Live from La Farine:
It is Eric Rauchway in the Times Literary Supplement. My only complaints about the review are:
It was more than just the desire of rapidly-growing emerging markets not to find themselves under the hammer of a 1998 that produced the global savings glut. It was increased income inequality in the North Atlantic core, plus increased wealth in the periphery seeking a North Atlantic bolthole as a form of political risk insurance as well and in addition.
Although Keynes argued that deflation was worse than inflation, he sought to avoid both rather than lean on the inflation side.
Keynes did not win at Bretton Woods: Bretton Woods did not mandate symmetrical adjustment. Keynes's victory was partial, and for the most part came after his death: policy during his life was hardly Keynesian.
Summers served Obama; Summers's preferred policies were not adopted by Obama. But that failure was by no means written in the stars. It was contingent--depending on both a Treasury Secretary and senior political advisors who did not understand the situation and on Obama's imprinting on them rather than on Summers. It was a near-run thing, in the United States at least. A much better world is only a butterfly wing-flap away on some alternative quantum frequency of the multiverse.
Here it is:
Eric Rauchway: Debt Piled Up: "Martin Wolf THE SHIFTS AND THE SHOCKS: What we’ve learned--and still have to learn--from the financial crisis. 496pp. Allen Lane. £25. 978 1 84614 697 8 Published: 29 December 2014:
Over the course of his new book on the current economic unpleasantness, Martin Wolf conveys a sense of increasing frustration. He begins with a sober account of recent history and a capsule proposal for how to solve the malaise with which we are confronted, and then begins to evaluate competing accounts and proposed solutions, often with a single word. Here is a non-exhaustive list of those words: nonsensical, simplistic, mistaken, childish, asinine, self-refuting, nonsense, silly, insouciant and grotesquely dangerous, and--most frequently--wrong (at least once, totally so).
The policy debate on the sources, causes and potential solutions to rising income and wealth inequality has intensified in the past few years. Recently, French economist Thomas Piketty’s popular book 'Capital in the Twenty-First Century' garnered much attention and ignited further debate about these issues. Piketty argues that wealth will inevitably become more concentrated under capitalism because the returns to wealth are larger than economic growth rates. The solution he proposes is a coordinated global tax on wealth. The Baker Institute's Tax and Expenditure Policy Program will host two renowned economists to discuss the underlying causes and consequences of inequality, evaluate the empirical evidence of rising inequality, and examine potential solutions for dealing with these problems in the United States.
As prepared for delivery:
J. Bradford DeLong :: U.C. Berkeley, NBER, WCEG, INET :: February 3, 2015 :: http://tinyurl.com/dl20150202a
I am very happy to be here, especially as Texas is a state I get to relatively rarely. I have unusually few relatives in it, you see. When the DeLongs got to Wichita they decided to turn north rather than south and wound up in DeKalb County, Illinois. And those who did end up here decamped to North Carolina, leaving me with none until last year when my cousin Annie and her husband moved to Dallas. The last time my wife and I spent any extended time in Texas was on our honeymoon, when we were washed out of our campsite in a swamp near the Louisiana border by a midnight mid-June thunderstorm, so we bypassed Galveston and Houston and then spent a week and a half going Austin-San Antonio-Permian Basin-El Paso.
Over at Project Syndicate: For a while the best book on the macroeconomic catastrophe that struck the North Atlantic starting in 2007 was Gary Gorton's Slapped by the Invisible Hand. Them for a while the best book was Alan Blinder's After the Music Stopped. Now these have been superseded by two: the extremely-observant sensible Tory Martin Wolf's The Shifts and the Shocks; and my friend, patron, teacher, and (until the last reshuffle) office neighbor Barry Eichengreen 's Hall of Mirrors. Read and grasp the messages of both of these, and you are in the top 0.001% of the world in terms of understanding what has happened to us--and what the likely scenarios are for what comes next.
"[Richard Duke of] York ran into severe difficulty in early 1456.... His authority was almost visibly ebbing away. In public he was scorned: a display of five severed dogs’ heads was erected on Fleet Street in London in September, with each dog’s dead mouth bearing a satirical poem against York, 'that man that all men hate'...”
