Economics

3178 quotes found

"But there’s another angle to this. Capitalists preach “the market” for the working class – stand on your own two feet, don’t rely on the government – but themselves sponge off the public big time. Just look at the billions in subsidies and tax concessions the fossil fuel companies, huge enterprises for the most part, extract from state and federal governments in Australia. The vehicle manufacturers raked in hundreds of millions a year from the for decades until deciding it wasn’t enough and went overseas. This is why big companies and industry groups hire armies of former politicians to lobby on their behalf in the offices of premiers and prime ministers – there’s money in government coffers and they want it. And while the capitalists talk about “the market” setting wages for workers, in reality, they don’t really allow the market to do the job. They use the whole apparatus of state repression, the industrial tribunals, the police, the courts to suppress workers’ rights to organise to pursue their demands. But when a crisis hits all the bullshit about the market is thrown to the winds. And that is just what we are seeing now. Faced with the collapse of the capitalist economy, for the second time in a dozen years, with massive bankruptcies on the table and the stock market plunging by more than 30 percent and more to come, fervent advocates of the free market are now embracing government intervention to save their skins."

- Capitalism

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"Workers every day face their own personal crises – lack of money to pay the rent or the possibility of defaulting on their mortgage because the boss didn’t call them in for work this week, overdue utility bills that must be paid or risk being cut off, expenses for children’s education that fall due, the fear of redundancy. These are crises that are experienced personally but are really a collective crisis of everyday life for working class people. But when we ask for governments to respond, we are told that addressing these things collectively is not possible, and that this is just the way things are. But when the capitalist system goes into crisis, governments act promptly. It turns out that political decisions about the economy are possible and it is wholly possible for governments to tell the markets to go jump. [...] So, in an economic emergency, few of the usual rules apply. Governments can marshal the resources and can threaten the narrow interests of private businesses. Hardcore libertarians despise these measures as rampant socialism. From their perspective, they’re right: the very existence of such programs is condemnation of the free market capitalist model that they promote. But they are best seen only as another approach to the management of the capitalist economy. The fact that governments across the are now prepared to spend trillions of dollar to save the from collapse only confirms that the world economy cannot be left safely in the hands of “the market”. And, the situation clearly confirms that when the capitalist class and governments deem it necessary to save their system, lots of measures they once denounced as “unaffordable”, not permitted by the condition of “the economy”, are actually affordable and permitted. Governments can act when required. The ideological justifications of yesterday are revealed as threadbare. But nor are government interventions of this nature geared towards the interests of the working class, only the interests of the bosses."

- Capitalism

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"Like cancer, capitalism grows until it murders the host body. During this pandemic shutdown, it’s not getting the growth it needs and parts of it are becoming benign...For years...we’ve been lost in the frenetic pace of lives based on non-events, never pausing to reassess or recess. The spastic motion of avoidance filled the ether — afraid if we stop to truly think about it, we may find our scant few years of consciousness are pissed away as slaves at often meaningless jobs. They, the pustulant corporate owners, suck away our lives...And now, with life on holiday, we see almost none of it was essential... As our planet disintegrates under the weight of consumption and greed, most people are trapped in extreme poverty. And that’s how the system of capitalism is designed. Slightly altering capitalism will not change this reality... If we take away the false promises of capitalism and just say to people, “Private luxury is only for a few humans. You will never have it and won’t even have the chance at getting it” – if we admit that – then the entire justification for capitalism evaporates... The pandemic shutdown has shown us the problem. It has revealed what the world looks like without as much pollution, without the chaos and roar of mostly meaningless “work” performed by the exploited, using materials stolen from the abused, for the benefit of the pampered and oblivious. Another world is possible, and we’ve just gotten a glimpse of it."

- Capitalism

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"These vaccines were created through public money — nearly $500 million of German public money from taxpayers to BioNTech, nearly a billion dollars in money from U.S. taxpayers through the government to Moderna, several billions of dollars after that in exchange for buying back vaccines at high prices. So these are very much the people’s vaccines. It’s just that they are private property.... when the Moderna CEO says, “Oh, anyone can make the Moderna vaccine,” he’s being a bit disingenuous... It’s not really possible to do that. The way vaccines work and the way regulation around vaccines work is that they need to be made with authorization and a license. Moderna and Pfizer or BioNTech... need to authorize companies to make their vaccine... to share an instruction manual as to how to do it... The problem is... it loosens Moderna and Pfizer and BioNTech’s stranglehold on these vaccines... It undercuts the massive tens of billions of dollars of profit and revenue that they can earn off selling to poor countries in the next couple of years, once they’re done with rich countries... which is why we’re asking the U.S. and German governments instead to say, “Look, in the face of this intransigence, it’s time to use emergency laws... that you can use, that you have the moral and legal power to put into effect, and end this pandemic for us and bring us out of this incredible cycle of hell."

- Capitalism

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"Like the nuclear war that never came, the revival and eventual triumph of democratic capitalism was a surprising development that few people on either side of the ideological divide in 1945 would have foreseen. Circumstances during the first half of the 20th century had provided physical strength and political authority to dictatorships. Why should the second half have been different? The reasons had less to do with any fundamental shift in the means of production, as a Marxist historian might have argued, than with a striking shift in the attitude of the United States toward the international system. Despite having built the world's most powerful and diversified economy, Americans had shown remarkably little interest, prior to 1941, in how the rest of the world was governed. Repressive regimes elsewhere might be regrettable, but they could hardly harm the United States. Even involvement in World War I had failed to alter this attitude, as Wilson discovered to his embarrassment and chagrin. What did change it, immediately and irrevocably, was the Japanese attack on Pearl Harbor. That event shattered the illusion that distance ensured safety: that it did not matter who ran what on the other side of the ocean. The nation's security was now at risk, and because future aggressors with air and naval power could well follow the Japanese example, the problem was not likely to go away. There was little choice, then, but for the United States to assume global responsibilities. Those required winning the war against Japan and Germany—Hitler having declared war on the United States four days after Pearl Harbor—but they also meant planning a postwar world in which democracy and capitalism would be secure."

- Capitalism

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"Against all these fateful outcomes there will be those among us who refuse to return to normal, or to embrace the “new normal,” those of us who know that “the trouble with normal is it only gets worse.” Already, in the that the crisis has unleashed, we are seeing extraordinary measures emerge that reveal that much of the neoliberal regime’s claims to necessity and austerity were transparent lies. The God-like market has fallen, again. In different places a variety of measures are being introduced that would have been unimaginable even weeks ago. [...] We are discovering, against the upside-down capitalist value paradigm which has enriched the few at the expense of the many, whose labor is truly valuable: care, service, and frontline public sector workers. There has been a proliferation of grassroots radical demands for policies of care and solidarity not only as emergency measures, but in perpetuity. and capitalist are panicking, fearful that half a century of careful ideological work to convince us of the necessity of neoliberalism ⁠— the transformation of our very souls ⁠— will be dispelled in the coming weeks and months. The sweet taste of freedom ⁠— real, interdependent freedom, not the lonely freedom of the market ⁠— lingers on the palate like a long-forgotten memory, but quickly turns bitter when its nectar is withdrawn. If we do not defend these material and spiritual gains, capitalism will come for its revenge."

- Capitalism

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"I am a capitalist, and after a 30-year career in capitalism... I'm not just in the top one percent, I'm in the top .01 percent of all earners. Today, I have come to share the secrets of our success, because rich capitalists like me have never been richer... How do we manage to grab an ever-increasing share of the economic pie every year? ... here's the dirty secret. There was a time in which the economics profession worked in the public interest, but in the neoliberal era, today, they work only for big corporations and billionaires... We could choose to enact economic policies that raise taxes on the rich, regulate powerful corporations or raise wages for workers... But neoliberal economists would warn that all of these policies would be a terrible mistake, because raising taxes always kills economic growth, and any form of government regulation is inefficient, and raising wages always kills jobs. Well, as a consequence of that thinking, over the last 30 years, in the USA alone, the top one percent has grown 21 trillion dollars richer while the bottom 50 percent have grown 900 billion dollars poorer, a pattern of widening inequality that has largely repeated itself across the world. And yet, as middle class families struggle to get by on wages that have not budged in about 40 years, neoliberal economists continue to warn that the only reasonable response to the painful dislocations of austerity and globalization is even more austerity and globalization."

- Capitalism

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"The Speech... “Let’s face it...it’s a dog-eat-dog world... Every man for himself. For all your ideas about making the world a better place, when it comes down to it, everyone’s just interested in their own skin. It’s a rat race. That’s the way all of nature works... The survival of the fittest... People like you want to change the world. But when you’ve had the experience I’ve had, you’ll know better. Our society is structured this way simply because that’s what works best... This type of conversation...channels the themes we hear every day from those in a position of authority — from talking heads on TV, from successful businesspeople, from teachers, from school textbooks... its ideas seep into our daily thoughts... They infuse much of what is accepted as indisputably true in most conversations that take place about world affairs. They are so pervasive that most of us never question them... In fact, every one of those building blocks is flawed. ...This worldview has accomplished a lot. It wrested intellectual control from the hidebound superstitions of traditional Christian theology, and laid the foundation for modern science — one of humanity’s greatest achievements. It has also been an underlying cause of the horrendous devastation suffered by non-European peoples and cultures, and boundless destruction of the natural world. And the fundamental flaws in its construction have now become so gaping that they threaten the very survival of our civilization—and much of the living Earth...Many people across the globe are realizing that there is something terribly wrong with the direction our world is headed."

- Capitalism

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"Just as in the 1930s, world capitalism, as it had existed until then, had reached a dead-end, and the need for it to be altered for the sake of preserving the system itself, was emphasised by many perceptive bourgeois thinkers, exactly in a similar manner contemporary world capitalism too has reached a dead-end and cannot continue as before. [...] Any change in capitalism, however, including a revival of the so-called "" of the post-War period, will entail a loosening of the hegemony of international finance capital and hence will face stiff opposition from it. The fact that the need for such change is clear to bourgeois thinkers, does not mean that finance capital will simply voluntarily make a sacrifice of the hegemony it currently enjoys. Indeed the history of the 1930s itself bears witness to this fact. [...] Boosting for overcoming mass unemployment finally got accepted as government policy only after the war when the weight of the working class in the advanced countries became much greater than before (of which the victory of the Labour Party in the British post-war elections and the vastly increased strength of the and Italy were obvious markers), and when the came right up to the very doorsteps of creating fears of a “communist takeover”. This conjuncture finally forced concessions from finance capital that had been unobtainable till then. Finance capital, in other words, does not voluntarily make concessions even when such concessions are seen by major pro-capitalist thinkers as being essential for the preservation of the system itself."

- Capitalism

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"Well.. for so many years, people—let’s say in India—have been fighting this very idea of progress, of infinite growth, of this form of development which has resulted now in what we call jobless growth, what everybody knows to be the case. You have nine individuals who own the same amount of wealth as the bottom 500 million. This is what infinite growth has led to—infinite growth for some people. So this idea that you will never question your idea of progress, you will never question the comfort of the Global North. And by Global North—now and the elite South, and the downtrodden North, you know?...Years ago, I wrote an essay which ended by saying, “Can we leave the bauxite in the mountain?”...Can you look at the mountain and not just calculate its mineral worth? Can you understand that a mountain has much more than just the value of the minerals in it? And there is—it’s a civilizational issue, right? That for people who have lived there, have known that mountain, they know it sustains not just the people. It’s not just a question of who is getting displaced. But how does, for example, that bauxite mountain—which stores water and waters the plains all around it, which grows the food, which sustains a whole population—but it’s meant for a corporation that is given the mining contract. It’s just, how much does that bauxite cost? Can we store it and trade it on the futures market?"

- Capitalism

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"If ... the tax scheme allows enormous intergenerational wealth transfers within families, some families will maintain considerable socioeconomic advantages over others, which allows them to provide better educations and better environments (both residential and familial) for their children, and their children's children. ... Even in a constitutional democracy in which each citizen has a publicly recognized claim to all the basic political and civil liberties, these socioeconomic inequalities would create an informal social hierarchy by birth: some would be born into great wealth and other social and political advantages while others would be born into poverty and its associated disadvantages. ... If, because a social scheme had the characteristics described above, the life prospects of some children were vastly inferior to those of others, it would be reasonable to regard these disadvantaged children as members of the lowest stratum in a descent-based social hierarchy. When such a hierarchy is, and has long been, marked by racial distinctions, equal citizenship, in any meaningful sense, does not obtain. In a society with an established democratic tradition, such a quasi-feudal order does not warrant the allegiance of its most disadvantaged members, especially when these persons are racially stigmatized. Indeed, the existence of such an order creates the suspicion that, despite the society's ostensible commitment to equal civil rights, white supremacy has simply taken a new form."

- Capitalism

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"The national accounting systems which are used for calculating growth in terms of GDP are based on the assumption that if producers consume what they produce, they do not in fact produce at all, because they fall outside the production boundary. The production boundary is a political creation that, in its workings, excludes regenerative and renewable production cycles from the area of production. Hence all women who produce for their families, children, community and society are treated as ‘non-productive’ and ‘economically inactive’. When economies are confined to the marketplace, economic self-sufficiency is perceived as economic deficiency. The devaluation of women’s work, and of work done in subsistence economies of the South, is the natural outcome of a production boundary constructed by capitalist patriarchy. By restricting itself to the values of the market economy, as defined by capitalist patriarchy, the production boundary ignores economic value in the two vital economies which are necessary to ecological and human survival: nature’s economy and the sustenance economy. In these economies, economic value is a measure of how the Earth’s life and human life are protected. The currency is life-giving processes, not cash or the market price. Second, a model of capitalist patriarchy which excludes women’s work and wealth creation in the mind deepens the violence by displacing women from their livelihoods and alienating them from the natural resources on which their livelihoods depend -their land, their forests, their water, their seeds and biodiversity."

- Capitalism

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"Thanks to the advances in mass media and means of transportation, the world seems to have become more visible and tangible. International communication has become easier than ever before. Today, the preservation of any kind of ″closed″ society is hardly possible. This calls for a radical review of approaches to the totality of the problems of international cooperation as a major element of universal security. The world economy is becoming a single organism, and no state, whatever its social system or economic status, can normally develop outside it. This places on the agenda the need to devise a fundamentally new machinery for the functioning of the world economy, a new structure of the international division of labor. At the same time, the growth of the world economy reveals the contradictions and limits inherent in traditional-type industrialization. Its further extension and intensification spell environmental catastrophe. But there are still many countries without sufficiently developed industries, and some have not yet moved beyond the pre-industrial stage. One of the major problems is whether the process of their economic growth will follow the old technological patterns or they can join in the search for environmentally clean production. And there is another problem: instead of diminishing, the gap between the developed and most of the developing countries is increasingly growing into a serious global threat. Hence the need to begin a search for a fundamentally new type of industrial progress - one that would meet the interests of all peoples and states."

