Wednesday , December 18 2024
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David F. Ruccio — Measure for measure*

Summary:
Everyone is better off in absolute terms (growth, trickle down) but distribution is becoming more asymmetrical, with growth income and wealth occurring largely at the top tier AKA "the 1%." Marginalism and "just deserts" don't explain it. The issue is not only asymmetrical income and wealth but also asymmetrical power rather than "merit." Taking capitalism is the economic system that favors capital (ownership and control) over labor (workers, i.e., people) and land (the environment), the balance of power is skewed heavily toward ownership and control. The question is why, and the answer is institutional arrangements that are not only economic but also social (class structure, privilege) and political (distribution of power). This leads to many further questions that conventional

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Everyone is better off in absolute terms (growth, trickle down) but distribution is becoming more asymmetrical, with growth income and wealth occurring largely at the top tier AKA "the 1%."

Marginalism and "just deserts" don't explain it. The issue is not only asymmetrical income and wealth but also asymmetrical power rather than "merit."

Taking capitalism is the economic system that favors capital (ownership and control) over labor (workers, i.e., people) and land (the environment), the balance of power is skewed heavily toward ownership and control. The question is why, and the answer is institutional arrangements that are not only economic but also social (class structure, privilege) and political (distribution of power).

This leads to many further questions that conventional economics avoids owing  to methodological assumptions that are normative choices. A rethink in terms of the big picture is needed?

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Measure for measure*
David F. Ruccio | Professor of Economics, University of Notre Dame
Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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