November 4, 2011
Open Letter from Harvard Econ 10 Students
Wednesday November 2, 2011
Dear Professor Mankiw—
Today, we are walking out of your class, Economics 10, in order to express our discontent with the bias inherent in this introductory economics course. We are deeply concerned about the way that this bias affects students, the University, and our greater society.
As Harvard undergraduates, we enrolled in Economics 10 hoping to gain a broad and introductory foundation of economic theory that would assist us in our various intellectual pursuits and diverse disciplines, which range from Economics, to Government, to Environmental Sciences and Public Policy, and beyond. Instead, we found a course that espouses a specific—and limited—view of economics that we believe perpetuates problematic and inefficient systems of economic inequality in our society today.
A legitimate academic study of economics must include a critical discussion of both the benefits and flaws of different economic simplifying models. As your class does not include primary sources and rarely features articles from academic journals, we have very little access to alternative approaches to economics. There is no justification for presenting Adam Smith’s economic theories as more fundamental or basic than, for example, Keynesian theory.
Care in presenting an unbiased perspective on economics is particularly important for an introductory course of 700 students that nominally provides a sound foundation for further study in economics. Many Harvard students do not have the ability to opt out of Economics 10. This class is required for Economics and Environmental Science and Public Policy concentrators, while Social Studies concentrators must take an introductory economics course—and the only other eligible class, Professor Steven Margolin’s class Critical Perspectives on Economics, is only offered every other year (and not this year). Many other students simply desire an analytic understanding of economics as part of a quality liberal arts education. Furthermore, Economics 10 makes it difficult for subsequent economics courses to teach effectively as it offers only one heavily skewed perspective rather than a solid grounding on which other courses can expand. Students should not be expected to avoid this class—or the whole discipline of economics—as a method of expressing discontent.
Harvard graduates play major roles in the financial institutions and in shaping public policy around the world. If Harvard fails to equip its students with a broad and critical understanding of economics, their actions are likely to harm the global financial system. The last five years of economic turmoil have been proof enough of this.
We are walking out today to join a Boston-wide march protesting the corporatization of higher education as part of the global Occupy movement. Since the biased nature of Economics 10 contributes to and symbolizes the increasing economic inequality in America, we are walking out of your class today both to protest your inadequate discussion of basic economic theory and to lend our support to a movement that is changing American discourse on economic injustice. Professor Mankiw, we ask that you take our concerns and our walk-out seriously.
Sincerely,
Concerned students of Economics 10
Sources:
Thanks to William Black's Blog for the lead on this.
October 15, 2011
Murdoch Pattern of Misconduct
Dear FCC members:
Forget the political implications for a moment and envision what you'd LIKE to do to the Murdoch media syndicate.
The Occupy movement is your signal that the time has come to act on visions like that prompted above.
Paul Krugman is right, again: Pattern of Misconduct
Now it's time for the FCC to act.
To Contact the Commissioners via E-mail
October 8, 2011
End Corporate Personhood
The following 4-min video is a remake of the VlogBrothers 2007 YouTube call-to-action ala the Nerdfighters "Project for Awesome".
September 21, 2011
September 20, 2011
Banking Establishment Ripoff Exposed in MSM
Since the financial crisis, Bank profits are UP 136%... But Bank lending is down 9%.
Perhaps a more interesting story is that this is featured in a mainstream media article; Time Magazine, September 26, 2011, "After Three Years and Trillions of Dollars, Our Banks Still Don't Work."
I could take issue with the phrase "our banks;" yes, we should "own" them having bailed them out, but frankly, instead of we owning the banks, the banks turned the US Treasury and Federal Reserve into lending institutions for the benefit of the banks and the people reaping profits from those corporations.
But, don't let me tarnish the good news with side issues. Time Magazine deserves credit where it is due.
September 10, 2011
"We Didn't See it Coming"
The "We didn't see it coming" thing drives me crazy. My experience in seeing it [the bubble burst] coming is reflected in three clear memories.
First, The Great Unraveling by... some economist from NJ, pretty much had me change my ARM to a fixed rate mortgage a couple years before the bust.
Second, people with good jobs in my solid middle class neighborhood were saying, "If I had to buy my [modest row] house today, I couldn't afford it." I remember exactly where I was, walking my dog.
