Tag Archives: economic growth

The Republican Party Doesn’t Stand for Anything!

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I said I was going to look at the Republican Party Platform.

I have voted for Republican candidates at the state and local level at times in the past. I am sympathetic to pro-business, pro-growth arguments at times. I think that some countries have overreached in terms of taxation and regulation at times. I tried to give the Republican Party the benefit of the doubt. BUT…

Today I confirmed that THERE IS NO REPUBLICAN PARTY PLATFORM. They didn’t meet to discuss one, and didn’t adopt one, in 2020. They are for whatever Trump says, and against whatever Obama and the Democratic Party say. They have no ideas, no policy proposals. They simply don’t stand for anything! This is not propaganda. I am not making this up. This is what their website literally says. Just to make sure I wasn’t missing something, I went to the Republican National Committee website, and clicked on the link to the party platform from there. Here’s what is says:

WHEREAS, The RNC has unanimously voted to forego the Convention Committee on Platform, in appreciation of the fact that it did not want a small contingent of delegates formulating a new platform without the breadth of perspectives within the ever-growing Republican movement…

WHEREAS, The RNC, had the Platform Committee been able to convene in 2020, would have undoubtedly unanimously agreed to reassert the Party’s strong support for President Donald Trump and his Administration

WHEREAS, The RNC enthusiastically supports President Trump and continues to reject the policy positions of the Obama-Biden Administration, as well as those espoused by the Democratic National Committee today; therefore, be it

RESOLVED, That the Republican Party has and will continue to enthusiastically support the President’s America-first agenda;

RESOVLVED [sic], That the 2020 Republican National Convention will adjourn without adopting a new platform until the 2024 Republican National Convention

The Republican Party

Okay, fine, let’s look at the 2016 platform then, and compare it to the policy priorities of my pretend party platform.

  • Anti-corruption? No! They are literally against any limits on the purchasing of influence by the rich and powerful. p. 12.
  • A major childcare, education, and training commitment? No! The health and welfare of children is a paramount responsibility of the government…right up to the point where they are born. From that point, childcare is up to parents alone, preferably two heterosexual parents, and the government will not and should not interfere. Parents should have a choice of schools, which sounds reasonable, but in practice this means defunding the universal public education system. Make sure white people are not discriminated against in college admissions. The government should not provide student loans and higher education should be privatized as much as possible.
  • A major public infrastructure and private capital investment commitment? A major research and development commitment? They talk about technology. They talk about startups. I’ll give them some points for talking about the electric grid, which Democrats don’t mention. They don’t really see an active government role in any of these things, let alone an active funding role. They are maybe open to some funding for R&D in the private health care industry.
  • Universal health care? No! Continue to rely on the failed private market place that provides poor outcomes at the world’s highest prices, for those who are able to obtain care at all.
  • A major risk management program? No, but remember I didn’t give the Democrats a high score on this. I’ll give them some points for talking about food security. I’ll give them some points for talking about cybersecurity. They talk a lot about coal. I wonder if they would still talk about coal so much if they adopted a new platform? They state that the IPCC is a political body, not a scientific one. They reject international agreements on carbon emissions. They want to double down in the war on drugs. They are generally for more military spending, more nuclear weapons, and against arms control agreements. Iran, China, and maybe Russia are the enemies. They are just generally against much involvement in international organizations.
  • New revenue to support investment? No, they’re just generally against taxes.
  • Unemployment, disability, retirement? No, they want to monkey with social security.

I tried to be objective and read the document with fresh eyes. I am generally disgusted by it. This is a party with no ideas for improving the country, and I would not entrust them with leadership of anything. I hope they crash and burn in 2020, and reemerge as a more moderate, pro-business and pro-growth party.

Doughnut Economics

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Doughnut Economics is a new attempt to communicate the goal of an economy that works for humans while not exceeding the natural limits of the planetary system it is embedded in. You want to be in the dough part. If you are in the hole, you are within planetary boundaries but you are poor, starving, unwell, or otherwise not benefiting from the economy that is working for at least some other people. If you are outside the doughnut entirely, you are outside planetary boundaries and the planetary system will not be able to continue supporting the economic system (including you, and everyone else) indefinitely.

