Economy | timiacono.com - Part 4

Too Successful?

Der Spiegel devoted a recent issue of their magazine to the subject of climate change and, in the process, posed the question of whether capitalism is responsible. One look at the chart below from the lead story would suggest an affirmative response.

This is, of course, another case of attempting to find a single root cause where there may, in fact, be many contributing factors, a point that is fleshed out in this comment:

Ironically, both Adam Smith and Karl Marx wrote that capitalism must be controlled and regulated by governments because a system dedicated solely to the amassing of wealth would destroy itself. Unchecked capitalism, as evidenced by global warming, provides an example.

Tagged with:  

On Root Cause

My engineering background is no doubt responsible for the discomfort that is experienced when listening to others talk about root cause (i.e., in the peer reviewed world of hard sciences, you can’t just say you’ve found the root cause) and the latest example of this comes from the White House via this Friday Funny at reason.com.

Other examples in the world of economics and finance involve “the lack of aggregate demand” being the proximate cause of our recent malaise and you can take your pick of many root causes (which are highly dependent upon your world view and who signs your paycheck) for the worst financial crisis since the Great Depression that, almost uniformly, reject the view that, as so eloquently noted by Pavlina Tcherneva in this item at New Economic Perspectives, “We live in a casino economy driven by serial asset bubbles”.

Big Data Missing Big

Via this story at CBS MoneyWatch come the latest readings for the Citigroup surprise index showing how things may not be so hunky-dory in the U.S. economy.

Granted, prior episodes of this index moving sharply higher or lower have failed to provide any meaningful information about where both the U.S. economy and stock market were headed – and, lately, economic difficulties overseas and the plunge in energy prices have complicated things a bit – but sometimes it works…

Why Warren Will Run

From this item at The Hill comes a pretty interesting take on the 2016 Presidential election cycle in general and a potential Elizabeth Warren (D-MA) run in particular…

Why Warren will run against Clinton in 2016

By John LeBoutillier, contributor

State of the 2016 Race
A weekly column for The Hill analyzing the current state of the 2016 presidential race.

The Democratic race: Why Sen. Elizabeth Warren (D-Mass.) will run in 2016 against former Secretary of State Hillary Clinton.

1. Warren is the only national politician today from either party who conveys a sense of outrage over our current — deteriorating — national situation. Her passion is her signature calling card in a time when all the other candidates for president seem to have passion only for themselves and their candidacies.

2. At a recent 12-person in-depth focus group in Denver conducted by Peter Hart and reported in The Washington Post by Dan Balz, the only national politician who was viewed favorably was Warren — even by some of the Republican voters in the focus group.

3. Why? Because she is the only politician who is even talking about the powerlessness of the average person — and the seemingly too powerful corporate and Wall Street entities.

4. This issue cuts across all political lines. It is the issue that catapulted President Teddy Roosevelt into the political hall of fame. His trust busting led to today’s anti-trust regulations and the belief that the federal government’s role is to act as a neutral referee to ensure a fair playing field. But no one today believes the feds are neutral — or fair. Instead, big government is seen as corrupt and as “rigged” as big business.

5. Indeed, there isn’t that much that separates Occupy Wall Street from the Tea Party. One blames big business while the other blames big government for our problems. But more and more, people see the two as in bed with each other in a cynical game to line their own pockets and to preserve their power — all at the expense of the average American.

6. This underlying fear is the hidden issue in the 2016 race — and so far, only Warren is even talking about it.

Tagged with:  
Page 4 of 227« First...23456102030...Last »
© 2010-2011 The Mess That Greenspan Made