the Ladder: How the Economic and Intellectual Histories of Capitalism Have Been Re-Written to Justify Neo-Liberal Capitalism (Cambridge: Cambridge University Press, 2002). 7. See www.ghanaweb.com/GhanaHomePage/NewsArchive/printnews.php?ID=79568. 8. Lishala C. Situmbeko (Bank of Zambia), and Jack Jones Zulu (Jubilee-Zambia), “Zambia: Condemned to Debt.” Accessed at www.africafocus.org/docs04/zam0406.php. 9. Asad Ismi, “Plunder with a Human Face: The World Bank,” Z Magazine, February 1998, p. 10. 10. Christian Aid, The Trading Game: How Trade Works (Oxford: Oxfam, 2003). 11.

Dark Victory: The United States, Structural Adjustment and Global Poverty, 2nd edn. London: TNI/Pluto Press, 1999. Blum, William. Killing Hope: U.S. Military and CIA Interventions Since World War II—Updated Through 2003. Monroe, Maine: Common Courage, 2003. Chang, Ha-Joon. Kicking Away the Ladder: How the Economic and Intellectual Histories of Capitalism Have Been Re-Written to Justify Neo-Liberal Capitalism. Cambridge: Cambridge University Press, 2002. Chomsky, Noam. Hegemony or Survival: America’s Quest for Global Dominance. New York: Metropolitan, 2003. Noam Chomsky’s Web site is www.chomsky.info/. Coll, Steve. Ghost Wars: The Secret History of the CIA, Afghanistan, and Bin Laden, from the Soviet Invasion to September 10, 2001. New York: Penguin, 2004. Davis, Mike. Planet of Slums. London: Verso, 2006.


