It is now conventional wisdom to focus on the wealth of the top 1 percent—especially the top 0.01 percent—and how the ultra-rich are concentrating income and prosperity while incomes for most other Americans are stagnant. But the most important, consequential, and widening gap in American society is between the upper middle class and everyone else.
Reeves defines the upper middle class as those whose incomes are in the top 20 percent of American society. Income is not the only way to measure a society, but in a market economy it is crucial because access to money generally determines who gets the best quality education, housing, health care, and other necessary goods and services.
As Reeves shows, the growing separation between the upper middle class and everyone else can be seen in family structure, neighborhoods, attitudes, and lifestyle. Those at the top of the income ladder are becoming more effective at passing on their status to their children, reducing overall social mobility. The result is not just an economic divide but a fracturing of American society along class lines. Upper-middle-class children become upper-middle-class adults.
These trends matter because the separation and perpetuation of the upper middle class corrode prospects for more progressive approaches to policy. Various forms of “opportunity hoarding” among the upper middle class make it harder for others to rise up to the top rung. Examples include zoning laws and schooling, occupational licensing, college application procedures, and the allocation of internships. Upper-middle-class opportunity hoarding, Reeves argues, results in a less competitive economy as well as a less open society.
Inequality is inevitable and can even be good, within limits. But Reeves argues that society can take effective action to reduce opportunity hoarding and thus promote broader opportunity. This fascinating book shows how American society has become the very class-defined society that earlier Americans rebelled against—and what can be done to restore a more equitable society.
Originally published in 1912, Ludwig von Mises’s The Theory of Money and Credit remains today one of economic theory’s most influential and controversial treatises. Von Mises’s examination into monetary theory changed forever the world of economic thought when he successfully integrated “macroeconomics” into “microeconomics” —previously deemed an impossible task —as well as offering explanations into the origin, value and future of money.
One hundred years later, von Mises and the Austrian school of economic theory are still fiercely debated by world economists in their search for the solution to America’s current financial crisis. His theorems continue to inspire politicians and market experts who aim to raise up the common man and reduce the financial power of governments. In a preface added in 1952, von Mises urges the people of the world to see economic truth:
“The great inflations of our age are not acts of God. They are man-made or, to say it bluntly, government-made. They are the off-shoots of doctrines that ascribe to governments the magic power of creating wealth out of nothing and of making people happy by raising the ‘national income.’”
“The best book on money ever written.” —Murray Rothbard, economist and historian
“The greatest economist of the twentieth century.” —Sandeep Jaitly, economist
Contending Economic Theories offers a unique comparative treatment of the three main theories in economics as it is taught today: neoclassical, Keynesian, and Marxian. Each is developed and discussed in its own chapter, yet also differentiated from and compared to the other two theories. The authors identify each theory's starting point, its goals and foci, and its internal logic. They connect their comparative theory analysis to the larger policy issues that divide the rival camps of theorists around such central issues as the role government should play in the economy and the class structure of production, stressing the different analytical, policy, and social decisions that flow from each theory's conceptualization of economics.
The authors, building on their earlier book Economics: Marxian versus Neoclassical, offer an expanded treatment of Keynesian economics and a comprehensive introduction to Marxian economics, including its class analysis of society. Beyond providing a systematic explanation of the logic and structure of standard neoclassical theory, they analyze recent extensions and developments of that theory around such topics as market imperfections, information economics, new theories of equilibrium, and behavioral economics, considering whether these advances represent new paradigms or merely adjustments to the standard theory. They also explain why economic reasoning has varied among these three approaches throughout the twentieth century, and why this variation continues today—as neoclassical views give way to new Keynesian approaches in the wake of the economic collapse of 2008.
Economics is a broken science, living in a kind of Alice in Wonderland state believing in multiple inconsistent things at the same time. Prior to the financial crisis, mainstream economics argued simultaneously for small government on taxation, regulation and spending, but big government on monetary policy. After the financial crisis, economics is now arguing for more government spending and for less government spending.
The premise of this book is that the internal inconsistencies between economic theories - the apparently unresolvable debates between leading economists and the incoherent policies of our governments - are symptomatic of economics being in a crisis. Specifically, in a scientific crisis.
The good news is that, thanks to the work of scientist and philosopher Thomas Kuhn, we know what needs to be done to fix a scientific crisis. Moreover, there are two scientists in particular whose ideas could show how to do this for economics: Charles Darwin, the man who discovered evolution, and William Harvey, doctor to King Charles I and the first person to understand blood flow and the workings of the human heart.
