trickle-down economics

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The Darwin Economy: Liberty, Competition, and the Common Good by Robert H. Frank

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Economic theory tells us nothing—absolutely nothing—about of which of these opposing effects might prevail. If economic theory provides no justification for the trickle-down doctrine, what do the numbers say? Here as well, the doctrine finds little support. One test is suggested by the observation that if lower real wages induce people to work shorter hours, then the opposite should be true when real wages increase. Since 1900, average hourly wages in the United States have risen more than fivefold in inflation-adjusted terms. According to trickledown theory, then, Americans should be working significantly longer hours now. Yet the current American workweek is only about half what it was in 1900. Trickle-down theory also predicts shorter workweeks in countries with lower real after-tax pay rates. Yet here, too, the numbers tell a different story.

See sports utility vehicles Sweden, lack of corruption in, 56 Switzerland, lack of corruption in, 56 talent, in success, 143–48 task specialization, 43, 203–4 tax(es): as inhibitor of economic growth, 13, 157–58; libertarian objections to, 6, 119–21; 239 need for mandatory, 6, 168–69, 202; slogans opposing, 168–71, 194–95; as social engineering, 13–14, 122–23; as theft, 6, 119, 154, 168–69, 202; trickle-down theory of, 157–62. See also specific types tax(es), on harmful activities, 13–15, 172–93; alcohol taxes as, 185–87; causing indirect harm, 187; economic growth caused by, 158; and helmet rules, 187–92; and Mill’s harm principle, 187, 188, 189, 190, 213; versus regulations, 13–14, 79–80, 123, 172–74, 213; slippery slope argument against, 193; soda taxes as, 192–93; tax on vehicle weight as, 183–84; tobacco taxes as, 184–85; versus useful activities, 13–15, 122. See also consumption tax, progressive; pollution taxes tax cuts: payroll tax, 13, 14, 112; trickle-down theory of, 157–62. See also income tax cuts tax rates: capital gains, 163; for hedge fund managers, 163, 167; marginal, 77; on top earners, impact on economic growth, 158, 162–64, 167, 213 tax reform: antitax slogans in conversation about, 168–71; essential questions to consider in, 168; need for fundamental, 81 tax revenue: from harmful versus useful activities, 13–15, 122; IRS budget cuts and, 3; from progressive consumption tax, 78–79, 80–81 Tea Party, 5, 181 technology.

Then, they thought, they could obtain the whole store of precious metal at once; however, upon cutting the goose open, they found its innards to be like that of any other goose.1 This tale is a perennial favorite of movement libertarians, who invoke it to remind those who favor a more progressive tax system that such a system would impoverish everyone. Former Fed Chairman Alan Greenspan, who describes himself as a libertarian, echoed this view when he wrote that “All taxes are a drag on economic growth. It’s only a matter of degree.”2 But it’s not just libertarians who believe taxes inhibit economic growth. Variations of that view, often called trickle-down theory, have been repeated so often by so many people across the political spectrum that it has acquired an air of settled truth. 157 158 CHAPTER TEN It cannot literally be true, of course, that all taxes are a drag on economic growth. As noted earlier, unless we tax something, we can’t organize and maintain a civil society and defend ourselves from foreign invaders, much less enjoy robust economic growth.

 

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A Pelican Introduction Economics: A User's Guide by Ha-Joon Chang

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Examples like this should make you both more sceptical about the power of economic theory and more cautious in drawing policy conclusions from it. Last but not least, we need to look at history because we have the moral duty to avoid ‘live experiments’ with people as much as possible. From the central planning in the former socialist bloc (and their ‘Big Bang’ transition back to capitalism), through to the disasters of ‘austerity’ policies in most European countries following the Great Depression, down to the failures of ‘trickle-down economics’ in the US and the UK during the 1980s and the 1990s, history is littered with radical policy experiments that have destroyed the lives of millions, or even tens of millions, of people. Studying history won’t allow us to completely avoid mistakes in the present, but we should do our best to extract lessons from history before we formulate a policy that will affect lives. If you have been persuaded by any of the above points, please read through the rest of the chapter, in which a lot of the historical ‘facts’ that you thought you knew may be challenged and thus the way you understand capitalism hopefully transformed at least a little bit.

The actor: Ronald Reagan and the re-making of the US economy Ronald Reagan, the former actor and a former governor of California, became the US president in 1981 and outdid Margaret Thatcher. The Reagan government aggressively cut the higher income tax rates, explaining that these cuts would give the rich greater incentives to invest and create wealth, as they could keep more of the fruits of their investments. Once they created more wealth, it was argued, the rich would spend more, creating more jobs and incomes for everyone else; this is known as the trickle-down theory. At the same time, subsidies to the poor (especially in housing) were cut and the minimum wage frozen so that they had a greater incentive to work harder. When you think about it, this was a curious logic – why do we need to make the rich richer to make them work harder but make the poor poorer for the same purpose? Curious or not, this logic, known as supply-side economics, became the foundational belief of economic policy for the next three decades in the US – and beyond.

Thus, if there is more income at the top, more of it will eventually ‘trickle down’ to the rest of the economy, making everyone richer than before. Even though the shares that poorer people get in the national income may be smaller, they will be better off in absolute terms. This is what Milton Friedman, the guru of free-market economics, meant when he said: ‘Most economic fallacies derive from … the tendency to assume that there is a fixed pie, that one party can gain only at the expense of another.’1 The belief in the trickle-down effect has prompted many governments to employ – or at least has provided them with the political cover for – pro-rich policies in the last three decades. Regulations on product, labour and financial markets were relaxed, making it easier for the rich to make money. Taxes on corporations and high-income earners were cut, making it easier for them to keep the money they thus make. Too much inequality is bad for the economy: instability and reduced mobility Few, if any, people would advocate the extreme egalitarianism of China under Mao or Cambodia under Pol Pot.

 

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The New Economics: A Bigger Picture by David Boyle, Andrew Simms

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Since Margaret Thatcher and Ronald Reagan, and in many ways before them as well, ‘trickle down’ was the conventional economic assumption that replaced Keynesian economics. If you helped some people get rich, then they would spend more and it would trickle down through the economy to the poorest. It survives to this day in most of the assumptions of mainstream regeneration and economic development, though it is even more obvious now than it was to Carville that wealth doesn’t trickle down, it floods up. In fact, of course, the great days of trickle down economics were still to come. Every government conditioned by the so-called Washington Consensus, as well as the all-powerful International Monetary Fund (IMF) and World Bank, believed that cutting taxes would in the end stimulate the economy, and – to start with – it did. But in the constant failure of regeneration, redistribution and community revitalization, it was increasingly obvious to most people outside that consensus that trickle down simply did not work.

But in the constant failure of regeneration, redistribution and community revitalization, it was increasingly obvious to most people outside that consensus that trickle down simply did not work. This was an era dominated by the set of policies that became known as ‘neoliberal’, though they bore no relation to any liberalism worthy of the name. The heart of this consensus was a redoubled reliance on money as the only measurement tool, 28 THE NEW ECONOMICS and a major commitment to trickle down economics via private corporations. It was more accurately an application of Darwin’s evolutionary theories to economics: a kind of survival of the economically fittest. But their interpretation of the ‘fit’ – the marketable, the profitable, the global – was not only a misreading of Darwin, but deeply inadequate. The financially ‘fit’ survived; those that did not fit into the shape of the new world, people, communities and nations, were bled dry.

The economist Paul Krugman, in his book Peddling Prosperity, estimates that as much as 70 per cent of the extraordinary economic growth of the 1980s in the USA was delivered to the richest 1 per cent of the population.6 There were 13 billionaires in the US in 1982, and by 1999 there were 268 – and that was before the dot.com boom.7 We have already seen how Bill Clinton won the 1992 presidential election with the help of the slogan ‘Trickle down doesn’t work’. Despite this definitive statement, most economic policy is based on this flawed old economic dictum that helping the wealth-creators will automatically help everybody else. If that wealth is not productive, or if the bargain driven with the producers is manifestly unfair, then the wealth will not trickle. Even so, the complete failure of so-called ‘trickle down economics’ seems to require some other explanations. Why, despite the apparent success of recent decades, has that not benefited the poorest? Some possible explanations are covered in the previous chapter, but a glimpse at some of the workshops that manufacture clothes for the big brand names is enough to see that there is a problem. Often the basic work is carried out by offshore packagers, who transform a pair of jeans made for big brand names for 20 US cents each (including wages) and sold in New York or London for $30, sewed by women and girls in Nicaragua working sometimes 20-hour shifts, sleeping in cramped breeze-block rooms.8 Then there are the taxes that benefit big over small, rich over poor.

 

pages: 300 words: 78,475

Third World America: How Our Politicians Are Abandoning the Middle Class and Betraying the American Dream by Arianna Huffington

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Perhaps the reason can be found in the stunning results of a study conducted by Northeastern University’s Center for Labor Market Studies that broke down the unemployment rate by household income.17 Unemployment for those making $150,000 a year, the study found, was only 3 percent in the last quarter of 2009. The rate for those in the middle income range was 9 percent—not far off the national average. The rate for those in the bottom 10 percent of income was a staggering 31 percent. These numbers, according to the Wall Street Journal’s Robert Frank, “raise questions about the theory behind what is informally known as ‘trickle down’ economics, since full employment at the top doesn’t seem to be translating into more jobs below.”18 In fact, these numbers do more than raise questions—they also supply the answers. Does anyone believe that the sense of urgency coming out of Washington wouldn’t be wildly different if the unemployment rate for the top 10 percent of income earners was 31 percent? If one-third of television news producers, pundits, bankers, and lobbyists were unemployed, would the measures proposed by the White House and Congress still be as anemic?

As part of the new religion, we were converted from citizens to consumers and taught a catechism about how the market—not “equality of conditions”—was the foundation of our country. Along the way, the social contract—especially the subsections protecting workers, poor people, and our air, water, and oceans—was fed into a shredder. Starting with the New Deal, we began constructing a social safety net to help the most vulnerable among us. But who needed a safety net when the laws of supply and demand were there to protect us, when the trickle-down theory would provide sustenance for us all? The missing tenet in this new free-market fundamentalism was the recognition, central to capitalism, that businessmen have responsibilities above and beyond the bottom line. Alfred Marshall, one of the founding fathers of modern capitalism, in an address to the British Economics Association in 1890, called it “economic chivalry.”15 He explained that “the desire of men for approval of their own conscience and for the esteem of others is an economic force of the first order of importance.”

 

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Meltdown: How Greed and Corruption Shattered Our Financial System and How We Can Recover by Katrina Vanden Heuvel, William Greider

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If the crisis was as severe as they claim, why didn’t they propose a more credible plan? With lack of oversight and transparency the cause of the current problem, how could they make a proposal so short in both? If a quick consensus is required, why not include provisions to stop the source of bleeding, to aid the millions of Americans that are losing their homes? Why not spend as much on them as on Wall Street? Do they still believe in trickle-down economics, when for the past eight years money has been trickling up to the wizards of Wall Street? Why not enact bankruptcy reform, to help Americans write down the value of the mortgage on their overvalued home? No one benefits from these costly foreclosures. The administration is once again holding a gun at our head, saying, “My way or the highway.” We have been bamboozled before by this tactic.

Youth Surviving Subprime A L L I S O N K I L K E N N Y March 17, 2008 When i heard about the subprime mortgage crisis,it sounded eerily similar to the shady credit card lending practices found on most college campuses. I imagined yet another financial bubble floating down from Wall Street, filled with the gelatinous slime of adjustable interest rates; one that would inevitably pop somewhere over Poor People, U.S.A., blanketing the unsuspecting citizens below. I knew the country’s economic situation was bad, and as usual, the poor would suffer the most. However, I did not foresee the trickle-down effect of the subprime fiasco where even my peers—recent college graduates and first time homeowners—would feel the sting from predatory lenders. “They go after young adults because they know we have to start building our credit and that we need money,” says 25-year-old Vanessa Valenzuela from Norwalk, California. She and her husband went bankrupt after dealing with predatory lenders. College Loan Connection But Vanessa and her husband aren’t alone.

 

pages: 309 words: 91,581

The Great Divergence: America's Growing Inequality Crisis and What We Can Do About It by Timothy Noah

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When Reagan publicly embraced supply-side theory (a since-discredited1 notion that lowering marginal income-tax rates would stimulate sufficient economic growth that the tax cut would pay for itself), his critics characterized it as “trickle-down economics,” a Marie Antoinetteish fantasy that tax cuts for the rich would somehow benefit everybody else. Reagan’s budget chief, David Stockman, later conceded the point when he stated, in a controversial 1981 Atlantic Monthly profile by William Greider, that the president’s bill phasing in across-the-board cuts in income tax rates was really “a Trojan horse to bring down the top rate.” Stockman elaborated: “It’s kind of hard to sell ‘trickle down,’ so the supply-side formula was the only way to get a tax policy that was really ‘trickle down.’ Supply-side is ‘trickle-down’ theory.”2 That same year, when congressional leaders asked President Reagan how he intended to make good on his promise to cut federal spending, he repeated a cherished, highly exaggerated, and racially inflammatory campaign chestnut about a “Chicago welfare queen” with “eighty names, thirty addresses, twelve Social Security cards,” and “four nonexisting deceased husbands” (on whom she collected veterans benefits) who amassed a tax-free income of more than $150,000.

 

Payback: Debt and the Shadow Side of Wealth by Margaret Atwood

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carbon footprint, delayed gratification, double entry bookkeeping, epigenetics, financial independence, illegal immigration, Jane Jacobs, Plutocrats, plutocrats, trickle-down economics, wage slave

When the great house tumbles down, these miserable wretches fall under it unnoticed: as they say in the old legends, before a man goes to the devil himself, he sends plenty of other souls thither. The trickle-down theory of economics has it that it’s good for rich people to get even richer because some of their wealth will trickle down, through their no doubt lavish spending, upon those who stand below them on the economic ladder. Notice that the metaphor is not that of a gushing waterfall but of a leaking tap: even the most optimistic endorsers of this concept do not picture very much real flow, as their language reveals. But everything in the human imagination and consequently in human life has both a positive and a negative version, and if the trickle-down theory of wealth is the positive, the negative is the trickle-down theory of debt. The debts that trickle down from large debtors may not in themselves be large, but they are large for those upon whom they trickle.

There’s a whole genre of Elizabethan and Jacobean drama known as the Revenge Tragedy, and if you look at some of these plays you can see the principles of revenge in action. In general, the plots go in for overkill — quite literally — since one revenge leads to another, and the bodies pile up at an almost industrial rate. It’s not just tit for tat, it’s tit-for-tat for tit-for-tat for rat-a-tat-tat, as in the early crime stories of Dashiell Hammett. In previous chapters, I mentioned the trickle-down theory of wealth and the trickle-down theory of debt, but the Revenge Tragedy illustrates the trickle-down theory of revenge: relatively innocent bystanders get the stuff splashed all over them. Hamlet is among other things a Revenge Tragedy, but as usual Shakespeare takes something from elsewhere and redoes it in a surprising way: it’s the slowness of the revenge, not its rapidity, that results in the deadbody pyramid at play’s end. Shakespeare also rewrites the Revenge Tragedy in The Merchant of Venice — a play so many-levelled and prickly that it’s still inspiring heated controversy today.

His boss is his enemy, Lawyer Wakem, who’s bought the mill and hired Tulliver as a complicated act of revenge: “Prosperous men take a little vengeance now and then,” says Eliot, ”as they take a diversion, when it comes easily in their way, and is no hindrance to business; and such small unimpassioned revenges have an enormous effect in life, running through all degrees of pleasant infliction, blocking the fit men out of places, and blackening characters in unpremeditated talk.” It’s the trickle-down theory of revenge, and Wakem is happy to participate in the process. . . . it presented itself as a pleasure to him to do the very thing that would cause Mr. Tulliver the most deadly mortification, — and a pleasure of a complex kind, not made up of crude malice, but mingling with the relish of self-approbation. To see an enemy humiliated gives a certain contentment, but this is jejune compared with the highly blent satisfaction of seeing him humiliated by your benevolent action . . .

 

pages: 336 words: 90,749

How to Fix Copyright by William Patry

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109 performers sculptors, illustrators—shows that individuals engaged in these activities have lower incomes than others with similar training and education, have episodic employment, and fewer benefits such as health care.112 Trickle-down economics works just as poorly in the copyright market as it does in the general economy. The term “trickle-down” has been attributed to humorist Will Rogers, who said during the Great Depression of the late 1920s to 1930s that the “money was all appropriated for the top in hopes that it would trickle down to the needy. Mr. Hoover didn’t know that money trickled up. Give it to the people at the bottom and the people at the top will have it before night, anyhow. But it will at least have passed through the poor fellow’s hand.”113 Trickle-down economics is based on an ideology that reducing taxes on the already wealthy will cause them to re-invest the saved amount in new productive endeavors, especially hiring new workers, leading in turn to long-term higher economic growth for everyone.

Figure 3.1 sets out (1) the actual 110 HOW TO FIX COPYRIGHT distribution of wealth in the United States; (2) what Americans think the actual distribution is; and (3) what Americans say they would like the distribution to be. top 20% second 20% third 20% fourth 20% bottom 20% ACTUAL DISTRIBUTION OF WEALTH WHAT AMERICANS THINK IT IS WHAT THEY WOULD LIKE IT TO BE 0 FIGURE 3.1 20 40 60 80 100 Actual Distribution of Wealth in the United States Source: Michael I. Norton, Harvard Business School; Dan Ariely, Duke University Here are a few facts about how the income gap came about and how trickle-down economics is simply redistribution of wealth upwards.When Ronald Reagan began his Presidency in January 1981, the top marginal tax rate was dramatically reduced from 69.125 percent to 39.1 percent.115 The effective tax rate for a head of household earning the equivalent of $1 million on non-investment income in 2010 dollars is now 32.4 percent.116 Where did the money saved from lower taxes go? In the late 1970s, right before the Reagan presidency, the top 1 percent of the population took in less than 9 percent of the total national income.

This was a 149 percent increase over 2009, which wasn’t shabby either.122 If it is true, as copyright theory goes, that wealth creation begins with individual authors, that wealth does not end up with them, thereby presenting a crisis in copyright policy. After decades of studying authors’ and artists’ actual living conditions, economist Ruth Towse concluded that “strengthening copyright has not apparently resulted in boosting royalty payments.”123 Copyright is a trickle-up system in which increasing rights results in more money flowing up, away from creators. 114 HOW TO FIX COPYRIGHT Trickle-down Economics and Restoration of Cultural Works One justification for the current, almost perpetual, term of copyright concentrated in large corporations is that longer rights will cause them to invest in restoring cultural works. Here is a version of the argument given by Jack Valenti before the U.S. House of Representatives in 1995, in advocating for extending the term of copyright for twenty more years for existing motion pictures.

 

pages: 580 words: 168,476

The Price of Inequality: How Today's Divided Society Endangers Our Future by Joseph E. Stiglitz

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It is thus not surprising that our growth has been stronger in periods in which inequality has been lower and in which we have been growing together.19 This was true not only in the decades after World War II but, even in more recent times, in the 1990s.20 Trickle-down economics Inequality’s apologists—and they are many—argue to the contrary that giving more money to the top will benefit everyone, partly because it would lead to more growth. This is an idea called trickle-down economics. It has a long pedigree—and has long been discredited. As we’ve seen, higher inequality has not led to more growth, and most Americans have actually seen their incomes sink or stagnate. What America has been experiencing in recent years is the opposite of trickle-down economics: the riches accruing to the top have come at the expense of those down below.21 One can think of what’s been happening in terms of slices of a pie.

What America has been experiencing in recent years is the opposite of trickle-down economics: the riches accruing to the top have come at the expense of those down below.21 One can think of what’s been happening in terms of slices of a pie. If the pie were equally divided, everyone would get a slice of the same size, so the top 1 percent would get 1 percent of the pie. In fact, they get a very big slice, about a fifth of the entire pie. But that means everyone else gets a smaller slice. Now, those who believe in trickle-down economics call this the politics of envy. One should look not at the relative size of the slices but at the absolute size. Giving more to the rich leads to a larger pie, so though the poor and middle get a smaller share of the pie, the piece of pie they get is enlarged. I wish that were so, but it’s not. In fact, it’s the opposite: as we noted, in the period of increasing inequality, growth has been slower—and the size of the slice given to most Americans has been diminishing.22 Young men (aged twenty-five to thirty-four) who are less educated have an even harder time; those who have only graduated from high school have seen their real incomes decline by more than a quarter in the last twenty-five years.23 But even households of individuals with a bachelor’s degree or higher have not done well—their median income (adjusted for inflation) fell by a tenth from 2000 to 2010.24 (Median income is the income such that half have an income greater than that number, half less.)

In fact, it’s the opposite: as we noted, in the period of increasing inequality, growth has been slower—and the size of the slice given to most Americans has been diminishing.22 Young men (aged twenty-five to thirty-four) who are less educated have an even harder time; those who have only graduated from high school have seen their real incomes decline by more than a quarter in the last twenty-five years.23 But even households of individuals with a bachelor’s degree or higher have not done well—their median income (adjusted for inflation) fell by a tenth from 2000 to 2010.24 (Median income is the income such that half have an income greater than that number, half less.) We’ll show later that whereas trickle-down economics doesn’t work, trickle-up economics may: all—even those at the top—could benefit by giving more to those at the bottom and the middle. A snapshot of America’s inequality The simple story of America is this: the rich are getting richer, the richest of the rich are getting still richer, 25 the poor are becoming poorer and more numerous, and the middle class is being hollowed out.

 

pages: 332 words: 89,668

Two Nations, Indivisible: A History of Inequality in America: A History of Inequality in America by Jamie Bronstein

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Affordable Care Act / Obamacare, back-to-the-land, barriers to entry, Bernie Sanders, big-box store, blue-collar work, Branko Milanovic, British Empire, Capital in the Twenty-First Century by Thomas Piketty, clean water, cognitive dissonance, collateralized debt obligation, collective bargaining, Community Supported Agriculture, corporate personhood, crony capitalism, deindustrialization, desegregation, Donald Trump, ending welfare as we know it, Frederick Winslow Taylor, full employment, Gini coefficient, income inequality, interchangeable parts, invisible hand, job automation, John Maynard Keynes: technological unemployment, labor-force participation, land reform, land tenure, low skilled workers, low-wage service sector, minimum wage unemployment, moral hazard, mortgage debt, New Urbanism, non-tariff barriers, obamacare, occupational segregation, Occupy movement, oil shock, Plutocrats, plutocrats, price discrimination, race to the bottom, rent control, road to serfdom, Ronald Reagan, Scientific racism, Simon Kuznets, single-payer health, strikebreaker, too big to fail, trade route, transcontinental railway, Triangle Shirtwaist Factory, trickle-down economics, universal basic income, Upton Sinclair, upwardly mobile, urban renewal, wage slave, War on Poverty, women in the workforce, working poor, Works Progress Administration

CHAPTER 7 The Triumph of Neoliberalism: 1979–1999 Stagflation and the oil shocks of the 1970s had brought economic malaise to the United States, setting the stage for widespread acceptance of a new, “neoliberal” theory of prosperity, divorced from both equality of condition and equality of opportunity. Over the course of the next decade, Ronald Reagan’s severe tax cuts and George H. W. Bush’s “trickle-down” economics promoted the idea that Americans should nurture and cultivate “job creators,” the wealthiest Americans, who, it was assumed, would reinvest in the economy and cause growth that would benefit all. The shift of much of the country’s industrial base to the southern tier of states, where unions had always been weak or nonexistent, led to the emergence of a united call for deregulation of the economy.1 However, not only did “trickle-down” economics fail to trickle down, but also many industrial jobs disappeared entirely, replaced by low-paid service jobs that relegated high-school graduates to poverty.2 Free trade continued to be an article of faith, and American manufacturers claimed that the only way to remain competitive in globalized markets was to move their manufacturing to countries like Mexico where labor commanded a lower wage.

When the Family Assistance Plan stalled and died, the political will to broaden the social safety net evaporated under economic pressure. Stagflation, the oil shocks of the 1970s, and deindustrialization brought malaise to the United States. These conditions enabled widespread acceptance of an alternative theory of prosperity, discussed in Chapter 7. Divorced from both equality of condition and equality of opportunity, Ronald Reagan’s tax cuts, military spending, safety-net slashing, and “trickle-down” economics promoted the idea that the freest markets were most efficient, and the most efficient markets produced the most prosperity. Although direct subsidies to income only represented a very small percentage of the annual U.S. budget, welfare programs and the people who used them came under attack. The formerly deserving poor, mothers with children, had now become “welfare queens,” and Bill Clinton, a Democratic president, collaborated with the Republican Congress to create time limits and work requirements for those on income support.

They based these arguments on the untested notions of Arthur Laffer, professor of business economics at the University of Southern California, who theorized in the 1970s that high taxes dissuaded people from working, thus harming productivity and economic growth. Lower tax rates, Laffer claimed, would reduce tax avoidance.5 Tax cuts would energize the wealthiest, who were the most likely to invest in an expansion of productive capacity, thus increasing private employment.6 The notion that tax cuts for the wealthiest would hasten economic growth was called “supply side” or “trickle-down” economics. The 1981 Economic Recovery Tax Act slashed the top income tax rate from 70 percent to 50 percent. A second piece of Reagan-era legislation in 1987 capped the top rate at 28 percent.7 With the advocacy of groups like Grover Norquist’s Americans for Tax Reform, cutting taxes, or at the very least never raising taxes, became an article of Republican Party faith. Republicans suggested that government bureaucracy was always inferior to private-sector activity—that there was no difference, essentially, between democratic government and dictatorship.

 

pages: 341 words: 89,986

Bricks & Mortals: Ten Great Buildings and the People They Made by Tom Wilkinson

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Berlin Wall, British Empire, cuban missile crisis, Donald Trump, double helix, experimental subject, false memory syndrome, financial independence, Ford paid five dollars a day, Frederick Winslow Taylor, Google Glasses, housing crisis, Mahatma Gandhi, megacity, neoliberal agenda, New Urbanism, traveling salesman, trickle-down economics, Upton Sinclair, urban planning

At the end of his famous 1923 manifesto Towards an Architecture Le Corbusier warned his readers, ‘architecture or revolution!’. This bit of scaremongering was, characteristically, a sales pitch – he meant that unless governments levelled the playing field by improving the housing of their citizens, they’d have an insurrection on their hands. In the eighteenth century British philosopher Bernard Mandeville challenged such views with his Fable of the Bees, which championed the consumerist, trickle-down doctrine of Private Vices, Publick Benefits, as the subtitle of his poem puts it. He imagines human society as an enormous hive held together by the satisfaction of greed, pride and luxury: ‘Thus every part was full of vice / Yet the whole mass a paradise.’ And what would happen if society were to turn over a new leaf? Now mind the glorious hive, and see How honesty and trade agree: The show is gone, it thins apace; And looks with quite another face, For ’twas not only that they went, By whom vast sums were yearly spent; But multitudes that lived on them, Were daily forced to do the same.

 

Four Arguments for the Elimination of Television by Jerry Mander

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Alistair Cooke, conceptual framework, dematerialisation, full employment, invention of agriculture, Menlo Park, music of the spheres, placebo effect, profit motive, Ralph Nader, Ronald Reagan, Stewart Brand, the medium is the message, trickle-down economics

We were not like Mexico and Nicaragua, dirty little countries, where there were a few rich people and every- one else was poor and all of them wished they had what we had. A few vears later at the Wharton School of Business at the University of Pennsylvania, I learned how and why this com- modity life and the economic growth it produces was sup- posed to be so good for absolutely everyone. I learned what they had been talking about in those boardrooms and at the Department of Commerce. It was called the "trickle-down theory. " The Trickle-Down Theory It goes more or less like this: Industrial expansion, rapid economic growth and the con- sumption economy benefit everyone. The theory-which is the basis of Keynesian American economics-has it that when people buy more and more commodities, they produce more 138 THE CENTRALIZATION OF CONTROL profits for industry, enabling it to expand. When industry ex- pands, more jobs result.

