background preloader


Facebook Twitter

Why Are Stock Buybacks So Popular? The philosophy had immediate appeal to the raiders, who used it to give their depredations a fig leaf of legitimacy.

Why Are Stock Buybacks So Popular?

And though the raiders were eventually turned back, the idea of shareholder value proved harder to dispel. To ward off hostile takeovers, boards started firing CEOs who didn’t deliver near-term stock-price gains. The rolling of a few big heads—including General Motors’ Robert Stempel in 1992 and IBM’s John Akers in 1993—drove home the point to CEOs: They had better start thinking about shareholder value. If their conversion to the enemy faith was at first grudging, CEOs soon found a reason to love it.


9/2/20: Ireland: More of a [reformed] Tax Haven than Ever Before?.. With the demise of the last Government and the uncertain waters of Irish politics stirred by the latest election results, let me take a quick glance at the Government's tenure in terms of perhaps the most important international trend that truly threatens to shake the core foundations of the Irish economy: the global drive to severely restrict corporate tax havens.

9/2/20: Ireland: More of a [reformed] Tax Haven than Ever Before?..

In Ireland, thanks to the CSO's hard labours, there is an explicit measure of the role played by the international tax avoiding corporations in the country economy.


Austerity. Trump's economy. Income Inequality's Most Disturbing Side Effect: Homicide. Income inequality can cause all kinds of problems across the economic spectrum—but perhaps the most frightening is homicide.

Income Inequality's Most Disturbing Side Effect: Homicide

Inequality—the gap between a society's richest and poorest—predicts murder rates better than any other variable, according to Martin Daly, a professor emeritus of psychology at McMaster University in Ontario, who has studied this connection for decades. It is more tightly tied to murder than straightforward poverty, for example, or drug abuse. And research conducted for the World Bank finds that both between and within countries, about half the variance in murder rates can be accounted for by looking at the most common measure of inequality, which is known as the Gini coefficient. The murders most associated with inequality, it seems, are driven by a perceived lack of respect. Like most killings, these are mostly perpetrated by males—and in societies with low inequality, there tend to be very few murders.


The IMF Confirms That 'Trickle-Down' Economics Is, Indeed, a Joke. "Trickle-down" economics began as a joke. Seriously. If there’s one person most often associated with the origins of of trickle-down economics, it’s President Ronald Reagan. Few people know, however, that the phrase was actually coined by American humorist Will Rogers, who mocked President Herbert Hoover’s Depression-era recovery efforts, saying that "money was all appropriated for the top in the hopes it would trickle down to the needy. " Rogers’ joke became economic dogma within two generations, thanks in large part to Reagan.

Political economy

Housing. Welfare. Welfare. National Debt. MMT. Trumponomics. Libertarianism. Competition. Health. Populism. Social Democracy. Innovation and enterprise. Tax. Euro. Marco. A Realist Alternative to the Modern Left: US Real GNP Estimates 1869–1879. N.B.

A Realist Alternative to the Modern Left: US Real GNP Estimates 1869–1879

:In the original post, I made an error with Romer’s GNP figures: they were the nominal figures, and have now been corrected with the proper real GNP estimates. --------- A commentator here says that “from 1869 to 1879, the US economy grew at a rate of 6.8% for real GDP and 4.5% for real GDP per capita. The Bailout: By The Actual Numbers. While Democrats paint a glowing picture of the bailout, our Bailout Tracker database tells the whole story.

The Bailout: By The Actual Numbers

A look at the biggest losses and gains stemming from the TARP and Fannie, Freddie bailout. A Times Square news ticker reports that the House passed a government bailout of the financial sector on Oct. 3, 2008. Our database gives you an up-to-date snapshot of where that bailout stands. (Mario Tama/Getty Images)


The Thousand Day Reich: The Double Movement. This is the second in a series of projected posts that try to look at the Trump administration and right wing populism through the lens of different books (the first – on civil society – is here).

The Thousand Day Reich: The Double Movement

The last post was mostly riffing on Ernest Gellner. Today, it’s another middle-European exile intellectual – Karl Polanyi. Redistribution matters. Inequality of market income in Germany, France, Finland is similar to US. After taxes & transfers: much lower. -When is a recession? «#Monetary Sovereignty - Mitchell #Monetary Sovereignty – Mitchell. 1817-1821: U.

-When is a recession? «#Monetary Sovereignty - Mitchell #Monetary Sovereignty – Mitchell

S. Federal Debt reduced 29%. Depression began 1819. 1823-1836: U. S. Federal Debt reduced 99%. You also are familiar with the following graph showing that the last nine recessions began with reductions in federal debt growth and were cured with increases in federal debt growth. Note how debt growth declines before recessions and increases to cure recessions In 1996, the prelude to Free Money, titled “The Ultimate America” predicted future recessions would follow decreases in debt growth.

Six depressions and nine recessions — a total of fifteen out of fifteen times at which federal debt growth declined and the economy fell — is an amazing, almost unheard of, correlation in a complex science like economics. The gold standard and economic growth.


Gov size. Ireland. Society. Poverty. Inequality. Income inequality fuels status anxiety and sexualisation, research shows. Women's appearance enhancement is driven partly by status anxiety and income inequality, according to new research.

Income inequality fuels status anxiety and sexualisation, research shows

Researchers at the universities of Melbourne and New South Wales have examined the relationship between income inequality, status anxiety and sexualisation of women.


The Robots Are Coming, and Sweden Is Fine. The Bailout: By The Actual Numbers. Profits Without Prosperity. Five years after the official end of the Great Recession, corporate profits are high, and the stock market is booming.

Profits Without Prosperity

Yet most Americans are not sharing in the recovery. While the top 0.1% of income recipients—which include most of the highest-ranking corporate executives—reap almost all the income gains, good jobs keep disappearing, and new employment opportunities tend to be insecure and underpaid. Corporate profitability is not translating into widespread economic prosperity. How Government Budget Surpluses Can Cause Economic Depressions. In a sovereign floating fiat money system, in particular under balanced trade or a trade deficit, government deficits are the only way the private sector can accumulate net private saving.

How Government Budget Surpluses Can Cause Economic Depressions

As I’ve argued before, historical evidence shows us that there is a link between recessions and insufficient net private saving. In this blog post economics professor L Randall Wray also presents an interesting historical link between government budget surpluses and ensuing Depressions in the United States. In particular, 6 out of 7 federal government budget surpluses were followed by a depression: Since 1776 there have been exactly seven periods of substantial budget surpluses and significant reduction of the debt. From 1817 to 1821 the national debt fell by 29 percent; from 1823 to 1836 it was eliminated (Jackson’s efforts); from 1852 to 1857 it fell by 59 percent, from 1867 to 1873 by 27 percent, from 1880 to 1893 by more than 50 percent, and from 1920 to 1930 by about a third.

Related Posts: