New Thinking in the News Archives

New Thinking in the News

These are the latest reflections from new thinkers around the on what should have been done already, what must be done next, and what the near future may look like:

1 | New Study Reveals Stark Picture of Bay Area Poverty Leading up to Covid-19 Pandemic, in Tipping Point Community, by john a. powell.

“Known for its progressive politics and rich diversity, the San Francisco Bay Area is no exception to patterns of systemic racial and economic inequality found across the nation,” said john a. powell, Director of the Othering & Belonging Institute at UC Berkeley. “In fact, the Bay Area’s hot housing market and booming economy may exacerbate these trends, making it harder for low-skilled workers to find affordable housing and pay their bills. This study, drawing upon an original survey of Bay Area residents and census data, gives us a vivid portrait of poverty and inequality, and what we should do about it, even before the COVID-19 pandemic occurred. Now this research is more urgent than ever.”

2 |30 million Americans are unemployed. Here’s how to employ them in Vox, by Pavlina Tcherneva

“But the program will actually stabilize these fluctuations. There are reasons unemployment feeds on itself. If you have this kind of preventative program, where people trickle into other employment rather than unemployment, their spending patterns are stabilized, so you have smaller fluctuations in the private sector. We see this in countries that have active labor-market policies, that do a lot more public employment than we do.”

3 | Messages from “Fiscal Space” in Project Syndicate by Jayati Ghosh

“Well before the pandemic arrived, it was evident that the financialization of the global economy was fueling massive levels of inequality and unnecessary economic volatility. In this unprecedented crisis, the need to rein it in has literally become a matter of life or death.”

4 | The ‘frugal four’ should save the European project in Social Europe by Peter Bofinger

“It is therefore crucial that the frugal four [Austria, Denmark, Sweden and the Netherlands] abandon their opposition to a joint financing facility at EU level. Only in this way will the European project be able to survive and Europe respond to this terrible crisis in a manner as effective as in the United States. For, as the US economist Paul Krugman has put it, paraphrasing Franklin Roosevelt, ‘The only fiscal thing to fear is deficit fear itself.’”

5 | Making the Best of a Post-Pandemic World, in Project Syndicate, by Dani Rodrik

“It is possible to envisage a more sensible, less intrusive model of economic globalization that focuses on areas where international cooperation truly pays off, including global public health, international environmental agreements, global tax havens, and other areas susceptible to beggar-thy-neighbor policies. Insofar as the world economy was already on a fragile, unsustainable path, COVID-19 clarifies the challenges we face and the decisions we must make. In each of these areas, policymakers have choices. Better and worse outcomes are possible. The fate of the world economy hinges not on what the virus does, but on how we choose to respond.”

6 | Two Rounds of Stimulus Were Supposed to Protect Jobs — Instead We Have Record Unemployment with Tom Ferguson in the Institute for Public Accuracy

“We all know that the U.S. response to COVID-19 has lagged far behind other countries. But now a real trap is closing. The public premise of the government stimulus programs was that they would be needed only for a short period and channeling aid to businesses would enable them to retain workers on their payrolls. So vast sums were handed out while the Federal Reserve intervened massively in financial markets. But now unemployment is soaring, in a country whose health insurance system is keyed to the workplace. Small businesses are collapsing and plainly never got much aid. Workers are also dropping out of the workforce in enormous numbers while a major health and safety crisis rages. Government policy has got to address these issues before it’s too late. It can’t simply grant blanket immunity to businesses for the sake of a hasty, premature reopening. A major re-calibration of policy is in order.”

Every week, we share a few noteworthy articles that showcase the work of new economic thinkers around the world. Subscribe to receive these shortlists directly to your email inbox.

New Thinking in the News

How to respond to rising sovereign debt? What do food shortages look like now? How can we guard against data authoritarianism? This and more in this week’s collection of #NewThinkingintheNews

1 | Hunger amid plenty: how to reduce the impact of COVID-19 on the world’s most vulnerable people in Reuters, by Mari Pangestu

“It’s important to not only ensure people access basic food supplies, but also that they have money to purchase them. On average, food accounts for up to 60 percent of household expenditures in low income countries and 40 percent in emerging and development market economies. Economic recession and loss of livelihoods quickly erode the food security of millions of people – especially if food prices increase. The World Bank estimates that 40 to 60 million more people will be living in extreme poverty in coming months, depending on the scale of the economic shock.”