- Globalization

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"The problems and possibilities associated with the emergence of a global consumerist ethos is one with which scholars have only just begun to come to grips. For much of the past century, beginning with Thorstein Veblen’s investigation of conspicuous consumption in 1899, anxieties about commodity culture were treated as national or Western rather than global concerns. They have been explored in articles and books on a dizzying array of themes and topics, and from a variety of theoretical perspectives. Attempts to make analytic sense of the impact and significance of consumerism on modern cultures have been complicated from the outset by normative considerations – either of a moralizing character or by concerns about consumerism as a form of social control – as well as by the role played by consumerism in the rise of ‘mass’ societies. When these long-standing anxieties about consumption and consumerism are set against the space of the entire globe, coming to clear conclusions about its impact on global and local social relations is made even more difficult. The idea of consumerism as a form of social control, for example, blends easily into existing discourses of economic and cultural imperialism; what is described as ‘Americanism’ is often the threat of a consumer culture associated with US society. 7 Expressed more structurally, the addition of new global communication technologies and the increasing role of techno-scientific inquiry (labelled R&D) in the production of goods, have intersected with and altered practices of production and exchange, further multiplying the difficulties of accounting for consumption and consumerism in the world today."

- Globalization

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"Nineteenth-century cosmopolitanism (rather than imperialism) framed another discourse on global culture and cultural consumption. Johann W. Von Goethe’s (1749–1832) discussion in the late 1820s on Weltliteratur or ‘world literature’(reproduced in this volume) 10 has become an important point of reference in many discussions of ‘world’ or ‘global culture’. His brief comments on world literature draw attention to the substantial literary and cultural interchanges already taking place in Europe at the beginning of the nineteenth century. These include translations of significant works, including Goethe’s own writings, into major European languages, and the existence of journals across the continent devoted to reviewing foreign works of literature. For Goethe, these literary exchanges do not bring about a homogenization of culture – a consistent worry whenever ‘culture’and the ‘global’ are placed in relation to one another. On the contrary, for him, Weltliteratur promises to create greater opportunities for mutual understanding and tolerance, with both spiritual and material benefits for all. Goethe points, ,to the importance of cultural borrowing and interchange to the vitality of cultural life – a point stressed by many theorists of globalization and culture today. The differences, however, are stark. The world literature that Goethe envisions remained tied to a system of nations, each of which expressed its specific national characteristics through its literature. He also expresses anxiety about the emergenceof a mass culture – the culture of the ‘crowd’ – which must be contained by the activity of ‘serious’ and ‘intellectual’ individuals around the world. In the concept of Weltliteratur are framed many of the problems and challenges in conceptualizing global culture: the role of national culture and its relationship to a universal, ‘world’ Introduction xiii Intro-Vol-3 culture; the status of elite versus mass cultures; and even the relationship of culture to economic and social institutions and structures."

- Globalization

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"However, it is not just ideas, representations, ideologies, and styles that are globalized: in other words, it is not just content that is globalized. The globalization of content is the obvious part of the process. It is easy to see when an element of content comes from elsewhere across the globe (cultural consumption in the first sense of the concept as discussed above). By comparison, except when there are obvious border-crossing clashes, it is strangely much harder to see when literary, artistic, and musical forms are globalized. Usually they emerge slowly, subtly and hegemonically. The literary form of the novel, for example – an extended prose fictional narrative, printed and bound, to be read privately – can now be found everywhere in the world, with its greatest moment of globalization coming in the nineteenth century. This was linked to a slow world-historical change in the dominant mode of communication as script gave way to print, and print-capitalism generalized the reach of the novel as a consumerable commodity. The same can be said for novel genres: romance, comedy, detective-fiction, magical realism, and so on. As content, magical realism, for example, was used as a means of resistance to globalization and imperialism; by contrast, as form the genre was itself part of a globalizing counter-response to realism in Latin America and Southeast Asia linked back to a magical realist visual art movement in Weimar German. More generally again, it was part of the globalized spread of a literary form called ‘the novel’. Music went through the same process, though later and more unevenly. At the level of musical form, different notation systems were slowly globalized across the world with the five-line staff system rising to partial dominance in the nineteenth century. In 1939, and then confirmed by the International Organization for Standardization in 1955, an international conference recommended a global standardization of pitch with the note A to be tuned to 440 Hz. This had parallels to the earlier process of globalizing time through agreement on the prime meridian,but it remains more contentious because of issues as basic as local histories of use and questions about what temperature at which the standard should be measured. The establishment of globalized genres of music – classical, rock-and-roll, jazz, samba, and so on – developed in the twentieth century, and music was distributed on changing media of recording that waxed and waned in their dominance. At the leading edge, commercially-produced tapes, records and compact discs as albums, gave way to self-burned CD compilations, and, most recently, to web-based music management programmes such as iTunes. Linked back to content, we are now long past the point where the simple fact of cultural influence or borrowing raises eyebrows. We are used to living in a world where ‘hip hop is mixed up with samba’, as the Los Angeles’ group the Black Eyed Peas sing in ‘Mas Que Nada’, their update of the song by Brazilian pianist Sergio Mendes. More than that, fashion in the forms of distribution has entered the global scene. Will-i-am, leader of the Black-Eyed Peas, has said that the group’s latest studio release on iTunes, The END (2009), is more a continuing ‘diary’ of music rather than an album of music. ‘There is no album any more.’ This is hyperbole for effect of course, just as it was for writers such as John Barth and Walter Benjamin in saying that ‘the novel is dead’, or Roland Barthes in analytically describing "the death of the author." The difference now is that those phrases are globally accessible at the touch of button through internet search engines such as google.com."

- Globalization

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"Low labour cost, along with flexibility in labour use, has become a key source of competitive advantage for firms. As external competition intensifies, the domestic industry has come under great pressure to restructure itself, to become more competitive and to adopt flexible policies with regard to production and labour. With a view to increasing global competitiveness, investors are moving more towards countries that either have low labour costs, or are shifting to informal employment arrangements. These changes create an entirely different political-economic environment for workers around the world. Greater international mobility of capital relative to labour puts workers from a given location at an immediate disadvantage, both in terms of bargaining power with the owners of capital (whose threat to move gains greater credibility) and with respect to the State. Thus the removal of domestic entry barriers and movement of capital to areas of cheap labour have caused intensification of domestic competition in many developing countries— especially those with surplus labour supply and those where labour is a major factor of production. This has been accentuated by potential investors citing the lack of flexibility in hiring and laying off workers as a concern, while targeting a developing country in which to invest. [...] Optimism with regard to labour as an agency of social progress has been replaced by pessimism that sees little prospect of workers acting on their own behalf."

- Globalization

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"These were the years of the Clinton boom and the gradual recovery of economic dynamism in Europe. They were the heyday of economic globalization and the weightless consumerism it afforded the Western middle classes in particular. The implications of this proved significant in the forging of at least three basic elements of the post-Cold War order: first, regarding the manner in which the world economy was “constructed” (primarily around international finance), the variant of financialized globalization it led to, and the leverage that afforded markets over states; secondly, regarding the timing and significance of the Cold War’s end, the lessons of which pushed the decade’s critical actors, social democrats, into a generational turn towards these newly liberalized markets as a less costly tool of distributional fairness; and thirdly, in terms of very real social tensions that reappeared across the Western democracies during the immediate post-Cold War years. With the world seeming to pick up speed all around, much of this went unnoticed—or at least it was not acted upon—at the time. For this was when the two Germanies were learning how to live as one nation again, and when the European Union was born at Maastricht. It was when the twentieth century seemed to deliver on so many of its technological promises—home computing and the Internet, GM food and cable television—and when it was possible to look at the world at large and, for the first time in people’s memory, not need to interpret events in terms of the struggle between communism and capitalism. It was the self-proclaimed era of being “post-” everything. And yet there was much that persisted too. Yugoslavia broke apart amid the violence in Bosnia; Eastern Europe struggled under the burden of its rapid conversion to a capitalist economy. International law took great strides forward but was written mostly by—and for—the powerful. Meanwhile, an oversized and underregulated financial market thrived beyond the oversight of national states, as did the black market and the oligarchs who profited from this."

- Globalization

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"Decades after Depression-era reforms, Wall Street fought successfully to deregulate the , paving the way for the 2008 financial crash that caused millions to lose their homes and livelihoods. And the ultra-rich and big corporations have also managed to dominate our campaign finance system, making it easier for them to buy off politicians who commit to rigging the rules against the poor and the environment, and to suppress voting rights, making it harder for the poor to fight back. … Key to these rollbacks: controlling the narrative about who is poor in America and the world. It is in the interest of the greedy and the powerful to perpetuate myths of deservedness—that they deserve their wealth and power because they are smarter and work harder, while the poor deserve to be poor because they are lazy and intellectually inferior. It’s also in their interest to perpetuate the myth that the poverty problem has largely been solved and so we needn’t worry about the rich getting richer—even while our real is full of gaping holes. This myth has been reinforced by our deeply flawed official measurements of poverty and economic hardship. The way the U.S. government counts who is poor and who is not, frankly, is a sixty-year-old mess that doesn’t tell us what we need to know. It’s an inflation-adjusted measure of the cost of a basket of food in 1955 relative to household income, adjusted for family size—and it’s still the way we today."

- Plutocracy

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"Ed Murrow told his generation of journalists bias is okay as long as you don't try to hide it. So here, one more time, is mine: plutocracy and democracy don't mix. Plutocracy, the rule of the rich, political power controlled by the wealthy. Plutocracy is not an American word but it's become an American phenomenon. Back in the fall of 2005, the Wall Street giant Citigroup even coined a variation on it, plutonomy, an economic system where the privileged few make sure the rich get richer with government on their side. By the next spring, Citigroup decided the time had come to publicly "bang the drum on plutonomy." … over the past 30 years the plutocrats, or plutonomists — choose your poison — have used their vastly increased wealth to capture the flag and assure the government does their bidding. … This marriage of money and politics has produced an America of gross inequality at the top and low social mobility at the bottom, with little but anxiety and dread in between, as middle class Americans feel the ground falling out from under their feet. … Like those populists of that earlier era, millions of Americans have awakened to a sobering reality: they live in a plutocracy, where they are disposable. Then, the remedy was a popular insurgency that ignited the spark of democracy. Now we have come to another parting of the ways, and once again the fate and character of our country are up for grabs. … Democracy only works when we claim it as our own."

- Plutocracy

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"If by "democracy" we mean the form which the Third Estate as such wishes to impart to public life as a whole, it must be concluded that democracy and plutocracy are the same thing under the two aspects of wish and actuality, theory and practice, knowing and doing. It is the tragic comedy of the world‑improvers' and freedom‑teachers' desperate fight against money that they are ipso facto assisting money to be effective. Respect for the big number—expressed in the principles of equality for all, natural rights, and universal suffrage—is just as much a class‑ideal of the unclassed as freedom of public opinion (and more particularly freedom of the press) is so. These are ideals, but in actuality the freedom of public opinion involves the preparation of public opinion, which costs money; and the freedom of the press brings with it the question of possession of the press, which again is a matter of money; and with the franchise comes electioneering, in which he who pays the piper calls the tune. The representatives of the ideas look at one side only, while the representatives of money operate with the other. The concepts of Liberalism and Socialism are set in effective motion only by money. … There is no proletarian, not even a Communist movement, that has not operated in the interests of money, and for the time being permitted by money—and that without the idealists among its leaders having the slightest suspicion of the fact."

- Plutocracy

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"At the end of every seven years thou shalt make a release. And this is the manner of the release: Every creditor that lendeth ought unto his neighbour shall release it; he shall not exact it of his neighbour, or of his brother; because it is called the LORD's release. Of a foreigner thou mayest exact it again: but that which is thine with thy brother thine hand shall release; Save when there shall be no poor among you; for the LORD shall greatly bless thee in the land which the LORD thy God giveth thee for an inheritance to possess it: Only if thou carefully hearken unto the voice of the LORD thy God, to observe to do all these commandments which I command thee this day. For the LORD thy God blesseth thee, as he promised thee: and thou shalt lend unto many nations, but thou shalt not borrow; and thou shalt reign over many nations, but they shall not reign over thee. If there be among you a poor man of one of thy brethren within any of thy gates in thy land which the LORD thy God giveth thee, thou shalt not harden thine heart, nor shut thine hand from thy poor brother: But thou shalt open thine hand wide unto him, and shalt surely lend him sufficient for his need, in that which he wanteth. Beware that there be not a thought in thy wicked heart, saying, The seventh year, the year of release, is at hand; and thine eye be evil against thy poor brother, and thou givest him nought; and he cry unto the LORD against thee, and it be sin unto thee. Thou shalt surely give him, and thine heart shall not be grieved when thou givest unto him: because that for this thing the LORD thy God shall bless thee in all thy works, and in all that thou puttest thine hand unto. For the poor shall never cease out of the land: therefore I command thee, saying, Thou shalt open thine hand wide unto thy brother, to thy poor, and to thy needy, in thy land."

- Debt

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"Until recently, economists have not been particularly carried away with concern over environmental problems caused by industrial development. ...[T]he few economists ...who have always sounded the alarm ...are somewhat out of the mainstram. These humanist concerns seem to have gone out of style after the age of classical economics. Even the conventional analytical models of contemporary economics seem to prefer to exclude these concepts by ignoring them entirely or by shunting them off into their own branch, called "economic externalities." ...In recent years concern over these ...externalities has grown. The environmentalists are beginning to be included in the mainstream. ...Attempts are even being made to extend the theoretical framework to include the changes in the environment caused by economic activity... The Materials Flow of the Economy... sees the human race living on a 'space ship earth' in which all the inputs and outputs, all the original resources and all the final wastes, must be accounted for. ...[W]hen the materials are returned in the form of smoke, sewage, garbage, junk, heat, noise, and a wide variety of noxious gases... the change is seldom for the better. ...[T]he less production that is needed to maintain an adequate level of affluence, the better. An efficient economy is one that gets big results with little effort. More industries, more mines, more businesses, more employment, and more consumer goods do not always mean more well-being... because all these also mean more destruction of our natural resources and despoilation of our surroundings."

- Economics

0 likesEconomicsBusiness
"I am a capitalist, and after a 30-year career in capitalism... I'm not just in the top one percent, I'm in the top .01 percent of all earners. Today, I have come to share the secrets of our success, because rich capitalists like me have never been richer... How do we manage to grab an ever-increasing share of the economic pie every year? ... here's the dirty secret. There was a time in which the economics profession worked in the public interest, but in the neoliberal era, today, they work only for big corporations and billionaires... We could choose to enact economic policies that raise taxes on the rich, regulate powerful corporations or raise wages for workers... But neoliberal economists would warn that all of these policies would be a terrible mistake, because raising taxes always kills economic growth, and any form of government regulation is inefficient, and raising wages always kills jobs. Well, as a consequence of that thinking, over the last 30 years, in the USA alone, the top one percent has grown 21 trillion dollars richer while the bottom 50 percent have grown 900 billion dollars poorer, a pattern of widening inequality that has largely repeated itself across the world. And yet, as middle class families struggle to get by on wages that have not budged in about 40 years, neoliberal economists continue to warn that the only reasonable response to the painful dislocations of austerity and globalization is even more austerity and globalization."

