Sunday, March 3, 2013
Forgotten people
dlib.nyu.edu/undercover/sites/dlib.nyu.edu.undercover/files/documents/uploads/editors/NYWorldTeleSun_1961Oct10_pg1_1.pdf
They work as R-B, sometimes R nomads and sometimes settling as B, they are in danger from Oy criminals and also from being cheated by Iv agents.
Empirics and Psychology: Eight of the World’s Top Young Economists Discuss Where Their Field Is Going | Power Games | Big Think
Empirics and Psychology: Eight of the World’s Top Young Economists Discuss Where Their Field Is Going | Power Games | Big Think
Why are developing countries poor? In terms of impact on mankind globally, this strikes me as probably the biggest and most important current economic question. I think the answer is complex and linked to a combination of factors around history, geography, luck, etc. I am personally working on management practices: people in developing countries are poor because wages are low, and wages are low because firms are very unproductive, and firms seem to be unproductive in large part because of bad management. An Indian worker makes in one week what an average U.S. worker makes in a half a day. One big factor seems to be that factories in India are frankly very badly managed: equipment is not looked after, materials are wasted, theft is common because inventory is not monitored, defects keep occurring, etc. In a recent project with the World Bank, we found in randomized experiments that giving simple management advice to Indian factories increased productivity by 20%, and I suspect that a number like 200% would be possible in the longer run.
A global iv-B economy is highly competitive, if some companies and countries fall behind then they can fall to a floor of near bankruptcy while others rise to a ceiling of extreme wealth. This happens in other competitive fields, for example champion artists and sportsmen might get much more money for only small differences in performance. Products only a few percent higher in price for the same quality might crash, in a V-Bi economy products might normalize with few differences in quality and share the wealth more equally but creating more stagnation.
Why are developing countries poor? In terms of impact on mankind globally, this strikes me as probably the biggest and most important current economic question. I think the answer is complex and linked to a combination of factors around history, geography, luck, etc. I am personally working on management practices: people in developing countries are poor because wages are low, and wages are low because firms are very unproductive, and firms seem to be unproductive in large part because of bad management. An Indian worker makes in one week what an average U.S. worker makes in a half a day. One big factor seems to be that factories in India are frankly very badly managed: equipment is not looked after, materials are wasted, theft is common because inventory is not monitored, defects keep occurring, etc. In a recent project with the World Bank, we found in randomized experiments that giving simple management advice to Indian factories increased productivity by 20%, and I suspect that a number like 200% would be possible in the longer run.
A global iv-B economy is highly competitive, if some companies and countries fall behind then they can fall to a floor of near bankruptcy while others rise to a ceiling of extreme wealth. This happens in other competitive fields, for example champion artists and sportsmen might get much more money for only small differences in performance. Products only a few percent higher in price for the same quality might crash, in a V-Bi economy products might normalize with few differences in quality and share the wealth more equally but creating more stagnation.
Payday lenders use courts to create modern debtors' prison : Stltoday
Payday lenders use courts to create modern debtors' prison : Stltoday
Wakita
Shaw's troubles started with a $425 payday loan, the kind of
high-interest, short-term debt that seldom ends well for the borrower.
But most of them don't end up in jail. So Shaw was surprised in May of last year to hear that the St. Louis County police were looking for her. She and her mother went to the police station.
They arrested her on the spot.
They told her the bail was $1,250. "And I couldn't use a bail bondsman to get out,” Shaw recalled.
The Bill of Rights in the Missouri constitution declares that “no person shall be imprisoned for debt, except for nonpayment of fines and penalties imposed by law.” Still, people do go to jail over private debt. It's a regular occurrence in metro St. Louis, on both sides of the Mississippi River.
Here's how it happens: A creditor gets a civil judgment against the debtor. Then the creditor's lawyer calls the debtor to an “examination” in civil court, where they are asked about bank accounts and other assets the creditor might seize.
