The drama is more complex than the economics. Our summary: Read the rest of this entry »
Bad news makes a better headline, but Bill Watson reminds us that things have been getting steadily better for 200 years or so:
Between 1820 and 2010, GDP per capita increased 17-fold in Western Europe, 23-fold in the “Western offshoots” (Canada, the US, and Australia), 17-fold in East Asia, 12-fold in Latin American, 10-fold in the Middle East, and 13-fold for the world on average. … If you don’t like GDP, how about the dramatic increase in life expectancy? From 33.4 years in Western Europe in the 1830s to 79.7 years in the twenty-first century. For the world as a whole, life expectancy is two and a half times higher now than it was in the 1880s.
So if you don’t think life is good, keep it mind it used to be a lot worse!
The quotation comes from a book — The Inequality Trap — due out in the fall. The numbers come from the OECD. My favorite version of the same thing is Gapminder World — click on the link and press play.
Kim Ruhl passes on this evocative headline: “As currency dies, Zimbabweans will get $5 for 175 quadrillion local dollars.”
For lovers of irony, here’s a good one. It seems LA, which is considering an increase in the minimum wage to $15, is now being pressed to offer an exemption — for employers of union workers. More here and here. Labor leaders, of course, have been “among the strongest supporters” of the policy, ostensibly because it would help poor people. As we noted in class, there’s a better way to help poor people: give them money. That’s more or less what the Earned Income Tax Credit does.
You may have noticed that Swiss authorities arrested a number of people this morning in Zurich as part of a US/Swiss probe into corruption at FIFA, soccer’s governing body. The news isn’t the corruption — that’s been common knowledge for years — but the fact that it’s being investigated. We will surely find out more in the coming weeks, but the betting line right now is that FIFA’s head, Sepp Blatter, will be reelected on Friday. His public relations team released this wonderful statement earlier today:
FIFA welcomes actions that can help contribute to rooting out any wrongdoing in football. … We are pleased to see that the investigation is being energetically pursued for the good of football and believe that it will help to reinforce measures that FIFA has already taken.
Bloomberg has a great piece on Brazil’s massive corruption scandal [lightly edited for continuity]:
Prosecutors have named 16 companies that allegedly formed a cartel to fix [government-owned oil company] Petrobras contracts between 2006 and 2014. The list includes some of Brazil’s largest construction and engineering firms. [They] say the builders got away with it by paying kickbacks, usually 3 percent, on every contract. Petrobras estimates that the graft added up to at least 6.2 billion reais, much of which, prosecutors say, was funneled to [political] parties.
The authors argue that corruption has hurt Brazil’s economy, which is going through its “worst four-year slump in twenty-five years,” but they trace the system back to the 1960s:
My attorney points out: Egypt clears a former leader (Mubarak) who stole $70 billion, but sentences to death its first freely elected president (Morsi). I’m not saying he was a good president, but still.
Linette Lopez put it this way in Business Insider:
After suspending Citibank’s access to Argentine capital markets and sacking the bank’s CEO in the country, Argentine authorities will perform an “integral inspection” [on the bank]. Read the rest of this entry »
From the ancient history of NYU, the story of distinguished anthropologist John Buettner-Janusch:
He served as chairman of the New York University anthropology department before 1980, when he was sent to prison for turning his laboratory into a drug manufacturing operation. After his release, he attempted to poison the judge who presided over his first trial and was sent to prison a second time.
Wow, hard to beat that one.