- Economics

0 likesEconomicsBusiness
"I remember how happy I felt when I graduated from Berkeley many years ago. But I thought the graduation speeches were long. I will economize on words. Economics is organized common sense. Here is a short list of valuable lessons that our beautiful subject teaches.1. Many things that are desirable are not feasible. 2. Individuals and communities face trade-offs. 3. Other people have more information about their abilities, their efforts, and their preferences than you do. 4. Everyone responds to incentives, including people you want to help. That is why social safety nets don’t always end up working as intended. 5. There are tradeoffs between equality and efficiency. 6. In an equilibrium of a game or an economy, people are satisfied with their choices. That is why it is difficult for well-meaning outsiders to change things for better or worse. 7. In the future, you too will respond to incentives. That is why there are some promises that you’d like to make but can’t. No one will believe those promises because they know that later it will not be in your interest to deliver. The lesson here is this: before you make a promise, think about whether you will want to keep it if and when your circumstances change. This is how you earn a reputation. 8. Governments and voters respond to incentives too. That is why governments sometimes default on loans and other promises that they have made. 9. It is feasible for one generation to shift costs to subsequent ones. That is what national government debts and the U.S. social security system do (but not the social security system of Singapore). 10. When a government spends, its citizens eventually pay, either today or tomorrow, either through explicit taxes or implicit ones like inflation. 11. Most people want other people to pay for public goods and government transfers (especially transfers to themselves). 12. Because market prices aggregate traders’ information, it is difficult to forecast stock prices and interest rates and exchange rates."

- Economics

0 likesEconomicsBusiness
"Capital is money: Capital is commodities. In truth, however, value is here the active factor in a process, in which, while constantly assuming the form in turn of money and commodities, it at the same time changes in magnitude, differentiates itself by throwing off surplus-value from itself; the original value, in other words, expands spontaneously. For the movement, in the course of which it adds surplus-value, is its own movement, its expansion, therefore, is automatic expansion. Because it is value, it has acquired the occult quality of being able to add value to itself. It brings forth living offspring, or, at the least, lays golden eggs. Value, therefore, being the active factor in such a process, and assuming at one time the form of money, at another that of commodities, but through all these changes preserving itself and expanding, it requires some independent form, by means of which its identity may at any time be established. And this form it possesses only in the shape of money. It is under the form of money that value begins and ends, and begins again, every act of its own spontaneous generation. It began by being £100, it is now £110, and so on. But the money itself is only one of the two forms of value. Unless it takes the form of some commodity, it does not become capital. There is here no antagonism, as in the case of hoarding, between the money and commodities. The capitalist knows that all commodities, however scurvy they may look, or however badly they may smell, are in faith and in truth money, inwardly circumcised Jews, and what is more, a wonderful means whereby out of money to make more money."

- Money

0 likesBusinessCommerceEconomicsWealth
"Everyone in the world needs money – to get paid, to trade, to live. Paper money is an ancient technology and an inconvenient means of payment. You can run out of it. It wears out. It can get lost or stolen. In the twenty-first century, people need a form of money that's more convenient and secure, something that can be accessed from anywhere with a PDA or an Internet connection. Of course, what we're calling 'convenient' for American users will be revolutionary for the developing world. Many of these countries' governments play fast and loose with their currencies. They use inflation and sometimes wholesale currency devaluations, like we saw in Russia and several Southeast Asian countries last year [referring to the 1998 Russian and 1997 Asian financial crisis], to take wealth away from their citizens. Most of the ordinary people there never have an opportunity to open an offshore account or to get their hands on more than a few bills of a stable currency like U.S. dollars. Eventually PayPal will be able to change this. In the future, when we make our service available outside the U.S. and as Internet penetration continues to expand to all economic tiers of people, PayPal will give citizens worldwide more direct control over their currencies than they ever had before. It will be nearly impossible for corrupt governments to steal wealth from their people through their old means because if they try the people will switch to dollars or Pounds or Yen, in effect dumping the worthless local currency for something more secure."

- Money

0 likesBusinessCommerceEconomicsWealth
"For the UN is rightly criticized for being anachronistic, for reflecting the old world that is drifting away into the past. Particularly we, the Polish people, and all the nations of Central and Eastern Europe find it difficult to forget about that. The UN idea dates back to 1943; to the meeting of the "Big Three" in Tehran; to the illusions that Roosevelt harbored about Stalin, benevolently nicknamed "Uncle Joe". As a result, the road to San Francisco led via Yalta. And even though Poland had made a major contribution to the victory which put an end to the Second World War, in June 1945 a representative of our country was not allowed to put his signature to the United Nations Charter. We remember that event when Artur Rubinstein, seeing that there was no Polish delegation at the concert to mark the signing of the Charter, decided to play the Dąbrowski Mazurka, Poland's national anthem, to demonstrate that "Poland was not lost yet", that Poland lived on. I am recalling this because I had a very touching moment a few days ago in the same San Francisco opera house, to which I was invited for the opening of the season. This time it was the orchestra that played the "Dąbrowski Mazurka", and at that moment the memories of the great Artur Rubinstein and his performance came back with full force and it was very touching indeed for me. The UN is rooted in the Second World War and in the post-war situation; it reflects the balance of power of that era."

- United Nations

0 likesUnited NationsThemesPoliticsEconomics
"I believe the United Nations has been gradually weakened since the end of the Cold War, despite the fact that important initiatives have been passed recently. In 1954, UN officials realized that the world needed to share its resources better, and that it was unfair that some countries were so poor and others so wealthy. Back then, the first most important programme was created: the United Nations Development Program (UNDP). Suddenly, the international community realized that sharing was the key. And what’s the best course of action for sharing? Development. Then came a long debate over how to develop all countries to the same level, and whether political, educational and cultural developments were necessary for economic development. This is what we now call ‘integral development’. But then another notion emerged which is even more important: ‘endogenous development’, helping countries to help themselves. This is ‘capacity building’, but at present we are not doing this at all; if we were, every rich country would give 0.7 per cent of its GDP [Gross Domestic Product]. A third big step in the field of development came with the notion of ‘sustainability’. Gro Harlem Brundtland was the first to say that development is useless if we exhaust natural resources. Therefore, every resource we use must be replenished in equal proportion. It goes without saying that we are not taking any of these three basic and commonsense steps in development. We are not bringing about development with a human face..."

- United Nations

0 likesUnited NationsThemesPoliticsEconomics
"Can The World Be Fixed? 1) If democracy is consolidated and political leaders take the reins instead of bowing to pressure from financial institutions, and replace our present speculation-based economy with a knowledge-based economy. 2) If investment in weapons and military spending is reduced and more money is devoted to global sustainable development, significantly increasing the number of people who benefit from progress. 3) If tax havens are decisively closed down and alternative financing measures are put into place, such as fees for electronic transactions. 4) If, for once and for all, the plutocratic G-7, G-8, G-20... factions imposed by the ―globalizers" are dissolved and the United Nations is reinforced and endowed with the means for fulfilling its worldwide security missions, enforcing international law, including the World Trade Organization and ensuring that the World Bank and International Monetary Fund carry out the goals for which they were founded, with rapid deployment of UN Blue Helmets, rather than remaining as passive witnesses to genocide and massive human rights violations... 5) If it is decided overnight that drugs are worthless and are made universally available at reasonable prices, as is the case with alcohol and tobacco. This ―legalization would be accompanied, as warranted, by a campaign in the communications media, educational institutions, etc. to discourage drug use and [encourage] clinical treatment to cure addiction. 6) If citizens the world over, aware of the power of distance participation, cease to be resigned ―receivers and turn to action. The world can be fixed. p. 21."

- United Nations

0 likesUnited NationsThemesPoliticsEconomics
"I am a capitalist, and after a 30-year career in capitalism... I'm not just in the top one percent, I'm in the top .01 percent of all earners. Today, I have come to share the secrets of our success, because rich capitalists like me have never been richer... How do we manage to grab an ever-increasing share of the economic pie every year? ... here's the dirty secret. There was a time in which the economics profession worked in the public interest, but in the neoliberal era, today, they work only for big corporations and billionaires... We could choose to enact economic policies that raise taxes on the rich, regulate powerful corporations or raise wages for workers... But neoliberal economists would warn that all of these policies would be a terrible mistake, because raising taxes always kills economic growth, and any form of government regulation is inefficient, and raising wages always kills jobs. Well, as a consequence of that thinking, over the last 30 years, in the USA alone, the top one percent has grown 21 trillion dollars richer while the bottom 50 percent have grown 900 billion dollars poorer, a pattern of widening inequality that has largely repeated itself across the world. And yet, as middle class families struggle to get by on wages that have not budged in about 40 years, neoliberal economists continue to warn that the only reasonable response to the painful dislocations of austerity and globalization is even more austerity and globalization."

- Economist

0 likesEconomicsEconomists
"It is often sadly remarked that the bad economists present their errors to the public better than the good economists present their truths. It is often complained that demagogues can be more plausible in putting forward economic nonsense from the platform than the honest men who try to show what is wrong with it. But the basic reason for this ought not to be mysterious. The reason is that the demagogues and bad economists are presenting half-truths. They are speaking only of the immediate effect of a proposed policy or its effect upon a single group. As far as they go they may often be right. In these cases the answer consists in showing that the proposed policy would also have longer and less desirable effects, or that it could benefit one group only at the expense of all other groups. The answer consists in supplementing and correcting the half-truth with the other half. But to consider all the chief effects of a proposed course on everybody often requires a long, complicated, and dull chain of reasoning. Most of the audience finds this chain of reasoning difficult to follow and soon becomes bored and inattentive. The bad economists rationalize this intellectual debility and laziness by assuring the audience that it need not even attempt to follow the reasoning or judge it on its merits because it is only “classicism” or “laissez-faire,” or “capitalist apologetics” or whatever other term of abuse may happen to strike them as effective."

- Economist

0 likesEconomicsEconomists
"When I was leaving Poland at the end of 1968 (I had not been in any Western country for at least six previous years), I had as somewhat vague idea of what the radical student movement and different leftist groups or parties might be. What I saw and read I found pathetic and disgusting in nearly all (still: not all) cases. I do not shed tears for a few windows smashed in demonstrations, that old bitch, consumer capitalism, will survive it. Neither do I find scandalous the rather natural ignorance of young people. What impressed me was mental degradation of a kind I had never seen before in any leftist movement. I saw young people trying to "reconstitute" universities and to liberate them from horrifying, savage, monstrous, fascist oppression. The list of demands, with variations, was very similar all over the world of campuses. These fascist pigs of the Establishment want us to pass examinations while we are making the revolution; let them give all of us A grades without examinations; curiously enough, the anti-fascist warriors wanted to get their degrees and diplomas in such fields as mathematics, sociology or law, and not in such as carrying posters, distributing leaflets or destroying offices. And sometimes they got what they wanted, the fascist pigs of the establishment gave them grades without examinations. Very often there were demands for abolishing altogether some subjects of teaching as irrelevant, e.g. foreign languages (these fascists want us, internationalist revolutionaries, to waste time in learning languages, why? To prevent us from making world revolution!) In one place revolutionary philosophers went on strike because they got a reading list including Plato, Descartes and other bourgeois idiots, instead of relevant great philosophers like Che Guevara and Mao."

- Strike action

0 likesEconomicsLabor
"Imagine that General Motors, Ford, and Chrysler jointly agreed to raise the price of the cars they sold by $2,000: Their profits would rise as every American who bought a car paid more. Some Americans would no longer be able to afford a car at the higher price, so the automakers would manufacture and sell fewer vehicles. Then they would need--and hire--fewer workers. The Detroit automakers' stock prices would rise, but the overall economy would suffer. That is why federal anti-trust laws prohibit cartels and the automakers cannot collude to raise prices. Now consider how the United Auto Workers (UAW)--the union representing the autoworkers in Detroit--functions. Before the current downturn, the UAW routinely went on strike unless the Detroit automakers paid what they demanded-- until recently, $70 an hour in wages and benefits. Gold-plated UAW health benefits for retirees and active workers added $1,200 to the cost of each vehicle that GM produced in 2007. Other benefits, such as full retirement after 30 years of employment and the recently eliminated JOBS bank (which paid workers for not working), added more. Some of these costs come out of profits, and some get passed to consumers through higher prices. UAW members earn higher wages, but every American who buys a car pays more, stock owners' wealth falls, and some Americans can no longer afford to buy a new car. The automakers also hire fewer workers because they now make and sell fewer cars."

- Strike action

0 likesEconomicsLabor
"In this paper we examine whether unemployment has a differential impact on the expression of psychological distress among men and women. Based on the traditional centrality of the work role to men and the family role to women, we defined several key domains that might affect unemployed men and women differentially: family circumstances, concerns and worries about children and family; coping responses; social support and social integration; and the centrality of the work role. While the study population either were or hoped to be in the labor force and had dependent children, they varied in their marital status and whether they were the custodial parent. Using data collected in Baltimore from those who had been unemployed but had returned to work, those who had remained continuously unemployed for a year, and those who had been continuously employed, we compared the patterns of men's and women's reactions to unemployment. The important differences in psychological symptoms in this population were related to employment status, problems with parenting, financial difficulties, perceived lack of social support, hostility, and feelings about unemployment. By and large, the patterns of these relationships were similar for men and women. These findings suggest that when gender differences in psychological distress are found they may be due to differences in role configurations of men and women rather than intrinsic gender differences."

- Unknown

0 likesBusinessEconomicsLabor
"When times are good, capital can extract huge profits from labor with little risk. For instance, after the last economic crisis, the (thanks in large part to government bailouts) not only managed to recover all of its losses by 2013, it then proceeded to almost double its value in the seven years that followed — an average rate of growth equal to about 14 percent per year. By contrast, average hourly wages for working people, which rose less than three percent per year for most of that same period, recovered much more slowly, and many workers actually saw their wages fall or remain flat when adjusted for inflation. When times are bad, however, in moments of crisis, when profits are low, or when there is little or no demand — such as we are seeing in many industries today — corporations and companies can protect themselves and their by simply letting workers go. Workers, on the other hand usually must continue to pay for food, rent, healthcare, and basic utilities in order to survive. As a consequence, while capital can often weather the storm of such economic crises, they can severely weaken the power of the working class by creating what Marx called a vast . And since unemployment insurance compensations are rarely available to all and always only for a short period of time, workers — whether laid off or only threatened with the prospect of layoffs—will eventually be pressured to work much harder for less wages. And this is precisely why the future of worker’s power depends on how we respond to this crisis now. While capitalists and their paid politicians will scoff at these demands, claiming they are economically infeasible or impossible, this is because they only understand the language of profit and cannot imagine a world run for the benefit of all. Nonetheless, the fact remains that capital has significant resources that could and must be made available to all working people."

- Capital

0 likesEconomics
"Capital is money: Capital is commodities. In truth, however, value is here the active factor in a process, in which, while constantly assuming the form in turn of money and commodities, it at the same time changes in magnitude, differentiates itself by throwing off surplus-value from itself; the original value, in other words, expands spontaneously. For the movement, in the course of which it adds surplus-value, is its own movement, its expansion, therefore, is automatic expansion. Because it is value, it has acquired the occult quality of being able to add value to itself. It brings forth living offspring, or, at the least, lays golden eggs. Value, therefore, being the active factor in such a process, and assuming at one time the form of money, at another that of commodities, but through all these changes preserving itself and expanding, it requires some independent form, by means of which its identity may at any time be established. And this form it possesses only in the shape of money. It is under the form of money that value begins and ends, and begins again, every act of its own spontaneous generation. It began by being £100, it is now £110, and so on. But the money itself is only one of the two forms of value. Unless it takes the form of some commodity, it does not become capital. There is here no antagonism, as in the case of hoarding, between the money and commodities. The capitalist knows that all commodities, however scurvy they may look, or however badly they may smell, are in faith and in truth money, inwardly circumcised Jews, and what is more, a wonderful means whereby out of money to make more money."