Third, it was going to by systemic: "Systemic Risk: Fannie Mae, Freddie Mac and the Role of OFEHO," February, 2003, which lost Armamndo Falcon his job. http://www.ofheo.gov/Media/Archive/docs/reports/sysrisk.pdf
September 4, 2011
Top 10 Issues of the October 6 Movement
Actually, there are fifteen "core issues," which were identified by the October2011 Movement steering committee:
1. Corporatism– firmly establish that money is not speech, corporations are not people, only people have Constitutional rights, end corporate influence over the political process, protect people and the environment from damage by corporations.
2. Wars and Militarism – end wars and occupations, end private for-profit military contractors, reduce the national security state and end the weapons export industry. War crimes, crimes against humanity and crimes against peace must be addressed and those responsible held accountable under international law.
3. Human Rights – end exploitation of people in the US and abroad, end discrimination in all forms, equal civil rights and due process for all people.
4. Worker Rights and jobs – all working-age people have the right to safe, just, non-discriminatory and dignified working conditions, a sustainable living wage, paid leave and economic protection.
5. Government – all processes of the three branches of government should be accountable to international law, transparent and follow the rule of law, people have the right to participate in decisions which affect them.
6. Elections – all citizens 18 and older have the right to vote without barriers, all candidates have the right to be heard and to run and all votes should be counted.
7. Criminal justice and prisons –end private for-profit prisons, adopt evidence-based drug policy, prisoners have the right to humane and just conditions with a focus on rehabilitation and reintegration into society.
8. Healthcare – create a national, universal and publicly financed comprehensive health system.
9. Education – all people have the right to a high quality, publicly-funded and broad education from pre-school through vocational training or university.
10. Housing – all people have the right to affordable and safe housing.
11. Environment – adopt policies which effectively create a carbon-free energy economy.
12. Finance and the economy – end policies which foster a wealth divide and move to a localized and democratic financial system, reform taxes so that they are progressive and provide goods, monetary gain and services for the people.
13. Media – airwaves and the internet are public goods, require that media be honest, accurate and accountable to the people.
14. Food and water – create systems that protect the land and water, create local and sustainable food networks and practices.
15. Transportation – provide affordable, clean and convenient public transportation and safe spaces for pedestrian and non-automobile travel.
Source: Octorber2011.org Issues
For Your Convenience:
- Contact the Broadcast Media
- Contact the Newspapers
- Contact the US Senate
- Contact the House of Representatives
August 30, 2011
The Game in a Nutshell
For Your Convenience:
- Contact the Broadcast Media
- Contact the Newspapers
- Contact the US Senate
- Contact the House of Representatives
August 22, 2011
August 19, 2011
Voices Faulting G.O.P. Economic Policies Growing Louder
Voices Faulting G.O.P. Economic Policies Growing Louder
Fact-based world is intruding on the fantasy-based polices being pushed by Republicans. The S&P US Downgrade report is one of the voices.
For Your Convenience:Sources:
August 18, 2011
Co-opted Democrats
In a column in The Washington Post on Friday, Bill Gross, who runs the giant bond-trading firm Pimco, lashed out at Republicans and “co-opted Democrats” for setting aside widely accepted economic theory.
“An anti-Keynesian, budget-balancing immediacy imparts a constrictive noose around whatever demand remains alive and kicking,” he wrote. “Washington hassles over debt ceilings instead of job creation in the mistaken belief that a balanced budget will produce a balanced economy. It will not.”
For Your Convenience:Sources:
August 17, 2011
Standard and Poor's on Bush Tax Cuts
Our revised upside scenario--which, other things being equal, we view as consistent with the outlook on the 'AA+' long-term rating being revised to stable--retains these same macroeconomic assumptions. In addition, it incorporates $950 billion of new revenues on the assumption that the 2001 and 2003 tax cuts for high earners lapse from 2013 onwards, as the Administration is advocating.
Sources:
United States of America Long-Term Rating Lowered To 'AA+' On Political Risks And Rising Debt Burden; Outlook Negative [pdf] Standard and Poor's, Primary Credit Analyst:
Nikola G Swann, CFA, FRM, Toronto, August 5, 2011.