. , . . ) INTRODUCTION I THE BELLY OF THE BEAST 13 Adman Manque - Engulfed by the Six- ties - The Replacement of Experience The Unification of Experience II WAR TO CONTROL THE UNITY MACHINE 29 Advancing from the Sixties to the Fifties Style Supersedes Content - Television at Black Mesa - The Illusion of Neutral Tech- nology - Before the Arguments: A Comment on Style FOUR ARGUMENTS FOR THE ELIMINATION OF TELEVISION Argument One THE MEDIATION OF EXPERIENCE III THE WALLING OF AWARENESS 53 Me{/iated Environments - Sensory-Depriva- tion Environments - Rooms inside Rooms IV EXPROPRIA TION OF KNOWLEDGE 69 Direct Education - Motel Education 7 CONTENTS V ADRIFT IN MENTAL SPACE 86 Science Fiction and A rbitrary Reality Eight Ideal Conditions for the Flowering of Autocracy - Popular Philosophy and Arbi- trary Reality - Schizophrenia and the Influ- encing Machine Argument Two THE COLONIZATION OF EXPERIENCE VI ADVERTISING: THE STANDARD-GAUGE RAILWAY 115 The Creation of "Value" - Redeveloping the Human Being - Commodity People - Breaking the Skin Barrier - The Inherent Need to Create Need - Buying Ourselves Back The Delivery System's Delivery System VII THE CENTRALIZATION OF CONTROL 134 Economic Growth and Patriotic Consumption - The Trickle-Down Theory - Benefici- aries of the Advertising Fantasy - The Ef- fect on Individuals - Flaws in the Fantasy - The Depression Never Ended - Domi- nation of the Influencing Machine Argument Three EFFECTS OF TELEVISION ON THE HUMAN BEING VIII ANECDOTAL REPORTS: SICK, CRAZY, MESMERIZED 157 8 CONTENTS Invisible Phenomenon - Dimming Out the Human Artificial Touch and Hyperac- tivity - Television Is Sensory Deprivation IX THE INGESTION OF ARTIFICIAL LIGHT 170 Health and Light Outdoors to Indoors Seeking the Light - Serious Research X How TELEVISION DIMS THE MIND 192 Hypnosis - Television Bypasses Conscious- ness Television Is Sleep Teaching Television Is Not Relaxing XI How WE TURN INTO OUR IMAGES 216 Humans Are Image Factories - The Con- crete Power of Images Metaphysics to Physics - Image Emulation: Are We All Taped Replays?

The benefits would "trickle down" to everyone in the country, including those at the bottom of the pyramid. Jobs, money, prosperity, happiness, security, democracy, equality were an lumped together as inevitable results of this cycle. I believed in it. Wean believed in it. Most people believe in it sti11. Presidents get elected based on whether they can convince the public that they win stimulate the beautiful cycle. Jimmy Carter was elected for saying he knew how to do it. The trickle-down theory is the nice simple kind of economic model that can be sold to a mass population removed from any deeper understanding of how things real1y work. Trying to come to grips with economic nuance is for most of us no easier than trying to understand how much nuclear radiation is "safe." Who knows? The "experts" know. Like every other organizing model in our society, economic processes have been removed from personal participation, appropriated into a nether world of flow charts, financial analyses and circle graphs.

 

pages: 538 words: 138,544

The Story of Stuff: The Impact of Overconsumption on the Planet, Our Communities, and Our Health-And How We Can Make It Better by Annie Leonard

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air freight, banking crisis, big-box store, blood diamonds, Bretton Woods, California gold rush, carbon footprint, clean water, Community Supported Agriculture, dematerialisation, employer provided health coverage, energy security, European colonialism, Firefox, Food sovereignty, Ford paid five dollars a day, full employment, global supply chain, income inequality, Indoor air pollution, intermodal, Jeff Bezos, job satisfaction, McMansion, new economy, oil shale / tar sands, peak oil, Ralph Nader, renewable energy credits, Silicon Valley, special economic zone, supply-chain management, the built environment, trade liberalization, trickle-down economics, union organizing, Wall-E, Whole Earth Review, Zipcar

The economy functions as a system, too, which is why there can be a domino effect inside it, as when people lose their jobs and then reduce their spending, which means that factories can’t sell as much Stuff, which means that more people get laid off... which is exactly what happened in 2008 and 2009. Systems thinking as related to the economy also explains a theory like “trickle-down” economics, in which benefits like tax cuts are given to the wealthy so that they’ll invest more in businesses, which would hypothetically in turn create more jobs for the middle and lower classes. If you didn’t believe these parts (money, jobs, people across classes) operated within a system, there’d be no basis for the trickle-down theory, or for beliefs about the interplay between supply and demand. All these examples assume interrelated parts within a larger system. Another way to say that everything exists as part of a larger system (including systems themselves) is to say everything is connected.

 

Making Globalization Work by Joseph E. Stiglitz

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affirmative action, Andrei Shleifer, Asian financial crisis, banking crisis, barriers to entry, Berlin Wall, business process, capital controls, central bank independence, corporate governance, corporate social responsibility, currency manipulation / currency intervention, Doha Development Round, Exxon Valdez, Fall of the Berlin Wall, Firefox, full employment, Gini coefficient, global reserve currency, happiness index / gross national happiness, illegal immigration, income inequality, income per capita, incomplete markets, Indoor air pollution, informal economy, inventory management, invisible hand, Kenneth Rogoff, low skilled workers, manufacturing employment, market fundamentalism, Martin Wolf, microcredit, moral hazard, North Sea oil, offshore financial centre, oil rush, open borders, open economy, price stability, profit maximization, purchasing power parity, quantitative trading / quantitative finance, race to the bottom, reserve currency, rising living standards, risk tolerance, Silicon Valley, special drawing rights, statistical model, the market place, The Wealth of Nations by Adam Smith, Thomas L Friedman, trade liberalization, trickle-down economics, union organizing, Washington Consensus

Even the advanced industrial countries are beginning to question globalization, as it brings with it economic insecurity and inequality; as economic materialism trumps other values; as countries realize that their well-being, even their survival, depends on others that they may not trust, such as the unstable oil regimes in the Middle East and elsewhere. There may be growth, but most of the people may be worse off. Trickle-down economics, which holds that so long as the economy as a whole grows everyone benefits, has been repeatedly shown to be wrong. Some say globalization is inevitable, that one has to simply accept it with its flaws. But as most of the world has come to live in democracies, if globalization does not benefit most of the people they will eventually react. They can be fooled for a while—they can, for a while, believe stories that, while the pain is here today, the gain is around the corner—but after a quarter century or more, such stories lose their credibility.

There was a large set of dos and don'ts: do privatize everything, from factories to social security; don't have the government involved in promoting particular industries; do strengthen property rights; don't be corrupt. Minimizing government meant lowering taxes—but keeping budgets in balance. In practice, the Washington Consensus put little emphasis on equity. Some of its advocates believed in trickle-down economics, that somehow all would benefit—though there was little evidence to support such a conclusion. Others believed that equity was the province of politics, not economics: economists should focus on efficiency, and the Washington Consensus policies, they believed, would deliver on that. The alternative view, which I hold, sees government having a more active role, in both promoting development and protecting the poor.'

As businesses shut down and jobs are lost, real estate prices will fall, which will hurt most people in those areas, since their main asset is their home. Democratizing Globalization 273 Responding to the Challenges of Globalization There are three ways in which the advanced industrial countries can respond to these challenges. One is to ignore the problem and accept the growing inequality. Those who take this position (many of them proponents of the now-discredited theory of trickle-down economics, which holds that so long as there is growth, all will benefit) emphasize the underlying strengths of a market economy and its ability to respond to change: we may not know where the new jobs will be created, they say, but so long as we allow markets to work their magic, new jobs will be created. It is only when, as in Europe, a government interferes with market processes by protecting jobs, that there are problems with unemployment.

 

pages: 370 words: 102,823

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

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3D printing, balance sheet recession, banking crisis, Bernie Sanders, Bretton Woods, business climate, Carmen Reinhart, central bank independence, collaborative economy, complexity theory, conceptual framework, corporate governance, corporate social responsibility, credit crunch, Credit Default Swap, crony capitalism, David Ricardo: comparative advantage, decarbonisation, deindustrialization, dematerialisation, Detroit bankruptcy, double entry bookkeeping, Elon Musk, energy security, eurozone crisis, factory automation, facts on the ground, fiat currency, Financial Instability Hypothesis, financial intermediation, forward guidance, full employment, Gini coefficient, Growth in a Time of Debt, Hyman Minsky, income inequality, Internet of things, investor state dispute settlement, invisible hand, Isaac Newton, Joseph Schumpeter, Kenneth Rogoff, knowledge economy, labour market flexibility, low skilled workers, Martin Wolf, Mont Pelerin Society, neoliberal agenda, Network effects, new economy, non-tariff barriers, paradox of thrift, price stability, private sector deleveraging, quantitative easing, QWERTY keyboard, railway mania, rent-seeking, road to serfdom, savings glut, Second Machine Age, secular stagnation, shareholder value, sharing economy, Silicon Valley, Steve Jobs, the built environment, The Great Moderation, The Spirit Level, Thorstein Veblen, too big to fail, total factor productivity, transaction costs, trickle-down economics, universal basic income, very high income

In industrialised countries in the 1950s and 1960s every group was advancing, and those with lower incomes were rising most rapidly. In the ensuing economic and political debate, this ‘rising-tide hypothesis’ evolved into a much more specific idea, according to which regressive economic policies—policies that favour the richer classes—would end up benefiting everyone. Resources given to the rich would inevitably ‘trickle down’ to the rest. It is important to clarify that this version of old-fashioned ‘trickle-down economics’ did not follow from the postwar evidence. The ‘rising-tide hypothesis’ was equally consistent with a ‘trickle-up’ theory—give more money to those at the bottom and everyone will benefit; or with a ‘build-out from the middle’ theory—help those at the centre, and both those above and below will benefit. Today the trend to greater equality of incomes which characterised the postwar period has been reversed.

The US Treasury typically demands that when money is given to developing countries, conditions be imposed on them to ensure not only that the money is used well, but also that the country adopts economic policies that (according to the Treasury’s economic theories) will lead to growth. But no conditions were imposed on the banks—not even, for example, requirements that they lend more or stop abusive practices. The rescue worked in enriching those at the top; but the benefits did not trickle down to the rest of the economy. The Federal Reserve, too, tried trickle-down economics. One of the main channels by which quantitative easing was supposed to rekindle growth was by leading to higher stock market prices, which would generate higher wealth for the very rich, who would then spend some of that, which in turn would benefit the rest. As Yeva Nersisyan and Randall Wray argue in their chapter in this volume, both the Fed and the Administration could have tried policies that more directly benefited the rest of the economy: helping homeowners, lending to small and medium-sized enterprises and fixing the broken credit channel.

Again, policies amplify the resulting inequality: favourable tax treatment of capital gains enables especially high after-tax returns on these assets and increases the wealth especially of the wealthy, who disproportionately own such assets (and understandably so, since they are better able to withstand the associated risks). The role of institutions and politics The large influence of rent-seeking in the rise of top incomes undermines the marginal productivity theory of income distribution. The income and wealth of those at the top comes at least partly at the expense of others—just the opposite conclusion from that which emerges from trickle-down economics. When, for instance, a monopoly succeeds in raising the price of the goods which it sells, it lowers the real income of everyone else. This suggests that institutional and political factors play an important role in influencing the relative shares of capital and labour. As we noted earlier, in the past three decades wages have grown much less than productivity (Figure 1)—a fact which is hard to reconcile with marginal productivity theory39 but is consistent with increased exploitation.

 

pages: 345 words: 92,849

Equal Is Unfair: America's Misguided Fight Against Income Inequality by Don Watkins, Yaron Brook

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3D printing, Affordable Care Act / Obamacare, Apple II, barriers to entry, Berlin Wall, Bernie Madoff, blue-collar work, business process, Capital in the Twenty-First Century by Thomas Piketty, Cass Sunstein, collective bargaining, colonial exploitation, corporate governance, correlation does not imply causation, Credit Default Swap, crony capitalism, David Brooks, deskilling, Edward Glaeser, Elon Musk, en.wikipedia.org, financial deregulation, immigration reform, income inequality, indoor plumbing, inventory management, invisible hand, Isaac Newton, Jeff Bezos, Jony Ive, laissez-faire capitalism, Louis Pasteur, low skilled workers, means of production, minimum wage unemployment, Naomi Klein, new economy, obamacare, Peter Singer: altruism, Peter Thiel, profit motive, rent control, Ronald Reagan, Silicon Valley, Skype, statistical model, Steve Jobs, Steve Wozniak, The Spirit Level, too big to fail, trickle-down economics, Uber for X, urban renewal, War on Poverty, women in the workforce, working poor

But when people deal with one another as traders, on mutually beneficial terms or not at all, they enjoy a harmony of interests. And this is true regardless of their level of income or ability. In fact, it is those with less ability who benefit the most from this arrangement: the productive efforts of those at the top raise everyone else’s standard of living. This isn’t what is sometimes disparagingly called “trickle-down economics,” the theory that wealth will magically trickle down from rich people to poor people in a free market. What actually happens when trade is voluntary is that those with greater ability radically magnify the productivity of everyone, especially those with less ability. This is what Ayn Rand calls the Pyramid of Ability. The higher the most able producers rise, the more they contribute to the productivity of the less able.

., 59 Fanjul family, 150 finance, 36–8, 93–4, 153–7 Fleming, Alexander, 89 Folsom, Burton, 148–9 Ford, Henry, 89, 90, 106–7 Frank, Barney, 159–60, 163–4 Frank, Mark, 52 Frank, Robert, 9, 161–2, 179 Frank, Thomas, 32 free market capitalism, 61, 173, 190 and CEO pay, 163 and corporate welfare, 224 and education, 133 and finance, 156–7 free market myth, 31–8 and health care, 134 and trickle-down economics, 95 and unions, 128 and value creation, 156 freedom of contract, 103, 112 freedom of thought and speech, 103, 112 Fulton, Robert, 148–9 Galbraith, James, 47, 153, 167–9 Gates, Bill, 60, 66–7, 91, 131, 146–7, 151, 195 General Electric (GE), 151 Germany, 108–10, 161 Ghate, Onkar, 228 Gibbons v. Ogden, 148–9 Giga Information Group, 131 Gladwell, Malcolm, 66 Gore, Al, 129 Great Recession, 140, 156–7 Great Society programs, 30–1, 139 Grove, Andy, 28 Grund, Francis, 11 Gutenberg, Johannes, 89 Hansen, Morten T., 195 happiness, 3, 11–12, 51–6, 187, 200, 202, 209, 219–21 Harkin, Tom, 64 Harrington, Michael, 75 Hartmann, Thom, 7, 164, 211–12 Hatch, Orrin, 151–2 Hazlitt, Henry, 28–9 health care, 35, 134–8, 178, 180–1, 222, 225 Historical Index of Economic Liberty (HIEL), 28 Howe, Elias, 105 Hughes, Charles, 142 Hughes, Jonathan, 107 Immelt, Jeffrey, 150–1, 172 immigrants and immigration, 3, 11, 13, 47, 53, 67–8, 79–81, 125 and income data, 43–4 policy, 27–8, 66, 170 and progress, 28 and Silicon Valley, 130 income data, 41–7 individualism, 100, 168, 209, 218, 221–2 defined, 54–6 and dignity, 202–4 and freedom, 59 See also collectivism inequality narrative, 19–23, 172, 174–5 and America’s Gilded Age, 21, 23–6 and free market myth, 31–8 and the Great Compression, 21, 23 and post-war era, 27–31 and stagnation, 38–48 and taxes, 30 and unions, 28–30 and the welfare state, 30–1 infant mortality, 84–5 inheritance taxes, 7, 79, 168–70, 189, 212 innovation, 5, 59–60, 91, 99–101, 101–7, 118, 131–6, 224–6 intellectual effort, 94–5 Isaacson, Walter, 92 Isquith, Elias, 76 James, Geoffrey, 164 Japan, 27, 29, 132, 161 Jauhar, Sandeep, 134–5 Jefferson, Thomas, 104 Jenney, William Le Baron, 105 Jobs, Steve, 57–8, 89, 91–6, 146–7, 188–9, 226–8 Johnson, Lyndon B., 30–1, 139 justice.

., 45–6 Singer, Peter, 201, 205 Smith, Adam, 160 Smith, Hedrick, 32, 181–2 Smith International, 158 social justice, 185–90 Social Security, 31, 35, 41, 69–70, 127, 138, 170, 181–3, 225 Solyndra, 150 Soviet Union, 51–2, 108 Sowell, Thomas, 29–30, 119 stagflation, 32 stagnation, 32, 38–48 standard of living, 39–41, 43, 45, 64, 84–5 and collectivism, 182, 216 and egalitarianism, 201 and finance, 155 and inequality, 175 and innovation, 102 and life expectancy, 24 and productivity, 95 and progress, 24, 26–8 and regulation, 126 and retirement, 181 and unions, 128 and the welfare state, 141 Stiglitz, Joseph, 4, 6, 8, 20, 38, 81, 117 Summers, Lawrence, 166 Sunstein, Cass, 183–4 tall poppy syndrome, 213–18 Tanner, Michael, 142 taxes and taxation and health care, 135–6 and income data, 44–5 in the inequality narrative, 20, 23, 27, 30–3 inheritance taxes, 79, 165–9 and mobility, 120–1 policy, 6–7, 20, 120, 138, 142–4 and poverty, 126–7, 143–4 and Scandinavian countries, 112–13 and stagnation, 44–7 and wealth, 169–73, 212 Temkin, Larry, 194, 206 Tesla, 150 Tesla, Nikola, 89 Thiel, Peter, 60, 130 Thompson, Don, 124 “too big to fail,” 157 Tooley, James, 133 trickle-down economics, 95 Uber, 101–2, 107, 155 Ubl, Stephen, 136 unions. See labor unions Vanderbilt, Cornelius, 148–9 Virgin Group, 198–9 voluntary trade, 12, 59–66, 186 wages, 23–4, 44, 46–7, 99–100, 106, 113 maximum wage, 52, 178, 212 minimum wage, 5, 7, 20, 24, 52, 62, 68–9, 114, 124–9, 139–42, 178, 180, 211, 213, 222, 224 and post-war era, 27–30 “slave” wages, 62–5 and stagnation, 38, 222 Wagner Act (National Labor Relations Act of 1935), 29 Warren, Elizabeth, 182, 188, 196, 210 Washington, George, 96–7 Watkins, Don, 66, 101, 219, 225 wealth and collectivism, 167–8 defined, 57 fixed pie assumption, 8–9, 87 group pie assumption, 9 redistribution of, 51, 108, 114, 144 and “the rich” as a label, 173–5 and taxation, 169–73, 212 Welfare Reform Act (1996), 35 welfare state, 68–9, 170, 174, 181, 189, 224–5 and the middle class, 30–1 and mobility, 120–1 vs. opportunity, 138–44 and Scandinavian countries, 111–13 See also entitlement programs Westinghouse, George, 105 Whitworth, Joseph, 107 Wilkinson, Richard, 7, 79, 118, 121, 123, 211–12 Winship, Scott, 46–7, 237n53 Wooldridge, Adrian, 32 Wozniak, Steve, 87–9, 91, 191, 193 Wright, Carroll D., 26 Yergin, Daniel, 11 Yglesias, Matthew, 212 “you didn’t build that,” 190–9, 213 Zingales, Luigi, 155 About the Authors © Amanda Patrice DON WATKINS, one of today’s most vocal opponents of the welfare state, is coauthor, with Yaron Brook, of the national bestseller, Free Market Revolution: How Ayn Rand’s Ideas Can End Big Government.

 

pages: 256 words: 15,765

The New Elite: Inside the Minds of the Truly Wealthy by Dr. Jim Taylor

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British Empire, call centre, dark matter, Donald Trump, estate planning, full employment, glass ceiling, income inequality, Jeff Bezos, Louis Pasteur, Maui Hawaii, McMansion, means of production, passive income, performance metric, Plutocrats, plutocrats, Plutonomy: Buying Luxury, Explaining Global Imbalances, Ronald Reagan, stealth mode startup, Steve Jobs, Thorstein Veblen, trickle-down economics, women in the workforce

Kennedy popularized in responding to criticism that his tax cuts would mainly benefit the wealthy), and the gains of the wealthy elite are symptoms of overall economic growth that results in broad-based gains among all elements of the population. Certainly the economic expansion of the past several decades has been fueled in part by employment growth and technological innovation driven largely by entrepreneurial companies. Somewhere between these two scenarios is the trickle-down effect, a mildly derisive phrase used to describe the supply-side economic theories generally associated with Ronald Reagan. These theories postulate that the financial gains of the wealthy get spent largely on investments and services that, in turn, create jobs and support small businesses. In New York City, for example, it has been estimated that $200,000 spent on services—everything from drivers and decorators to personal trainers and psychologists—creates roughly five jobs, and that the top 1 percent of earners create over 150,000 service jobs by virtue of their spending.2 Assessing which of these scenarios best characterizes the current U.S. plutonomy is a complex economic task.

Even the esteemed biographer of the American spirit, Alexis de Tocqueville, who marveled at so many aspects of the American passion for equality and democracy, also marveled at American materialism and the resulting tolerance for inequality: ‘‘I know of no other country where love of money has such a grip on men’s hearts or where stronger scorn is expressed for the theory of permanent equality of property.’’5 Inequality in the United States has also tended to result from innovations that did have trickle-down effects, even if the financial gain from those innovations was concentrated at the top. The average American in 1920 didn’t see his income rise with that of John Rockefeller or Cornelius Vanderbilt, but he certainly saw tangible changes in his own life and that of his family as a result of railroads, electricity, telephones, radio, automobiles, and the like. In the twenty-first century, the average American has been left behind in the wealth explosion experienced by the entrepreneurial elite, but certainly has experienced personal benefits from cell phones and the Internet.

As we’ve seen, the attitudes of the wealthy are more likely those of mainstream Americans than one might have anticipated. Notes 1. Ajay Kapur, Niall Macleod, and Narendra Singh, ‘‘Plutonomy: Buying Luxury, Explaining Global Imbalances,’’ research report, Citigroup Global Markets, http://www.billcara.com/archives/ Citi%20Oct%2016,%202005%20Plutonomy.pdf (accessed April 14, 2008). 2. Daniel Gross, ‘‘Don’t Hate Them Because They’re Rich: The Trickle-Down Effect of Ridiculous, Ostentatious Wealth,’’ New York magazine, April 11, 2005, http://nymag.com/nymetro/news/ culture/features/11721 (accessed April 14, 2008). 3. For example, see the Index of Social Health, published by the Institute for Innovation in Social Policy, http://iisp.vassar.edu/ index.html (accessed April 14, 2008). See also David Myers, The Plutonomy 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 221 The American Paradox: Spiritual Hunger in an Age of Plenty (New Haven, Conn.: Yale University Press, 2001).

 

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Sleeping Giant: How the New Working Class Will Transform America by Tamara Draut

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affirmative action, Affordable Care Act / Obamacare, battle of ideas, big-box store, blue-collar work, collective bargaining, David Brooks, declining real wages, deindustrialization, desegregation, Detroit bankruptcy, Donald Trump, Edward Glaeser, ending welfare as we know it, Ferguson, Missouri, financial deregulation, full employment, immigration reform, income inequality, invisible hand, job satisfaction, knowledge economy, knowledge worker, low skilled workers, minimum wage unemployment, mortgage tax deduction, new economy, obamacare, occupational segregation, payday loans, pink-collar, Plutocrats, plutocrats, profit motive, race to the bottom, Ralph Nader, rent-seeking, rising living standards, Ronald Reagan, The Bell Curve by Richard Herrnstein and Charles Murray, The Wealth of Nations by Adam Smith, trickle-down economics, union organizing, upwardly mobile, War on Poverty, white flight, women in the workforce, young professional

In 1970 more than 70 percent of black workers held blue-collar jobs; by 1987 only 27 percent were employed in industrial jobs.45 Unemployment among black men soared, while black women did somewhat better in securing jobs in the exploding new service sector. As companies shipped entire industries overseas and the central cities lost white middle-class residents to the job-exploding suburbs, urban black people found little support or sympathy from our political elites. Laissez-faire, trickle-down economics was gaining prominence and power just as globalization tore through American manufacturing. After the widespread shedding of factories in the urban core, Ronald Reagan made it to the White House, in no small part thanks to his astute use of racial anxiety to win over white working-class voters. Help most assuredly would not be on the way. Patrisse Cullors, one of the three founders of Black Lives Matter, directly experienced the simultaneous havoc created by closing factories and the “war on drugs.”

The policies that stripped away our factories are the same policies that are now yanking professional jobs out of the country. The political hostility toward people who are down on their luck and need help buying food is delivered by the same politicians who drastically cut higher-education funding. The three biggest threats to the middle class are the same culprits behind the degradation of the working class: Wall Street, “trickle-down” economics, and antigovernment activism. These forces hit the working class first and hardest, but they inflict plenty of damage on the middle class too. So if we want to save the middle class, we’ve got to start from the bottom up. That means that the new working class, which will be primarily Latino and black in less than a generation if current trends hold, must be at the center of our public debate.

 

Times Square Red, Times Square Blue by Samuel R. Delany

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Jane Jacobs, Network effects, Silicon Valley, The Death and Life of Great American Cities, trickle-down economics, upwardly mobile, urban renewal

And at the end of the ten years? The four towers will be built. §8.0. In 1992 we emerged from twelve years of a national Republican administration that favored big business—with the result that we now have some very strong big businesses indeed. The argument the Reagan/Bush leaders used to convince the public that this was a Good Thing was the promise of tax cuts and the “trickle-down” economic theory. The “trickle-down” economic theory, you may recall, was the notion that somehow big business would be helpful and supportive to small businesses. 171 . . . T H R E E , T W O , O N E , C O N TA C T : T I M E S S Q U A R E R E D permanently closed Biltmore Theater on Forty-seventh Street, beside the metal gate the bottom of which has been eaten away with uric acid, and chat with one of the homeless men who regularly sleep on a piece of cardboard under the dark marquee during the summer.

 

Rethinking Money: How New Currencies Turn Scarcity Into Prosperity by Bernard Lietaer, Jacqui Dunne

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3D printing, agricultural Revolution, Albert Einstein, Asian financial crisis, banking crisis, Berlin Wall, BRICs, business climate, business process, butterfly effect, carbon footprint, Carmen Reinhart, clockwork universe, collapse of Lehman Brothers, complexity theory, conceptual framework, credit crunch, discounted cash flows, en.wikipedia.org, Fall of the Berlin Wall, fear of failure, fiat currency, financial innovation, Fractional reserve banking, full employment, German hyperinflation, happiness index / gross national happiness, job satisfaction, Marshall McLuhan, microcredit, mobile money, money: store of value / unit of account / medium of exchange, more computing power than Apollo, new economy, Occupy movement, price stability, reserve currency, Silicon Valley, the payments system, too big to fail, transaction costs, trickle-down economics, urban decay, War on Poverty, working poor

They reflect the limited Newtonian view of a clockwork universe, static and immutable, rather than the more dynamic, complex, highly interdependent, and unpredictable universe of Bohr and the modern school of nonlinear dynamics. Policy making, whether in business or in politics, based on forecasts distorted by the conventional money system is at best shortsighted, if not outright erroneous. Classic economic solutions tend to fall into one of two categories: to depend on the vicissitudes of the free market and rely on trickle-down economics or to implement strategies that attempt to redistribute wealth. As long as conventional money retains its monopoly, there will always be insufficiency and untended needs. Indeed, this monopoly fuels both rampant fear of scarcity and its partner, greed. The traditional hyperrational explanations offered up for this ongoing universal suffering, disenfranchisement, and injustice fail to address the real issues.

