OVER the past decade economists have been intensely scrutinised for their intellectual failings in the run-up to the 2007-08 financial crisis.
OVER the past decade economists have been intensely scrutinised for their intellectual failings in the run-up to the 2007-08 financial crisis.
Today’s headlines are filled with technological breakthroughs that promise an optimized future, from artificial intelligence to diagnose disease to self-driving cars that revolutionize transportation. One day, everything will be easier, faster, and better, we’re told.
ST. LOUIS — This past week, President Trump and House Republicans took initial steps to cut back the social safety net. Both have argued that such spending is counterproductive and wasteful, and that eligibility must be tightened for programs including food stamps and Medicaid. Mr.
The International Monetary Fund predicted the world economy’s strongest upswing since 2011 will continue for the next two years, but warned the seeds of its demise may have already been planted. The fund on Tuesday left its forecasts for global growth this year and next at the 3.
LONDON — Humanity is always moving forward with innovation after innovation improving global quality of life. The last 150 years have seen the most remarkable advancement of technology in history.
China adopted a carrot and stick approach to the U.S. on Tuesday as the risk of a trade war between the two powerhouse economies continued to simmer. At the same time that Beijing promised foreign car makers such as Ford Motor Co.
In recent years, a number of economic ideas once considered unassailable have been called into question. The financial crisis and Great Recession threw much of macroeconomic and financial wisdom out the window, and now new evidence is challenging orthodoxy in a variety of areas.
Not long ago I was fortunate enough to visit the Rishengchang in Pingyao – which I tentatively understand to be the oldest “draft” bank in China, allowing merchants to send money across the nation. Pingyao is well worth a visit, if ever happen to be in that part of China.
LOW productivity growth has plagued Britain’s economy since the financial crisis. From 2010 to 2016 output per hour grew, on average, by just 0.2% a year, down from 2.5% between 1950 and 2007. In the G7 group of rich countries, only Italy has done worse.
R has great potential in Economic data analysis, as well as econometrics.
FACEBOOK, whose users visit for an average of 50 minutes a day, promises members: “It’s free and always will be.” It certainly sounds like a steal. But it is only one of the bargains that apparently litter the internet: YouTube watchers devour 1bn hours of videos every day, for instance.
The Scramble for Africa has contributed to economic, social, and political underdevelopment by spurring ethnic-tainted civil conflict and discrimination and by shaping the ethnic composition, size, shape and landlocked status of the newly independent states.
The shamelessness was breathtaking. You may have noticed that we rolled out some cameras across our apps recently. That was Act One. Photos and videos are becoming more central to how we share than text. So the camera needs to be more central than the text box in all of our apps.
SINCE the publication of "Capital in the Twenty-First Century", Thomas Piketty has won many plaudits for his work on inequality. The book has so far sold more than 1.5m copies. Its arguments have been praised by Nobel-prize winners and politicians alike.
In one of the most seminal works in the field of history of economic thought (History of Economic Analysis, 1954), Joseph Schumpeter argued that there is a “Great Gap” in the history of economics.
I have long had a "thinking like an economist" lecture in the can. But I very rarely give it. It seems to me that it is important stuff—that people really should know it before they begin studying economics, because it would make studying economics much easier.
Kenneth Arrow, co-recipient of the 1972 Nobel Memorial Prize in Economic Sciences, passed away in February. This column outlines the ideas of one of the transcendent minds in the history of economics.
By John T. Harvey We are experiencing deep economic problems and it is the fault of the economics discipline. Their macro theories suck. But, there is no mechanism forcing it to alter its models when they don’t appear to work.
It can be very confusing to know that you won’t find a decent job, pay off student loans or put in a down payment on a house in the next few years — even though you may have graduated from a top-tier university or secured glowing references from all those unpaid internships that got you to w
The World Economics Association recently interviewed me on the state of economics, inquiring about my views on pluralism in the profession. You can find the result on the WEA's newsletter here (the interview starts on page 9). I reproduce it below. 1.
The 62 richest people in the world own as much wealth as half of humanity. Such extreme wealth conjures images of both fat cats and deserving entrepreneurs. So where did so much money come from? It turns out, three-fourths of extreme wealth in the US falls on the fat cat side.
William Baumol — an economist who just died at the age of 95 — had a famous idea, commonly known as Baumol’s cost disease, that explains a lot about our modern world.
From the man who bought you "the shortest economic textbook in the world"; and "13 things Economists won't tell you", here is Ha-Joon Chang's ultimate pocket guide to the differences (and similarities) between all the economic schools of thought.
What do heroin, “paper” coffee cups that don’t biodegrade for 500 years and Kim Jong-un’s smart new collection of intercontinental ballistic missiles have in common? The answer is that they all contribute to the growth of the economy.
Neoliberalism and its usual prescriptions – always more markets, always less government – are in fact a perversion of mainstream economics. By As even its harshest critics concede, neoliberalism is hard to pin down.