August 16, 2011
Talking Point: US Government Debt and Jobs
The talking point is simple. Average Americans are not spending money, and the economy is stalled, because they don't have much money. It's no use giving tax breaks and low interest rates to product manufacturers, because the people who would normally buy their products don't have money. People need jobs.
It is debatable whether the American public is responsible for 70% of domestic spending on goods and services, but by sheer number their spending potential is huge. They might make up 70% of domestic spending if they had money to spend, but they don't have good jobs.
Why not? Government policies over the past several decades, supply-side (trickle-down) tax policies and corporate globalization policies, have created a record wealth gap. A study by three Citigroup analysts indicates that the top 1% of Americans earn as much annual income as the bottom 60% and the top 1% possess as much wealth as the bottom 90% of Americans. The analysts concluded “economic growth [in the US] is powered by and largely consumed by the wealthy few.” [1] This is borne out by recent statistics showing that growth in domestic product sales have declined at discount stores and have grown in high-end stores and luxury products.
The Solution:
The government needs to set policies to put money in the pockets of average Americans, and I'm not talking about a $600 check; it needs to be tens of thousands per year, which simply put means temporarily creating jobs. The money for these jobs needs to come from the places that it is being hoarded: The richest 1% of Americans and transnational corporations who have benefited greatly from government policies over the past few decades.
After people have had government-sponsored jobs for several years, they will have the money to buy more products and services they need. This will create a market for private sector products and, in turn, support more jobs in the private sector. Eventually, the government can get out of business of job creation.
And yes, these jobs will require more government revenue in the near-term, but will also generate new revenues. In the long run, we'll be more likely able to pay down the US Government debt.
Agree? Let policy makers know:
Update: Listen to a professional, Bill Gross, founder and co-chief investment officer of the investment management firm Pimco. "America’s debt is not its biggest problem", Washington Post, August 10, 2011.
Sources:
1. Can the Middle Class be Saved? Atlantic Monthly, September, 2011.
August 13, 2011
Talking Point: Debt and Medicare
First, Medicare is not part of the general budget deficit & associated debt problem. That's because Medicare, like Social Security, has a dedicated fund separate from the general fund. It should be managed as a separate dedicated fund, not lumped into the general budget debate.
Second, if we spent per capita what every other industrial nation spends on health care, we would not have a long-term Medicare solvency problem. If we simply focus on cutting Medicare and Medicaid, we’re just shifting the rising costs to those least able to pay them: the elderly, the disabled and the poor, or people on their death bed. Is that the American way?
Solutions: First, we need to cut health care costs (not services). Second, in the next few decades, we all need to pay a little more out of our FICA payroll deductions to cover the fact that the baby boomers are reaching old age (maybe from 1.45% to 1.75% or something). After the wave of baby boomers passes, the deductions could decrease. Finally, if Congress insists on mixing the dedicated fund of Medicare with the general fund, then we should insist on cutting corporate welfare and increasing revenue from corporate profits to help meet Medicare's needs.
Wanna take Action? Start by calling Senator Kerry's office and tell him to get better control of his message (He is one of the super committee members). Here's a recent statement of his:
... the real problem for our country is not the short-term debt. We can deal with that. It’s the long-term debt. It’s the structural debt of Social Security, Medicare and Medicaid, measured against the demographics of our nation.
Unfortunately, his statements are playing into the hysteria that is enveloping the mentality that these safety nets should be cut. We need to re-frame the debate.
For Your Convenience:Sources:
DemocracyNow! August, 12, 2011.
August 12, 2011
Hourglass with Sand in One Side
Why is it that I have the strong image of an hourglass with all the sand trapped in one end when I think about our current economic situation? If this analogy is useful, what is the analogue of turning the hourglass over in this case?
We'll see if he responds.
Sources:
August 11, 2011
Wall Street Crash
August 10, 2011
Once Upon a Time
-- The Harvard Economic Society's Weekly Letter,
November, 15, 1930
Note: In 1931, the economic squeeze of the depression forced the Harvard Economic Society to suspend publication of the Weekly Letter.
Source: "The working person's history of the great depression," Show me the Money, Issue 10, Autumn 2001.
August 7, 2011
Final Push in Wisconsin
This coming Tuesday is the recall election that will send a message across the nation and around the world. Now is the time for the final push in the bell weather state of Wisconsin.