pages: 221 words: 55,901

The Globalization of Inequality by François Bourguignon

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

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

See also emerging economies development aid, 148–53, 157 development gap, 34–35, 83 Di Bao program, 166 discrimination: ghettos and, 66– 67; immigrants and, 64, 66, 127; labor and, 64–66, 69, 132, 142, 180–81; non-­material inequalites and, 64–66, 69; racial, 65; women and, 64–65, 103 disinflation, 95, 102, 110 distribution, 10n1, 186; capital-­ labor split and, 55–58, 60; efficiency and, 142–45; evolution of inequality and, 41, 42t, 44t, 45, 46t, 48–59, 64, 71–72; fairer globalization and, 148, 153, 156–73, 175, 178; geographical disequilibria and, 83; Gini coefficient and, 18 (see also Gini coefficient); global, 18–19, 25, 29, 39, 41, 46t, 121, 124–38, 141– 45, 156; growth and, 49–50, 188; international, 17–18, 30, 148; median of, 31; OECD countries and, 10–11, 12n3; policy and, 26, 72, 135, 188; range of, 16; real earnings loss and, 78; redistribution and, 4, 7, 37 (see also redistribution); rise in inequality and, 74, 77–79, 82, 85, 90–92, 94–96, 99, 103–4, 106–7, 112, 114–15; Southern perspective on, 82–85; standard of living and, 16, 18 (see also standard of living); taxes and, 37, 92–94 (see also taxes); Theil coefficient and, 18–19, 37–38, 194 distribution (cont.) 52; transfers and, 4, 14, 48, 105, 110, 130, 135–36, 142, 148, 153, 158–67, 170, 175, 181, 183, 187; wage, 3, 78–79, 107 Divided We Stand report, 52 Doha negotiations, 154 drugs, 66, 133 Dubai, 127 Economic Partnership Agreements (EPAs), 156 education, 34, 187; college, 132; evolution of inequality and, 61, 65–68; fairer globalization and, 149, 152, 167–73, 180–81; globalization and, 132, 140, 143; labor and, 168, 180; Millennium Development Goals and, 149– 50; national inequality and, 167–73; poverty and, 24; preschool, 169–70; redistribution and, 149, 152, 167–73; rise in inequality and, 111; taxes and, 167–73; tuition and, 170 efficiency: data transfer technology and, 78; deregulation and, 94, 96, 105, 108; economic, 1, 4, 6, 111, 116, 119, 129–33, 135, 140–45, 158, 164, 167, 171, 181; emerging economies and, 78; equality and, 116, 129–31; fairness and, 8, 129– 31; globalization and, 1, 4, 6, 8, 36, 78, 94, 96, 105, 108, 111, 116, 118–19, 129–35, 140–45, 157–58, 164, 167, 170–71, 175, 180–81, 188; human capital and, 175; import substitution and, 34, 180; inefficiency and, 105, 129–30, 132–33, 135, 140, 170–71, 180, 188; labor Index and, 175; loss of, 142, 164; opportunity and, 142–45; Pareto, 130n5; privatization and, 94, 96, 105, 108; redistribution and, 142–45; rents and, 180; social tensions and, 188; spontaneous redistribution and, 133; taxes and, 170; technology and, 78; weak institutions and, 36; wealth of nations and, 1 elitism, 182; fairer globalization and, 151, 165; globalization and, 127n4, 136, 138; rise in inequality and, 4, 6–7 emerging economies: Africa and, 122–23 (see also Africa); competition and, 178, 187–88; conditional cash transfers and, 165– 66; credit cards and, 165; domestic markets and, 120, 125; efficient data transfer and, 78; evolution of inequality and, 57; fairer globalization and, 147, 154, 158, 165–66, 177–78, 182; global inequality and, 40, 77– 80, 82, 109, 113, 115, 188–89; globalization and, 117, 119–22, 125–27; institutions and, 109– 12; Kuznets curve and, 113; labor and, 77; natural resources and, 127; profits and, 117; rise in inequality and, 109–12; structural adjustment and, 109– 12; taxes and, 165; trends in, 57; Washington consensus and, 109–10, 153 entrepreneurs, 83, 92, 96, 131–32, 135, 143, 170–71, 188 equality: efficiency and, 116, 129– 31; policy for, 184–89; relative gap and, 18, 28, 30, 31–32, 36 Ethiopia, 21–22, 46t, 155 Index195 European Union (EU), 24, 156, 174, 177 Everything But Arms (EBA) initiative, 155 evolution of inequality: Africa and, 46t, 54–55; Brazil and, 46t, 55, 59, 70; capital and, 55–58, 60, 73; China and, 47, 53, 57–60; consumption and, 42t, 44t; convergence and, 65, 69; credit and, 61; crises and, 48, 50, 54, 57, 73–74; developed countries and, 47, 52–53, 56, 59–64, 66; developing countries and, 47, 53–55, 57, 63, 68; distribution and, 41, 42t, 44t, 45, 46t, 48–59, 64, 71– 72; education and, 61, 65–68; elitism and, 4, 6–7, 46t; emerging economies and, 57; exceptions and, 52–53; France and, 46t, 51f, 52–53, 55, 58, 59n8, 62–63, 66, 70–71; ghettos and, 66–67; Gini coefficient and, 39, 42t, 44t, 48, 50, 51f, 53, 58–59; Great Depression and, 48; growth and, 33, 49–50, 54; India and, 54, 57, 59–60; institutions and, 55, 69; investment and, 56; labor and, 55–58, 60; markets and, 48–50, 53–54, 64, 69; national income inequality and, 48–52; non-­monetary inequalities and, 49, 60–70; normalization and, 41, 43–44; opportunity and, 61–62, 68, 70–71; perceptions of inequality and, 69–73; policy and, 55, 72; primary income and, 48–50, 58; production and, 57; productivity and, 63; profit and, 56; reform and, 54, 72; rise in inequality in, 48–52, 73, 77–80, 91–95, 97–98, 102–8; risk and, 63, 66; standard of living and, 41, 43– 45, 46t, 53–55, 58, 60–62, 67, 69, 73; surveys and, 42t, 43–45, 56, 68n17, 69–71; taxes and, 12–14, 37, 48, 50, 56n5; Theil coefficient and, 42; United Kingdom and, 46t, 50, 51f, 59, 67, 68n17; United States and, 2, 4–6, 9, 11, 21, 33, 46t, 47–50, 51f, 58, 59n9, 66–70, 73; wealth and, 58–60 executives, 73, 88–89, 97, 174 expenditure per capita, 13, 15, 42t, 44t exports: deindustrialization and, 76, 82; fairer globalization and, 147, 154–55, 176, 178; globalization and, 124, 128; rise in inequality and, 76, 82–84 fairer globalization: Africa and, 147, 151, 154–56, 179, 183; African Growth Opportunity Act (AGOA) and, 155; Bolsa Familia and, 166; Brazil and, 150, 154, 166–68, 173; capital and, 158–62, 167, 171, 175, 182; China and, 150, 154, 165–66, 172, 178; competition and, 155, 169, 173, 176–79, 182; consumers and, 177–78; consumption and, 159, 177; convergence and, 146–47, 157; correcting national inequalities and, 158–80; credit and, 164–65, 172, 180; crises and, 163, 176; deregulation and, 173; developed countries and, 150, 154–57, 160, 162, 164, 168–72, 176, 178–79, 181; developing countries and, 154, 166; development aid and, 196 fairer globalization (cont.) 148–53, 157; Di Bao program and, 166; distribution and, 148, 153, 156–73, 175, 178; Economic Partnership Agreements (EPAs) and, 156; education and, 149, 152, 167–73; 180–81; elitism and, 151, 165; emerging economies and, 147, 154, 158, 165–66, 177–78, 182; Everything But Arms (EBA) initiative and, 155; exports and, 147, 154–55, 176, 178; France and, 147, 159–61, 164, 169, 175, 177; Gini coefficient and, 156, 166; goods and services sector and, 180; growth and, 147–52, 155, 162, 167–68, 171, 177, 180, 183; health issues and, 152, 166; imports and, 154, 177–78, 180; India and, 150, 154, 165– 66, 172; inheritance and, 170– 73; institutions and, 151, 168, 174–75; international trade and, 176–77; investment and, 150, 155, 157, 160, 170, 174, 179; liberalization and, 156, 179; markets and, 147–48, 154–58, 168, 173–75, 178–81; Millennium Development Goals and, 149–50; national inequality and, 147, 158; opportunity and, 155, 167, 170, 172; policy and, 147–53, 157, 167–73, 175, 177, 179–83; poverty and, 147–52, 164, 166, 175; prices and, 147– 48, 176, 178, 182; primary income and, 158, 163n10, 167, 173; production and, 155–57, 167, 176, 178–79; productivity and, 155, 177–78; profit and, 173, 176; Progresa program and, Index 166; protectionism and, 7, 147, 154, 157, 176–79; redistribution and, 148, 153, 156–73, 175, 178; reform and, 151, 161, 163, 168–69; regulation and, 152, 173–76, 181–82; risk and, 148, 154, 156, 159, 164, 171, 174–75, 178; standard of living and, 146–48, 154, 156–58, 160, 165, 168–69; surveys and, 169; taxes and, 148, 158–73, 175, 181–83; technology and, 156, 173; TRIPS and, 156; United Kingdom and, 163, 169; United States and, 155, 159–61, 163– 64, 169, 174–75, 182; wealth and, 162, 164, 167, 170–73 Fitoussi, Jean-­Paul, 14 France: evolution of inequality and, 46t, 51f, 52–53, 55, 58, 59n8, 62–63, 66, 70–71; fairer globalization and, 147, 159–61, 164, 169, 175, 177; Gini coefficient of, 20; global inequality and, 2, 9, 11, 20–21; offshoring and, 81; rise in inequality and, 80, 88, 92–93, 95, 97, 99, 103; soccer and, 87; wage deductions and, 159 G7 countries, 56 G20 countries, 182 Garcia-­Panalosa, Cecilia, 107 Gates, Bill, 5–6, 70, 150 Germany, 2, 21, 46t, 50, 51f, 80, 88, 92 Ghana, 46t, 54 ghettos, 66–67 Giertz, Seth, 160–61 Gini coefficient: Brazil and, 22; Current Population Survey and, 21; evolution of inequality and, Index197 39, 42t, 44t, 48, 50, 51f, 53, 58– 59; fairer globalization and, 156, 166; France and, 20; historical perspective on, 27–28; meaning of, 18–19; purchasing power parity and, 28; rise in inequality and, 110; United States and, 21; wealth inequality and, 58–60 Glass-­Steagall Act, 174n15 global distribution, 18–19, 25, 29, 39, 41, 46t, 121, 156 global inequality: Africa and, 16, 21, 23, 30–31, 34, 36; between countries, 2–3, 5, 7, 9, 16–19, 23, 33, 36, 38–39, 42–45, 47, 53, 58, 68, 90–91, 107, 117–19, 123, 128, 153; Brazil and, 21– 23; crises and, 20, 38–41; cross-­ country heterogeneity and, 13; definition of, 3–4, 9–10, 25–26, 30–32, 39; developed countries and, 10–11, 21, 34–39; developing countries and, 10–11, 13, 21, 32, 34–39; effects of, 38–40; emerging economies and, 40, 77–80, 82, 109, 113, 115, 188– 89; at the end of the 2000s, 20– 25; evolution of inequality and, 41 (see also evolution of inequality); expenditure per capita and, 13, 15, 42t, 44t; France and, 2, 9, 11, 20–21; globalization and, 117–18, 121–23, 128; great gap and, 33–36; historic turning point for, 25–32; Human Development Report and, 25; institutions and, 36; measuring, 10– 20; Millennium Development Goals and, 149–50, 185; normalization and, 13, 15, 22–23, 26, 29; OECD Database on Household Income Distribution and Poverty and, 11–12; policy and, 185–89; Povcal database and, 10, 12, 42t, 43, 44t; prices and, 27–28, 74, 80, 84, 91–92, 94, 97, 110; profit and, 13; reduction of, 2, 185–86; relative gap and, 18, 28, 30–32, 36; rise of, 2–4, 7; risk and, 20; standard of living and, 10–26, 29, 31–33, 36, 39; surveys on, 10, 12–15, 20n10, 21–22, 29, 42t, 43–45; technology and, 3–4, 34–35; trend reversal in, 37–38; within countries, 2, 5–7, 9, 16, 30, 33, 35–45, 47, 113–14, 118, 124– 29, 184–85, 189 globalization: Africa and, 122–23, 126–27; Asian dragons and, 34, 82; Brazil and, 127, 133; capital and, 117, 125–26, 132, 137; China and, 120–22, 128; competition and, 117–18, 130, 186 (see also competition); as complex historical phenomenon, 1–2; consumption and, 137–39; convergence and, 120–22, 125; credit and, 131–32, 137–40; crises and, 119–22, 125, 135–39, 142; debate over, 1; deindustrialization in developed countries and, 75–82; democratic societies and, 135–36; deregulation and, 95–99; developed countries and, 117, 119, 121, 127n4, 128, 133, 143; developing countries and, 121, 127n4, 128, 132, 143; education and, 132, 140, 143; efficiency and, 1, 4, 6, 8, 36, 78, 94, 96, 105, 108, 111, 116, 118–19, 129–35, 140–45, 157–58, 164, 167, 170–71, 175, 180–81, 188; elitism and, 127n4, 136, 138; 198 globalization (cont.) emerging economies and, 117, 119–22, 125–27; exports and, 124, 128; fairer, 146–83 (see also fairer globalization); future of inequality between countries and, 119–22; global inequality and, 117–18, 121–23, 128; goods and services sector and, 127, 130; growth and, 118–29, 134–39; health issues and, 140– 41, 144; Heckscher-­Ohlin model and, 76; imports and, 119, 124; inequality within countries and, 124–29; inheritance and, 144–45; institutions and, 124; as instrument for modernization, 1; international trade and, 3, 75–76, 78–79, 83, 112, 114, 176–77; investment and, 119, 130, 134–35, 143; laissez-­faire approach and, 118, 129; markets and, 118, 120–21, 124–37, 140, 143–44; as moral threat, 1; national inequality and, 119; negative consequences of inequality and, 131–42; opportunity and, 133–34, 139, 142–44; as panacea, 1; policy and, 118–19, 124, 126, 128–31, 139, 143–44; poverty and, 117, 123, 126–27, 134, 144; prices and, 118, 122, 126, 136–38; primary income and, 135, 143–44; production and, 119, 124, 126, 129, 131, 133, 137; productivity and, 120, 125, 127, 144; profit and, 117; redistribution and, 121, 124–38, 141–45; reform and, 124, 126–27, 138; regulation and, 136; rise in inequality and, 117–18; risk and, 127–28, Index 137–39, 144; shocks and, 38, 55, 91–92, 175; Southern perspective on, 82–85; standard of living and, 120–23, 126, 138, 143; surveys and, 127n4, 141n15; taxes and, 74, 89n10, 91–94, 104, 114–15, 129–30, 135–36, 142–45; technology and, 86–91, 118–20, 125; trends and, 118; United States and, 135–39; wealth and, 74, 95, 98, 125, 127, 129, 131–32, 139, 143–45 Great Depression, 48 Greece, 46t, 135 gross domestic product (GDP) measurement: Current Population Survey and, 21; evolution of inequality and, 41–45, 56–57; fairer globalization and, 123, 127, 165–66, 176; global inequality and, 13–15, 20–21, 23, 26, 27f, 29–30, 39; normalization and, 29, 41, 43–45; rise in inequality and, 94; Sen-­Stiglitz-­ Fitoussi report and, 14 Gross National Income (GNI), 148–49 Growing Unequal report, 52 growth, 4; African Growth Opportunity Act (AGOA) and, 155; constraints and, 35; consumption and, 13–15, 42t, 44t, 80, 137–39, 159, 177; convergence and, 16; determinants of, 34; distribution and, 49–50, 188; emerging economies and, 125 (see also emerging economies); evolution of inequality and, 33, 49–50, 54; fairer globalization and, 147–52, 155, 162, 167–68, 171, 177, 180, 183; GDP mea- Index199 surement of, 30, 39 (see also gross domestic product (GDP) measurement); globalization and, 118–29, 134–39; great gap in, 33–36; import substitution and, 34, 180; inflation and, 50, 95, 102, 110; negative, 31; political reversals and, 36; poverty and, 28–29; production and, 3, 34–35, 57, 74, 76–81, 84–86, 119, 124, 126, 129, 131, 133, 137, 155–57, 167, 176, 178–79; rate of, 15, 29–35, 79, 125, 185; recession and, 6, 31, 99, 120; relative gap and, 18, 20, 30–32, 36; rise in inequality and, 75, 79, 82, 84, 109–12; trends in, 40, 121 health issues, 24, 187; fairer globalization and, 152, 166; globalization and, 140–41, 144; public healthcare and, 37, 111, 140 Heckscher-­Ohlin model, 76 Hong Kong, 34, 82, 174 