When it was first published in English in the spring of 2014, Thomas Piketty’s book Capital in the Twenty-First Century was a surprising bestseller.
Have you ever heard of the term “economic rent”? No? That’s probably because of the greatest political coup in the history of our republic.
At the outset of the Great Depression, John Maynard Keynes penned a remarkable economic prognostication: that despite the ominous storm that was then enfolding the world, mankind was in fact on the brink of solving “the economic problem” — that is, the quest for daily subsistence.
I’ve studied monopolies for about 20 years. I got into this line of work back in 1999, when an earthquake in Taiwan resulted in the shutdown of computer factories all over the United States.
What do the economists at the International Monetary Fund see when they look at the U.S.? An economy in the midst of a long expansion ("its third longest expansion since 1850"), with "persistently strong" job growth, "subdued" inflation and something close to "full employment." But also this:
Business as usual. That will be the implicit message when the Sveriges Riksbank announces this year’s winner of the “Prize in Economic Sciences in Memory of Alfred Nobel”, to give it its full title.
You’ve probably heard the news that the celebrated post-WW II beating heart of America known as the middle class has gone from “burdened,” to “squeezed” to “dying.” But you might have heard less about what exactly is emerging in its place.
ONE morning, an economist went to buy a shirt. The one he chose was a marvel of global production. It was made in Malaysia using German machines. The cloth was woven from Indian cotton grown from seeds developed in America. The collar lining came from Brazil; the artificial fibre from Portugal.
Think managing your finances has to be complicated? Wonkblog contributor (and UC Chicago social scientist) Harold Pollack doesn't. After a talk with personal finance expert Helaine Olen, Pollack managed to write down pretty much everything you need to know on a 4x6 index card.
Figure 2 summarises our key results. Good pilots – those whose average monthly victory score put them in the top 20% of the distribution – on average improved their victory score by 50%, from less than two to more than three a month, when the successes of their former peers were advertised.
In 2011, Ohio voters repealed Senate Bill 5, an attack on collective-bargaining rights.
Many of us know we need to rethink economics, but Kate Raworth actually did it. Envisioning the economy as a doughnut, two boundaries become clear. If we fall into the doughnut’s middle hole, human needs fail to be met. If we drop off of the outer edge, life is unsustainable.
As even its harshest critics concede, neoliberalism is hard to pin down. In broad terms, it denotes a preference for markets over government, economic incentives over social or cultural norms, and private entrepreneurship over collective or community action.
The populist revolt of our day reflects the deep rift that has opened between the worldview of the global intellectual and professional elites, and that of ordinary citizens. These two groups now live in parallel social worlds and orient themselves using different cognitive maps.
It is time to ditch the belief that economies obey rigid mechanical rules, which has widened inequality and polluted our planet. Economics is evolving Things are not going well in the world’s richest economies.
American economist Hyman Minsky, who died in 1996, grew up during the Great Depression, an event which shaped his views and set him on a crusade to explain how it happened and how a repeat could be prevented, writes Duncan Weldon.
Hayek pioneered the informational view of markets in which prices are messages, and his dynamic vision of the economy provides the basis of an alternative to the equilibrium methodology that today underpins the economics of information.
Mainstream economics is terrible at understanding the reality of human behaviour. Now, even the respected thinker Paul Romer is calling for change It’s 26 years since Paul Romer shook the discipline of economics with a single research paper.
SUPPOSE that one day the government of a large and fast-growing economy became convinced that its highest priority was to purge the country of black-economy millionaires hoarding piles of illicit cash.
By J. W. Mason I’ve felt for a while that most critiques of economics miss the mark. They start from the premise that economics is a systematic effort to understand the concrete social phenomena we call “the economy,” an effort whose methods unfortunately are unsound.
The financial collapse of 2007/08 and the subsequent deep recession and sluggish recovery have left huge scars on the global economy. In the UK, the government is grappling with an unprecedented budget deficit and unemployment is over 1 million higher than it was before the recession.
Most people are in the pursuit of happiness. There are economists who think happiness is the best indicator of the health of a society. We know that money can make you happier, though after your basic needs are met, it doesn’t make you that much happier.
Quality clothes last longer for the money you spend, they’re more comfortable, and they make you look and feel pretty good while you wear them. Best of all, you can find quality anywhere. It comes down to buying less mediocre stuff and using that money on a few nice things that last forever.
IN THE second quarter of this year the German economy shrank by 0.2%. Economists expect it to contract again in the third quarter, meaning that the economy will technically be in recession. Some believe that the economy will not grow until the middle of next year.
This week “The Economist explains” is given over to economics. For each of six days until Saturday this blog will publish a short explainer on a seminal idea. DOES trade hurt wages? Or, more precisely, do imports from low-wage economies hurt workers in high-wage ones? Many people assume so.