See TimeBank Time Dollar Youth Court, 83 Time horizon, 44 Time-slot exchange, 195–197 Titus, 197–198 Token Exchange System, 193 Too big to fail, 96 Torekes, 74–75, 151, 151–153 Total system throughput (TST), 33 Totnes, 75 Trade reference currency. See Terra Trade Reference Currency Transmutation. See Alchemy Transportation, 126–128, 201, 218–219 Trash, 141–142, 143, 145, 165–166 Treaty of Maastricht, 231n14 Triangle, 171 Trickle-down economics, 217 Trueque club, 182–184, 183 Trust, 19–20, 46; creating community, 171–172; in Friendly Favors, 132; WIR and, 100 Tutoring, 82 Twister, 156–157 Two-body problem, 30– 31 Uang kepeng, 189, 237n4, 237n5 Underclass, 216 Unemployment, 15–18; college and, 226–227n13; JAK bank and, 113; LETS and, 76; Nazi Party fueled by, 180; Patch Adams Free Clinic and, 164; in Rabot, 151; in Weimar Republic, 236n10; Wörgl and, 175–178 UN Happiness Resolution, 131 Union, 16, 119 United Nations Environmental Program (UNEP), 144 260 INDEX Unit of account, 58; money defined as, 28; professionals describing, 1–2; time as, 80– 81.

 

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The Health Gap: The Challenge of an Unequal World by Michael Marmot

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active transport: walking or cycling, Affordable Care Act / Obamacare, Atul Gawande, Bonfire of the Vanities, Broken windows theory, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, Celtic Tiger, centre right, clean water, congestion charging, correlation does not imply causation, Doha Development Round, epigenetics, financial independence, future of work, Gini coefficient, Growth in a Time of Debt, illegal immigration, income inequality, Indoor air pollution, Kenneth Rogoff, Kibera, labour market flexibility, lump of labour, Mahatma Gandhi, meta analysis, meta-analysis, microcredit, New Urbanism, obamacare, paradox of thrift, race to the bottom, Rana Plaza, RAND corporation, road to serfdom, Simon Kuznets, Socratic dialogue, structural adjustment programs, the built environment, The Spirit Level, trickle-down economics, urban planning, Washington Consensus, Winter of Discontent, working poor

There is a particular dilemma with which Rawlsians, and the rest of us, have to deal. Going back at least to Adam Smith, economists have argued that allowing some people to have a larger slice of the economic cake may lead to the whole cake enlarging. In other words, set the wealth producers free and, although they will benefit the most, people at the bottom will be somewhat better off – trickle-down economics. I hear the distant rumble of self-interest promoting this view. What does Rawls say, given that his difference principle states that greater inequalities are fairer provided that the worst off are better off than they could be under any alternative arrangement? Does that mean that greater health inequalities might be fairer provided those at the bottom have improved more than they could have under alternative arrangements?

MOVING FORWARD Based on its health record, there are grounds to be concerned about US society. Joseph Stiglitz, who I quoted on inequality, is concerned that increasing economic inequality in the US poses all sorts of burdens. No other country should be complacent that it has it right. The problem is, says Stiglitz, that we have been pursuing economic policy that benefits the 1 per cent. Trickle-down economics is defunct and does not work. Time is running out, but there are solutions. He lays out an economic reform agenda that curbs excesses at the top and invests in the rest of the population.9 While I have not addressed economic policy directly, many of his suggestions for social protection and investing in the population are entirely consistent with my recommendations in earlier chapters in this book.

., here Lewis, Michael, here Lexington, Kentucky, here libertarians, here, here life expectancy, here, here, here, here among Australian aboriginals, here disability-free, here, here and education, here, here, here, here in former communist states, here and mental health, here and national income, here US compared with Cuba, here Lithuania, here, here, here Liverpool, here, here, here ‘living wage’, here loans, low-interest, here lobbying, here Los Angeles, here ‘lump of labour’ hypothesis, here Lundberg, Ole, here lung cancer, here, here lung disease, here, here, here, here luxury travel, here Macao, here, here McDonald’s, here McMunn, Anne, here Macoumbi, Pascoual, here Madrid, indignados protests, here, here Maimonides, here malaria, here, here, here, here, here Malawi, here male adult mortality, here, here Mali, here, here Malmö, here, here Malta, here Manchester, here, here, here Maoris, here, here, here, here Marmot Review, see Fair Society, Healthy Lives marriage, here Marx, Karl, here maternal mortality, here, here, here maternity leave, paid, here Matsumoto, Scott, here Meaney, Michael, here Medicaid, here Mediterranean diet, here Mengele, Joseph, here mental health, here, here, here, here, here, here, here and access to green space, here and adverse childhood experience, here and austerity, here and fear of crime, here and job insecurity, here and unemployment, here meritocracy, here Mexico, here, here, here, here, here education and cash transfers, here, here Millennium Birth Cohort Study, here, here Minimum Income for Healthy Living, here, here, here Mitchell, Richard, here Modern Times, here Morris, Jerry, here, here Moser, Kath, here Mozambique, infant mortality, here Mullainathan, Sendhil, here Murphy, Kevin, here, here Muscatelli, Anton, here Mustard, Fraser, here Mwana Mwende project, here Nathanson, Vivienne, here Native Americans, here Navarro, Vicente, here NEETs, here, here neoliberalism, here, here, here, here, here Nepal, here, here Neruda, Pablo, here Netherlands, here, here New Guinea, here, here NEWS group, here, here Nietzsche, Friedrich, here, here Niger, here nitrogen dioxide, here, here non-human primates, here Nordic countries and commission report, here and social protection, here, here, here, here, here see also individual countries Norway, here, here, here, here, here, here life expectancy and education, here, here Nottingham, here Nozick, Robert, here obesity, here, here, here, here, here, here, here, here in children, here, here and diabetes, here and disincentives, here food corporations and, here genetic and environmental factors in, here and migrant studies, here and rational choice theory, here social gradient in, here, here, here, here in women, here, here Office of Budget Responsibility, here Olympic Games, here opera, here Organisation for Economic Co-operation and Development (OECD), here, here, here, here, here, here, here organisational justice, here Orwell, George, here Osler, Sir William, here Panorama, here Papua New Guinea, here ‘paradox of thrift’, here Paraguay, here, here, here parenting, here, here, here, here and work–life balance, here pay, low, here pensions, here, here, here, here Perkins, Charlie, here Peru, here, here, here physical activity and cognitive function, here green space and, here Pickett, Kate, here Pierson, Paul, here, here Piketty, Thomas, here, here, here, here Pinker, Steven, here Pinochet, General Augusto, here PISA scores, here, here, here, here, here Poland, here, here, here, here Popham, Frank, here Porgy and Bess, here poverty, here, here, here, here, here, here, here and aboriginal populations, here, here absolute and relative, here, here child poverty, here, here, here, here, here and choice, here and early childhood development, here, here effect on cognitive function, here and urban unrest, here and work, here Power, Chris, here pregnancy, here preventive health care, here ‘proportionate universalism’, here puberty, and smoking here public transport, here, here, here, here, here, here, here, here Ramazzini, Bernardino, here RAND Corporation, here, here, here rational choice theory, here, here, here rats, and brain development, here Rawls, John, here, here Reid, Donald, here Reinhart, Carmen, here, here reproduction, control over, here retirement, here reverse causation, here Reykjavik Zoo, here Rio de Janeiro, here, here Rogoff, Kenneth, here, here Rolling Stones, here Romania, here Romney, Mitt, here Rose, Geoffrey, here Roth, Philip, here Royal College of Physicians, here Royal Swedish Academy of Science, here Russia, here, here, here and alcohol use, here life expectancy, here, here, here, here Sachs, Jeffrey, here, here St Andrews, here San Diego, here Sandel, Michael, here, here Sapolsky, Robert, here Scottish Health Survey, here Seattle, here Self Employed Women’s Association (SEWA), here, here, here, here Sen, Amartya, here, here, here, here, here, here, here, here, here, here, here and Jean Drèze, here, here, here, here serotonin, here sexuality, here, here see also reproduction, control over sexually transmitted infections, here, here Shafir, Eldar, here Shakespeare, William, here, here, here, here Shanghai, here Shaw, George Bernard, here, here Shepherd, Jonathan, here shootings, here Siegrist, Johannes, here Sierra Leone, here, here, here Singapore, here, here Slovakia, here Slovenia, here, here smallpox vaccinations, here Smith, Adam, here Smith, Jim, here smoking, here, here, here, here, here, here, here, here declining rates of, here, here and education, here and public policy, here social gradient in, here, here and tobacco companies, here and unemployment, here Snowdon, Christopher, here social cohesion, here, here, here, here, here, here, here social mobility, here, here social protection, here ‘social rights’, here Social Science and Medicine, here Soundarya Cleaning Cooperative, here South Korea, here, here, here, here Spain, here, here, here Spectator, here sports sponsorship, here Sri Lanka, here Stafford, Mai, here Steptoe, Andrew, here Stiglitz, Joseph, here, here, here, here, here stroke, here, here, here structural adjustments, here, here Stuckler, David, here suicide, here, here, here, here, here and aboriginal populations, here, here and Indian cotton farmers, here and unemployment, here, here suicide, attempted, here Sulabh International, here Sun, here Sure Start programme, here Surinam, here Sutton, Willie, here Swansea, here Sweden, here, here, here, here, here, here, here life expectancy and education, here, here male adult mortality, here, here Swedish Commission on Equity in Health, here Syme, Leonard, here, here, here Taiwan, here, here Tanzania, here taxation, here Thailand, here Thatcher, Margaret, here Theorell, Tores, here tobacco companies, here Topel Robert, here Tottenham riots, here Tower Hamlets, here, here Townsend, Peter, here trade unions, here, here, here, here traffic calming measures, here Tressell, Robert, here ‘Triangle that Moves the Mountain’, here, here trickle-down economics, here, here Truman, Harry S., here tuberculosis, here, here, here, here Tunisia, here Turandot, here, here Turkey, here, here Uganda, here, here unemployment, here, here, here, here, here, here, here and mental health, here and suicide, here, here youth unemployment, here, here, here, here UNICEF, here, here United Kingdom alcohol consumption, here capital:income ratio, here and child well-being, here cost of childcare, here and economic recovery, here, here education system, here, here disability-free life expectancy, here founding of welfare state, here health-care system, here income inequalities, here, here literacy levels, here male adult mortality, here PISA score, here politics and economics, here and poverty in work, here, here poverty levels, here, here prison population, here social attitudes, here and social interventions, here social mobility, here ‘strivers and scroungers’ rhetoric, here, here and taxation, here unemployment, here use of tables for meals, here United Nations Development Programme (UNDP), here, here, here, here United States of America air pollution, here, here alcohol consumption, here capital:income ratio, here child poverty, here and child well-being, here cotton subsidies, here and economic recovery, here education system, here, here, here female life expectancy, here and gang violence, here health-care system, here, here income inequalities, here, here, here, here international comparisons, here, here, here lack of paid maternity leave, here life expectancy and education, here male adult mortality, here, here, here maternal mortality, here, here obesity levels, here, here, here, here PISA score, here politics and economics, here and poverty in work, here poverty levels, here prison population, here race and disadvantage, here, here, here, here, here social disadvantage and health, here social mobility, here suicide rate, here and taxation, here US Centers for Disease Control and Prevention, here US Department of Justice, here US Federal Reserve Bank, here US National Academy of Science (NAS), here, here, here, here University of Sydney, here urban planning, here Uruguay, here, here, here, here utilitarianism, here, here, here Vågerö, Denny, here valuation of life, here Victoria Longitudinal Study, here Vietnam, here, here violence, here domestic (intimate partner), here, here, here Virchow, Rudolf, here vulture funds, here, here Wales, youth unemployment in, here walking speed, here Washington Consensus, here, here, here welfare spending, here West Arnhem College, here Westminster, life expectancy in, here Whitehall Studies, here, here, here, here, here, here, here wife-beating, here Wilde, Oscar, here, here Wilkinson, Richard, here willingness-to-pay methodology, here, here Wolfe, Tom, here, here women and alcohol use, here and cash-transfer schemes, here A Note on the Author Born in England and educated in Australia, Sir Michael Marmot is Professor of Epidemiology and Public Health at UCL.

 

pages: 124 words: 39,011

Beyond Outrage: Expanded Edition: What Has Gone Wrong With Our Economy and Our Democracy, and How to Fix It by Robert B. Reich

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2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, affirmative action, banking crisis, carried interest, collateralized debt obligation, collective bargaining, Credit Default Swap, credit default swaps / collateralized debt obligations, desegregation, full employment, Home mortgage interest deduction, job automation, Mahatma Gandhi, minimum wage unemployment, new economy, Occupy movement, offshore financial centre, Plutocrats, plutocrats, Ponzi scheme, race to the bottom, Ronald Reagan, single-payer health, special drawing rights, The Wealth of Nations by Adam Smith, Tim Cook: Apple, too big to fail, trickle-down economics, women in the workforce, working poor

The rich are “job creators,” so tax cuts for the rich trickle down to everyone else while higher taxes on the rich hurt the economy and slow job growth. Untrue. Look at recent history. George W. Bush cut taxes on the rich, and what happened? A fraction of the number of jobs were created under Bush than had been created under Bill Clinton, and the median wage dropped, adjusted for inflation. Trickle-down economics is a cruel joke. As I’ve said, from the end of World War II until 1981, the richest Americans faced a top marginal tax rate of 70 percent or above. Under Dwight Eisenhower it was 91 percent. Even after all deductions and credits, the top taxes on the very rich were more than 52 percent—far higher than they’ve been since. Yet the economy grew faster during those years than it has since.

 

pages: 394 words: 85,734

The Global Minotaur by Yanis Varoufakis, Paul Mason

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banking crisis, Berlin Wall, Big bang: deregulation of the City of London, Bretton Woods, business climate, capital controls, Carmen Reinhart, central bank independence, collapse of Lehman Brothers, collateralized debt obligation, colonial rule, corporate governance, correlation coefficient, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, debt deflation, declining real wages, deindustrialization, eurozone crisis, financial innovation, first-past-the-post, full employment, Hyman Minsky, industrial robot, Joseph Schumpeter, Kenneth Rogoff, labour market flexibility, liquidity trap, London Interbank Offered Rate, Long Term Capital Management, market fundamentalism, Mexican peso crisis / tequila crisis, mortgage debt, new economy, Northern Rock, paper trading, planetary scale, post-oil, price stability, quantitative easing, reserve currency, rising living standards, Ronald Reagan, special economic zone, Steve Jobs, structural adjustment programs, systematic trading, too big to fail, trickle-down economics, urban renewal, War on Poverty, Yom Kippur War

Meanwhile, the fresh military spending proved a boon for the large industrial network connected to the arms industry and the state’s defence procurements. When dissident voices pointed out that tax cuts favoured the rich (especially when combined with cuts in social provisions for the poor), the standard reply came in the form of the so-called trickle-down effect: as the rich enrich themselves further (the theory went), their spending and investment will trickle down to the less privileged more effectively than it would through transfers financed by taxing the rich. Box 5.4 The trickle-up effect The trickle-down effect was meant to legitimize reductions in tax rates for the rich, by suggesting that their extra cash would eventually trickle down to the poor. All empirical evidence conspires against this hypothesis. Put simply, it never happened. The increasing riches of the conspicuously rich never reached the suffering lower-middle class.

Nevertheless, the two prerequisites had been met even before Ronald Reagan settled in properly at the White House. A new phase thus began. The United States could now run an increasing trade deficit with impunity, while the new Reagan administration could also finance its hugely expanded defence budget and its gigantic tax cuts for the richest Americans. The 1980s ideology of supply-side economics, the fabled trickle-down effect, the reckless tax cuts, the dominance of greed as a form of virtue, etc. – all these were just manifestations of America’s new ‘exorbitant privilege’: the opportunity to expand its twin deficits almost without limit, courtesy of the capital inflows from the rest of the world. American hegemony had taken a new turn. The reign of the Global Minotaur had dawned. The Global Minotaur The United States had neither wanted nor resigned itself readily to the collapse of the Global Plan.

 

pages: 233 words: 75,712

In Defense of Global Capitalism by Johan Norberg

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Asian financial crisis, capital controls, clean water, correlation does not imply causation, 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, 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

Not always and not everyGrowth benefits the poor 12 11 10 9 8 7 6 5 4 3 Average income of the poorest one-fifth (percentage) Per capita income (percentage) 3 4 5 6 7 8 9 10 11 12 (Correlation between prosperity and incomes of the poor in 80 studied countries). Source: David Dollar and Aart Kraay, Growth Is Good for the Poor (Washington: World Bank, April 2001). 79 where—there are exceptions and variations—but on average. This finding tallies with a long line of other surveys, whereas studies suggesting the contrary are very hard to find.9 Thus, growth is the best cure for poverty. Some economists have spoken of a ‘‘trickle-down’’ effect, meaning that some get rich first, after which parts of this wealth trickle down to the poor as the rich spend and invest. This description may evoke the image of the poor man getting the crumbs that fall from the rich man’s table, but this is a completely mistaken picture of the Growth benefits the poor –20% –10% 0% 10% 20% 20% 10% 15% 5% 0% –20% –10% –15% –5% Growth of per capita income Average income of the poorest one-fifth (Correlation between economic growth and incomes of the poor in 80 studied countries).

See Organization for Economic Cooperation and Development countries On Asian Time: India, China, Japan 1966–1999, 21, 29 One World, Ready or Not: The Manic Logic of Global Capitalism, 136, 138–39 Openness East Asia, 103 growth and, 129–32 variables testing for, 131–32 Oppression Africa, 105–6, 107 China, 49 living in, 291 multinational corporations’ presence and, 222 overlooking, 202 of tradition, 284–85 women, 43–46 Organization, 68 Organization for Economic Cooperation and Development (OECD) countries average life expectancy, 28–29 economic free zones and, 220 percent of world GDP, 155 Ownership private land ownership, 94–95, 235–36 protection of, 66 rights of, 91, 100 See also Intellectual property; Patent rights; Property rights Pakistan growth and income differences, 86 lack of growth and poverty, 132 323 Passport requirements, 287, 288 Patent rights, respect for, 196–97 Penetrating new markets, price dumping and, 126 Per capita incomes, 76 Perot, Ross, 204 Personal responsibility, 67 Peru, registering property and businesses, 92, 93 Pharmaceutical companies, 186–89 the Philippines, registering property, 92 Pinochet, Augusto, 168, 287 Pluralism, developments and, 280–82 Political dictatorships, 185, 201, 220, 236, 269, 270, 272, 287 Political institutions, globalized humanity acquiring power at expense of, 10 Political leaders development assistance and, 185 tariff walls and, 174–75 Political power and controls, 9–10, 165–66 Political systems, democratization, 268–76 Politics, 17 freedoms and voluntary relations in, 17 impact of African politics on growth and development, 104–11 impact of East Asian politics on growth and development, 99–103 playing at business, 16 Pollution air, 228, 229, 232 growth and, 229 Poor people, 55–56 in developing countries, 13–14 freedom of choice and, 13–14 property rights, 90–98 Pope John Paul II, 20 Population growth, India, 51, 52 Potable drinking water, 34–35 Poverty, 60 absolute, 21, 26, 48, 99–100, 108 East Asian countries, 99 economic freedom and reduction in, 95f growth benefiting the poor, 79–81 India, 51, 52 in last few centuries, 73, 75–76 long-term growth and, 81 reduction, 25–30, 132 remedy for, 83 ‘‘trickle-down’’ effect and, 80 United States, 83 Poverty lines, 54–55 Power freedom and power over our own lives, 11, 290–91 globalization and local power relations with the poor, 90 globalized humanity acquiring power at expense of political institutions, 10 multinational corporations, 210–11 political, 9–10, 165–66 powerlessness/loss of power, 11, 12 purchasing power, 55–56 Predetermination, 287–88 ‘‘Price dumping,’’ 125–26 324 Prices, 65–66 Production environmental problems and, 236–37 free trade and, 136–44 led and driven by trade, 129 raw materials and, 122, 169–72 specialization, 115–19, 120 world output, 129 Productivity multinational corporations, 213–14 wages and, 194 Profits, 65–66 Property, 67 as ‘‘dead capital,’’ 93 private land ownership, 235–36 Property rights, 90–98 See also Rights of ownership Prosperity companies/investors and, 172 economic freedom and, 73 environmental protection/ improvement and, 224–26, 230, 231f former colonies, 99 free trade and, 17, 118f gender equity and, 44 growth and spread of, 14, 25, 81, 134–35 opportunities for women and, 44 Protectionism Africa, 105–6, 107 backlash, 124 developing countries’ loss sustained by, 156–62 reappearance, 288 trade subject to conditions and, 192–97 Protectionist countries annual growth rates, 129, 130 financial crises and hyperinflation, 131, 167 growth in open poor economies versus open affluent ones, 133–35 Latin America, 163–68 policy results, 129, 130–31 Public spending, 275 undemocratic societies, 97–98 Purchasing power, 55–56 Qatar, 269 Quader, Noorul, 223 Quantity of trade, 121–22 Rahman, Helen, 46 Raw materials, 233–35 exports, 163–64, 167 processing and manufacturing, 169–72 production, 122 R&D.

See Developing countries Tobin, James, 253, 266 Tobin tax, 253–58, 266 Trade among developing countries, 175 balance of trade, 121–22 ‘‘catch-22’’ of trade conditions, 194–96, 197 environmental problems and, 236–37 increases and rise in per capita income, 132 quantity of, 121–22 subject to conditions and protectionism, 192–97 See also Free trade; specific countries Trade agreements, 289 impartial code of rules for honoring, 124 provisions stipulating standards, 193–96 regional, 125 See also World Trade Organization Trade barriers domestic subsidies as de facto barriers, 126–27 Latin America, 163–68 patent and IP infringement as, 196–97 See also Tariffs and quotas; Subsidies; Antidumping measures 328 Trade controls, Russia, 95 Trade policy East Asia, 103 separating effects of one policy from another, 131 Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement, 196, 197 Trade sanctions, dictatorships and temporary sanctions, 201 Trademarks, multinationals and positive aura for, 222 Tragedies and risks surrounding immigration policy, 147 Transportation, environmental problems and, 236–37 ‘‘Trickle-down’’ effect of growth, 80 TRIPS. See Trade-Related Aspects of Intellectual Property Rights agreement Turkmenistan, human rights violations, 40 Uganda IMF compliance, 181 liberalization, growth, and development, 110 poverty reduction, 132 UN Food and Agriculture Organization, 31 UNCTAD. See United Nations Trade and Development Program Undemocratic societies, public spending, 97–98 Underdevelopment, 60 UNDP.

 

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The New Jim Crow: Mass Incarceration in the Age of Colorblindness by Michelle Alexander

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affirmative action, cognitive bias, Columbine, deindustrialization, desegregation, ending welfare as we know it, friendly fire, illegal immigration, land reform, large denomination, low skilled workers, means of production, new economy, New Urbanism, pink-collar, profit motive, Ronald Reagan, Rosa Parks, trickle-down economics, upwardly mobile, War on Poverty, women in the workforce

It is not widely debated in the mainstream media or, for that matter, in civil rights organizations. The claim is that racial justice advocates should reconsider the traditional approach to affirmative action because (a) it has helped to render a new caste system largely invisible; (b) it has helped to perpetuate the myth that anyone can make it if they try; (c) it has encouraged the embrace of a “trickle down theory of racial justice”; (d) it has greatly facilitated the divide-and-conquer tactics that gave rise to mass incarceration; and (e) it has inspired such polarization and media attention that the general public now (wrongly) assumes that affirmative action is the main battlefront in U.S. race relations. It may not be easy for the civil rights community to have a candid conversation about any of this.

People like Barack Obama who are truly exceptional by any standards, along with others who have been granted exceptional opportunities, legitimate a system that remains fraught with racial bias—especially when they fail to challenge, or even acknowledge, the prevailing racial order. In the current era, white Americans are often eager to embrace token or exceptional African Americans, particularly when they go out of their way not to talk about race or racial inequality. Affirmative action may be counterproductive in yet another sense: it lends credence to a trickle-down theory of racial justice. The notion that giving a relatively small number of people of color access to key positions or institutions will inevitably redound to the benefit of the larger group is belied by the evidence. It also seems to disregard Martin Luther King Jr.’s stern warnings that racial justice requires the complete transformation of social institutions and a dramatic restructuring of our economy, not superficial changes that can purchased on the cheap.

Acevedo California’s Proposition California’s Proposition Campbell, Richard Capital Times (Madison, Wisconsin) Carroll, David Carrollton bus disaster (1988) Cato Institute Central Intelligence Agency (CIA) Chain Reaction (Edsall and Edsall) Chemerinsky, Erwin Cheney, Dick Chicago, Illinois: ex-offenders; police presence in ghetto communities; re-entry programs child-support debts chokeholds, lethal Chunn, Gwendolyn Civil Asset Forfeiture Reform Act (2000) Civil Rights Act (1866) Civil Rights Act (1964); Title VI civil rights advocacy, future of; changing the culture of law enforcement; collective denial by civil rights advocates; dismantling the mass incarceration system; and flawed public consensus; grassroots activism by formerly incarcerated men and women; human rights paradigm/ approach; Obama presidency; poor and working-class whites; and problem of colorblind advocacy; reconsidering affirmative action; reform work and movement building; reluctance to advocate on behalf of criminals; and sentencing; and trickle-down theories of racial justice Civil Rights Movement; backlash against; and black people who defied racial stereotypes; desegregation protests; and economic justice; and end of Jim Crow system; and federal legislation; and human rights approach; initial resistance from some African Americans; and King’s call for complete restructuring of society; Poor People’s Movement civil rights organizations/community; collective denial by; professionalization and conversion of grassroots movement into legal crusade; reluctance to advocate on behalf of criminals.

 

pages: 741 words: 179,454

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

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

In 1914, Henry Ford doubled workers’ pay from $2.34 to $5 per day and introduced a new, reduced working week. Ford argued that paying people more would enable workers to afford the cars that they were producing. The U.S. auto industry pioneered the basic wage in 1948. Harley Shaiken, a labor economist at the University of California at Berkeley, observed: “The most important model that rolled off the Detroit assembly lines in the 20th century was the middle class for blue-collar workers.”5 In trickle-down economics, benefits flow down from the top to the bottom. During the Great Depression, Will Rogers, the humorist, defined it as: “Money was all appropriated for the top in hopes that it would trickle down to the needy.” In the 1970s, the process went into reverse. The auto industry and heavy industries in the United States and developed countries declined. Technological change deskilled some jobs, driving declines in the earnings of low and middle-income workers.

Imported resources and parts were assembled or processed and then shipped out again. A buoyant global economy ensured a growing market for China’s exports. Deng represented a change in philosophy: “Poverty is not socialism. To be rich is glorious.” The strategy proved startlingly effective, bringing about profound change. By 2011, Colonel Sanders and KFC were better recognized than Chairman Mao in China. The strategy was decidedly trickle-down economics, as Deng himself acknowledged: “Let some people get rich first.” Later, Deng would grouse: “Young leading cadres have risen up by helicopter. They should really rise step by step.” Foreign Treasure China exported more than it imported, creating large foreign reserves that by 2011 totaled over $2.7 trillion. The Asian crisis of 1997–8 encouraged China to build even larger surpluses as protection against the destabilizing volatility of short-term foreign capital flows that almost destroyed many Asian countries.