Trying to construct the Just City in the Sewer of Dionysios II:
...and you urge me to aid your cause so far as I can in word and deed. My answer is that, if you have the same opinion and desire as he had, I consent to aid your cause; but if not, I shall think more than once about it.
Now what his purpose and desire was, I can inform you from no mere conjecture but from positive knowledge. For when I made my first visit to Sicily, being then about forty years old, Dion was of the same age as Hipparinos is now, and the opinion which he then formed was that which he always retained, I mean the belief that the Syracusans ought to be free and governed by the best laws. So it is no matter for surprise if some God should make Hipparinos adopt the same opinion as Dion about forms of government. But it is well worth while that you should all, old as well as young, hear the way in which this opinion was formed, and I will attempt to give you an account of it from the beginning. For the present is a suitable opportunity.
The School of Athens, Plus Gods and Robots...
Jo Walton: The Just City
...has heard the prayers of all her worshipers through the ages who have read Plato's Republic.... So she summons them all to a volcanic island... doomed to be lost to eruption... ensuring that her tampering... will not unduly disrupt the future, which will only dimly remember the island as Atlantis. In this place, men and women from all times and places set to making a place for the children whom they will raise to be philosopher kings....
I am once again out of DeLong Smackdowns of sufficiently high quality...
That means that it is time to (shudder) read the next page in chapter 11 of David Graeber's Debt: My First 5000 Mistakes.
But I cannot face it.
However, a correspondent sends me a piece from an extremely sharp observer--Ann Leckie, author of the devastatingly-good Ancillary Justice.
She worries that the rot in the book begins much earlier than chapter 11:
From Perry Anderson (1976): Considerations on Western Marxism: "The consequence of this impasse...
...was to be the studied silence of Western Marxism in those areas most central to the classical traditions of historical materialism: scrutiny of the economic laws of motion of capitalism as a mode of production, analysis of the political machinery of the bourgeois state, strategy of the class struggle necessary to overthrow it. Gramsci is the single exception to this rule--and it is the token of his greatness, which sets him apart from all other figures in this tradition....
The raw ingredients out of which J.R.R. Tolkien fashioned The Lord of the Rings are equal parts Norse-Anglo-Saxon-Germanic myth, chivalric romance, and Christian apocalyptics (evil personified and mighty, but also powerful guardian spirits, and over all a God who arranges things so that the highest prizes fall to those who suffer). The mix is extraordinarily powerful.
Over at Democracy Journal:
In 1980, the year Ronald Reagan won his first landslide presidential victory, pollsters at National Opinion Research Corporation asked Americans whether they thought, as Reagan did, that ‘too much’ was being spent on welfare, health, education, environmental, and urban programs. Only 21 percent did—the same percentage as had answered that way in 1976. The number that favored ‘keeping taxes and services about where they are’ was a healthy plurality, 45 percent—the exact same result as in 1975. READ MOAR
From Perry Anderson (1976): Considerations on Western Marxism: "The consequence of this impasse...
...was to be the studied silence of Western Marxism in those areas most central to the classical traditions of historical materialism.... Gramsci is the single exception to this rule--and it is the token of his greatness, which sets him apart from all other figures in this tradition.... For over twenty years after the Second World War, the intellectual record of Western Marxism in original economic or political theory proper--in production of major works in either field--was virtually blank....
Over at Equitable Growth: These days, when people come to me and ask if I will run a reading course for them on Karl Marx, this is what I tend to say:
The world is divided into those who take Karl Marx's work seriously and those who do not.
On the one hand, those who do not take Karl Marx's lifetime work-project seriously are further divided into three groups:
Those who ignore Marx completely.
Those who use selected snippets from his work as Holy Texts, and
Those modern "western Marxists" who find inspiration in the works that Karl Marx wrote exclusively before he was thirty. READ MOAR
What is best in life?
What is best in life is to spend the 11 hours of a Northern Hemisphere polar winter's night one spends in the belly of an A340-300 in transit from SFX to ZRH (a) eating Swiss chocolate, and (b) reading Barry Eichengreen's (2015) brilliant and superb Hall of Mirrors: The Great Depression, The Great Recession, and the Uses-and Misuses-of History (Oxford: Oxford University Press: 0199392005).
