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It's the economy, stupid
Economics, business, statistics
Curated by Alda Telles
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The four lessons of happynomics - FT.com

The four lessons of happynomics - FT.com | It's the economy, stupid | Scoop.it
The discipline of happynomics (or to give it an academically respectable title, “the economics of subjective well-being”) is booming. Respected economists have joined the field, from Lord Layard in the UK to White House appointees such as Alan
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Dani Rodrik explains why Capital in the Twenty-First Century has become so successful in the US. - Project Syndicate

Dani Rodrik explains why Capital in the Twenty-First Century has become so successful in the US. - Project Syndicate | It's the economy, stupid | Scoop.it

It is difficult to believe that Thomas Piketty's book Capital in the Twenty-First Century would have had the impact that it has had ten or even five years ago, even though identical arguments and evidence could have been marshaled then. But it is now acceptable to talk about inequality in America as the central issue facing the country.

Alda Telles's insight:

Capital in the Twenty-First Century has reignited economists’ interest in the dynamics of wealth and its distribution – a topic that preoccupied classical economists such as Adam Smith, David Ricardo, and Karl Marx. It has brought to public debate crucial empirical detail and a simple but useful analytical framework. Whatever the reasons for its success, it has already made an undeniable contribution both to the economics profession and to public discourse.

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Our manifesto for Europe

Our manifesto for Europe | It's the economy, stupid | Scoop.it
Thomas Piketty: European Union institutions no longer work. A radical financial and democratic settlement is needed
Alda Telles's insight:

'A single currency with 18 different public debts on which the markets can freely speculate, and 18 tax and benefit systems in unbridled rivalry with each other, is not working, and will never work.'

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How accurate are OECD forecasts?

How accurate are OECD forecasts? | It's the economy, stupid | Scoop.it

In a “post-mortem” project, the OECD examined the accuracy of the economic forecasts it issued between 2007 and 2012, a period of seemingly endless economic turbulence. The study reports that, in general, the OECD tended to be too optimistic – it didn’t predict the scale of the collapse in economic activity between 2008-09 and then overestimated the speed of the subsequent recovery.

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This Incredible Chart Explains Almost All Of Recent Economic History

This Incredible Chart Explains Almost All Of Recent Economic History | It's the economy, stupid | Scoop.it
This is a must-see.
Alda Telles's insight:

In the chart you can see how lower income percentiles have seen monster growth since the late '80s. This growth represents the emerging economies and the rise of the Chinese middle class. Then you have the developed world middle class, which has seen almost no real income growth over the last few decades (which probably explains a lot of the current angst over inequality). And then you have the rise of the ultra-elite, the global 1%, which has done fantastically well during all this time.

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9 Economic Trends to Watch in 2014

9 Economic Trends to Watch in 2014 | It's the economy, stupid | Scoop.it
From the rise of rich, stupid people to the death of peak
oil, here's what's trending in the global economy.
Alda Telles's insight:

From the rise of rich, stupid people to the death of peak oil, here's what's trending in the global economy. 

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How Basic Income Will Save Capitalism

How Basic Income Will Save Capitalism | It's the economy, stupid | Scoop.it

Thought to be utopian today, soon it will be called merely impractical, and ultimately, inevitable.  My confidence in this happy outcome is not because providing a basic income is moral, equitable and affordable but because basic income cleanly and neatly solves the bête noire of our modern capitalist economies: lack of demand.

 

After all, supply isn’t the issue. Today, despite our never-ending economic travails, the world economy has more capacity, is more productive than it was during the halcyon days of the boom.  We can make more goods and services with fewer inputs than we could in 2006.  And yet, British and World GDP remain lower today than they were 6 years ago.

 

Our problem is one of demand.  We can make more goods and services than we can afford to buy.  The solution, which Keynes figured out 80 years ago, and undergraduate economics students have been taught for generations, is the stimulation of demand by government fiscal policy. That policymakers have forgotten what they learned in their first economics class one of the mysteries of the age. Basic income solves the problem of demand. 


Via Sepp Hasslberger
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Sepp Hasslberger's curator insight, November 19, 2013 9:15 AM

"Basic income solves the problem of demand."

 

I would agree with this, and would also say that this is why we will eventually have basic income. 

You can't maximize profits (by cutting the costs of employment) without destroying the most important thing ... your customer base.

If people have no money to spend, how is the ever increasing amount of stuff we produce going to be sold?