See also mortgages shorting (2005/2006), 256 subsidies, 334, 348 Suma Oriental, 82 Sumitomo, 227 Summers, Lawrence, 116, 129, 214, 300, 304, 315 Sunday Times, 364 super jumbo loans, 182 Super Return annual industry conference, 162 super senior tranches, 175 supply of assets, 267 survivorship bias, 243 suspension of deep-water drilling, 362 Suze Orman Show, The, 93 Suze Orman’s Financial Freedom, 93 swaps correlation, 255 credit default swaps (CDS), 232, 237 dispersion, 255 Fiat, 222-223 first-to-default (FtD), 220-221 gamma, 255 total return swap (TRS), 209 Swensen, David, 124 Swift, Jonathon, 130 Sydney Airport, 159 synchronous lateral excitation, 273 synthetic securitization, 173, 176 systematic risk, 118 T TAC (target amortization class) bonds, 178 TAF (term auction facility), 340 tail risk, 246 Tainter, Joseph, 349 takeovers (risk arb), 242 Taleb, Nicholas Nassim, 126, 246 Talking Heads, The, 46 taming risk, 120-122 Tang dynasty, 351 tansu savings, 39 Tao Jones Averages, The, 96 TARDIS (Time And Relative Dimension(s) In Space) trades, 217-218 target redemption forwards, 217 Tavakoli, Janet, 177 taxes avoidance, 48-49 cuts, 348 Dubai International Financial Centre (DIFC), 82-83 favorable regimes, 41 leveraged buyouts (LBOs), 138 VAT (value added tax), 262 tchotchkes, 162 Teenage Cancer Trust, 262 Teledyn, 60 television, financial news, 91-99 Templars, 32 temporary suspension of deep-water drilling, 362 Terra Firma Capital Partners, 154, 157, 162, 165 terrorism, 44 Texas Instruments (TI), 122 Texas International, 146 Texas Pacific Group, 154 Textron, 60 Thain, John, 291, 319, 330 Thaler, Richard, 126 Thatcher, Margaret, 66, 81, 158 the Government National Mortgage Association (GNMA or Ginnie Mae), 179 theoretical profits, 231 theories, bubbles, 277-278 Theory of the Leisure Class, The, 41 This American Life, 185 Thompson, Todd, 93 Thoreau, Henry David, 359 Thornton, John, 76 Thorp, Edward, 121 thought leaders, 90 thundering herd, the, 66 TICKETs (tradable interest bearing convertible to equity trust securities), 160 Tierney, John, 98 Tiger Fund, 243 Time, 45, 129 Time Warner, 58 Tobias, Seth, 322 TOBs (tender option bonds), 222 toggle loans, 154 toilets, Japanese, 38 Tokyo as a financial center, 78 tools, six sigma, 60 Torii, Mayumi, 43 Toscanini, Arturo, 157 total return swap (TRS), 209 Tourre, Fabrice, 199 toxic currency structures, 218-219 toxic waste, 172 Toynbee, Arnold, 354 Toys R Us, 155 TPG, 156 trade protectionism, 334, 349 trading, 23-24 alleys, 92 banks, 73 proprietary, 352 securities, 66 stabilization of global trade, 349 traditional banking models, 68 tranches, 169 AAA, 203 equity, 192 innovation of, 178 super senior, 175 synthetic CDOs, 174 Z, 170, 178 transfers risk, central banks, 281-282 systems, money, 22 Transformers, 278 Travelers, merger of with Citicorp, 75 Treynor, Jack, 117 trickle-down economics, 42-43 Triffin dilemma, 31 Triffin, Robert, 31 Trollope, Anthony, 173 Troubled Asset Relief Program (TARP), 340 troy ounce bars, 25. See also gold TSLP (term securities lending facility), 340 tunnels, 158 turn-of-the-year effect, 126 Turner Broadcasting, 146 Turner, Lord Adair, 236, 280, 298 Tversky, Amos, 125-126 Twain, Mark, 123 Tweedie, David, 289 Twilight, 327 Tyco, 154 types of money, 21-23 U U.S.

 

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The Euro: How a Common Currency Threatens the Future of Europe by Joseph E. Stiglitz, Alex Hyde-White

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bank run, banking crisis, barriers to entry, battle of ideas, Berlin Wall, Bretton Woods, capital controls, Carmen Reinhart, cashless society, central bank independence, centre right, cognitive dissonance, collapse of Lehman Brothers, collective bargaining, corporate governance, correlation does not imply causation, credit crunch, Credit Default Swap, currency peg, dark matter, David Ricardo: comparative advantage, disintermediation, diversified portfolio, eurozone crisis, Fall of the Berlin Wall, fiat currency, financial innovation, full employment, George Akerlof, Gini coefficient, global supply chain, Growth in a Time of Debt, housing crisis, income inequality, incomplete markets, inflation targeting, investor state dispute settlement, invisible hand, Kenneth Rogoff, knowledge economy, labour market flexibility, labour mobility, manufacturing employment, market bubble, market friction, market fundamentalism, Martin Wolf, Mexican peso crisis / tequila crisis, moral hazard, mortgage debt, neoliberal agenda, new economy, open economy, paradox of thrift, pension reform, pensions crisis, price stability, profit maximization, purchasing power parity, quantitative easing, race to the bottom, risk-adjusted returns, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, secular stagnation, Silicon Valley, sovereign wealth fund, the payments system, The Wealth of Nations by Adam Smith, too big to fail, transaction costs, transfer pricing, trickle-down economics, Washington Consensus, working-age population

Though central banks are only supposed to lend to solvent but illiquid institutions, necessarily, in doing so, they are putting their judgment against that of the market. 27 In the United States, almost all of the hundreds of billions of bailout dollars went to help the banks and their bondholders and shareholders. A negligible amount went to help homeowners, even though the crisis had begun as a housing crisis. The administration and the Fed believed in trickle-down economics: throw enough money at the banks, and the whole economy will benefit. It would have been far better for the economy had they tried a larger dose of trickle-up economics: help the homeowners, and everyone will benefit. 28 The Troika, in effect, threatened to bankrupt Ireland if the government tried to make bondholders bear some of the costs of bank restructuring. The threats were kept secret and only revealed later by the central bank governor, Patrick Honohan.

., 393 in US, 35, 36, 88, 89–92 see also euro single-market principle, 125–26, 231 skilled workers, 134–35 skills, 77 Slovakia, 331 Slovenia, 331 small and medium-sized enterprises (SMEs), 127, 138, 171, 229 small and medium-size lending facility, 246–47, 300, 301, 382 Small Business Administration, 246 small businesses, 153 Smith, Adam, xviii, 24, 39–40, 41 social cohesion, 22 Social Democratic Party, Portugal, 392 social program, 196 Social Security, 90, 91 social solidarity, xix societal capital, 77–78 solar energy, 193, 229 solidarity fund, 373 solidarity fund for stabilization, 244, 254, 264, 301 Soros, George, 390 South Dakota, 90, 346 South Korea, 55 bailout of, 113 sovereign risk, 14, 353 sovereign spreads, 200 sovereign wealth funds, 258 Soviet Union, 10 Spain, 14, 16, 114, 177, 178, 278, 331, 335, 343 austerity opposed by, 59, 207–8, 315 bank bailout of, 179, 199–200, 206 banks in, 23, 186, 199, 200, 242, 270, 354 debt of, 196 debt-to-GDP ratio of, 231 deficits of, 109 economic growth in, 215, 231, 247 gold supply in, 277 independence movement in, xi inequality in, 72, 212, 225–26 inherited debt in, 134 labor reforms proposed for, 155 loans in, 127 low debt in, 87 poverty in, 261 real estate bubble in, 25, 108, 109, 114–15, 126, 198, 301, 302 regional independence demanded in, 307 renewable energy in, 229 sovereign spread of, 200 spread in, 332 structural reform in, 70 surplus in, 17, 88 threat of breakup of, 270 trade deficits in, 81, 119 unemployment in, 63, 161, 231, 235, 332, 338 Spanish bonds, 114, 199, 200 spending, cutting, 196–98 spread, 332 stability, 147, 172, 261, 301, 364 automatic, 244 bubble and, 264 central banks and, 8 as collective action problem, 246 solidarity fund for, 54, 244, 264 Stability and Growth Pact, 245 standard models, 211–13 state development banks, 138 steel companies, 55 stock market, 151 stock market bubble, 200–201 stock market crash (1929), 18, 95 stock options, 259, 359 structural deficit, 245 Structural Funds, 243 structural impediments, 215 structural realignment, 252–56 structural reforms, 9, 18, 19–20, 26–27, 214–36, 239–71, 307 from austerity to growth, 263–65 banking union, 241–44 and climate change, 229–30 common framework for stability, 244–52 counterproductive, 222–23 debt restructuring and, 265–67 of finance, 228–29 full employment and growth, 256–57 in Greece, 20, 70, 188, 191, 214–36 growth and, 232–35 shared prosperity and, 260–61 and structural realignment, 252–56 of trade deficits, 216–17 trauma of, 224 as trivial, 214–15, 217–20, 233 subsidiarity, 8, 41–42, 263 subsidies: agricultural, 45, 197 energy, 197 sudden stops, 111 Suharto, 314 suicide, 82, 344 Supplemental Nutrition Assistance Program (SNAP), 91 supply-side effects: in Greece, 191, 215–16 of investments, 367 surpluses, fiscal, 17, 96, 312, 379 primary, 187–88 surpluses, trade, see trade surpluses “Swabian housewife,” 186, 245 Sweden, 12, 46, 307, 313, 331, 335, 339 euro referendum of, 58 refugees into, 320 Switzerland, 44, 307 Syria, 321, 342 Syriza party, 309, 311, 312–13, 315, 377 Taiwan, 55 tariffs, 40 tax avoiders, 74, 142–43, 227–28, 261 taxes, 142, 290, 315 in Canada, 191 on capital, 356 on carbon, 230, 260, 265, 368 consumption, 193–94 corporate, 189–90, 227, 251 cross-border, 319, 384 and distortions, 191 in EU, 8, 261 and fiat currency, 284 and free mobility of goods and capital, 260–61 in Greece, 16, 142, 192, 193–94, 227, 367–68 ideal system for, 191 IMF’s warning about high, 190 income, 45 increase in, 190–94 inequality and, 191 inheritance, 368 land, 191 on luxury cars, 265 progressive, 248 property, 192–93, 227 Reagan cuts to, 168, 210 shipping, 227, 228 as stimulative, 368 on trade surpluses, 254 value-added, 190, 192 tax evasion, in Greece, 190–91 tax laws, 75 tax revenue, 190–96 Taylor, John, 169 Taylor rule, 169 tech bubble, 250 technology, 137, 138–39, 186, 211, 217, 251, 258, 265, 300 and new financial system, 274–76, 283–84 telecoms, 55 Telmex, 369 terrorism, 319 Thailand, 113 theory of the second best, 27–28, 48 “there is no alternative” (TINA), 306, 311–12 Tocqueville, Alexis de, xiii too-big-to-fail banks, 360 tourism, 192, 286 trade: and contractionary expansion, 209 US push for, 323 trade agreements, xiv–xvi, 357 trade balance, 81, 93, 100, 109 as allegedly self-correcting, 98–99, 101–3 and wage flexibility, 104–5 trade barriers, 40 trade deficits, 89, 139 aggregate demand weakened by, 111 chit solution to, 287–88, 290, 299–300, 387, 388–89 control of, 109–10, 122 with currency pegs, 110 and fixed exchange rates, 107–8, 118 and government spending, 107–8, 108 of Greece, 81, 194, 215–16, 222, 285–86 structural reform of, 216–17 traded goods, 102, 103, 216 trade integration, 393 trade surpluses, 88, 118–21, 139–40, 350–52 discouragement of, 282–84, 299–300 of Germany, 118–19, 120, 139, 253, 293, 299, 350–52, 381–82, 391 tax on, 254, 351, 381–82 Transatlantic Trade and Investment Partnership, xv, 323 transfer price system, 376 Trans-Pacific Partnership, xv, 323 Treasury bills, US, 204 Trichet, Jean-Claude, 100–101, 155, 156, 164–65, 251 trickle-down economics, 362 Troika, 19, 20, 26, 55, 56, 58, 60, 69, 99, 101–3, 117, 119, 135, 140–42, 178, 179, 184, 195, 274, 294, 317, 362, 370–71, 373, 376, 377, 386 banks weakened by, 229 conditions of, 201 discretion of, 262 failure to learn, 312 Greek incomes lowered by, 80 Greek loan set up by, 202 inequality created by, 225–26 poor forecasting of, 307 predictions by, 249 primary surpluses and, 187–88 privatization avoided by, 194 programs of, 17–18, 21, 155–57, 179–80, 181, 182–83, 184–85, 187–93, 196, 197–98, 202, 204, 205, 207, 208, 214–16, 217, 218–23, 225–28, 229, 231, 233–34, 273, 278, 308, 309–11, 312, 313, 314, 315–16, 323–24, 348, 366, 379, 392 social contract torn up by, 78 structural reforms imposed by, 214–16, 217, 218–23, 225–38 tax demand of, 192 and tax evasion, 367 see also European Central Bank (ECB); European Commission; International Monetary Fund (IMF) trust, xix, 280 Tsipras, Alexis, 61–62, 221, 273, 314 Turkey, 321 UBS, 355 Ukraine, 36 unemployment, 3, 64, 68, 71–72, 110, 111, 122, 323, 336, 342 as allegedly self-correcting, 98–101 in Argentina, 267 austerity and, 209 central banks and, 8, 94, 97, 106, 147 ECB and, 163 in eurozone, 71, 135, 163, 177–78, 181, 331 and financing investments, 186 in Finland, 296 and future income, 77 in Greece, xi, 71, 236, 267, 331, 338, 342 increased by capital, 264 interest rates and, 43–44 and internal devaluation, 98–101, 104–6 migration and, 69, 90, 135, 140 natural rate of, 172–73 present-day, in Europe, 210 and rise of Hitler, 338, 358 and single currency, 88 in Spain, 63, 161, 231, 235, 332, 338 and structural reforms, 19 and trade deficits, 108 in US, 3 youth, 3, 64, 71 unemployment insurance, 91, 186, 246, 247–48 UNICEF, 72–73 unions, 101, 254, 335 United Kingdom, 14, 44, 46, 131, 307, 331, 332, 340 colonies of, 36 debt of, 202 inflation target set in, 157 in Iraq War, 37 light regulations in, 131 proposed exit from EU by, 4, 270 United Nations, 337, 350, 384–85 creation of, 38 and lower rates of war, 196 United States: banking system in, 91 budget of, 8, 45 and Canada’s 1990 expansion, 209 Canada’s free trade with, 45–46, 47 central bank governance in, 161 debt-to-GDP of, 202, 210–11 financial crisis originating in, 65, 68, 79–80, 128, 296, 302 financial system in, 228 founding of, 319 GDP of, xiii Germany’s borrowing from, 187 growing working-age population of, 70 growth in, 68 housing bubble in, 108 immigration into, 320 migration in, 90, 136, 346 monetary policy in financial crisis of, 151 in NAFTA, xiv 1980–1981 recessions in, 76 predatory lending in, 310 productivity in, 71 recovery of, xiii, 12 rising inequality in, xvii, 333 shareholder capitalism of, 21 Small Business Administration in, 246 structural reforms needed in, 20 surpluses in, 96, 187 trade agenda of, 323 unemployment in, 3, 178 united currency in, 35, 36, 88, 89–92 United States bonds, 350 unskilled workers, 134–35 value-added tax, 190, 192 values, 57–58 Varoufakis, Yanis, 61, 221, 309 velocity of circulation, 167 Venezuela, 371 Versaille, Treaty of, 187 victim blaming, 9, 15–17, 177–78, 309–11 volatility: and capital market integration, 28 in exchange rates, 48–49 Volcker, Paul, 157, 168 wage adjustments, 100–101, 103, 104–5, 155, 216–17, 220–22, 338, 361 wages, 19, 348 expansionary policies on, 284–85 Germany’s constraining of, 41, 42–43 lowered in Germany, 105, 333 wage stagnation, in Germany, 13 war, change in attitude to, 38, 196 Washington Consensus, xvi Washington Mutual, 91 wealth, divergence in, 139–40 Weil, Jonathan, 360 welfare, 196 West Germany, 6 Whitney, Meredith, 360 wind energy, 193, 229 Wolf, Martin, 385 worker protection, 56 workers’ bargaining rights, 19, 221, 255 World Bank, xv, xvii, 10, 61, 337, 357, 371 World Trade Organization, xiv youth: future of, xx–xxi unemployment of, 3, 64, 71 Zapatero, José Luis Rodríguez, xiv, 155, 362 zero lower bound, 106 ALSO BY JOSEPH E.

 

pages: 160 words: 46,449

The Extreme Centre: A Warning by Tariq Ali

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Affordable Care Act / Obamacare, Berlin Wall, bonus culture, BRICs, British Empire, centre right, deindustrialization, Edward Snowden, Fall of the Berlin Wall, financial deregulation, first-past-the-post, full employment, labour market flexibility, land reform, means of production, Mikhail Gorbachev, Monroe Doctrine, mortgage debt, North Sea oil, obamacare, offshore financial centre, reserve currency, Ronald Reagan, South China Sea, The Chicago School, The Wealth of Nations by Adam Smith, trade route, trickle-down economics, Washington Consensus, Wolfgang Streeck

In 1980, the richest 1 per cent of the population owned 20.5 per cent of the wealth. This rose to 31.9 per cent in 1989, and reached 40.1 per cent in 1997. The value of stocks tripled in real terms between 1990 and 1998, an extraordinary windfall for those who were already rich. By 2000 the top 1 per cent netted 42.5 per cent and the richest 10 per cent netted 85.8 per cent of the national wealth, leaving the bottom 80 per cent with peanuts. This is the famous trickle-down economics of neoliberal fantasists. When we are told the US economy is flourishing, this is true, but only for the well-off. In the United States, 25 per cent of all children live in poverty. This number is double that of any other advanced capitalist economy, except one – Britain. Where elderly poverty is concerned, the United States scores 20 per cent, but in this field, at least, it has been overtaken by its British emulators: in England, 24 per cent of old people now live in poverty.

 

pages: 494 words: 132,975

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

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

He illustrated his reasoning by drawing a bell curve on a napkin, showing where the sweet spot might lie. The “Laffer curve” instantly became the hastily drawn device used by economists around Reagan to convince others that tax cuts would boost revenues. Sharply cutting income taxes, the Reaganites argued, would increase personal spending, which would in turn increase demand through a “trickle-down” effect on the whole economy. A third key element to Reaganomics, also promoted by Laffer, was “supply-side economics,” the notion that a booming economy could best be achieved by encouraging producers to supply more and cheaper goods by cutting industry regulations and corporate taxes rather than relying on “demand-led” growth spurred by Keynesian public spending. Laffer was graceful enough to point out that, despite his name being attached to it, the Laffer curve was not his invention and that others, notably Keynes, had beaten him to the punch.

“Nor should the argument seem strange that taxation may be so high as to defeat its object,” Keynes had written in 1933, “and that, given sufficient time to gather the fruits, a reduction of taxation will run a better chance than an increase of balancing the budget.” Keynes likened those who kept raising taxes to a manufacturer who, “wrapping himself in the rectitude of plain arithmetic,” kept raising his prices, even though no one was buying because prices were too high.61 The “trickle-down effect” had a Keynesian derivation too, drawing on the logic of Richard Kahn’s multiplier, that those who bought goods created jobs and more spending down the line. However, Reagan’s tax cuts made Hayek distinctly nervous. “On the scale on which it is being tried, I’m a little apprehensive,” he said in 1982. “I’m all for reduction of government expenditures, but to anticipate it by reducing the rate of taxation before you have reduced expenditure is a very risky thing to do.”62 There was also general skepticism about Reagan’s economic experiment among Keynesians.

., 140 Tooke, Thomas, 74 “total effective circulation,” velocity as, 104–5 totalitarianism, xiii, 87, 91, 144–45, 150–51, 193–205, 218–19, 221, 241, 266, 287, 288–90 Tract on Monetary Reform, A (Keynes), 23, 24, 32, 41, 53, 115, 286 trade: —balance of, 32, 144, 245 —cycles of, 110–11, 112 —exports vs. imports in, 32, 131, 245 —free, 35–36, 61–62, 82–83, 144, 243, 267, 272 —global, 4 —Keynes’s views on, 61–64, 82–83, 86, 131 —money supply and, 73 —prices and, 23, 24 —tariffs on, 61–64, 82–83, 86, 247 trade unions, 33, 38, 39–40, 60, 187, 247, 268 Treasury, British, xii, 7–11, 24, 32, 57–58, 60–61, 62, 72, 82–83, 85–87, 129, 149–50, 191, 193 Treasury, U.S., 163, 236, 242–43, 280, 281 Treatise on Money, A (Keynes), 31, 53–57, 59, 66, 67, 70, 71, 75, 87–122, 123, 127–28, 132, 139, 146, 168, 172, 174, 317n trench warfare, 4, 6–7 “trickle-down” effect, 262–63 Trinity College, 5, 67 Truman, Harry S., 229, 230, 231, 274 trust funds, 52, 57–58 trusts, 166, 222, 244 Turati, Filippo, 114 unemployment: —benefits paid for (“dole”), 57–58, 60, 61, 134, 199–200, 237, 253, 283–84, 291 —consumer spending and, 81–82 —currency rates and, 31–32, 38–40, 56, 85–87 —economic impact of, 81–82, 85, 131, 133 —in Great Britain, 38, 56, 57–58, 81–82, 85–87, 128, 134, 178–79, 189, 191, 203, 260 —Hayek’s views on, xiii, 2, 70–71, 77–78, 108, 110, 143–44, 178, 184–85, 187, 194–95, 198–99, 257 —inflation and, 131, 159, 232, 238–39, 244, 263, 271 —job creation programs for, 49, 52, 57–58, 70–71, 129–30, 133, 134, 150–51, 163, 184–85, 187, 189, 228–30, 241–42, 272, 280 —Keynes’s views on, 2, 31–32, 52, 55, 56, 57–58, 70–71, 77–78, 81–82, 85, 94, 110, 123–24, 125, 127, 128, 129–37, 143–46, 148, 149–51, 153, 154–64, 170, 184–85, 187, 194–95, 198, 226, 296 —natural level of, 249 —prices and, 26, 41, 229–30 —public spending and, 26, 33–34, 49, 50, 77–78, 85, 260 —taxation and, 130, 163, 191 —in U.S., 128, 157, 170, 178–79, 199, 228–30, 232, 236–46, 251, 253, 261, 277, 282, 283 —wage levels and, 148 United Nations, 228, 229 United States: —banking system of, 28, 41, 84–85 —capitalism in, 46, 144–46 —domestic programs of, 157–70, 202, 205, 228, 231–32, 240, 248, 253, 256, 320n —economy of, 46, 52–53, 62, 106, 111, 141–42, 188–90, 228–46, 253–55, 261–65, 269–72 —foreign aid of, 136, 228 —Hayek’s influence in, xiii–xiv, 201–11, 234, 246, 247–65, 267–74 —inflation rate of, 230, 232, 236, 238–39, 242–46, 248, 251, 255, 261–62, 263, 267, 271 —infrastructure of, 159, 163, 189, 281 —interest rates in, 232, 235, 236, 246, 277, 280, 282, 284 —Keynesianism in, 146–47, 154–70, 188–90, 228–46, 276–84 —military spending of, 190, 231–34, 237, 241, 261, 264, 274, 276–78 —national security of, 233–34, 237, 276–77 —space program of, 234, 237 taxation in, 231, 262–63 —unemployment rate in, 128, 157, 170, 178–79, 199, 228–30, 232, 236–46, 251, 253, 261, 277, 282, 283 —Versailles Treaty and, 4–5, 155–57 —welfare programs in, 240, 264 —in World War II, 189–90, 229, 234 University of Chicago Press, 194, 201–2, 212, 216, 247 utilities, 291 utopias, 290–91, 292 value: —of currency, 22–23 —determination of, 5, 22–23 —of equipment (depreciation), 105–6, 118–19 —of goods, 74–75, 101, 117 —monetary, 22–23, 74–75, 120–21, 161 Vanity Fair, 157 “velocity of circulation,” 26, 33, 104, 136 Versailles Treaty, xii, xiii, 3, 4–5, 8–14, 17, 28, 56, 68, 84, 136, 137, 155–57, 158, 189 Vienna, xi–xiii, 1–3, 15–16, 17, 18–21, 27, 29–30, 40, 44, 111, 145, 214–15 Vienna, University of, 3, 15, 19, 20–22, 140 Vietnam War, 241 Viner, Jacob, 216, 221–22, 329n Volcker, Paul, 246, 261, 263, 286 voluntary savings, 104, 107 von Szeliski, Victor, 164 voting rights, 140 wages, 32, 38–39, 60, 63, 118, 119–20, 134, 135, 148, 188, 241 —controls on, 243–44 —increases in, 118, 119–20, 134 —production costs and, 119–20 Walras, Léon, 74 war debt, 4–5, 8–14, 21–22, 31–32, 84, 155–57, 206 warfare, 4, 137, 138, 190–92, 194, 229, 231–34 war on poverty, 240 war on terror, 276–78 “War Potential and War Finance” (Keynes), 191–92 Watergate scandal, 244 wealth accumulation, 56–57, 117–20, 127, 143–44, 149–50, 222, 241, 279, 287 Wealth of Nations, The (Smith), 218 Webb, Beatrice, 24, 64 Webb, Sidney, 24 Weber, Max, 21, 304n Wedgwood, Veronica, 212, 329n weights and measures, 201 Weimar Republic, 9 welfare state, 199–200, 201, 222, 227, 233, 234–35, 240, 249–50, 253, 258–61, 264, 267, 288–89, 295 Westminster Abbey, 226 wholesale prices, 62 “Why I Am Not a Conservative” (Hayek), 220 Wicksell, Knut, 42, 43, 48, 55, 74, 91, 100, 103, 120 “widow’s cruse,” 127 Wieser, Friedrich von, 20, 21–22 Wilhelm II, Emperor of Germany, 9 William Volcker Charities Fund, 211, 216, 218 Wilson, Woodrow, 4–5, 11, 28, 155–57, 161 Winant, John, 226 Wittgenstein, Ludwig, 3, 114, 300n Wolfson, Adam, 288–89, 292 Woolf, Leonard, 53, 226 Woolf, Virginia, 5, 53, 301n Wootton, Barbara, 202–3, 320n, 326n “Working of the Price Mechanism in the Course of the Credit Cycle, The” (Hayek), 76–78 World Bank, 136, 193 WorldCom, 278 World War I, 3–5, 16, 19–20, 22, 55–56, 68, 69, 72, 84, 155–57, 189 World War II, 136, 189–92, 229, 234 Wright, Quincy, 85 Yale University, 271 Yom Kippur War, 244 Yugoslavia, 16, 17 Zionism, 158 More praise for KEYNES HAYEK “An essential primer on the two men who shaped modern finance.”

 

pages: 289 words: 99,936

Digital Dead End: Fighting for Social Justice in the Information Age by Virginia Eubanks

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affirmative action, Berlin Wall, call centre, cognitive dissonance, desegregation, Fall of the Berlin Wall, future of work, game design, global village, index card, informal economy, invisible hand, Kevin Kelly, knowledge economy, labor-force participation, labour market flexibility, low-wage service sector, microcredit, new economy, post-industrial society, race to the bottom, rent control, Silicon Valley, South of Market, San Francisco, telemarketer, Thomas L Friedman, trickle-down economics, union organizing, urban planning, web application, white flight, women in the workforce, working poor

Make a collective list of expenses that the minimum wage and public assistance are not taking into account. What might a more just minimum wage and public assistance program take into account? Conversation (20 minutes) Myths of the minimum wage: Myth 1: Working steadily at a job is enough to stay out of poverty. Myth 2: Voodoo economics: the poor will get richer if the rich get richer, through the trickle-down effect. Myth 3: Poor folks in the United States are better off than pretty much everyone else in the world. Myth 4: Only the poor get public assistance. Break for Ice Cream (15 minutes) Play the Oprah Winfrey interview with Ben Cohen. (5 minutes) Myth 5: Good wages are bad business. What might be some of the benefits for businesses of paying good wages? Exercise (15 minutes) Calculating self-sufficiency: How would you define a self-sufficiency or equity wage?

In 1938, the federal minimum wage brought a family of three with one full-time worker above the poverty line. It was calculated by. . . . But now, a household’s Appendix C 199 heaviest financial burden is housing. . . . The minimum wage doesn’t bring one worker with one child above that the poverty line line. The minimum wage is now a poverty wage. Myth 2: Voodoo economics: the poor will get richer if the rich get richer, through the trickle-down effect. Actually, the United States has one of the most extreme inequalities in wealth of the industrialized countries, and it’s getting worse, not better. Inequality is bad for your health. The United States is the richest nation on earth, but it is the only major industrialized nation not to assure health care for all its citizens, whether through a public, private, or mixed system. The United States ranks thirty-second in child mortality in children under five years old—we’re tied with Cuba and Cyprus, and behind Canada, Australia, Israel, Singapore, South Korea, and all of Western Europe.

