(Roughly) Daily

Posts Tagged ‘Ricardo

“Inequality is as dear to the American heart as liberty itself”*…

And indeed, what was true a century ago seem still to hold. Everyone seems to hate/fear inflation, but it has radically different impacts on different groups within our society…

Inflation is widening America’s wealth gap.

• Prices have risen across the nation, and so have wages across all income levels.

• The lowest-earning households gained an average of $500 in earnings last year. But their expenses grew by almost $2,000.

• Meanwhile, the upper half of earners pulled further ahead as their incomes outgrew expenses significantly.

Whom does inflation hurt the most?” from Scott Galloway (@profgalloway)

William Dean Howells

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As we ferret out unfairness, we might cautious birthday greetings to James Mill; he was born (James Milne) on this date in 1773. A historian, economist, political theorist, and philosopher (a close ally of Utilitarian thinker Jeremy Bentham), he is counted among the founders of the Ricardian school of economics (and so, among other things, a father of monetarism, the theory that excess currency leads to inflation).

His son, John Stuart Mill, studied with both Bentham and his father, then became one of most influential thinkers in the history of classical liberalism (perhaps especially his definition of liberty as justifying the freedom of the individual in opposition to unlimited state and social control). JSM also followed his father in justifying colonialism on Utilitarian lines, and served as a colonial administrator at the East India Company.

James Mill

source

“There are people who have money and people who are rich”*…

 

goldfinger

Every January, to coincide with the World Economic Forum in Davos, Oxfam tells us how much richer the world’s richest people have got. In 2016, their report showed that the wealthiest 62 individuals owned the same amount as the bottom half of the world’s population. This year, that number had dropped to 42: three-and-half-dozen people with as much stuff as three-and-a-half billion.

This yearly ritual has become part of the news cycle, and the inequality it exposes has ceased to shock us. The very rich getting very much richer is now part of life, like the procession of the seasons. But we should be extremely concerned: their increased wealth gives them ever-greater control of our politics and of our media. Countries that were once democracies are becoming plutocracies; plutocracies are becoming oligarchies; oligarchies are becoming kleptocracies.

Things were not always this way. In the years after the second world war, the trend was in the opposite direction: the poor were getting richer; we were all getting more equal. To understand how and why that changed, we need to go back to the dying days of the conflict, to a resort in New Hampshire, where a group of economists set out to secure humanity’s future.

This is the story of how their dream failed and how a London banker’s bright idea broke the world…

The true story of how the City of London invented offshore banking – and set the rich free:  “The real Goldfinger: the London banker who broke the world.”

* Coco Chanel

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As we agree that “fair’s fair,” we might spare a thought for David Ricardo; he died on this date in 1823.  A political economist, he developed a a labor theory of value in his seminal Principles of Political Economy and Taxation, published in 1817; he was instrumental in the development of theories of rent, wages, and profits; and at a time of mercantilist sentiment, he introduced the theory of competitive advance and advocated free trade.  Indeed, most economists rank Ricardo as the second most influential economic thinker working before the 20th century, after Adam Smith.

220px-Portrait_of_David_Ricardo_by_Thomas_Phillips source

 

Written by (Roughly) Daily

September 11, 2018 at 1:01 am

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