This was submitted to an American publication but not published.) On 15 March, 2019, a gunman entered Masjid Al Noor, a mosque in Christchurch, New Zealand, during prayer time, and fired a semiautomatic rifle adapted to shoot continuously. He then went to a second mosque a few miles away, shooting people there too. Altogether 50…
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AUT Briefing Papers March 27, 2018 There is a slowly but steadily accumulating body of criticism of the dominant economic paradigm which constitutes today’s conventional wisdom. A recent Oxford Review of Economic Policy devoted an entire issue to critiquing ‘Dynamic Stochastic General Equilibrium’ (DSGE) models, a workhorse of econometric forecasting based on much of the current thinking….
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Paul Krugman, the 2008 winner, tweeted ‘Yes! Behavorial econ is the best thing to happen to the field in generations, and [Richard] Thaler showed the way.’ Good science is essentially a subversive activity. Most scientists work within the existing paradigm – the framework of the basic assumptions, ways of thinking, and methodology commonly accepted by…
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AUT Briefing PapersOctober 31, 2017 ‘Far too many New Zealanders have come to view today’s capitalism, not as their friend, but as their foe. And they are not all wrong. That is why we believe that capitalism must regain its responsible – its human face.’ Winston Peters. Announcing that he was going with Labour, Winston…
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The last column described the philosophy of economist James Buchanan as it applied to the United States. What is its relevance to New Zealand? When I looked at James Buchanan’s theory of public choice, I was struck by how it reflected an American institutional setting; Our political system is different. Even so, our colonial mentality…
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A new biography of James Buchanan, a founder of economist’s public choice theory, suggests he was not only anti-democratic but was working with others to revoke democracy in America. The work of economist and social philosopher James Buchanan (1919-2013) came to prominence in the mid-1980s when he was awarded the Economics Prize in honour of…
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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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AUT Briefing Papers May 16, 2018 The neologism ‘Austerian’ is a portmanteau of ‘austerity’ and ‘Austrian’ (School of Economics). It became extensively used after the Global Financial Crisis. It describes the policies of those countries which had to restrain public and private spending because lenders were unwilling to provide the funds for their budget deficits….
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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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AUT Briefing Papers October 6, 2015 Once upon a time New Zealand identified itself as egalitarian. Phrases like ‘a classless society’, ‘jack’s as good as his master; ‘a working man’s democracy’ were bandied around, often without much critical thought. A distinction was made between ‘egalitarian’ and ‘equalitarian’. Certainly the aim was that New Zealanders were…
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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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