housing, 12, 61, 137 human capital, 74, 167, 175 Human Development Report, 25 Ibrahimovich, Zlata, 87 IKEA, 172 immigrants, 64, 66, 127 imports: fairer globalization and, 154, 177–78, 180; globalization and, 119, 124; import substitution and, 34, 180; rise in inequality and, 80 income: average, 9, 18, 21, 29–30, 43, 72; bonuses and, 87, 174; convergence and, 16; currency conversion and, 11; definition of, 45; deindustrialization and, 75–82; developed/developing countries and, 5, 36; disposable, 20, 22, 24, 48, 50, 51f, 74, 91, 163; distribution of, 3 (see also distribution); executives and, 73, 88–89, 97, 174; family, 10; financial operators and, 87–88, 90–91; gap in, 3, 5–6, 27f, 33– 36, 42t, 44t, 149; GDP measurement and, 13–15, 20–21, 23, 26, 27f, 29–30, 39, 41–45, 56–57, 94, 123, 127, 165–66, 176; high, 50, 52, 56, 85–93, 97–99, 140, 143, 158–62, 164, 189; household, 10–12, 43, 45, 50, 58, 105, 107, 137, 163, 177; inequality in, 2, 4, 41, 48–50, 56–64, 68, 70, 72–73, 83, 98, 102–3, 107–8, 114, 125, 132– 34, 137, 140–41, 143–44, 163; inflation and, 50, 95, 102, 110; international scale for, 17–18, 23, 30; lawyers and, 89–90; mean, 17, 20n10, 27f, 42t, 44t; median, 6, 49, 71, 102–3, 106; minimum wage and, 52–53, 100, 102–8, 175, 177; national, 7, 16–19, 30, 43, 48–52, 60, 73, 84n6, 125, 149, 153, 172; OECD Database on Household Income Distribution and Poverty and, 11; opportunity and, 5; payroll and, 53, 93, 100, 104, 107, 175; pension systems and, 167; per capita, 20, 25, 29–30, 42t, 45, 48, 55–56, 120; portfolios and, 88; poverty and, 1, 11, 15n6, 19–20, 22–25, 28–29, 32, 44t, 109, 117, 123, 126–27, 134, 144, 147–52, 164, 166, 175; primary, 48–50, 58, 135, 143–44, 158, 163n10, 167, 173; 200 income (cont.) purchasing power and, 11, 13, 19–24, 27f, 28, 50, 80, 144, 158, 178; real earnings loss and, 78; relative gap and, 18, 28, 30, 31– 32, 36; superstars and, 85–87, 89–90; taxes and, 37, 89n10, 92–93, 145, 159, 161–65, 170 (see also taxes); technology and, 34, 180; virtual, 12; wage inequality and, 51–53, 79, 101–3, 106, 108; wage ladder effects and, 78–79; wealth inequality and, 58–60; women and, 64– 65, 103 India: evolution of inequality and, 54, 57, 59–60; fairer globalization and, 150, 154, 165– 66, 172; household consumption and, 15; international trade and, 75; Kuznets hypothesis and, 113; rise in inequality and, 2, 15–16, 19, 30, 34, 46t, 75, 83, 90, 112–13; taxes and, 165 Indonesia, 30, 46t, 54, 111, 127 industrialization: deindustrialization and, 1, 75–82, 102, 120, 188; labor and, 1, 26, 29, 33, 35, 54, 82, 84, 102, 113, 120, 127, 179, 188 Industrial Revolution, 26, 29, 33, 35 inequality: between countries, 2–3, 5, 7, 9, 16–19, 23, 33, 36, 38– 39, 42–45, 47, 53, 58, 68, 90– 91, 107, 117–19, 123, 128, 153; efficiency and, 1, 4, 6, 8, 36, 78, 94, 96, 105, 108, 111, 116, 118– 19, 129–35, 140–45, 157–58, 164, 167, 170–71, 175, 180–81, 188; Gini coefficient and, 18 (see Index also Gini coefficient); income, 2, 4, 41, 48–50, 56–64, 68, 70, 72–73, 83, 98, 102–3, 107–8, 114, 125, 132–34, 137, 140–41, 143–44, 163; international, 17; inverted U curve and, 54, 113; measurement of, 18; negative consequences of, 131–42; non-­ monetary, 49, 60–70; perceptions of, 69–73; social tensions and, 188; standard of living and, 18 (see also standard of living); Theil coefficient and, 18–19, 37–38, 42; wealth, 58–60; within countries, 2, 5–7, 9, 16, 30, 33, 37–45, 47, 113–14, 118, 124–29, 184–85, 189 infant mortality, 150 inflation, 50, 95, 102, 110 inheritance: fairer globalization and, 170–73; globalization and, 144–45; rise in inequality and, 93 institutions: deregulation and, 91– 112 (see also deregulation); disinflation and, 95, 102, 110; emerging economies and, 109– 12; evolution of inequality and, 55, 69; fairer globalization and, 151, 168, 174–75; global inequality and, 36; globalization and, 124; markets and, 91–92; privatization and, 94–109; reform and, 91–112; rise in inequality and, 91–112, 114; structural adjustment and, 109– 12; taxes and, 92–94; “too big to fail” concept and, 174–75; Washington consensus and, 109–10, 153 International Development Association, 149 Index201 international income scale, 17–18, 23, 30 International Labor Organization, 51 International Monetary Fund (IMF), 54, 57, 84, 90, 109–10 international trade: capital mobility and, 74; China and, 75; de­ industrialization and, 75–76, 78–79; effect of new players, 75–76; Heckscher-­Ohlin model and, 76; India and, 75; offshoring and, 81–82; rise in inequality and, 75–76, 78–79, 83, 112, 114; Soviet Union and, 75; theory of, 76; wage ladder effects and, 78–79 inverted U curve, 54, 113 investment: direct, 76, 79; evolution of inequality and, 56; fairer globalization and, 150, 155, 157, 160, 170, 174, 179; foreign, 83, 85, 112, 155, 157, 160, 179; globalization and, 119, 130, 134– 35, 143; production and, 119; public services and, 143; re-­ investment and, 56; rise in inequality and, 76, 79, 82–83, 85, 92, 97–98, 112; taxes and, 92 Ivory Coast, 54 Japan, 34, 46t, 51f, 103 job training, 34, 181, 187 Kenya, 46t, 54 kidnapping, 133 Kuznets, Simon, 113, 126 labor: agriculture and, 12, 82, 84, 122–23, 127–28, 132, 155; artists and, 86–87; bonuses and, 87, 174; capital and, 3–4, 55– 58, 60, 158, 161n7, 185; capital mobility and, 3; cheap, 77, 117; costs of, 81, 100, 104–5, 117, 176, 187; decline in share of national income and, 73; deindustrialization and, 75–82; demand for, 168; deregulation and, 99– 109; discrimination and, 64–66, 69, 132, 142, 180–81; distribution of income and, 175 (see also distribution); education and, 168, 180; efficiency and, 96–97, 175; emerging economies and, 77; entrepreneurs and, 83, 92, 96, 131–32, 135, 143, 170–71, 188; evolution of inequality and, 55–58, 60; excess, 81, 83; executives and, 73, 88–89, 97, 174; goods and services sector and, 13, 73, 80, 85, 91, 102, 127, 130, 180; growth and, 154, 179; immigrant, 64, 66, 127; increased mobility and, 90–91; industrialization and, 1, 26, 29, 33, 35, 54, 80, 82, 84, 102, 113, 120, 127, 179, 188; inflation and, 50, 95, 102, 110; International Labor Organization and, 51; job training and, 34, 181, 187; manufacturing and, 57, 80–82, 84, 123, 154–55, 157; median wage and, 49, 71, 102– 3, 106; minimum wage and, 52– 53, 100, 102–8, 175, 177; mobility of, 185; offshoring and, 81–82; payroll and, 53, 93, 100, 104, 107, 175; pension systems and, 167; portfolios and, 88; poverty and, 1, 11, 15n6, 19– 20, 22–25, 28–29, 32, 44t, 109, 117, 123, 126–27, 134, 144, 147–52, 164, 166, 175; 202 labor (cont.) privatization and, 99–109; productivity and, 63, 79, 81–82, 89, 100, 102, 104, 114, 120, 125, 127, 144, 155, 177–78; protectionism and, 7, 147, 154, 157, 176–79; real earnings loss and, 78; reserve, 84; security and, 133; skilled, 76–78, 82–83, 86, 90, 114, 117, 126, 176; standard of living and, 69 (see also standard of living); superstars and, 85, 87, 89–90; supply of, 130– 31, 164; taxes and, 159–60, 171; technology and, 85–91 (see also technology); unemployment and, 37, 39, 53, 62–63, 66, 69, 77, 94, 100–108, 164, 175–76; unions and, 100–106, 108, 156, 179; unskilled, 3, 76–77, 79, 83, 105, 117, 154; wage inequality and, 51–53, 79, 101–3, 106, 108; wage ladder effects and, 78–79; women and, 64–65, 103, 114; writers and, 86–87 Lady Gaga, 5–6 laissez-­faire approach, 118, 129 Latin America, 9, 34, 36, 54–55, 58, 109–11, 155, 165–66, 168, 180 lawyers, 89–90 liberalization: capital and, 96; customs, 156; deregulation and, 96–99, 108–9, 112 (see also deregulation); fairer globalization and, 156, 179; mobility of capital and, 115; policy effects of, 97–99; Reagan administration and, 91; recession and, 6, 31, 99, 120; rise in inequality and, 76, 91, 93, 96–99, 108–9, 112, 115; tax rates and, 93 Luxembourg, 16, 19 Index Madonna, 71 Malaysia, 127 manufacturing: deindustrialization and, 75–82, 84, 123; emerging economies and, 57, 84; fairer globalization and, 154–55, 157; France and, 81; offshoring and, 81–82; United Kingdom and, 80; United States and, 80 markets: competition and, 76–77, 79–82, 84, 86, 94–98, 102, 104, 115–18, 130, 155, 169, 173, 176–79, 182, 186–88; credit, 131; deindustrialization and, 1, 75–82, 102, 120, 188; deregulation and, 91–92, 99–109 (see also deregulation); development gap and, 34–35, 83; Economic Partnership Agreements (EPAs) and, 156; effect of new players, 75–76; emerging economies and, 120 (see also emerging economies); entrepreneurs and, 83, 92, 96, 131–32, 135, 143, 170–71, 188; evolution of inequality and, 48–50, 53–54, 64, 69; exports and, 76, 82–84, 124, 128, 147, 154–55, 176, 178; fairer globalization and, 147–48, 154–58, 168, 173–75, 178–81; GDP measurement and, 13–15, 20–21, 23, 26, 27f, 29–30, 39, 41–45, 56–57, 94, 123, 127, 165–66, 176; globalization and, 35, 118, 120–21, 124–37, 140, 143–44; Heckscher-­Ohlin model and, 76; housing, 12, 61, 137; imports and, 1, 34, 80, 119, 124, 154, 177–78, 180; institutions and, 91–112; international trade and, 3, 75–76, 78–79, 83, 112, 114, 176–77; labor and, Index203 144 (see also labor); liberalization and, 112 (see also liberalization); monopolies and, 94, 111, 127, 136; offshoring and, 81– 82; protectionism and, 7, 147, 154, 157, 176–79; purchasing power and, 11, 13, 19–24, 27f, 28, 50, 80, 144, 158, 178; reform and, 54 (see also reform); regulation and, 74 (see also regulation); rise in inequality and, 74, 76– 79, 83, 86, 90–112, 114; shocks and, 38, 55, 91–92, 175; single market and, 76; South-­South exchange and, 35; TRIPS and, 156 median wage, 49, 71, 102–3, 106 Mexico, 46t, 57, 59, 109–10, 133, 166, 172 middle class, 51, 71, 93, 109, 133– 34, 136, 140 Milanovic, Branko, 4–5, 17n8, 29n16 Millennium Development Goals, 149–50, 185 minerals, 84, 127 minimum wage, 52–53, 100, 102– 8, 175, 177 monopolies, 94, 111, 127, 136 Morocco, 173 Morrisson, Christian, 28 movies, 87 Murtin, Fabrice, 28 national inequality, 2–4; correcting, 158–80; education and, 167–73; fairer globalization and, 147, 158; Gini coefficient and, 27 (see also Gini coefficient); globalization and, 119; market regulation and, 173–75; protectionism and, 147, 157, 176–79; redistribution and, 158–73, 175, 178; rise in, 6, 48– 52, 115, 204; taxes and, 158–73, 175, 181–83 natural resources, 84–85, 92, 122, 126–28, 127, 151 Netherlands, 46t, 50, 66, 70, 102 Nigeria, 9, 46t, 54, 127, 151 non-­monetary inequalities: access and, 61, 67–68; capability and, 61; differences in environment and, 66–68; discrimination and, 64–66, 69; employment precariousness and, 63–64; evolution of inequality and, 49, 60–70; intergenerational mobility and, 68; opportunities and, 49, 60– 70; social justice and, 60, 70; unemployment and, 62–63 normalization: evolution of inequality and, 41, 43–44; GDP measurement and, 29, 41, 43– 45; global inequality and, 13, 15, 22–23, 26, 29 Occupy Wall Street movement, 6, 135 OECD countries, 27t; evolution of inequality and, 42t, 43, 44t, 50– 52, 64, 65n13; fairer globalization and, 149, 159, 162, 164– 65; Gini coefficient and, 51; income distribution and, 51; relaxation of regulation and, 99; restrictive, 64; rise in inequality and, 50–51, 94, 99, 102, 106n18, 107; social programs and, 94; standard of living and, 11–12, 43, 50–52, 64, 94, 99, 102, 107, 120, 149, 159, 162, 164–65; U-­shaped curve on income and, 50 OECD Database on Household 204 Income Distribution and Poverty, 11–12 offshoring, 81–82 oil, 92, 127 opportunity, 5; African Growth Opportunity Act (AGOA) and, 155; as capability, 61; efficiency and, 142–45; evolution of inequality and, 61–62, 68, 70–71; fairer globalization and, 155, 167, 170, 172; globalization and, 133–34, 139, 142–44; redistribution and, 142–45; rise in inequality and, 102 Pakistan, 46t, 111 Pareto efficiency, 130n5 Pavarotti, Luciano, 86–87 payroll, 53, 93, 100, 104, 107, 175 Pearson Commission, 149 pension systems, 167 Perotti, Roberto, 134 Philippines, 46t, 111 Pickett, Kate, 140 Piketty, Thomas, 4, 48, 59n8, 60, 89n10, 125, 160n4 PISA survey, 169–70 policy, 4; adjustment, 109, 153; Cold War and, 149, 153; convergence and, 147–48; development aid and, 148–53; distributive, 26, 72, 135, 188; educational, 149, 152, 167–73; evolution of inequality and, 55, 72; fairer globalization and, 147–53, 157–58, 167–73, 175–83; Glass-­Steagall Act and, 174n15; global inequality and, 185–89; globalization and, 118–19, 124, 126, 128–31, 139, 143–44; globalizing equality and, 184–89; import substi- Index tution and, 34; Millennium Development Goals and, 149– 50, 185; poverty reduction and, 147–48; protectionist, 7, 99– 100, 107–8, 147, 154, 157, 176–79; reform and, 74 (see also reform); rise in inequality and, 34, 74–75, 85, 94, 97, 99– 100, 104, 106–11, 114–16; social, 7; standard of living and, 147–48 population growth, 28–29, 110, 183 portfolios, 88 Povcal database, 10, 12, 42t, 43, 44t poverty, 1, 44t, 109; Collier on, 23; convergence and, 147–48; criminal activity and, 133–34; definition of, 24; development aid and, 147–52; fairer globalization and, 147–52, 164, 166, 175; ghettos and, 66–67; global inequality and, 11, 15n6, 19–20, 22–25, 28–29, 32; globalization and, 117, 123, 126–27, 134, 144; growth and, 28–29; measurement of, 23–24; Millennium Development Goals and, 149– 50, 185; OECD Database on Household Income Distribution and Poverty and, 11–12; reduction policies for, 147–48; traps of, 144, 150, 164 prices: commodity, 84, 182; exports and, 178; factor, 74, 126; fairer globalization and, 147–48, 176, 178, 182; global inequality and, 27–28, 74, 80, 84, 91–92, 94, 97, 110; globalization and, 118, 122, 126, 136–38; imports and, 80; international compari- Index205 sons of, 11; lower, 94, 137; oil, 92; rise in inequality and, 74, 80, 84, 91–92, 94, 97, 110; rising, 110, 122, 178; shocks and, 38, 55, 91–92, 175; statistics on, 11, 27; subsidies and, 109–10, 175 primary income: evolution of inequality and, 48–50, 58; fairer globalization and, 158, 163n10, 167, 173; globalization and, 135, 143–44 privatization: deregulation and, 94–112; efficiency and, 94, 96, 105, 108; globalization of finance and, 95–99; institutions and, 94–109; labor market and, 99–109; reform and, 94–109; telecommunications and, 111 production: deindustrialization and, 75–82; evolution of inequality and, 57; fairer globalization and, 155–57, 167, 176, 178–79; globalization and, 119, 124, 126, 129, 131, 133, 137; growth and, 3, 34–35, 57, 74, 76–81, 84–86, 119, 124, 126, 129, 131, 133, 137, 155–57, 167, 176, 178–79; material investment and, 119; North vs.