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Robert Skidelsky - Four Fallacies of the Second Great Depression

Robert Skidelsky - Four Fallacies of the Second Great Depression | It's the economy, stupid | Scoop.it
Lord Skidelsky, professor of political economy, politician, writer, prize-winning biographer of J.M. Keynes, syndicated columnist, Russia expert, financial crisis expert
Alda Telles's insight:

Economics is luxuriant with fallacies, because it is not a natural science like physics or chemistry. Propositions in economics are rarely absolutely true or false. What is true in some circumstances may be false in others. Above all, the truth of many propositions depends on people’s expectations.

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The Nobel Prize in Economics 2013: of the madness and the wisdom of crowds

The Nobel Prize in Economics 2013: of the madness and the wisdom of crowds | It's the economy, stupid | Scoop.it
Alda Telles's insight:

Knowing that Fama as recently as January 2010) defiantly denied the existence of asset price bubbles because they cannot be identified and predicted, and Shiller (along with others) recognises bubbles and calls the EMH argument that stock prices reflect fundamentals  “one of the most remarkable errors in the history of economic thought”, it will be interesting to see how the the three laureates interact on stage at the award ceremony in December in Stockholm.

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10 Lesser Known Economic Issues

10 Lesser Known Economic Issues | It's the economy, stupid | Scoop.it
While not an economist in the traditional sense, I am very interested in the study of economics.
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The Problem with Poor Countries’ GDP by Bill Gates - Project Syndicate

The Problem with Poor Countries’ GDP by Bill Gates - Project Syndicate | It's the economy, stupid | Scoop.it
Traditionally, one of the guiding factors for development aid has been per capita GDP – the value of goods and services produced by a country in a year divided by the country’s population.
Alda Telles's insight:

GDP may be an inaccurate indicator in the poorest countries, which is a concern not only for policymakers or people like me who read lots of World Bank reports, but also for anyone who wants to use statistics to make the case for helping the world’s poorest people.

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Sex, Economics, and Austerity

Sex, Economics, and Austerity | It's the economy, stupid | Scoop.it
The real meaning of Niall Ferguson’s John Maynard Keynes-was-gay jibe—and why Keynes is so threatening to conservative economists and moralists alike.
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Deficits Are Bad and the Sun Goes Around the Earth

Deficits Are Bad and the Sun Goes Around the Earth | It's the economy, stupid | Scoop.it
Dean Baker: A new study shows we have little reason to fear higher debt levels.
Alda Telles's insight:

It may help explain the difference between debates in astronomy and economics that many people can profit from slow growth and high unemployment. The after-tax profit share of GDP is at its highest level in more than 60 years. For those who own lots of stock and are at the top of the income ladder, times are good. These people may see efforts to lower unemployment as posing a risk. With lower unemployment, workers may be able to get a larger share of productivity growth. This may be good for most of the country and mean increased economic growth, but it would mean less for the 1 percent.

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Thomas Piketty Responds to Criticism of His Data

Thomas Piketty Responds to Criticism of His Data | It's the economy, stupid | Scoop.it
The short version: He doesn’t give an inch.
Alda Telles's insight:

Six days after The Financial Times launched an attack on the data behind Thomas Piketty’s much-debated tome on inequality, “Capital in the Twenty-First Century,” Mr. Piketty has offered his first detailed response to the newspaper’s criticism.

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The Piketty phenomenon: big picture economics

The Piketty phenomenon: big picture economics | It's the economy, stupid | Scoop.it
Editorial: When the maelstrom surrounding Capital in the Twenty-First Century dies down, its legacy may be to give economics back its sense of proportion
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El fenómeno Piketty, la nueva estrella del rock (económico)

El fenómeno Piketty, la nueva estrella del rock (económico) | It's the economy, stupid | Scoop.it
Se llama Thomas Piketty. Es economista. Es francés. Y lo que cuenta en las 600 páginas de "El capital en el siglo XXI" está transformando la manera en que los especialistas abordan el creciente fenómeno de la desigualdad en la distribución de la renta y la riqueza. En EEUU se ha convertido en un fenómeno hasta el punto que su libro, un bestseller insólito, se ha agotado.
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Joseph E. Stiglitz argues that bad policies in rich countries, not economic inevitability, have caused most people's standard of living to decline.