More--hopefully much more--to follow...
Understanding the career of William the Marshal, Comes Pembrokensis jure uxoris Isobel de Clare:
[I]t is naive to suppose that the [Supreme] Court's present difficulties could be cured by appointing Justices determined to give the Constitution its true meaning,' to work at 'finding the law' instead of reforming society. The possibility implied by these comforting phrases does not exist.... History can be of considerable help, but it tells us much too little about the specific intentions of the men who framed, adopted and ratified the great clauses. The record is incomplete, the men involved often had vague or even conflicting intentions, and no one foresaw, or could have foreseen, the disputes that changing social conditions and outlooks would bring before the Court. Robert Bork, Fortune December 1968 p.140-1....
As I went further back into Mr. Bork's intellectual history, I discovered that the arguments in his most recent book followed a formula developed in his earlier writings... a lapsarian pattern.... A state of corruption and decay is identified in some institution or area of law. The rot is traced to a particular departure from the proper state of affairs, a willful violation of an authoritatively decreed scheme of things. A method is prescribed by Mr. Bork which will allow us to escape our current fallen state and return to a condition of righteousness. Mr. Bork speaks strongly in favour of his method, pronouncing it 'inescapable' or 'unavoidable.'... Eventually, he falls silent for a while, only to emerge in two or three years with some new, and newly ineluctable, redemptive method. The process then repeats itself... in the past he has been, successively, a libertarian, a process theorist, a devotee of judicial restraint, a believer in neutral principles, a 'law and economist' and an advocate of two distinct forms of originalism. At the time, each of these theories was offered as being the only possible remedy to the subjectivity and arbitrariness of value judgements in a constitutional democracy and the other theories he had held, or was about to hold, were rejected out of hand...
...eighty miles south of Rome... founded in 529 by St. Benedict of Nursia.... Generations of scribes labored in the abbey’s library to copy texts and preserve artifacts.... From November, 1943, to May, 1944, the hill on which the abbey stood was at the center of one of the largest and bloodiest battles of the Second World War. Monte Cassino was a crucial part of the Gustav Line... ‘fortress strength.’... The Allied command, believing that the Germans were using the abbey as a garrison and ammunition dump, made the controversial decision to bomb Monte Cassino. On February 15, 1944, American B-17s, B-25s, and B-26s dropped more than four hundred tons of explosives on the monastery....
Jo Walton: After Paris: Meta, Irony, Narrative, Frames, and The Princess Bride: [Steven] Brust is definitely writing genre fantasy...
...and he knows what it is, and he is writing it with me as his imagined reader, so that’s great. And he’s always playing with narrative conventions and with ways of telling stories, within the heart of genre fantasy--Teckla is structured as a laundry list, and he constantly plays with narrators, to the point where the Paarfi books have a narrator who addresses the gentle reader directly, and he does all this within the frame of the secondary world fantasy and makes it work admirably.
Jo Walton: After Paris: Meta, Irony, Narrative, Frames, and The Princess Bride: "I am not the intended audience for William Goldman’s The Princess Bride....
I think Goldman wanted to write something like a children’s book with the thrills of a children’s book, but for adults. Many writers have an imaginary reader, and I think Goldman’s imaginary reader for The Princess Bride was a cynic who normally reads John Updike, and a lot of what Goldman is doing in the way he wrote the book is trying to woo that reader. So, with that reader in mind, he wrote it with a very interesting frame. And when he came to make it into a movie, he wrote it with a different and also interesting frame. I might be a long way from Goldman’s imagined reader, but I am the real reader. I love it....
Timothy Noah (2007): Has Jonah Goldberg gone soft on Hillary?: "Her name's been removed from his forthcoming book's subtitle...
Three months ago, I speculated that Jonah Goldberg's forthcoming book, then titled Liberal Fascism: The Totalitarian Temptation From Mussolini to Hillary Clinton, was the victim of a swift and violent paradigm shift. The 2006 elections and the right's critical drubbing of Dinesh D'Souza's The Enemy at Home: The Cultural Left and Its Responsibility for 9/11--which proposed a strategic alliance between Muslim theocrats and the American right against the degenerate American left—had rendered conservatism's lunatic fringe suddenly unfashionable. This couldn't, I thought, be good news for a book that portrayed Hillary Clinton as a goose-stepping brownshirt.
