Category Archives: The dismal science

How Brexit Threatens to Turn the UK Into “Borisland”

How the Tories and UKIP intend to use Brexit to impose permanent austerity and reduce workers’ rights.

Read more...

IMF Warns That Inequality, Poverty, Low Productivity Growth, Falling Workforce Participation Will Drag on US Growth

The IMF has become an unlikely reporter of unpleasant realities about the US economy, particularly the costs of inequality and distress. If only its prescriptions were better….

Read more...

Unequal Gains: American Growth and Inequality Since 1700

American history suggests that inequality is not driven by some fundamental law of capitalist development, but rather by episodic shifts in five basic forces: demography, education policy, trade competition, financial regulation policy, and labour-saving technological change.

Read more...

Location, Location, Location: The Persistence of Fortune

Yves here. This intriguing paper curiously fails to consider how climate change can (will) affect the patterns they describe. And it also fails to give clues as to why some cities keep gaining population and income and others fall by the wayside. For instance, Atlanta and Birmingham, Alabama were of comparable size in the 1970s, […]

Read more...

Hensarling’s “Market Regulation” Replacement to Dodd Frank Proves He Does Not Understand Banking

Yves here. Steve Waldman wrote a definitive post in 2009, Capital can’t be measured, on a core issue that Black discusses here. A key section: So, for large complex financials, capital cannot be measured precisely enough to distinguish conservatively solvent from insolvent banks, and capital positions are always optimistically padded. Given these facts, and I […]

Read more...