If the debtor doesn't show, the creditor asks the court for a “body attachment.” That's an order to arrest the debtor and hold him or her until a court hearing, or until the debtor posts bond.
The practice draws fire from legal aid attorneys and some politicians. They call it modern-day debtors prison, a way to squeeze money out of people with little legal knowledge.
But most of them don't end up in jail. So Shaw was surprised in May of last year to hear that the St. Louis County police were looking for her. She and her mother went to the police station.
They arrested her on the spot.
They told her the bail was $1,250. "And I couldn't use a bail bondsman to get out,” Shaw recalled.
The Bill of Rights in the Missouri constitution declares that “no person shall be imprisoned for debt, except for nonpayment of fines and penalties imposed by law.” Still, people do go to jail over private debt. It's a regular occurrence in metro St. Louis, on both sides of the Mississippi River.
Here's how it happens: A creditor gets a civil judgment against the debtor. Then the creditor's lawyer calls the debtor to an “examination” in civil court, where they are asked about bank accounts and other assets the creditor might seize.
If the debtor doesn't show, the creditor asks the court for a “body attachment.” That's an order to arrest the debtor and hold him or her until a court hearing, or until the debtor posts bond.
The practice draws fire from legal aid attorneys and some politicians. They call it modern-day debtors prison, a way to squeeze money out of people with little legal knowledge.
A deceptive Iv-B economy because of weak I-O policing.
Monetary Cranks Delay Reform in Cranked-Up Welfare States by Michael Heller - Project Syndicate
Monetary Cranks Delay Reform in Cranked-Up Welfare States by Michael Heller - Project Syndicate
“The welfare state evens out people’s chances in life, and it serves as career insurance against sheer bad luck …
As Bi it normalizes people's chances not by reducing bad luck but by reducing chaos.
The welfare state compensates and appeases those who lose out to technological progress and to the expanding division of labour and world trade.
By normalizing outcomes it narrows the gap between winners and losers both of which can hit a ceiling and floor and collapse as in the GFC.
It helps people with low productivity and prevents them from having to resort to fraud, theft, and other criminality.
Low productivity is some people is averaged out by their joining a union, fraud and theft occurs more with secretive and deceptive R-B people.
It insures people against economic risks in a manner and to an extent that private insurance could not possibly provide, and thus benefits everyone …
Government insurance in more Ro while unemployment insurance funded by wage contributions is more Bi.
Yet just as there can be too little state insurance, resulting in an inadequate social safety net, there can be an over-provision of insurance protection, resulting in moral hazard … Germany today suffers a moral-hazard problem with respect to unemployment benefits and wage supplements”.
Moral hazard does not arise from providing insurance but from not policing it adequately for fraud.
“The welfare state evens out people’s chances in life, and it serves as career insurance against sheer bad luck …
As Bi it normalizes people's chances not by reducing bad luck but by reducing chaos.
The welfare state compensates and appeases those who lose out to technological progress and to the expanding division of labour and world trade.
By normalizing outcomes it narrows the gap between winners and losers both of which can hit a ceiling and floor and collapse as in the GFC.
It helps people with low productivity and prevents them from having to resort to fraud, theft, and other criminality.
Low productivity is some people is averaged out by their joining a union, fraud and theft occurs more with secretive and deceptive R-B people.
It insures people against economic risks in a manner and to an extent that private insurance could not possibly provide, and thus benefits everyone …
Government insurance in more Ro while unemployment insurance funded by wage contributions is more Bi.
Yet just as there can be too little state insurance, resulting in an inadequate social safety net, there can be an over-provision of insurance protection, resulting in moral hazard … Germany today suffers a moral-hazard problem with respect to unemployment benefits and wage supplements”.
Moral hazard does not arise from providing insurance but from not policing it adequately for fraud.
