fascinating piece on how blogging has invigorated economic debate.
Blogging has served Mr Sumner well, both as a medium of expression and as a venue for drawing together like-minded colleagues.
Sapere Aude
Tag: economics
fascinating piece on how blogging has invigorated economic debate.
Blogging has served Mr Sumner well, both as a medium of expression and as a venue for drawing together like-minded colleagues.
unless your skill level is in the top 1% worldwide the great leveling will happen. protectionism will not save you.
At this point in the article Stiglitz stumbles. He mistakenly assumes that in our current depression/dislocation, technological improvement caused a loss of manufacturing jobs (productivity and portability overseas) that has forced a migration of workers to service industries. This has led to a decline in incomes across the board and stubbornly high unemployment.
Unfortunately, the reality is more dire. This technology shift also made it possible to shift service jobs around the world too. As a result, this is a recipe for an inevitable collapse in US and EU incomes (the effects of which are already being seen huge government deficits due to low tax receipts), a knock on global depression, and political chaos.
What are the solutions? Stiglitz would have you believe it is more government spending. An effort to build infrastructure and do more training. I don’t believe that will work. Most governments are already near bankruptcy and this crisis is global and not national.
bank assets as a % of GDP:
Luxembourg 2461%
Ireland 872%
Switzerland 723%
the US was 80% at the time of the bailout in 2008. this is going to end well for europe.
Why are there so many well-padded books out there that really ought to be nice, long articles? The subject came up over dinner the other night, and having just wrapped up a nice, long article, I think I may have an answer to this question: journalists, like many non-economists, do not properly understand sunk costs.
essentially all non-fiction books are still produced with the following characteristics:
combine those things and you can get the gist of these books by using the free samples. enjoy!
transaction costs need to sink to 0 to really grease the economy. and destroying part of the financial industry is just an added social good.
Business Insider interviews Ben Milne, founder of an online payment system called Dwolla that charges a flat fee of $0.25 per transaction (unlike Paypal, Square, credit card companies, which charge a %).
this claim seems counter-intuitive to me. what am i missing?
The merger between AT&T; and T-Mobile USA would create more than 100K jobs in the United States, a major telecommunications union said today, again putting its weight behind the deal.
The work revealed a core of 1318 companies with interlocking ownerships. Each of the 1318 had ties to 2 or more other companies, and on average they were connected to 20. What’s more, although they represented 20% of global operating revenues, the 1318 appeared to collectively own through their shares the majority of the world’s large blue chip and manufacturing firms – the “real” economy – representing a further 60% of global revenues.
tl;dr: only one company in the top 50 actually produces anything at all (china petroleum), the rest is money launderers.
The paradox is this. A job seeker is looking for a well-defined job. But the trend seems to be that if a job can be defined, it can be automated or outsourced. The marginal product of people who need well-defined jobs is declining. The marginal product of people who can thrive in less structured environments is increasing.
See also zero marginal product workers what fraction of the economy is pretend work, appearing to be busy?
2013-08-20: On the predicament of ZMP (0 marginal product) workers:
Huge swathes of people spend their entire working lives performing tasks they secretly believe do not really need to be performed. The moral and spiritual damage that comes from this situation is profound. It is a scar across our collective soul.
2014-11-21: When the revolution comes, this will be very useful to smoke out people.
2018-06-07: A New Yorker take
Bullshit, like paper waste, accumulates in offices with the inevitability of February snow. Justification reports: What are these? Nobody knows. And yet they pile up around you, Xerox-warmed, to be not-read. Best-practices documents? Anybody’s guess, really, including their authors’. Some people thought that digitization would banish this nonsense. Those people were wrong. Now, all day, you get e-mails about “consumer intimacy” (oh, boy); “all hands” (whose hands?); and the new expense-reporting software, which requires that all receipts be mounted on paper, scanned, and uploaded to a server that rejects them, since you failed to pre-file the crucial post-travel form. If you’re lucky, bullshit of this genre consumes only a few hours of your normal workweek. If you’re among the millions of less fortunate Americans, it is the basis of your entire career.
2018-09-20: Scott Alexander looks into the topic
I write a note saying: To whom it may concern: I am a psychiatrist treating Mr. Smith. He tells me that he has chronic back pain (“lumbago”), and asks to be allowed to bring in his own chair to work. Yours, Dr. Alexander It’s too soon to have a good sample size. But it seems to usually work. I think it works because there is nobody at Mr. Smith’s workplace – maybe nobody in the entire world – who’s really invested in preventing Mr. Smith from bringing a chair into work. Someone wrote up a procedure for employees using special chairs, so that they’re not the sort of cowboys who make decisions without procedures. Someone else feels like they have to enforce it, so that they’re not the sort of rebel who flouts procedures. But nobody cares.
2021-03-06: It’s surprising that it took so long to automate extremely low value work like copying & pasting, and somehow requiring a college degree:
they do the dull-but-critical tasks that someone named Phil in Accounting used to do: reconciling bank statements, approving expense reports, reviewing tax forms. […] She’d known that her job was straightforward and repetitive, making it low-hanging fruit for automation. The experience was a wake-up call. She had a college degree and was early in her career.
2023-01-17: The race between bullshit jobs and automation
We escaped the original Malthusian trap with the Industrial Revolution, expanding capacity faster than the population could grow. A sufficient lead altered underlying conditions to the point where we should worry more about declining population than rising population in most places.
Consider the same scenario for a potential AI Revolution via GPT-4.
Presume GPT-4 allows partial or complete automation of a large percentage of existing bullshit jobs. What happens?
My model says this depends on the speed of adaptation.
The government has a total operating cash balance of $74b, less than Apple’s own war chest of $76b.
the license raj comes to the us
In the 1950s, when organization man ruled, fewer than 5% of American workers needed licenses. Today, after 30 years of deregulation, the figure is almost 30%. Add to that people who are preparing to obtain a license or whose jobs involve some form of certification and the share is 38%.