2 | New Laws for the Fissured Workplace in the American Prospect, by David Weil

“After this acute crisis passes, we must confront the reality that our existing workplace policies no longer account for the millions of workers with jobs (often multiple jobs) that do not fit the narrow definitions of employment embodied in federal and state laws. Today’s workforce—and those displaced from it—requires core protections linked to work, not just employment, in areas like assuring a safe and healthy workplace, receiving a minimum wage, and being protected against retaliation from exercising rights granted by our laws. This crisis also reveals the long-term need for wide access for all workers to safety-net protections like unemployment insurance and workers’ compensation as well as to comprehensive paid-leave policies that protect workers, their households, and the wider community.

3 | How to Develop a COVID-19 Vaccine for All in Project Syndicate by Mariana Mazzucato

“To succeed, the entire vaccine-innovation process, from R&D to access, must be governed by clear and transparent rules of engagement based on public-interest goals and metrics. That, in turn, will require a clear alignment between global and national public interests… But today’s proprietary science does not follow that model. Instead, it promotes secretive competition, prioritizes regulatory approval in wealthy countries over wide availability and global public-health impact, and erects barriers to technological diffusion. And, although voluntary IP pools like the one that Costa Rica has proposed to the World Health Organization can be helpful, they risk being ineffective as long as private, for-profit companies are allowed to retain control over critical technologies and data – even when these were generated with public investments.”

4 | Preventing Data Authoritarianism in Project Syndicate by Katharina Pistor

“While digital technologies once promised a new era of emancipatory politics and socio-economic inclusion, things have not turned out quite as planned. Governments and a few powerful tech firms, operating on the false pretense that data is a resource just like oil and gold, have instead built an unprecedented new regime of social control.”

5 | The Necessity of a Global Debt Standstill that Works in Project Syndicate, by Beatrice Weder di Mauro and Patrick Bolton

“Without private-sector participation, any official debt relief for middle-income countries may simply be used to service their private-sector debt. It would be pointless for the official sector to lighten poorer countries’ debt burdens if this results only in a transfer to commercial creditors… All private creditors need to participate on an equal basis in any standstill on debt service, both as a matter of fundamental fairness and to ensure adequate funding for emerging economies. And their participation cannot be purely voluntary. If it is, relief provided by participating private creditors will simply subsidize the non-participants.”

Every week, we share a few noteworthy articles that showcase the work of new economic thinkers around the world. Subscribe to receive these shortlists directly to your email inbox.

New Thinking in the News

Why women are crucial to our coronavirus response, how patents impede our progress towards resolving the pandemic, and what an erosion of trust means for our society. That and more in this week’s selection of #NewThinkintheNews.

1 | America’s coronavirus response must center on women. And the Black Plague helps show how in NBC by Lynn Parramore

“Feminist scholars have long pointed out that economists, political scientists and historians tend to think of the market and the state as the key spheres of reality — while regarding the home and the family as afterthoughts. But as the changes in medieval Europe in the wake of a terrible pandemic illustrate, when women are freed from burdens in the home and gain opportunities to participate fully in all aspects of life and work, the future grows brighter for everyone.”

2 | Patents vs. the Pandemic in Project Syndicate, co-authored by Arjun Jayadev and Joseph Stiglitz

“In responding to the pandemic, the global scientific community has shown a remarkable willingness to share knowledge of potential treatments, coordinate clinical trials, develop new models transparently, and publish findings immediately. In this new climate of cooperation, it is easy to forget that commercial pharmaceutical companies have for decades been privatizing and locking up the knowledge commons by extending control over life-saving drugs through unwarranted, frivolous, or secondary patents, and by lobbying against the approval and production of generics. … It’s time for a new approach. Academics and policymakers have already come forward with many promising proposals for generating socially useful – rather than merely profitable – pharmaceutical innovation. There has never been a better time to start putting these ideas into practice.”

3 | COVID-19 and the Trust Deficit, in Project Syndicate by Mike Spence

“The problem, as we warned back in 2012, is that we are living in an era of policymaking paralysis. “Government, business, financial, and academic elites are not trusted,” we wrote. “Lack of trust in elites is probably healthy at some level, but numerous polls indicate that it is in rapid decline, which surely increases citizens’ reluctance to delegate authority to navigate an uncertain global economic environment.” Change those last words to “navigate a highly chaotic public-health and economic shock,” and the statement loses none of its relevance today.