I can chip in $4 to fuel the recall campaign in the final days.
Second Helicopter in Two Weeks
I guess that's par for our debilitated, commercial mainstream media; a US helicopter gets shot down and it isn't news if no Americans die.
I'm reminded of Orwell and the perpetual war.
July 31, 2011
GDAE Podcast Episode 49
- Economist James Galbraith: Reality check on the Washington "Debt Crisis".
- Journalist, media critic and political analyst John Nichols: The Unraveling Murdoch News Corp media empire. Were crimes also committed in the United States?
- Ralph Nader: Common Ground with the Tea Party? This might be true for the principled libertarians within the Tea Party.
Play Episode 49 (32 min):
July 1, 2011
Wisconsin Recall Elections
Wisconsin recall elections:
Public Policy Polling. June 24-26, likely voters:
Senate district 32, currently held by Republican Dan Kapanke
Jennifer Shilling (D): 56
Dan Kapanke (R): 42
Senate district 18, currently held by Republican Randy Hopper
Jessica King (D): 50
Randy Hopper (R): 47
Senate district 10, currently held by Republican Shelia Harsdorf
Sheila Harsdorf (R): 50
Shelly Moore (D): 45
Six Republicans face recall elections, and Democrats need to defeat three of them to take control of the state Senate. We have only polled three of those six races so far, and already we found Democrats ahead in two campaigns and close in another.
This is a very winnable campaign. If we win, then we prove that a people-powered uprising, when allied with a unified Democratic Party that is willing to fight back, can defeat those who would slash the social safety net to pay off billionaires and big corporations.
That is a win we need badly, both in Wisconsin and nationwide. Please, make it happen by contributing $1 to each of the Democratic candidates in the Wisconsin recall elections.
April 21, 2011
As the Empire Crumbles
The peak of U.S. power was after World War II, when it had literally half the world's wealth. But that naturally declined, as other industrial economies recovered from the devastation of the war and decolonization took its agonizing course. By the early 1970s, the U.S. share of global wealth had declined to about 25%
There was also a sharp change in the U.S. economy in the 1970s, towards financialization and export of production. A variety of factors converged to create a vicious cycle of radical concentration of wealth, primarily in the top fraction of 1% of the population -- mostly CEOs, hedge-fund managers, and the like. That leads to the concentration of political power, hence state policies to increase economic concentration: fiscal policies, rules of corporate governance, deregulation, and much more. Meanwhile the costs of electoral campaigns skyrocketed, driving the parties into the pockets of concentrated capital
Sources:
Is the World Too Big to Fail? The Contours of Global Order, Truthout, Noam Chomsky, April 21, 2011.
April 16, 2011
Maryland Tax Delinquents Named
The Comptroller of Maryland is serious about retrieving unresolved tax liabilities. As a part of the collection process, we publish the names of businesses, individuals and corporate officers having large unresolved liabilities - including individuals who have large unresolved personal income tax liabilities. All of the information is public since liens and judgments have been recorded in the judgment dockets of one or more circuit courts of Maryland.
No one is above the tax laws. If you don't want to see your name posted on our site along with other tax delinquents, be sure to keep up with your tax obligations.
April 12, 2011
Wealth Gap and Revolution
The top 1% of Americans own 40% of the wealth.
The word hoarding comes to mind as does a famous quote:
There is, inherent in the capitalist system, a tendency to self-destruct. - Schumpeter, 1942.
We see it happening before our very eyes playing out in the Washington budget debate. The notion, that giving the wealthy class, or owner class, tax cuts to spur growth is a widely held belief in our society. But this simplistic rule only makes sense when money is tight and production capacity at factories is tight and in need of investment to expand, neither of which hold today; we don't need any more production capacity and even if the owner class were to produce more, the commoners don't have the money to buy the stuff.
What we face is a market that is saturated with production capacity, but no money among we the little people, because the money is being hoarded and used for non-productive speculation. Buying commodities, like grains, industrial metals, oil & gas, have become disconnected from the real economy and turned into a gambling playground for the wealthy (not just Americans).
The tendency is for this kind of hoarding to create social instability (dare I say "revolution"?).
People are catching on to this, and the big questions are 1) will we get to the point where enough people become so destitute that they don't have anything, and thus don't have anything to loose if they rise up? 2) will the honest, wise wealthy people change policies before this happens, if only to save themselves?