 

pages: 302 words: 83,116

SuperFreakonomics by Steven D. Levitt, Stephen J. Dubner

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agricultural Revolution, airport security, Andrei Shleifer, Atul Gawande, barriers to entry, Bernie Madoff, call centre, clean water, cognitive bias, collateralized debt obligation, credit crunch, Daniel Kahneman / Amos Tversky, deliberate practice, disintermediation, endowment effect, experimental economics, food miles, indoor plumbing, John Nash: game theory, Joseph Schumpeter, loss aversion, Louis Pasteur, market design, microcredit, Milgram experiment, oil shale / tar sands, patent troll, presumed consent, price discrimination, principal–agent problem, profit motive, randomized controlled trial, Richard Feynman, Richard Feynman, Richard Thaler, South China Sea, Stephen Hawking, The Wealth of Nations by Adam Smith, too big to fail, trickle-down economics, ultimatum game, urban planning, women in the workforce, young professional

Chapter 2 Why Should Suicide Bombers Buy Life Insurance? In which we discuss compelling aspects of birth and death, though primarily death. The worst month to have a baby…The natal roulette affects horses too…Why Albert Aab will outshine Albert Zyzmor…The birthdate bulge…Where does talent come from?…Some families produce baseball players; others produce terrorists…Why terrorism is so cheap and easy…The trickle-down effects of September 11…The man who fixes hospitals…Why the newest ERs are already obsolete…How can you tell a good doctor from a bad one?…“Bitten by a client at work”…Why you want your ER doc to be a woman…A variety of ways to postpone death…Why is chemotherapy so widely used when it so rarely works?…“We’re still getting our butts kicked by cancer”…War: not as dangerous as you think?…How to catch a terrorist.

Interestingly, however, the data show that most of these extra traffic deaths occurred not on interstates but on local roads, and they were concentrated in the Northeast, close to the terrorist attacks. Furthermore, these fatalities were more likely than usual to involve drunken and reckless driving. These facts, along with myriad psychological studies of terrorism’s aftereffects, suggest that the September 11 attacks led to a spike in alcohol abuse and post-traumatic stress that translated into, among other things, extra driving deaths. Such trickle-down effects are nearly endless. Thousands of foreign-born university students and professors were kept out of the United States because of new visa restrictions after the September 11 attacks. At least 140 U.S. corporations exploited the ensuing stock-market decline by illegally backdating stock options. In New York City, so many police resources were shifted to terrorism that other areas—the Cold Case Squad, for one, as well as anti-Mafia units—were neglected.

 

pages: 209 words: 80,086

The Global Auction: The Broken Promises of Education, Jobs, and Incomes by Phillip Brown, Hugh Lauder, David Ashton

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affirmative action, barriers to entry, Branko Milanovic, BRICs, business process, business process outsourcing, call centre, collective bargaining, corporate governance, credit crunch, David Ricardo: comparative advantage, deindustrialization, deskilling, Frederick Winslow Taylor, full employment, future of work, glass ceiling, global supply chain, immigration reform, income inequality, industrial robot, job automation, Joseph Schumpeter, knowledge economy, knowledge worker, labour market flexibility, low skilled workers, manufacturing employment, market bubble, market design, neoliberal agenda, new economy, pensions crisis, post-industrial society, profit maximization, purchasing power parity, QWERTY keyboard, race to the bottom, Richard Florida, Ronald Reagan, shareholder value, Silicon Valley, sovereign wealth fund, stem cell, The Bell Curve by Richard Herrnstein and Charles Murray, The Wealth of Nations by Adam Smith, Thomas L Friedman, trade liberalization, transaction costs, trickle-down economics, winner-take-all economy, working poor

See also BRIC (Brazil, Russia, India, and China) nations rust belt, 99 property rights, 68 prosperity, 2–4, 16, 26–27, 64, 132–33, 146, 152, 154–58, 164, 185n4 protectionism, 13, 149–52 public sector workforce, 17–18, 115, 127 salaries, 55, 59, 71, 78, 85, 114, 117, 118, 118–19, 120, 123, 176n9 Salzman, Harold, 37 Samsung, 95 Samuelson, Paul, 152 Index Saez, Emmanuel, 116, 125 safety net, 12, 24 Saudi Arabia, 30 Savery, Thomas, 66 Saxenian, Anna Lee, 38 STEM (science, technology, engineering, or math) subjects, 36–40, 39, 45, 153, 155 Stembridge, Bob, 45 Schneider, Craig, 79 Schultz, Theodore, 16–17, 166n8 Schumpeter, Joseph, 113 scientific management, 8, 65–66, 69, 71–72, 76, 80–81, 160 Stimpson, Herbert, 69–71 stock options, 159, 162 Summers, Lawrence, 115, 126 supply chains, 40, 77, 104–5 supply side economics, 17 Scientific Office Management, 72 Scott, Robert, 108–9, 112 self-interest, 4, 24, 26, 40, 156 self-regulation, 13 surveillance, 74, 174n33 Sweden, 124–25 symbolic-analytic services, 15 self-reliance, 19 Sennett, Richard, 142 talented workers, 25–26 Tate, Jay, 65–66 Serco, 115 service industries, 50, 73–80, 109, 152, 170–71n2 tax policies, 125, 162 Taylor, Fredrick Winslow, 8, 65–66, 68–69, 71–72 Shanghai Nanotechnology Promotion Center, 44 technology, 166n3 technology transfer, 41 shareholders, 67, 98, 104, 106, 124–25, 159, 162 Shierholz, Heidi, 122, 180n25 shipping containers, 57–58 telecommunications industry, 53–54, 61–62, 107 Temesek Holdings, 42 Shukla, Rajesh, 130 Silicon Valley, 39, 163 Thatcher, Margaret, 4, 24, 125 time and motion studies, 69, 71 Simmel, Georg, 137 Singapore, 38, 42, 158 Singh, Manmohan, 33–34 Time magazine, 145 Times newspaper group, 95 trade barriers, 99 skilled workforce, 25, 47–50, 84–87, 90–92, 127, 166n3, 170n44. See also high-skill, trade unions, 110, 125, 160 transaction costs, 107 low-wage workforce Smith, Adam, 16, 67, 76, 81–82, 166n3 social amnesia, 163 transnational companies, 3, 36, 40–41, 49–50, 52, 87, 98–100, 107, 112 trickle down economics, 24 social capital, 134–35 social conflict, 146 trust relations, 107 Tulgan, Bruce, 177n25 social congestion, 135–36, 139, 146 social inequalities, 148, 162 social justice, 3, 17, 27, 64, 146, 148, 150, unemployment, 24, 31, 41, 47, 92, 114, 118, 119, 136–37, 163 152, 154, 160–64, 185n4 social mobility, 12, 17, 34 socialism, 187n31 soft currencies, 140 software, 72, 74, 77, 79–80, 100, 114–15, 175n38.

 

pages: 257 words: 64,763

The Great American Stickup: How Reagan Republicans and Clinton Democrats Enriched Wall Street While Mugging Main Street by Robert Scheer

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banking crisis, Bernie Madoff, Bernie Sanders, collateralized debt obligation, corporate governance, Credit Default Swap, credit default swaps / collateralized debt obligations, facts on the ground, financial deregulation, housing crisis, invisible hand, Long Term Capital Management, mortgage debt, new economy, Ponzi scheme, profit motive, Ralph Nader, Ronald Reagan, too big to fail, trickle-down economics

The bulk of the benefits of these expansions go to the workers that receive them, not to the corporations that employ them. This may be an ingenious argument in defense of Wal-Mart’s profits abetted by Clinton’s economic policy, but it should have been a clue to Obama’s own views that the community organizer would pick the author of that rationalization to run the economic side of his campaign. It is trickle-down economics of the sort that would guide the banking bailout: Serve Wall Street a banquet, and hope the crumbs fall to distressed homeowners and the jobless. The die was cast in the weeks after his election, when Obama made it clear that he would not only appoint others from Robert Rubin’s team but also endorse an expansion of the enormously costly bailout of Citigroup. As previously noted, this bailout involved $50 billion of taxpayer money thrown at Citigroup and the guarantee of $306 billion for the bank’s toxic securities that would have been illegal if not for changes in the law that Citigroup secured with the decisive help of Rubin and Summers.

 

pages: 251 words: 76,868

How to Run the World: Charting a Course to the Next Renaissance by Parag Khanna

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Albert Einstein, Asian financial crisis, back-to-the-land, bank run, blood diamonds, borderless world, BRICs, British Empire, call centre, carbon footprint, charter city, clean water, cleantech, cloud computing, corporate governance, corporate social responsibility, Deng Xiaoping, Doha Development Round, don't be evil, double entry bookkeeping, energy security, European colonialism, facts on the ground, failed state, friendly fire, global village, Google Earth, high net worth, index fund, informal economy, invisible hand, labour mobility, laissez-faire capitalism, Masdar, megacity, microcredit, mutually assured destruction, Naomi Klein, New Urbanism, offshore financial centre, oil shock, open economy, out of africa, private military company, Productivity paradox, race to the bottom, RAND corporation, reserve currency, Silicon Valley, smart grid, South China Sea, sovereign wealth fund, special economic zone, sustainable-tourism, The Fortune at the Bottom of the Pyramid, The Wisdom of Crowds, too big to fail, trade liberalization, trickle-down economics, UNCLOS, uranium enrichment, Washington Consensus, X Prize

One migrant returning from Shanghai wrote, “It was a leap from post- to pre-modernism, from the 21st century back into the medieval world.”1 Statistics actually matter little amid such volatility. As Mark Twain said, “There are three kinds of lies: lies, damn lies, and statistics.” Touting economic growth percentages, for example, without taking into account population growth and resource consumption, makes a mockery of any meaning numbers might have. Trickle-down economics doesn’t work in third world–sized populations. Ethiopia has eighty-five million people today but is growing by almost two million per year. Many Arab and African states have little idea how to manage populations that are so much larger than only several decades ago, so they barely even try. The only sure thing about the future of the developing world is that it will contain about one billion more people thirty years from now.

 

Affluenza: When Too Much Is Never Enough by Clive Hamilton, Richard Denniss

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call centre, delayed gratification, experimental subject, full employment, impulse control, Mahatma Gandhi, McMansion, Naomi Klein, Own Your Own Home, Post-materialism, post-materialism, purchasing power parity, Thorstein Veblen, trickle-down economics, wage slave

CHAPTER 11 1 Lambesis Agency 2004, L Style Report, 9th edn, <http://www.lstylereport.com> [11 January 2005]. 209 INDEX Abbott, Tony, 133 advertising, 4, 28, 36–40, 41, 43, 55, 61, 101, 109, 120, 126,172, 187 and neuroscience, 41–2 fake memories in, 46 children and, 47, 50–51 of breakfast cereals, 48–50, 150–1 of cars, 10, 45 of junk food, 51 of margarine, 43 of tobacco, 51–2, 125 of vitamins, 94 restrictions on, 188 use of nagging, 53–4 affluenza, defined, 3, 7 alcohol, 115–17, 180 annual leave see holiday leave anorexia, 16 appliances, 22–3, 37, 38 attention deficit hyperactivity disorder, 55 Aussie battler, 3, 133–4, 136, 139, 151, 180, see also politics Australian Labor Party, 3, 137–9, 151, 191 bankruptcy, 72–3, 175 banks, 12, 75–6, 77–80 barbecues, 23–4 210 INDEX Blair, Tony, 191 botox, 37, 128 brands, 23, 34, 38–40, 41–33, 45, 53, 55, 56, 110, 187 brand loyalty, 39, 55, 189 brand disloyalty, 190 see also advertising; marketing Bray, Robert, 66 Buddhism, 17 caesareans, 34 Calvinism, 16, 17 cars, 10, 13, 45 4WDs, 44–5, 188 see also advertising celebrity, need for, 56–7 children, 21 advertising and, 47–57, 150 and clothes, 33–4 as fashion accessories, 33 behavioural problems of, 55 financial calculus of having, 34–5, 142–5, impact of materialism on, 149–50 sexualisation of, 57 tinys, 52–3 tweens, 55–7 see also downshifting choice, alleged benefits of, 40–1 clothes, 13, 45, 166 see also children Coalition Government, 136–9 see also Liberal Party community, 95, 119, 146, 148, 183 compulsive shopping, 15, 61 see also oniomania conscious consumption, 166, 186–90 conspicuous consumption, 8, 88, 96 cosmetic surgery, 10, 57, 127–9, see also botox cosmetics, 37 Costello, Peter, 35, 141 credit cards, 10–2, 19, 72–81, 102, 103 see also debt debt, 71 passim, 137, 179 attitudes to, 74, 75 Debtors Anonymous, 61, 80–1 foreign debt truck, 82 home equity loans, 79–80 marketing of, 71, 75–7 national debt, 81–4 211 AFFLUENZA deferred happiness syndrome, 89–2, 98, 169 deferrers, 175–6 see also deferred happiness syndrome democratisation of luxury, 26 depression, 16, 38, 93, 114 deprivation, 3, 66, 192, see also poverty, hardship disease-mongering, 120–7 doorbuster sales, 78 downshifters characteristics of, 154–6 motivations of, 156–7, 158 passim new lifestyle of, 165–7 regrets of, 173 downshifting, 17, 152, 153 passim, 180 children and, 156, 159, 160, 166–7 defined, 153 for dogs, 33 politics of, 175, 183–6 reactions to, 176–70 drugs, 114–16, 118 Easterlin, Richard, 6 Eckersley, Richard, 148 economic growth, 3, 4–5, 62–3, 114, 118, 136, 141, 159, 185, 190, 193 environment, 111, 112, 157, 179, 190, 193, 194 evangelical Christianity, 182–3 family size, 20–1 federal election 2004, 3, 136–8 female sexual dysfunction, 121–3 feminism, 27 flexible work hours see work hours Frank, Robert, 9 Frey, Bruno, 63 full employment, 192 gratifiers, 175 growth fetishism, viii, 18, 142, 193 Guevara, Che, 28 happiness, 58, 63–4, 113, 118, 127, 146, 152, 175–6 hardship imagined, 64 genuine, 66 212 INDEX Hayek, Friedrich, 186 health, 113, 156, 157, 164, 166, 179, 193 see also work hours hedonic treadmill, 6, 58, 184 holiday leave, 87, 88, 93 Hood, Robin, 190 houses, 13, 20, 60, 101 size of, 20, 21–2, 37 prices of, 20, 21–2, 134, 137, 179 Howard, John, 82, 138, 141, 142 Idell, Cheryl, 53 identity, 13–4, 45 imports, 73, 83–4 incomes, 4, 58–9, 112 Indigenous Australians, 113 intermittent husband syndrome, 91 karoshi, 92 Kasser, Tim, 14 Klein, Naomi, 38 Latham, Mark, 137, 138 Liberal Party, 136, 138, 139, 151 Luis Vuitton, 9, 28 luxury fever, 8–10, 12, 19, 135, 143, 178 luxury goods, 9–10, 13, 16, 19, 21, 26, 127, 170 Mandelson, Peter, 191 marketing, 13, 28, 37–8, 42, 45, 47, 53, 104, 110–1, 118, 120, 126, 179 see also advertising materialism, 14–5, 17, 47, 55, 89, 119, 154, 184 and values, 146–52 meningococcal disease, 120 middle class, 8–9, 59, 74, 136 middle-class welfare, 139-42, 180 Mill, John Stuart, 138, 186 money, 5, 7, 11, 16–7, 19, 58, 63, 67–8, 80, 97, 98–9, 103, 107, 112, 120, 139, 143–4, 148, 152, 159, 166, 171, 175–7, 178, 187 hunger for, 6, 17, 18, 137, 146, 180, 183–4 see also debt money coma, 80 Moynihan, Ray, 121, 123 213 AFFLUENZA needs, 4, 7, 29, 59–63, 65, 66, 100, 147, 148 neoliberalism, 7, 17, 36, 39–40, 79, 138 as new form of oppression, 186 of relationships, 182 of tax cuts, 136, 139 of the Aussie battler, 133–5, 151 of welfare, 139, 140, 141, 180 of wellbeing, 193–4 progressive, 181, 182 pornography, 151 post-materialism, 4, 155, 157, 184 poverty, 18, 181, 190–2 poverty line, 66–7 presenteeism, 94 privatisation, 40 psychology, role in marketing, 36–41, 46, 51, 53–4, 61 obesity, 118 obsolescence, 110 oniomania, 15–6 see also compulsive shopping Olsen twins, 57 O’Neill, Jessie, 7 ovens, 22–3 overconsumption, 7, 19 passim, 72, 96, 122, 178 overwork see work hours Pavlov, Ivan, 41, 47 plastic bag levy, 103 pets, 28–33 humanisation of, 30, 33 pharmaceutical companies, 120–1, 126 Pocock, Barbara, 98 politics, 60–1, 66, 119, 183 conservative, 144, 181, 190 of choice, 168, 172 relationships, 14, 81, 97, 179, 193, 194 relationship debts, 175 see also work hours retail therapy, 16, 100–1 retirement anxiety, 92, 173–4 right-hand ring, 27 Ritalin, 118 Roberts, Kevin, 39 saving, 71, 82 see also debt 214 INDEX Schor, Juliet, 48 sea change, 153, 155 see also downshifting self-storage industry, 25, 102 social anxiety disorder, 124–6 status, 170 Stutzer, Alois, 63 suffering rich, 63 sunglasses, 25–6 television, 9, 21, 22, 60, 183, 188 lifestyle programs, 37 sales, 24–5 Trapaga, Monica, 49–50 trickle down theory, 191 twin deficits theory, 83 values, 180–3 see also materialism Veblen, Thorstein, 8 Vidal, Gore, 6 voluntary simplicity, 154, 187 see also downshifting wasteful consumption, 100 passim, 179, 190, 194 and guilt, 106–8, 112 wealth, 81–2 whitegoods, 23 see also appliances wellbeing, 14, 40, 54, 58, 113, 115, 118, 142, 163, 190 wellbeing manifesto, 193, 217–24 work hours, 81, 91, 95–6, 158, 161, 163, 174, 179 and children, 90–1 excessive, 85–9, 158 impact on communities, 95–7 impact on health, 90–4, 122 impact on relationships, 85, 90, 91, 97–9, 122, 149 working class, 8–9 workophiles, 87 215 A political manifesto for wellbeing Preamble Australians are three times richer than their parents and grandparents were in the 1950s, but they are not happier.

 

pages: 509 words: 147,998

The Geeks Shall Inherit the Earth: Popularity, Quirk Theory, and Why Outsiders Thrive After High School by Alexandra Robbins

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airport security, Albert Einstein, Columbine, game design, hive mind, out of africa, Skype, Slavoj Žižek, Steve Jobs, Steve Wozniak, The Wisdom of Crowds, trickle-down economics

The massive mainstreaming of spheres that once were the domains of nerds and geeks—video games, Internet destinations like Wikipedia, YouTube, MySpace, Facebook, Skype; technological gear like Bluetooth headsets and BlackBerries; the literary genres that encompass Lord of the Rings, Harry Potter, and Twilight; pop culture remixes like Transformers and X-Men; activities like forwarding or embedding viral videos and blogging—provide ample evidence that a once-stigmatized subculture is now embraced and thriving. So, too, can teenage nerds and geeks find this acceptance. While there have been surprisingly few trickle-down effects from the adult Age of the Nerd to the student world, they have been positive. Some student bodies have acknowledged a “cool nerd” subset, for example. More important, many teenage nerds and geeks now choose to celebrate their label rather than allow it to imprison them. These outcasts are rising up, exulting in the “geek cred” that differentiates them from other groups and the knowledge and precision that, as Geoffrey suggested, eventually will enable them to profit financially (as have, to name a few, Paul Allen, Sergey Brin, Larry Ellison, Bill Gates, Steve Jobs, Larry Page, and Steve Wozniak, some of whom themselves exemplify quirk theory).

nerd merch: See, for example, O’Neil, Lauren. “It’s hip to be square: Nerd merch brings in the bank,” Toronto Star, June 17, 2010. nerdcore hip-hop artists: See, for example, Tocci, Jason. “The Well-Dressed Geek: Media Appropriation and Subcultural Style,” paper presented at MiT5, Massachusetts Institute of Technology, April 29, 2007. “the social pariah outcast aesthetic”: Ibid. massive mainstreaming of spheres: Ibid. few trickle-down effects: Interviews. a “cool nerd” subset: Interviews. Paul Allen, Sergey Brin: These names are cited in many places; this particular list was in Varma, Roli. “Women in Computing: the Role of Geek Culture,” Science as Culture, Vol. 16, No. 4, December 2007. Steve Jobs: Jobs, an outsider in school whom classmates viewed as odd, intense, and a loner—and who is now called “arguably the greatest innovator of the digital age”—is also an example of quirk theory.

 

pages: 504 words: 143,303

Why We Can't Afford the Rich by Andrew Sayer

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accounting loophole / creative accounting, Albert Einstein, asset-backed security, banking crisis, banks create money, Bretton Woods, British Empire, call centre, capital controls, carbon footprint, collective bargaining, corporate social responsibility, credit crunch, Credit Default Swap, crony capitalism, David Graeber, David Ricardo: comparative advantage, debt deflation, decarbonisation, declining real wages, deglobalization, deindustrialization, delayed gratification, demand response, don't be evil, Double Irish / Dutch Sandwich, en.wikipedia.org, Etonian, financial innovation, financial intermediation, Fractional reserve banking, full employment, Goldman Sachs: Vampire Squid, high net worth, income inequality, investor state dispute settlement, Isaac Newton, James Dyson, job automation, Julian Assange, labour market flexibility, laissez-faire capitalism, low skilled workers, Mark Zuckerberg, market fundamentalism, Martin Wolf, means of production, moral hazard, mortgage debt, neoliberal agenda, new economy, New Urbanism, Northern Rock, Occupy movement, offshore financial centre, oil shale / tar sands, patent troll, payday loans, Plutocrats, plutocrats, predatory finance, price stability, pushing on a string, quantitative easing, race to the bottom, rent-seeking, Ronald Reagan, shareholder value, short selling, sovereign wealth fund, Steve Jobs, The Nature of the Firm, The Spirit Level, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, transfer pricing, trickle-down economics, universal basic income, unpaid internship, upwardly mobile, Washington Consensus, Winter of Discontent, working poor, Yom Kippur War

Aren’t the rich wealth creators, job creators, entrepreneurs, investors – indeed, just the kind of people we need? Don’t entrepreneurs like Bill Gates deserve their wealth for having introduced products that benefit millions? Aren’t the rich entitled to spend what they have earned how they like? What right has anyone to say their consumption is excessive? Couldn’t the rich cut their carbon footprints by switching to low-carbon consumption? Wouldn’t the world miss their philanthropy and the ‘trickle-down effects’ of their spending? In fact, isn’t this book just an example of ‘the politics of envy’ – directed at those whom former UK Prime Minister Tony Blair used to call ‘the successful’? Shouldn’t we thank, rather than begrudge, these ‘high net worth individuals’? It’s the objections regarding the alleged role of the rich in wealth extraction, as opposed to wealth creation, that present the biggest challenge and occupy the bulk of this book, though I’ll attempt to answer other objections too.

Yes, the rich employ a few servants and provide demand for accountants, tax advisors and luxury services, but far fewer jobs result from this than would be case if their income were redistributed back to ordinary people with a much higher propensity to consume. The best way to get money to cascade down from the rich to the rest is to tax them – or stop them extracting it in the first place! As Ann Pettifor argues, any trickle-down effect is dwarfed by the reverse ‘hoovering up’ effect of rent and interest in directing money to the wealthy.144 So, to come back to the Tea Party slogan: jobs are created by those who control the means of production and finance, subject to the constraints of demand and costs. Those with little money don’t create jobs because they lack the means of production to employ anyone to work; where would they get the capital to do so?

 

pages: 251 words: 63,630

The End of Cheap China: Economic and Cultural Trends That Will Disrupt the World by Shaun Rein

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business climate, credit crunch, Deng Xiaoping, Donald Trump, facts on the ground, glass ceiling, high net worth, illegal immigration, income per capita, indoor plumbing, job-hopping, Maui Hawaii, price stability, quantitative easing, Silicon Valley, Skype, South China Sea, Steve Jobs, thinkpad, trade route, trickle-down economics, upwardly mobile, urban planning, women in the workforce, young professional

Private foundations also financially supported such people as my Harvard classmate Wang Dan, who was one of the student leaders during the Tiananmen protests in 1989. Wang Dan has continued to be one of China’s foremost critics. Backed by Taiwanese money with specific agendas, he will be unlikely to voice anything but opposition to China. This cooptation of the academic class and its students, which has a trickle-down effect that affects policies governing military exchanges and weapons sales, helps Taiwan advance its agenda. China, on the other hand, is poor at this and does not have a strong lobbying effort within the Western world. China needs to start funding more academic research and exchange. They should also promote the establishment of foundations using private Chinese money. Too much of China’s soft power has been government controlled and led.

 

pages: 225 words: 61,388

Dead Aid: Why Aid Is Not Working and How There Is a Better Way for Africa by Dambisa Moyo

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affirmative action, Asian financial crisis, Bretton Woods, colonial rule, correlation does not imply causation, credit crunch, diversification, diversified portfolio, en.wikipedia.org, European colonialism, failed state, financial innovation, financial intermediation, Hernando de Soto, income inequality, invisible hand, M-Pesa, market fundamentalism, Mexican peso crisis / tequila crisis, microcredit, moral hazard, Ponzi scheme, rent-seeking, Ronald Reagan, sovereign wealth fund, The Chicago School, trade liberalization, transaction costs, trickle-down economics, Washington Consensus, Yom Kippur War

Survey results are similar in Ethiopia, Ivory Coast and Mali.9 Indeed, not only are the benefits of China’s African presence acknowledged, but they are also being spread more widely. Traditionally China was narrowly focused on resource interests, benefiting only a few. However, as discussed earlier, in recent years China broadened its investment horizons (now encompassing other sectors) and people are benefiting from the trickle-down effect of its resource investments – employment, housing and better standards of living. For many Africans the benefits are all too real – there are now roads where there were no roads, and jobs where there were no jobs. Instead of staring at the destructive desert of aid they can, at last, see the fruits of China’s involvement, the latter clearly a factor in Africa’s posting a 5 per cent growth rate in recent years.

 

pages: 284 words: 92,387

The Democracy Project: A History, a Crisis, a Movement by David Graeber

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Bretton Woods, British Empire, corporate personhood, David Graeber, deindustrialization, dumpster diving, East Village, feminist movement, financial innovation, George Gilder, Lao Tzu, late fees, Occupy movement, payday loans, planetary scale, Plutocrats, plutocrats, Ralph Nader, reserve currency, Ronald Reagan, seigniorage, too big to fail, trickle-down economics, unpaid internship, We are the 99%, working poor

By the 1980s, things had gone so far that politicians were willing to openly admit, in public forums, that they saw economic research as a way of coming up with justification for whatever it is they already wanted people to believe. I still remember during Ronald Reagan’s administration being startled by exchanges like this one on TV: ADMINISTRATION OFFICIAL: Our main priority is to enact cuts in the capital gains tax to stimulate the economy. INTERVIEWER: But how would you respond to a host of recent economic studies that show this kind of “trickle-down” economics doesn’t really work? That it doesn’t stimulate further hiring on the part of the wealthy? OFFICIAL: Well, it’s true, the real reasons for the economic benefits of tax cuts remain to be fully understood. In other words, the discipline of economics does not exist to determine what is the best policy. We have already decided on the policy. Economists exist to come up with scientific-sounding reasons for us doing what we have already decided to do; in fact, that’s how they get paid.

