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Category: Economics

Critics of ‘degrowth’ economics say it’s unworkable – but from an ecologist’s perspective, it’s inevitable

Critics of ‘degrowth’ economics say it’s unworkable – but from an ecologist’s perspective, it’s inevitable

Shutterstock/Matt Sheumack By Mike Joy, Te Herenga Waka — Victoria University of Wellington You may not have noticed, but earlier this month we passed Earth overshoot day, when humanity’s demands for ecological resources and services exceeded what our planet can regenerate annually. Many economists criticising the developing degrowth movement fail to appreciate this critical point of Earth’s biophysical limits. Ecologists on the other hand see the human economy as a subset of the biosphere. Their perspective highlights the urgency with…

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Fitch highlighted Jan. 6 insurrection with Treasury ahead of U.S. downgraded credit rating

Fitch highlighted Jan. 6 insurrection with Treasury ahead of U.S. downgraded credit rating

Reuters reports: Fitch downgraded the U.S. credit rating due to fiscal concerns, a deterioration in U.S governance, as well as political polarization reflected partly by the Jan. 6 insurrection, Richard Francis, a senior director at Fitch Ratings, told Reuters on Wednesday. In a move that took investors by surprise, Fitch downgraded the United States to AA+ from AAA on Tuesday, citing fiscal deterioration over the next three years and repeated down-to-the-wire debt ceiling negotiations that threaten the government’s ability to…

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Migrant workers flee Florida as new immigration law takes effect

Migrant workers flee Florida as new immigration law takes effect

The Wall Street Journal reports: Florida’s agricultural and construction industries say they are experiencing a labor shortage because a new immigration law that took effect July 1 is leading migrant workers to leave the state. The law, signed in May by Florida Gov. and GOP presidential candidate Ron DeSantis, seeks to further criminalize undocumented immigration in the state. It makes it a third-degree felony for unauthorized people to knowingly use a false identification to obtain employment. Businesses that knowingly employ…

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More than two dozen cities and states are suing Big Oil over climate change – they just got a boost from the US Supreme Court

More than two dozen cities and states are suing Big Oil over climate change – they just got a boost from the US Supreme Court

By Patrick Parenteau, Vermont Law & Graduate School and John Dernbach, Widener University Honolulu has lost more than 5 miles of its famous beaches to sea level rise and storm surges. Sunny-day flooding during high tides makes many city roads impassable, and water mains for the public drinking water system are corroding from saltwater because of sea level rise. The damage has left the city and county spending millions of dollars on repairs and infrastructure to try to adapt to…

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State Farm stops offering insurance in California because of ‘rapidly growing catastrophe exposure’

State Farm stops offering insurance in California because of ‘rapidly growing catastrophe exposure’

The New York Times reports: The climate crisis is becoming a financial crisis. This month, the largest homeowner insurance company in California, State Farm, announced that it would stop selling coverage to homeowners. That’s not just in wildfire zones, but everywhere in the state. Insurance companies, tired of losing money, are raising rates, restricting coverage or pulling out of some areas altogether — making it more expensive for people to live in their homes. “Risk has a price,” said Roy…

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Pandemic-era policies reversed the trend toward a widening income gap. Now those gains are under threat

Pandemic-era policies reversed the trend toward a widening income gap. Now those gains are under threat

Politico reports: For the past three years, low-income workers have made historic gains in wages even after inflation, reversing the trend of advances for upper-income workers and stagnating pay for laborers that dominated the previous four decades, according to a POLITICO analysis of data from the U.S. Labor Department. The gains were the product of a series of dramatic changes in the structure of the labor market and government policies to aid the economy during the pandemic. Fueled by the…

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Drastic climate action is the best course for economic growth, study finds

Drastic climate action is the best course for economic growth, study finds

Yale Climate Connections reports: For decades, many economists’ analyses seemed to justify inaction on weaning the economy from fossil fuels, saying the astronomical cost of such rapid transformation would strangle economic growth. These experts were heeded over scientists who warned that acting too slowly would court climate catastrophe. But in recent years, more economists have begun to agree that the short-term costs of aggressive action are not as high as once thought, while the long-term costs of inaction are much…

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The man in charge of knowing when the U.S. runs out of money