Milken Institute | Newsroom | Currency of Ideas - Egypt's Costly Free Lunch
Milken Institute | Newsroom | Currency of Ideas - Egypt's Costly Free Lunch
Back
up for a moment. You may not have noticed, but the Egyptian economy
responded very well to market-opening reforms begun in the early 1990s
that attracted massive amounts of foreign capital. Real income per
capita has nearly tripled,
to a respectable $6,300. The catch: the growth dislocated the lives of
millions of Egyptians, eliminating the security of many government
workers, sucking the rural poor into crowded urban slums, and creating a
wealthy elite of insiders who made no effort to hide their (sometimes
ill-gotten) gains.
Often these reforms can turn a Roy economy into Biv too quickly, where g public property is still more efficient than Gb private property. it can also be an Iv-B economy that creates a boom then a bust with extreme winners and losers.
Often these reforms can turn a Roy economy into Biv too quickly, where g public property is still more efficient than Gb private property. it can also be an Iv-B economy that creates a boom then a bust with extreme winners and losers.
No
democratic government will succeed in the long run unless it reduces
official corruption, controls military patronage spending, lays out the
welcome mat for new businesses, and reforms the antiquated education
system.
A weak I-O police can be a symptom of the problem as much as a cause, if the countries has dissimilar groups then some might become enough of a majority to corrupt the justice system to favor them instead of being neutral.
But the immediate problem is managing the runaway food and energy subsidies that are now equivalent to about 10 percent of GDP.
A weak I-O police can be a symptom of the problem as much as a cause, if the countries has dissimilar groups then some might become enough of a majority to corrupt the justice system to favor them instead of being neutral.
But the immediate problem is managing the runaway food and energy subsidies that are now equivalent to about 10 percent of GDP.
Simply
targeting the funds to those truly in need would go a long way toward
fixing the problem. About one-third of the money pays for food, mostly
in the form of lower prices for bread sold to everybody, rich and poor.
The other two-thirds is in subsidies for gasoline, natural gas and
butane for cooking, little of which raises the living standards of the
poor; the rest goes to industry and the middle-class.
But
efficient targeting is more easily proposed than done. Subsidized bread
is widely viewed as a birth right. And it’s hard to imagine the Muslim
Brotherhood-led government risking an outbreak of urban discontent that
gave the military an excuse to reassert power. Gasoline and cooking gas
are almost as problematic -- Jordan just rescinded an increase in gasoline prices after mobs hit the streets (led, ironically, by the Muslim Brotherhood).
R-B people live chaotically on the edge, often subsidies are meant to normalize the costs so Bi-Ro people don't protest. This underlying chaos can lead to Ro protests as in the Arab Spring.
R-B people live chaotically on the edge, often subsidies are meant to normalize the costs so Bi-Ro people don't protest. This underlying chaos can lead to Ro protests as in the Arab Spring.
If
the subsidy system is to crack, the first fissures will probably be in
the delivery of cheap natural gas, most of which is used by business.
Indeed, the interim government floated a plan back in Julyfor
raising the price of natural gas sold to heavy industry. That’s a
credible beginning (if the government follows through), and one that
could pacify the IMF (and foreign investors) for a while. To save really
big bucks, though, gasoline would have to take a hit, and perhaps food
down the road.
Laura D'Andrea Tyson: Income Inequality and Educational Opportunity - NYTimes.com
Laura D'Andrea Tyson: Income Inequality and Educational Opportunity - NYTimes.com
According to the most recent census report,
about one-quarter of children under the age of 6 live in poverty.
Recent research shows that early childhood poverty has negative effects
on brain development. At the age of 3, children in poverty have smaller vocabularies than their peers and a harder time sorting and organizing information and planning ahead.
Children
in poor families are also less likely to have access to early-childhood
education programs. Such programs have a proven record of raising
future educational attainment levels, especially for poor children.
Sadly, many states are slashing such programs, despite the fact that the
funds dedicated to them earn an annual real rate of return of 10 percent or higher.