 

pages: 391 words: 102,301

Zero-Sum Future: American Power in an Age of Anxiety by Gideon Rachman

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Asian financial crisis, bank run, battle of ideas, Berlin Wall, Big bang: deregulation of the City of London, Bonfire of the Vanities, borderless world, Bretton Woods, BRICs, capital controls, centre right, clean water, collapse of Lehman Brothers, colonial rule, currency manipulation / currency intervention, deindustrialization, Deng Xiaoping, Doha Development Round, energy security, failed state, Fall of the Berlin Wall, financial deregulation, Francis Fukuyama: the end of history, full employment, global reserve currency, greed is good, Hernando de Soto, illegal immigration, income inequality, invisible hand, Jeff Bezos, laissez-faire capitalism, market fundamentalism, Martin Wolf, Mexican peso crisis / tequila crisis, Mikhail Gorbachev, moral hazard, mutually assured destruction, Naomi Klein, offshore financial centre, open borders, open economy, Peace of Westphalia, peak oil, pension reform, Plutocrats, plutocrats, price stability, RAND corporation, reserve currency, rising living standards, road to serfdom, Ronald Reagan, shareholder value, Sinatra Doctrine, sovereign wealth fund, special economic zone, Steve Jobs, Stewart Brand, The Chicago School, The Great Moderation, The Myth of the Rational Market, Thomas Malthus, trickle-down economics, Washington Consensus, Winter of Discontent

The measure was hailed by his supporters as “the biggest tax cut in American history.”5 The Tax Reform Act of 1986 increased personal exemptions, thus ensuring that six million more poor Americans would pay no income tax at all. It also cut the marginal rate of tax for top earners further from 50 to 28 percent—bringing it down to less than half the level when Reagan took office. Corporate taxes were cut from 48 to 34 percent. Liberals complained that the poor were being made to pay for these cuts and that a welfare state was being replaced with “trickle-down economics.” Sean Wilentz, a historian of the period, laments that “important social programs for the needy and the underprivileged—public assistance, food stamps, school lunch and job training programs, Social Security disability payments—had been slashed.”6 Conservatives, however, still remember this assault on the welfare state as a high point of the Reagan era. In 2009, Christopher DeMuth, head of the American Enterprise Institute, a leading conservative think tank in Washington, identified the restraint of domestic spending as one of four key elements of Reaganism: the others were tax cuts, “stable money” (low inflation), and deregulation.7 Indeed, Reagan’s deregulation of price in the oil and gas industry on his first day in office was just the start.

 

pages: 319 words: 103,707

Against Everything: Essays by Mark Greif

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1960s counterculture, back-to-the-land, Bernie Madoff, citizen journalism, collateralized debt obligation, crack epidemic, Credit Default Swap, credit default swaps / collateralized debt obligations, deindustrialization, Desert Island Discs, Donald Trump, income inequality, informal economy, Ponzi scheme, postindustrial economy, Ronald Reagan, technoutopianism, telemarketer, trickle-down economics, upwardly mobile, white flight

Money inequality creates a single system that corrals every person and places him above or beneath another, in a single file stretching from hell to the moon. These so-called individualists will then be led, by the common standard of the dollar, to common interests, common desires, and little that’s individual at all. Some say the more the rich are rich, the better off everyone will be. But really the Dick Cheneys of this world are obese because they’re eating everybody else’s dinner. Trickle-down economics is an alimentary philosophy: the more the rich eat, the more crusts they stuff in their maws, the more they create for the benefit of all the rest of us underneath them. Even if it worked, one could not forget that what they pass on to us is predigested, already traveling through their stomachs and fattening them first, giving excess nutriment to the undeserving. Their monuments, too, which we do marvel at, are composed of waste.

 

Undoing the Demos: Neoliberalism's Stealth Revolution by Wendy Brown

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Affordable Care Act / Obamacare, bitcoin, Branko Milanovic, Capital in the Twenty-First Century by Thomas Piketty, collective bargaining, corporate governance, credit crunch, crowdsourcing, David Brooks, Food sovereignty, haute couture, immigration reform, income inequality, invisible hand, labor-force participation, late capitalism, means of production, new economy, obamacare, occupational segregation, Ronald Reagan, shareholder value, sharing economy, The Chicago School, the market place, The Wealth of Nations by Adam Smith, Thomas Malthus, too big to fail, trickle-down economics, Washington Consensus, Wolfgang Streeck, young professional

Thus, while neoliberalism formally promises to liberate the citizen from the state, from politics, and even from concern with the social, practically, it integrates both state and citizenship into serving the economy and morally fuses hyperbolic self-reliance with readiness to be sacrificed. 212  u n d o in g t h e d e m o s The “shared sacrifice” discourse of neoliberalism’s austerity epoch differs sharply from that accompanying the “trickle-down” economics of the 1980s. The Reagan-Thatcher era promised that wealth generated by the giants would benefit the small; today’s sacrificial citizen receives no such promise. Economic ends are delinked from the general welfare of the population but, in addition, as citizens are integrated into these ends via governance, they may be sacrificed to its needs, vicissitudes, and contingencies in a nation, just as they are in a firm.

 

Griftopia: Bubble Machines, Vampire Squids, and the Long Con That Is Breaking America by Matt Taibbi

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affirmative action, Affordable Care Act / Obamacare, Bernie Sanders, Bretton Woods, carried interest, clean water, collateralized debt obligation, collective bargaining, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, David Brooks, desegregation, diversification, diversified portfolio, Donald Trump, financial innovation, Goldman Sachs: Vampire Squid, Gordon Gekko, greed is good, illegal immigration, interest rate swap, laissez-faire capitalism, London Interbank Offered Rate, Long Term Capital Management, margin call, market bubble, medical malpractice, moral hazard, mortgage debt, obamacare, passive investing, Ponzi scheme, prediction markets, quantitative easing, reserve currency, Ronald Reagan, Sergey Aleynikov, short selling, sovereign wealth fund, too big to fail, trickle-down economics, Y2K, Yom Kippur War

The insurmountable hurdle for so-called populist movements is having the nerve to attack the rich instead of the poor. Even after the rich almost destroyed the entire global economy through their sheer unrestrained greed and stupidity, we can’t shake the peasant mentality that says we should go easy on them, because the best hope for our collective prosperity is in them creating wealth for us all. That’s the idea at the core of trickle-down economics and the basis for American economic policy for a generation. The entire premise—that the way society works is for the productive rich to feed the needy poor and that any attempt by the latter to punish the former for their excesses might inspire Atlas to shrug his way out of town and leave the rest of us on our own to starve—should be insulting to people so proud to call themselves the “water carriers.”

 

pages: 238 words: 73,824

Makers by Chris Anderson

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3D printing, Airbnb, Any sufficiently advanced technology is indistinguishable from magic, Apple II, autonomous vehicles, barriers to entry, Buckminster Fuller, Build a better mousetrap, business process, crowdsourcing, dark matter, David Ricardo: comparative advantage, death of newspapers, dematerialisation, Elon Musk, factory automation, Firefox, future of work, global supply chain, global village, industrial robot, interchangeable parts, Internet of things, inventory management, James Hargreaves, James Watt: steam engine, Jeff Bezos, job automation, Joseph Schumpeter, Kickstarter, Lean Startup, manufacturing employment, Mark Zuckerberg, means of production, Menlo Park, Network effects, profit maximization, race to the bottom, Richard Feynman, Richard Feynman, Ronald Coase, self-driving car, side project, Silicon Valley, Silicon Valley startup, Skype, slashdot, South of Market, San Francisco, spinning jenny, Startup school, stem cell, Steve Jobs, Steve Wozniak, Steven Levy, Stewart Brand, supply-chain management, The Nature of the Firm, The Wealth of Nations by Adam Smith, transaction costs, trickle-down economics, Whole Earth Catalog, X Prize, Y Combinator

Pisano and Shih, in their Harvard Business Review article on American competitiveness, called for a rebuilding of an “industrial commons”—the collective R&D, engineering, and manufacturing ability that can sustain innovation. Not just the ability to make stuff, but also the ability to invent it, the ability to make the parts that go into it, and the ability to train the generation who will do all that. Successful technological companies can do this. Their trickle-down effects are not measured in dry cleaners and local pizza franchises serving their workers’ families, but rather in the tools they sell that make other companies around them more powerful. In other words, they are not just creating new jobs, but creating new companies that create more jobs. Sparkfun, a very modern factory, is the hub of one such new industrial commons. The question is only how far this Maker Movement commons can spread.

 

pages: 224 words: 64,156

You Are Not a Gadget by Jaron Lanier

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1960s counterculture, accounting loophole / creative accounting, additive manufacturing, Albert Einstein, call centre, cloud computing, crowdsourcing, death of newspapers, digital Maoism, Douglas Hofstadter, Extropian, follow your passion, hive mind, Internet Archive, Jaron Lanier, jimmy wales, John Conway, John von Neumann, Kevin Kelly, Long Term Capital Management, Network effects, new economy, packet switching, PageRank, pattern recognition, Ponzi scheme, Ray Kurzweil, Richard Stallman, Silicon Valley, Silicon Valley startup, slashdot, social graph, stem cell, Steve Jobs, Stewart Brand, Ted Nelson, telemarketer, telepresence, The Wisdom of Crowds, trickle-down economics, Turing test, Vernor Vinge, Whole Earth Catalog

The people who are perhaps the most screwed by open culture are the middle classes of intellectual and cultural creation. The freelance studio session musician faces diminished prospects, for instance. Another example, outside of the world of music, is the stringer selling reports to newspapers from a war zone. These are both crucial contributors to culture and democracy. Each pays painful dues and devotes years to honing a craft. They used to live off the trickle-down effects of the old system, and, like the middle class at large, they are precious. They get nothing from the new system. This is astonishing to me. By now, a decade and a half into the web era, when iTunes has become the biggest music store, in a period when companies like Google are the beacons of Wall Street, shouldn’t there at least be a few thousand initial pioneers of a new kind of musical career who can survive in our utopia?

 

pages: 193 words: 63,618

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

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

On this basis, growth objectors challenge the concept of ‘development’ and its underlying paradigm, ‘developmentism’, on the basis in particular of the deconstruction work undertaken by Serge Latouche in his numerous publications. Serge Latouche (2004) argues that under the appearance of universalism, development is in fact a Western belief saturated with ethnocentrism. Synonymous with the accumulation of capital, it is ultimately based on ever higher economic growth and its alleged benefits (the trickle down effect). From a practical standpoint, it leads to the creation of new artificial needs, to a worsening of social and economic inequalities and to the destruction of the environment. According to Serge Latouche, as developmentism fell into disrepute due to its obvious contradictions, its partisans sought to rehabilitate it by covering it in ‘new clothing’, thus ushering in the era of ‘development with adjectives’: that is, ‘human’, ‘social’, ‘sustainable’, ‘self-centred’, ‘local’, ‘alternative’ development, etc.

 

pages: 303 words: 81,981

Busting Vegas: The MIT Whiz Kid Who Brought the Casinos to Their Knees by Ben Mezrich

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airport security, Donald Trump, Firefox, index card, trickle-down economics

Like most islands in the Caribbean, Aruba was a place that catered to wealthy, foreign tourists—while the majority of the island’s inhabitants were actually living well below the poverty level. Rich white men and women dined on lobster and margaritas, while the natives scraped by, hoping for a little bit of the old trickle-down. It didn’t help that the island was bolstered, primarily, by a casino economy. Aside from Vegas, the one glaring aberration to the form, “casino economies” usually worked out pretty good for the casinos, and not so good for the local economy. The trickle-down theory didn’t really apply to slot machines and blackjack felts. Semyon smiled inwardly as Victor gunned the Jeep’s engine, speeding their way toward the pastel town. At the very least, the MIT crew would be striking a little blow for the common man. If the drive from the airport had been lacking in postcard moments, the short boat ride to the hotel resort more than made up the difference. To Semyon’s surprise, the little motorized ferry had actually picked them up right in the middle of the lobby of the full-service resort.

 

pages: 273 words: 34,920

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

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

Reagan’s tax cuts did not lead to higher incomes, greater economic growth, increased employment nor increased savings. Therefore less tax was collected and, because government spending was not reduced accordingly, budget deficits increased with a tripling of the national debt.37 Reagan’s budget director, David Stockman, later told the Atlantic Monthly that the 1981 tax cut ‘was always a Trojan horse to bring down the top [tax] rate’ for the wealthy. Supply-side theory was just a reformulated version of ‘trickle down’ theory that if the rich are richer they will invest more and the economy will grow, 102 FREE MARKET MISSIONARIES and the extra wealth created will eventually ‘trickle down’ to the poor: ‘if one feeds the horse enough oats, some will pass through to the road for the sparrows’.38 However, the reality was that corporations did not spend their tax savings on jobcreating investments. On the contrary, they downsized in a major way throughout the 1980s and 1990s, despite having to pay very minimal taxes.

 

The Future of Money by Bernard Lietaer

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agricultural Revolution, banks create money, barriers to entry, Bretton Woods, clean water, complexity theory, dematerialisation, discounted cash flows, diversification, fiat currency, financial deregulation, financial innovation, floating exchange rates, full employment, George Gilder, German hyperinflation, global reserve currency, Golden Gate Park, Howard Rheingold, informal economy, invention of the telephone, invention of writing, Lao Tzu, Mahatma Gandhi, means of production, microcredit, money: store of value / unit of account / medium of exchange, Norbert Wiener, North Sea oil, offshore financial centre, pattern recognition, post-industrial society, price stability, reserve currency, Ronald Reagan, seigniorage, Silicon Valley, South Sea Bubble, the market place, the payments system, trade route, transaction costs, trickle-down economics, working poor

Here again, only eligible recipients are counted, which means these children still have to be 'in the system' enough to actually try to go to school. For instance, it is unlikely that any of Katherine's friends would be picked up by these statistics. Here too the graph illustrates really a minimum level of the problem at hand. The most striking aspect of these statistics is the dramatic increase of homeless children in the lowest age brackets (less than six years old). 'Trickle down theory' or 'hoping for better economic times' is clearly not addressing the problem. In parallel, the number of families getting federal housing help dropped from 400,000 in the 1970s to 40,000 in the Reagan years (mid 1980s) to zero after the National Housing Act was passed in September 1996. Having a full-time job at minimum wage does not provide someone a home anywhere in America. In 1996, the US Conference of Mayors found that nation-wide 19% of the homeless population were employed.

 

pages: 603 words: 182,781

Aerotropolis by John D. Kasarda, Greg Lindsay

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3D printing, air freight, airline deregulation, airport security, Akira Okazaki, Asian financial crisis, back-to-the-land, barriers to entry, Berlin Wall, big-box store, blood diamonds, borderless world, British Empire, call centre, carbon footprint, Clayton Christensen, cleantech, cognitive dissonance, conceptual framework, credit crunch, David Brooks, David Ricardo: comparative advantage, Deng Xiaoping, deskilling, edge city, Edward Glaeser, failed state, food miles, Ford paid five dollars a day, Frank Gehry, fudge factor, full employment, future of work, Geoffrey West, Santa Fe Institute, George Gilder, global supply chain, global village, gravity well, Haber-Bosch Process, Hernando de Soto, hive mind, if you build it, they will come, illegal immigration, inflight wifi, interchangeable parts, intermodal, invention of the telephone, inventory management, invisible hand, Jane Jacobs, Jeff Bezos, Kangaroo Route, knowledge worker, kremlinology, labour mobility, Marshall McLuhan, Masdar, McMansion, megacity, Menlo Park, microcredit, Network effects, New Economic Geography, new economy, New Urbanism, oil shale / tar sands, oil shock, peak oil, Peter Thiel, pets.com, pink-collar, pre–internet, RFID, Richard Florida, Ronald Coase, Ronald Reagan, savings glut, Seaside, Florida, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, Skype, smart cities, smart grid, South China Sea, South Sea Bubble, sovereign wealth fund, special economic zone, spice trade, spinning jenny, stem cell, Steve Jobs, supply-chain management, sustainable-tourism, telepresence, the built environment, The Chicago School, The Death and Life of Great American Cities, The Nature of the Firm, thinkpad, Thomas L Friedman, Thomas Malthus, Tony Hsieh, trade route, transcontinental railway, transit-oriented development, traveling salesman, trickle-down economics, upwardly mobile, urban planning, urban renewal, urban sprawl, walkable city, white flight, Yogi Berra

Each leg carries a mix of diplomats, businessmen, and tourists, but the suits are the ones Gordon’s after. They’re worth as much as $250 million a year to the greater D.C. economy, according to research conducted at George Mason University. Just this one route will create 1,760 new jobs, with a median salary of $81,000, or about $140 million in wages. The rest will come when they spread that wealth around, generating another $100 million in trickle-down effects. That will stem from Chinese companies on the prowl for the programmers and consultants who can bring them up to speed in the Instant Age. “China is a developing nation that is experiencing very rapid growth and is an importer of information and high technology products,” the George Mason report noted. “Workers in this sector are heavy users of air transportation making on average 60% more trips than workers in traditional industries.”

For this reason, “countries should view air routes as highways in the sky,” he wrote, a “public good whose capacity is limited only by the number of routes and the seats or tonnage traveling on them.” A simulation sponsored by Boeing went further, asking what would happen if the skies were to open on some of the most lucrative off-limits routes, China’s among them. The results were unequivocal: traffic would soar 63 percent, and the trickle-down effects would create twenty-four million jobs in tourism and trade. They would add $490 billion to the global economy—the equivalent of dropping another Thailand on the map. If Japan needs another stimulus, this could be it. China already treats its airlines as a public good, to a fault. Deng’s reforms somehow missed aviation, as it wasn’t until 2005 that China’s first privately owned airline, Okay Airways, started flying.

 

pages: 602 words: 120,848

Winner-Take-All Politics: How Washington Made the Rich Richer-And Turned Its Back on the Middle Class by Paul Pierson, Jacob S. Hacker

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accounting loophole / creative accounting, affirmative action, asset allocation, barriers to entry, Bonfire of the Vanities, business climate, carried interest, Cass Sunstein, clean water, collective bargaining, corporate governance, Credit Default Swap, David Brooks, desegregation, employer provided health coverage, financial deregulation, financial innovation, financial intermediation, full employment, Home mortgage interest deduction, Howard Zinn, income inequality, invisible hand, knowledge economy, laissez-faire capitalism, Martin Wolf, medical bankruptcy, moral hazard, Nate Silver, new economy, night-watchman state, offshore financial centre, oil shock, Ralph Nader, Ronald Reagan, shareholder value, Silicon Valley, The Wealth of Nations by Adam Smith, too big to fail, trickle-down economics, union organizing, very high income, War on Poverty, winner-take-all economy, women in the workforce

Indeed, in this alternative scenario, there is reason to suspect that the dinghies are staying put in part because the yachts are rising—that the rich are closing the locks behind them to capture resources that would otherwise have enhanced the living standards of everyone else. So which of these scenarios is correct—trickle-down or trickle-up? The evidence is not completely consistent, and there is room for debate at the margins. But it’s increasingly clear that trickle-down economics is not working as its proponents promise. Trickle-up economics, by contrast, seems to be working all too well. Bringing In Government Taxes and Benefits To see trickle-up in action, we need a source of evidence slightly different from that provided by Piketty and Saez. As mentioned, Piketty and Saez look at tax records, so the family incomes they report basically add up the private sources of income that people list on their tax forms: wages, salaries, investment income, gifts, and so on.

 

pages: 493 words: 139,845

Women Leaders at Work: Untold Tales of Women Achieving Their Ambitions by Elizabeth Ghaffari

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Albert Einstein, AltaVista, business process, cloud computing, Columbine, corporate governance, corporate social responsibility, dark matter, family office, Fellow of the Royal Society, financial independence, follow your passion, glass ceiling, Grace Hopper, high net worth, knowledge worker, Long Term Capital Management, performance metric, pink-collar, profit maximization, profit motive, recommendation engine, Ronald Reagan, shareholder value, Silicon Valley, Silicon Valley startup, Steve Ballmer, Steve Jobs, thinkpad, trickle-down economics, urban planning, women in the workforce, young professional

In his class, I was able to relate back to my vision of looking at the power of the corporation in the world—how in China, Coca-Cola could get through the entire continent so quickly and efficiently. I ended up studying under Stuart for quite a while. I also studied the AmeriCorps program, which President Clinton had just implemented. Students could learn economics either in the classroom or by working in an inner-city system and get credit for either experience. You could learn about trickle-down economics in the classroom or you could go live and work in the inner city for a semester and realize that the economic cycle doesn’t really reach that far down to inner-city folks at the bottom of the income ladder. I was interested in whether AmeriCorps might be a more effective way of educating kids than just lecturing them in the classroom. I considered writing my dissertation on it, but it was such a rocky political climate for Clinton that I thought AmeriCorps might die before I finished my dissertation.

 

pages: 481 words: 120,693

Plutocrats: The Rise of the New Global Super-Rich and the Fall of Everyone Else by Chrystia Freeland

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Albert Einstein, algorithmic trading, banking crisis, barriers to entry, Basel III, battle of ideas, Bernie Madoff, Big bang: deregulation of the City of London, Black Swan, Branko Milanovic, Bretton Woods, BRICs, business climate, call centre, carried interest, Cass Sunstein, Clayton Christensen, collapse of Lehman Brothers, conceptual framework, corporate governance, credit crunch, Credit Default Swap, crony capitalism, Deng Xiaoping, don't be evil, double helix, energy security, estate planning, experimental subject, financial deregulation, financial innovation, Flash crash, Frank Gehry, Gini coefficient, global village, Goldman Sachs: Vampire Squid, Gordon Gekko, Guggenheim Bilbao, haute couture, high net worth, income inequality, invention of the steam engine, job automation, joint-stock company, Joseph Schumpeter, knowledge economy, knowledge worker, linear programming, London Whale, low skilled workers, manufacturing employment, Mark Zuckerberg, Martin Wolf, Mikhail Gorbachev, Moneyball by Michael Lewis explains big data, NetJets, new economy, Occupy movement, open economy, Peter Thiel, place-making, Plutocrats, plutocrats, Plutonomy: Buying Luxury, Explaining Global Imbalances, postindustrial economy, Potemkin village, profit motive, purchasing power parity, race to the bottom, rent-seeking, Rod Stewart played at Stephen Schwarzman birthday party, Ronald Reagan, self-driving car, short selling, Silicon Valley, Silicon Valley startup, Simon Kuznets, Solar eclipse in 1919, sovereign wealth fund, stem cell, Steve Jobs, The Spirit Level, The Wealth of Nations by Adam Smith, Tony Hsieh, too big to fail, trade route, trickle-down economics, Tyler Cowen: Great Stagnation, wage slave, Washington Consensus, winner-take-all economy

The great postwar expansion was also the period of what economists have dubbed the Great Compression, when inequality shrank and most Americans came to think of themselves as middle class. This was the era when, in the words of Harvard economist Larry Katz, “Americans grew together.” That seemed to be the natural shape of industrial capitalism. Even the Reagan Revolution rode on the coattails of this paradigm—trickle-down economics, after all, emphasizes the trickle. But in the late 1970s, things started to change. The income of the middle class started to stagnate and those at the top began to pull away from everyone else. This shift was most pronounced in the United States, but by the twenty-first century, surging income inequality had become a worldwide phenomenon, visible in most of the developed Western economies as well as in the rising emerging markets

 

pages: 434 words: 150,773

When the Iron Lady Ruled Britain by Robert Chesshyre

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Berlin Wall, Big bang: deregulation of the City of London, British Empire, deskilling, Etonian, Fall of the Berlin Wall, financial deregulation, full employment, housing crisis, manufacturing employment, means of production, North Sea oil, oil rush, Plutocrats, plutocrats, Ronald Reagan, school choice, Silicon Valley, the market place, trickle-down economics, union organizing, young professional

Such greed, however, had a philosophical/political underpinning in Reaganism and Thatcherism, dignified for public consumption as ‘supply-side economics’. By making vast sums, the rich generated economic activity, which eventually helped everyone, therefore one was performing a public service by becoming (or, in most British cases, already being) very rich and was quite entitled to feel good about it. Those less enamoured with the theory call it ‘trickle-down’ economics, and are frequently cynical about how far the trickle reaches. Supply-siders consider that ‘trickle-downers’ suffer from a further condition – ‘the politics of envy’. The consequence of the new philosophy appeared to be the unabashed spending of money, and rewards for certain classes of people that so distorted the value system that they threatened social stability: while young nurses lived on ‘peanuts’, the City of London’s ‘Big Bang’ had propelled a not particularly productive class of young person towards six-figure salaries; while a civil engineer might earn £15,000 a year, a foreign-currency dealer, without any formal qualifications, could earn ten times that much.

 

pages: 386 words: 122,595

Naked Economics: Undressing the Dismal Science (Fully Revised and Updated) by Charles Wheelan

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affirmative action, Albert Einstein, Andrei Shleifer, barriers to entry, Berlin Wall, Bernie Madoff, Bretton Woods, capital controls, Cass Sunstein, central bank independence, clean water, collapse of Lehman Brothers, congestion charging, Credit Default Swap, crony capitalism, currency manipulation / currency intervention, Daniel Kahneman / Amos Tversky, David Brooks, demographic transition, diversified portfolio, Doha Development Round, Exxon Valdez, financial innovation, floating exchange rates, George Akerlof, Gini coefficient, Gordon Gekko, greed is good, happiness index / gross national happiness, Hernando de Soto, income inequality, index fund, interest rate swap, invisible hand, job automation, Joseph Schumpeter, Kenneth Rogoff, libertarian paternalism, low skilled workers, lump of labour, Malacca Straits, market bubble, microcredit, money: store of value / unit of account / medium of exchange, Network effects, new economy, open economy, presumed consent, price discrimination, price stability, principal–agent problem, profit maximization, profit motive, purchasing power parity, race to the bottom, RAND corporation, random walk, rent control, Richard Thaler, rising living standards, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, school vouchers, Silicon Valley, Silicon Valley startup, South China Sea, Steve Jobs, The Market for Lemons, The Wealth of Nations by Adam Smith, Thomas L Friedman, Thomas Malthus, transaction costs, transcontinental railway, trickle-down economics, urban sprawl, Washington Consensus, Yogi Berra, young professional

Never mind that one child in three dies before the age of five and life expectancy is a shocking forty-two years.7 These are not countries in which the market economy has failed; they are countries in which the government has failed to develop and sustain the institutions necessary to support a market economy. A report issued by the United Nations Development Program placed much of the blame for world poverty on bad government. Without good governance, reliance on trickle-down economic development and a host of other strategies will not work, the report concluded.8 The reality is that nobody ever likes the umpire, but you can’t play the World Series without one. So what are the rules for a functional market economy? First, the government defines and protects property rights. You own things: your home, your car, your dog, your golf clubs. Within reasonable limits, you can do with that property as you wish.

 

pages: 311 words: 130,761

Framing Class: Media Representations of Wealth and Poverty in America by Diana Elizabeth Kendall

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Bernie Madoff, blue-collar work, Bonfire of the Vanities, call centre, David Brooks, declining real wages, Donald Trump, employer provided health coverage, ending welfare as we know it, framing effect, Georg Cantor, Gordon Gekko, greed is good, haute couture, housing crisis, illegal immigration, income inequality, lump of labour, mortgage tax deduction, new economy, payday loans, Ponzi scheme, Ray Oldenburg, Richard Florida, Ronald Reagan, Saturday Night Live, telemarketer, The Great Good Place, Thorstein Veblen, trickle-down economics, union organizing, upwardly mobile, urban planning, working poor

To show that many middle-class people believed the tax cuts left them out in the cold, the reporter included an interview with Robert and Bee Moorhead of Austin, Texas. The article informed readers that the Moorheads were both employed, with a combined income of about $88,000, but still could not accumulate any substantial savings. Mr. Moorhead showed 9781442202238.print.indb 195 2/10/11 10:47 AM 196 Chapter 6 typical middle-class disbelief regarding the proposed change: “They’re trying to sell this once again as trickle-down economics. I have my doubts.”100 A photo of the Moorhead family sitting on their porch, looking how most people expect members of the middle class to look, facilitated the story’s framing. The general framing of the article focused on the greater benefit wealthy families would receive, as compared with middle-class families like the Moorheads, even though the journalist acknowledged that “President Bush’s mammoth tax plan would give something to almost everybody.”101 Another article, “Caught in the Squeeze,” stated, “Only the rich have reason to cheer” about the 2003 tax cut President Bush signed into law,102 while another bore the headline “Tax Analysis Says the Rich Still Win.”103 Media also used visual framing in the form of political cartoons to inform audiences that the rich were the primary beneficiaries of the Bush tax laws.