The majority of intelligent and educated people on the planet do not understand these concepts. We need a critical mass of people, certainly leaders and decision makers, to understand the problem before we have much hope of solving it. I support new and novel attempts to communicate these ideas. This one doesn’t quite seem fully coherent to me in terms of stocks and flows, and I think if we taught children about stocks and flows from a young age they would grow up better able to understand systems in terms that aren’t so dumbed down.

automatic stabilizers are not boring!

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Slate says automatic stabilizers are boring, and then follows up with a long article on how great they would be. They would have kicked in for both the 2008 recession and the current one, without the months of arguing and lost time.

Things like unemployment insurance are obvious, but I like to think about opportunities for making investments we know we need to make anyway. Like infrastructure investments, capital investments, research and development, childcare and education and training. All of these create jobs now while providing payoffs in the future. When the private sector falters, the public sector kicks into a higher gear and carries the ball for awhile. Then the private sector recovers and debts can be paid back, or a surplus can even be built up. But once again, it’s too late to do it right this time around. It’s time to start planning for the next time around.

June 2020 in Review

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In current events, the coronavirus crisis in the U.S. is spinning out of control as I write this in early July. I made a list of trackers and simulation tools that I have looked at. Asian countries, even developing countries, pretty much have it under control, Europe is getting it under control, and the U.S. and a few other countries are melting down. Some voices are very pessimistic on the U.S. economy’s chances to come back. So of course I’m thinking about that, but I don’t have all that many novel or brilliant ideas on it so I’m choosing to write about other things below. Most frightening and/or depressing story:
  • The UN just seems to be declining into irrelevancy. I have a few ideas: (1) Add Japan, Germany, India, Brazil, and Indonesia to the Security Council, (2) transform part of the UN into something like a corporate risk management board, but focused on the issues that cause the most suffering and existential risk globally, and (3) have the General Assembly focus on writing model legislation that can be debated and adopted by national legislatures around the world.
Most hopeful story:
  • Like many people, I was terrified that the massive street demonstrations that broke out in June would repeat the tragedy of the 1918 Philadelphia war bond parade, which accelerated the spread of the flu pandemic that year. Not only does it appear that was not the case, it is now a source of great hope that Covid-19 just does not spread that easily outdoors. I hope the protests lead to some meaningful progress for our country. Meaningful progress to me would mean an end to the “war on drugs”, which I believe is the immediate root cause of much of the violence at issue in these protests, and working on the “long-term project of providing cradle-to-grave (at least cradle-to-retirement) childcare, education, and job training to people so they have the ability to earn a living, and providing generous unemployment and disability benefits to all citizens if they can’t earn a living through no fault of their own.”
Most interesting story, that was not particularly frightening or hopeful, or perhaps was a mixture of both:
  • Here’s a recipe for planting soil using reclaimed urban construction waste: 20% “excavated deep horizons” (in layman’s terms, I think this is just dirt from construction sites), 70% crushed concrete, and 10% compost

IMD World Competitiveness Ranking

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The United States fell from 3rd to 10th in the IMD World Competitiveness Ranking this year, after being 1st just a couple years ago. Asian tigers (Singapore, Hong Kong) and Scandinavia/Northern Europe (Denmark, Switzerland, Netherlands, Sweden, Norway) make up most of the top 10, when Canada and UAE making the cut, and Taiwan just edged out at #11.

For the second year in a row, the USA failed to fight back having been toppled from its number one spot last year by Singapore, and coming in at 10th (3rd in 2019). Trade wars have damaged both China and the USA’s economies, reversing their positive growth trajectories. China this year dropped to 20th position from 14th last year.

IMD

City-states tend to do well, so my quick reaction is that it might make more sense to compare Singapore and Hong Kong to, say, the New York City or Toronto metro areas rather than the U.S. and Canada as a whole.

house of cards

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James K. Galbraith has a very pessimistic view of the U.S. economy going forward.

