Marc Levinson’s selective education

Levinson’s inability to perform a Bohm-Bawerk grade undermining of Schiller is shameful and the attempt appalling

Marc Levinson’s article, linked below, offers details about the post WWII “golden age” which are thorough for casual interest readers to understand and to gain insight as to events which may have cause and effect relationship related to modern economic conditions and how to proceed. However there were key places Levinson chose to selectively not educate the reader. One, he fails to discuss financing the “golden age” with taxes on income 25x poverty levels. Though realistically everyone paid higher rates to help finance the needs and support structures he thoroughly describes as essential to the success during that period. Continue reading Marc Levinson’s selective education

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Real Economic Growth Analyzed

Excellent read from Yale economist and Federal Reserve Bank of Minneapolis consultant Timothy Kehoe. He expresses that economic growth is driven by productivity growth as opposed to prevailing view of capital accumulation as driver.

This is shown with his use, as the beginning stage and presented in excerpt below, of the Malthusian Trap. Fascinating to me and fundamentally important is how this can be applied to global economic growth beyond his analysis.

From 1999 to 2013 (set in 2013 dollars) the World GDP – per capita (PPP) rose from $6800 to $13,100.

How do we move forward with this information?

  1. wait and see: continued development and economic growth
  2. search for post Kehoe analysis: next level (Kehoe 4?) and new cycle of leader-style
  3. present consideration: spread of investment into a global economy

The median annual household income worldwide is $9,733, and the median per-capita household income is $2,920″ by Glenn Phelps and Steve Crabtree via Gallup.

Article excerpt:

Stages of economic growth

We classify the countries in our sample into four stages of economic growth. (For details on country data and classification, see the appendix.)

0. Malthusian trap
1. Taking off into growth
2. Catching up to the economic leader
3. Joining the economic leader

The Stages of Economic Growth Revisited, Part 1

by Timothy J. Kehoe

The Stages of Economic Growth Revisited, Part 2

slower gdp growth IS NOT A BAD THING

An excellent view on why GDP growth is not a good measure for economic health likely cannot be better worded than is in an article by the Harvard Business School: “Other activities included in GDP, such as health care costs, do not reflect the fact that spending more on health care is, in John Caddell’s opinion, “in general not good for the country.”

spending more on health care is in general not good for the country

More to my person opinion, measuring GDP growth as a measure of the economy disappoints me because this suggests to me that we are in a consumerist economy.  I have no issue with people desiring whatever goods are desired however attributing these to the health of the economy appears problematic; not all goods are necessary for life and including the unnecessary should not indicate a general higher national economic well-being.
Authors from Boston University provided The Pardee Papers, specifically issue number four from 2009, as an early look into the need to change how we measure GDP. From the abstract: “We critique the inappropriate use of Gross Domestic Product (GDP) as a measure of national well-being, something for which it was never designed.” The authors help readers to understand that measuring GDP as a measure of well-being is problematic by offering the analogy of a building using electricity and that the more electricity used does not necessarily indicate higher quality of life. I find this to be a weak analogy – however it does begin the process of recognizing certain things – as suggested before higher health care spending does not imply higher quality of life. Link to PDF follows.
One alternative measure is examined by Senior Fellow at New America:¬†Georgia Levenson Keohane in an article posted by Time in which a Social Progress Index measures the extent to which countries provide for the social and environmental needs of their citizens. The SPI was developed by the Social Progress Imperative and is based on the writings of Amartya Sen, Douglass North, and Joseph Stiglitz. From this list I’ve read three of Amartya Sen’s books and have concern about inflationary aspects of his lending practices if applied globally, however I take no issue with his belief in assisting the extremely impoverished. It appears the SPI has been in use since the beta version launched in 2013.
Several other alternative measures are reintroduced in a January 2016 article by CBSnews which provides a re-listing and link to a 2008 article from The New York Times.