 

pages: 519 words: 136,708

Vertical: The City From Satellites to Bunkers by Stephen Graham

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1960s counterculture, Berlin Wall, Buckminster Fuller, Chelsea Manning, Commodity Super-Cycle, deindustrialization, Edward Glaeser, Edward Snowden, energy security, Frank Gehry, ghettoisation, Google Earth, high net worth, housing crisis, Howard Zinn, illegal immigration, Indoor air pollution, Jane Jacobs, late capitalism, means of production, megacity, megastructure, mutually assured destruction, new economy, New Urbanism, nuclear winter, oil shale / tar sands, planetary scale, Plutocrats, plutocrats, post-industrial society, Project Plowshare, rent control, Richard Florida, Ronald Reagan, Skype, South China Sea, the built environment, The Death and Life of Great American Cities, trickle-down economics, urban decay, urban planning, urban renewal, urban sprawl, white flight, WikiLeaks

The implication is that housing and planning regulations and subsidies – rent controls, social and collective housing provisions, height restrictions – need to be cut away in the interests of an entirely privatised housing regime unleashing the vertical growth processes that they supposedly constrain. In many cities, the result of this confluence of ideas concerning densification, ‘smart’ growth, neoliberal vertical housing and ‘global’ city planning – despite Glaeser’s rhetoric – has been profoundly regressive socially. In many ways, Glaeser’s arguments are merely the latest in a long line of ‘trickle-down’ economics that have been handed out by a stream of neoliberal urban theorists over the past four decades. Such theorists continually proffer the capitalist utopia of unleashed and unregulated global capital operating to the alleged benefit of all. In the absence of nonmarket mechanisms to create and allocate mass urban housing as an affordable living space for those who need it, however, all that remains when city planners allow tall housing towers to rise above their streetscapes are global engines of unregulated financial speculation.

 

The America That Reagan Built by J. David Woodard

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affirmative action, anti-communist, Ayatollah Khomeini, Berlin Wall, Bonfire of the Vanities, colonial rule, Columbine, cuban missile crisis, Deng Xiaoping, friendly fire, glass ceiling, global village, Gordon Gekko, gun show loophole, income inequality, invisible hand, Jeff Bezos, laissez-faire capitalism, late capitalism, Mikhail Gorbachev, mutually assured destruction, new economy, postindustrial economy, Ralph Nader, Ronald Reagan, Ronald Reagan: Tear down this wall, Silicon Valley, South China Sea, stem cell, Ted Kaczynski, The Predators' Ball, trickle-down economics, women in the workforce, Y2K, young professional

Aside from an increase in the top income-tax rate, money for the increase came from taxes on business, primarily a rise in the corporate tax rate and new limits on deductions for entertainment expenses. The plan included more Medicare payroll taxes on top earners, an expansion of the Earned Income Tax credit for low-income workers, a gas-tax increase, and an increase in the minimum tax all workers must pay. Democrats declared that they had reversed twelve years of Republican ‘‘trickle-down’’ economics and would turn the largest deficit in American 152 THE AMERICA THAT REAGAN BUILT history into the largest budget surplus in history. Republicans countered that the administration plan was a flea on the raging bull of the 1990s economy; it did not cause interest rates to fall, nor did it reduce the deficit or expand the economy. The marvelous economic boom of the decade came as a result of corporate restructuring and downsizing in the 1980s and early 1990s and the fantastic rise in new technology, especially computer and communication innovations.

 

pages: 515 words: 132,295

Makers and Takers: The Rise of Finance and the Fall of American Business by Rana Foroohar

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3D printing, accounting loophole / creative accounting, additive manufacturing, Airbnb, algorithmic trading, Asian financial crisis, asset allocation, bank run, Basel III, bonus culture, Bretton Woods, British Empire, call centre, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, carried interest, centralized clearinghouse, clean water, collateralized debt obligation, corporate governance, corporate social responsibility, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, crowdsourcing, David Graeber, deskilling, Detroit bankruptcy, diversification, Double Irish / Dutch Sandwich, Emanuel Derman, Eugene Fama: efficient market hypothesis, financial deregulation, financial intermediation, Frederick Winslow Taylor, George Akerlof, gig economy, Goldman Sachs: Vampire Squid, Gordon Gekko, greed is good, High speed trading, Home mortgage interest deduction, housing crisis, Howard Rheingold, Hyman Minsky, income inequality, index fund, interest rate derivative, interest rate swap, Internet of things, invisible hand, joint-stock company, joint-stock limited liability company, Kenneth Rogoff, knowledge economy, labor-force participation, labour mobility, London Whale, Long Term Capital Management, manufacturing employment, market design, Martin Wolf, moral hazard, mortgage debt, mortgage tax deduction, new economy, non-tariff barriers, offshore financial centre, oil shock, passive investing, pensions crisis, Ponzi scheme, principal–agent problem, quantitative easing, quantitative trading / quantitative finance, race to the bottom, Ralph Nader, Rana Plaza, RAND corporation, random walk, rent control, Robert Shiller, Robert Shiller, Ronald Reagan, Second Machine Age, shareholder value, sharing economy, Silicon Valley, Silicon Valley startup, Snapchat, sovereign wealth fund, Steve Jobs, technology bubble, The Chicago School, The Spirit Level, The Wealth of Nations by Adam Smith, Tim Cook: Apple, Tobin tax, too big to fail, trickle-down economics, Tyler Cowen: Great Stagnation, Vanguard fund

He was well on his way to becoming the first commercial banker since the Great Depression to earn more than $1 million in one year.44 He had also made powerful friends in Washington, as an adviser to the Kennedy and Nixon administrations. (A few years later, under President Ronald Reagan, Wriston would sit on the president’s Economic Policy Advisory Board and help craft some of his infamous “trickle-down” economic policies.) The success of the CD and other Wriston-led innovations was more that just a windfall for First National City, which changed its name to Citibank in 1976. It also set off an industry-wide chain reaction, as other financial institutions began searching for more and more high-yield products. Smaller thrift banks with fewer rate restrictions invented the mutual fund. Bankers at Salomon Brothers, which would later be acquired by Citi, started experimenting with packaging mortgages into securities.

 

pages: 537 words: 158,544

Second World: Empires and Influence in the New Global Order by Parag Khanna

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Admiral Zheng, affirmative action, anti-communist, Asian financial crisis, Bartolomé de las Casas, Branko Milanovic, British Empire, call centre, capital controls, central bank independence, cognitive dissonance, colonial rule, complexity theory, crony capitalism, Deng Xiaoping, Dissolution of the Soviet Union, Donald Trump, Edward Glaeser, energy security, European colonialism, facts on the ground, failed state, flex fuel, Francis Fukuyama: the end of history, friendly fire, Gini coefficient, global reserve currency, global supply chain, haute couture, Hernando de Soto, illegal immigration, income inequality, informal economy, invisible hand, Islamic Golden Age, Khyber Pass, knowledge economy, land reform, low skilled workers, means of production, megacity, Monroe Doctrine, oil shale / tar sands, oil shock, open borders, open economy, Pax Mongolica, pirate software, Plutonomy: Buying Luxury, Explaining Global Imbalances, Potemkin village, price stability, race to the bottom, RAND corporation, reserve currency, rising living standards, Ronald Reagan, Silicon Valley, Skype, South China Sea, special economic zone, stem cell, Stephen Hawking, Thomas L Friedman, trade route, trickle-down economics, uranium enrichment, urban renewal, Washington Consensus, women in the workforce

The result was the “lost decade” of the 1980s, in which Latin America became, in the words of former Venezuelan trade minister Moisés Naím, “Atlantis—the lost continent.”10 Crisis followed crisis. To make matters worse, the IMF responded to the United States “like thunder to lightning,” forcing Latin American regimes to tighten their belts as prescribed by the “Washington Consensus” orthodoxy of rapid liberalization, an international variant of trickle-down economics.11 Over a century after the Pan-American Union effort, the heated debate over how to meet Latin Americans’ rising expectations despite unequal American trade continues in the form of a proposed Free Trade Area of the Americas (FTAA) stretching from Alaska to Tierra del Fuego. But China’s commercial presence in the Western Hemisphere is also deepening; thus, so is its strategic presence.

 

pages: 286 words: 87,870

The Pirates of Somalia: Inside Their Hidden World by Jay Bahadur

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collective bargaining, failed state, private military company, trickle-down economics, UNCLOS, UNCLOS, urban planning

The view that outside women were somehow tainted—which seemed to be based solely on raw clan prejudice—was shared by many of Garowe’s leading citizens; at the beginning of Farole’s anti-piracy campaign, one cleric strongly warned his Friday congregation against the spread of HIV/AIDS in the community, as “prostitutes from everywhere” had been drawn to Puntland by the pirates’ money.4 Piracy, nonetheless, represented a massive injection of foreign exchange into the Puntland economy, and it was hard to imagine that there had been no positive trickle-down effects. Fod’Adde shook his head vigorously. “That money is haram [religiously forbidden],” he said. “As Muslims, we believe that money earned in that manner can never do any good … not for the economy or anything else. The moment they get it, they waste it on women, drugs, khat … haram money never stays in one’s pocket for long.” Nor could the new houses springing up atop the carcass of the former airport, providing a boost to Garowe’s already booming construction industry, convince him that pirate dollars would bring any benefits.

 

pages: 369 words: 94,588

The Enigma of Capital: And the Crises of Capitalism by David Harvey

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accounting loophole / creative accounting, anti-communist, Asian financial crisis, bank run, banking crisis, Bernie Madoff, Big bang: deregulation of the City of London, Bretton Woods, British Empire, business climate, call centre, capital controls, credit crunch, Credit Default Swap, David Ricardo: comparative advantage, deindustrialization, Deng Xiaoping, deskilling, equal pay for equal work, European colonialism, failed state, financial innovation, Frank Gehry, full employment, global reserve currency, Google Earth, Guggenheim Bilbao, illegal immigration, indoor plumbing, interest rate swap, invention of the steam engine, Jane Jacobs, joint-stock company, Joseph Schumpeter, Just-in-time delivery, land reform, liquidity trap, Long Term Capital Management, market bubble, means of production, megacity, microcredit, moral hazard, mortgage debt, new economy, New Urbanism, Northern Rock, oil shale / tar sands, peak oil, place-making, Ponzi scheme, precariat, reserve currency, Ronald Reagan, sharing economy, Silicon Valley, special drawing rights, special economic zone, statistical arbitrage, structural adjustment programs, the built environment, the market place, The Wealth of Nations by Adam Smith, Thomas L Friedman, Thomas Malthus, Thorstein Veblen, too big to fail, trickle-down economics, urban renewal, urban sprawl, white flight, women in the workforce

The third condition is that the credit moneys received will be spent on the purchase of the extra wage goods and means of production that have already been produced. The general political argument for supporting the concentration of wealth in the upper classes is that they can and do use their wealth to reinvest and so create jobs, new products, and hence new wealth that can at the end of the day potentially benefit everyone (through trickle-down effects and the like) and so create more demand. What this story line misses is that capitalists, as we earlier saw, have a choice as to what they reinvest in: they can reinvest in the expansion of production or they can use their wealth to buy up assets, such as stocks and shares, property, art objects or shares in some speculative enterprise such as a private equity company, a hedge fund or some other financial instrument from which they can realise capital gains.

 

pages: 382 words: 92,138

The Entrepreneurial State: Debunking Public vs. Private Sector Myths by Mariana Mazzucato

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Apple II, banking crisis, barriers to entry, Bretton Woods, California gold rush, call centre, carbon footprint, Carmen Reinhart, cleantech, computer age, credit crunch, David Ricardo: comparative advantage, demand response, deskilling, energy security, energy transition, eurozone crisis, everywhere but in the productivity statistics, Financial Instability Hypothesis, full employment, Growth in a Time of Debt, Hyman Minsky, incomplete markets, information retrieval, invisible hand, Joseph Schumpeter, Kenneth Rogoff, knowledge economy, knowledge worker, natural language processing, new economy, offshore financial centre, popular electronics, profit maximization, Ralph Nader, renewable energy credits, rent-seeking, ride hailing / ride sharing, risk tolerance, shareholder value, Silicon Valley, Silicon Valley ideology, smart grid, Steve Jobs, Steve Wozniak, The Wealth of Nations by Adam Smith, Tim Cook: Apple, too big to fail, total factor productivity, trickle-down economics, Washington Consensus, William Shockley: the traitorous eight

Over the last decade or so, policymakers searching for proxies for economic growth have looked to things they can measure such as R&D spending, patents, venture capital investment, and the number of small firms that are assumed to be important for growth. I have attempted to demystify these assumptions and now turn to the largest myth of all: the limited role for government in producing entrepreneurship, innovation and growth. 1 The insensitivity of investment to taxes is the reason that the 1980s-style ‘supply-side’ economics had little effect on investment and hence GDP, and a large effect on income distribution (no ‘trickle-down’ effect). 2 This refers to Keynes’s provocative statement that: ‘If the Treasury were to fill old bottles with bank-notes, bury them at suitable depths in disused coal-mines which are then filled up to the surface with town rubbish, and leave it to private enterprise on well-tried principles of laissez-faire to dig the notes up again (the right to do so being obtained, of course, by tendering for leases of the note-bearing territory), there need be no more unemployment and, with the help of repercussions, the real income of the community, and its capital wealth, would probably become a good deal greater than it actually is’ (1936, 129).

 

pages: 440 words: 108,137

The Meritocracy Myth by Stephen J. McNamee

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affirmative action, Affordable Care Act / Obamacare, Bernie Madoff, British Empire, collective bargaining, computer age, conceptual framework, corporate governance, deindustrialization, delayed gratification, demographic transition, desegregation, deskilling, equal pay for equal work, estate planning, failed state, fixed income, gender pay gap, Gini coefficient, glass ceiling, helicopter parent, income inequality, informal economy, invisible hand, job automation, joint-stock company, labor-force participation, low-wage service sector, marginal employment, Mark Zuckerberg, mortgage debt, mortgage tax deduction, new economy, New Urbanism, obamacare, occupational segregation, pink-collar, Plutocrats, plutocrats, Ponzi scheme, post-industrial society, prediction markets, profit motive, race to the bottom, random walk, school choice, Scientific racism, Steve Jobs, The Bell Curve by Richard Herrnstein and Charles Murray, The Spirit Level, The Wealth of Nations by Adam Smith, too big to fail, trickle-down economics, upwardly mobile, We are the 99%, white flight, young professional

Tax on wealth could also be based on its possession (assets tax), its use (consumption tax), or its exchange (transfer tax) (cf. Wolff 2002). Those who oppose such taxes often label them “confiscatory” and argue that they discourage work, savings, and investment. Supply-side advocates argue that taxing wealth in any form discourages investments that would otherwise create more jobs and a “trickle-down” effect of wealth creation. They contend that excessive taxation of wealth encourages the wealthy to flee to other countries that tax wealth less, thereby depriving American society of investment and spending that the wealthy would otherwise provide. Supply-siders argue that the sum of individual decisions with regard to the stewardship of resources is collectively more productive, efficient, and efficacious than collective decisions that emerge from the political process.

 

pages: 261 words: 86,905

How to Speak Money: What the Money People Say--And What It Really Means by John Lanchester

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asset allocation, Basel III, Bernie Madoff, Big bang: deregulation of the City of London, bitcoin, Black Swan, blood diamonds, Bretton Woods, BRICs, Capital in the Twenty-First Century by Thomas Piketty, Celtic Tiger, central bank independence, collapse of Lehman Brothers, collective bargaining, credit crunch, Credit Default Swap, crony capitalism, Dava Sobel, David Graeber, disintermediation, double entry bookkeeping, en.wikipedia.org, estate planning, financial innovation, Flash crash, forward guidance, Gini coefficient, global reserve currency, high net worth, High speed trading, hindsight bias, income inequality, inflation targeting, interest rate swap, Isaac Newton, Jaron Lanier, joint-stock company, joint-stock limited liability company, Kodak vs Instagram, liquidity trap, London Interbank Offered Rate, London Whale, loss aversion, margin call, McJob, means of production, microcredit, money: store of value / unit of account / medium of exchange, moral hazard, neoliberal agenda, New Urbanism, Nick Leeson, Nikolai Kondratiev, Nixon shock, Northern Rock, offshore financial centre, oil shock, open economy, paradox of thrift, Plutocrats, plutocrats, Ponzi scheme, purchasing power parity, pushing on a string, quantitative easing, random walk, rent-seeking, reserve currency, Richard Feynman, Richard Feynman, road to serfdom, Ronald Reagan, Satoshi Nakamoto, security theater, shareholder value, Silicon Valley, six sigma, South Sea Bubble, sovereign wealth fund, Steve Jobs, The Chicago School, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, trickle-down economics, Washington Consensus, working poor, yield curve

Policies that target the supply side make it easier to make things and make money, and this very often involves a lowering of taxes. For this reason, “supply-side” is code for “rich people”; thus “supply-side economics” in practice means “rich-people economics,” because the policies involved—lowering taxes and cutting regulation—are always popular with the rich. One of the ideas behind supply-side economics is the “trickle-down effect,” in which the rich get tax breaks and spend money on services provided by people with less money, who then spend money on services provided by people with even less money, and so on, as the money “trickles down” through the economy and everyone benefits. If that was going to work, you’d think that it would have kicked in by now. surplus theory of value Karl Marx’s answer to the question of where value comes from in the first place.

 

When the Money Runs Out: The End of Western Affluence by Stephen D. King

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Albert Einstein, Asian financial crisis, asset-backed security, banking crisis, Basel III, Berlin Wall, Bernie Madoff, British Empire, capital controls, central bank independence, collapse of Lehman Brothers, collateralized debt obligation, congestion charging, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, cross-subsidies, debt deflation, Deng Xiaoping, Diane Coyle, endowment effect, eurozone crisis, Fall of the Berlin Wall, financial innovation, financial repression, floating exchange rates, full employment, George Akerlof, German hyperinflation, Hyman Minsky, income inequality, income per capita, inflation targeting, invisible hand, John Maynard Keynes: Economic Possibilities for our Grandchildren, joint-stock company, liquidationism / Banker’s doctrine / the Treasury view, liquidity trap, London Interbank Offered Rate, loss aversion, market clearing, moral hazard, mortgage debt, new economy, New Urbanism, Nick Leeson, Northern Rock, Occupy movement, oil shale / tar sands, oil shock, price mechanism, price stability, quantitative easing, railway mania, rent-seeking, reserve currency, rising living standards, South Sea Bubble, sovereign wealth fund, technology bubble, The Market for Lemons, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, Tobin tax, too big to fail, trade route, trickle-down economics, Washington Consensus, women in the workforce, working-age population

Heading for bankruptcy, what can they do to entice foreign money to their shores? If government bonds are no longer to be treated with confidence, other options will come to the fore. Modern-­day Vanderbilts – hailing from China, Russia and Saudi Arabia rather than the US – will buy the best properties in the most cosmopolitan parts of the Western world, forcing up London and Manhattan house prices in particular and, via a trickle-­down effect, making it near enough impossible for marginal first-­time buyers to gain a foot on the property ladder: major international cities will become the ghettos of the wealthy. Companies, and their bespoke technologies, will slowly fall under foreign ownership, turning the US and the UK into nations of worker bees where the profits of their endeavours head overseas. And, with uncertainty about the implications of continuous money printing, commodity prices will rise even as Western currencies fall in value, reducing real incomes.

 

pages: 443 words: 112,800

The Third Industrial Revolution: How Lateral Power Is Transforming Energy, the Economy, and the World by Jeremy Rifkin

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3D printing, additive manufacturing, Albert Einstein, barriers to entry, borderless world, carbon footprint, centre right, collaborative consumption, collaborative economy, Community Supported Agriculture, corporate governance, decarbonisation, distributed generation, en.wikipedia.org, energy security, energy transition, global supply chain, hydrogen economy, income inequality, informal economy, invisible hand, Isaac Newton, job automation, knowledge economy, manufacturing employment, marginal employment, Martin Wolf, Masdar, megacity, Mikhail Gorbachev, new economy, oil shale / tar sands, oil shock, open borders, peak oil, Ponzi scheme, post-oil, purchasing power parity, Ray Kurzweil, Ronald Reagan, Silicon Valley, Simon Kuznets, Skype, smart grid, smart meter, Spread Networks laid a new fibre optics cable between New York and Chicago, supply-chain management, the market place, The Wealth of Nations by Adam Smith, Thomas Malthus, too big to fail, transaction costs, trickle-down economics, urban planning, urban renewal, Yom Kippur War, Zipcar

Even more startling, between 1980 and 2005, over 80 percent of the increase in income in the United States went into the pockets of the wealthiest 1 percent of the population.16By 2007, the wealthiest 1 percent of American earners accounted for 23.5 percent of the nation’s pretax income, up from 9 percent in 1976. Meanwhile, during the same period, the median income for non-elderly American households declined and the percentage of people living in poverty rose.17 Perhaps the most apt description of the top-down organization of economic life that characterized the First and Second Industrial Revolutions is the often-heard “trickle-down theory”—the idea that when those atop the fossil fuel–based industrial pyramid benefit, enough residual wealth will make its way down to the small businesses and workers at lower levels of the economic ladder to benefit the economy as a whole. While there is no denying that the living standards of millions of people is better at the end of the Second Industrial Revolution than at the beginning of the First Industrial Revolution, it is equally true that those on the top have benefited disproportionately from the Carbon Era, especially in the United States, where few restrictions have been put on the market and little effort made to ensure that the fruits of industrial commerce are broadly shared.

 

pages: 393 words: 115,263

Planet Ponzi by Mitch Feierstein

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Affordable Care Act / Obamacare, Albert Einstein, Asian financial crisis, asset-backed security, bank run, banking crisis, barriers to entry, Bernie Madoff, centre right, collapse of Lehman Brothers, collateralized debt obligation, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, Daniel Kahneman / Amos Tversky, disintermediation, diversification, Donald Trump, energy security, eurozone crisis, financial innovation, financial intermediation, Flash crash, floating exchange rates, frictionless, frictionless market, high net worth, High speed trading, illegal immigration, income inequality, interest rate swap, invention of agriculture, Long Term Capital Management, moral hazard, mortgage debt, Northern Rock, obamacare, offshore financial centre, oil shock, pensions crisis, Plutocrats, plutocrats, Ponzi scheme, price anchoring, price stability, purchasing power parity, quantitative easing, risk tolerance, Robert Shiller, Robert Shiller, Ronald Reagan, too big to fail, trickle-down economics, value at risk, yield curve

Piketty, eds, Top Incomes over the Twentieth Century: A Contrast between Continental European and English-Speaking Countries (Oxford University Press, 2007). The tables have been updated to 2008 and made available online at g-mond.parisschoolofeconomics.eu/topincomes. The increase in the incomes of the rich has been widely noted, widely reported. Yet the appropriate political conclusion to draw is hotly contested. Trickle-down theory, for example, suggests that if the rich are left to get very rich, their efforts will benefit the poor and middling in society. That explanation, unfortunately, is not a very good one. As figure 5.2 illustrates, the poorest in society have seen the lowest income growth, a mere 11%, across the entire 27-year period since 1979. Those in the middle‌—‌the second, third, fourth, and most of the fifth quintiles‌—‌have done OK.

 

pages: 422 words: 131,666

Life Inc.: How the World Became a Corporation and How to Take It Back by Douglas Rushkoff

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affirmative action, Amazon Mechanical Turk, banks create money, big-box store, Bretton Woods, car-free, colonial exploitation, Community Supported Agriculture, complexity theory, computer age, corporate governance, credit crunch, currency manipulation / currency intervention, David Ricardo: comparative advantage, death of newspapers, don't be evil, Donald Trump, double entry bookkeeping, easy for humans, difficult for computers, financial innovation, Firefox, full employment, global village, Google Earth, greed is good, Howard Rheingold, income per capita, invention of the printing press, invisible hand, Jane Jacobs, John Nash: game theory, joint-stock company, Kevin Kelly, laissez-faire capitalism, loss aversion, market bubble, market design, Marshall McLuhan, Milgram experiment, moral hazard, mutually assured destruction, Naomi Klein, new economy, New Urbanism, Norbert Wiener, peak oil, place-making, placebo effect, Ponzi scheme, price mechanism, price stability, principal–agent problem, private military company, profit maximization, profit motive, race to the bottom, RAND corporation, rent-seeking, RFID, road to serfdom, Ronald Reagan, short selling, Silicon Valley, Simon Kuznets, social software, Steve Jobs, Telecommunications Act of 1996, telemarketer, The Wealth of Nations by Adam Smith, Thomas L Friedman, too big to fail, trade route, trickle-down economics, union organizing, urban decay, urban planning, urban renewal, Vannevar Bush, Victor Gruen, white flight, working poor, Works Progress Administration, Y2K, young professional

When one teacher—a friend of mine—challenged a student over work that used words and sentences the student didn’t himself understand under questioning, the parents (good funders of the school) had the headmaster suspend the teacher from his job for a semester. 181 Alan Greenspan, a disciple Leo Hindery, Jr., “Why Obama, Congress Must Curb CEO Pay,” BusinessWeek, November 5, 2008. 181 Adjusted for inflation, the average worker’s Ben Stein, “In the Boardroom, Every Back Gets Scratched,” The New York Times, April 6, 2008, Business section. 181 The top tenth of 1 percent Robert H. Frank, “In the Real World of Work and Wages, Trickle Down Theories Don’t Hold Up,” The New York Times, April 12, 2007, Business section. 181 The number of “severely poor Americans” “Report: In U.S., Record Numbers Are Plunged Into Poverty,” USA Today, February 26, 2007, http://www.usatoday.com/news/nation/2007-02-25-us-poverty_x.htm (accessed March 1, 2007). 181 Meanwhile, for the very first time Greg Ip and John D. McKinnon, “Bush Reorients Rhetoric, Acknowledges Income Gap,” The Wall Street Journal, March 26, 2007, Business section. 182 Americans work an average Robert Reich, “Totally Spent,” The New York Times, February 13, 2008, Opinion section. 182 “Operating in a world” Peter Whybrow’s ideas have been promoted most recently and successfully by Bill McKibben.

 

pages: 478 words: 142,608

The God Delusion by Richard Dawkins

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Albert Einstein, anthropic principle, Any sufficiently advanced technology is indistinguishable from magic, Ayatollah Khomeini, Brownian motion, cosmological principle, David Attenborough, Desert Island Discs, double helix, en.wikipedia.org, experimental subject, Fellow of the Royal Society, gravity well, invisible hand, John von Neumann, luminiferous ether, Menlo Park, meta analysis, meta-analysis, Murray Gell-Mann, Necker cube, Peter Singer: altruism, phenotype, placebo effect, planetary scale, Ralph Waldo Emerson, Richard Feynman, Richard Feynman, Schrödinger's Cat, Search for Extraterrestrial Intelligence, stem cell, Stephen Hawking, Steven Pinker, the scientific method, theory of mind, Thorstein Veblen, trickle-down economics, unbiased observer

Douglas, I miss you. You are my cleverest, funniest, most open-minded, wittiest, tallest, and possibly only convert. I hope this book might have made you laugh – though not as much as you made me. That scientifically savvy philosopher Daniel Dennett pointed out that evolution counters one of the oldest ideas we have: ‘the idea that it takes a big fancy smart thing to make a lesser thing. I call that the trickle-down theory of creation. You’ll never see a spear making a spear maker. You’ll never see a horse shoe making a blacksmith. You’ll never see a pot making a potter.’60 Darwin’s discovery of a workable process that does that very counter-intuitive thing is what makes his contribution to human thought so revolutionary, and so loaded with the power to raise consciousness. It is surprising how necessary such consciousness-raising is, even in the minds of excellent scientists in fields other than biology.

 

Killing Hope: Us Military and Cia Interventions Since World War 2 by William Blum

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anti-communist, Berlin Wall, Bolshevik threat, centre right, collective bargaining, colonial rule, cuban missile crisis, currency manipulation / currency intervention, deindustrialization, kremlinology, land reform, Mikhail Gorbachev, Monroe Doctrine, nuremberg principles, Ronald Reagan, South China Sea, trickle-down economics, union organizing

Capital prowls the globe with a ravenous freedom it hasn't enjoyed since before World War I, operating free of friction, free of gravity. The world has been made safe for the transnational corporation.33 Will this mean any better life for the multitudes than the Cold War brought? Any more regard for the common folk than there's been since they fell off the cosmic agenda centuries ago? "By all means," says Capital, offering another warmed-up version of the "trickle down" theory, the principle that the poor, who must subsist on table scraps dropped by the rich, can best be served by giving the rich bigger meals. The boys of Capital, they also chortle in their martinis about the death of socialism. The word has been banned from polite conversation. And they hope that no one will notice that every socialist experiment of any significance in the twentieth century—without exception—has either been crushed, overthrown, or invaded, or corrupted, perverted, subverted, or destabilized, or otherwise had life made impossible for it, by the United States.

