Real-World Economics Review

from Blair Fix Political economist Chris Mouré has a new paper out in the Review of Capital as Power. It’s called ‘Soft-wars’, and it is a fascinating case study of the behavior of big tech. The story starts in 2011, when Microsoft led a $4.5 billion consortium purchase of Nortel and Novel. Later than year, Google responded by buying Motorola for $12.9 billion. The funny thing is that Google then proceeded to sell off what it had just bought. By 2014, almost nothing was left of...

USU College of Science Fall Convocation was held virtually on Sept 30, 2021. Fall Convocation donor and alumni speaker Dr. Willy Lensch ’91 benefited from a scholarship, when he was an undergrad. In his brief talk, Willy, who recently left a position as strategist for Harvard Medical School and now serves as an associate provost for Harvard’s research office, describes challenges of the past year in coordinating a multi-institution pandemic response effort. He likens those...

from Lars Syll Back in 1992, New Jersey raised the minimum wage by 18 per cent while its neighbour state, Pennsylvania, left its minimum wage unchanged. Unemployment in New Jersey should — according to mainstream economic theory’s competitive model — have increased relative to Pennsylvania. However, when ‘Nobel prize’ winning economist David Card and his colleague Alan Krueger gathered information on fast food restaurants in the two states to check what employment effects the minimum wage...

Prosecutors in Mexico seeking arrest warrants for more than 30 scientists “The World Economic Association –with its 15,000 members-is committed to the development, promotion and diffusion of economic research and knowledge; advocating plurality of thought, method and philosophy. We are convinced that these activities can only be carried out in a context of freedom, exempt of intimidation and harassment. In this spirit we voice our apprehension for  the 31 Mexican scientists and scientific...

from Dean Baker That’s the question millions are asking, even if economic reporters are not. The classic story of a wage price spiral is that workers demand higher pay, employers are then forced to pass on higher wages in higher prices, which then leads workers to demand higher pay, repeat. We are seeing many stories telling us that this is the world we now face. A big problem with that story is the profit share of GDP has actually risen sharply in the last two quarters from already high...

from C. P. Chandrasekhar and Jayati Ghosh It is by now well known that three decades of financial globalization have led to massive increases in income and asset inequalities in the United States and Europe. But in the developing world, the effects of financial globalization have been even worse: along with new inequality and instability, the creation of “emerging markets” to support investment in poor countries has undermined development projects and created a relationship in which poor...

from Shimshon Bichler and Jonathan Nitzan Introduction In 2012, we published a paper in the Journal of Critical Globalization Studies titled ‘Imperialism and Financialism: The Story of a Nexus’. Our topic was the chameleon-like Marxist notion of imperialism and how its different theories related to finance. Here is the article’s summary: Over the past century, the nexus of imperialism and financialism has become a major axis of Marxist theory and praxis. Many Marxists consider this...

from Terry Hathaway Contemporary political and economic discourse sees capitalist systems characterised as market economies, and references to both The Market and markets are ubiquitous; markets are seemingly everywhere. This situation is distinctly odd, as while economic relations have been more and more characterised as “markets”, many economies have seen both the withering away of traditional marketplaces and the concurrent growth of hierarchically ordered non-market economic...

from C. P. Chandrasekhar China’s Evergrande group, identified as the world’s most indebted property company with accumulated liabilities in excess of $300 billion, missed an interest payment instalment due on September 23, 2021 on bonds borrowed through US dollar bond markets. Though the company enjoys a 30-day grace period to pay up and avoid being in default, the absence as yet of any clarification on the missed instalment has increased uncertainty. Markets seem sceptical that the firm...

from Terry Hathaway – http://www.paecon.net/PAEReview/issue97/Hathaway97.pdf Watson (2018) shows that within neoclassical economics the shifting definition of the market has led to three conceptualisations of the market that are rolled into one another; the descriptive concept, the analytical concept, and the formalist concept. The descriptive concept can be seen in Smith where the idea is of “the market literally as a marketplace, with all the hustle and bustle of people going about...