Profit Over People: Neoliberalism and Global Order by Noam Chomsky

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

Bernie Sanders, Bretton Woods, declining real wages, deindustrialization, full employment, invisible hand, joint-stock company, land reform, liberal capitalism, manufacturing employment, means of production, Monroe Doctrine, Ronald Reagan, strikebreaker, structural adjustment programs, Telecommunications Act of 1996, The Wealth of Nations by Adam Smith, Thomas Malthus, union organizing, Washington Consensus

The powerful stand above treaties and laws. Constraints on capital flow are barred: for example, the conditions imposed by Chile to discourage inflows of short-term capital, widely credited with having insulated Chile somewhat from the destructive impact of highly volatile financial markets subject to unpredictable herdlike irrationality. Or more far-reaching measures that might well reverse the deleterious consequences of liberalizing capital flows. Serious proposals to achieve these ends have been on the table for years, but have never reached the agenda of the “architects of power.” It may well be that the economy is harmed by financial liberalization, as the evidence suggests. But that is a matter of little moment in comparison with the advantages conferred by the liberalization of financial flows for a quarter century, initiated by the governments of the United States and UK, primarily.

Rethinking Islamism: The Ideology of the New Terror by Meghnad Desai

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

Ayatollah Khomeini, battle of ideas, Berlin Wall, full employment, global village, illegal immigration, income per capita, invisible hand, liberal capitalism, liberation theology, Mahatma Gandhi, Martin Wolf, means of production, oil shock, purchasing power parity, Ronald Reagan, structural adjustment programs, The Wealth of Nations by Adam Smith, Yom Kippur War

฀States฀which฀used฀to฀be฀part฀ of฀ the฀ old฀ USSR฀ and฀ were฀ now฀ independent฀ saw฀ their฀ economies฀ collapse,฀and฀their฀rulers฀indulge฀in฀the฀most฀rapacious฀looting฀of฀ public฀assets.฀Many฀of฀these฀states฀had฀a฀large฀Muslim฀population฀ which฀had฀thus฀far฀been฀subjected฀to฀religious฀repression.฀Now฀that฀   ฀  the฀old฀system฀could฀no฀longer฀provide฀bread฀or฀circuses,฀the฀time฀ was฀ripe฀for฀Islamists฀to฀move฀in. Globalisation฀accelerated฀the฀spread฀of฀liberal฀capitalism.฀Many฀ countries฀ that฀ had฀ sought฀ to฀ use฀ their฀ independence฀ to฀ fashion฀ a฀ national฀ development฀ strategy฀ found฀ that฀ they฀ were฀ exposed฀ to฀ the฀ vagaries฀ of฀ the฀ international฀ bond฀ markets.฀ They฀ had฀ lost฀ their฀economic฀sovereignty.฀Countries฀that฀had฀a฀more฀or฀less฀wellfunctioning฀ economy฀ found฀ that฀ with฀ the฀ increased฀ availability฀ of฀ private฀ capital฀ old฀ policies฀ did฀ not฀ work฀ any฀ longer.฀ Mexico฀ had฀followed฀the฀advice฀of฀the฀IMF฀and฀won฀praise฀for฀its฀policy.฀ When฀the฀peso฀collapsed฀in฀December฀,฀there฀was฀widespread฀ misery.


pages: 223 words: 58,732

The Retreat of Western Liberalism by Edward Luce

3D printing, affirmative action, Airbnb, basic income, Berlin Wall, Bernie Sanders, Branko Milanovic, Bretton Woods, call centre, carried interest, centre right, cognitive dissonance, colonial exploitation, colonial rule, computer age, corporate raider, cuban missile crisis, currency manipulation / currency intervention, Dissolution of the Soviet Union, Doha Development Round, Donald Trump, double entry bookkeeping, Erik Brynjolfsson, European colonialism, everywhere but in the productivity statistics, Fall of the Berlin Wall, Francis Fukuyama: the end of history, future of work, George Santayana, gig economy, Gini coefficient, global supply chain, illegal immigration, imperial preference, income inequality, informal economy, Internet of things, Jaron Lanier, knowledge economy, liberal capitalism, Marc Andreessen, Mark Zuckerberg, Martin Wolf, mass immigration, means of production, Monroe Doctrine, moral panic, more computing power than Apollo, mutually assured destruction, new economy, New Urbanism, Norman Mailer, offshore financial centre, one-China policy, Peace of Westphalia, Peter Thiel, Plutocrats, plutocrats, precariat, purchasing power parity, reserve currency, Richard Florida, Robert Gordon, Ronald Reagan, Second Machine Age, self-driving car, sharing economy, Silicon Valley, Skype, Snapchat, software is eating the world, South China Sea, Steve Jobs, superstar cities, TaskRabbit, telepresence, The Wealth of Nations by Adam Smith, Thomas L Friedman, Tyler Cowen: Great Stagnation, universal basic income, unpaid internship, Washington Consensus, We are the 99%, We wanted flying cars, instead we got 140 characters, white flight, World Values Survey, Yogi Berra

The first great blow was in Russia, where Vladimir Putin replaced Boris Yeltsin as president and set about closing down the system of free and fair elections while retaining its trappings. The West is good at screening out local detail when it is inconvenient, particularly in regard to Russia. In the 1980s, the Soviet Union’s collapse humiliated an entire generation of Western Sovietologists. None had been expecting it. In the 1990s, we convinced ourselves Russia was in transition from socialist autocracy to liberal capit­alism, even while Western consultants urged Moscow to adopt shock therapy, which would enable the rise of a new Russian oligarchy. On Western advice, Yeltsin privatised Russia’s most valuable state assets in a fire sale to a small coterie of businessmen in exchange for bankrolling his 1996 re-election. Still our faith was unshaken. In 2008, we believed Putin’s authoritarian interregnum had ended and that Russia had resumed its journey to sunlit uplands under Dimitry Medvedev.

Raw Data Is an Oxymoron by Lisa Gitelman

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

collateralized debt obligation, computer age, continuous integration, crowdsourcing, Drosophila, Edmond Halley, Filter Bubble, Firefox, fixed income, Google Earth, Howard Rheingold, index card, informal economy, Isaac Newton, Johann Wolfgang von Goethe, knowledge worker, liberal capitalism, lifelogging, Louis Daguerre, Menlo Park, optical character recognition, peer-to-peer, RFID, Richard Thaler, Silicon Valley, social graph, software studies, statistical model, Stephen Hawking, Steven Pinker, text mining, time value of money, trade route, Turing machine, urban renewal, Vannevar Bush

Adam Hochschild, Bury the Chains: Prophets and Rebels in the Fight to Free an Empire’s Slaves (Boston: Houghton Mifflin, 2005), 197. 99 100 Ellen Gruber Garvey 7. See Augusta Rohrbach, “‘Truth Stronger and Stranger than Fiction’: Reexamining William Lloyd Garrison’s The Liberator,” Truth Stranger Than Fiction: Race, Realism, and the U.S. Literary Marketplace (New York: Palgrave, 2002), 2, for an examination of the relationship of The Liberator to “liberal capitalism and moral suasion.” 8. Dan McKanan, Identifying the Image of God: Radical Christians and Nonviolent Power in the Antebellum United States (New York: Oxford University Press, 2007), 135. 9. Although writers like Spender have criticized Theodore Weld for failing to share authorial credit for American Slavery with his wife and sister-in-law, and he did sign the circular requesting information, his name does not actually appear on the 1839 edition as the book’s author.

Global Governance and Financial Crises by Meghnad Desai, Yahia Said

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

Asian financial crisis, bank run, banking crisis, Bretton Woods, capital controls, central bank independence, corporate governance, creative destruction, credit crunch, crony capitalism, currency peg, deglobalization, financial deregulation, financial innovation, Financial Instability Hypothesis, financial intermediation, financial repression, floating exchange rates, frictionless, frictionless market, German hyperinflation, information asymmetry, knowledge economy, liberal capitalism, liberal world order, Long Term Capital Management, market bubble, Mexican peso crisis / tequila crisis, moral hazard, Nick Leeson, oil shock, open economy, price mechanism, price stability, Real Time Gross Settlement, rent-seeking, short selling, special drawing rights, structural adjustment programs, Tobin tax, transaction costs, Washington Consensus

E. (1998) ‘Economic crises: evidence and insights from East Asia’, in Brookings Papers on Economic Activity, 2, Brookings Institute, Washington, DC, pp. 1–135. Gomez, E. T. and Jomo, K. S. (1999) Malaysia’s Political Economy: Politics, Patronage and Profits, 2nd edition, Cambridge University Press, Cambridge. Hamilton-Hart, N. (2000) ‘Indonesia: reforming the institutions of financial governance?’, Processed, Australian National University, Canberra. Helleiner, E. (1994) ‘Freeing money: why have states been more willing to liberalize capital controls than trade barriers?’, Policy Sciences, 27(4): 299–318. Hellmann, T., Murdock, K. and Stiglitz, J. (1997) ‘Financial restraint: toward a new paradigm’, in M. Aoki, H. Kim and M. Okuno-Fujiwara (eds), The Role of Government in East Asian Economic Development: Comparative Institutional Analysis, Clarendon Press, Oxford, pp. 163–207. Henderson, H. (2001) ‘The global financial casino’, in K.S.


pages: 662 words: 180,546

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

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

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

The neoliberal subject is not supposed to be “free” to meditate upon the nature and limits of her own freedom—that is the dreaded “relativism” which neoliberals uniformly denounce. 95 Behrent, “Liberalism Without Humanism.” This is discussed in the next chapter, in the section on governmentality. 96 See Kristol, “Socialism, Capitalism, Nihilism,” LAMP, Montreux meeting, 1972: “And what if the ‘self’ that is ‘realized’ under the conditions of liberal capitalism is a self that despises liberal capitalism, and uses its liberty to subvert and abolish a free society? To this question, Hayek—like Friedman—has no answer.” 97 There are exceptions to this generalization. For instance, the MPS member Gary Becker has proposed to solve illegal immigration by “selling” the rights to citizenship. This reduces state services to the ultimate commodity. It is significant that few other neoliberals have endorsed this complete dissolution of nationalist identity, although one could argue it follows logically from the other tenets of the program.


pages: 372 words: 107,587

The End of Growth: Adapting to Our New Economic Reality by Richard Heinberg

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

3D printing, agricultural Revolution, back-to-the-land, banking crisis, banks create money, Bretton Woods, carbon footprint, Carmen Reinhart, clean water, cloud computing, collateralized debt obligation, computerized trading, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency manipulation / currency intervention, currency peg, David Graeber, David Ricardo: comparative advantage, dematerialisation, demographic dividend, Deng Xiaoping, Elliott wave, en.wikipedia.org, energy transition, falling living standards, financial deregulation, financial innovation, Fractional reserve banking, full employment, Gini coefficient, global village, happiness index / gross national happiness, I think there is a world market for maybe five computers, income inequality, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Isaac Newton, Kenneth Rogoff, late fees, liberal capitalism, mega-rich, money market fund, money: store of value / unit of account / medium of exchange, mortgage debt, naked short selling, Naomi Klein, Negawatt, new economy, Nixon shock, offshore financial centre, oil shale / tar sands, oil shock, peak oil, Ponzi scheme, post-oil, price stability, private military company, quantitative easing, reserve currency, ride hailing / ride sharing, Ronald Reagan, short selling, special drawing rights, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, too big to fail, trade liberalization, tulip mania, working poor, zero-sum game

Those with privilege will no doubt struggle to maintain it, while the poor, driven to desperation by generally worsening economic conditions, may in increasing numbers of instances organize or even revolt in order to increase their share of a shrinking pie. In her 2008 book The Shock Doctrine: The Rise of Disaster Capitalism, Canadian anti-globalization author and activist Naomi Klein argued that modern neo-liberal capitalism thrives on disasters, in that politicians and corporate leaders take advantage of natural calamities and wars to ram though programs for privatization, free trade, and slashed social spending — programs that are inherently unpopular and would have little chance of adoption in ordinary times.51 Klein’s thesis seems confirmed in the present instance: the end of growth is presenting societies with an ongoing economic crisis, and we have already seen how, in the US, well-heeled investors and executives have benefited from government bailouts while millions of workers have lost jobs and homes.

