After Piketty: The Agenda for Economics and Inequality http://amzn.to/2q0TevJ
Themes worth noting from the After Piketty CUNY launch event—that I missed, being on the wrong coast.
After Piketty: The Agenda for Economics and Inequality http://amzn.to/2q0TevJ
Themes worth noting from the After Piketty CUNY launch event—that I missed, being on the wrong coast.
Matt O'Brien: Liberal democracy is not dead, but it's not well...
...From Hungary to Poland to even the United States, far-right populists have won power, and, in a few cases, are busy consolidating it. In some sense, it shouldn't be too surprising that the worst economic crisis since the 1930s has led to the worst political crisis within liberal democracies since the 1930s. At the same time, though, it's not as if right-wing nationalists are winning everywhere. Just in the last six months, they've come up short in Austria, the Netherlands and now France. So why is it that these abundant raw materials for a far right — stagnant incomes and increased immigration—haven't always turned into a far right that wins elections? I talked to Harvard's Daniel Ziblatt, whose new book Conservative Parties and the Birth of Democracy http://amzn.to/2qxQXeJ traces the history of how the center-right often determines whether democracy lives or dies, about what's behind our populist moment and just how close a parallel we're running to some of history's darkest episodes.
His answer: It depends.
Eric Miller: The Unnamed Behemoth: Review of "Public Intellectuals in the Global Arena" http://amzn.to/2pSZyVd: "Deep learning eloquently brought to bear on the contemporary moment has, quite evidently, not been enough to shore up the aging foundations of our republic... https://www.commonwealmagazine.org/unnamed-behemoth
...And a live-from-the-West-Wing Twitter feed is not likely to advance our fortunes, either.... Is the liberal democratic tradition up to the challenge—the challenge of disciplining an economic order that exists not to prosper democracy but itself? On such crucial questions this volume sounds an uncertain note—and a rather quiet uncertain note at that.... No thoroughgoing leftists (seemingly) number among the contributors—none, that is, disposed to warn of enlarging catastrophic conflict between democracy and capital...
(1) But I thought I had done so! Was I too elliptical?
Today is our publication day!
Heather Boushey, J. Bradford DeLong, and Marshall Steinbaum, eds.: After Piketty: The Agenda for Economics and Inequality http://amzn.to/2qgPIRE (Cambridge: Harvard University Press: 0674504771).
Let's see if I can maintain a post an hour today on this, shall we?
Here is my amazon review:
As one of the co-editors of this book, I know it very well. I am greatly pleased with how this project came out—we have very serious people, as Bob Solow would put it, writing very serious takes on what Thomas Piketty has accomplished, where he has gone wrong, and what gaps remain to be investigated by others. Social scientists thinking of citing on, working along lines related to, or drawing on Piketty should certainly read this book. People who have read Capital in the Twenty-First Century who are curious about how serious people are reacting to and assessing the book should read it as well.
Milken Institute: Globalization in the Crosshairs: Tuesday, May 2, 2017 / 2:30 pm-3:30 pm: Beverly Hills Ballroom http://www.milkeninstitute.org/events/conferences/global-conference/2017/panel-detail/6801
Tax Reforms http://www.igmchicago.org/surveys/tax-reforms:
UPDATE: Alexia Fernández Campbell: "When I contacted the two economists whose opinions differed, they said that their answers were an error, and that they actually disagreed with the claim..." https://www.vox.com/policy-and-politics/2017/5/4/15536394/american-economists-trump-tax-plan
I know of no works of theory or empirical analysis that says that the one page of tax reform talking points set out by Steve Mnuchin and Donald Trump is a "plan". And I know of no works of theory or empirical analysis that could lead a rational Bengt Hölmstrom or a rational Ken Judd to say that they "strongly agree" with the proposition that that one-page of talking points could be implemnted in a way that would likely pay for itself through higher economic growth: Can anybody explain to me why Bengt Hölmstrom and Ken Judd are being so unprofessional? Can anybody elucidate their thinking to me?