Stay Tuned.
Sources:
Show Me the Money, Zine, Autumn, 2001, Tony Honeycut.
April 7, 2011
Move to Amend Corporate Power
Source:
Graphic: Wisconsin Move to Amend Cow.
March 31, 2011
GDAE Podcast - Episode 44
- Econ 101: The notion that giving the wealthy class, or owner class, tax cuts to spur jobs and economic growth is a widely held belief in our society... What's the real story today?
- Feature on the Broken Corporate Media: Communications Professor Robert McChesney on Journalism and Democracy in Crisis
Play Episode 44:
Click to Download Episode 44.
March 28, 2011
Turn Over the Hourglass
The problem we face today is lack of demand for products and services because all the money has trickled up an little is left for lower and middle classes. It's like an hour glass with all of the sand stuck in one end (among the top wealth bracket).
For the betterment of society we need to turn the hourglass over so that money flows to the people so the people will provide the demand that will generate supply defining economic activity, and lets do it in ecologically sustainable way.
San Jose, CA Board of Ed Stands with WI Unions
Paste into Twitter: http://t.co/bufQOIM
March 24, 2011
Purpose of the Economy
Science or art or what? Henry Hazlitt, in 1946, suggested that "The whole of economics can be reduced to a single lesson, and that lesson can be reduced to a single sentence:"
The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.
I'm not sure this encapsulates the whole of economics, but it does define what the economy should provide for society. That is, it should operate for the broader benefit of society and not merely for the minority establishment. This is the purpose of the economy and this principle should underlie the study of economics.
March 22, 2011
The Masses Know their Place
There exist, then, in society, operations, activities, and functions of the most diverse order, which are of their very nature special, and which consequently cannot be properly carried out without special gifts. For example: certain pleasures of an artistic and refined character, or again the functions of government and of political judgment in public affairs.
Previously these special activities were exercised by qualified minorities, or at least by those who claimed such qualification. The mass asserted no right to intervene in them; they realised that if they wished to intervene they would necessarily have to acquire those special qualities and cease being mere mass. They recognized their place in a healthy social system.
Sources:
The Revolt of the Masses, Jose Ortega Y Gasset, original 1930, translation from Spanish, 1932. W.W. Norton & Co.
March 21, 2011
US Economy in the Pocket of 1/100th of 1 Percent
The top 400 of America's richest aristocrats hoard as much wealth as the bottom 155,000,000 people. - Michael Moore at a Madison, WI rally, March 5, 2011.
Sources:
Mother Jones, It's the Inequality Stupid, March/April, 2011.
March 17, 2011
March 13, 2011
GDAE Podcast - Episode 43
- Security Industrial Complex: A concern of both conservatives and progressives. Coleen Rowley, former FBI agent discusses the glut of information being collected and the needle-in-a-haystack syndrome.
- Has the Sleeping Giant Awoken? Michael Moore Madison, WI speech, 3/5/11.
March 9, 2011
Remove Thomas from the Bench: Step 4
4th Step: Watch the newspapers for an article about Clarence Thomas or the Supreme Court. When you see one, write a letter to the editor, responding to the letter by title and date. Include a call for the US House of Representatives to investigation of Clarence Thomas. You might also mention the complaint filed with the Missouri Bar where Thomas is licensed (If you haven't, contact the MO Bar, See Below) .
If you want a chance for your letter to be published, most newspapers ask that you include your phone number so they can to verify you wrote the letter.
Some grist: Article III, Section 1 of the US Constitution says,
"The Judges, both of the supreme and inferior Courts, shall hold their Offices during good Behavior"
Which means judges can be removed for bad behavior. Clarence Thomas' bad behavior diminishes the credibility of our highest court, which contaminates the lower courts and erodes the public belief in the fairness of our society. This can lead to vigilante justice, which civil societies naturally strive to avoid. There in lies the rational; Clarence Thomas is a destabilizing force in our society hence it is in the national interest to ask Clarence Thomas to step down or be removed.