- Capital

0 likesEconomics
"If we are to grasp the dynamics of this unforecasted storm, we have to move beyond the familiar cognitive frame of macroeconomics that we inherited from the early twentieth century. Forged in the wake of World War I and World War II, the macroeconomic perspective on international economics is organized around nation-states, national productive systems and the trade imbalances they generate. It is a view of the economy that will forever be identified with John Maynard Keynes. Predictably, the onset of the crisis in 2008 evoked memories of the 1930s and triggered calls for a return to “the master.” And Keynesian economics is, indeed, indispensable for grasping the dynamics of collapsing consumption and investment, the surge in unemployment and the options for monetary and fiscal policy after 2009. But when it comes to analyzing the onset of financial crises in an age of deep globalization, the standard macroeconomic approach has its limits. In discussions of international trade it is now commonly accepted that it is no longer national economies that matter. What drives global trade are not the relationships between national economies but multinational corporations coordinating far-flung “value chains.” The same is true for the global business of money. To understand the tensions within the global financial system that exploded in 2008 we have to move beyond Keynesian macroeconomics and its familiar apparatus of national economic statistics. As Hyun Song Shin, chief economist at the Bank for International Settlements and one of the foremost thinkers of the new breed of “macrofinance,” has put it, we need to analyze the global economy not in terms of an “island model” of international economic interaction—national economy to national economy—but through the “interlocking matrix” of corporate balance sheets—bank to bank. As both the global financial crisis of 2007–2009 and the crisis in the eurozone after 2010 would demonstrate, government deficits and current account imbalances are poor predictors of the force and speed with which modern financial crises can strike. This can be grasped only if we focus on the shocking adjustments that can take place within this interlocking matrix of financial accounts. For all the pressure that classic “macroeconomic imbalances”—in budgets and trade—can exert, a modern global bank run moves far more money far more abruptly."

- Macroeconomics

0 likesEconomics
"Everyone in the world needs money – to get paid, to trade, to live. Paper money is an ancient technology and an inconvenient means of payment. You can run out of it. It wears out. It can get lost or stolen. In the twenty-first century, people need a form of money that's more convenient and secure, something that can be accessed from anywhere with a PDA or an Internet connection. Of course, what we're calling 'convenient' for American users will be revolutionary for the developing world. Many of these countries' governments play fast and loose with their currencies. They use inflation and sometimes wholesale currency devaluations, like we saw in Russia and several Southeast Asian countries last year [referring to the 1998 Russian and 1997 Asian financial crisis], to take wealth away from their citizens. Most of the ordinary people there never have an opportunity to open an offshore account or to get their hands on more than a few bills of a stable currency like U.S. dollars. Eventually PayPal will be able to change this. In the future, when we make our service available outside the U.S. and as Internet penetration continues to expand to all economic tiers of people, PayPal will give citizens worldwide more direct control over their currencies than they ever had before. It will be nearly impossible for corrupt governments to steal wealth from their people through their old means because if they try the people will switch to dollars or Pounds or Yen, in effect dumping the worthless local currency for something more secure."

- Inflation

0 likesEconomics
"Between August 1921 and August 1929 the Dow Jones Industrial index increased by a factor of 4.4. Other prices, however, had not risen so far. Some were already falling. For those fortunate enough not to be fighting it, the First World War had been a two-fold boon. The temporary diversion of so much European production into the business of destruction had allowed Asian and American producers to expand mightily, but they could not wholly compensate for the disruption caused by the war. It was a global seller's market. At the same time, the inflationary financing of the war, as governments printed money to pay for their deficits, pushed up world prices. The spot price of wheat in the Chicago market - a reasonably good proxy for traded primary commodity prices - hit roughly treble its pre-war average in 1917 and again in 1920. The twin stimuli of dearth and currency depreciation ended thereafter, and a global recession in 1920-21 saw steep declines in the prices of primary products and manufactures. Thereafter, they barely recovered. The price of wheat peaked in February 1925 at 182 cents a bushel (compared with 294 cents in May 1920) and by May 1929 it was down to 102 cents. Similar forces were driving down the world prices of other key commodities like iron and steel. This deflation was the overture to the Great Depression. In the 1920s it meant poverty for farmers, but easy living for those who received the profits of industry and finance."

- Deflation

0 likesEconomics
"There was a plea from honourable Members relating to the need for formal Gross National Product figures. Such figures are very inexact even in the most sophisticated countries I think they do not have a great deal of meaning, even as a basis of comparison between economies. That other countries make use of them is not, I think, necessarily a good reason to suppose that we need them. But, although I am not entirely clear what practical purpose they would serve in Hong Kong, I am sure they would be of interest. I suspect myself, however, that the need arises in other countries because high taxation and more or less detailed Government intervention in the economy have made it essential to be able to judge (or to hope to be able to judge) the effect of policies, and of changes in policies, on the economy. One of the honourable Members who spoke on this subject, said outright, as a confirmed planner, that he thought that they were desirable for the planning of our future economic policy. But we are in the happy position, happier at least for the Financial Secretary where the leverage exercised by Government on the economy is so small that it is not necessary, nor even of any particular value, to have these figures available for the formulation of policy. We might indeed be right to be apprehensive lest the availability of such figures might lead, by a reversal of cause and effect, to policies designed to have a direct effect on the economy. I would myself deplore this."

- Gross National Product

0 likesEconomics
"I am a capitalist, and after a 30-year career in capitalism... I'm not just in the top one percent, I'm in the top .01 percent of all earners. Today, I have come to share the secrets of our success, because rich capitalists like me have never been richer... How do we manage to grab an ever-increasing share of the economic pie every year? ... here's the dirty secret. There was a time in which the economics profession worked in the public interest, but in the neoliberal era, today, they work only for big corporations and billionaires... We could choose to enact economic policies that raise taxes on the rich, regulate powerful corporations or raise wages for workers... But neoliberal economists would warn that all of these policies would be a terrible mistake, because raising taxes always kills economic growth, and any form of government regulation is inefficient, and raising wages always kills jobs. Well, as a consequence of that thinking, over the last 30 years, in the USA alone, the top one percent has grown 21 trillion dollars richer while the bottom 50 percent have grown 900 billion dollars poorer, a pattern of widening inequality that has largely repeated itself across the world. And yet, as middle class families struggle to get by on wages that have not budged in about 40 years, neoliberal economists continue to warn that the only reasonable response to the painful dislocations of austerity and globalization is even more austerity and globalization."

- Economic system

0 likesEconomicsSocial systems
"A still more extreme thesis is proposed by rational expectations theoreticians, among whom is the American Robert Lucas (b. 1937, Nobel prize in 1995). In a 1972 article, Lucas joined the assumption of markets in continuous equilibrium with that of rational expectations, originally formulated by Muth (1961), according to which ‘expectations [...] are essentially the same as the predictions of the relevant economic theory’. As a consequence, economic agents learn to take account of public intervention in the economy, discounting its effects beforehand. Thus, for instance, deficit public expenditure, that is not financed by a contemporary increase in taxation, adopted by the government to stimulate aggregate demand, is counterbalanced by a reduction in private consumption, decided by private economic agents to put aside the savings with which to pay for the taxes which sooner or later will have to be introduced to pay for the public debt with which public expenditure is financed. In this context, the Phillips curve turns out to be vertical also in the short run: expansionary monetary and fiscal policy interventions may only produce an increase in the rate of inflation, not in the level of employment. … The rational expectations assumption, in the usual context of a one commodity model, also underlies a new theory of the trade cycle, the ‘real cycle theory’. After dominating the scene in the 1980s, in the following decade rational expectations theory gradually lost ground, even if in the theoretical confrontation with representatives of the neoclassical synthesis the shaky nature of its theoretical foundations – the one-commodity model, common to their rivals too – has not been stressed."

- Rational expectations

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"There was, however, another approach to justice that also emerged at about the same time in the works of other Enlightenment thinkers – other than the social contract theorists of that period. These theorists did not erect a fully developed structure of a theory of justice, but the ingredients of a different approach – different from the social contract theory – which they helped to identify, can be developed from their alternative understanding of the demands of justice. These theorists (including Adam Smith, the Marquis de Condorcet and Mary Wollstonecraft in the eighteenth century, and extended later to John Stuart Mill and Karl Marx, among others) took a variety of approaches that differed in many ways from each other, but shared a common interest in making comparisons between different ways in which people’s lives may go, jointly influenced by the working of institutions, people’s actual behaviour, their social interactions and other factors that significantly impact on what actually happens. My attempt at advancing a theory of justice closely relates to this alternative foundation. The analytical – and rather mathematical – discipline of ‘social choice theory’, which had its origin in the works of French mathematicians in the eighteenth century, in particular the Marquis de Condorcet, but also others like Borda, and which has been revived and reformulated in our times by Kenneth Arrow, also belongs to this second line of investigation."

- Social choice theory

0 likesEconomicsEthicsPolitics
"Let us begin with the simplest illustration possible: let us, emulating Bastiat, choose a broken pane of glass. A young hoodlum, say, heaves a brick through the window of a baker’s shop. Th shopkeeper runs out, furious, but the boy is gone. A crowd gathers and begins to stare with quiet satisfaction at the gaping hole in the window and the shattered glass over the bread and pies. After a while the crowd feels the need for philosophic reflection. And several of its members are almost certain to remind each other or the baker that, after all, the misfortune has its bright side. It will make business for some glazier. As they begihn to think of this, they elaborate upon it. How much does a new plate glass window cost? Fifty dollars? That will be quite a sum. After all, if windows were never broken, what would happen to the glass business? Then, of course, the thing is endless. The glazier will have $50 more to spend with other merchants, and these in turn will have $50 more to spend with still other merchants, and so on, ad infinitum. The smashed window will go on providing money and employment in an ever widening circle. The theological conclusion from all this would be, if the crowd drew it, that the little hoodlum who threw the brick, far from being a public menace, was a public benefactor. Now let us take another look. The crowd is at least right in its first conclusion. This little ct of vandalism will, in the first instance, man more business for some glazier. The glazier will be no more unhappy to learn of the incident than an undertaker to learn of a death. But the shopkeeper will be out $50 that he was planning to spend for a new suit. Because he has had to replace a window, he will have to go without the suit (or some equivalent need or luxury). Instead of having a window and $50 he now has merely a window. Or, as he was planning to buy the suit that very afternoon, instead of having both a window and a suit he must be content with the window and no suit. If we think of him as a part of the community, the community has lost a new suit that might otherwise have come into being, and is just that much poorer. The glazier’s gain of business, in short, is merely the tailor’s loss of business. No one “employment” has been added. The people in the crowd were thinking only of two parties to the transaction, the baker and the glazier. They had forgotten the potential third party involvd, the tailor. They fogot him precisely because he will not now enter the scene. They will see the new window in the next day or two. They will never see the extra suit, precisely because it will never be made. They see only what is immediately visible to the eye"

- Parable of the broken window

0 likesEconomics
"Suppose a clothing manufacturer learns of a machine that will make men’s and women’s overcoats for half as much labor as previously. He installs the machines and drops half his labor force. This looks at first glance like a clear loss of employment. But the machine itself required labor to make it; so here, as one offset, are jobs that would not otherwise have existed. The manufacturer, how ever, would have adopted the machine only if it had either made better suits for half as much labor, or had made the same kind of suits at a smaller cost. If we assume the latter, we cannot assume that the amount of labor to make the machines was as great in terms of pay rolls as the amount of labor that the clothing manufacturer hopes to save in the long run by adopting the machine; otherwise there would have been no economy, and he would not have adopted it. So there is still a net loss of employment to be accounted for. But we should at least keep in mind the real possibility that even the first effect of the introduction of labor-saving machinery may be to increase employment on net balance; because it is usually only in the long run that the clothing manufacturer expects to save money by adopting the machine: it may take several years for the machine to “pay for itself.” After the machine has produced economies sufficient to offset its cost, the clothing manufacturer has more profits than before. (We shall assume that he merely sells his coats for the same price as his competitors, and makes no effort to undersell them.) At this point, it may seem, labor has suffered a net loss of employment, while it is only the manufacturer, the capitalist, who has gained. But it is precisely out of these extra profits that the subsequent social gains must come. The manufacturer must use these extra profits in at least one of three ways, and possibly he will use part of them in all three: (1) he will use the extra profits to expand his operations by buying more machines to make more coats; or (2) he will invest the extra profits in some other industry; or (3) he will spend the extra profits on increasing his own consumption. Whichever of these three courses he takes, he will increase employment."

- Technological unemployment

0 likesBusinessEconomicsLaborTechnology
"After . . . drawing on independent research on donor expectations, . . . assistance from a variety of philanthropic experts, and numerous comments from donors and charities, the BBB Wise Giving Alliance issued the [following] BBB Standards for Charity Accountability. . . . These standards apply to publicly-soliciting organizations that are tax exempt under section 501(c)(3) of the Internal Revenue Code and to other organizations conducting charitable solicitations. . . . The overarching principle of the BBB Standards for Charity Accountability is full disclosure to donors and potential donors at the time of solicitation and thereafter. . . . GOVERNANCE AND OVERSIGHT [Standards 1 - 5] The governing board has the ultimate oversight authority for any charitable organization. This section of the standard seeks to ensure that the volunteer board is active, independent and free of self-dealing. . . . MEASURING EFFECTIVENESS [Standards 6 - 7] The effectiveness of a charity in achieving its mission is of the utmost importance. . . . This is why a section of our standards require that charities set defined, measurable goals and objectives . . . and report on the organization’s progress. . . . FINANCES [Standards 8 - 14] While we believe that a charity’s finances only tell part of the story of how they are performing, they can identify organizations that may be demonstrating poor financial management and/or questionable accounting practices. . . . [T]hese standards . . . seek to ensure that the charity is financially transparent and spends its funds in accordance with its mission and donor expectations. . . . SOLICITATIONS AND INFORMATIONAL MATERIALS [Standards 15 - 20] A fundraising appeal is often the only contact a donor has with a charity and may be the sole impetus for giving. This section of the standards seeks to ensure that a charity’s representations to the public are accurate, complete and respectful."

- Nonprofit organization

0 likesCommerceEconomicsBusiness
"For Hayek, the causes of the Depression lay in earlier central bank policies of cheap money, which resulted in large-scale misallocation of capital. Because no central authority could grasp the shifting pattern of relative scarcities and prices, only the market could determine the right allocation. Accordingly, believing that misguided investments had to be liquidated, Hayek argued in the 1930s for policies that were more contractionary than those that were actually pursued. The task of government was to get out of the way and let the process of adjustment run its course. If they had been adopted while the crash was under way, Hayek’s prescriptions would have made the Depression even worse than it proved to be – a fact he later admitted. But he never accepted Keynes’s core insight that large-scale economic discoordination could be the result of the workings of the market itself. For him it was always government intervention that accounted for market disequilibrium. More sceptical as well as more radical in his turn of mind, Keynes questioned the self-regulating powers of the market. His work on the theory of probability disclosed insuperable gaps in our knowledge of the future; all investment was a gamble, and markets could not be relied on to allocate capital rightly. There were booms and busts long before the emergence of modern central banking. Left to its own devices, the free market can easily end up in a dead end like that of the 1930s."