Excerpt from J. Bradford DeLong, Heather Boushey, and Marshall Steinbaum: After Piketty http://amzn.to/2paJ5LA: “Capital in the Twenty-First Century,” Three Years Later http://equitablegrowth.org/research-analysis/capital-in-the-twenty-first-century-three-years-later/: "Thomas Piketty’s Capital in the Twenty-First Century... [C21], is a surprise best seller of astonishing dimensions.
Its enormous mass audience speaks to the urgency with which so many wish to hear about and participate in the political-economic conversation regarding this Second Gilded Age in which we in the Global North now find ourselves enmeshed. C21’s English-language translator, Art Goldhammer, reports in Chapter 1 that there are now 2.2 million copies of the book scattered around the globe in thirty different languages. Those 2.2 million copies will surely have an impact. They ought to shift the spirit of the age into another, different channel: post-Piketty, the public-intellectual debate over inequality, economic policy, and equitable growth ought to focus differently.
Project Syndicate: J. Bradford DeLong: Where US Manufacturing Jobs Really Went: In the two decades from 1979 to 1999, the number of manufacturing jobs in the United States drifted downward, from 19 million to 17 million. But over the next decade, between 1999 and 2009, the number plummeted to 12 million. That more dramatic decline has given rise to the idea that the US economy suddenly stopped working – at least for blue-collar males – at the turn of the century... Read MOAR at Project Syndicate
Eduardo Porter: Good evening. Thanks for coming. There has been a lot of sturm and drang over the last—what?—98 days. Today I read that the administration is preparing an executive order to start the process for the U.S. to leave NAFTA, which was one of Mr. Trump's campaign promises. However, over the past 98 days I have come to realize that perhaps President Trump did not really mean all of the things he said on the campaign trail.
People: David Autor, Brad DeLong, Ann Harrison, Eduardo Porter, Paul Krugman
Things we could have talked about:
Equitable Growth in Conversation: A recurring series where we talk with economists and other social scientists to help us better understand whether and how economic inequality affects economic growth and stability. Buy After Piketty: The Agenda for Economics and Inequality
Heather Boushey, Brad DeLong, and Marshall Steinbaum http://equitablegrowth.org/research-analysis/equitable-growth-in-conversation-brad-delong-and-marshall-steinbaum/: After Piketty: The Agenda for Economics and Inequality: Heather Boushey: I am so excited that we are here finally to discuss After Piketty. Many of the people who may be reading this column may not actually have kept a copy of Piketty on their night stand and may not remember all the ins and outs, so I want to start off our conversation by asking you, first, what are the key takeaways from Piketty about the effects of inequality on our economy and our society, and second, how does the election of Donald Trump strengthen or weaken Piketty’s analytical, political, economic case? Read MOAR at Equitable Growth
April 27, 2017 at 08:24 AM in Economics: History, Economics: Inequality, Long Form, Moral Responsibility, Philosophy: Moral, Political Economy, Politics, Streams: (BiWeekly) Honest Broker, Streams: Cycle, Streams: Economics, Streams: Equitable Growth, Streams: Highlighted, Twentieth Century Economic History | Permalink | Comments (7)
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Alasdair Macintyre, at least in his After Virtue mode, believes that good civilizations are ones with moral consensus led by prophets, rather than ones with moral confusion managed by managers. It is Macintyre’s belief that we should hope for a civilization led by Trotskys (less preferred) or St. Benedicts (more preferred), but in either event it is to be preferred to managerial Keyneses.
I think the basic problem is that you expect—in some sense—that the market economy should be "fair". It isn't. In fact, it cannot be.
The market economy rewards those who happen to:
We are, historically, both too late and too early for the Barrington Moore Project to make sense: both pre-Enlightenment freedoms and post mass-politics totalitarian dangers...
Weekend Reading/Hoisted (2010): The Barrington Moore Problematic and Its Discontents: John Stuart Mill was perhaps the last who was substantially at home in and competent in all the branches of moral philosophy.
Afterwards young scholars paying their dues found it impossible to learn everything and still have time to write anything.
