Real-World Economics Review

from Mark Weisbrot Labor Day is a good time to reflect upon how American workers have been doing — especially the majority who have been left behind for most of the past 40 years. From 1979 to 2018, the median wage has grown by just 11.6 percent. If we compare this to prior decades, e.g., 1948 to 1979, that increase was 93.2 percent. These two facts tell a big part of the story of a social transformation that is both inexcusable and historically unusual: a high-income country becoming...

I DO NOT OWN THE RIGHTS TO THE MUSIC YOU HEAR IN THIS VIDEO Starting with Praise God due to some copyright issues on the first couple songs!

from Richard Parker and current issue of RWER Let me now try to connect this little synoptic “longue duree” to the present and to the matter before us: neoliberalism and what might succeed it. We live in the early 21st century and the conventional economics we’ve inherited has now arrived at a moment when once-novel Victorian-era ideas seem not just inadequate but irrelevant. A similar moment seemed, to many, to have arrived before, back in the 1930s. But apostles of marginalism such as...

from Lars Syll Submission to observed or experimental data is the golden rule which dominates any scientific discipline. Any theory whatever, if it is not verified by empirical evidence, has no scientific value and should be rejected. Maurice Allais Formalistic deductive ‘Glasperlenspiel’ can be very impressive and seductive. But in the realm of science it ought to be considered of little or no value to simply make claims about models and lose sight of reality. Mainstream economics has...

from Norbert Häring Thales, one of the largest international defense contractors, calls the digital vaccination passport a precursor to universal mobile-digital identity credentials. Thales thus confirms my analysis and my worst fears. Under the headline “How digital ID can help citizens access government services from anywhere,” Kristel Teyras, in charge of the defense contractor Thales’ Digital Identity Services portfolio, writes: “So-called digital ‘vaccination passports’ will play a...

from Jonathan Nitzan and Shimshon Bichler Here we show the after-tax profit and market capitalization of the top 0.01% of U.S.-based corporations, expressed as a % of U.S. GDP. Updated from ‘The Asymtptoes of Power‘.

from Lars Syll The Coin-tossing Problem My friend Ben says that on the first day he got the following sequence of Heads and Tails when tossing a coin: H H H H H H H H H H And on the second day he says that he got the following sequence: H T T H H T T H T H Which report makes you suspicious? Most people yours truly asks this question says the first report looks suspicious. But actually both reports are equally probable! Every time you toss a (fair) coin there is the same probability (50 %)...

from David Ricardo You don’t have to read Marx to understand the lack of power workers have under capitalism. But you do have to read beyond mainstream economists and economic pundits. You might turn, for example, to the business school. Yes, I know, that’s a strange assertion. But let me explain. The usual argument these days is that workers have acquired a lot more power because of the scarcity of labor. When labor is scarce (basically, when the quantity supplied of labor is less than...

from Peter Radford So who is in charge?  Who controls the flow of technology?  Is it us?  Or does the technology now control us? We live in a technology infused world.  Our current civilization sits on a foundation accumulated through the past few centuries and built of machine power.  We cannot separate ourselves from this cumulative support system without regressing to a pre-industrial way of life.  Which is something few of us either want or are equipped to deal with.  We have...

from Lars Syll But these more recent writers like their predecessors were still dealing with a system in which the amount of the factors employed was given and the other relevant facts were known more or less for certain. This does not mean that they were dealing with a system in which change was ruled out, or even one in which the disappointment of expectation was ruled out. But at any given time facts and expectations were assumed to be given in a definite and calculable form; and...