Culture Shock! Costa Rica 30th Anniversary Edition by Claire Wallerstein

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

anti-communist, bilateral investment treaty, call centre, card file, fixed income, liberal capitalism, out of africa, Silicon Valley, sustainable-tourism, trade route, urban sprawl

Pretty much everything described as Costa Rican folklore is in fact from Guanacaste—including the country’s national dance, the ‘Punto Guanacasteco’ (allegedly invented by a bored musician jailed for drunkenness), national tree and national costume. Guanacaste is the only part of the country where colonial architecture can still be seen intact and traditional ox carts are in use. In fact, however, Guanacaste only became part of Costa Rica in 1824. Previously the southernmost province of Nicaragua, its inhabitants narrowly voted to leave that country because of the ongoing civil war between the liberal capital, León, and the powerful conservative trading town of Granada following independence from Spain in 1821. Nicaragua did not accept the loss of Guanacaste until 1858, when a border limit treaty was finally signed. The people of Guanacaste (known by the Meseta Central Ticos as cholos) clearly have a richer ethnic mix than most other areas of the country. Their Chorotega Indian heritage is very evident, as is the black blood from African and mulatto slaves brought with the original Spanish settlers.


pages: 290 words: 87,084

Branded Beauty by Mark Tungate

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

augmented reality, Berlin Wall, call centre, corporate social responsibility, double helix, East Village, Fall of the Berlin Wall, Frank Gehry, haute couture, invention of the printing press, joint-stock company, liberal capitalism, placebo effect, Ray Kurzweil, Silicon Valley, stem cell

In October 1941, its members blew up seven synagogues. According to Jacques Marseille in his history of L’Oréal, Eugène Schueller was familiar with a number of ‘Cagoulards’. Following the fall of France in 1940, he helped to finance Deloncle’s next group, Le Mouvement Social-Révolutionnaire (The Social Revolutionary Movement), whose aim was to ‘construct a new Europe with the cooperation of Germany and all other nations free, like her, of liberal capitalism, Judaism, Bolshevism and Freemasonry’. This time Schueller’s name appeared for all to see on the group’s posters and political tracts – alongside that of Jacques Corrèze, Deloncle’s secretary, who would later become chairman of L’Oréal’s American operations (‘Jacques Corrèze, L’Oréal official and Nazi collaborator, dies at 79’, New York Times, 28 June 1991). After the war, Schueller was called before a committee set up to identify collaborators.


pages: 356 words: 103,944

The Globalization Paradox: Democracy and the Future of the World Economy by Dani Rodrik

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

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

These arguments have been widely deployed in support of free capital flows. When Stanley Fischer made the case for capital mobility during the 1997 meetings of the IMF, he devoted a major part of his presentation to the adjustments required for countries to “prepare well” for capital mobility. As he put it, “economic policies and institutions, particularly the financial system, need to be adapted to operate in a world of liberalized capital markets.” Some of what needs to be done was well known, he said. Macroeconomic policies need to be “sound” the domestic financial system needs to be “strengthened” and the removal of capital controls should be phased in “appropriately.” But there were also issues about which there was less knowledge or consensus. How much information about their conduct of policy should central banks and other government authorities share with financial markets?


pages: 355 words: 92,571

Capitalism: Money, Morals and Markets by John Plender

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

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

Perhaps the most prominent British businessman of the time was Sir Alfred Mond, son of the founder of the chemical company Brunner Mond, which was at the core of the group of companies that came to be known as Imperial Chemical Industries (ICI). In his book After the Victorians, the novelist, biographer and journalist A. N. Wilson points out that when Mond was raised to the peerage with the title of Lord Melchett, he felt obliged to counter a denunciation of capitalism made by Philip Snowden in the House of Commons.223 In a classic defence of liberal capitalism, he talked of his father’s risk taking and altruism, of the dangers they had endured to build up a huge business and of the benefits to society that resulted. Father, son and various business partners had, he said, given work and prosperity to thousands, an enterprise which ‘could never have been commended under any Socialist system that I have ever known’. Mond believed that laissez-faire was no longer the way to produce general prosperity and strongly opposed confrontational industrial relations.


pages: 561 words: 87,892

Losing Control: The Emerging Threats to Western Prosperity by Stephen D. King

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

Admiral Zheng, asset-backed security, barriers to entry, Berlin Wall, Bernie Madoff, Bretton Woods, BRICs, British Empire, capital controls, Celtic Tiger, central bank independence, collateralized debt obligation, corporate governance, credit crunch, crony capitalism, currency manipulation / currency intervention, currency peg, David Ricardo: comparative advantage, demographic dividend, demographic transition, Deng Xiaoping, Diane Coyle, Fall of the Berlin Wall, financial deregulation, financial innovation, fixed income, Francis Fukuyama: the end of history, full employment, George Akerlof, German hyperinflation, Gini coefficient, hiring and firing, income inequality, income per capita, inflation targeting, invisible hand, Isaac Newton, knowledge economy, labour market flexibility, labour mobility, liberal capitalism, low skilled workers, market clearing, Martin Wolf, mass immigration, Mexican peso crisis / tequila crisis, Naomi Klein, new economy, old age dependency ratio, Paul Samuelson, Ponzi scheme, price mechanism, price stability, purchasing power parity, rent-seeking, reserve currency, rising living standards, Ronald Reagan, savings glut, Silicon Valley, Simon Kuznets, sovereign wealth fund, spice trade, statistical model, technology bubble, The Great Moderation, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, The Market for Lemons, The Wealth of Nations by Adam Smith, Thomas Malthus, trade route, transaction costs, Washington Consensus, women in the workforce, working-age population, Y2K, Yom Kippur War

As that consensus began to unravel in the 1970s with the failure of the Bretton Woods system of fixed but adjustable exchange rates, countries slowly moved away from capital controls to the world we’re now living in. In a world of constant financial innovation, it became increasingly difficult to impose capital controls successfully. Moreover, capital controls allowed countries to pursue bad domestic policies for too long, ultimately to their own detriment. Nevertheless, the abolition of capital controls has hardly been plain sailing. Some economists foresaw the problems associated with newly liberalized capital markets. James Tobin (1918–2002), for example, suggested in 1972 a (now-eponymous) tax – to be paid on foreign-exchange transactions – to limit speculative cross-border capital flows. He feared that the failures of Bretton Woods would be replaced by anarchy in the capital markets. On occasion, he was proved right. Enthusiasm for some kind of capital control has recently returned (as I wrote this book, capital controls were making a comeback: Brazil and Taiwan, for example, introduced capital controls in November 2009).


pages: 297 words: 89,206

Social Class in the 21st Century by Mike Savage

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

call centre, Capital in the Twenty-First Century by Thomas Piketty, Clapham omnibus, Corn Laws, deindustrialization, deskilling, Downton Abbey, financial independence, gender pay gap, Gini coefficient, income inequality, liberal capitalism, Mark Zuckerberg, megacity, moral panic, New Urbanism, Occupy movement, old-boy network, precariat, psychological pricing, Sloane Ranger, The Spirit Level, unpaid internship, upwardly mobile, very high income, winner-take-all economy, young professional

But this harking back to a critique of an old aristocratic culture is unhelpful. Elite educational institutions succeed not because they are in the pocket of the former aristocratic elite (though, of course, old habits die hard and it is still possible to find traces of this), but because they are at the apex of highly competitive recruitment and training processes which lie at the heart of contemporary neo-liberal capitalism. Meritocracy goes hand-in-hand with the generation of the kind of intense inequalities we have identified in this book. It thus follows that calls for more ‘education’ as a means of encouraging social mobility and addressing class inequalities have considerable limitations in the face of the growing inequalities witnessed in recent decades. The new class politics of classification We should once again take up a politics of equality.


pages: 233 words: 75,712

In Defense of Global Capitalism by Johan Norberg

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

Asian financial crisis, capital controls, clean water, correlation does not imply causation, creative destruction, Deng Xiaoping, Edward Glaeser, Gini coefficient, half of the world's population has never made a phone call, Hernando de Soto, illegal immigration, income inequality, informal economy, Joseph Schumpeter, Kenneth Rogoff, land reform, Lao Tzu, liberal capitalism, manufacturing employment, market fundamentalism, Mexican peso crisis / tequila crisis, Naomi Klein, new economy, open economy, profit motive, race to the bottom, rising living standards, school vouchers, Silicon Valley, Simon Kuznets, structural adjustment programs, The Wealth of Nations by Adam Smith, Tobin tax, trade liberalization, trade route, transaction costs, trickle-down economics, union organizing, zero-sum game

Politicians can create the appearance of rising wages by accelerating inflation, which is precisely what Swedish politicians did for 68 a long time. Because each dollar is then worth less, however, those increases are entirely chimerical. Growth and productivity alone are capable of raising real wages in the long run. All political and economic systems need rules, and this includes even the most liberal capitalism, which presupposes rules about legitimate ownership, the writing of contracts, the resolution of disputes, and many other matters. Those rules are a necessary framework required for markets to operate smoothly. But there are also rules that prevent the market economy from working— detailed regulations specifying the uses people can make of their property and making it difficult to start up a certain kind of activity, owing to the need for licenses and permits or to restrictive rules on pricing and business transactions.


pages: 586 words: 159,901

Wall Street: How It Works And for Whom by Doug Henwood

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

accounting loophole / creative accounting, activist fund / activist shareholder / activist investor, affirmative action, Andrei Shleifer, asset allocation, asset-backed security, bank run, banking crisis, barriers to entry, borderless world, Bretton Woods, British Empire, capital asset pricing model, capital controls, central bank independence, computerized trading, corporate governance, corporate raider, correlation coefficient, correlation does not imply causation, credit crunch, currency manipulation / currency intervention, David Ricardo: comparative advantage, debt deflation, declining real wages, deindustrialization, dematerialisation, diversification, diversified portfolio, Donald Trump, equity premium, Eugene Fama: efficient market hypothesis, experimental subject, facts on the ground, financial deregulation, financial innovation, Financial Instability Hypothesis, floating exchange rates, full employment, George Akerlof, George Gilder, hiring and firing, Hyman Minsky, implied volatility, index arbitrage, index fund, information asymmetry, interest rate swap, Internet Archive, invisible hand, Irwin Jacobs, Isaac Newton, joint-stock company, Joseph Schumpeter, kremlinology, labor-force participation, late capitalism, law of one price, liberal capitalism, liquidationism / Banker’s doctrine / the Treasury view, London Interbank Offered Rate, Louis Bachelier, market bubble, Mexican peso crisis / tequila crisis, microcredit, minimum wage unemployment, money market fund, moral hazard, mortgage debt, mortgage tax deduction, Myron Scholes, oil shock, Paul Samuelson, payday loans, pension reform, Plutocrats, plutocrats, price mechanism, price stability, prisoner's dilemma, profit maximization, publication bias, Ralph Nader, random walk, reserve currency, Richard Thaler, risk tolerance, Robert Gordon, Robert Shiller, Robert Shiller, selection bias, shareholder value, short selling, Slavoj Žižek, South Sea Bubble, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, The Market for Lemons, The Nature of the Firm, The Predators' Ball, The Wealth of Nations by Adam Smith, transaction costs, transcontinental railway, women in the workforce, yield curve, zero-coupon bond