April 15, 2017 at 05:45 PM in Berkeley, History, Long Form, Moral Responsibility, Philosophy: Moral, Political Economy, Politics, Streams: (BiWeekly) Honest Broker, Streams: (Tuesday) Hoisted from Archives, Streams: (Weekend) Reading, Streams: Cycle, Streams: Economics, Streams: Equitable Growth, Streams: Highlighted | Permalink | Comments (3)
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Stephen Cohen and Brad DeLong (2005): Shaken and Stirred https://www.theatlantic.com/magazine/archive/2005/01/shaken-and-stirred/303666/: The United States is about to experience economic upheaval on a scale unseen for generations. Will social harmony be a casualty?
It has become conventional wisdom that class politics has no legs in the United States today—and for good reason. Regardless of actual circumstance, an overwhelming majority of Americans view themselves as middle-class. Very few have any bone to pick with the rich, perhaps because most believe they will become rich—or at least richer—someday. To be sure, the issues of jobs and wages inevitably make their way into our political campaigns—to a greater or lesser extent depending on where we are in the business cycle. But they seldom divide us as much as simply circle in and out of our political life. Lately anxiety about the economy has been palpable, but for the most part it has not evolved into anger or found specific scapegoats.
April 15, 2017 at 08:14 AM in Economics: Growth, Economics: History, Economics: Inequality, Economics: Information, Long Form, Philosophy: Moral, Political Economy, Politics, Streams: (BiWeekly) Honest Broker, Streams: (Weekend) Reading, Streams: Cycle, Streams: Economics, Streams: Equitable Growth, Streams: Highlighted | Permalink | Comments (2)
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The key seems to me to build intelligent machines that will assist workers in labor-intensive industries, rather than build intelligent machines that will eliminate workers in capital-intensive industries. The first is a clear win. The second can be a major loss if the things made in capital-intensive industries are close enough substitutes for the products of labor-intensive industries to greatly drop their value.
But what I have to say so far is limited.
Weekend Reading: Barry Eichengreen and Bradford DeLong (2012): New preface to Charles Kindleberger, "The World in Depression 1929-1939": Charles Kindleberger’s classic book on the Great Depression was originally published 40 years ago. In the preface to a new edition, two leading economists argue that the lessons are as relevant as ever:
The parallels between Europe in the 1930s and Europe today are stark, striking, and increasingly frightening... http://voxeu.org/article/new-preface-charles-kindleberger-world-depression-1929-1939
Live from the Human Race Long-Term Planning Bureau: Milken Institute: Global Conference 2017: Globalization in the Crosshairs http://www.milkeninstitute.org/events/conferences/global-conference/2017/program-detail: "May 2: 2:00-3:30 PM: In the 20 years leading up to the financial crisis, international trade grew at twice the rate of global output...
Let us start with two texts this morning:
Paul Krugman: Don't Blame Macroeconomics (Wonkish And Petty): "Robert Skidelsky... argues, quite correctly in my view, that economists have become far too inward-looking...
...But his prime examples of economics malfeasance are, well, terrible.... [The] more or less standard model of macroeconomics when interest rates are near zero [is] IS-LM in some form.... [And] policy had exactly the effects it was “supposed to.” Now, policymakers chose not to believe this.... And yes, some economists gave them cover. But that’s a very different story from the claim that economics failed to offer useful guidance...
Simon Wren-Lewis: Misrepresenting Academic Economists: "The majority of academic macroeconomists were always against austerity...
Weekend Reading: Jacob S. Hacker and Paul Pierson: Republicans’ Obsession with Tax Cuts for the Rich Drove Their Health Care Plan Over a Cliff: "Somehow, Republicans managed to craft a policy that simultaneously...
...raised premiums and out-of-pocket costs, lowered the quality of insurance plans, increased the chances of insurance market death spirals, put new pressure on state budgets, and massively increased the ranks of the uninsured.
Weekend Reading: Harold Meyerson: How California Hopes to Undo Trump: "America’s mega-state is now clearly its leftmost, too...
...and on social insurance, climate change, and immigrant rights, it has more capacity and desire to defeat Republican reaction than any other institution.
Brad DeLong: Interview: The Politics Guys: "Economic inequality, economic growth, why this is the best time ever to be poor (in the United States, at least)...