Weekend Reading: Michael Berube (1996): Review of Dinesh D'Souza, "The End of Racism", Transition http://www.jstor.org/stable/2935241?
Strolling through the Detroit International Airport on my way to my parents' home in Virginia Beach, I came upon a newsstand-bookstore that was devoting eight or ten shelves of space-roughly one-quarter, I believe, of its "new bestsellers" wall-to Dinesh D'Souza's The End of Racism. I had heard a great deal about the book before it was published, and had just recently been asked (twice, actually) by the Chicago Tribune to re- view the thing. I declined, partly on the grounds that I've already read more D'Souza than any human should, having perused both Illiberal Education (1991) and his rarely mentioned first (and best) effort, Falwell: Before the Millennium (1984). That's the book where D'Souza writes:
listening to Falwell speak, one gets a sense that something is right about America, after all.
Live Multi Bit Rate Player (1:16 video from September 19, 2014)
Over at the
Grauniad Guardian: Why is Thomas Piketty's 700-page book a bestseller? I like Thomas Piketty’s Capital in the Twenty-First Century a lot. It follows Larry Summers’s advice – which I have always thought wise--that the further ahead in time we want to forecast, the further back in time we should look. It deals with very big and important questions. It takes a broad moral-philosophical view, rather than a narrow technical-economist view. It combines history, quantitative estimation, social science theory, and a deep concern with societal welfare in a way that is too rare these days.
Andrew Flowers: Martin Wolf’s Grand Theory Of Global Financial Disorder: "As the saying goes (sort of)...
...They had a favorite hammer, so every problem looked like a nail. For Martin Wolf... his hammer is 'global imbalances'.... The Shifts and the Shocks: What We’ve Learned--and Have Still to Learn--from the Financial Crisis... is a great read... will be unsettling to anyone who thinks the financial system is any more stable.... Global imbalances are the patient zero of financial crises, according to Wolf. And Wolf has swung this hammer before.... Wolf does argue smartly for other reforms, but you get the feeling that global imbalances explain everything. Might financial regulation at the domestic level, or China’s investment-heavy mercantilist model, or the skewed incentives of corporate managers, or the Federal Reserve’s monetary policy, or... any number of other factors also play a role? Perhaps.
Martin would say– correctly–the global imbalances have been an important part of every story in and by which things have gone badly wrong. Without global imbalances, either things would not have gone wrong or things would've gone wrong in a different, and probably less serious, Way.
That does not mean that there is any easy way to resolve global imbalances. Nevertheless, what Larry Summers said 15 years ago is still true: with global imbalances, they will be resolved, but they can be resolved in either of two ways--by balancing up, or bouncing down.
**Jo Walton: "In dialogue with his century":
I was getting a book off the shelf last night and I came eye to eye with the hardcover of Patterson's biography of Heinlein: Robert A Heinlein: In Dialogue With His Century.
And I realised what a stupid title it is.
Especially for Heinlein, who seemed to write things that went straight from the nineteenth century to the future without pausing for the present:
Twentieth Century: Cars, planes, electricity!
Robert A. Heinlein: The nineteenth century is over! Soon we will be going to the stars!
Twentieth Century: The depression, WWII!
Robert A. Heinlein: To the stars! First we'll settle the solar system. Martians!
Twentieth Century: Cold War.
Robert A. Heinlein: Bomb shelters!
Twentieth Century: Boop, be doop, be doop, be doodle-ooo, boop, be boop, be boop, be doodle-ooo, boop, be doop, be doop, be doodle-eye-doo!
Robert A. Heinlein: The nineteenth century is over! Soon we can have sex with our mothers and our clones! Also, come on, hey, we haven't even got to the moon yet, and I want to have sex with Martians!
Twentieth Century: Apollo XI. Done with space now. Boop be doop be doop...
Robert A. Heinlein: The stars!
Twentieth Century: Computers!
Robert A Heinlein: The stars! Also, more hot competent red-heads, are you listening?
Twentieth Century: If one of us isn't listening, are you sure it's me?