R-B people are usually chaotic so investment getting them off the floor can lead to dramatic growth and returns on investment. There is no equilibrium for them so they tend to either succeed or fail badly.
R-B people are usually chaotic so investment getting them off the floor can lead to dramatic growth and returns on investment. There is no equilibrium for them so they tend to either succeed or fail badly.
Disparities
in educational achievement among children from different income groups
increase with age. Such gaps are larger in fifth grade than they are in
kindergarten, and they continue to grow as children move through primary
and secondary school.
As
a result of residential segregation, children from low-income families
are more likely to have classmates with low achievement levels and
behavioral problems than children from affluent families. Poor children are also disproportionately situated in
schools that often find it difficult to attract and retain skilled
teachers. And as the Chicago teachers’ strike reminds us, poor children
are often hungry, depending on their schools rather than their homes for
breakfast and lunch.
Some communities are more Bi-Ro and act as teams to help their weaker members, this can overcome some of these problems bringing them up to a normal level around the center of their normal curve.
Some communities are more Bi-Ro and act as teams to help their weaker members, this can overcome some of these problems bringing them up to a normal level around the center of their normal curve.
The
United States is caught in a vicious cycle largely of its own making.
Rising income inequality is breeding more inequality in educational
opportunity, which results in greater inequality in educational
attainment. That, in turn, undermines the intergenerational mobility
upon which Americans have always prided themselves and perpetuates
income inequality from generation to generation.
An Iv-B economy creates extreme winners and losers, the winners when they crash might bump repeatedly against the ceiling like the 1% did after the GFC, the poor bump against the floor repeatedly rising a little then crashing into extreme poverty and crime. This underclass becomes more nomadic as R.
An Iv-B economy creates extreme winners and losers, the winners when they crash might bump repeatedly against the ceiling like the 1% did after the GFC, the poor bump against the floor repeatedly rising a little then crashing into extreme poverty and crime. This underclass becomes more nomadic as R.
This
dynamic all but guarantees a permanent underclass. Indeed, the process
is already under way: An American child’s future income is already more
dependent on his or her parents’ income than a child born in most other
developed countries.
Greek Prime Minister Warns of Societal Collapse Like Weimar Germany; Citizens Storm Defense Ministry; Merkel Takes Gamble on Visiting Greece
http://globaleconomicanalysis.blogspot.com.au/2012/10/greek-citizens-storm-defense-ministry.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+MishsGlobalEconomicTrendAnalysis+%28Mish%27s+Global+Economic+Trend+Analysis%29&utm_content=Google+Feedfetcher
Antonis Samaras says Greece's democracy is in danger, comparing situation to Germany's pre-war Weimar Republic
Resources are so scarce that the country is becoming Roy, so government owned resources will become more efficient.
Greece is teetering on the edge of collapse with its society at risk of disintegrating unless the country's near-empty public coffers are shored up with urgent financial aid, the country's prime minister has warned.
The result of Iv-B economics is some countries hit the floor when V-Bi savings and insurance are exhausted.
Almost three years after the eruption of Europe's debt drama in Athens, the economic crisis engulfing the nation has become so severe that democracy itself is now imperiled, Antonis Samaras said.
Often in Roy they become dictatorships because a vote can become a negative sum game, the people vote for whatever will reduce their losses rather than for long term benefits. When people are poor crime rises and so the O police become more important than I civil police, people will commit more crimes to prevent starvation and disaster even though they forgo some benefits such as a clean credit history or criminal record.
Resorting to highly unusual language for a man who weighs his words carefully, the 61-year-old politician evoked the rise of the neo-Nazi Golden Dawn party to highlight the threat that Greece faces, explaining that society "is threatened by growing unemployment, as happened to Germany at the end of the Weimar Republic".
Mounting anti-austerity rage before a new round of sweeping EU-IMF-mandated austerity measures appears to have caught the government off-guard, with officials voicing fears over the ability of Samaras's fragile coalition to survive
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