Must-Watch: Stephen Shortell, Jesse Choper, Brad DeLong, Ann O'Leary, Ann Marie Marciarille, and John Ellwood (2012): Reactions to the Supreme Court's Ruling on the Affordable Care Act:
Let me start by saying that I think Unlearning Economics is almost entirely wrong in his proposed solutions.
Indeed, he does not seem especially knowledgeable about his cases. For example:
March 26, 2017 at 08:12 AM in Economics: Finance, Economics: Macro, Long Form, Moral Responsibility, Obama Administration, Philosophy: Moral, Political Economy, Politics, Streams: (BiWeekly) Honest Broker, Streams: Cycle, Streams: Economics, Streams: Equitable Growth, Streams: Highlighted | Permalink | Comments (16)
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Weekend Reading: Josh Barro: Healthcare: Republicans Lied. They Deserve Punishment: "It's hard to decide which would be the more politically damaging outcome for Republican politicians...
...passing the American Health Care Act, and therefore owning the premium increases and coverage losses it would cause; or not passing the bill, and therefore failing to... "repeal... Obamacare." Each option is a political nightmare... an admission that Republicans cannot deliver what they have promised....
Weekend Reading: Tom Levenson: Why I Hate The NY Times, Part n: "This paragraph [by Margot Sanger-Katz]...
...There is most likely a middle way. Republican lawmakers might be comfortable with a system that shifts more of the costs of care onto people who are sick, if it makes the average insurance plan less costly for the healthy. But making those choices would mean engaging in very real trade-offs, less simple than their talking point.
Live from the Orange-Haired Baboon Cage: AP: No House vote on GOP health care bill today: "Canceling Thursday’s vote would amount to a significant political setback for Trump and House Speaker Paul Ryan...
What Does President Donald Trump Mean for the US Economy?: As the moment Trump took office, it seemed as though Trump could have become any one of three figures.
We really did not know which.
We had very little real indication of what policies Trump will follow, or what kind of president he would be. The US press corps had done an extraordinarily poor job in making the issues at stake in this election clear and transparent—not just to the mass audiences, but even to the most sophisticated of audiences, those that are very interested in asset prices and how they're affected by government policies.
Those three were:
Q: Prominent economists and politicians often say that free trade will benefit America in the long run. Many Americans disagree strongly. What is your take on this situation?
A: Well, typically and roughly, the average import we buy from other countries we get for 30% off--we use foreign currency that costs us $1.40 to purchase goods and services made abroad that would cost us $2.00 worth of time, energy, resources and cash to make at home.
But there's more.
Must-Read: Bob Christie: 380,000 Arizonans May Lose Medicaid: "The report looks at the patients who gained coverage under a Medicaid expansion pushed through in 2013 by former Gov. Jan Brewer...
2014: On Nicholas Lemann's Partial Recantation of His "Neoliberalism": On the career of the Washington Monthly: Nicholas Lemann: A bygone age…:
Live from the Orange-Haired Baboon Cage: Erik Loomis: Dumbasses of America: "The genre of 'let’s talk to idiotic white voters who support Trump even though he will decimate their lives' is already more stale than bread baked on November 8...
...However, it does lead to the occasional special anecdote that truly sums up the stupidity of many white people:
(2007): Barbara Ehrenreich's "Nickel and Dimed": Hoisted from the Archives: "I did not even loathe Nickel and Dimed because of the strong pains Barbara Ehrenreich took in her prose to demonstrate that she was not one of "them"...
Back in 1981, Lee Atwater said:
Now you don't quote me on this. You start out in 1954 by saying 'n_gger, n_gger, n_gger'. By 1968... that hurts you.... You... get... abstract... talk... about... cutting taxes and all these things... totally economic things, and the byproduct often is Blacks get hurt worse than whites.... If it is getting that abstract and that coded, that we're doing away with the racial problem one way or the other...
March 17, 2017 at 05:18 PM in Economics: History, History, Long Form, Moral Responsibility, Philosophy: Moral, Political Economy, Politics, Streams: (BiWeekly) Honest Broker, Streams: Cycle, Streams: Economics, Streams: Equitable Growth, Twentieth Century Economic History | Permalink | Comments (3)
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Lyndon Johnson (October 9, 1964): [: Speech at the Jung Hotel, New Orleans]: "Mr. Chairman; Governor McKeithen; your great senior Senator Allen Ellender, my old friend; your fine mayor, Mayor Schiro...
