Economists and the Powerful: Convenient Theories, Distorted Facts, Ample Rewards (Anthem Other Canon Economics)
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“Economists and the Powerful: Convenient Theories, Distorted Facts, Ample Rewards” explores the workings of the modern global economy – an economy in which competition has been corrupted and power has a ubiquitous influence upon economic behavior. Based on empirical and theoretical studies by distinguished economists from both the past and present day, this book argues that the true workings of capitalism are very different from the popular myths voiced in mainstream economics. Offering a closer look at the history of economic doctrines – as well as how economists are incentivized – “Economists and the Powerful” exposes how, when and why the theme of power was erased from the radar screens of mainstream economic analysis – and the influence this subversive removal has had upon the modern financial world.
earlier findings with an improved set of data (Card and Krueger 2000). Dube, Lester and Reich (2010) took the methodology of Card and Krueger to the national level. They compared the employment performance and wage developments in the low-paying industries of all neighboring counties located in two different states, only one of which saw changes in the state minimum wage. They found no evidence for employment loss, but strong evidence of an improved income situation for low-skilled workers in
everyone knew what not to do, in the United States it was much less clear what would be fatal for your career. Such uncertainty can be remarkably stifling. The rational choice movement and negative freedom Becoming a weapon in the Cold War had profound effects on economic doctrine. The economic mainstream of today, which is often equated with neoclassical economics, is actually neoclassical economics reformed by the ordinalist challenge and combined with rational choice liberalism. The
unattractive, so parents have an incentive to instill into their children an ethic and a belief system that entices them to do their utmost to avoid that outcome. This could explain why Americans insist on believing – against all empirical evidence – that their society is one in which everybody can make it, and one in which your family background determines your economic fate much less than in other countries. This is a belief that defiantly ignores the facts. Three international comparisons of
ordinary mutual fund. Hedge funds derive their particular power from being almost completely opaque about what they do. This means they can borrow as much money as they can get in order to leverage the bets they make. It also means that there is nobody who checks to see if they obey the rules of fair investing as they apply to regulated financial institutions. They can use almost any dirty trick there is in the world of finance. One might think that hedge funds are an unwelcome competition to
for downward wage rigidity. The strongest explanation, according to the answers of the managers, lies in the negative effect of wage cuts on effort and in adverse selection in talent retention. Adverse selection here means that the companies are concerned that the best employees will leave if they cut wages. Bewley (1995) summarizes the answers he received in many interviews with high-ranking personnel managers: “Workers have many opportunities to take advantage of employers so that it is not