The lives of two outstanding economists who died recently illustrate just how diverse the profession is. I first came across William Baumol when, as a student, I valued greatly his two textbooks: Economic Dynamics and Economic Theory and Operations Analysis, both lucid, intellectually challenging and with a gentle humour. (Rather than the conventional tradeoff of…
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Managing the government’s fiscal deficit need not mean cutting social expenditure. An economic Austerian is someone who advocates cutting government spending, particularly social expenditures, in order to eliminate a government’s fiscal deficits. (The name is a portmanteau of ‘austerity’ and ‘Austrian’ from the neoliberal ‘Austrian School of Economics’.) While Austerian policies are currently most evidently…
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Do residential care workers deserve the big pay increase they are getting? The recent historic pay equity deal for aged and residential care workers raises a tricky clash between quite different accounts of how the economy should work. Many people think that workers should be paid at a rate that reflects their social worth; others…
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Ill fares the land, to hastening ills a prey, Where wealth accumulates, and men decay: Princes and lords may flourish, or may fade— A breath can make them, as a breath has made:…
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How does a post-truth world work? Some psychological findings may be useful. (The Oxford Dictionary definition of ‘post-truth’ is ‘Relating to or denoting circumstances in which objective facts are less influential in shaping public opinion than appeals to emotion and personal belief’ The Dictionary labelled it the word of the year 2016.) This columnist is…
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A book about two psychologists who have altered the way we think about the way we think. For many people, Michael Lewis is best known for his 2010 book The Big Short and the follow-up film, which describes the carryings-on of the financial sector in the American housing market which underlay the Global Financial Crisis. In fact…
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What does the latest Economics Prize in honour of Alfred Nobel tell us about economics as a science? Alfred Nobel did not endow a prize in economics. In 1968 the Swedish National (i.e. central) Bank founded a ‘Prize in Economic Sciences in Memory of Alfred Nobel’. The award’s announcement is coordinated with the annual Nobel…
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Paper to the Fabian Society, 12 October, 2016 While we continue to chew over the carcass of the Fourth Labour Government – the Lange-Douglas one – we pay little attention to the subsequent Fifth Labour Government. Yet the Clark-Cullen one is greatly shaping the current Labour Opposition and the current National Government. It will,…
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Is it possible to have sensible discussions in public? Last June there was a kerfuffle in the online magazine Spinoff over attitudes to intellectual activity in New Zealand. It was precipitated by an extract from Auckland retired academic Roger Horrocks’s recently published collection of essays, Re-inventing New Zealand.. The excerpt came from ‘A Short History of “The New Zealand Intellectual”’…
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The social worth of a person in no way reflects their income or wealth. To confuse the two notions is to play into the values of the rich. My brother, Keith, died in the hospital wing of a Christchurch retirement home recently. He had been diagnosed with metastatic bowel cancer two years before, and had 22…
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(William) KEITH EASTON: 18 August 1944 – 26 April 2016 When I was about 12, the family was hit by a virus which made us lackadaisical and sleepy. I recall that on the afternoon it impacted on me, I struggled to meet my raspberry picking quota. Keith, 17 months younger, went down for a week….
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It is not what Eleanor Catton said about the government, but how we respond to what she said. Sean Plunkett’s intemperate attack on Eleanor Catton is a reminder of just how superficial is tolerance of dissent in New Zealand. I leave others to defend the exact interchange – Danyl McLauchlan was as I normally expect…
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Jeff Madrick identifies seven bad economic ideas; Alan Blinder is more cautious. What do economists actually believe, and how does it stack up against what we think economics says? Jeff Madrick, a highly respected American economic journalist, recently published a book, Seven Bad Ideas: How Mainstream Economists Have Damaged America and the World. It was…
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The Secretary of the Treasury appears to have doubts. Pundit: 24 November, 2014. Keywords: History of Ideas, Methodology & Philosophy; In a speech to economics teachers earlier this month, the Secretary of the Treasury, Gabriel Makhlouf, argued for a different approach to economics from the one which dominates the profession in New…
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Thomas Piketty says economic inequality has been getting greater in the world, and will get greater. What about New Zealand? Pundit: 28 October, 2014 Keywords: Distributional Economics; History of Ideas, Methodology & Philosophy; Paul Krugman has said “Thomas Piketty has transformed our economic discourse; we’ll never talk about wealth and inequality the…
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Jack Shallcrass died on the 13 August, 2014 at the age of 91. Many years earlier in 1965 – he was 42 and I 21 – he spoke at the University of Curious Cove. His lecture, ‘The Right to Dissent’ greatly influenced my thinking. Its themes of the central role of dissent in a civilised…
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Published as a briefing paper: 13 May, 2014 (A service being provided by AUT) http://briefingpapers.co.nz/ Keywords: History of Ideas, Methodology & Philosophy; The annual May budget is a public spectacle. The Minister of Finance is photographed holding aloft a copy of his speech while those from political parties and sectors dominate media discussions…
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As our main indicator of economic growth, GDP has major limitations. Listener: 30 January, 2014. Keywords: History of Ideas, Methodology & Philosophy; Political Economy & History; The expectation is for normal economic growth in the coming year. The economy peaked in September 2007 and stagnated (in per-capita terms) through to March…
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Why it has taken so long for child poverty to become part of the conventional wisdom. Listener: 16th January, 2014 Keywords: Distributional Economics; History of Ideas, Methodology & Philosophy; Social Policy; Corso, the Council of Organisations for Relief Services Overseas, decided in 1979 that it was wrong to ignore poverty in New…
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The Truth Behind the Free Market by Bryan Gould (Macmillan, $54.95) This review was commissioned by ‘The Listener’ but not used Keywords: History of Ideas, Methodology & Philosophy; Political Economy & History; The dominant public narrative has a vision of business and the market as progressive forces, held back by unnecessary interventions from politicians and…
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