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April 12, 2014

Latest Posts from Economist's View

Latest Posts from Economist's View


Have We Repaired Financial Regulations Since Lehman?

Posted: 12 Apr 2014 05:03 AM PDT

"The 2008 financial crisis led to the worst recession in the developed world since the Great Depression. Governments had to respond decisively on a large scale to contain the destructive impact of massive debt deflation. Still, several large financial institutions and thousands of small-to-medium-sized institutions collapsed or had to be rescued, numerous non-financial businesses closed, and millions of households lost their savings, jobs, and homes. Five years later, we are still feeling these effects. Will the financial reforms introduced since the onset of the crisis prevent another catastrophe? This keynote panel titled 'Have We Repaired Financial Regulation Since Lehman' at the Institute for New Economic Thinking's "Human After All" conference in Toronto."

Featured speakers: Anat Admati, Richard Bookstaber, Andy Haldane, and Edward Kane, moderated by Martin Wolf.

Links for 4-12-14

Posted: 12 Apr 2014 12:03 AM PDT

'What Do Average Americans Think About Inequality?'

Posted: 11 Apr 2014 01:04 PM PDT

Sociologist Claude Fischer:

What do average Americans think about inequality?: ... In her 2013 book, The Undeserving Rich: American Beliefs about Inequality, Opportunity, and Redistribution, sociologist Leslie McCall methodically tries to figure out Americans' thinking about inequality. ... Here is what McCall found (updated a bit with new surveys):
  • First, surveys show that Americans are aware that inequality has grown...
  • Second, Americans do not like high income inequality. ...
  • Third, most Americans find widening inequality objectionable because it seems to undercut opportunities for economic advancement. ...
  • Fourth, a growing percentage of Americans want something done about inequality. ...
  • Fifth, what Americans have not increasingly endorsed is having the government redistribute income. ...
  • Sixth, what Americans do want the government to do – and there is increasing support for this – is to increase opportunity, notably by funding more education. ...
...I am struck that, in her data and analysis, Americans generally do not object to economic inequality on grounds that perhaps other westerners might: not that it is morally, religiously offensive – Pope Francis speaks of "moral destitution"; nor on the grounds that everyone has a human right to a decent standard of living;  nor because inequality might have damaging psychological consequences or social consequences; nor even because inequality slows economic growth. Generally, Americans object to inequality, it seems, because they think that it undermines the chances that  individual ambition and hard work will succeed.

'The Great Moderation Is Back'

Posted: 11 Apr 2014 12:33 PM PDT

Is the Great Moderation "still in progress"? Jason Furman says it is:

The Great Moderation Is Back, by Binyamin Appelbaum, NY Times: Perhaps you remember the Great Moderation, the comforting term economists pinned on the period of relatively steady growth that began in the early 1980s.
Perhaps you've even looked back and laughed at the very idea.
Jason Furman has a more complicated view. The head of the president's Council of Economic Advisers argued in an interesting speech on Thursday that the Great Moderation is still in progress. The growth of jobs and economic activity over the last five years has snapped back into the same kind of steady pattern that prevailed before the recession...

Paul Krugman: Health Care Nightmares

Posted: 11 Apr 2014 07:06 AM PDT

Dreaming of politicians on the right who actually care about the unemployed, the uninsured, and the unfortunate. But it's just a dream:

Health Care Nightmares, by Paul Krugman, Commentary, NY Times: When it comes to health reform, Republicans suffer from delusions of disaster. They know, just know, that the Affordable Care Act is doomed to utter failure, so failure is what they see, never mind the facts on the ground.
Thus, on Tuesday, Mitch McConnell, the Senate minority leader, dismissed the push for pay equity as an attempt to "change the subject from the nightmare of Obamacare"; on the same day, the nonpartisan RAND Corporation released a study estimating "a net gain of 9.3 million in the number of American adults with health insurance coverage..." Some nightmare. And the overall gain ... must be considerably larger.
But ... Obamacare is looking like anything but a nightmare... It will be months before we have a full picture, but it's clear that the number of uninsured Americans has already dropped significantly...
Republicans clearly have no idea how to respond... At the state level, however, Republican governors and legislators are still in a position to block the act's expansion of Medicaid, denying health care to millions of vulnerable Americans. And they have seized that opportunity with gusto: Most Republican-controlled states, totaling half the nation, have rejected Medicaid expansion. ...
What's amazing about this wave of rejection is that it appears to be motivated by pure spite. The federal government is prepared to pay for Medicaid expansion, so it would cost the states nothing, and would, in fact, provide an inflow of dollars. ...Jonathan Gruber ... recently summed it up: The Medicaid-rejection states "are willing to sacrifice billions of dollars of injections into their economy in order to punish poor people. It really is just almost awesome in its evilness." Indeed.
And while supposed Obamacare horror stories keep on turning out to be false, it's already quite easy to find examples of people who died because their states refused to expand Medicaid. According to one recent study, the death toll from Medicaid rejection is likely to run between 7,000 and 17,000 Americans each year.
But nobody expects to see a lot of prominent Republicans declaring that rejecting Medicaid expansion is wrong, that caring for Americans in need is more important than scoring political points against the Obama administration. As I said, there's an extraordinary ugliness of spirit abroad in today's America, which health reform has brought out into the open.
And that revelation, not reform itself — which is going pretty well — is the real Obamacare nightmare.

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