There is constant pressure on older firms — and given the weakened state of large parts of the mainframe computer business, "older" can be defined pretty liberally — coming both from demanding rentiers and product market competition. Given the ownership and management structure of U.S. industry, there's a conflict among stockholders, managers, and workers over how to manage these strains. Wall Street would like to withdraw capital from these industries — slim them down or eliminate them entirely — and pocket the money. In high market theory, Wall Street can be relied upon to redeploy this liberated capital beneficently, and the squeezed industries will either discover a fountain of youth under the discipline of debt or die. Since the last 200 pages of this book have argued that Wall Street isn't up to that task, the whole finance and governance structure is called into serious question. The great advantage of Jensenism is that, when combined with an uncritical acceptance of the efficient market religion, it amounts to a unified field theory of economic regulation: all-knowing financial markets will guide real investment decisions towards their optimum, and with the proper GOVERNANCE set of incentives, owner-managers will follow this guidance without reservation.


pages: 790 words: 150,875

Civilization: The West and the Rest by Niall Ferguson

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

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

By 1990 the average American was seventy-three times richer than the average Chinese.17 Moreover, it became clear in the second half of the twentieth century that the only way to close that yawning gap in income was for Eastern societies to follow Japan’s example in adopting some (though not all) of the West’s institutions and modes of operation. As a result, Western civilization became a kind of template for the way the rest of the world aspired to organize itself. Prior to 1945, of course, there was a variety of developmental models – or operating systems, to draw a metaphor from computing – that could be adopted by non-Western societies. But the most attractive were all of European origin: liberal capitalism, national socialism, Soviet communism. The Second World War killed the second in Europe, though it lived on under assumed names in many developing countries. The collapse of the Soviet empire between 1989 and 1991 killed the third. To be sure, there has been much talk in the wake of the global financial crisis about alternative Asian economic models. But not even the most ardent cultural relativist is recommending a return to the institutions of the Ming dynasty or the Mughals.


pages: 471 words: 124,585

The Ascent of Money: A Financial History of the World by Niall Ferguson

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

Admiral Zheng, Andrei Shleifer, Asian financial crisis, asset allocation, asset-backed security, Atahualpa, bank run, banking crisis, banks create money, Black Swan, Black-Scholes formula, Bonfire of the Vanities, Bretton Woods, BRICs, British Empire, capital asset pricing model, capital controls, Carmen Reinhart, Cass Sunstein, central bank independence, collateralized debt obligation, colonial exploitation, commoditize, Corn Laws, corporate governance, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency manipulation / currency intervention, currency peg, Daniel Kahneman / Amos Tversky, deglobalization, diversification, diversified portfolio, double entry bookkeeping, Edmond Halley, Edward Glaeser, Edward Lloyd's coffeehouse, financial innovation, financial intermediation, fixed income, floating exchange rates, Fractional reserve banking, Francisco Pizarro, full employment, German hyperinflation, Hernando de Soto, high net worth, hindsight bias, Home mortgage interest deduction, Hyman Minsky, income inequality, information asymmetry, interest rate swap, Intergovernmental Panel on Climate Change (IPCC), Isaac Newton, iterative process, John Meriwether, joint-stock company, joint-stock limited liability company, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, knowledge economy, labour mobility, Landlord’s Game, liberal capitalism, London Interbank Offered Rate, Long Term Capital Management, market bubble, market fundamentalism, means of production, Mikhail Gorbachev, money market fund, money: store of value / unit of account / medium of exchange, moral hazard, mortgage debt, mortgage tax deduction, Myron Scholes, Naomi Klein, negative equity, Nick Leeson, Northern Rock, Parag Khanna, pension reform, price anchoring, price stability, principal–agent problem, probability theory / Blaise Pascal / Pierre de Fermat, profit motive, quantitative hedge fund, RAND corporation, random walk, rent control, rent-seeking, reserve currency, Richard Thaler, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, seigniorage, short selling, Silicon Valley, South Sea Bubble, sovereign wealth fund, spice trade, structural adjustment programs, technology bubble, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, Thomas Bayes, Thomas Malthus, Thorstein Veblen, too big to fail, transaction costs, value at risk, Washington Consensus, Yom Kippur War

Enron and 171 pensions 219 poverty rates 218 see also South America Latino borrowers 266 Law of Ann 191 law, finance and 37. see also regulation Law, Gerard 39-41 Law, John 126-7 absolutism 140 and banks see banks and paper money 138-9 and pensions 146 Lay, Kenneth 169-74 Leeson, Nick 288 Left wing 89 see also Labour party; socialists Lelystad 135 le Maire, Isaac 131 lending see banks; debt; loans; moneylenders Lenin, V. I. 246 alleged insight on currency devaluation 107 on imperialist rivalries and war 304 and money 17 less-developed countries 14. see also emerging markets leveraging 4. lex mercatoria 186 liability: limited see limited-liability companies unlimited 187 liberal imperialism 294 liberalization: capital market 310-12 economic 333 trade 305 Liberal party 202 liberals 89-90 Libor 265 Lifan company 333 life annuities 74 life expectancy 188 Lima 277 limited-liability companies 120 Lincoln, Abraham 93 Lincoln Savings and Loan 258n. liquidity 6. crises 55; see also financial crises ratios 62 and First World War 297 Liverpool 94 Liverpool, Lord (Prime Minister) 83 Lloyd George, David 202 Lloyd’s (London) 186-7 Lloyds Bank 56 Loaisa, Rodrigo de 23 Lo, Andrew 348 loans: conditional 185 forced 71-3 liquidity of 51 see also debt loan sharks 13 London & Westminster Bank 56 London: City of 53 as financial centre 299 insurance market 186-7 life expectancy in 190 Medici bank in 43 London Assurance Corporation 198 Londonderry, Thomas Pitt, Earl of 148 London Inter-Bank Offered Rate (Libor) 265.


pages: 369 words: 128,349

Beyond the Random Walk: A Guide to Stock Market Anomalies and Low Risk Investing by Vijay Singal

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

3Com Palm IPO, Andrei Shleifer, asset allocation, capital asset pricing model, correlation coefficient, cross-subsidies, Daniel Kahneman / Amos Tversky, diversified portfolio, endowment effect, fixed income, index arbitrage, index fund, information asymmetry, liberal capitalism, locking in a profit, Long Term Capital Management, loss aversion, margin call, market friction, market microstructure, mental accounting, merger arbitrage, Myron Scholes, new economy, prediction markets, price stability, profit motive, random walk, Richard Thaler, risk-adjusted returns, risk/return, selection bias, Sharpe ratio, short selling, survivorship bias, transaction costs, Vanguard fund

INCREASING AND VARYING CORRELATIONS Concern The key benefit from international investing arises because of low correlations between the domestic market and foreign markets. There are two criticisms of historical correlations. First, the correlations may be increasing due to greater global integration as evidenced by larger capital and trade flows. Moreover, as more and more emerging markets liberalize capital flows, the correlations will increase. If the correlations are increasing, the above analysis based on prior data overestimates the benefit from international investing. Reconsider the example in the preamble of “Evidence,” above. With a correlation of 0.60, the new portfolio’s risk fell from 18 percent to 16 percent. However, if the correlation is 0.70 instead of 0.60, then the new portfolio’s risk falls less, from 18 percent to 16.6 percent.


pages: 497 words: 143,175

Pivotal Decade: How the United States Traded Factories for Finance in the Seventies by Judith Stein

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

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

In 1985 Secretary of the Treasury James Baker added what was called structural adjustment to IMF injunctions. Baker believed that the liquidity problems of debtor countries had structural causes. The solution was to shift to export-led growth, reduce the role of the state, and open up the economy to foreign capital. This was not simply a Washington project. The Europeans and IMF bureaucrats were equally enthusiastic and began encouraging developing countries to liberalize capital as well as trade accounts.93 The premise was that low savings and weak financial markets hampered development. Access to funds from abroad would boost investment and growth. After the demise of the Soviet Union, leaders of the developed and developing nations were giddy with expectations that free markets, global connections, and new technology could transform the world. A crisis in Mexico in 1994 should have been the canary in the coal mine.


pages: 543 words: 147,357

Them And Us: Politics, Greed And Inequality - Why We Need A Fair Society by Will Hutton

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

Andrei Shleifer, asset-backed security, bank run, banking crisis, Benoit Mandelbrot, Berlin Wall, Bernie Madoff, Big bang: deregulation of the City of London, Bretton Woods, capital controls, carbon footprint, Carmen Reinhart, Cass Sunstein, centre right, choice architecture, cloud computing, collective bargaining, conceptual framework, Corn Laws, corporate governance, creative destruction, credit crunch, Credit Default Swap, debt deflation, decarbonisation, Deng Xiaoping, discovery of DNA, discovery of the americas, discrete time, diversification, double helix, Edward Glaeser, financial deregulation, financial innovation, financial intermediation, first-past-the-post, floating exchange rates, Francis Fukuyama: the end of history, Frank Levy and Richard Murnane: The New Division of Labor, full employment, George Akerlof, Gini coefficient, global supply chain, Growth in a Time of Debt, Hyman Minsky, I think there is a world market for maybe five computers, income inequality, inflation targeting, interest rate swap, invisible hand, Isaac Newton, James Dyson, James Watt: steam engine, joint-stock company, Joseph Schumpeter, Kenneth Rogoff, knowledge economy, knowledge worker, labour market flexibility, liberal capitalism, light touch regulation, Long Term Capital Management, Louis Pasteur, low-wage service sector, mandelbrot fractal, margin call, market fundamentalism, Martin Wolf, mass immigration, means of production, Mikhail Gorbachev, millennium bug, money market fund, moral hazard, moral panic, mortgage debt, Myron Scholes, Neil Kinnock, new economy, Northern Rock, offshore financial centre, open economy, Plutocrats, plutocrats, price discrimination, private sector deleveraging, purchasing power parity, quantitative easing, race to the bottom, railway mania, random walk, rent-seeking, reserve currency, Richard Thaler, Right to Buy, rising living standards, Robert Shiller, Robert Shiller, Ronald Reagan, Rory Sutherland, Satyajit Das, shareholder value, short selling, Silicon Valley, Skype, South Sea Bubble, Steve Jobs, The Market for Lemons, the market place, The Myth of the Rational Market, the payments system, the scientific method, The Wealth of Nations by Adam Smith, too big to fail, unpaid internship, value at risk, Vilfredo Pareto, Washington Consensus, wealth creators, working poor, zero-sum game, éminence grise

When viewed in these terms, the mind-boggling scale and cost of the credit crunch – in total governments worldwide have so far spent $14 trillion on supporting their banking systems – is almost as big a crisis for market fundamentalism and financial capitalism as the collapse of the Soviet Union was for economic planning and communism. What happened between 1989 and 1992 did not just represent the triumph of liberal capitalism; it was claimed as the triumph of the market fundamentalist ideologues who believed that they had engineered it. If communism was the logical conclusion of left thinking, it had collapsed. Some twenty years later the same can be said of market fundamentalism, the logical conclusion of right thinking. The extremes of left and right alike have both been tried – and found wanting. Both Labour and the Conservatives have thus lost their moral and ideological moorings.


pages: 632 words: 159,454

War and Gold: A Five-Hundred-Year History of Empires, Adventures, and Debt by Kwasi Kwarteng

