Sunday, December 31, 2017
Happy New Year -- Taking a holiday break
Sunday, December 24, 2017
Is Washington tacitly operating under a new monetary theory?
In 2002 when soon-to-be-dismissed U.S. Treasury Secretary Paul O'Neill warned then Vice President Dick Cheney that the Bush administration's tax cuts would drive up deficits and threaten the health of the economy, Cheney famously answered: "You know, Paul, Reagan proved deficits don’t matter."
In the wake of the recently approved federal tax cut,voices concerned about the damage that deficits will do are rising again.
What's curious is that since Cheney's rebuke of O'Neill, growing federal government deficits seem not to have mattered. In fact, the largest deficits ever boosted the economy after the 2008-09 recession, exceeding $1 trillion annually for four years.
Sunday, December 17, 2017
Do we have the wrong model of human nature?
Are we wrong to believe that competitiveness must and always will be the central animating principle of human action? Media studies scholar Michael Karlberg thinks so. In fact, he believes that another animating principle, mutualism, is both central to human interaction and necessary to aid human society in meeting the myriad challenges it faces regarding climate change, inequality, governance, education and many other issues.
I saw Karlberg speak recently at a private gathering in Washington, D.C. He is measured in his tone, clear in his delivery and compelling in his logic. He poses the following question: If nearly all of our institutions are premised on competition (commerce, politics, education, recreation and many others), is it any wonder that our competitive instincts are honed and expanded while our cooperative ones atrophy?
Karlberg is not naive enough to believe that all this can be changed overnight. But he does make a convincing case that competitiveness is as much a problem emanating from social institutions that inculcate and incentivize competition as it is a problem of human nature.
Sunday, December 10, 2017
Taking a short break - no post this week
Sunday, December 03, 2017
Human well-being, economic growth and so-called decoupling
Some people claim that certain humans—called breatharians—can live on air alone. Others claim we can have economic growth without increasing our resource use, so-called decoupling. Neither claim withstands scrutiny though here I am only going to deal with the second one.
Hidden beneath the claim of decoupling is the assertion that human well-being and economic growth are synonymous. But, human well-being is far from a one-dimensional economic variable linked unalterably to more income and consumption. So, saying that economic growth must at some point come to an end to maintain the habitability of the planet is not the same as saying that human well-being must also stop improving.
On the contrary, a stable society in harmony with the workings of the natural world in a way that maintains the habitability of the biosphere for humans would seem to be an essential characteristic of a society which offers a high degree of well-being to humans. Destroying that habitability through endless economic growth then is contrary to human well-being in the long run.
All of this should seem obvious. But so often the advocates of growth or "sustainable" growth tell us that ending growth would destroy the chance for countless people to attain well-being in our modern industrial world. While that has some truth within the narrow context that measures well-being as a function of economic output, it misses the point above. An uninhabitable world is really, really bad for human well-being.