In Fixing Economics, bestselling financial writer George Cooper explains how the ideas of Darwin and Harvey could revolutionise economics, making it more scientific and understandable, and might even reveal the true origin of economic growth and inequality.
Taking readers on a gripping tour of scientific revolution, social upheaval and the secrets of money and debt, this is an unmissable read for anyone curious to understand how the world really works - and the amazing future of economics.
Hilton Root examines the frontier between risk and uncertainty, analyzing the forces driving development in both developed and undeveloped regions. In the former, he argues, institutions reduce everyday economic risks to levels low enough to make people receptive to opportunities for profit, stimulating developments in technology and science. Not so in developing countries. There, institutions that specialize in sharing risk are scarce. Money hides under mattresses and in teapots, creating a gap between a poor nation's savings and its investment. As a consequence, the developing world faces a growing disconnect between the value of its resources and the availability of finance.
What are the remedies for eliminating this disparity? Root shows us how to close the growing wealth gap among nations by building institutions that convert uncertainty into risk. Comparing China to India, Latin America to East Asia, and contemporary to historical cases, he offers lessons that can help the World Bank and the International Monetary Fund to tackle the political incentives that are the source of poor governance in developing nations.
In Borderless Economics, Robert Guest, The Economist's Business Editor, travels through dozens of countries and 44 American states, observing how these networks create wealth, spread ideas and foster innovation. He shows how:
* Brainy Indians in America collaborate with brainy Indians in India to build $70 fridges and $300 houses
* Young Chinese study in the West and then return home (where they're known as "sea turtles"), infecting China with ideas that will eventually turn it democratic
* The so-called "brain drain" - the flow of educated migrants from poorcountries to rich ones - actually reduces global poverty
*America's unique ability to attract and absorb migrants lets it tap into the energy of all the world's diaspora networks. So despite its current woes, if the United States keeps its borders open, it will remain the world's most powerful nation indefinitely.
With on-the-ground reporting from Asia, Africa, Europe and even Idaho, this book examines how migration, for the all the disruption it causes, makes the world wealthier and happier.
"Cracking the Highest Glass Ceiling is the first major work to examine why women candidates for executive office have been successful in some countries but not others. With top scholars and elegant methodology, it makes a unique and foundational contribution to the literature. This edited volume will be widely read by scholars and students alike."---Caroline Heldman Associate Professor, Occidental College, and coeditor of Rethinking Madam President: Are We Ready for a Woman in the White House?
In recent years, more and more high-profile women candidates have been running for executive office in democracies all around the world. Cracking the Highest Glass Ceiling: A Global Comparison of Women's Campaigns for Executive Office is the first study to undertake an international comparison of women's campaigns for highest office and to identify the commonalities among them. For example, women candidates often begin as front-runners as the idea of a woman president captures the public imagination, followed by a decline in popularity as stereotypes and gendered media coverage kick in to erode the woman's perceived credibility as a national leader. On the basis of nine international case studies of recent campaigns written by thirteen country specialists, the volume develops an overarching framework which explores how gender stereotypes shape the course and outcome of women's campaigns in the male-dominated worlds of executive elections in North America, South America, Europe, Africa, and Australia. This comparative approach allows the authors to discriminate between the contingent effects of a particular candidate or national culture and the universal operation of gender stereotyping. Case studies include the campaigns for executive office of Hillary Rodham Clinton (United States, 2008), Sarah Palin (United States, 2008), Angela Merkel (Germany, 2005 and 2009), Segolene Royal (France, 2007), Helen Clark (New Zealand, 1996-2008), Cristina Fernandez de Kirchner (Argentina, 2007), Michelle Bachelet (Chile, 2006), Ellen Johnson Sirleaf (Liberia, 2005), and Irene Saez (Venezuela, 1998).
Author and financial expert Jerome B. McKinney has expanded on the previous edition of this popular financial text, offering the latest best practices in e-government applications, cash flow analysis, revenue forecasting, and fiscal health evaluations. This fourth edition also looks at sustainability, the role of monetary policies and fiscal policy, globalization and its competitive impact, and the massive growth of outsourcing. On a final note, the work explains how recent legislation has influenced the development, use, and implementation of performance measures holding government agencies more accountable for their actions.