- Austrian business cycle theory

0 likesEconomicsFriedrich HayekLudwig von MisesAustrian School
"If we are to grasp the dynamics of this unforecasted storm, we have to move beyond the familiar cognitive frame of macroeconomics that we inherited from the early twentieth century. Forged in the wake of World War I and World War II, the macroeconomic perspective on international economics is organized around nation-states, national productive systems and the trade imbalances they generate. It is a view of the economy that will forever be identified with John Maynard Keynes. Predictably, the onset of the crisis in 2008 evoked memories of the 1930s and triggered calls for a return to “the master.” And Keynesian economics is, indeed, indispensable for grasping the dynamics of collapsing consumption and investment, the surge in unemployment and the options for monetary and fiscal policy after 2009. But when it comes to analyzing the onset of financial crises in an age of deep globalization, the standard macroeconomic approach has its limits. In discussions of international trade it is now commonly accepted that it is no longer national economies that matter. What drives global trade are not the relationships between national economies but multinational corporations coordinating far-flung “value chains.” The same is true for the global business of money. To understand the tensions within the global financial system that exploded in 2008 we have to move beyond Keynesian macroeconomics and its familiar apparatus of national economic statistics. As Hyun Song Shin, chief economist at the Bank for International Settlements and one of the foremost thinkers of the new breed of “macrofinance,” has put it, we need to analyze the global economy not in terms of an “island model” of international economic interaction—national economy to national economy—but through the “interlocking matrix” of corporate balance sheets—bank to bank. As both the global financial crisis of 2007–2009 and the crisis in the eurozone after 2010 would demonstrate, government deficits and current account imbalances are poor predictors of the force and speed with which modern financial crises can strike. This can be grasped only if we focus on the shocking adjustments that can take place within this interlocking matrix of financial accounts. For all the pressure that classic “macroeconomic imbalances”—in budgets and trade—can exert, a modern global bank run moves far more money far more abruptly."

- International monetary systems

0 likesEconomics
"In the 1930s economics appeared to be a little different at the University of Chicago than elsewhere, but the same statement could be made about most major universities. Frank Knight was skeptical of the moral and intellectual content of political behavior and particularly hostile to central economic planning, but he was also severely critical of the ethical basis of a competitive economy. No doctrinaire defender of private enterprise would find him a source of strength. Henry Simons had preached a form of laissez-faire in his famous 1934 pamphlet A Positive Program for Laissez Faire, but what a form! He proposed nationalization of basic industries … [and] urged an extremely egalitarian policy in the taxation of income and detailed regulation of business practices … Much of his program was almost as harmonious with socialism as with private-enterprise capitalism.… Jacob Viner, the other major figure, had nineteenth-century liberal tastes, but rebelled against simplified or “extreme” positions. The rest of the faculty were highly varied in their policy preferences: Paul Douglas favored a large economic role for the state; Simeon Leland was a traditionalist in taxation; Henry Millis was an old-fashioned labor economist; Lloyd Mints wrote only on central bank policy; Henry Schultz stuck to his mathematical and statistical knitting; and Oskar Lange was a socialist."

- Chicago school of economics

0 likesRight-libertarianismEconomicsUniversity of Chicago
"The importance of empire became especially obvious to the self-styled 'have not' powers when they adopted rearmament as a tool of economic recovery. For rearmament in the 1930s, if one wished to possess the most up-to-date weaponry, demanded copious supplies of a variety of crucial raw materials (see below). Neither Italy, Germany nor Japan had these commodities within their own borders other than in trivial quantities. By contrast, the lion's share of the world's accessible supplies lay within the borders of one of four rival powers: the British Empire, the French Empire, the Soviet Union and the United States. Thus, no country could aspire to military parity with these powers without substantial imports of commodities whose supply they all but monopolized. For three reasons, it was not possible for the 'have nots' to rely on free trade to acquire them. First, free trade had been significantly reduced by the mid-1930s, thanks to the imposition of protectionist tariffs. Second, Italy, Germany and Japan lacked adequate international reserves to pay for the imports they required. Third, even if their central banks' reserves had been overflowing with gold, there was a risk that imports might be interdicted by rival powers before rearmament was complete. There was therefore a compelling logic behind territorial expansion, as Hitler made clear in his memorandum of August-September 1936, which outlined a new Four-Year Plan for the German economy."

- Commodity

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"Monetarism was a powerful force in economic debate for about three decades after Friedman first propounded the doctrine in his 1959 book A Program for Monetary Stability. Today, however, it is a shadow of its former self, for two main reasons.First, when the United States and the United Kingdom tried to put monetarism into practice at the end of the 1970s, both experienced dismal results: in each country steady growth in the money supply failed to prevent severe recessions. The Federal Reserve officially adopted Friedman-type monetary targets in 1979, but effectively abandoned them in 1982 when the unemployment rate went into double digits. This abandonment was made official in 1984, and ever since then the Fed has engaged in precisely the sort of discretionary fine-tuning that Friedman decried. For example, the Fed responded to the 2001 recession by slashing interest rates and allowing the money supply to grow at rates that sometimes exceeded 10 percent per year. Once the Fed was satisfied that the recovery was solid, it reversed course, raising interest rates and allowing growth in the money supply to drop to zero.Second, since the early 1980s the Federal Reserve and its counterparts in other countries have done a reasonably good job, undermining Friedman’s portrayal of central bankers as irredeemable bunglers. Inflation has stayed low, recessions—except in Japan, of which more in a second—have been relatively brief and shallow. And all this happened in spite of fluctuations in the money supply that horrified monetarists, and led them—Friedman included—to predict disasters that failed to materialize. As David Warsh of The Boston Globe pointed out in 1992, "Friedman blunted his lance forecasting inflation in the 1980s, when he was deeply, frequently wrong."

- Monetarism

0 likesEconomics
"I do not mean to suggest that all those who call themselves monetarists make this unconscious assumption that an inflation involves this uniform rise of prices. But we may distinguish two schools of monetarism. The first would prescribe a monthly or annual increase in the stock of money just sufficient, in their judgment, to keep prices stable. The second school (which the first might dismiss as mere inflationists) wants a continuous increase in the stock of money sufficient to raise prices steadily by a "small" amount—2 or 3 per cent a year. These are the advocates of a "creeping" inflation. … I made a distinction earlier between the monetarists strictly so called and the "creeping inflationists." This distinction applies to the intent of their recommended policies rather than to the result. The intent of the monetarists is not to keep raising the price "level" but simply to keep it from falling, i.e., simply to keep it "stable." But it is impossible to know in advance precisely what uniform rate of money-supply increase would in fact do this. The monetarists are right in assuming that in a prospering economy, if the stock of money were not increased, there would probably be a mild long-run tendency for prices to decline. But they are wrong in assuming that this would necessarily threaten employment or production. For in a free and flexible economy prices would be falling because productivity was increasing, that is, because costs of production were falling. There would be no necessary reduction in real profit margins. The American economy has often been prosperous in the past over periods when prices were declining. Though money wage-rates may not increase in such periods, their purchasing power does increase. So there is no need to keep increasing the stock of money to prevent prices from declining. A fixed arbitrary annual increase in the money stock "to keep prices stable" could easily lead to a "creeping inflation" of prices."

- Monetarism

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"Academics who continue to be amused and intrigued with the still-growing literature on the economics of John Maynard Keynes have had to learn to distinguish among the several different schools that draw inspiration from the master. Hyphenated or adjectival Keynesianism includes, for instance, both Neo-Keynesianism, which is based on an assumed wage and price stickiness, and New Keynesianism which attempts to explain the stickiness. Neo- and New Keynesianism share certain methodological presuppositions with Neo- and New Classicism but do not share in the judgment that markets are generally self-equilibrating. Interpreters who prefer to blend Keynes's ideas with those of the old classical school, which featured a cost-based production theory, have adopted "post" as their adjective of choice. … Post Keynesians emphasize Keynes's vision of utopia and the associated reform proposals almost to the exclusion of his diagnosis of depression and prescription of short-run demand-management policies. In fact, standard textbook Keynesianism, whose graphics and equations make the case for monetary and fiscal activism, are repeatedly described in the Davis volume as "bastardized Keynesianism" (Joan Robinson's term) so as to provide an appropriate contrast with the more radical Keynesianism adopted by the volume's contributors. If "post Keynesians" did nothing but embrace these utopian aspects of Keynes, they would more accurately be described as Keynesian fundamentalists."

- Post-Keynesian economics

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"Post Keynesian policy recommendations involve limiting the legal ability of individuals to bargain in the marketplace. Such recommendations include traditional demand management and "incomes" policies designed to stimulate expenditures while stifling free wage bargaining (Snowdon, Vane, and Wynarczyk 1994, pp. 367–82). However, a glaring omission in Davidson's chapter is that the link from the Post Keynesian position on uncertainty to the possibility of government action] to "improve the performance of the economy" is never made. Even if one accepts the view of an economy plagued by an all-encompassing uncertainty and entrepreneurs that act without any good reason for doing so, it still does not follow that government is capable of improving upon the results of this economic process.10 In fact, the Post Keynesians' own vision of pervasive uncertainty would seem to lean against such conclusions, for how, in a world of such uncertainty, could the government possibly form policies that are compatible with full employment and price stability? Under uncertainty, there can be no perfect ex ante knowledge of the relationship between actions and particular outcomes. To claim that government can improve upon free-market outcomes by reducing uncertainty, one must somehow infer that the government is able to obtain information that is unavailable to market participants in regard to future prospects. If Davidson has some reason to believe that government does indeed have access to such information, it is not stated here."

- Post-Keynesian economics

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"Until recently, economists have not been particularly carried away with concern over environmental problems caused by industrial development. Just as in the other sciences, the few economists ...who have always sounded the alarm ...are somewhat out of the mainstream. These humanist concerns seem to have gone out of style after the age of classical economics. Even the conventional analytical models of contemporary economics seem to prefer to exclude these concepts by ignoring them entirely or by shunting them off into their own branch, called "economic externalities." These externalities include any “given” or windfall factor, such as the availability of transportation, technological know-how, a labor force, or resources, factors that are not themselves directly involved in the economic analysis of markets and businesses. For example, the regularly bright and sunny weather of Hollywood was considered an external economy of the movie industry there. The movie moguls, no matter how tyrannical, could neither turn on nor turn off the sun. But as the surrounding community grew and the smog thickened, the weather became an external economy. In very recent years concern over these economic externalities has grown. The environmentalists are beginning to be included in the mainstream. The literature is growing, and professional meetings include sessions on environmental economics. Attempts are even being made to extend the theoretical framework to include the changes in the environment caused by economic activity. [...] The Materials Flow of the Economy... sees the human race living on a 'space ship earth' in which all the inputs and outputs, all the original resources and all the final wastes, must be accounted for. Furthermore, when the materials are returned in the form of smoke, sewage, garbage, junk, heat, noise, and a wide variety of noxious gases, the world becomes a very changed place — and the change is seldom for the better. Implicit in this materials flow concept of the economy is that the less production that is needed to maintain an adequate level of affluence, the better. An efficient economy is one that gets big results with little effort. More industries, more mines, more businesses, more employment, and more consumer goods do not always mean more well-being... because all these also mean more destruction of our natural resources and despoilation of our surroundings."

- Classical economics

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"The great economists were harbingers of new ideas. The economic policies they recommended were at variance with the policies practiced by contemporary governments and political parties. As a rule many years, even decades, passed before public opinion accepted the new ideas as propagated by the economists, and before the required corresponding changes in policies were effected.It was different with the "new economics" of Lord Keynes. The policies he advocated were precisely those which almost all governments, including the British, had already adopted many years before his "General Theory" was published. Keynes was not an innovator and champion of new methods of managing economic affairs. His contribution consisted rather in providing an apparent justification for the policies which were popular with those in power in spite of the fact that all economists viewed them as disastrous. His achievement was a rationalization of the policies already practiced. He was not a "revolutionary," as some of his adepts called him. The "Keynesian revolution" took place long before Keynes approved of it and fabricated a pseudo-scientific justification for it. What he really did was to write an apology for the prevailing policies of governments.This explains the quick success of his book. It was greeted enthusiastically by the governments and the ruling political parties. Especially enraptured were a new type of intellectuals, the "government economists." They had had a bad conscience. They were aware of the fact that they were carrying out policies which all economists condemned as contrary to purpose and disastrous. Now they felt relieved. The "new economics" reestablished their moral equilibrium. Today they are no longer ashamed of being the handymen of bad policies. They glorify themselves. They are the prophets of the new creed."

- Keynesian Revolution

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"The group’s members depicted themselves as ‘liberals’ (in the traditional European sense) because of their fundamental commitment to ideals of personal freedom. The neoliberal label signalled their adherence to those free market principles of neoclassical economics that had emerged in the second half of the nineteenth century [...] to displace the classical theories of Adam Smith, David Ricardo, and, of course, Karl Marx. Yet they also held to Adam Smith’s view that the hidden hand of the market was the best device for mobilizing even the basest of human instincts such as gluttony, greed, and the desire for wealth and power for the benefit of all. Neoliberal doctrine was therefore deeply opposed to state interventionist theories, such as those of John Maynard Keynes, which rose to prominence in the 1930s in response to the Great Depression. Many policy-makers after the Second World War looked to Keynesian theory to guide them as they sought to keep the business cycle and recessions under control. The neoliberals were even more fiercely opposed to theories of centralized state planning, such as those advanced by Oscar Lange working close to the Marxist tradition. State decisions, they argued, were bound to be politically biased depending upon the strength of the interest groups involved [...]. State decisions on matters of investment and capital accumulation were bound to be wrong because the information available to the state could not rival that contained in market signals."

- Mont Pelerin Society

0 likesInternational organizationsEconomics
"No doubt all commodities have politics. But money and credit and the structure of finance piled on them are constituted by political power, social convention and law in a way that sneakers, smartphones and barrels of oil are not. At the apex of the modern monetary pyramid is fiat money. Called into existence and sanctioned by states, it has no “backing” other than its status as legal tender. That uncanny fact became literally true for the first time in 1971–1973 with the collapse of the Bretton Woods system. Under the Bretton Woods agreement of 1944, the dollar, as the anchor of the global monetary system, was tied to gold. This was itself, of course, no more than a convention. When it became too hard for the United States to live with—upholding it would have required deflation—on August 15, 1971, President Nixon abandoned it. This was a historic caesura. For the first time since the advent of money, no currency in the world any longer operated on a metallic standard. Potentially, this freed monetary policy, regulating the creation of money and credit as never before. But how much freedom would policy makers actually have after throwing off the “golden fetters”? The social and economic forces that had made the gold peg unsustainable even for the United States were powerful—at home the struggle for income shares in an increasingly affluent society, abroad the liberalization of offshore dollar trading in London in the 1960s. When those forces were unleashed in the 1970s without a monetary anchor, the result was to send inflation soaring toward 20 percent in the advanced economies, something unprecedented in peacetime. But rather than retreating from liberalization, by the early 1980s any restriction on global capital flows was lifted. It was precisely to tame the forces of indiscipline unleashed by the end of metallic money that the market revolution and the new neoliberal “logic of discipline” were inaugurated. By the mid-1980s Fed chair Paul Volcker’s dramatic campaign to raise interest rates had curbed inflation. The only prices going up in the age of the great moderation were those for shares and real estate. When that bubble burst in 2008, when the world faced not inflation but deflation, the key central banks threw off their self-imposed shackles. They would do whatever it took to prevent a collapse of credit. They would do whatever it took to keep the financial system afloat. And because the modern banking system is both global and based on dollars, that meant unprecedented transnational action by the American state."