Keith Humphreys: Weekend Film Recommendation: The Spy Who Came in From the Cold:
What the hell do you think spies are? Moral philosophers measuring everything they do against the word of God or Karl Marx? They’re not! They’re just a bunch of seedy, squalid bastards like me: little men, drunkards, queers, hen-pecked husbands, civil servants playing cowboys and Indians to brighten their rotten little lives.
So says disillusioned British secret agent Alec Leamas (Richard Burton) in perhaps the best effort to adapt a John le Carré novel to the big screen: 1965′s The Spy Who Came in From the Cold. The serpentine plot concerns a burnt-out espionage agent who enters a downward spiral of booze, self-hatred and lost faith after a disastrous mission in Berlin. But then it turns out that Leamas’ decline and despair is a ruse (?) play-acted at the behest of his superiors. As planned, he is recruited by the other side and ends up trying to discredit East German intelligence head Hans-Dieter Mundt (A cold, effective Peter van Eyck). Leamas undermines the ex-Nazi by feeding false (??) information to Mundt’s ambitious, Jewish deputy (Oskar Werner, very strong here). It’s a difficult, high-risk mission, but Leamas knows that his boss back home is 100% behind him (???).
George Orwell: Confessions of a Book Reviewer: "In a cold but stuffy bed-sitting room...
...littered with cigarette ends and half-empty cups of tea, a man in a moth-eaten dressing-gown sits at a rickety table, trying to find room for his typewriter among the piles of dusty papers that surround it. He cannot throw the papers away because the wastepaper basket is already overflowing, and besides, somewhere among the unanswered letters and unpaid bills it is possible that there is a cheque for two guineas which he is nearly certain he forgot to pay into the bank. There are also letters with addresses which ought to be entered in his address book. He has lost his address book, and the thought of looking for it, or indeed of looking for anything, afflicts him with acute suicidal impulses.
At the start of summer I put a large pile of books on my desk. "I will write reviews of these this summer", I thought. "They all deserve to be reviewed, and it will be quick and easy to do".
Not going to happen.
I therefore declare book-review bankruptcy and formally and permanently disavow all intention of ever writing reviews of:
John Maynard Keynes (1926): The End of Laissez-Faire } "Panarchy - Panarchie - Panarchia - Panarquia - Παναρχία - 泛无政府主义: I The disposition towards public affairs...
...which we conveniently sum up as individualism and laissez-faire, drew its sustenance from many different rivulets of thought and springs of feeling. For more than a hundred years our philosophers ruled us because, by a miracle, they nearly all agreed or seem to agree on this one thing. We do not dance even yet to a new tune. But a change is in the air. We hear but indistinctly what were once the clearest and most distinguishable voices which have ever instructed political mankind. The orchestra of diverse instruments, the chorus of articulate sound, is receding at last into the distance.
Just as I finish writing up my office-hour thoughts on a framework for organizing one's thoughts on Friedrich A. von Hayek and twentieth century political economy, along comes the esteemed Lars P. Syll with a link to an excellent piece I had never read on the same thing by Equitable Growth's Fearless Leader:
Robert Solow (2012): Hayek, Friedman, and the Illusions of Conservative Economics "The Great Persuasion: Reinventing Free Markets since the Depression By Angus Burgin (Harvard University Press, 303 pp., $29.95) JUST AS I WAS wondering how to start this review...
...along came the Sunday New York Times Magazine with a short article by Adam Davidson with the title “Made in Austria: Will Friedrich von Hayek be the Tea Party’s Karl Marx?” One Tea Party activist reported that his group’s goal is to fill Congress with Hayekians. This project is unlikely to go smoothly if the price of admission includes an extensive reading of Hayek’s writings. As Davidson remarks, some of Hayek’s ideas would not go down well at all with the American far right: among them is a willingness to entertain a national health care program, and even a state-provided basic income for the poor.
Graydon Saunders (2014): The March North
You will really, really, really like this thing if this is the kind of thing you like. I do...
"They're sending us a Rust, somebody who goes by Blossom, and Halt."
"Halt?" Twitch says the name again, emphasis different. Not supposed to be anything surprising in the monthly update. "What could we possibly have done to deserve Halt?" Twitch might be appalled.