...Mrs. Long; my longtime and my valued friend and colleague, one of the most promising young men in this Nation, Russell Long; Congressman Willis, Congressman Morrison, Congressman Thompson, Congressman Gillis Long--all of whom serve this Nation and this State with great distinction and with credit to Louisiana and the Congress; Mr. Marshall Brown; Mr. Donelon--all my friends in Louisiana:
: As Cosma Shalizi (2010) Says, "The Singularity Is in Our Past": Look at the bleeding edge of urban North Atlantic or East Asian civilization, and you see a world fundamentally unlike any human past. Hunting, gathering, farming, herding, spinning and weaving, cleaning, digging, smelting metal and shaping wood, assembling structures--all of the ‘in the sweate of thy face shalt thou eate bread’ things that typical humans have typically done since we became jumped-up monkeys on the East African veldt--are now the occupations of a small and dwindling proportion of humans.
Cosma Shalizi (2010): The Singularity in Our Past Light-Cone (November 28) http://bactra.org/weblog/699.html
March 15, 2017 at 02:54 PM in Economics: Growth, Economics: History, History, Philosophy: Moral, Political Economy, Politics, Science: Cognitive, Streams: (Tuesday) Hoisted from Archives, Streams: Cycle, Streams: Economics, Streams: Equitable Growth, Streams: Highlighted | Permalink | Comments (5)
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Michael Maggidson (2000_: 1896: John Peter Altgeld: "John Peter Altgeld was born in the German village of Nieder Selters on December 30, 1847...
When he was about three months old, his parents brought him to the United States, settling in Ohio. After a brief stint in the Union Army during the Civil War, Altgeld read the law and was admitted to the bar in 1872. He served as city attorney of Savannah, Missouri and in 1874, was elected county prosecutor. He resigned this post after a year and moved to Chicago, where he established himself as a lawyer. He was married three years later. He soon began investing in real estate and made a small fortune.
There seemed, back in November, two ways the Trump infrastructure fiscal expansion could have gone.
The first was driven by the facts that Trump seemed to have ambitions that were "Pharoahnic", and that Trump had been a real estate developer.
Joseph Ford Cotto: Prominent economists and politicians often say that free trade will benefit America in the long run. Many Americans disagree strongly. What is your take on this situation?
Dr. J. Bradford DeLong: Well, typically and roughly, the average import we buy from other countries we get for 30% off--we use foreign currency that costs us $1.40 to purchase goods and services made abroad that would cost us $2.00 worth of time, energy, resources and cash to make at home.
March 15, 2017 at 01:37 PM in Berkeley, Economics: Growth, Economics: Inequality, Economics: Macro, Long Form, Philosophy: Moral, Political Economy, Politics, Streams: (BiWeekly) Honest Broker, Streams: Cycle, Streams: Economics, Streams: Equitable Growth, Streams: Highlighted | Permalink | Comments (1)
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Should-Read: Paul Demko: White House analysis of Obamacare repeal sees even deeper insurance losses than CBO: "A White House analysis of the GOP plan to repeal and replace Obamacare shows even steeper coverage losses than the projections by the Congressional Budget Office...
Must-Read: Mark Thoma et al.: The Republican American Health Care Act
Mark Thoma: Why the Republican Health Care Plan Is Destined to Fail: "Healthcare often involves large, unexpected expenses...
Weekend Reading: Abraham Lincoln (1854): [Kansas-Nebraska]: "The repeal of the Missouri Compromise, and the propriety of its restoration, constitute the subject of what I am about to say.
...As I desire to present my own connected view of this subject, my remarks will not be, specifically, an answer to Judge Douglas; yet, as I proceed, the main points he has presented will arise, and will receive such respectful attention as I may be able to give them. I wish further to say, that I do not propose to question the patriotism, or to assail the motives of any man, or class of men; but rather to strictly confine myself to the naked merits of the question.
Reading: This paper seems to me to bury the lead--which is that it is the interaction of past slave-raiding and present decolonization that seems to be associated with very low present-day economic productivity. What are the mechanisms that could generate such an association?