 

pages: 372 words: 152

The End of Work by Jeremy Rifkin

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banking crisis, Bertrand Russell: In Praise of Idleness, blue-collar work, cashless society, collective bargaining, computer age, deskilling, Dissolution of the Soviet Union, employer provided health coverage, Erik Brynjolfsson, full employment, future of work, general-purpose programming language, George Gilder, global village, hiring and firing, informal economy, interchangeable parts, invention of the telegraph, Jacques de Vaucanson, job automation, John Maynard Keynes: technological unemployment, knowledge economy, knowledge worker, land reform, low skilled workers, means of production, new economy, New Urbanism, pink-collar, post-industrial society, Productivity paradox, Richard Florida, Ronald Reagan, Silicon Valley, speech recognition, strikebreaker, technoutopianism, Thorstein Veblen, Toyota Production System, trade route, trickle-down economics, women in the workforce, working poor, working-age population, Works Progress Administration

Physicist Gordon Moore, the chairman of Intel, points out that raw computing power is now doubling every eighteen months, setting a blistering pace for technological change. 76 In the future, advanced parallel computing machines, high-tech robotics, and integrated electronic networks spanning the globe are going to subsume more and more of the economic process, leaving less and less room for direct hands-on human participation in making, moving, selling, and servicing. PART IV THE PRICE OF PROGRESS · 11 · High-Tech Winners and Losers ' \ lIRTUALLY EVERY BUSINESS LEADER and most mainstream econo- Vmists continue to assert that the dramatic technological advances of the Third Industrial Revolution will have a trickle-down effect, reducing the costs of products, stimulating increased consumer demand, creating new markets, and putting more and more people to work in better-paying, new high-tech jobs and industries. For a growing number of working people, however, who find themselves either unemployed or underemployed, the concept of trickle-down technology is of very little solace. At USX Corporation, employees experienced the effects of trickle-down technology first hand.

 

pages: 435 words: 127,403

Panderer to Power by Frederick Sheehan

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Asian financial crisis, asset-backed security, bank run, banking crisis, Bretton Woods, British Empire, call centre, central bank independence, collateralized debt obligation, corporate governance, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, deindustrialization, diversification, financial deregulation, financial innovation, full employment, inflation targeting, interest rate swap, inventory management, Isaac Newton, Long Term Capital Management, margin call, market bubble, McMansion, Menlo Park, mortgage debt, new economy, Northern Rock, oil shock, place-making, Ponzi scheme, price stability, reserve currency, rising living standards, rolodex, Ronald Reagan, Sand Hill Road, savings glut, shareholder value, Silicon Valley, Silicon Valley startup, South Sea Bubble, supply-chain management, supply-chain management software, The Great Moderation, too big to fail, transaction costs, trickle-down economics, VA Linux, Y2K, Yom Kippur War

Standard features in Greenwich included indoor basketball and squash courts, dishwashers from Asko, windows from Zeluck, basements with wine cellars, waterfalls, hockey rinks, panic rooms, and patios and polo fields surrounded by English country gardens. The staffing never stopped—chauffeurs, butlers, maids, Scottish nannies, sommeliers, decorators, lighting-control specialists, stonemasons, carpenters, marble cutters, personal trainers, Zen masters, and fashion assistants. Seven-figure gardening bills require estate superintendents, irrigation specialists, and hedge trimmers. The trickle-down effect runs to the busloads of housekeepers, busboys, gardeners, pool boys, masseurs, hairdressers, and manicurists who made the reverse commute from New York.44 The Bottom At the other end of the Great Distortion, house prices were out of reach, so terms had been relaxed. The “2 and 28” mortgage—a two-year “teaser” rate that adjusted (“reset”) for the next 28 years—was booming. Since the 2/28 was fairly new to the market, the consequences were not well understood in 2006.

 

pages: 510 words: 120,048

Who Owns the Future? by Jaron Lanier

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3D printing, 4chan, Affordable Care Act / Obamacare, Airbnb, augmented reality, automated trading system, barriers to entry, bitcoin, book scanning, Burning Man, call centre, carbon footprint, cloud computing, computer age, crowdsourcing, David Brooks, David Graeber, delayed gratification, digital Maoism, en.wikipedia.org, facts on the ground, Filter Bubble, financial deregulation, Fractional reserve banking, Francis Fukuyama: the end of history, George Akerlof, global supply chain, global village, Haight Ashbury, hive mind, if you build it, they will come, income inequality, informal economy, invisible hand, Jacquard loom, Jaron Lanier, Jeff Bezos, job automation, Kevin Kelly, Khan Academy, Kickstarter, Kodak vs Instagram, life extension, Long Term Capital Management, Mark Zuckerberg, meta analysis, meta-analysis, moral hazard, mutually assured destruction, Network effects, new economy, Norbert Wiener, obamacare, packet switching, Peter Thiel, place-making, Plutocrats, plutocrats, Ponzi scheme, post-oil, pre–internet, race to the bottom, Ray Kurzweil, rent-seeking, reversible computing, Richard Feynman, Richard Feynman, Ronald Reagan, self-driving car, side project, Silicon Valley, Silicon Valley ideology, Silicon Valley startup, Skype, smart meter, stem cell, Steve Jobs, Steve Wozniak, Stewart Brand, Ted Nelson, The Market for Lemons, Thomas Malthus, too big to fail, trickle-down economics, Turing test, Vannevar Bush, WikiLeaks

., 104–5 surgery, 11–13, 17, 18, 98, 157–58, 363 surveillance, 1–2, 11, 14, 50–51, 64, 71–72, 99, 108–9, 114–15, 120–21, 152, 177n, 199–200, 201, 206–7, 234–35, 246, 272, 291, 305, 309–11, 315, 316, 317, 319–24 Surviving Progress, 132 sustainable economies, 235–37, 285–87 Sutherland, Ivan, 221 swarms, 99, 109 synthesizers, 160 synthetic biology, 162 tablets, 85, 86, 87, 88, 113, 162, 229 Tahrir Square, 95 Tamagotchis, 98 target ads, 170 taxation, 44, 45, 49, 52, 60, 74–75, 77, 82, 149, 149, 150, 151, 202, 210, 234–35, 263, 273, 289–90 taxis, 44, 91–92, 239, 240, 266–67, 269, 273, 311 Teamsters, 91 TechCrunch, 189 tech fixes, 295–96 technical schools, 96–97 technologists (“techies”), 9–10, 15–16, 45, 47–48, 66–67, 88, 122, 124, 131–32, 134, 139–40, 157–62, 165–66, 178, 193–94, 295–98, 307, 309, 325–31, 341, 342, 356n technology: author’s experience in, 47–48, 62n, 69–72, 93–94, 114, 130, 131–32, 153, 158–62, 178, 206–7, 228, 265, 266–67, 309–10, 325, 328, 343, 352–53, 362n, 364, 365n, 366 bio-, 11–13, 17, 18, 109–10, 162, 330–31 chaos and, 165–66, 273n, 331 collusion in, 65–66, 72, 169–74, 255, 350–51 complexity of, 53–54 costs of, 8, 18, 72–74, 87n, 136–37, 170–71, 176–77, 184–85 creepiness of, 305–24 cultural impact of, 8–9, 21, 23–25, 53, 130, 135–40 development and emergence of, 7–18, 21, 53–54, 60–61, 66–67, 85–86, 87, 97–98, 129–38, 157–58, 182, 188–90, 193–96, 217 digital, 2–3, 7–8, 15–16, 18, 31, 40, 43, 50–51, 132, 208 economic impact of, 1–3, 15–18, 29–30, 37, 40, 53–54, 60–66, 71–74, 79–110, 124, 134–37, 161, 162, 169–77, 181–82, 183, 184–85, 218, 254, 277–78, 298, 335–39, 341–51, 357–58 educational, 92–97 efficiency of, 90, 118, 191 employment in, 56–57, 60, 71–74, 79, 123, 135, 178 engineering for, 113–14, 123–24, 192, 194, 217, 218, 326 essential vs. worthless, 11–12 failure of, 188–89 fear of (technophobia), 129–32, 134–38 freedom as issue in, 32–33, 90–92, 277–78, 336 government influence in, 158, 199, 205–6, 234–35, 240, 246, 248–51, 307, 317, 341, 345–46, 350–51 human agency and, 8–21, 50–52, 85, 88, 91, 124–40, 144, 165–66, 175–78, 191–92, 193, 217, 253–64, 274–75, 283–85, 305–6, 328, 341–51, 358–60, 361, 362, 365–67 ideas for, 123, 124, 158, 188–89, 225, 245–46, 286–87, 299, 358–60 industrial, 49, 83, 85–89, 123, 132, 154, 343 information, 7, 32–35, 49, 66n, 71–72, 109, 110, 116, 120, 125n, 126, 135, 136, 254, 312–16, 317 investment in, 66, 181, 183, 184, 218, 277–78, 298, 348 limitations of, 157–62, 196, 222 monopolies for, 60, 65–66, 169–74, 181–82, 187–88, 190, 202, 326, 350 morality and, 50–51, 72, 73–74, 188, 194–95, 262, 335–36 motivation and, 7–18, 85–86, 97–98, 216 nano-, 11, 12, 17, 162 new vs. old, 20–21 obsolescence of, 89, 97 political impact of, 13–18, 22–25, 85, 122, 124–26, 128, 134–37, 199–234, 295–96, 342 progress in, 9–18, 20, 21, 37, 43, 48, 57, 88, 98, 123, 124–40, 130–37, 256–57, 267, 325–31, 341–42 resources for, 55–56, 157–58 rupture as concept in, 66–67 scams in, 119–21, 186, 275n, 287–88, 299–300 singularity of, 22–25, 125, 215, 217, 327–28, 366, 367 social impact of, 9–21, 124–40, 167n, 187, 280–81, 310–11 software-mediated, 7, 11, 14, 86, 100–101, 165, 234, 236, 258, 347 startup companies in, 39, 60, 69, 93–94, 108n, 124n, 136, 179–89, 265, 274n, 279–80, 309–10, 326, 341, 343–45, 348, 352, 355 utopian, 13–18, 21, 31, 37–38, 45–46, 96, 128, 130, 167, 205, 207, 265, 267, 270, 283, 290, 291, 308–9, 316 see also specific technologies technophobia, 129–32, 134–38 television, 86, 185–86, 191, 216, 267 temperature, 56, 145 Ten Commandments, 300n Terminator, The, 137 terrorism, 133, 200 Tesla, Nikola, 327 Texas, 203 text, 162, 352–60 textile industry, 22, 23n, 24, 135 theocracy, 194–95 Theocracy humor, 124–25 thermodynamics, 88, 143n Thiel, Peter, 60, 93, 326 thought experiments, 55, 139 thought schemas, 13 3D printers, 7, 85–89, 90, 99, 154, 162, 212, 269, 310–11, 316, 331, 347, 348, 349 Thrun, Sebastian, 94 Tibet, 214 Time Machine, The (Wells), 127, 137, 261, 331 topology, network, 241–43, 246 touchscreens, 86 tourism, 79 Toyota Prius, 302 tracking services, 109, 120–21, 122 trade, 29 traffic, 90–92, 314 “tragedy of the commons,” 66n Transformers, 98 translation services, 19–20, 182, 191, 195, 261, 262, 284, 338 transparency, 63–66, 74–78, 118, 176, 190–91, 205–6, 278, 291, 306–9, 316, 336 transportation, 79–80, 87, 90–92, 123, 258 travel agents, 64 Travelocity, 65 travel sites, 63, 64, 65, 181, 279–80 tree-shaped networks, 241–42, 243, 246 tribal dramas, 126 trickle-down effect, 148–49, 204 triumphalism, 128, 157–62 tropes (humors), 124–40, 157, 170, 230 trust, 32–34, 35, 42, 51–52 Turing, Alan, 127–28, 134 Turing’s humor, 127–28, 191–94 Turing Test, 330 Twitter, 128, 173n, 180, 182, 188, 199, 200n, 201, 204, 245, 258, 259, 349, 365n 2001: A Space Odyssey, 137 two-way links, 1–2, 227, 245, 289 underemployment, 257–58 unemployment, 7–8, 22, 79, 85–106, 117, 151–52, 234, 257–58, 321–22, 331, 343 “unintentional manipulation,” 144 United States, 25, 45, 54, 79–80, 86, 138, 199–204 universities, 92–97 upper class, 45, 48 used car market, 118–19 user interface, 362–63, 364 utopianism, 13–18, 21, 30, 31, 37–38, 45–46, 96, 128, 130, 167, 205, 207, 265, 267, 270, 283, 290, 291, 308–9, 316 value, economic, 21, 33–35, 52, 61, 64–67, 73n, 108, 283–90, 299–300, 321–22, 364 value, information, 1–3, 15–16, 20, 210, 235–43, 257–58, 259, 261–63, 271–75, 321–24, 358–60 Values, Attitudes, and Lifestyles (VALS), 215 variables, 149–50 vendors, 71–74 venture capital, 66, 181, 218, 277–78, 298, 348 videos, 60, 100, 162, 185–86, 204, 223, 225, 226, 239, 240, 242, 245, 277, 287, 329, 335–36, 349, 354, 356 Vietnam War, 353n vinyl records, 89 viral videos, 185–86 Virtual Reality (VR), 12, 47–48, 127, 129, 132, 158, 162, 214, 283–85, 312–13, 314, 315, 325, 343, 356, 362n viruses, 132–33 visibility, 184, 185–86, 234, 355 visual cognition, 111–12 VitaBop, 100–106, 284n vitamins, 100–106 Voice, The, 185–86 “voodoo economics,” 149 voting, 122, 202–4, 249 Wachowski, Lana, 165 Wall Street, 49, 70, 76–77, 181, 184, 234, 317, 331, 350 Wal-Mart, 69, 70–74, 89, 174, 187, 201 Warhol, Andy, 108 War of the Worlds, The (Wells), 137 water supplies, 17, 18 Watts, Alan, 211–12 Wave, 189 wealth: aggregate or concentration of, 9, 42–43, 53, 60, 61, 74–75, 96, 97, 108, 115, 148, 157–58, 166, 175, 201, 202, 208, 234, 278–79, 298, 305, 335, 355, 360 creation of, 32, 33–34, 46–47, 50–51, 57, 62–63, 79, 92, 96, 120, 148–49, 210, 241–43, 270–75, 291–94, 338–39, 349 inequalities and redistribution of, 20, 37–45, 65–66, 92, 97, 144, 254, 256–57, 274–75, 286–87, 290–94, 298, 299–300 see also income levels weather forecasting, 110, 120, 150 weaving, 22, 23n, 24 webcams, 99, 245 websites, 80, 170, 200, 201, 343 Wells, H.

 

Year 501 by Noam Chomsky

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anti-communist, Bartolomé de las Casas, Berlin Wall, Bolshevik threat, Bretton Woods, British Empire, capital controls, colonial rule, corporate governance, cuban missile crisis, declining real wages, Deng Xiaoping, deskilling, Dissolution of the Soviet Union, European colonialism, experimental subject, Fall of the Berlin Wall, Howard Zinn, invisible hand, land reform, land tenure, means of production, Monroe Doctrine, non-tariff barriers, offshore financial centre, Plutocrats, plutocrats, price stability, Ralph Nader, Ralph Waldo Emerson, RAND corporation, Ronald Reagan, Simon Kuznets, strikebreaker, structural adjustment programs, the scientific method, The Wealth of Nations by Adam Smith, trade liberalization, trickle-down economics, union organizing, War on Poverty, working poor

Emphasis should be placed on “the expansion of private enterprises,” the Bank recommended. Costs for education should be “minimized,” and such “social objectives” as persist should be privatized. “Private projects with high economic returns should be strongly supported” in preference to “public expenditures in the social sectors,” and “less emphasis should be placed on social objectives which increase consumption”—“temporarily,” until the famed trickle-down effects are detected, some time after the Messiah arrives. The recommendations, it is understood, are a precondition to aid, and a bright future is sure to follow. Of the array of predictions, one came to pass: the intended migration of the rural population to urban areas, and for many, to leaky boats attempting the dangerous 800-mile passage to Florida, to face forcible return if they make it (many don’t).

 

pages: 829 words: 229,566

This Changes Everything: Capitalism vs. The Climate by Naomi Klein

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1960s counterculture, battle of ideas, Berlin Wall, big-box store, bilateral investment treaty, British Empire, business climate, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, clean water, Climategate, cognitive dissonance, colonial rule, Community Supported Agriculture, complexity theory, crony capitalism, decarbonisation, deindustrialization, dematerialisation, Donald Trump, Downton Abbey, energy security, energy transition, equal pay for equal work, Exxon Valdez, failed state, Fall of the Berlin Wall, feminist movement, financial deregulation, food miles, Food sovereignty, global supply chain, hydraulic fracturing, ice-free Arctic, immigration reform, income per capita, Internet Archive, invention of the steam engine, invisible hand, Isaac Newton, James Watt: steam engine, market fundamentalism, moral hazard, Naomi Klein, new economy, Nixon shock, Occupy movement, offshore financial centre, oil shale / tar sands, open borders, patent troll, planetary scale, post-oil, profit motive, quantitative easing, race to the bottom, Ralph Waldo Emerson, Rana Plaza, Ronald Reagan, smart grid, special economic zone, Stephen Hawking, Stewart Brand, structural adjustment programs, Ted Kaczynski, the scientific method, The Wealth of Nations by Adam Smith, trade route, transatlantic slave trade, transatlantic slave trade, trickle-down economics, Upton Sinclair, uranium enrichment, urban planning, urban sprawl, wages for housework, walkable city, Washington Consensus, Whole Earth Catalog, WikiLeaks

., 15 Thoreau, Henry David, 184, 286 350.org, 140, 156, 233n, 353, 356 tidal power, 127 Tiger Management, 208 tight-rock formations, 311; see also shale, fracking of Tillerson, Rex, 111, 314 Time magazine, Planet Earth on cover of, 74, 204 Tiputini oil field, 410 Tjelmeland, Aaron, 192, 195 Tongue River, 389, 390 Tongue River Railroad (proposed), 389 tornados, 406 Toronto, 55, 65, 67, 73, 126 Total, 246 Totnes, England, 364 Toyota, 196 trade, see free trade agreements; international trade trade unions, 81, 83, 177, 204, 454 job creation and, 126–27 job protection by, 126, 178 NAFTA opposed by, 84 transaction tax, 418 TransCanada, 149, 346, 359, 361, 362 see also Keystone XL pipeline Transition Town movement, 364 Transocean, 330 Trans-Pacific Partnership, 78 transportation infrastructure, 85, 90, 127 travel, wealth and, 113 Treaty 6, 372 tree farms, 222 Trenberth, Kevin, 272, 275 Trent River, 300 trickle-down economics, 19 Trinity nuclear test, 277 triumphalism, 205, 465 Tropic of Chaos (Parenti), 49 tropics, techno-fixes and risk to, 49 Trump, Donald, 3 Tschakert, Petra, 269 Tsilhqot’in First Nation, 345 Tsipras, Alexis, 181–82, 466 Tsleil-Waututh First Nation, 323 Tutu, Desmond, 464 Tuvalu, 13 2 degrees Celsius boundary, 87–88, 89, 150, 354, 456 Tyndall Centre for Climate Change Research, 13, 21, 56, 86–87, 214, 283 typhoons, 107, 175, 406, 465 Uganda, 222 ultra-deepwater “subsalt” drilling, 145 Undesirables (Isaacs), 167 unemployment, 180 unemployment insurance, 454 Unified Campesino Movement of Aguán, 222 Union of Concerned Scientists, 201 Clean Vehicles Program at, 237 United Kingdom, 13, 149, 170, 224, 225 compensation of slave-owners in, 415–16, 457 “dash for cash” in, 299 divestment movement in, 354 flooding in, 7, 54, 106–7 fracking in, 299–300, 313 Industrial Revolution in, 172–73, 410 negatives of privatization in, 128 politics of climate change in, 36, 150 supports for renewable energy cut in, 110 Thatcher government of, 39 World War II rationing in, 115–16 United Nations, 7, 18, 64, 87, 114 Bloomberg as special envoy for cities and climate change of, 236 Clean Development Mechanism (CDM), 219–20, 224, 226 climate governance and, 280 climate summits of, 5, 11, 65, 150, 165, 200; see also specific summits Department of Economic and Social Affairs, 110 Intergovernmental Panel on Climate Change, see Intergovernmental Panel on Climate Change (IPCC) international agreements and, 17 Special Rapporteur on the Right to Food, 135 United Nations Conference on the Human Environment of 1972, 202 United Nations Declaration on the Rights of Indigenous Peoples, 377, 383 United Nations Economic Commission for Latin America and the Caribbean, 180 United Nations Environmental Modification Convention, 278 United Nations Environment Programme (UNEP), 272 United Nations Framework on Climate Change, 200, 410 United Nations Framework Convention on Climate Change (UNFCCC), 76, 77, 78–79 United Nations High Commissioner for Refugees, 167 United Nations Rio Declaration on Environment and Development (1992), 55, 293 United Policyholders, 109 United States, 19, 67, 68, 143 carbon emissions from, 409 coal exports from, 320, 322, 346, 349, 374, 376 Copenhagen agreement signed by, 12, 150 energy privatization reversals in, 98 environmental legislation in, 201–2 failure of climate legislation in, 226–27 Kyoto Protocol and, 218–19, 225–26 oil and gas export restrictions in, 71 opposition movement in, 9 solar energy market in, 72 WTO challenges brought against, 65 WTO challenges brought by, 64–65, 68 United States Climate Action Partnership (USCAP), 226–28 University College London, 415–16 uranium, 176 urban planning, green, 16 urban sprawl, 90, 91 US Airways, 1–2 U.S.

 

pages: 709 words: 191,147

White Trash: The 400-Year Untold History of Class in America by Nancy Isenberg

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back-to-the-land, British Empire, California gold rush, colonial rule, Copley Medal, desegregation, Donald Trump, feminist movement, full employment, indoor plumbing, invisible hand, joint-stock company, land reform, land tenure, New Urbanism, Plutocrats, plutocrats, Republic of Letters, Ronald Reagan, Scientific racism, The Wealth of Nations by Adam Smith, theory of mind, trade route, transcontinental railway, trickle-down economics, upwardly mobile, urban renewal, War on Poverty, working poor, Works Progress Administration

Giving the mudsill theory an emphatic endorsement, he declared that “no white man at the South serves another as his body servant to clean his boots, wait on his table, and perform menial services in his household!” Besides, he wrote, wages for white workers were better in the South, and land ownership was more dispersed—which was patently untrue. He went on: class mobility was possible for nonslaveholders who scrimped and saved to buy a slave, especially a breeding female slave, whose offspring were “heirlooms” to be passed on to the next generation. If his promises of trickle-down economics were unconvincing, De Bow tacitly confirmed that slaves’ elevation meant nonslaveholders’ utter degradation. For these reasons, he said, the poorest nonslaveholder would readily “dig in the trenches, in defense of the slave property of his more favored neighbor.” Fear of dropping to the level of slaves would lead poor whites to fight.24 Disunion did not alleviate such fears. In the lower South, for example, there was no popular referendum on secession except in Texas.

 

pages: 777 words: 186,993

Imagining India by Nandan Nilekani

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affirmative action, BRICs, British Empire, business process, business process outsourcing, call centre, clean water, colonial rule, corporate governance, cuban missile crisis, deindustrialization, demographic dividend, demographic transition, Deng Xiaoping, distributed generation, farmers can use mobile phones to check market prices, full employment, ghettoisation, glass ceiling, global supply chain, Hernando de Soto, income inequality, informal economy, joint-stock company, knowledge economy, labour market flexibility, land reform, LNG terminal, load shedding, Mahatma Gandhi, market fragmentation, Mikhail Gorbachev, Network effects, new economy, New Urbanism, open economy, pension reform, Potemkin village, price mechanism, race to the bottom, rent control, rolodex, Ronald Reagan, school vouchers, Silicon Valley, smart grid, special economic zone, The Wealth of Nations by Adam Smith, Thomas L Friedman, Thomas Malthus, transaction costs, trickle-down economics, unemployed young men, upwardly mobile, urban planning, urban renewal, women in the workforce, working poor, working-age population

It must encourage fairness between markets and civil society through independent, transparent stock markets and financial regulators, and a legal system that prevents mob rule and influence by businesses. Such an approach, as Naidu points out, “gives more people a stake in reforms, and they become invested in implementing progressive ideas. Else people become mere spectators to wealth creation, who forever feel left out and sidelined.” He adds, “We have yet to realize trickle-down economics in a substantial way, and without that we will not be able to keep implementing our reform agenda.” We have to embrace this idea of balance across our policies and realize that the more players in our markets and the more dispersed the power, the better it is, since it self-regulates against abuse. From the farmers using India’s commodity markets to the urban poor building their own homes in shantytowns, to the villagers, abandoned by weak state and local governments, instituting community cleanups under Apna Desh, people are in search of concrete solutions.

 

pages: 851 words: 247,711

The Atlantic and Its Enemies: A History of the Cold War by Norman Stone

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affirmative action, anti-communist, Ayatollah Khomeini, bank run, banking crisis, Berlin Wall, Bernie Madoff, Big bang: deregulation of the City of London, Bonfire of the Vanities, Bretton Woods, British Empire, central bank independence, Deng Xiaoping, desegregation, Dissolution of the Soviet Union, European colonialism, facts on the ground, Fall of the Berlin Wall, financial deregulation, Francis Fukuyama: the end of history, Frederick Winslow Taylor, full employment, Henry Ford's grandson gave labor union leader Walter Reuther a tour of the company’s new, automated factory…, illegal immigration, income per capita, interchangeable parts, Jane Jacobs, Joseph Schumpeter, labour mobility, land reform, means of production, Mikhail Gorbachev, new economy, North Sea oil, oil shock, Ponzi scheme, price mechanism, price stability, RAND corporation, rent-seeking, Ronald Reagan, Silicon Valley, special drawing rights, Steve Jobs, strikebreaker, The Death and Life of Great American Cities, trade liberalization, trickle-down economics, V2 rocket, War on Poverty, Washington Consensus, Yom Kippur War, éminence grise

It had been a Pasha’s house, had been turned into a grand hotel, and in its place half of a gruesome car park went up until it was stopped. The counterpart was that, as the money poured in, so did migrants. The city became, like Mexico City, a megalopolis, and although old Stambul survived, it was squashed in with concrete or clapboard suburbs, each taken over by a region in the east. It was a demonstration of the trickle-down effect, in that the crumbs from the tables of Maslak rolled down into Sütlüce, and the parking arrangements of Galata were taken over by a Kurdish mob from Bitlis, near Lake Van. The later years of Özal have a shadowy resemblance to the later years of Margaret Thatcher, when the machine ran beyond the monetarist desert and entered upon richer and much more intractable soil. The real parallel for this is Italy, in the Christian Democrats’ blue period: a veneer of piety, and the sound of the till.

 

pages: 823 words: 206,070

The Making of Global Capitalism by Leo Panitch, Sam Gindin

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accounting loophole / creative accounting, 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, 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, liquidity trap, London Interbank Offered Rate, Long Term Capital Management, manufacturing employment, market bubble, market fundamentalism, Martin Wolf, means of production, money: store of value / unit of account / medium of exchange, Monroe Doctrine, moral hazard, mortgage debt, mortgage tax deduction, 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

With one firm after another apparently buckling under the weight of their bad investments, the socialization of the banks’ losses was increasingly seen to be both ineffective and unfair—a factor that had already played its part in the outcome of the November 2008 presidential election. The TARP’s emphasis on the recapitalization of American banks helped to reduce the spread between the rates at which the state was lending to the banks and what banks charged borrowers, but the trickle-down effects were limited because lending institutions, still unsure how to evaluate financial risk, tightened the terms on all major types of loans. This reluctance to lend was related to the fact that when a housing bubble bursts it affects not just the financial system, but the whole economic system, in a way stock market meltdowns do not. Since for most people the value of the family home accounts for most of their wealth by far, any significant decline in that value can undermine consumer confidence, with effects that go well beyond the most immediate impact on the construction industry and the purchase of furniture, appliances, and even cars.57 In contrast with the recession of 2001, a slowdown in consumption preceded the beginning of the recession in late 2007, and turned into a massive collapse in the second half of 2008.