For Your Convenience:More:
Some of the issues regarding Clarence Thomas: Throw Clarence Thomas Off the Bench
Step 4.5, Tweet links to the Four Steps to Take Action:
http://tinyurl.com/CT-Step1
http://tinyurl.com/CT-Step2
http://tinyurl.com/CT-Step3
http://tinyurl.com/CT-Step4
See Step 1 - Contact the Missouri Bar Assn in support of the complaint against Thomas
See Step2 - Contact the media asking them follow up on the Missouri Bar complaint
See Step 3 - Contact your representative in the US House to request and investigation
PS
Go Johnny Saunders (Video)
March 8, 2011
Why all the Economics Fallacies?
Economics is haunted by more fallacies than any other study known to man. This is no accident. The inherent difficulties of the subject would be great enough in any case, but they are multiplied a thousandfold by a factor that is insignificant in say, physics, mathematics or medicine -- the special pleading of selfish interests.
Source: Economics in One Lesson by Henry Hazlitt
March 6, 2011
Send Clarence Thomas Packing: Step 3
3rd Step: Contact US House of Representatives, the people's house. Ask for an investigation of Clarence Thomas. It won't happen soon, but it's our obligation to raise the issue (the right wing always does!).
Some of the issues regarding Clarence Thomas: Throw Clarence Thomas Off the Bench
My Message to Congress:
A complaint has been filed with the Missouri Bar Association to investigate Judge Clarence Thomas for allegations regarding his taxes. Given other widely publicized partisan activities by Mr. Thomas, the association is being asked to measure the weight of broader evidence relative to rules of conduct for a lawyer.
I would like Congress to consider it's own investigation. Please add me to an interest e-mail list for people following your future investigations into this matter.
The Missouri Bar contact information follows:
mobar@mobar.org
ph: 537 635 4281
fax: 573 635 2811
For Your Convenience:
Step 3.5, Twitter links to the Three Steps of Action:
http://tinyurl.com/CT-Step1
http://tinyurl.com/CT-Step2
http://tinyurl.com/CT-Step3
See Step 1
See Step2
PS
Go Johnny Saunders
March 5, 2011
Remove Clarence Thomas from Supreme Court: Step 2
2nd Step: Contact Media outlets. Ask them to follow the Missouri Bar Association's investigation of Clarence Thomas.
Some of the issues regarding Clarence Thomas: Throw Clarence Thomas Off the Bench
My Message to Media Outlets:
A complaint has been filed with the Missouri Bar Association to investigate Judge Clarence Thomas for allegations regarding his taxes. Given other widely publicized partisan activities by Mr. Thomas, the association is being asked to measure the weight of broader evidence relative to rules of conduct for a lawyer.
I would like your organization to follow this news story. Please add me to an interest e-mail list for people following your future investigations into this matter.
The Missouri Bar contact information follows:
mobar@mobar.org
ph: 537 635 4281
fax: 573 635 2811
For Your Convenience:Step 2.5, Twitter this link of the story linked above:
http://yhoo.it/gYDni2
See Step 1
PS
Go Johnny Saunders
March 4, 2011
Ousting Clarence Thomas: Step 1
1st Step: Contact Missouri Bar Association.
Support a complaint that has been filed with the MO Bar mentioned in this piece: Throw Clarence Thomas Off the Bench
mobar@mobar.org
ph: 537 635 4281
fax: 573 635 2811
Step 1.5, Twitter this link:
http://yhoo.it/gYDni2
My Message:
I support the complaint filed with your association to investigation of Judge Clarence Thomas for allegations regarding his taxes. Given other widely publicized partisan activities by Mr. Thomas, the association has a solemn responsibility to relax the boundaries of its investigations. The Missouri bar must measure the weight of the broader evidence relative to rules of conduct for a lawyer, rules that should be more closely scrutinized for an exemplary member of society like a supreme court justice.
Thank you for considering this matter. I would like to be added to an interest e-mail list for people interested in following your future decisions and actions on this matter.
Update:
I received the following Reply from the Missouri Bar Assn:
"You need to contact the Commission of Retirement, Removal & Discipline of Judges, here is that telephone number 314-966-1007."
Not sure they can remove this judge!
February 20, 2011
Call Foreign Embassies in Support of Democracy
Share the link with others: http://t.co/tYGONRw
Phone numbers for Embassies in WashDC:
#Libya 202 944 9601
#Bahrain 202 342 1111
#Yemen 202 965 4760