What causes poverty? Are economic crises inevitable under capitalism? Is government intervention in an economy a helpful approach or a disastrous idea? The answers to such basic economic questions matter to everyone, yet the unfamiliar jargon and math of economics can seem daunting. This clear, accessible, and even humorous book is ideal for young readers new to economics and for all readers who seek a better understanding of the full sweep of economic history and ideas.
Economic historian Niall Kishtainy organizes short, chronological chapters that center on big ideas and events. He recounts the contributions of key thinkers including Adam Smith, David Ricardo, Karl Marx, John Maynard Keynes, and others, while examining topics ranging from the invention of money and the rise of agrarianism to the Great Depression, entrepreneurship, environmental destruction, inequality, and behavioral economics. The result is a uniquely enjoyable volume that succeeds in illuminating the economic ideas and forces that shape our world.
In the twenty-first-century digital world, virtual goods are sold for real money. Digital game players happily pay for avatars, power-ups, and other game items. But behind every virtual sale, there is a virtual economy, simple or complex. In this book, Vili Lehdonvirta and Edward Castronova introduce the basic concepts of economics into the game developer's and game designer's toolkits. Lehdonvirta and Castronova explain how the fundamentals of economics—markets, institutions, and money—can be used to create or analyze economies based on artificially scarce virtual goods. They focus on virtual economies in digital games, but also touch on serious digital currencies such as Bitcoin as well as virtual economies that emerge in social media around points, likes, and followers. The theoretical emphasis is on elementary microeconomic theory, with some discussion of behavioral economics, macroeconomics, sociology of consumption, and other social science theories relevant to economic behavior.
Topics include the rational choice model of economic decision making; information goods versus virtual goods; supply, demand, and market equilibrium; monopoly power; setting prices; and externalities. The book will enable developers and designers to create and maintain successful virtual economies, introduce social scientists and policy makers to the power of virtual economies, and provide a useful guide to economic fundamentals for students in other disciplines.
In clear-cut prose, Benjamin M. Friedman examines the political and social histories of the large Western democracies–particularly of the United States since the Civil War–to demonstrate the fact that incomes on the rise lead to more open and democratic societies. He explains that growth, rather than simply a high standard of living, is key to effecting political and social liberalization in the third world, and shows that even the wealthiest of nations puts its democratic values at risk when income levels stand still. Merely being rich is no protection against a turn toward rigidity and intolerance when a country’s citizens lose the sense that they are getting ahead.
With concrete policy suggestions for pursuing growth at home and promoting worldwide economic expansion, this volume is a major contribution to the ongoing debate about the effects of economic growth and globalization.
From the Trade Paperback edition.
This work also emphasizes the connection between optimal control theory and the classical themes of capital theory. It offers a fresh approach to fundamental questions such as: What is income? How should it be measured? What is its relation to wealth?
The book will be valuable to students who want to formulate and solve dynamic allocation problems. It will also be of interest to any economist who wants to understand results of the latest research on the relationship between comprehensive income accounting and wealth or welfare.
Table of Contents:
Part I. Introduction to the Maximum Principle
1. The Calculus of Variations and the Stationary Rate of Return on Capital
2. The Prototype-Economic Control Problem
3. The Maximum Principle in One Dimension
4. Applications of the Maximum Principle in One Dimension
Part II. Comprehensive Accounting and the Maximum Principle
5. Optimal Multisector Growth and Dynamic Competitive Equilibrium
6. The Pure Theory of Perfectly Complete National Income Accounting
7. The Stochastic Wealth and Income Version of the Maximum Principle
This book is a self-contained introduction to comparative statics analysis which is appropriate for a first year PhD course in mathematics for economists. The demands that modern economic analysis places upon the student renders an incremental approach to learning essential. This permits students' intuition to develop as mathematical tools are employed in problem solving. In this book, students learn comparative statics by doing comparative statics in progressively more sophisticated models. Repeated application of the basic technique allows the student to gain competence in comparative statics analysis with minimal distraction.
This extensively revised and updated second edition of Latin American Economic Development continues to provide the most up to date exploration of why the continent can be considered to have underperformed, how the various Latin American economies function, and the future prospects for the region. The book addresses the economic problems of Latin America theme by theme.
Changes and new features in this new edition include:
Expanded coverage of how institutions affect economic growth in Latin America
Many new boxes and questions for review and discussion
New material on how climate change affects the region
Updated material to reflect the ongoing macroeconomic stability of the past decade
A new chapter on the political economy of Latin America
The book provides a comprehensive text for undergraduate economics courses on Latin America, and is also suitable for use by students in other disciplines looking for a wide-ranging guide to the region. This book will continue to be an invaluable resource for undergraduates looking at Latin American economics, growth, and development.