"Five years in fifty means they've got to send Halt somewhere." Which is just true, not an explanation. Not when Independents don't serve with the Line--there's five centuries of custom back of that.
"West Wetcreek isn't somewhere. Even back in the day, Westcreek wasn't anywhere." Twitch was born here, says this like the laws of the universe are being changed. Twitch don't like it.
Buy it. Buy it now. Buy three and give two away...
Rick Perlstein: The Invisible Bridge: The Fall of Nixon and the Rise of Reagan
Very brief preview:
Rick Perlstein: "To me, Reagan’s brand of leadership was what I call 'a liturgy of absolution'....
...Who wouldn’t want that? But the consequences of that absolution are all around us today. The inability to contend with climate change. The inability to call elites to account who wrecked the economy in 2008. The inability to reckon with the times when we fall short.... When Samantha Power is chosen to be ambassador to the U.N.; she’d written a magazine article in 2003 in which she wrote American foreign policy needed a 'historical reckoning' for crimes 'committed or sponsored'. That’s the kind of reckoning we were having in the 1970s, with the Church committee. Marco Rubio brought this up in her confirmation hearing and asked her for examples of the crimes, and the response was that America is the greatest country in the world and has nothing to apologize for. So that’s where we’re at today.... He believed strongly that moderates had no place in the Republican Party.... Pundits then and now believed the problem for Republicans was an inability to broaden their base. Reagan always insisted on the opposite..."
Max Gladstone: Choice of the Deathless:
Battle demons and undead attorneys, and win souls to pay back your student loans! At the elite demonic-law firm of Varkath Nebuchadnezzar Stone, you'll depose a fallen god, find romance, and maybe even make partner, if you don't lose your own soul first.
"Choice of the Deathless" is a necromantic legal thriller by Max Gladstone, Campbell Award-nominated author of Three Parts Dead and Two Serpents Rise. The game is entirely text-based--without graphics or sound effects--and powered by the vast, unstoppable power of your imagination.
- Explore a fantasy realm with a rich and evolving backstory, based on the novels published by Tor Books.
- Play as male or female, gay or straight, dead or alive (or both).
- Build your career on carefully reasoned contracts, or party all night with the skeletal partners at your firm.
- Navigate intrigue and mystery in a world of scheming magicians and devious monsters.
- Look for love in at least some of the right places.
- Balance student loans, sleep, daily commute, rent payments, and demonic litigation—hey, nobody said being a wizard was always fun.
Karl Polanyi's The Great Transformation is certainly the right place to start in thinking about "neoliberalism" and its global spread. But you are right to notice and do need to keep thinking that Polanyi is talking about pre-World War II classical liberalism, and that modern post-1980 neoliberalism is somewhat different.
First, as I, at least, see it, there are three strands of thought that together make up the current of ideas and policies that people call "neoliberalism":
Reading Francis Parkman's Montcalm and Wolfe and remembering one reason why I was so annoyed at Edward Said's Orientalism. The rhetorical moves that Said denounces as orientalist are made by Parkman, but they are not directed at Beijing or Delhi or Baghdad or Cairo: they are directed at Paris. Said never bothered to read deeply enough in the British literature on history and in the history of British political attitudes to realize that what he objected to was not specifically orientalist but rather British nationalist, with its core expression being: "No Popery or wooden shoes!"...
From John Maynard Keynes's 1926 pamphlet The End of Laissez-Faire13: "The economists... furnished the scientific doctrine...
by which the practical man could solve the contradiction between egoism and socialism which emerged out of the philosophising of the eighteenth century and the decay of revealed religion. But... I hasten to qualify it. This is what the economists are supposed to have said. No such doctrine is really to be found in the writings of the greatest authorities. It is what the popularisers and the vulgarisers said.... The language of the economists lent itself to the laissez-faire interpretation. But the popularity of the doctrine must be laid at the door of the political philosophers of the day, whom it happened to suit, rather than of the political economists.
Over at Equitable Growth: Chris Blattman: Links to Reviews of James Scott's "Seeing Like a State": "Daron Acemoglu and James Robinson...