- Gold standard

0 likesEconomics
"The term 'marginal revolution' is usually taken to refer to the nearly simultaneous but completely independent discovery in the early 1870s by Jevons, Menger and Walras of the principle of diminishing marginal utility as the fundamental building block of a new kind of static microeconomics. It constitutes, so the argument goes, one of the best examples of multiple discoveries in the history of economic thought, which simply cries out for some sort of historical explanation: it is too much to believe that three men working at nearly the same time in such vastly different intellectual climates as those of Manchester, Vienna and Lausanne could have hit by accident on the same idea. The trouble is that none of the standard explanations is convincing. The levels of economic development in England, Austria and Switzerland were so different in the 1860s that all crypto-Marxist explanations in terms of changes in the structure of production or the relationship between social classes strain our sense of credulity. Likewise, the utilitarian-empiricist tradition of British philosophy, the neo-Kantian philosophical climate of Austria and the Cartesian philosophical climate of Switzerland simply had no elements in common that could have provoked a utility revolution in economics. In matters of economic policy, there was in fact continuity with classical thinking and when Jevons and Walras wrote on policy questions, as they often did, there was little or no connection between their practical recommendations and their views on value theory."

- Marginal Revolution

0 likesEconomics
"Finally, and very importantly, the cause of necessary economic reforms has not been served by confounding that necessity with the policy of austerity. Indeed, serious consideration of the kinds of reform that are needed has been hampered, rather than aided, by the loss of clarity about the distinction between reform of bad administrative arrangements (such as people evading taxes, government servants using favoritism, banks being exempt from necessary discipline, or—for that matter—preserving a nonviable system of early retiring ages), and austerity in the form of ruthless cuts in public services and basic social security. The requirements for alleged financial discipline have tended to amalgamate the two, even though any analysis of social justice would view policies for necessary reform in an altogether different way from drastic cuts in important public services. Even if that distinction may have been lost in rather crude financial thinking, opportunities for adequate public reasoning, in “government by discussion,” could have brought out its relevance clearly enough. Europe has been extraordinarily important for the world, which has learned so much from it. It can remain globally important by setting its own house in order—economically, politically, and socially. The first step is to understand properly, with some clarity, the policy challenges that Europe faces today. A failure to do so will reverberate far beyond Europe’s own borders."

- Austerity

0 likesEconomics
"The Washington doctrine was everywhere greeted by ideological cheerleaders: from the profiteers of the ‘Irish miracle’ (the property-bubble boom of the ‘Celtic tiger’) to the doctrinaire ultra-capitalists of former Communist Europe. Even ‘old Europeans’ were swept up in the wake. The EU’s free-market project—the so-called ‘Lisbon agenda’; the enthusiastic privatization plans of the French and German governments: all bore witness to what its French critics described as the new ‘pensée unique’. Today there has been a partial awakening. To avert national bankruptcies and wholesale banking collapse, governments and central bankers have performed remarkable policy reversals, liberally dispersing public money in pursuit of economic stability and taking failed companies into public control without a second thought. A striking number of free market economists, worshippers at the feet of Milton Friedman and his Chicago colleagues, have lined up to don sackcloth and ashes and swear allegiance to the memory of John Maynard Keynes. This is all very gratifying. But it hardly constitutes an intellectual revolution. Quite the contrary: as the response of the Obama administration suggests, the reversion to Keynesian economics is but a tactical retreat. Much the same may be said of New Labour, as committed as ever to the private sector in general and the London financial markets in particular. To be sure, one effect of the crisis has been to dampen the ardor of continental Europeans for the ‘Anglo-American model’; but the chief beneficiaries have been those same center-right parties once so keen to emulate Washington."

- Washington Consensus

0 likesEconomics
"A fully planned economy was based on the government deciding the priorities for production. Government ministries then issued production quotas, which factories strove to fulfill. The allocation of raw materials, energy, and workers was decided centrally, based on calculations of how much was needed to achieve the quotas on time. Transport, repairs, or new machinery were requested by the individual factory and decided on, according to political priority, by state institutions allocated such tasks. Investment and output were imagined to be in perfect balance, and resources therefore utilized to the utmost. Distribution replaced the market as a mechanism of dividing the output. No factories ever closed, and no workers were laid off. There was therefore full employment at all times. The country was a socialist economic machine, the purpose of which was to maximize production. Reality, of course, diverged rather substantially from this economic ideal, as did capitalist practices from free market thinking in nonsocialist countries. Although much was achieved in terms of increasing production during the first decades of full economic planning, mainly in industry (socialist agriculture always lagged behind), growth slowed later. Some of this is undoubtedly explained by the first phase of growth being pushed forward simply by unrealized potential from earlier decades. The resource advantages of centralization in an underdeveloped economy played a part in initial successes, as did the enthusiasm of workers to rebuild and see their factories and countries succeed. But there were also inefficiencies built into the planned economy, which became more glaring as economies matured. There was a lack of efficient allocation, innovation, and product differentiation. There was also a lack of incentives for workers, and a lack of economizing or preservation of resources, natural or industrial."

- Planned economy

0 likesEconomicsPolitics
""Commons" is an Old English word. According to my Japanese friends, it is quite close to the meaning that iriai still has in Japanese. "Commons," like iriai, is a word which, in preindustrial times, was used to designate certain aspects of the environment. People called commons those parts of the environment for which customary law exacted specific forms of community respect. People called commons that part of the environment which lay beyond their own thresholds and outside of their own possessions, to which, however, they had recognized claims of usage, not to produce commodities but to provide for the subsistence of their households. The customary law which humanized the environment by establishing the commons was usually unwritten. It was unwritten law not only because people did not care to write it down, but because what it protected was a reality much too complex to fit into paragraphs. The law of the commons regulates the right of way, the right to fish and to hunt, to graze, and to collect wood or medicinal plants in the forest. An oak tree might be in the commons. Its shade, in summer, is reserved for the shepherd and his flock; its acorns are reserved for the pigs of the neighbouring peasants; its dry branches serve as fuel for the widows of the village; some of its fresh twigs in springtime are cut as ornaments for the church — and at sunset it might be the place for the village assembly. When people spoke about commons, iriai, they designated an aspect of the environment that was limited, that was necessary for the community's survival, that was necessary for different groups in different ways, but which, in a strictly economic sense, was not perceived as scarce."

- Commons

0 likesEconomicsSociety
"Everything characteristic about the condition we call modern life has been a direct result of our access to abundant supplies of cheap fossil fuels. Fossil fuels have permitted us to fly, to go where we want to go rapidly, and [to] move things easily from place to place. Fossil fuels rescued us from the despotic darkness of the night. They have made the pharaonic scale of building commonplace everywhere. They have allowed a fractionally tiny percentage of our swollen populations to produce massive amounts of food. They have allowed us to develop industries of surpassing ingenuity and to push the limits of what it even means to be human to the strange frontier where man imagines himself into a kind of machine immortality. All of the marvels and miracles of the twentieth century were enabled by our access to abundant supplies of cheap fossil fuels. Even the applied technology of atomic fission, which came along in the mid-[20th-]century, would have been impossible without fossil fuels and may be impossible to continue very long into the future without them. The age of fossil fuels is about to end. There is no replacement for them at hand. These facts are poorly understood by the global population preoccupied with the thrum of daily life, but tragically, too, by the educated classes in the United States, who continue to be by far the greatest squanderers of fossil fuels. It is extremely important that we make an effort to understand what is about to happen to us because it will have earth-shaking repercussions for the way we live, the way the world is ordered, and whether the very precious cargo of human culture can move safely forward into the future."

- Fossil fuel

0 likesEconomicsFuels
"In view of the excitement throughout the country occasioned by the labor troubles and the lamentable loss of life and property in our own and other States, it become the duty of all good citizens to use their best efforts to preserve peace and uphold the law. Recognizing, as every one must, the unfortunate condition of the business, and financial interests of all classes of the community, and especially the hardship and suffereing of the laboring men, we must yet unitein maintaining to the fullest extent the majesty of the law and the protection of life and property. I therefore earnestly urge all good citizens, and especially the workingmen themselves, to abstain from all excited discussion of the prominent question of the day. The laboring men of our city are vitally interested in the preservation of peace and good order and the prevention of any possible destruction of property. I trust the leading men among the workingment fully realize that the interests of the whole city are their interests, and that any riot or destruction of life or property can work only injury to all classes and to the good name of our city. Every taxpayer will realize that any destruction of property will have to be paid for by the city, and would by so much increase the burden of taxation. In one day Pittsburgh has put upon herself a load that her taxpayers will struggle under for years. I again earnestly urge upon men of all clases in our city the necessity of sober, careful thought and the criminal folly of any precipitate action."

- Scranton general strike

0 likesEconomicsLabor
"And the biggest question mark of all is whether, at long last, robots and artificial intelligence really will make large numbers of people completely unemployable. If human labor is less needed in the future, that in principle is excellent news: a paradise of robotic servants awaits us. But our economies have always relied on the idea that people provide for themselves by selling their labor. If the robots make that impossible, then societies will simply come apart unless we reinvent the welfare state. Not all economists think that’s worth worrying about just yet. But those who do are reviving an idea that dates back to Thomas More’s 1516 book Utopia: a universal basic income. The idea still seems utopian, in the sense of fantastically unrealistic. Could we really imagine a world in which everyone gets a regular cash handout, enough to meet their basic needs, no questions asked? Some evidence suggests it’s worth considering. From 1974 to 1979, the idea was tried in a small Canadian town, Dauphin, in Manitoba. For five years, thousands of Dauphin’s poorest residents got monthly checks funded jointly by the provincial and federal governments. And it turns out that guaranteeing people an income had interesting effects. Fewer teenagers dropped out of school. Fewer people were hospitalized with mental health problems. And hardly anyone gave up work. New trials are under way to see if the same thing happens elsewhere. It would, of course, be enormously expensive. Suppose you gave every American adult $12,000 a year. That would cost 70 percent of the entire federal budget. It seems impossibly radical. But then, impossibly radical things do sometimes happen, and quickly. In the 1920s, not a single U.S. state offered old-age pensions; by 1935, Frances Perkins had rolled out Social Security across the nation."

- Basic income

0 likesJusticeSocietyEconomics
"These individual actions are really trans-actions instead of either individual behavior or the "exchange" of commodities. It is this shift from commodities and individuals to transactions and working rules of collective action that marks the transition from the classical and hedonic schools to the institutional schools of economic thinking. The shift is a change in the ultimate unit of economic investigation. The classic and hedonic economists, with their communistic and anarchistic offshoots, founded their theories on the relation of man to nature, but institutionalism is a relation of man to man. The smallest unit of the classic economists was a commodity produced by labor. The smallest unit of the hedonic economists was the same or similar commodity enjoyed by ultimate consumers. One was the objective side, the other the subjective side, of the same relation between the individual and the forces of nature. The outcome, in either case, was the materialistic metaphor of an automatic equilibrium, analogous to the waves of the ocean, but personified as "seeking their level." But the smallest unit of the institutional economists is a unit of activity -- a transaction, with its participants. Transactions intervene between the labor of the classic economists and the pleasures of the hedonic economists,simply because it is society that controls access to the forces of nature, and transactions are, not the "exchange of commodities," but the alienation and acquisition, between individuals, of the rights of property and liberty created by society, which must therefore be negotiated between the parties concerned before labor can produce, or consumers can consume, or commodities be physically exchanged."

- Transaction cost

0 likesCommerceEconomicsOrganizational theory
"All but one of those just mentioned was a psychologist by education, so it should not be surprising that their view of organization theory emphasizes internal processes and resembles the micro approach of organizational behavior. Another group of theorists, all but one educated as a sociologist, viewed organizations as a product of macro environmental forces. These behavioralists were Jeffrey Pfeffer and Gerald Salancik, Michael Hannan and John Freeman, and John Meyer and Richard Scott. Pfeffer (the only nonsociologist) and Salancik presented a resource-dependent theory that postulates that organizations require support from their external environment and can only survive to the extent that this support is forthcoming. Managers form coalitions to gather support in an open system of external relationships in which there are constraints that create either a munificent or scarce resource situation. Hannan and Freeman’s organizational ecology theory offers the idea that organizational survival is a process of adaptation and success, or fail to adapt and exit. The authors recognized the Darwinian nature of their theory, but have used it to study organizational populations such as labor unions and newspapers for population entries, adaptation, and mortality. The neo-institutional theory of Meyer and Scott (and others) holds that organizational environments are shaped by societal expectations that provide legitimacy to an organization’s existence. By conforming to cultural rules, such as custom or law, formal organizations are able to take on the prevailing view of society."

- Theory of the firm

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"The former colonial world was a more promising arena for US-Soviet competition. With their large populations, crucial raw materials, and strategically important locations, Third World countries represented a prime arena to launch a global contest between capitalism and communism. Beginning in 1953 Washington and Moscow, eager to supplant European control while advertising their own anti-imperialist credentials, formulated two rival economic development models accompanied by generous military and civilian aid packages and goodwill gestures (from student scholarships to high-level government visits) to attract the elites in the colonial and semicolonial states of Asia, the Middle East, Africa, and Latin America. Both deployed their overseas intelligence agencies, the CIA and the KGB, to enlist allies and informants in the Third World, monitor political movements and foreign governments, and penetrate their rivals’ activities. Both sides entered this global competition with assets and liabilities, and both approached the Third World with a combination of ambition, altruism, and fear of the other’s gains. The United States, brimming with confidence over its role in rebuilding Western Europe and Japan, sought to extend its political influence by supporting the expansion of free markets and elected governments. The Soviet Union, which had revived spectacularly after World War II as a major military and industrial power, countered the West’s appeal with its call for centralized planning and a regime that promoted social and economic justice."

- Third World

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"Mr. Speaker, we know that our alliance -- if it holds firm -- cannot be defeated, but it could be outflanked. It is among the unfree and the underfed that subversion takes root. As Ethiopia demonstrated, those people get precious little help from the Soviet Union and its allies. The weapons which they pour in bring neither help nor hope to the hungry. It is the West which heard their cries; it is the West which responded massively to the heart-rending starvation in Africa; it is the West which has made a unique contribution to the uplifting of hundreds of millions of people from poverty, illiteracy and disease. But the problems of the Third World are not only those of famine. They face also a mounting burden of debt, falling prices for primary products, protectionism by the industrialized countries. Some of the remedies are in the hands of the developing countries themselves. They can open their markets to productive investment; they can pursue responsible policies of economic adjustment. We should respect the courage and resolve with which so many of them have tackled their special problems, but we also have a duty to help. How can we help? First and most important, by keeping our markets open to them. Protectionism is a danger to all our trading partnerships and for many countries trade is even more important than aid. And so, we in Britain support President Reagan 's call for a new GATT round. The current strength of the dollar, which is causing so much difficulty for some of your industries, creates obvious pressures for special cases, for new trade barriers to a free market. I am certain that your Administration is right to resist such pressures. To give in to them would betray the millions in the developing world, to say nothing of the strains on your other trading partners. The developing countries need our markets as we need theirs, and we cannot preach economic adjustment to them and refuse to practise it at home. And second, we must remember that the way in which we in the developed countries manage our economies determines whether the world's financial framework is stable; it determines the level of interest rates; it determines the amount of capital available for sound investment the world over; and it determines whether or not the poor countries can service their past loans, let alone compete for new ones. And those are the reasons why we support so strongly your efforts to reduce the budget deficit. No other country in the world can be immune from its effects -- such is the influence of the American economy on us all."