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

accounting loophole / creative accounting, anti-communist, Asian financial crisis, asset-backed security, Atahualpa, balance sheet recession, bank run, banking crisis, Big bang: deregulation of the City of London, Bretton Woods, British Empire, California gold rush, capital controls, Carmen Reinhart, central bank independence, centre right, collapse of Lehman Brothers, collateralized debt obligation, credit crunch, currency manipulation / currency intervention, Deng Xiaoping, discovery of the americas, Etonian, eurozone crisis, fiat currency, financial innovation, fixed income, floating exchange rates, Francisco Pizarro, full employment, German hyperinflation, hiring and firing, income inequality, invisible hand, Isaac Newton, John Maynard Keynes: Economic Possibilities for our Grandchildren, joint-stock company, joint-stock limited liability company, Joseph Schumpeter, Kenneth Rogoff, labour market flexibility, liberal capitalism, market bubble, money: store of value / unit of account / medium of exchange, moral hazard, new economy, oil shock, Plutocrats, plutocrats, Ponzi scheme, price mechanism, quantitative easing, rolodex, Ronald Reagan, South Sea Bubble, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, the market place, The Wealth of Nations by Adam Smith, too big to fail, War on Poverty, Yom Kippur War

Then, finally, it was moved up once again to 80 per cent in May 1917. There was much evasion, but its general success is indisputable. By 1918–19 it was generating £285 million for the Treasury. This was almost a third of the government’s revenue for that year.21 The ‘excess profits duty’ also showed the single-mindedness with which Britain applied itself to winning the war. The London of 1914 had been the home of Lombard Street, of liberal capitalism, of the upper-class world depicted by writers like P. G. Wodehouse and John Galsworthy. Yet, in a sudden reversal, Britain would tax its capitalists more rigorously than any of the other belligerents. Despite the considerable demands on British finance, the British government felt confident enough to give loans to foreign governments, to a greater extent than it borrowed from them. Total overseas borrowing by the government during the war amounted to £1,365 million by the end of the financial year 1918–19.


pages: 566 words: 163,322

The Rise and Fall of Nations: Forces of Change in the Post-Crisis World by Ruchir Sharma

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

3D printing, Asian financial crisis, backtesting, bank run, banking crisis, Berlin Wall, Bernie Sanders, BRICs, business climate, business process, call centre, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, central bank independence, centre right, colonial rule, Commodity Super-Cycle, corporate governance, creative destruction, crony capitalism, currency peg, dark matter, debt deflation, deglobalization, deindustrialization, demographic dividend, demographic transition, Deng Xiaoping, Doha Development Round, Donald Trump, Edward Glaeser, Elon Musk, eurozone crisis, failed state, Fall of the Berlin Wall, falling living standards, Francis Fukuyama: the end of history, Freestyle chess, Gini coefficient, hiring and firing, income inequality, indoor plumbing, industrial robot, inflation targeting, Internet of things, Jeff Bezos, job automation, John Markoff, Joseph Schumpeter, Kenneth Rogoff, knowledge economy, labor-force participation, liberal capitalism, Malacca Straits, Mark Zuckerberg, market bubble, mass immigration, megacity, Mexican peso crisis / tequila crisis, mittelstand, moral hazard, New Economic Geography, North Sea oil, oil rush, oil shale / tar sands, oil shock, pattern recognition, Paul Samuelson, Peter Thiel, pets.com, Plutocrats, plutocrats, Ponzi scheme, price stability, Productivity paradox, purchasing power parity, quantitative easing, Ralph Waldo Emerson, random walk, rent-seeking, reserve currency, Ronald Coase, Ronald Reagan, savings glut, secular stagnation, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, Simon Kuznets, smart cities, Snapchat, South China Sea, sovereign wealth fund, special economic zone, spectrum auction, Steve Jobs, The Future of Employment, The Wisdom of Crowds, Thomas Malthus, total factor productivity, trade liberalization, trade route, tulip mania, Tyler Cowen: Great Stagnation, unorthodox policies, Washington Consensus, WikiLeaks, women in the workforce, working-age population

The fact that crisis and revolt can force even reluctant elites to reform has been clear at least since the early critiques of Marx, who thought capitalist societies would collapse in a series of increasingly violent attempts to defend the upper classes. Instead, facing the economic depressions of the late nineteenth and early twentieth centuries, political leaders proved capable of reforming liberal capitalism, deflecting popular revolt with the creation of the welfare state, starting in Germany and Britain. The link between boom times and political complacency is equally well documented, for example, in the cases of modern Japan and Europe, which are often described as too comfortably rich to push tough reform. What is far less well recognized is that even in more normal periods, the circle of life turns, constantly shaping and reshaping economies for the better or worse.


pages: 868 words: 147,152

How Asia Works by Joe Studwell

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

affirmative action, anti-communist, Asian financial crisis, bank run, banking crisis, barriers to entry, borderless world, Bretton Woods, British Empire, call centre, capital controls, central bank independence, collective bargaining, crony capitalism, cross-subsidies, currency manipulation / currency intervention, David Ricardo: comparative advantage, deindustrialization, demographic dividend, Deng Xiaoping, failed state, financial deregulation, financial repression, Gini coefficient, glass ceiling, income inequality, income per capita, industrial robot, Joseph Schumpeter, Kenneth Arrow, land reform, land tenure, large denomination, liberal capitalism, market fragmentation, non-tariff barriers, offshore financial centre, oil shock, open economy, passive investing, purchasing power parity, rent control, rent-seeking, Right to Buy, Ronald Coase, South China Sea, The Wealth of Nations by Adam Smith, urban sprawl, Washington Consensus, working-age population

The loudest and most evangelical message of these agencies was that deregulating the financial sector could put the development efforts of lagging countries back on track. States were encouraged to privatise existing banks and license new banks, to take a laissez-faire attitude to international flows of capital and to expand stock markets. The argument of the Washington Consensus was that liberated capital would then itself identify the right investments to spur economic progress. What actually happened, in 1997, was a financial catastrophe on a scale similar to that which afflicted Latin America after 1982. Financial sector liberalisation in south-east Asia led not to better allocation of capital, but to control of private banks by business entrepreneurs whose interests, because they were not required to manufacture and were not subject to export discipline, were not aligned with those of national development.


pages: 469 words: 146,487

Empire: How Britain Made the Modern World by Niall Ferguson

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

British Empire, Cape to Cairo, colonial rule, Corn Laws, European colonialism, imperial preference, income per capita, John Harrison: Longitude, joint-stock company, Khartoum Gordon, Khyber Pass, land reform, land tenure, liberal capitalism, Livingstone, I presume, Mahatma Gandhi, mass immigration, night-watchman state, profit motive, Scramble for Africa, spice trade, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, the new new thing, The Wealth of Nations by Adam Smith, Thomas Malthus, trade route, transatlantic slave trade, transatlantic slave trade, union organizing, zero-sum game

Sir Richard Turnbull, the penultimate Governor of Aden, once told Labour politician Denis Healey that ‘when the British Empire finally sank beneath the waves of history, it would leave behind it only two monuments: one was the game of Association Football, the other was the expression “Fuck off”.’ In truth, the imperial legacy has shaped the modern world so profoundly that we almost take it for granted. Without the spread of British rule around the world, it is hard to believe that the structures of liberal capitalism would have been so successfully established in so many different economies around the world. Those empires that adopted alternative models – the Russian and the Chinese – imposed incalculable misery on their subject peoples. Without the influence of British imperial rule, it is hard to believe that the institutions of parliamentary democracy would have been adopted by the majority of states in the world, as they are today.


pages: 405 words: 117,219

In Our Own Image: Savior or Destroyer? The History and Future of Artificial Intelligence by George Zarkadakis

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

3D printing, Ada Lovelace, agricultural Revolution, Airbnb, Alan Turing: On Computable Numbers, with an Application to the Entscheidungsproblem, anthropic principle, Asperger Syndrome, autonomous vehicles, barriers to entry, battle of ideas, Berlin Wall, bioinformatics, British Empire, business process, carbon-based life, cellular automata, Claude Shannon: information theory, combinatorial explosion, complexity theory, continuous integration, Conway's Game of Life, cosmological principle, dark matter, dematerialisation, double helix, Douglas Hofstadter, Edward Snowden, epigenetics, Flash crash, Google Glasses, Gödel, Escher, Bach, income inequality, index card, industrial robot, Internet of things, invention of agriculture, invention of the steam engine, invisible hand, Isaac Newton, Jacquard loom, Jacquard loom, Jacques de Vaucanson, James Watt: steam engine, job automation, John von Neumann, Joseph-Marie Jacquard, liberal capitalism, lifelogging, millennium bug, Moravec's paradox, natural language processing, Norbert Wiener, off grid, On the Economy of Machinery and Manufactures, packet switching, pattern recognition, Paul Erdős, post-industrial society, prediction markets, Ray Kurzweil, Rodney Brooks, Second Machine Age, self-driving car, Silicon Valley, speech recognition, stem cell, Stephen Hawking, Steven Pinker, strong AI, technological singularity, The Coming Technological Singularity, The Future of Employment, the scientific method, theory of mind, Turing complete, Turing machine, Turing test, Tyler Cowen: Great Stagnation, Vernor Vinge, Von Neumann architecture, Watson beat the top human players on Jeopardy!, Y2K

The tension between totalitarian utopias and free-market idealism resulted in the destruction of the ancient imperial order, caused the violent death of tens of millions during two world wars and accelerated the development of new technologies – of which computers were perhaps the most important one. We now live at a time when the aftermath of the Cold War seems like a fading echo of the past. The apparent victory of liberal capitalism over communism, symbolised by the destruction of the Berlin Wall in November 1989, is nowadays doubted and challenged. The Great Recession that was set off in 2007 has demonstrated that unregulated financial markets create financial bubbles that can bring down the entire world economy. Millions of livelihoods have been destroyed in southern Europe, where double-digit unemployment has wiped out hope for the next two generations at least.


pages: 700 words: 201,953

The Social Life of Money by Nigel Dodd

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

accounting loophole / creative accounting, bank run, banking crisis, banks create money, Bernie Madoff, bitcoin, blockchain, borderless world, Bretton Woods, BRICs, capital controls, cashless society, central bank independence, collapse of Lehman Brothers, collateralized debt obligation, commoditize, computer age, conceptual framework, credit crunch, cross-subsidies, David Graeber, debt deflation, dematerialisation, disintermediation, eurozone crisis, fiat currency, financial exclusion, financial innovation, Financial Instability Hypothesis, financial repression, floating exchange rates, Fractional reserve banking, German hyperinflation, Goldman Sachs: Vampire Squid, Hyman Minsky, illegal immigration, informal economy, interest rate swap, Isaac Newton, John Maynard Keynes: Economic Possibilities for our Grandchildren, joint-stock company, Joseph Schumpeter, Kula ring, laissez-faire capitalism, land reform, late capitalism, liberal capitalism, liquidity trap, litecoin, London Interbank Offered Rate, M-Pesa, Marshall McLuhan, means of production, mental accounting, microcredit, mobile money, money market fund, money: store of value / unit of account / medium of exchange, mortgage debt, negative equity, new economy, Nixon shock, Occupy movement, offshore financial centre, paradox of thrift, payday loans, Peace of Westphalia, peer-to-peer, peer-to-peer lending, Ponzi scheme, post scarcity, postnationalism / post nation state, predatory finance, price mechanism, price stability, quantitative easing, quantitative trading / quantitative finance, remote working, rent-seeking, reserve currency, Richard Thaler, Robert Shiller, Robert Shiller, Satoshi Nakamoto, Scientific racism, seigniorage, Skype, Slavoj Žižek, South Sea Bubble, sovereign wealth fund, special drawing rights, The Wealth of Nations by Adam Smith, too big to fail, trade liberalization, transaction costs, Veblen good, Wave and Pay, Westphalian system, WikiLeaks, Wolfgang Streeck, yield curve, zero-coupon bond