Margherita Bottero and Björn Wallace: Is There a Long-Term Effect of Africa's Slave Trades?: "Nunn (2008) found a negative relationship between past slave exports and economic performance within Africa...
Live from the Orange-Haired Baboon Cage: Is there a way to understand this other than as an implicit total admission of defeat and failure by Brownback on his part? Ambassador to FAO is not a job usually taken by U.S. senators and governors...
Kevin Drum: Kansas Governor Sam Brownback Appears Desperate to Get Out of Dodge: "'Brownback is in talks with President Donald Trump’s administration about... an ambassadorship...
Project Syndicate: Trade Deals and Alternative Facts: BERKELEY – In a long recent Vox essay outlining my thinking about US President Donald Trump’s emerging trade policy, I pointed out that a “bad” trade deal such as the North American Free Trade Agreement is responsible for only a vanishingly small fraction of lost US manufacturing jobs over the past 30 years. Just 0.1 percentage points of the 21.4 percentage-point decline in the employment share of manufacturing during this period is attributable to NAFTA, enacted in December 1993.
A half-century ago, the US economy supplied an abundance of manufacturing jobs to a workforce that was well equipped to fill them. Those opportunities have dried up. This is a significant problem: a BIGLY problem. But anyone who claims that the collapse of US manufacturing employment resulted from “bad” trade deals like NAFTA is playing the fool. A BIGLY fool. Read MOAR at Project Syndicate
Weekend Reading: John Maynard Keynes (1938): John Maynard Keynes’s Private Letter to Franklin Delano Roosevelt of February 1, 1938:
To Franklin Delano Roosevelt, 1 February 1938
Private and personal
Dear Mr. President,
You received me kindly when I visited you some three years ago that I make bold to send you some bird’s eye impressions which I have formed as to the business position in the United States. You will appreciate that I write from a distance, that I have not revisited the United States since you saw me, and that I have access to few more sources of information than those publicly available. But sometimes in some respects there may be advantages in these limitations! At any rate, those things which I think I see, I see very clearly.
Looking Forward to Four Years During Which Most if Not All of America's Potential for Human Progress Is Likely to Be Wasted
With each passing day Donald Trump looks more and more like Silvio Berlusconi: bunga-bunga governance, with a number of unlikely and unforeseen disasters and a major drag on the country--except in states where his policies are neutralized.
Nevertheless, remember: WE ARE WITH HER!
The purpose of this weblog is to be the best possible portal into what I am thinking, what I am reading, what I think about what I am reading, and what other smart people think about what I am reading...
"Bring expertise, bring a willingness to learn, bring good humor, bring a desire to improve the world—and also bring a low tolerance for lies and bullshit..." — Brad DeLong
"I have never subscribed to the notion that someone can unilaterally impose an obligation of confidentiality onto me simply by sending me an unsolicited letter—or an email..." — Patrick Nielsen Hayden
"I can safely say that I have learned more than I ever would have imagined doing this.... I also have a much better sense of how the public views what we do. Every economist should have to sell ideas to the public once in awhile and listen to what they say. There's a lot to learn..." — Mark Thoma
"Tone, engagement, cooperation, taking an interest in what others are saying, how the other commenters are reacting, the overall health of the conversation, and whether you're being a bore..." — Teresa Nielsen Hayden
"With the arrival of Web logging... my invisible college is paradise squared, for an academic at least. Plus, web logging is an excellent procrastination tool.... Plus, every legitimate economist who has worked in government has left swearing to do everything possible to raise the level of debate and to communicate with a mass audience.... Web logging is a promising way to do that..." — Brad DeLong
"Blogs are an outlet for unexpurgated, unreviewed, and occasionally unprofessional musings.... At Chicago, I found that some of my colleagues overestimated the time and effort I put into my blog—which led them to overestimate lost opportunities for scholarship. Other colleagues maintained that they never read blogs—and yet, without fail, they come into my office once every two weeks to talk about a post of mine..." — Daniel Drezner
"I now know it is a rising, not a setting, sun" --Benjamin Franklin, 1787
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