Sunday 28 September 2014

The Looming Death of Homo Economicus by Dennis J. Snower - Project Syndicate

KIEL – The world seems to be on the verge of another "great transformation," with changes far more profound than news-grabbing economic or geopolitical headlines about Asia's economic rise or the fires in the Middle East. The coming changes will fundamentally redefine the nature of our economic interactions – and the social dynamics that underlie them.

This is a transformation on the scale of the shift, more than 8,000 years ago, from nomadic hunter-gatherer societies to settled agricultural ones, which eventually led to the rise of cities. A similar transformation occurred in Europe in the tenth century, with the emergence of guilds – associations of skilled workers who controlled the practice of their craft in a particular town – which paved the way for the Industrial Revolution.


Read more at http://www.project-syndicate.org/commentary/dennis-j--snower-insists-that-humans--economic-self-interest-cannot-be-separated-from-their-capacity-for-care



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Selfishness for All? by Simon Zadek - Project Syndicate

"AMSTERDAM – United Nations Secretary-General Ban Ki-moon has just hosted a special summit in New York intended to spur action on climate change. Ban's message was simple: Beyond the long-term shared benefits of such action, countries and businesses would benefit in the short term. In other words, there are no losers in the fight to mitigate climate change and its consequences.

For some, the "win-win" character of climate action seems finally to be sinking in. At the UN summit, hundreds of political and business leaders from around the world outlined commitments that constitute practical steps toward enhancing their countries' economic prospects, improving their citizens' quality of life, and benefiting firms' bottom lines."


https://www.project-syndicate.org/commentary/simon-zadek-explores-the-potential-of-self-interest-to-spur-action-on-climate-change



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Europe’s Austerity Zombies by Joseph E. Stiglitz - Project Syndicate

"NEW YORK – "If the facts don't fit the theory, change the theory," goes the old adage. But too often it is easier to keep the theory and change the facts – or so German Chancellor Angela Merkel and other pro-austerity European leaders appear to believe. Though facts keep staring them in the face, they continue to deny reality.

Austerity has failed. But its defenders are willing to claim victory on the basis of the weakest possible evidence: the economy is no longer collapsing, so austerity must be working! But if that is the benchmark, we could say that jumping off a cliff is the best way to get down from a mountain; after all, the descent has been stopped."


Read more at http://www.project-syndicate.org/commentary/joseph-e--stiglitz-wonders-why-eu-leaders-are-nursing-a-dead-theory



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(What’s Left of) Our Economy: A Trade Theory Mystery | The Wall Street Examiner

"Proponents of the theory – who include nearly all economists for centuries, living and dead, along with numerous fakeonomists from think tanks and elsewhere and most major newspaper editorialists and media pundits – insist that the freest possible global competition, fostered by the freest possible trade flows, will help produce the greatest possible global efficiencies and the best possible array of products and services. Here's my starting question: Why does it have to be global competition? Why can't it be purely domestic competition, especially in the case of the United States?"



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