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Category: Economics/Business

How Larry Summers became the preeminent critic of the Biden era’s economic consensus

How Larry Summers became the preeminent critic of the Biden era’s economic consensus

Eric Levitz writes: There’s a story that progressives like to tell about Larry Summers. The doyen of Establishment economics is dining out with a populist politician. The two have made it through the meal with minimal awkwardness — their ideological tensions eased by booze and food — when Summers leans back in his chair and offers his left-wing foil a hard-won insight. There are two kinds of political actors in this world: insiders and outsiders. Outsiders are free to speak…

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Waste is central, not peripheral, to everything we design, make and do

Waste is central, not peripheral, to everything we design, make and do

Justin McGuirk writes: The opposition between ‘nature’ and ‘culture’ is problematic for many reasons, but there’s one that we rarely discuss. The ‘nature vs culture’ dualism leaves out an entire domain that properly belongs to neither: the world of waste. The mountains of waste that we produce every year, the torrents of polluting effluent, the billions of tonnes of greenhouse gases, the new cosmos of microplastics expanding through our oceans – none of this has ever been entered into the…

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The Fed’s doomsday prophet has a dire warning about where we’re headed

The Fed’s doomsday prophet has a dire warning about where we’re headed

Christopher Leonard writes: Thomas Hoenig doesn’t look like a rebel. He is a conservative man, soft-spoken, now happily retired at the age of 75. He acts like someone who has spent the vast majority of his career, as he has, working at one of the stuffiest and powerful institutions in America: the Federal Reserve Bank. Hoenig has all the fiery disposition that one might expect from a central banker, which is to say none at all. He unspools sentences methodically,…

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UK’s Brexit losses more than 178 times bigger than trade deal gains

UK’s Brexit losses more than 178 times bigger than trade deal gains

The Independent reports: All of Boris Johnson’s new post-Brexit trade deals put together will have an economic benefit of just £3 to £7 per person over the next 15 years, according to the government’s own figures. The tiny economic boost – amounting to just 0.01 to 0.02 per cent of GDP, and less than 50p per person a year – is dwarfed by the economic hit from leaving the EU, which the government estimates at 4 per cent of GDP…

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Thoreau’s economics: the truly precious costs precious little

Thoreau’s economics: the truly precious costs precious little

John Kaag and Jonathan van Belle write: The word ‘economy’ evolved from the Greek root οἶκος. ‘Oikos’ had three interrelated senses in ancient Greece: the family, the family’s land, and the family’s home. These three, taken interchangeably, constituted the first or fundamental political unit in the ancient Greek world, especially in the minds of Greece’s hereditary aristocrats, for whom family mattered more than all other affiliations. The family, then and after, was viewed as the state in miniature, with its…

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America needs you to buy less junk

America needs you to buy less junk

Amanda Mull writes: Lately, news stories about the supply chain tend to start in similar ways. The reader is dropped into an American container port, maybe in Long Beach, California, or Savannah, Georgia, full to bursting with trailer-size steel boxes loaded with toilet paper and exercise bikes and future Christmas presents. Some of the containers have gone untouched for weeks or months, waiting for their contents to be trucked to distribution centers. On the horizon, dozens of additional vessels are…

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World’s growth cools and the rich-poor divide widens

World’s growth cools and the rich-poor divide widens

The New York Times reports: As the world economy struggles to find its footing, the resurgence of the coronavirus and supply chain chokeholds threaten to hold back the global recovery’s momentum, a closely watched report warned on Tuesday. The overall growth rate will remain near 6 percent this year, a historically high level after a recession, but the expansion reflects a vast divergence in the fortunes of rich and poor countries, the International Monetary Fund said in its latest World…

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A record number of workers are quitting their jobs, empowered by new leverage

A record number of workers are quitting their jobs, empowered by new leverage

The Washington Post reports: The number of people quitting their jobs has surged to record highs, pushed by a combination of factors that include Americans sensing ample opportunity and better pay elsewhere. Some 4.3 million people quit jobs in August — about 2.9 percent of the workforce, according to new data released Tuesday from the Labor Department. Those numbers are up from the previous record set in April, of about 4 million people quitting, reflecting how the pandemic has continued…