- Third World

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"The Cold War was born as an ideological contest in Europe and the European offshoots, Russia and the United States. In the second half of the twentieth century that contest came to interact with the processes surrounding the collapse of the European overseas empires. Europe had been predominant in international affairs for at least two centuries. But as the post–World War II re-creation of Asia had shown, this position of primacy could no longer be taken for granted. And in the 1950s and ’60s decolonization sped up, so that by 1970 the number of independent states had increased almost four times since 1945. They all wanted to have their say in how the world was run. And they were not willing to conform to the bipolar Cold War system without a struggle for their own interests. Out of this encounter between Cold War and decolonization came the Third World movement. It was so named by its protagonists in homage to the Third Estate, the rebellious underdog majority of the French Revolution of 1789. But its aims were very contemporary. Leaders of newly independent states, such as Indonesia’s Sukarno or India’s Nehru, believed that the time had come for their countries to take center stage in international affairs. Europeans, a small minority in the world, had dominated for far too long, and had not done a good job of it. Not only had they produced colonialism and two world wars, but within colonialism they had created a political and economic system that only served the interests of Europeans. The talents, opinions, cultures, and religions of the vast majority of the world’s people had been neglected. Now the time had come for the disenfranchised to take responsibility not just for their own liberated countries, but for the world as a whole."

- Third World

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"To Third World leaders the Cold War was an outgrowth of the colonial system. It was an attempt by Europeans to regulate and dominate the affairs of others, to tell them how to behave and what to do. Even though many in the newly independent states distrusted capitalism because it was the system their colonial masters had tried to impose on them, in most cases they were not ready to embrace Soviet-style Communism as an alternative. It seemed far too regimented, too absolutist, or simply too European for postcolonial states. Even when attempting to learn from the Soviet experience, as many did, for instance in India or Indonesia, the Third World agenda implied independence from the power blocs. As developed at the 1955 Afro-Asian Bandung Conference, this agenda stressed full economic and political sovereignty, solidarity among former colonial countries and liberation movements, and peaceful resolution of conflict, followed by nuclear disarmament. For the Superpowers this was a perturbing spectacle. The United States increasingly put its own national experience at the core of its perception of global development. As the Cold War hardened, countries that did not conform to US visions of liberty and economic growth were believed to be sliding toward a Soviet orientation. The Soviet Union, on its side, believed that any “third” position was simply a stage on the way to socialism and eventually the Soviet form of Communism. No wonder non-Europeans saw significant similarities between the two Superpowers, in spite of their ideological rivalry. Indeed, leaders such as Ahmed Ben Bella in Algeria or Kwame Nkrumah in Ghana compared the demands the Superpowers made on them to colonialism in its latter phase. The Americans and the Soviets wanted political and diplomatic control, but also sought development within the framework that the Superpowers could offer. They were thieves on the same market, even though the US bid for control was much more powerful, and therefore more pervasive, than anything the Soviets could muster."

- Third World

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"Climate change and biodiversity loss . . . pose an even greater existential threat [than the COVID-19 pandemic], to the extent that we have to put ourselves on what might be called a war-like footing. . . . Putting a value on carbon . . . [is] absolutely critical. . . . [W]e need a vast military style campaign to marshall the strength of the global private sector[, which has] trillions at its disposal . . . . [E]ach sector needs a clear strategy to speed up the process of getting innovations to market [and we] need to align private investment behind these industry strategies. . . . If we can develop a pipeline of many more sustainable and "bankable" projects, at a sufficient scale, it will attract greater investment. . . . CEOs and institutional investors have told me that alongside the promises countries have made, their nationally determined contributions, they need clear market signals, agreed globally, so that they have the confidence to invest without the goal posts suddenly moving. . . . [[wikipedia:Charles III#Natural_environment|[W]e are working]] to drive trillions of dollars in support of transition across ten of the most emitting and polluting industries [including] energy, agriculture, transportation, health systems and fashion. . . . I can only urge you, as the world’s decision-makers, to find practical ways of overcoming differences so we can all . . . rescue this precious planet and save the threatened future of our young people."

- Sustainable development

0 likesEnvironmentEconomics
"There was a strange aftertaste to many of the calls for grand social reform in 2020. As the coronavirus crisis overtook us, the left wing on both sides of the Atlantic, at least that part that had been fired up Jeremy Corbyn and Bernie Sanders, was going down to defeat. The promise of a radicalized and reenergized left, organized around the idea of the Green New Deal, seemed to dissipate amidst the pandemic. It fell to governments mainly of the center and the right to meet the crisis. They were a strange assortment. Jair Bolsonaro in Brazil and Donald Trump in the United States experimented with denial. For them climate skepticism and virus skepticism went hand in hand. In Mexico, the notionally left-wing government of Andrés Manuel López Obrador also pursued a maverick path, refusing to take drastic action. Nationalist strongmen like Rodrigo Duterte in the Philippines, Narendra Modi in India, Vladimir Putin in Russia, and Recep Tayyip Erdoğan in Turkey did not deny the virus, but relied on their patriotic appeal and bullying tactics to see them through. It was the managerial centrist types who were under most pressure. Figures like Nancy Pelosi and Chuck Schumer in the United States, or Sebastián Piñera in Chile, or Cyril Ramaphosa in South Africa, Emmanuel Macron, Angela Merkel, Ursula von der Leyen, and their ilk in Europe. They accepted the science. Denial was not an option. They were desperate to demonstrate that they were better than the 'populists.' To meet the crisis, very middle-of-the-road politicians ended up doing very radical things. Most of it was improvisation and compromise, but insofar as they managed to put a programmatic gloss on their responses—whether in the form of the EU's Next Generation program or Biden's Build Back Better program in 2020—it came from the repertoire of green modernization, sustainable development, and the Green New Deal."

- Sustainable development

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"A fresh revolt of the Venetians resulted in an order... by the emperor to confiscate all their property... and to seize and imprison their persons. The doge... issued orders... to depart immediately. ...The emperor, in return... letting loose a fleet and waging a destructive war upon all the dependencies of Venice. The Venetians were aroused as never before... and in one hundred days... [o]ne hundred and thirty fully armed vessels sailed under the command of Doge Vitale Michieli II. The fleet departed for Dalmatia. Trau and Ragusa were taken and well-nigh destroyed, and the fleet sailed for the Archipelago. When off Negropont they were met by the governor, who persuaded the doge to send ambassadors to the emperor. These Venetian envoys were... detained all winter in prolix negotiations. In the meantime a... plague broke out among the fleet at ... and in the spring of 1173 a miserable remnant... of only seventeen vessels, made its way back to Venice, carrying with it the seeds of the plague. ...The imported pestilence spread itself over the city, sparing neither sex, age, nor condition; the populace accused the doge of being the author of these calamities, and when he appeared before the infuriated multitude he was murdered on the steps of the ducal palace. But out of all this misery and disorder arose a new order... Changes were made in the character of the government, limiting the powers of the doge, and Sebastiano Ziani was elected and installed in the ducal palace."

- History of banking

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"Britain was at war alternately on two fronts—first with the American colonies... then with Napoleon... Money was needed... Pitt was relentless... in his demands on the Bank for loans. Though taxes were increased... the need continued. ...Bank reserves dwindled, and there were occasional runs. Finally, in 1797, under conditions of great tension... the Bank suspended the right of redemption of its notes and deposits in gold and silver. The principal immediate consequence... disappearance of gold and silver coins... People passed on the notes and kept the metal. ...The Bank hurriedly printed one- and two-pound notes, and it also redeemed from its vaults a store of plundered Spanish pieces of eight. ...The needs of the government continued... Loans and the resulting note issues continued to increase. ...so did prices and the price of gold. ...[I]n reflection of the distribution of power... the concern was focused not on the price of food but on the price of gold. In... 1810, the House of Commons impaneled a committee... The committee... found... an overissue of the still irredeemable... notes [and] proposed that, after a two year period, the Bank make its notes fully convertible into specie once again. Thus... there could be no increase in the price of metal. There followed in 1811 a famous debate on the nature of money and its management... In the debate... is a difference of opinion that continues to this day. Where does economic change originate? Does it begin with those [in the banks] who are responsible for money... who made the loans and thus caused the supply of notes... to increase. (From this... the stimulating effect of rising prices on production and trade.) Or does change begin with production? ...with consequent effect on the demand for loans and thence on the supply of money? In short, does money influence the economy or does money respond to the economy? The question is still asked."

- History of banking

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"A greater danger to gold was war. The gold standard in the last century owed much to the intelligent management of the ... It owed much more to the British peace. In the next century warring governments would, as did that of Pitt, turn to their central banks for the money that they could not raise in taxes. And no bank, whatever its pretense to independence, would even think of resisting. Most dangerous of all would be democracy. The Bank of England was the instrument of a ruling class. Among the powers the Bank derived from the ruling class was that of inflicting hardship. It could lower prices and wages, increase unemployment. These were the correctives when gold was being lost; euphoria was excessive. Few or none foresaw that farmers and workers would one day have the power that would make governments unwilling to impose these hardships even in so righteous a cause as defense of the currency. However, it was early seen that the interests of the rich in these matters could differ from those of others. Writing in 1810, Ricardo [made that observation in a September 6 letter to the Morning Chronicle editor]... In England the triumph of Ricardo's monied class was complete or nearly so. In the United States, however, it was subject to the sharpest of challenges. In one form or another, this challenge was to dominate American politics for the first century and a half of the Republic. Only the politics of slavery would divide men more angrily than the politics of money."

- History of banking

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"The banks... provided the money that financed the speculation that in each case preceded the crash. Those buying land, commodities or railroad stocks and bonds came to the banks for loans. As the resulting notes and deposits went into circulation, they paid for the speculative purchases of yet others. It helped that the banks were small and local and thus could believe what the speculators believed... that values would go up for ever. The banking system... was well designed to expand the supply of money as speculation required. Banks and money also contributed to the ensuing crash. A farther constant of all the panics was that banks failed. In the earlier panics the will-of-the-wisp enterprises... disappeared... Later in the century, the casualties continued, and still most heavily among the small state banks. ...After 1920, the real slaughter began, and, after 1929, it approached euthanasia. In the four years beginning in 1930, more than 9000 banks and bankers hit the dust. A bank failure is not an ordinary business misadventure. ...Owners lose their capital and depositors their deposits, and both therewith lose their ability to purchase ...But failure (or... fear of failure) also means a shrinkage in the money supply. ...A healthy bank is making loans and, in consequence, creating deposits that, in turn, are money. A bank that fears failure is contracting its loans and therewith its deposits. And one that has failed is liquidating its loans, and its frozen deposits are no longer money. The liquidation also draws on the reserves, loans, deposits and thus the money supply of other banks."

- History of banking

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"One of the most prevalent ideological mantras of Western capitalism is that the market should rule. But as the latest health and economic crises demonstrate, capitalists soon forget their worship of the market when times get tough. They scream for government money, and plenty of it. It turns out that “the market” is fine when it comes to whipping workers to accept lower wages, but when it comes to lower profits, the market can go hang. [...] Faced with the collapse of the capitalist economy, for the second time in a dozen years, with massive bankruptcies on the table and the stock market plunging by more than 30 percent and more to come, fervent advocates of the free market are now embracing government intervention to save their skins. [...] Governments around the world are now laying out money on things that just weeks ago they would have attacked as unaffordable. [...] It’s not that governments have suddenly discovered a big pot of gold in the basement of the . They say that they are taking these measures to both protect and to save the economy. But it’s obvious which takes priority. The new measures constitute the largest bailout bonanza in world history, carried out through state-administered transfers of public wealth and current and future debt to billionaires and : socialisation of losses, privatisation of profits. The outcome will be to further transfer, consolidate and concentrate wealth, just as has occurred since the GFC. While there is discussion about small handouts, nothing serious is being proposed to halt the mass layoffs now gathering steam."

- Bailout

0 likesEconomicsGovernment
"There are 2.9 hospital beds for every 1,000 people in the United States. That’s fewer than Turkmenistan (7.4 beds per 1,000), Mongolia (7.0), Argentina (5.0) and Libya (3.7). In fact, the US ranks 69th out of 182 countries analyzed by the World Health Organization. This lack of hospital beds is forcing doctors across the country to ration care under Covid-19, pushing up the number of preventable deaths. America’s numbers are similarly unimpressive when it comes to medical doctors. The United States has 2.6 doctors per 1,000 people, placing it behind Trinidad & Tobago (2.7), and Russia (4.0 doctors per 1,000, for a country that is described as being “in transition”). Life expectancies at birth are lower in the US than they are in Chile or China. The US has a higher maternal mortality rate than Iran or Saudi Arabia. It’s not just health. Access to the internet is better in Bahrain and Brunei (two countries the UN does not consider developed economies) than it is in the US. Inequality scores are higher in America than they are in Mali and Yemen. A closer country to America in inequality is Israel, a country which functions as an apartheid state. And the US ranks 81st in the world in terms of women’s political representation. So, you’ve got a better chance of making it into office as a woman if you live in Vietnam, or Albania. Sub-Saharan Africa is most comparable to America – 24% of seats in the region’s parliaments are held by women, the same figure as in the US. In the United States, 83% of students graduate high school. That figure is higher in Belarus, Ukraine, Kazakhstan, Barbados, Armenia, Bosnia & Herzegovina and Montenegro. None of those countries are considered “developed economies” by the United Nations."

- Developed country

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"We in Europe have watched with admiration the burgeoning of this mighty American economy. There is a new mood in the United States. A visitor feels it at once. The resurgence of your self-confidence and your national pride is almost tangible. Now the sun is rising in the West. For many years, our vitality in Britain was blunted by excessive reliance on the State. Our industries were nationalized, controlled, and subsidized in a way that yours never were. We are having to recover the spirit of enterprise which you never lost. Many of the policies you are following are the policies we are following. You have brought inflation down. So have we. You have declared war on regulations and controls. So have we. Our Civil Service is now smaller than at any time since the War and controls on pay, prices, dividends, foreign exchange, all are gone. You have encouraged small business -- so often the source of tomorrow's jobs. So have we. But above all, we are carrying out the largest program of denationalization in our history. Just a few years ago, in Britain, privatization was thought to be a pipe dream. Now it is a reality and a popular one. Our latest success was the sale of British Telecommunications. It was the largest share issue ever to be brought to the market on either side of the Atlantic -- some 2 million people bought shares. Members of Congress, that is what capitalism is -- a system which brings wealth to the many and not just to the few."