Joseph E. Stiglitz argues that bad policies in rich countries, not economic inevitability, have caused most people's standard of living to decline. | It's the economy, stupid | Scoop.it
The difficulties that many rich countries now face are not the result of the inexorable laws of economics, to which people simply must adjust, as they would to a natural disaster. On the contrary, the decline in most households' income over the past three decades, particularly in the US, is the result of flawed policies.
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Policy Network - Portugal: Life after the troika

Policy Network - Portugal: Life after the troika | It's the economy, stupid | Scoop.it
The departure of the Troika in May means the government will lose a scapegoat, while the socialists will lose their preferred enemy – in the meantime, the terms of departure represent the main fault lines in Portuguese politics.
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Hey, Liberals: Here are some lessons from the War on Poverty, which turns 50 today

Hey, Liberals: Here are some lessons from the War on Poverty, which turns 50 today | It's the economy, stupid | Scoop.it
Fifty years ago Wednesday, Lyndon B. Johnson announced a War on Poverty in his first State of the
Alda Telles's insight:

Contrary to some conservatives' claims, the War on Poverty has reduced the amount and severity of poverty in the United States. This is often lost in the talking points about the poverty level, because conventional measures do not look at things like the earned-income tax credit—the largest income support program for low-income working families—or food stamps, and because elderly poverty is ignored in these discussions.

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A minimum wage in Germany will be a big deal for Europe—and for economics professors

A minimum wage in Germany will be a big deal for Europe—and for economics professors | It's the economy, stupid | Scoop.it
After an all-night bargaining session, early this morning Germany's two largest political parties announced a provisional deal to form a coalition government.
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Robert Shiller: Is Economics a Science? - Social Europe Journal

Robert Shiller: Is Economics a Science? - Social Europe Journal | It's the economy, stupid | Scoop.it
Nobel Laureate Robert Shiller discusses whether his field of economics is a 'science' or should rather be called something else.
Alda Telles's insight:

The advance of behavioral economics is not fundamentally in conflict with mathematical economics, as some seem to think, though it may well be in conflict with some currently fashionable mathematical economic models. And, while economics presents its own methodological problems, the basic challenges facing researchers are not fundamentally different from those faced by researchers in other fields. As economics develops, it will broaden its repertory of methods and sources of evidence, the science will become stronger, and the charlatans will be exposed.

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Happy Anniversary Lehman Brothers, And What We Haven't Learned about Wall Street Over the Past Five Years

Happy Anniversary Lehman Brothers, And What We Haven't Learned about Wall Street Over the Past Five Years | It's the economy, stupid | Scoop.it
While attention is focused on Syria, the gambling addiction of Wall Street’s biggest banks is more dangerous than ever.
Five years ago this September, Lehman Brothers went bankrupt, and the Street...
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RICHARD KOO: The Entire Crisis In Europe Started With A Big ECB Bailout Of Germany

RICHARD KOO: The Entire Crisis In Europe Started With A Big ECB Bailout Of Germany | It's the economy, stupid | Scoop.it
Brilliant.
Alda Telles's insight:

Great note from Nomura's Richard Koo, looking at the so-called "competitiveness problem" of the Southern European nations.


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What Use Are Economists? by Dani Rodrik - Project Syndicate

What Use Are Economists? by Dani Rodrik - Project Syndicate | It's the economy, stupid | Scoop.it
Despite their protests to the contrary, Carmen Reinhart and Kenneth Rogoff have been accused of providing scholarly cover for a set of policies for which there was, in fact, limited supporting evidence.
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Robert Skidelsky - Niall Ferguson was wrong about Keynes

Robert Skidelsky - Niall Ferguson was wrong about Keynes | It's the economy, stupid | Scoop.it
Lord Skidelsky, professor of political economy, politician, writer, prize-winning biographer of J.M. Keynes, syndicated columnist, Russia expert, financial crisis expert
Alda Telles's insight:

This is the bedrock of Keynesian economics. So Ferguson was quite right to say that Keynes discounted the future — but it was not because of homosexuality, it was because of uncertainty. Keynes would have rejected the claim of today’s austerity champions that short-term pain, in the form of budget cuts, is the price we need to pay for long-term economic growth. The pain is real, he would say, while the benefit is conjecture.

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Alda Telles's curator insight, May 10, 2013 1:30 PM

This is the bedrock of Keynesian economics. So Ferguson was quite right to say that Keynes discounted the future — but it was not because of homosexuality, it was because of uncertainty. Keynes would have rejected the claim of today’s austerity champions that short-term pain, in the form of budget cuts, is the price we need to pay for long-term economic growth. The pain is real, he would say, while the benefit is conjecture.