Game theory models are ubiquitous in economics, common in political science, and increasingly used in psychology and sociology; in evolutionary biology, they offer compelling explanations for competition in nature. But game theory has been only sporadically applied to the humanities; indeed, we almost never associate mathematical calculations of strategic choice with the worlds of literature, history, and philosophy. And yet, as Steven Brams shows, game theory can illuminate the rational choices made by characters in texts ranging from the Bible to Joseph Heller's Catch-22 and can explicate strategic questions in law, history, and philosophy.
Much of Brams's analysis is based on the theory of moves (TOM), which is grounded in game theory, and which he develops gradually and applies systematically throughout. TOM illuminates the dynamics of player choices, including their misperceptions, deceptions, and uses of different kinds of power.
Brams examines such topics as the outcome and payoff matrix of Pascal's wager on the existence of God; the strategic games played by presidents and Supreme Court justices; and how information was slowly uncovered in the game played by Hamlet and Claudius. The reader gains not just new insights into the actions of certain literary and historical characters but also a larger strategic perspective on the choices that make us human.
This book examines SEZs from a political economy perspective, both to dissect the incentives of governments, zone developers, and exporters, and to uncover both the hidden costs and untapped potential of zone policies. Costs include misallocated resources, the encouragement of rent-seeking, and distraction of policy-makers from more effective reforms. However, the zones also have several unappreciated benefits. They can change the politics of a country, by generating a transition from a system of rent-seeking to one of liberalized open markets. In revealing the hidden promise of SEZs, this book shows how the SEZ model of development can succeed in the future.
Applying frameworks from various schools of political economy, this volume places SEZs in the context of their mixed past and promising future. It is essential reading for anyone with an interest in international economics, development economics, and political economy, including practitioners and consultants of SEZ policies.
Comparative economics, with its traditional dichotomies of socialism versus capitalism, private versus state, and planning versus market, is changing. This innovative textbook offers a new approach to understanding different economic systems that reflects both recent transformations in the world economy and recent changes in the field.This new edition examines a wide variety of institutional and systemic arrangements, many of which reflect deep roots in countries' cultures and histories.
The book has been updated and revised throughout, with new material in both the historical overview and the country case studies. It offers a broad survey of economic systems, then looks separately at market capitalism, Marxism and socialism, and “new traditional economies” (with an emphasis on the role of religions, Islam in particular, in economic systems). It presents case studies of advanced capitalist nations, including the United States, Japan, Sweden, and Germany; alternative paths in the transition from socialist to market economies taken by such countries as Russia, the former Soviet republics, Poland, China, and the two Koreas; and developing countries, including India, Iran, South Africa, Mexico, and Brazil. The new chapters on Brazil and South Africa complete the book's coverage of all five BRICS nations; the chapter on South Africa extends the book's comparative treatment to another continent. The chapter on Brazil with its account of the role of the Amazon rain forest as a great carbon sink expands the coverage of global environmental and sustainability issues. Each chapter ends with discussion questions.
This book also features contributions from the Japanese perspective and compares Ricardian theories with those of his contemporaries, such as Malthus, Torrens and J. S. Mill. This book will be a valuable reference for researchers and scholars with interests in history of economic thought and international economics.
After that, Vitalik started drafting the Ethereum Whitepaper. The document justified the idea of a new crypto technology, stated its main principles, and possible applications. The whitepaper was published in 2013, and a month later, Buterin announced the beginning of Ethereum project during the Bitcointalk forum. In his post, Vitalik said that he was working with Jeffrey Wilcke and Dr. Gavin Wood as principle core developers. Wood took the main part in Ethereum creation after Vitalik. His Yellow Paper (the formal specification of Ethereum Virtual Machine) was published in April 2014. Coding its very first practical implementation in seven programming languages, this was the development of the first prototype of Ethereum platform. Just like Ethereum, Bitcoin is based on Blockchain technology, but this means nothing if it is not backed by the most powerful network in history. Investors channeled millions of dollars into Bitcoin, using the money on trading, mining equipment, and technologies. Launching a network like that demands the same amount (or more) of effort. To kick-start a group of investors, miners, and developers, the Ethereum foundation chose to carry out a pre-sale of more than 60M digital tokens (Ethers). The campaign ended up being a major success.