- Margaret Thatcher

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"Now, Therefore, I, Woodrow Wilson, President of the United States, under and by virtue of the powers vested in me by the foregoing resolutions and statute, and by viture of all other powers thereto me enabling, do hereby, through Newton D. Baker, Secretary of War, take possession and assume control at 12 o'clock noon on the twenty-eight day of December, 1917, of each and every system of transportation and the appurtenances thereof located wholly or in part within the boundaries of the continental United States and consisting of railroads, and owned or controlled systems of coastwise and inland transportation, engaged in general transportation, whether operated by steam or by electric power, including also terminals, terminal companies and terminal associations, sleeping and parlor cars, private cars and private car lines, elevators, warehouses, telegraph and telephone lines and all other equipment and appurtenances commonly used upon or operated as a part of such rail or combined rail and water systems of transportation; - to the end that such systems of transportation be utilized for the transfer and transportation of troops, war material and equipment, to the exclusion so far as may be necessary of all other traffic thereon; and that so far as such exclusive use be not necessary or desirable, such systems of transportation be operated and utilized in the performance of such other services as the national interest may require and of the usual and ordinary business and duties of common carriers."

- Woodrow Wilson

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"The concepts formulated at Bretton Woods and Havana, which brought into being the International Bank for Reconstruction and Development, the International Monetary Fund and the General Agreement on Tariffs and Trade, were characterized by exchange, trade and development-financing systems based on the interests of a few dominant countries. They evolved at a time when war between the industrial countries of the West and the socialist world seemed inevitable. As always, economic interests and political interest joined forces to overbear the countries of the Third World. Our development was hampered by economic obstacles; and every time a people resolved to make a bid for emancipation, all possible means of attack were used against it. The systems in question established the rules of the trade game. They closed markets to the products of the Third World through the establishment of tariff and non-tariff barriers, through their own anti-economic and unfair production and distribution structures. They set up harmful practices and norms, fixed freight rates, and thus secured a virtual monopoly of cargo. They also left the Third World countries to watch the advance of science as outsiders and exported to us technical know-how which in many cases was simply an instrument of cultural alienation and of increased dependence. For example, in the international telecommunications system a formidable danger is implicit. Today, 75 percent is in the hands of the developed countries of the West; and of this proportion more than 60 percent is controlled by the big United States corporations, with whose policy we are familiar. I wish to point out that, in less than ten years, our community institutions and our homes will be flooded by information and publicity which will be directed from abroad by means of satellites of high transmission power, and which, unless they are counteracted by timely measures, will serve only to increase our dependence and destroy our cultural values. This danger must be averted by the international community, which should demand that control be exercised by the United Nations."

- International Monetary Fund

0 likesOrganizations based in Washington, D.C.EconomicsInternational organizationsInternational Monetary Fund
"When President Franklin Delano Roosevelt and other Western leaders were starting to plan for the postwar world, they had the recent past very much in their minds in other ways. They wanted to build a robust world order that would prevent the world from sliding, yet again, into another deadly conflict. The interwar years had been unstable ones, partly because the League of Nations had not been strong enough. Key powers, the United States in particular, had not joined or, like Germany and Japan, had dropped out. This time, Roosevelt was determined that the United States should be a member of the new United Nations. He was also prepared to do a good deal to keep the Soviet Union in. What had been a precariously balanced international order was put under further strain in the 1930s by the Great Depression, which encouraged countries to turn inward, throwing up tariff walls to protect their own workers and their own industries. What may have made sense for individual nations was disastrous for the world as a whole. Trade and investment dropped off sharply and national rivalries were exacerbated. To avoid that happening again, the Allies, with the Soviet Union's grudging acquiescence, created the economic institutions known collectively as the Bretton Woods system. The World Bank, the International Monetary Fund, and the International Trade Organization (this last did not materialize as the World Trade Organization until much later) were designed to provide stability to the world's economy and to encourage free trade among nations. How much difference these all made to the international order after 1943 will always be a matter of debate, but the world did not get a repeat of the 1930s."

- International Monetary Fund

0 likesOrganizations based in Washington, D.C.EconomicsInternational organizationsInternational Monetary Fund
"The International Monetary Fund (IMF) provides funds to governments which have short-term liquidity problems. The World Bank invests in infrastructural projects. Both institutions are based in Washington and are controlled by the US. The head of the World Bank is always an American, and the IMF is always headed by a European, usually French. The IMF provided resources for France and Portugal to resist challenges in their colonies, and without these funds, decolonisation would have begun earlier. In the new Third World states, the World Bank and IMF favoured those states which adopted the American model. They became powerful instruments in the hands of the US and often infl uenced private bank lending as well. When the US left the gold standard in 1971, it became easier for Third World states to access loans. The rapid rise in oil prices after 1973 made more funds available as the oil-rich states sought to invest their new-found wealth, but the Third World fell into the trap of accepting cheap loans and gradually became heavily indebted. US banks were happy to lend to Third World states assuming that Washington would bail them out if these states defaulted on their debts. The newly independent states were often dependent on exporting raw materials, but prices fell as technology advanced. The US aim was to create an international environment which promoted convergence between communism and capitalism, but the opposite occurred. Hence US policy made it more diffi cult for developing states to raise living standards as so much wealth had to be used to service debt. This, inevitably, contributed to the growth of left-wing movements."

- International Monetary Fund

0 likesOrganizations based in Washington, D.C.EconomicsInternational organizationsInternational Monetary Fund
"The “sharing economy” sure has a nice ring to it, doesn’t it? As the saying goes, “sharing is caring.” Through Uber, the sharing economy’s poster-child, thousands of drivers have turned their personal cars into money-making vehicles. Homeowners internationally have earned extra cash by using another popular sharing service, AirBnB. These companies’ ads are filled with smiling people, caring about each other and just wanting to do good... It’s unfortunate then that these companies and the misnamed “sharing economy” are really just fronts for millionaires and billionaires to opportunistically ride off the backs of everyday people, while also exacerbating many economic inequalities.,, The premise is seductive in its simplicity: people have skills, and customers want services. Silicon Valley plays matchmaker, churning out apps that pair workers with work. Now, anyone can rent out an apartment with AirBnB, become a cabbie through Uber, or clean houses using Homejoy. But under the guise of innovation and progress, companies are stripping away worker protections, pushing down wages, and flouting government regulations. At its core, the sharing economy is a scheme to shift risk from companies to workers, discourage labor organizing, and ensure that capitalists can reap huge profits with low fixed costs. There’s nothing innovative or new about this business model. Uber is just capitalism, in its most naked form. It’s Anything but Sharing Since when has paying for something ever been the definition of sharing?"

- Sharing economy

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"It’s no wonder, then, that Uber drivers in LA, San Francisco, Seattle, New York, and elsewhere have protested... upset about their industry being disrupted (a term the tech world loves) by a company offering low wages, stripping away worker protections, and bypassing regulations – all while stuffing the wallets of Silicon Valley executives.... As sharing activist Mira Luna puts it, “If greed was a major characteristic of the dying economy, sharing is a key element of the blueprint or DNA for the new economy.”...people should be able to use a service like AirBnB or Uber. But they should also own them cooperatively. A cooperative is a business or organization that is democratically owned and governed by its membership. This membership can be comprised of workers, consumers, producers, and a combination thereof... Cooperatives exist all around world, as well as in almost every sector. In the bad times, members of cooperatives collectively share the burden. In the good times, members of cooperatives collectively share the benefits. They also democratically govern the organization – one member, one share, one vote. In short, cooperatives are means to voluntarily redistribute the wealth amongst the laborers and the producers... Already, cooperatives are breaking into the domain of the sharing economy – in theory and in practice – and many of the people leading the charge are those dissatisfied with what both the traditional economy and the sharing economy had to offer them."

- Sharing economy

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"A major theme in the early years of the sharing economy was that these new services were more environmentally beneficial than existing businesses, in part because they were using ‘idle resources’; Airbnb claimed it would reduce new hotel construction. Ride-sharing apps like Uber and Lyft were expected by many to reduce car ownership, increase the number of passengers per ride, and reduce carbon emissions. However, it has been difficult to assess these claims because the companies will not provide their data to independent researchers. But there are strong reasons to believe that platforms are increasing, rather than reducing environmental impacts, and especially climate emissions. The evidence is hiding in plain sight: lower prices lead to more demand. In the lodging sector, cheap accommodation increases miles travelled and trips taken. Furthermore, Airbnb enables hosts to rent out their homes when they travel, so that lodging is essentially free. (We also find some hosts travel specifically to rent, to take advantage of price arbitrage – they can rent out their homes at a higher rate than the places they stay at.) Similarly, in the US ride-hailing apps appear to be taking people away from lower-carbon modes of transport. A recent study based on survey data finds that had there been no transportation app, 49–61% of ride-hailing trips would have either not been made at all, or been taken via walking, biking or transit (Clewlow and Mishra 2017). Furthermore, this study finds that there is no reduction in car ownership as a result of ride-hailing."

- Sharing economy

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"It came shortly after Mao's death in September of that year, and by the end of 1978 Deng had outmaneuvered all of his rivals to become China's "paramount" leader. He had already by then turned the tables on his predecessor by claiming that Mao had been right seventy percent of the time and wrong thirty percent: this now became party doctrine. Among the "right" things Mao had done were reviving China as a great power, maintaining the Communist Party's political monopoly, and opening relations with the United States as a way of countering the Soviet Union. Among the "wrong" things was Mao's embrace of a disastrously administered command economy. With this pronouncement on percentages, Deng won himself room to pursue a very different path. It involved experimenting with markets at local and regional levels, after which Deng would declare whatever worked to be consistent with Marxist-Leninist principles. Through this bottom-up approach, he showed that a communist party could significantly, even radically, improve the lives of the people it ruled—but only by embracing capitalism. Per capita income tripled in China between 1978 and 1994. Gross domestic product quadrupled. Exports expanded by a factor of ten. And by the time of Deng's death in 1997, the Chinese economy had become one of the largest in the world. The contrast with the moribund Soviet economy, which despite high oil prices showed no growth at all in the 1970s and actually contracted during the early 1980s, was an indictment from which Soviet leaders never recovered. "After all," the recently deposed Mikhail Gorbachev commented ruefully in 1993, "China today is capable of feeding its people who number more than one billion.""

- Chinese economic reform

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"In 1978, after years of state control of all productive assets, the government of China embarked on a major program of economic reform. In an effort to awaken a dormant economic giant, it encouraged the formation of rural enterprises and private businesses, liberalized foreign trade and investment, relaxed state control over some prices, and invested in industrial production and the education of its workforce. By nearly all accounts, the strategy has worked spectacularly. While pre-1978 China had seen annual growth of 6 percent a year (with some painful ups and downs along the way), post-1978 China saw average real growth of more than 9 percent a year with fewer and less painful ups and downs. In several peak years, the economy grew more than 13 percent. Per capita income has nearly quadrupled in the last 15 years, and a few analysts are even predicting that the Chinese economy will be larger than that of the United States in about 20 years. Such growth compares very favorably to that of the "Asian tigers"--Hong Kong, Korea, Singapore, and Taiwan Province of China--which, as a group, had an average growth rate of 7-8 percent over the last 15 years. Curious about why China has done so well, an IMF research team recently examined the sources of that nation's growth and arrived at a surprising conclusion. Although capital accumulation--the growth in the country's stock of capital assets, such as new factories, manufacturing machinery, and communications systems--was important, as were the number of Chinese workers, a sharp, sustained increase in productivity (that is, increased worker efficiency) was the driving force behind the economic boom. During 1979-94 productivity gains accounted for more than 42 percent of China's growth and by the early 1990s had overtaken capital as the most significant source of that growth. This marks a departure from the traditional view of development in which capital investment takes the lead. This jump in productivity originated in the economic reforms begun in 1978."

- Chinese economic reform

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"In China, they started on limited economic reform first but it was beginning to succeed in producing more goods for the people—on a limited scale certainly, but it was beginning to succeed. You cannot get economic reform really going well and with a future unless you get political liberty. That was what they found. We have always known it. Here, I think it was perhaps the wiser way to start: to start with the political reform, the thorough discussion. After all, new ideas come out of discussion and free interplay of ideas and discussion between one and the other. The glasnost as it is called, has gone very far very quickly, far further, far faster than we thought and I think that plus the communication of the ideas will in the end lead to much greater prosperity. I think the point that I have to make again is that although the politicians at the top—led by Mr. Gorbachev—could bring about the glasnost, it requires the practical and willing cooperation of the people to enlarge their responsibility and their activity to bring success in economic reform. I believe that will come about. I believe that the changes—the glasnost—really have become permanent because they have gone so much further than anything we thought and they have given a so much better atmosphere and less tension—the fear seems to have gone—and so I believe that perestroika is now set upon its course and that it will go through to success."

- Chinese economic reform

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"If we're leaving our fate to sociopathic buffoons, we're finished... We are talking about U.S. decline but you just look at the world, you don't see that when the U.S. imposes sanctions, murderous, devastating sanctions, that's the only country that can do that, but everyone has to follow... they have to follow the master, or else they get kicked out of the international financial system. That's not a law of nature, it's a decision in Europe to be subordinate to the master in Washington. Other countries don't even have a choice... And back to the coronavirus, one of the most shocking harsh aspects of it, is the use of sanctions, to maximize the pain, perfectly consciously...Cuba has been suffering from it from the moment where it gained independence, but it's astonishing that they survived but they stayed resilient and one of the most ironic elements of today's virus crisis, is that Cuba is helping Europe... this is so shocking, that you don't know how to describe it. That Germany can't help Greece, but Cuba can help the European countries. If you stop to think about what that means, all words fail, just as when you see thousands of people dying in the Mediterranean, fleeing from a region that has been devastated... The Crisis, the civilizational crisis of the West at this point is devastating... it does bring up childhood memories of listening to Hitler raving on the radio to raucous crowds... it makes you wonder if this species is even viable."

- United States embargo against Cuba

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"If it weren’t bad enough that the U.S. has imposed an illegal embargo against Cuba for over 50 years, it has also tried to prevent those interested in learning about this embargo (more accurately termed a blockade because the U.S. aggressively enforces it against third countries to stop them from trading with the island) from reading Salim Lamrani’s new book, The Economic War Against Cuba.... author Salim Lamrani... explains that the U.S. war against post-revolutionary Cuba began on March 17, 1960 – one month before Cuba established relations with Moscow. Lamrani relates that this war, declared by President Eisenhower, was “built on several pillars: the cancellation of the Cuban sugar quota, an end to the deliveries of energy resources such as oil, the continuation of the arms embargo imposed in March 1958, the establishment of a campaign of terrorism and sabotage, and the organization of a paramilitary force designed to invade the island overthrow Fidel Castro.” This war would then be expanded by President Kennedy in 1962 to include the unprecedented economic blockade against Cuba – a blockade which continues to this day... it demonstrates what Noam Chomsky has argued numerous times before: that during the Cold War the U.S. intentionally pushed Third World countries guilty of declaring their independence from U.S. hegemony towards the Soviet Union so as to manufacture a convenient pretext for U.S. belligerence.... Indeed, the stated purpose of the blockade all along has been to inflict suffering on the Cuban people to achieve the U.S.’s political objective of regime – the sine a qua non of terrorism."

- United States embargo against Cuba

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