4 | Condivergence: Thinking fast and acting slow in the pandemic war in The Edge Malaysia by Andrew Sheng

“There will be no return to the old normal. Equilibrium was going anyway with the trade war. Technology was already changing the supply chains and business models. The pandemic only destroyed the old offline big mall business model faster as everyone shifts to online business. The only problem is that most policymakers do not have the data, or the understanding as to how, to make that transition without huge costs to jobs and businesses, at least in the short run, other than to run larger deficits…. The real winners will be those who learn, adapt and innovate so that all of us emerge stronger.”

5 | The EU should issue perpetual bonds, in Project Syndicate, by George Soros

“The EU is facing a once-in-a-lifetime war against a virus that is threatening not only people’s lives, but also the very survival of the Union. If member states start protecting their national borders against even their fellow EU members, this would destroy the principle of solidarity on which the Union is built… Instead, Europe needs to resort to extraordinary measures to deal with an extraordinary situation that is hitting all of the EU’s members. This can be done without fear of setting a precedent that could justify issuing common EU debt once normalcy has been restored. Issuing bonds that carried the full faith and credit of the EU would provide a political endorsement of what the European Central Bank has already done: removed practically all the restrictions on its bond purchasing program.”

Every week, we share a few noteworthy articles that showcase the work of new economic thinkers around the world. Subscribe to receive these shortlists directly to your email inbox.

New Thinking in the News

Can countries safely print money to combat the crisis? What ethical principles can we rely on in this pandemic? What policy does Soros think the US should implement right away? How does an understanding of gender theory improve our approach to doing economics? This week’s recommended read tackle these themes, and more. Enjoy.

1 | Finding the ‘Common Good’ in a Pandemic in the New York Times, with Michael Sandel

“Think about the two emblematic slogans of the pandemic: “social distancing” and “we’re all in this together.” In ordinary times, these slogans point to competing for ethical principles — setting ourselves apart from one another, and pulling together. As a response to the pandemic, we need both. We need to separate ourselves physically from our friends and co-workers in order to protect everyone, to prevent the virus from spreading. But ethically, these slogans highlight two different approaches to the common good: going it alone, with each of us fending for ourselves, versus hanging together, seeking solidarity. In a highly individualistic society like ours, we don’t do solidarity very well, except in moments of crisis, such as wartime.”

2 | Can We Print Infinite Money to Pause the Economy During the Coronavirus Pandemic? in Vice, featuring David Weil

“What are the consequences of just giving everyone enough cash to survive the next few months? […] It’s complicated.”

3 | With working Americans’ survival at stake, the US is bailing out the richest, in the Guardian, by Morris Pearl and Bill Lazonick

“Amid a humanitarian crisis compounded by mass layoffs and collapsing economic activity, the last course our legislators should be following is the one they appear to be on right now: bailing out shareholders and executives who, while enriching themselves, spent the past decade pushing business corporations to the edge of insolvency.”

4 | George Soros: Guarantee paychecks for all workers displaced by coronavirus to save the economy in the LA Times by George Soros and Eric Beinhocker

“History has shown the strategy works. Thanks to Germany’s “Kurzarbeit” program, unemployment there actually fell from 7.9% to 7% during the Great Recession, while average unemployment in other major developed economies rose by 3%. As a result, the German economy recovered more quickly than those of many other countries.”

5 | The Human-Capital Costs of the Crisis, in Project Syndicate, by Barry Eichengreen

“Unemployment and hardship can also lead to demoralization, depression, and other psychological traumas, lowering affected individuals’ productivity and attractiveness to employers. We saw this in the 1930s, not just in declining rates of labor force participation but also in rising rates of suicide and falling rates of marriage. Here, too, one worries especially about the US, given its relatively limited safety net, its opioid crisis, and its “deaths of despair.”

6 | Ecological and Feminist Economics, an interview with Julie Nelson in Real World Economics Review

“…the mainstream discipline of economics relies on a deeply gendered belief about what makes for good science. Economists like to think of economic life as confined to the market, driven by self-interest and competition, rational and controllable, and intrinsically governed by mathematics and physics-like “laws” not because the economy is intrinsically that way but because these ways of seeing it are all associated with masculinity and toughness. What about production in the home? Care for others and the environment? Human emotions, in the face of a future that is fundamentally unknowable? Ways of understanding that require hands-on investigation and broader sorts of reasoning? Acknowledging these things is, by comparison, seen as womanly and weak. And so those parts of reality and those parts of good science – which I define as open-minded and systematic investigation – were banished.”

