• I'm the real-life Gordon Gekko and I support Bernie Sanders | Asher Edelman
• Thomas Piketty’s “Capital”, summarised in four paragraphs
• Milton Friedman, Unperson

Economics

by hugo - Nov 30th, 2015

"Remarkably, today the derivatives positions held by the large banks approach 10 times those of 2007-2008. In four banks alone, they exceed the GDP of the entire world. This is the interesting consequence when unchecked risk management rests in bankers’ hands. When Clinton repealed Glass-Steagall, it was the culmination of the largest ever lobbying effort by the banking community to that date, $300m spent to convince Congress that Clinton, aided by Robert Rubin (US treasurer, previously with Goldman Sachs) and Alan Greenspan, a Milton Friedman-style supply-side economist, that the restraints on speculation should be removed. The banking community’s gratitude was and is unending. Who can blame them?"

I'm the real-life Gordon Gekko and I support Bernie Sanders | Asher Edelman
The potential for a depression looms on the horizon. The Vermont senator is the only candidate who can stop banks from spiraling out of control again
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"From this history, Mr Piketty derives a grand theory of capital and inequality. As a general rule wealth grows faster than economic output, he explains, a concept he captures in the expression r > g (where r is the rate of return to wealth and g is the economic growth rate). Other things being equal, faster economic growth will diminish the importance of wealth in a society, whereas slower growth will increase it (and demographic change that slows global growth will make capital more dominant). But there are no natural forces pushing against the steady concentration of wealth. Only a burst of rapid growth (from technological progress or rising population) or government intervention can be counted on to keep economies from returning to the “patrimonial capitalism” that worried Karl Marx. Mr Piketty closes the book by recommending that governments step in now, by adopting a global tax on wealth, to prevent soaring inequality contributing to economic or political instability down the road."

Thomas Piketty’s “Capital”, summarised in four paragraphs
A very brief summary of "Capital in the Twenty-First Century"
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"... I’d argue that the experience of the past 15 years, first in Japan and now across the Western world, shows that Keynes was right and Friedman was wrong about the ability of unaided monetary policy to fight depressions. The truth is that we need a more activist government than Friedman was willing to countenance."

Milton Friedman, Unperson
The curious case of a disappearing icon.
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