Posts tagged with: economist

In Leonard Reed’s famous essay, “I, Pencil,” he marvels over the cooperation and collaboration involved in the assembly of a simple pencil — a complex coordination that is quite miraculously uncoordinated. 

In a short video from economist Alex Tabarrok, the same lesson is applied to Valentine’s Day roses:

“Behind every Valentine’s Day rose, there’s an extensive network of people from all over the world,” says Tabarrok, “from the farmer to the shipper to the auctioneer to the retailer—all cooperating to produce and transport roses from field to hand in a matter of days.”

But though these countless creative partners are surely acting out of some degree of self-interest, and though (in this case) they are working to enable and empower what we presume to be “loving” exchanges, there is something deeper going on throughout the activity. (more…)

300px-GeocentrismGeocentrism was the belief that the sun, the planets, and all the stars revolve around the Earth. The alternative view—heliocentricism—had been around since the 3 BC but was not taken seriously until the 16th century AD. What seems obvious to us now was a matter of heated debated for almost two thousand years.

Economist Don Boudreaux says the minimum-wage debate in economics is rather like the reverse of this debate that took place centuries ago among astronomers.

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Trafficked workers striking against Signal International

Trafficked workers striking against Signal International

While sex trafficking gets a lot of media attention, labor trafficking is the larger problem globally. Recently, the largest court case ever involving labor trafficking was settled in Mississippi against Signal International. (You can read more about the case here.)

Labor trafficking is not a secret. However, we are just beginning to grasp the scope of the problem and the deep wounds it inflicts on its victims. In The Economist this week, the magazine goes so far as to say “its everywhere:”

Estimates of the number of workers trapped in modern slavery are, inevitably, sketchy. The International Labour Organisation (ILO), an arm of the UN, puts the global total at around 21m, with 5m in the sex trade and 9m having migrated for work, either within their own countries or across borders. Around half are thought to be in India, many working in brick kilns, quarries or the clothing trade. Bonded labour is also common in parts of China, Pakistan, Russia and Uzbekistan—and rife in Thailand’s seafood industry … A recent investigation by Verité, an NGO, found that a quarter of all workers in Malaysia’s electronics industry were in forced labour.

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Blog author: dpahman
Thursday, September 4, 2014
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French economist Thomas Piketty

This summer’s issue of The City, which includes an article by myself on Orthodoxy and ordered liberty, opens with a symposium of five articles on “The Question of Inequality.” These include two articles on Pope Francis, two on French economist Thomas Piketty’s recent book Capital in the Twenty-First Century, and one on the Bible.

Having recently written a two part article on the subject for the Library of Law & Liberty (here and here), I took copious notes as the topic is an ongoing subject of research.

In order to recommend the symposium to our readers here, who no doubt have interest in the topic, I compiled the following highlights:

Josiah Neeley, “What Does Bono Know That the Pope Doesn’t?”

Argentina is now the world’s only “formerly developed” country.

[E]ven in the United States a great deal of inequality is the result not of the heroic innovator but of government favoritism.

Donald Devine, “Does Pope Francis Hate Capitalism?”

[B]y 1910 … Argentina’s per capita Gross Domestic Product [was] number ten in the world.

Peron’s Argentina [in the mid-twentieth century] was perhaps the first comprehensive welfare state…. [And] the result has been a much poorer country.

The actual experience of markets [contra Pope Francis] is hardly autonomy. The U.S., one of the freer countries, has 300,000 regulations.

[B]etween 2005 and 2010 the total number of poor in the world actually fell by half a billion people as trickle down prosperity lifted millions from absolute destitution.

Today’s reality is the over-regulatory welfare state, not wild markets. (more…)

Blog author: jcarter
Thursday, September 4, 2014
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Imagine if a scientist was able to create technology that turns corn into cars. As economist Bryan Caplan explains, we already have such an innovation: foreign trade.

Caplan argues that foreign trade is a form of technology that lowers our cost of living and increases our standard of living. In fact, claims Caplan, from a broader perspective trade is even better than most technology since it not only makes us better off, it makes foreigners better off too.

lego-people“Can you explain that important economic concept using Legos?”

Apparently, someone must have said that to Richard Reeves, an economist at the Brookings Institution economist, because he’s made a brief video using Legos to visualize social mobility.

There are two reasons I really appreciate this video. First, I love to see important economic issues explained in an accessible and entertaining manner. Second, as I’ve repeatedly said to anyone who will listen, social mobility — specifically getting people out of poverty — is infinitely more important than focusing income inequality, a topic that gets far too much attention nowadays.

The one drawback to the video is that it’s far too pessimistic. Yes, social mobility is still a huge problem. But the video makes clear, that social mobility is possible for almost all people. That has not been true for most of human history and it is not true in most parts of the world today.

Also, I am far less concerned with whether a person can go from the bottom quintile to the top as I am with going from the bottom quintile to the middle. Like many Americans, I was born in the bottom quintile and worked my way to the middle quintiles. The fact that I’m unlikely to ever join the top quintile is of absolutely no importance to may life. None at all. What we should care about is whether people can get out of poverty and flourish economically, not whether they can join Beyonce and Jay-Z in the billionaire’s club.

But those quibbles aside, I’m grateful this video is helping to spread the message about the importance of social mobility.

John Horvat II, author of Return to Order, recently interviewed Acton’s Director of Research, Samuel Gregg, about a variety of topics, including: Gregg’s interest in economics, Becoming Europe, Thomas Piketty and his controversial Capital in the Twenty-First Century, St. Thomas Aquinas, and the greatest threat to the American economy.

John Horvat: I have had the great pleasure of reading several of your books on economics. I suppose my first question is: how did you end up in the middle of the “dismal science?”

Dr. Gregg: I did some economic history as an undergraduate and for my graduate study, but it was really through studying natural law philosophy when doing my doctorate that I came to enter into some of the deeper background questions about the strengths and weaknesses of economics and economies. I was also very interested in the relationship between economics and culture – the latter being understood as the choices, beliefs, actions, values, and institutions that shape a society, including its economic arrangements. (more…)