America’s economic plight is structural. It is not simply the consequence of Trump’s incompetence or House Speaker Nancy Pelosi’s poor political strategy. It reflects systemic changes over 50 years that have created an economy based on global demand for advanced goods, consumer demand for frills, and ever-growing household and business debts. This economy was in many ways prosperous, and it provided jobs and incomes to many millions. Yet it was a house of cards, and COVID-19 has blown it down.

Project Syndicate

Slow, underlying trends can undermine the resilience of a system, without obvious impacts on the surface. Then, when a crisis hits, whether or not that crisis is related to the underlying trend, the system is not able to bounce back the way it would have without the trend. Imagine rising temperatures and invasive species very slowly putting pressure on a healthy forest or water body. The ecosystem can resist these pressures, maybe for a long time. But then one day, a major storm, fire, or drought comes along. Absent the underlying pressure, the the ecosystem could have rebounded to its original state, but with the underlying pressure, it rebounds to something short of its underlying state. Even if the shock is less than catastrophic and the system rebounds to something just a little short of the original state, successive crises over time can lead to a long, slow slide that might only be obvious in retrospective. Or, if the shift is very slow, “shifting baseline syndrome” sets in, where the people involved lose their memory of what the system used to be like, and don’t fully realize what has been lost.

is this the great depression?

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The words “great” and “depression” are being used in close proximity these days. Joseph Stiglitz says a depression is when people only spend money on food, and by that definition we are kind of there. Noah Smith at Bloomberg says the U.S. unemployment rate currently stands around 11% and could be headed for 20% or 30%. The Great Depression topped out at 25% so by this definition too, we are headed there. The article points out that it is not just the depth of the recession that is important but its duration. At this point, there has not been a spike in interest rates or widespread bank failures, and the stock market has stabilized (i.e., it’s fluctuating around a lower level than its recent peak, but not wildly fluctuating). As people are legally allowed to resume normal activities, we will see if they do or if they choose not to out of fear. That is when banks and investors could get even more nervous about lending to businesses without good prospects of success, interest rates could spike, and a long-lasting wave of bankruptcies, defaults, and job losses could ensue.

November 2019 in Review

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Most frightening and/or depressing story:
  • The Darling, a major river system in Australia, has essentially dried up.
Most hopeful story: Most interesting story, that was not particularly frightening or hopeful, or perhaps was a mixture of both:

more on fully automated luxury communism

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Here is the Amazon review of the actual book:

In the twenty-first century, new technologies should liberate us from work. Automation, rather than undermining an economy built on full employment, is instead the path to a world of liberty, luxury and happiness—for everyone. Technological advance will reduce the value of commodities—food, healthcare and housing—towards zero.

Improvements in renewable energies will make fossil fuels a thing of the past. Asteroids will be mined for essential minerals. Genetic editing and synthetic biology will prolong life, virtually eliminate disease and provide meat without animals. New horizons beckon.

In Fully Automated Luxury Communism, Aaron Bastani conjures a vision of extraordinary hope, showing how we move to energy abundance, feed a world of 9 billion, overcome work, transcend the limits of biology, and establish meaningful freedom for everyone. Rather than a final destination, such a society merely heralds the real beginning of history.

Amazon

Fully Automated Luxury Communism

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This is an idea where computers manage the economy perfectly so we can all live lives of leisure.

The most ardent advocate for FALC, Aaron Bastani, a London-based media executive and writer, has written a new book on the topic. In it, he advances a curious, passionate argument, with a dire assessment of the present and a messianic vision for the future. Bastani believes that we are already living through a potentially epochal transformation of the economy, as epochal as the establishment of agriculture and the introduction of engines and electricity. Artificial intelligence, machine learning, and advanced computing might be about to eliminate the need for human labor in no small part, Bastani claims.

The Atlantic

This article doesn’t quite tell you what it is. Without reading the book, I imagine the idea might be that you invest in the right technologies to grow the economy while minimizing ecological harm, then reinvest some of the gains in an optimal way while paying an equitable dividend to everyone in the world. Maybe at some point, you work things out so that money is no longer necessary to keep the system in balance. That’s my guess as to what is in this book – maybe I should read the book and find out.