Every week, we share a few noteworthy articles that showcase the work of new economic thinkers around the world. Subscribe to receive these shortlists directly to your email inbox.

New Thinking in the News

This week’s recommended reads illuminate our discussions on the COVID19 crisis, the need for a global response to the economic crisis, and the fundamental questions of capitalism:

1 | How Private-Equity Firms Squeeze Hospital Patients for Profits in the New Yorker, featuring work by Eileen Appelbaum & Rosemary Batt

“Symptoms of the disease can come on quickly, sending patients to the E.R. without much warning. These, Appelbaum warned, are precisely the conditions under which surprise medical billing happens most frequently. And, with so many people flooding hospitals, it seemed only a matter of time before billing horror stories began to appear.”

2 | Solidarity Economics—for the Coronavirus Crisis and Beyond in the American Prospect, by Chris Benner and Manuel Pastor

“We are facing an immediate need to think long-term. In the same way that we need to flatten the contagion curve by spreading out the impact of the coronavirus, we also need to flatten the economic curve, linking short-term interventions with longer-term programs that provide security for families and community, strengthen connections between people and places, and grow employment and the economy.”

3 | Internationalizing the Crisis, in Project Syndicate, in by Joseph Stiglitz

“In the world’s advanced economies, compassion should be sufficient motivation to support a multilateral response. But global action is also a matter of self-interest. As long as the pandemic is still raging anywhere, it will pose a threat – both epidemiological and economic – everywhere.”

4 | Will COVID-19 Remake the World? in Project Syndicate by Dani Rodrik

“In short, COVID-19 may well not alter – much less reverse – tendencies evident before the crisis. Neoliberalism will continue its slow death. Populist autocrats will become even more authoritarian. Hyper-globalization will remain on the defensive as nation-states reclaim policy space. China and the US will continue on their collision course. And the battle within nation-states among oligarchs, authoritarian populists, and liberal internationalists will intensify, while the left struggles to devise a program that appeals to a majority of voters.”

5 | The Fundamental Questions About Capitalism Seem to be Coming Back in Jacobin, featuring Anwar Shaik

“I started off as an aeronautical engineer: you need to understand that you’re part of a big system, and you also need to understand how it works, if you’re going to operate within that system (and perhaps change it). That goes against the logic of orthodox economics, where you start from the individual elements and try to build an understanding from there.”

Every week, we share a few noteworthy articles that showcase the work of new economic thinkers around the world. Subscribe to receive these shortlists directly to your email inbox.

New Thinking in the News

This week’s recommended reads illuminate our discussions on the COVID19 crisis, its economic impact, and the quality of governments’ policy responses:

1 | The Race Between Economics and COVID19 in Project Syndicate, by Mohamed El-Erian

“For years, the economics profession has suffered from a stubborn reluctance to adopt a more multidisciplinary approach. But now that the COVID-19 pandemic is transforming economic life the world over, the profession has no choice but to leave its comfort zone.”

2 | Hospital Bailouts Begin—for Those Owned by Private Equity Firms in the American Prospect, by Eileen Appelbaum & Rosemary Batt

“After compelling hospitals to take on huge piles of debt through leveraged buyouts, private equity firms are poised to line up for taxpayer bailouts.”

3 | Why the Largest Stimulus in History Still Is Not Enough in Barron’s, by Roman Frydman

“As unreliable a guide to economic performance as many consider the stock market to be, this time the market has it right. It is obvious to investors that the problems we face stem from the public-health crisis—and cannot be cured by the “stimulus” package.”

4 | Economic numbers don’t matter right now. Government must help Americans get by in the Guardian by James K. Galbraith

“The economy cannot use stimulus when there is nothing to buy!”

5 | Why Coronavirus Could Hit Rural Areas Harder via Syracuse University, by Sharon Monnat.

“On the one hand, rural parts of the U.S. may be comparatively better off than urban places due to lower population density in rural areas. Lower population density reduces opportunities for virus spread. On the other hand, there are several features of rural populations and places that increase their risk of coronavirus-related mortality and other long-term health impacts.”

Every week, we share a few noteworthy articles that showcase the work of new economic thinkers around the world. Subscribe to receive these shortlists directly to your email inbox.