The man in charge of knowing when the U.S. runs out of money

The Washington Post reports: At the beginning of every workday, from his second-floor office in the U.S. Treasury Department, Dave Lebryk starts his morning looking at a color-coded dashboard tracking the most critical operations of the largest payment system in the world. More than $6 trillion flows out of the Treasury every year in payments, salaries and purchase orders, and more than $5 trillion flows in, mostly through tax collections and fees. Lebryk’s job is to make sure that these…

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Why Trump wants the U.S. to default on debt

Why Trump wants the U.S. to default on debt

Dennis Aftergut writes: Lest you have any doubt, the three exclamation points are Trump’s. You could be excused for thinking he wants a default. He loves chaos. But he also has a purely self-serving reason to seek an economic catastrophe. You don’t need to be a stable genius to know that a bad economy typically hurts the incumbent in a presidential race. And Trump is desperate to get the immunity from prosecution that being elected president would provide him. He’s…

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The war on poverty is over. Rich people won

The war on poverty is over. Rich people won

Annie Lowrey writes: Why do so many Americans live in poverty? Because so many rich people benefit from it. This is the thesis of the lauded sociologist Matthew Desmond’s new book, Poverty, by America. The best seller is at once a careful exploration of poverty statistics; a deeply reported depiction of the lived experiences of the poor; an examination of the ways America’s wealthy exploit the masses; and a case for ending poverty. Desmond shows how the country’s employers, financial…

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Declaring the debt ceiling unconstitutional is risky, Biden aides fear

Declaring the debt ceiling unconstitutional is risky, Biden aides fear

The Washington Post reports: Senior White House officials see enormous risks in trying to resolve the debt ceiling impasse without Congress, viewing the unilateral measures floated by some academics only as emergency measures of last resort, according to three people with knowledge of internal conversations. As they have for months, Biden aides have recently been evaluating a wide range of proposals for acting on the debt limit without the consent of Congress — particularly by invoking the 14th Amendment of…

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Why I changed my mind on the debt limit

Why I changed my mind on the debt limit

Laurence H. Tribe writes: At this moment, at the White House as well as the Departments of Treasury and Justice, officials are debating a legal theory that previous presidents and any number of legal experts — including me — ruled out in 2011, when the Obama administration confronted a default. The theory builds on Section 4 of the 14th Amendment to argue that Congress, without realizing it, set itself on a path that would violate the Constitution when, in 1917, it capped the size of the…

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Advice to Biden on how to handle House Republicans’ demands for raising the debt ceiling

Advice to Biden on how to handle House Republicans’ demands for raising the debt ceiling

Robert Reich writes: If House Republicans refuse to raise the limit on the amount of money America may repay on what it owes — the deceptively named “debt limit” — they might force the United States to default, pushing interest rates into the stratosphere and shaking the world economy. President Biden rightfully says that raising the so-called debt ceiling should not be negotiable. After all, Democrats joined Republicans during the Trump administration to raise it three times, even as Trump…

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The World Bank is getting a new chief. Will he pivot toward climate action?

The World Bank is getting a new chief. Will he pivot toward climate action?

The New York Times reports: As World Bank shareholders gather in Washington for their annual spring meeting on Monday, the global institution appears to be on the brink of significant change. World leaders, led by Prime Ministers Emmanuel Macron of France and Mia Mottley of Barbados, along with a constellation of academics and development experts want the bank to do more to help poor countries grappling with climate change. The bank has set out its own vision for transformation, in…

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Video: Alexander Skarsgård, Partha Dasgupta and the answer to everything

Video: Alexander Skarsgård, Partha Dasgupta and the answer to everything

  Partha Dasgupta is a Cambridge University economist who in 2021 prepared a more than 600-page report for the British government about the financial value of nature. Not your average bedtime reading. But believe us when we say his report, the culmination of decades of scholarship, is incredibly important. Or at least believe the United Nations, which awarded him the title Champion of the Earth for his work. Or King Charles III, who this year made Mr. Dasgupta a Knight…

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America is in a disgraced class of its own

America is in a disgraced class of its own

Matthew Desmond writes: The United States has a poverty problem. A third of the country’s people live in households making less than $55,000. Many are not officially counted among the poor, but there is plenty of economic hardship above the poverty line. And plenty far below it as well. According to the Supplemental Poverty Measure, which accounts for government aid and living expenses, more than one in 25 people in America 65 or older lived in deep poverty in 2021,…

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