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jerryking : deflation   6

The decline of America’s middle classes | Financial Times
Squeezed: Why Our Families Can’t Afford America, by Alissa Quart, Ecco $27.99, 308 pages

Rana Foroohar is the FT’s global business columnist.

the globalised, computerised, “always on” business world in which 40 per cent of Americans work non-traditional schedules driven by algorithmic efficiency. It’s just one of the challenges for a new class of Americans that Quart dubs the “Middle Precariat.” These people, who range from professors to nurses to caregivers to lawyers, aren’t destitute — they have some means, a degree or two, and have made decent life choices. And yet, they are struggling to stay ahead in an economy in which technology is exerting a deflationary effect on everything (including wages) except the things that create a middle-class life — namely affordable housing, education, healthcare and children.
affordable_housing  books  book_reviews  deflation  downward_mobility  middle_class  on-demand  precarious  Rana_Foroohar 
june 2018 by jerryking
Too much stuff, with no one to buy it: Is this the future economy? - The Globe and Mail
Scott Barlow
Too much stuff, with no one to buy it: Is this the future economy?
The Globe and Mail
Published Tuesday, Feb. 02, 2016

University of California professor Brad DeLong’s “Economics and the Age of Abundance” highlighted the new economic study of global production growth – a new-ish school of thought that attributes much of the economic malaise in the developed world to a technology-driven “too much of everything.....The economic challenges of abundance, however, go far beyond commodities. There’s too many mutual funds, television channels, cereal brands, auto companies (China hasn’t even started exporting cars and trucks yet), land-line telephones, clothing brands, taxis, department stores and, if we’re being honest, journalism. Technology and its ability to increase productivity are to blame for virtually any major market sector beset with poor profit margins and layoffs. ....... The larger problem, and I suspect Mr. DeLong would agree, is that technology increases efficiencies and reduces the need for labour. A dystopian future in which anything can be produced quickly and cheaply, except everyone’s unemployed with no money to spend, is easy to envisage without considerable structural change in the economy.

Unemployment is the most severe outgrowth of abundance and low profitability ....... ......
abundance  economics  economists  Colleges_&_Universities  oversupply  technology  commodities  over_investment  scarcity  innovation  China  productivity  deflation  manufacturers  outsourcing  unemployment  job_destruction  job_displacement  downward_mobility  hollowing_out  books  developed_countries  dystopian_futures  structural_change  developing_countries 
february 2016 by jerryking
Risky Business -
April 24, 2003 | WSJ |By STAN O'NEAL.

Historically, investors' trust in the markets has been well founded because enterprising people have been willing to take risks. Backed by venture capital, entrepreneurs create value, employment, wealth, and opportunities. Without risk, there would be no electricity, no personal computers, no vaccines. No GE, no IBM, no Pfizer.

Of course, in any system predicated on risk-taking, there are failures, sometimes spectacular failures. But for every failure to be viewed as fraudulent or even criminal bodes ill for our economic system. The message to CEOs, to entrepreneurs and to venture capitalists right now is that you cannot afford to be wrong.

In the aftermath of history's greatest market bubble, this backlash against risk is understandable. Excesses in the system were taken to incredible levels. And while our industry did not create the bubble, it also did not bathe itself in glory recognizing or resisting those excesses.

But if we attempt to eliminate risk -- to legislate, regulate, or litigate it out of existence -- the ultimate result will be economic stagnation, perhaps even economic failure. To teach investors that they should be insulated from these forces, that if they lose money in the market they're automatically entitled to be compensated for it does both them and the economy a disservice.

In my view, the great, historical contribution of American capitalism is its ability to create value. Even when the system works imperfectly, value is created. If our financial system is to retain this particular genius, we need to be willing to continue to innovate. If we fail to rebalance the forces of risk and reward, the greatest danger may be deflation. Not probable, but not impossible either.
capitalism  Merrill_Lynch  CEOs  risks  Stanley_O'Neal  economic_stagnation  financial_system  overregulation  imperfections  value_creation  risk-taking  moral_hazards  backlash  innovation  deflation 
june 2012 by jerryking
Building Wealth - 99.06
J U N E 1 9 9 9 |The Atlantic | by Lester C. Thurow. The new rules for individuals, companies, and nations.

Rule 1 No one ever becomes very rich by saving money.
Rule 2 Sometimes successful businesses have to cannibalize themselves to save themselves.
Rule 3 Two routes other than radical technological change can lead to high-growth, high-rate-of-return opportunities: sociological disequilibriums and developmental disequilibriums.
Rule 4 Making capitalism work in a deflationary environment is much harder than making it work in an inflationary environment.
Rule 5 There are no institutional substitutes for individual entrepreneurial change agents.
Rule 6 No society that values order above all else will be creative; but without some degree of order (institutional integrity??), creativity disappears.
Rule 7 A successful knowledge-based economy requires large public investments in education, infrastructure, and research and development.
Rule 8 The biggest unknown for the individual in a knowledge-based economy is how to have a career in a system where there are no careers.
Lester_Thurow  wealth_creation  entrepreneurship  rules_of_the_game  deflation  career_paths  Managing_Your_Career  cannibalization  disequilibriums  anomalies  JCK  unknowns  high-growth  change_agents  individual_initiative  technological_change  digital_economy  messiness  constraints  knowledge_economy  public_education  new_rules  capitalism  personal_enrichment  ROI  institutional_integrity 
november 2011 by jerryking
Lessons of the '30s: Long Study of Great Depression Has Shaped Bernanke's Views; Fed Nominee Learned Perils Of Deflation, Gold Standard And Pricking of Bubbles; A Grandmother's Explanation
Dec 7, 2005 | Wall Street Journal pg. A.1 | Greg Ip. "In
1983, Mark Gertler asked his friend and fellow economist Ben Bernanke
why he was starting his career by studying the Great Depression. "If you
want to understand geology, study earthquakes," Mr. Bernanke replied,
according to Mr. Gertler. "If you want to understand economics, study
the biggest calamity to hit the U.S. and world economies." "Lafley was
in charge of the company's Asian operations during a major Japanese
earthquake and the Asian economic collapse. That's when he discovered,
he says, that "you learn ten times more in a crisis than during normal
10x  Benjamin_Bernanke  economists  U.S._Federal_Reserve  bubbles  financial_history  Greg_Ip  Great_Depression  disequilibriums  geology  earthquakes  '30s  anomalies  crisis  deflation  lessons_learned 
november 2009 by jerryking

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