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Academic Insights for the Thinking World
Following the Great Depression, macroeconomics was dominated by Keynesian ideas. But in the 1960s and 1970s, western economies experienced stagflation; a period of high inflation and high unemployment at the same time. Stagflation was deeply subversive of Keynesian economics because according to the textbook interpretation of Keynes’ ideas, an economy can experience high inflation or high unemployment; but not both.
Populist angst and anger is running through the United States presidential campaign, but also through the Brexit debates, directed at the political establishment, and also at globalization (with the European Union standing in for the latter in the UK context). This anger has taken policy elites by surprise, throwing wrenches into the works of carefully planned political campaigns by mainstream Republican, Democratic, Conservative, and Labour parties on either side of the Atlantic.
When the heads of European governments signed the Treaty of Maastricht in 1992, they laid the ground for Europe’s economic and monetary union (EMU) and, eventually, the introduction of the euro. Far from being merely an economic project, the common currency, so they hoped, would help pave the way towards a shared European identity. Today—almost a quarter century after Maastricht—that goal remains a distant prospect. On the contrary, during the economic crisis, European citizens in many respects seemed to have drifted apart.
The 2008 global economic crisis has been the most severe recession since the Great Depression. Notwithstanding its dramatic effects, cross-country analyses on its heterogeneous impacts and its potential causes are still scarce. By analysing the geography of the 2008 crisis, policy-relevant lessons can be learned on how cities and regions react to economic shocks in order to design adequate responses.
The European Union is undergoing multiple crises. The UK may vote in favour of leaving the Union in June. European Union member states are in deep disagreement on various crucial issues, not only on how to handle the stream of refugees from the Near East, but also on how to combat terrorism, and how to deal with Russia. And, in each election, Eurosceptic parties garner an increasing share of the vote.
What is happiness and how can we promote it? These questions are central to human existence and human flourishing now plays a central role in the assessment of national and global progress. Paul Anand shows why the traditional national income approach is limited as a measure of human wellbeing and demonstrates how the contributors to happiness, wellbeing, and quality of life can be measured and understood across the human life course. The following extract looks at the connection between income and wellbeing.
Forty years ago today (20 November), General Franco, the chief protagonist of nearly half a century of Spanish history, died. ‘Caudillo by the grace of God’, as his coins proclaimed after he won the 1936-39 Civil War, Generalissimo of the armed forces, and head of state and head of government (the latter until 1973), Franco was buried at the colossal mausoleum partly built by political prisoners at the Valle de los Caídos (Valley of the Fallen) in the Guadarrama mountains near Madrid.
Anyone who is even remotely familiar with the crisis in Greece must be aware of its record-high unemployment. From an already elevated value of 8% in 2008, the Greek unemployment rate rocketed to 27% in 2013 and has since remained in that ballpark.
By William Chislett
The Spanish economy roared along like a high-speed train for a decade until it slowed down dramatically in 2008. Only recently has it emerged from a five-year recession. But the jobless rate has tripled to 26% (four times the US level) and will not return to its pre-crisis level for up to a decade. Why is this?
By William Chislett
The good news is that Spain has finally come out of a five-year recession that was triggered by the bursting of its property bubble. The bad news is that the unemployment rate remains stubbornly high at a whopping 26%, double the European Union average.
Stephen Fineman
The growth of zero-hours work contracts has grabbed the headlines recently. The contracts offer no guaranteed work hours and can swing between feast (over work) and famine (literally nil hours). Employees are expected to be available as and when needed; if they refuse (which in principle they can) they risk being labelled as unreliable and overlooked the next time round.
By William Chislett
There is only a glimmer of light in Spain’s long unemployment tunnel after five years of recession. This is because a new economic model has yet to emerge to replace the one excessively based on the property sector, which collapsed with devastating consequences.
By Peter Miles
As every schoolchild knows, never give more than one explanation: rather than uncertainty, it suggests a conscious or unconscious smokescreen. In The Interpretation of Dreams (1899), Sigmund Freud demonstrated as much by reference to a “defence offered by a man who was accused by his neighbour of having returned a kettle in a damaged condition. In the first place, he said, he had returned the kettle undamaged; in the second place it already had holes in it when he borrowed it; and in the third place, he had never borrowed it at all.”
By Julie MacLeavy
In recent years, governments of both the right and left have been involved in debates over the best way to deliver public services. Whereas during the post-war period it was widely accepted that state provisioning of infrastructure, health, education and social services was the best way to ensure the well being of citizens, in the latter decades of the twentieth century the market was claimed to be a better way of delivering public goods and services because it was associated with competition, economic efficiency and consumer choice. Commitment to the market entailed a qualitative shift in welfare provision, whereby welfare was based less on a model in which the state counters the market and more on a model where the state serves the market.
With the new school year approaching, Social Explorer is taking a closer look at education data today and over the years. The most recent available data (from the 2009 American Community Survey) reveal education levels and distinctions among groups, as well as the correlations between educational attainment, income and employment.
The most recent available data (from the 2009 American Community Survey) reveal education levels and distinctions among groups, as well as the correlations between educational attainment, income and employment.
By Mariko Lin Chang
Any day now the Senate will decide whether to raise the retirement age to 69. Proponents argue that raising the retirement age is necessary to save Social Security. Opponents argue that raising the retirement age will disproportionately hurt low-income and minority workers. But this is all irrelevant to many because recent actions by the Senate and current economic realities have already helped to ensure that most people won’t be able to fund their “golden years.”
Take women, for example. Given the Senate’s failure to pass the Equal Paycheck Act, it’s unlikely that the persistently stubborn wage gap will decline on its own, leaving women earning only 77 cents for every dollar earned by men. Assuming that the typical person works about 40 years