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Global supply-chain problems escalate, threatening economic recovery

Global supply-chain problems escalate, threatening economic recovery

The Wall Street Journal reports: Global supply-chain bottlenecks are feeding on one another, with shortages of components and surging prices of critical raw materials squeezing manufacturers around the world. The supply shocks are already showing signs of choking off the recovery in some regions. Part of the problem is a global economy that is out of sync on the pandemic, restrictions and recovery. Factories and retailers in Western economies that have largely emerged from lockdowns are eager for finished products,…

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Cargo piles up as California ports jostle over how to resolve delays

Cargo piles up as California ports jostle over how to resolve delays

The Wall Street Journal reports: Nike Inc. doesn’t have enough sneakers to sell for the holidays. Costco Wholesale Corp. is reimposing limits on paper towel purchases. Prices for artificial Christmas trees have jumped 25% this season. Despite mounting shipping delays and cargo backlogs, the busiest U.S. port complex shuts its gates for hours on most days and remains closed on Sundays. Meanwhile, major ports in Asia and Europe have operated round-the-clock for years. “With the current work schedule you have…

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Vaccinated Democratic counties are leading the U.S. economic recovery

Vaccinated Democratic counties are leading the U.S. economic recovery

Joshua Green writes: With Covid-19 cases once again rising across the country, the U.S. is struggling to curb the latest, delta-driven surge, as hospitalizations and deaths have steadily climbed. But at least so far, the economy has proved highly resilient. There are many reasons for this, ranging from generous stimulus checks to the Federal Reserve’s commitment to buying bonds and holding interest rates low. But some interesting new data on the overlap of electoral politics and economic dynamism suggest another…

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Work is a false idol

Work is a false idol

Cassady Rosenblum writes: In China this April, a 31-year-old former factory worker named Luo Huazhong drew the curtains and crawled into bed. Then he posted a picture of himself there to the Chinese website Baidu along with a message: “Lying Flat Is Justice.” “Lying flat is my sophistic movement,” Mr. Luo wrote, tipping his hat to Diogenes the Cynic, a Greek philosopher who is said to have lived inside a barrel to criticize the excesses of Athenian aristocrats. On Chinese…

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From probable to possible: The ideas of Albert O Hirschman

From probable to possible: The ideas of Albert O Hirschman

Michele Alacevich writes: Like most disciplines, the field of development economics came into being not because of disinterested intellectual curiosity but rather due to pressing contemporary events. In the late 1960s, one prominent international civil servant and development economist reflected that: the cue to the continual reorientation of our work has normally come from the sphere of politics; responding to that cue, students turn to research on issues that have attained political importance. Theories are launched, data collected, and the…

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Iceland tried a four-day work week. It was an overwhelming success

Iceland tried a four-day work week. It was an overwhelming success

ZME Science reports: Among the many things the coronavirus pandemic has affected, our work-life balance has also taken a hit. Most people are simultaneously working from home while doing their day-to-day activities, with many reporting they actually work more than they did before the pandemic struck in 2020, which leaves many feeling burnt out and stressed — but also unwilling to return to the office. This has raised discussions over a four-day working week as a way to increase productivity…

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The looming stagflationary debt crisis

The looming stagflationary debt crisis

Nouriel Roubini writes: In April, I warned that today’s extremely loose monetary and fiscal policies, when combined with a number of negative supply shocks, could result in 1970s-style stagflation (high inflation alongside a recession). In fact, the risk today is even bigger than it was then. After all, debt ratios in advanced economies and most emerging markets were much lower in the 1970s, which is why stagflation has not been associated with debt crises historically. If anything, unexpected inflation in…

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Warren Buffett and the myth of the ‘good billionaire’

Warren Buffett and the myth of the ‘good billionaire’

Anand Giridharadas writes: Warren Buffett appears to be the safest kind of billionaire: the good kind. Mr. Buffett is neither Zuckerbergian messiah nor Musky provocateur, neither Bezosist space cadet nor Sacklerian undertaker. He is, or seems to be, quiet, humble, indifferent to money, philanthropic and critical of the system that allowed him to rise. Years ago, a proposed tax increase was named after him. It’s easy for people to think: If only members of the Sackler family were more like…

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