The basic structure of the American health care system, in which most people have private insurance through their jobs, might seem historically inevitable, consistent with the capitalistic, individualist ethos of the nation. In truth, it was hardly preordained.
The “quiet catastrophe” is particularly dismaying because it is so quiet, without social turmoil or even debate.
The ability of statistics to accurately represent the world is declining. In its wake, a new age of big data controlled by private companies is taking over – and putting democracy in peril by In theory, statistics should help settle arguments.
Students are demanding alternatives to a free-market dogma with a disastrous record. That's something we all need From any rational point of view, orthodox economics is in serious trouble.
The digitization of our economy will bring with it a new generation of radical economic ideologies, of which Bitcoin is arguably the first. For those with assets, technological savvy, and a sense of adventure, the state is the enemy and a cryptographic currency is the solution.
To see where we are coming from we must go far back in time. 30 or even 50 years are not enough.
Turning 30 just got a lot scarier. So says the research arm of McKinsey & Co. in a new report that argues that investors of all ages need to resign themselves to diminished gains.
Two questions: is it good or bad that professional athletes earn 400 times what nurses do, and is string theory a dead end? Each question goes to the heart of its discipline.
More than 151 million Americans count themselves employed, a number that has risen sharply in the last few years. The question is this: What are they doing all day? Because whatever it is, it barely seems to be registering in economic output. The number of hours Americans worked rose 1.
What is economics? There are lots pithy definitions of economics, none of which I find very helpful. Think of it this way: it’s a typical day. You wake up. Maybe it’s in some luxurious house or maybe it’s in a cramped place, having to share a space with lots of other people. You get up.
By George H. Blackford “Consider the problem of predicting the shots made by an expert billiard player.
From time to time, the Singularity Hub editorial team unearths a gem from the archives and wants to share it all over again. It’s usually a piece that was popular back then and we think is still relevant now. This is one of those articles. It was originally published . We hope you enjoy it!
Critiques of capitalism come in two varieties. First, there is the moral or spiritual critique. This critique rejects Homo economicus as the organising heuristic of human affairs. Human beings, it says, need more than material things to prosper.
The creator of The Wire, David Simon, delivered an impromptu speech about the divide between rich and poor in America at the Festival of Dangerous Ideas in Sydney, and how capitalism has lost sight of its social compact. This is an edited extract • Lanre Bakare: Go home, David Simon.
LAST night 40,000 people rented accommodation from a service that offers 250,000 rooms in 30,000 cities in 192 countries. They chose their rooms and paid for everything online. But their beds were provided by private individuals, rather than a hotel chain.
If you’ve used the internet at any point in the past few weeks, you’ve probably heard of Juicero. Juicero is a San Francisco-based company that sells a $400 juicer. Here’s how it works: you plug in a pre-sold packet of diced fruits and vegetables, and the machine transforms it into juice.
IN 1924 John Maynard Keynes, who invented macroeconomics, used a biographical essay about his mentor Alfred Marshall to muse on the qualities of a good economist. He must be mathematician, historian, statesman, philosopher—in some degree. He must understand symbols and speak in words.
AMERICA has a debt ceiling. It’s a statutory limit on how much debt the federal government can issue. For most of its existence (the ceiling will turn 100 next year) Congress has simply voted to raise the limit when borrowing threatens to hit it.
Sorry to say it, but you’re not perfect. We like to believe that we are smart, rational creatures, always acting in our best interests. In fact, dominant economic theory these days often makes that assumption.
This is often accompanied by calls to match the health care coverage of "the rest of the world." But this overlooks a crucial fact: The “rest of the world” is not all alike.
AT THE height of the euro crisis, with government-bond yields soaring in several southern European countries and defaults looming, the European Central Bank and the healthier members of the currency club fended off disaster by offering bail-outs.
This is Naked Capitalism’s special fundraiser, to fight a McCarthtyite attack against this site and 200 others by funding legal expenses and other site support.
So what are we going to do about it? This is the only question worth asking. But the answers appear elusive.
If the goal of the economy is to provide decent-paying work for everyone, that economy clearly isn’t doing a good job at the moment. Real wages for most Americans haven’t increased in 40 years. Real unemployment–which includes the “under-employed”–is above 10%.
How and why did the modern world and its unprecedented prosperity begin? Learned tomes by historians, economists, political scientists and other scholars fill many bookshelves with explanations of how and why the process of modern economic growth or ‘the Great Enrichment’ exploded in wester
Without us noticing, we are entering the postcapitalist era. At the heart of further change to come is information technology, new ways of working and the sharing economy. The old ways will take a long while to disappear, but it’s time to be utopian
IT WAS in 1942 that Joseph Schumpeter published his only bestseller, “Capitalism, Socialism and Democracy”. The book was popular for good reason. It was a tour de force of economics, history and sociology. It coined memorable phrases such as “creative destruction”.