The nature of such changes, and their broad effect on Marxism, has been widely debated (Arrighi 2005a, 2005ba; Harvey 2005b; Callinicos 2009), and there is no need to rehearse the arguments in detail here. Our primary interest is in their implications for Marx’s theory of money and credit. The most significant contributions toward revising Marxist theory in light of the changes just mentioned came from Hilferding and Lenin. In Finance Capital (originally published in 1910, 2007 cited here), Hilferding sought to capture the transition from a competitive and pluralistic “liberal” capitalism toward a monopolistic form of capitalism in which finance had a crucial role. In particular, he focused on the merger, which he saw taking place in Germany, between banking capital and industrial capital. Hilferding suggested that the ultimate outcome of such a merger would be the formation of a general cartel through which capitalist production would be regulated, as by a “single body which could determine the volume of production in all the branches of industry” (Hilferding 2007: 304).


pages: 780 words: 168,782

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

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

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

(When she was later asked about her status as Britain’s first female prime minister, she would say that she preferred to be remembered as the first scientist who won the office.) At Oxford, Thatcher did not make a name for herself as a radical enthusiast of the values that would later be associated with her name. The Toryism of the time was very much under the sway of the period’s progressive mainstream. Just before the 1945 election, Oxford’s student conservatives published a paper declaring that “Liberal Capitalism is as dead as Aristocratic Feudalism,” and welcoming “a state without privilege where each shall enrich himself through the enrichment of all.”16 No one can recall Margaret Roberts taking up a stand that radically differed from this stance. She later claimed to have read Friedrich von Hayek’s Road to Serfdom during her last year at Oxford. If so, it had little visible effect on her public positions.


pages: 903 words: 235,753

The Stack: On Software and Sovereignty by Benjamin H. Bratton

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

1960s counterculture, 3D printing, 4chan, Ada Lovelace, additive manufacturing, airport security, Alan Turing: On Computable Numbers, with an Application to the Entscheidungsproblem, algorithmic trading, Amazon Mechanical Turk, Amazon Web Services, augmented reality, autonomous vehicles, basic income, Benevolent Dictator For Life (BDFL), Berlin Wall, bioinformatics, bitcoin, blockchain, Buckminster Fuller, Burning Man, call centre, carbon footprint, carbon-based life, Cass Sunstein, Celebration, Florida, charter city, clean water, cloud computing, connected car, corporate governance, crowdsourcing, cryptocurrency, dark matter, David Graeber, deglobalization, dematerialisation, disintermediation, distributed generation, don't be evil, Douglas Engelbart, Douglas Engelbart, Edward Snowden, Elon Musk, en.wikipedia.org, Eratosthenes, ethereum blockchain, facts on the ground, Flash crash, Frank Gehry, Frederick Winslow Taylor, future of work, Georg Cantor, gig economy, global supply chain, Google Earth, Google Glasses, Guggenheim Bilbao, High speed trading, Hyperloop, illegal immigration, industrial robot, information retrieval, Intergovernmental Panel on Climate Change (IPCC), intermodal, Internet of things, invisible hand, Jacob Appelbaum, Jaron Lanier, John Markoff, Jony Ive, Julian Assange, Khan Academy, liberal capitalism, lifelogging, linked data, Mark Zuckerberg, market fundamentalism, Marshall McLuhan, Masdar, McMansion, means of production, megacity, megastructure, Menlo Park, Minecraft, Monroe Doctrine, Network effects, new economy, offshore financial centre, oil shale / tar sands, packet switching, PageRank, pattern recognition, peak oil, peer-to-peer, performance metric, personalized medicine, Peter Eisenman, Peter Thiel, phenotype, Philip Mirowski, Pierre-Simon Laplace, place-making, planetary scale, RAND corporation, recommendation engine, reserve currency, RFID, Robert Bork, Sand Hill Road, self-driving car, semantic web, sharing economy, Silicon Valley, Silicon Valley ideology, Slavoj Žižek, smart cities, smart grid, smart meter, social graph, software studies, South China Sea, sovereign wealth fund, special economic zone, spectrum auction, Startup school, statistical arbitrage, Steve Jobs, Steven Levy, Stewart Brand, Stuxnet, Superbowl ad, supply-chain management, supply-chain management software, TaskRabbit, the built environment, The Chicago School, the scientific method, Torches of Freedom, transaction costs, Turing complete, Turing machine, Turing test, universal basic income, urban planning, Vernor Vinge, Washington Consensus, web application, Westphalian system, WikiLeaks, working poor, Y Combinator

New Left Review, no. 61 (January/February 2010): 45, http://newleftreview.org/II/61/mike-davis-who-will-build-the-ark: “Tackling the challenge of sustainable urban design for the whole planet, and not just for a few privileged countries or social groups, requires a vast stage for the imagination, such as the arts and sciences inhabited in the May Days of Vkhutemas and the Bauhaus. It presupposes a radical willingness to think beyond the horizon of neo-liberal capitalism toward a global revolution that reintegrates the labour of the informal working classes, as well as the rural poor, in the sustainable reconstruction of their built environments and livelihoods.” 15.  Martin Heidegger interview with Der Spiegel by Rudolf Augstein and Georg Wolff, September 23, 1966, published May 31, 1976. 16.  Latour's unfortunate and broadly dismissive remarks on geoengineering: Bruno Latour, keynote speech (CAST Symposium: Seeing/Sounding/Sensing, MIT Media Lab, Cambridge, September 26, 2014), https://www.youtube.com/watch?


pages: 585 words: 165,304

Trust: The Social Virtue and the Creation of Prosperity by Francis Fukuyama

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

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

Finally, the keiretsu bank, through preferential lending, can serve as a price-clearing agent, helping to equalize rates of return for member companies whose profits have been adversely affected by noncompetitive pricing, much like a corporate treasury that compensates divisions for losses on distorted intracompany transfer pricing. There may be other rationales for intermarket keiretsu. The keiretsu’s brand names, for instance, can be used in new product markets to establish credibility. One very important function that the keiretsu played in the 1960s and 1970s was to block or otherwise control the degree of direct foreign investment in Japan. When the Japanese government agreed to liberalize capital markets in the late 1960s, many Japanese companies feared an influx of foreign, mostly U.S., competition as outside multinationals bought stakes in Japanese businesses. The importance of foreign direct investment to exports has typically been insufficiently appreciated; it is often very difficult for a multinational corporation to market in a foreign country unless it also manufactures its products there.24 As Mark Mason has shown, the level of intra-keiretsu cross-shareholding increased dramatically in anticipation of capital market liberalization, so as to make it more difficult for foreigners to acquire majority ownership of Japanese corporations.25 This tactic proved quite successful: few American multinationals were able to purchase more than minority interests in Japanese companies, even after they were legally permitted to do so.


pages: 823 words: 206,070

The Making of Global Capitalism by Leo Panitch, Sam Gindin

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

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

The report still repeatedly stressed that the role of international agencies was to provide “a mechanism for countries to make external commitments, making it more difficult to back-track on reforms,” including on the international treaties through which states committed themselves to “self-restricting rules, which precisely specify the content of policy and lock it into mechanisms that are costly to reverse.”78 This was what the IMF especially had done, although by the mid 1990s it had also started to take up the governance theme and apply it broadly to the institutional “reform” of states, albeit in terms that hewed closely to the language of neoclassical economics, designed to “enhance market confidence in a context of increasingly liberalized capital accounts.”79 Notably, however, while the G7 countries wanted the IMF to be given a larger surveillance role in ensuring that emerging markets adopted legal and institutional changes to facilitate not only capital flows but also market discipline, little progress was made on the European states’ proposal to amend the IMF articles of agreement so as to prohibit all restrictions on capital mobility.


pages: 1,016 words: 283,960

Aftermath: Following the Bloodshed of America's Wars in the Muslim World by Nir Rosen

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

Ayatollah Khomeini, failed state, glass ceiling, Google Earth, liberal capitalism, Parag Khanna, selection bias, unemployed young men, urban sprawl, éminence grise

The middle class, which might have formed the base of that dissent, was wiped out as savings were made worthless. Many Iraqis were driven from towns back to a rural and agricultural life, and the power of feudal landlords increased. A stated goal of the American occupation was to transform Iraq into a free-market economy. One of the first measures taken by the American occupation was to impose laws that liberalized capital accounts, currency trading, and investment regulations, and lifted price regulations and most state subsidies. An important principle guiding the occupation was not to invest in any state institution that could be privatized in the future, in anticipation of the liquidation of state assets. Extreme measures such as these radically changed the lives of Iraqis as they struggled with higher inflation and reduced state subsidies while imported consumption goods flooded the market at lower prices.


pages: 1,351 words: 404,177

Nixonland: The Rise of a President and the Fracturing of America by Rick Perlstein

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

affirmative action, Alistair Cooke, Bay Area Rapid Transit, Berlin Wall, Bretton Woods, cognitive dissonance, cuban missile crisis, delayed gratification, desegregation, East Village, European colonialism, full employment, Golden Gate Park, Haight Ashbury, immigration reform, In Cold Blood by Truman Capote, index card, indoor plumbing, Kitchen Debate, liberal capitalism, Mahatma Gandhi, Marshall McLuhan, Monroe Doctrine, moral panic, New Urbanism, Norman Mailer, Own Your Own Home, Paul Samuelson, Plutocrats, plutocrats, price mechanism, Ralph Nader, RAND corporation, rolodex, Ronald Reagan, sexual politics, the medium is the message, traveling salesman, upwardly mobile, urban planning, urban renewal, walking around money, War on Poverty, white picket fence, Whole Earth Catalog

Now history had caught them in a bind: with the boom they had helped build, ordinary laborers were becoming ever less reliably downtrodden, vulnerable to appeal from the Republicans. The pollster Samuel Lubell was the first to recognize it: “The inner dynamics of the Roosevelt coalition have shifted from those of getting to those of keeping.” Their liberal champions developed a distaste for them. One of the ways it manifested itself was in matters of style. The liberal capitalism that had created this mass middle class created, in its wake, a mass culture of consumption. And the liberals whose New Deal created this mass middle class were more and more turning their attention to critiquing the degraded mass culture of cheap sensation and plastic gadgets and politicians who seemed to cater to this lowest common denominator—public-relations-driven politicians who catered to only the basest and most sentimental emotions in men.


pages: 1,445 words: 469,426

The Prize: The Epic Quest for Oil, Money & Power by Daniel Yergin

Amazon: amazon.comamazon.co.ukamazon.deamazon.fr

anti-communist, Ayatollah Khomeini, bank run, Berlin Wall, British Empire, colonial exploitation, Columbine, continuation of politics by other means, cuban missile crisis, energy security, European colonialism, Exxon Valdez, financial independence, fudge factor, informal economy, joint-stock company, land reform, liberal capitalism, megacity, Mikhail Gorbachev, Monroe Doctrine, new economy, North Sea oil, oil rush, oil shale / tar sands, oil shock, old-boy network, postnationalism / post nation state, price stability, RAND corporation, rent-seeking, Ronald Reagan, shareholder value, Thomas Malthus, Yom Kippur War

When the League of Nations condemned Japan for its actions in Manchuria, it stalked out of the League and embarked on its own path—one that would eventually lead to ruin.[3] The New Order in Asia Over the next few years, as Tokyo elaborated its claims to a "mission" and "special responsibilities in East Asia," Japanese politics seethed with conspiracies, ideological movements, and secret societies that rejected liberalism, capitalism, and democracy as engines of weakness and decadence. It was thought that there was nothing more noble than to die in battle for the Emperor. Yet some elements in the Japanese military were also, by the mid-1930s, focusing on the more practical question of how to wage modern warfare. Promulgating a doctrine of total war, they sought to establish a "national defense state" in which the industrial and military resources of the country would all be built up and harnessed for that grim eventuality.