World War I Reading List: Late Summer 2014:
As an emergency measure, given the continued shortage of high-quality DeLong smackdowns on the internet, on to the next Kindle screen of chapter 11 of David Graeber's Debt: The First 5000 Years:
This, too, is double-plus unhood, as Winston Smith might say...
Over at Equitable Growth: I confess that I do not understand the recent BIS Annual Report. I have tried--I have tried very hard--to wrap my mind around just what the BIS position is. But I have failed.
So let me try to lay out how I see it--where I think we are, and what I think the three live macroeconomic-policy positions are:
First, where we are:
We had in the late-1990s a high-pressure full-employment low-inflation tight-fiscal equilibrium. It was, however, unsustainable: based on exaggerated beliefs not about the utility but the profitability of companies based on the high-tech computer and communications technologies of the 1990s. When expectations adjusted to the reality of profitability, the high investment part of the 1990s boom went away, and the economy fell into the minor recession of the early 2000s. READ MOAR:
I have decided that "Thursday Idiocy" adds too much negativity to this blog. Besides: it depresses me. So I want to fold the negativity into the Monday Smackdowns, and use Thursday to blog from the future...
Here is something from 2114:
Consider twentieth-century American science fiction writer Robert A. Heinlein.
John L. Davidson sends us to Wikipedia: Personal Memoirs of Ulysses S. Grant - Wikipedia: "The Personal Memoirs of Ulysses S. Grant is an autobiography...
...of Ulysses S. Grant, the 18th President of the United States, focused mainly on his military career during the Mexican-American War and the American Civil War. Written as Grant was dying of cancer in 1885, the two-volume set was published by Mark Twain shortly after Grant's death. Twain created a unique marketing system designed to reach millions of veterans with a patriotic appeal just as Grant's death was being mourned. Ten thousand agents canvassed the North, following a script Twain had devised; many were themselves veterans who dressed in their old uniforms. They sold 350,000 two-volume sets at prices from $3.50 to $12 (depending on the binding). Each copy contained what looked like a handwritten note from Grant himself. In the end, Grant's widow Julia received about $450,000, suggesting a gross royalty before expenses of about 30%.
Adam Smith: Smith: Wealth of Nations, Book I, Chapter 8: "The liberal reward of labour...
...as it encourages the propagation, so it increases the industry of the common people.... A plentiful subsistence increases the bodily strength of the labourer, and the comfortable hope of bettering his condition, and of ending his days perhaps in ease and plenty, animates him to exert that strength to the utmost. Where wages are high, accordingly, we shall always find the workmen more active, diligent, and expeditious, than where they are low; in England, for example, than in Scotland; in the neighbourhood of great towns, than in remote country places. Some workmen, indeed, when they can earn in four days what will maintain them through the week, will be idle the other three. This, however, is by no means the case with the greater part.
Alfred Marshall (1885): Cambridge Inaugural Lecture: The Present Position of Economics "It is commonly said that those who set the tone of economic thought...
...in England in the earlier part of the century were theorists who neglected the study of fact, and that this was specially an English fault. Such a charge seems to be baseless. Most of them were practical man with a wide and direct personal knowledge of business affairs. They wrote economic histories that are in their way at least equal to anything that has been done since. They brought about the collection of statistics by public and private agencies and that admirable series of parliamentary inquiries, which have been a model for all other countries, and have inspired the modern German historic school with many of their best thoughts.
I remember that I found this, by Amartya Sen, totally convincing when I first read it 32 years ago. And I still find it totally convincing today:
Amartya Sen: Just Deserts: "This book... a collection of [P.T.] Bauer’s essays...
...gives an excellent account of his main theses on development policy and international relations. It also presents his approach to economic equality and inequality in general, and places his discussions of development against the background of some of the broadest issues of political economy.... I shall argue that Bauer’s approach—in spite of its power and appeal—is fundamentally flawed, and that his analysis cannot bear the weight of the conclusions that he rests on it.
The buzz from those who have read the Advance Readers' Copies of Rick Perlstein's The Invisible Bridge: The Fall of Nixon and the Rise of Reagan is that it is truly superb--even better than his Goldwater book Before the Storm and his Richard Nixon book Nixonland...