Table of Contents
1.What Is Ethereum?
2.Automation and Ledgers
7.Ethereum Smart Contracts
9.Understanding Blockchain Technology
10. Public and Permissioned Blockchains
11. Blockchain and the Future of Artificial Intelligence
12. Distributed Ledger
13. Blockchain and Online Fraud
14. The Key to the Future
15. Concerns and Limitations of Blockchain
16. How to Execute Bitcoin Transactions
17. How to Buy Bitcoin in the UK
18. Understanding Public and Permissioned Blockchains
19. Ethereum Mining Rig
20. Paper Bitcoin Wallet
21. Buying Ethereum
22. Mining Altcoins
23. Buying Bitcoin Anonymously
24. Leading Cryptocurrency Options
25. “Crypto Kitties” and Ethereum Blockchain
26. Ethereum Wallets
27. Understanding Ripple and its Benefits
28. Steps to Buying Ripple
29. The Best XRP Wallets
31. Beginner’s Guide to Buying NEM (XEM)
For decades the semiconductor industry has been a driver of global economic growth and social change. Semiconductors, particularly the microchips essential to most electronic devices, have transformed computing, communications, entertainment, and industry. In Chips and Change, Clair Brown and Greg Linden trace the industry over more than twenty years through eight technical and competitive crises that forced it to adapt in order to continue its exponential rate of improved chip performance. The industry's changes have in turn shifted the basis on which firms hold or gain global competitive advantage.
These eight interrelated crises do not have tidy beginnings and ends. Most, in fact, are still ongoing, often in altered form. The U.S. semiconductor industry's fear that it would be overtaken by Japan in the 1980s, for example, foreshadows current concerns over the new global competitors China and India. The intersecting crises of rising costs for both design and manufacturing are compounded by consumer pressure for lower prices. Other crises discussed in the book include the industry's steady march toward the limits of physics, the fierce competition that keeps its profits modest even as development costs soar, and the global search for engineering talent.
Other high-tech industries face crises of their own, and the semiconductor industry has much to teach about how industries are transformed in response to such powerful forces as technological change, shifting product markets, and globalization. Chips and Change also offers insights into how chip firms have developed, defended, and, in some cases, lost global competitive advantage.
Eight countries in East Asia--Japan, South Korea, Taiwan, Hong Kong, Singapore, Thailand, Malaysia, and Indonesia--have become known as the "East Asian miracle" because of their economies' dramatic growth. In these eight countries real per capita GDP rose twice as fast as in any other regional grouping between 1965 and 1990. Even more impressive is their simultaneous significant reduction in poverty and income inequality. Their success is frequently attributed to economic policies, but the authors of this book argue that those economic policies would not have worked unless the leaders of the countries made them credible to their business communities and citizens.
Jose Edgardo Campos and Hilton Root challenge the popular belief that East Asia's high performers grew rapidly because they were ruled by authoritarian leaders. They show that these leaders had to collaborate with various sectors of their population to create an environment that was conducive to sustained growth. This required them to persuade the business community that their investments would not be expropriated and to convince the broader population that their short-term sacrifices would be rewarded in the future. Many of the countries achieved business cooperation by creating consultative groups, which the authors call deliberation councils, to enhance accountability and stability. They also obtained popular support through a variety of wealth-sharing measures such as land reform, worker cooperatives, and wider access to education.
Finally, to inhibit favoritism and corruption that would benefit narrow interest groups at the expense of broad-based development, these countries' leaders constructed a competent bureaucracy that balanced autonomy with accountability to serve all interests, including the poor.
This important book provides useful lessons about how developing and newly industrialized countries can build institutions to implement growth-promoting policies.
From the collapse of housing prices to the thousand-point drops in the stock market, the past five years have been full of economic crises. These changes not only affect the overall market--they can also drastically influence your personal finances and day-to-day life. In this easy-to-understand guide, Peter Sander explains how the financial system works, as well as the most important concepts, terms, and programs in economics. Using simple language, he details how the evolving climate will affect world economies--and what kind of shifts you are going to see in your finances as a result.
In this updated edition, Sander also includes valuable information on:The housing market and what it may do in the futureThe impact of Obamacare on the economyThe scope of the Great Recession and how the U.S. is still struggling to recoverHow to take advantage of the economy as it begins to rise again An essential guide, 101 Things Everyone Should Know about Economics, 2nd Edition helps you fully understand today's economy and shows you how to secure your financial future even as the market changes.