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Kako Ito

Public insurance and the least well-off | Lane Kenworthy - 6 views

  • Public insurance also boosts the living standards of the poor. It increases their income, and it provides them with services for which they bear relatively little of the cost.
  • Critics charge that public social programs tend to hurt the poor in the long run by reducing employment and economic growth. Are they correct?
  • Does public insurance erode self-reliance? Is a large private safety net as helpful to the least well-off as a large public one? Are universal programs more effective than targeted ones? Are income transfers the key, or are services important too?
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  • Once again we see no indication that public insurance generosity has had a damaging effect
  • Note also that the employment rate increased in nearly all of the countries during this period. On average, it rose by nine percentage points between 1979 and 2013. That’s not what we would expect to see if generous public insurance programs were inducing large numbers of able adults to withdraw from the labor market
  • What we see in the chart is that countries with more generous public insurance programs tend to have less material deprivation.
  • With globalization, the advance of computers and robots, increased pressure from shareholders for short-run profit maximization, union weakening, and other shifts, wages have been under pressure. Couple this with the fact that many people at the low end of the income ladder have labor market disadvantages — disability, family constraint, geographic vulnerability to structural unemployment — and we have a recipe for stagnation in the market incomes of the poor.
  • here’s a good reason for these shifts: government provision offers economies of scale and scope, which reduces the cost of a good or service and thereby makes it available to many people who couldn’t or wouldn’t get it on their own.
  • Government provides more insurance now than it used to. All of us, not just some, are dependent on it. And life for almost everyone is better because of it
  • hese expenditures are encouraged by government tax advantages.22 But they do little to help people on the bottom of the ladder, who often work for employers that don’t provide retirement or health benefits.
  • To make them more affordable, the government claws back some of the benefit by taxing it as though it were regular income. All countries do this, including the United States, but the Nordic countries do it more extensively. Does that hurt their poor? Not much. The tax rates increase with household income, so much of the tax clawback hits middle- and upper-income households.
  • Another difference is that public services such as schooling, childcare, medical care, housing, and transportation are more plentiful and of better quality for the poor in the Nordic countries. Public services reduce deprivation and free up income to be spent on other needs. It’s difficult to measure the impact of services on living standards, but one indirect way is to look at indicators of material deprivation,
  • Targeted transfers are directed (sometimes disproportionately, sometimes exclusively) to those with low incomes and assets, whereas universal transfers are provided to most or all citizens.
  • Targeted programs are more efficient at reducing poverty; each dollar or euro or kroner transferred is more likely to go to the least well-off. Increased targeting therefore could be an effective way to maintain or enhance public insurance in the face of diminished resources.
  • “the more we target benefits to the poor … the less likely we are to reduce poverty and inequality.”
  • Korpi and Palme found that the pattern across eleven affluent nations supported the hypothesis that greater use of targeting in transfers yields less redistribution
  • The hypothesis that targeting in social policy reduces political support and thereby lessens redistributive effort is a sensible one. Yet the experience of the rich countries in recent decades suggests reason to question it. Targeting has drawbacks relative to universalism: more stigma for recipients, lower take-up rates, and possibly less social trust.44 But targeting is less expensive. As pressures to contain government expenditures mount, policy makers may therefore turn to greater use of targeting. That may not be a bad thing.
  • Public insurance programs boost the incomes of the least well-off and improve their material well-being. If such programs are too generous, this benefit could be offset by reduced employment or economic growth, but the comparative evidence suggests that the world’s rich nations haven’t reached or exceeded the tipping point.
  • Spending lots of money on social protection is not in and of itself helpful to the poor. Total social expenditures in the United States are greater than in Denmark and Sweden, because the US has a large private welfare state. But relatively little of America’s private social spending reaches the poor.
  • Public services are an important antipoverty tool. Their benefit doesn’t show up in income data, but they appear to play a key role in reducing material hardship. Services expand the sphere of consumption for which the cost is zero or minimal. And they help to boost the earnings and capabilities of the poor by enhancing human capital, assisting with job search and placement, and facilitating work-family balance.
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    Through this article I have gained a deeper insight in how public expenditures and public goods promote wealth equality in a society. "Public services are an important antipoverty tool."
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    This article really helped me deepen my understanding of redistributing wealth downwards. I never thought about it, but things like social security, affirmative action programs, and public education are actually insurances that attempt to provide everybody with more equality when it comes to living standards as well as basic human rights.
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    Yeah, it is a very common argument to say that social expenditures disincentives workers; interesting analysis on how wealthy countries haven't reached the "tipping point." I am curious to see what happens to labor force participation and employment in the next decades as robots further divorce economic growth from labor supply/demand.
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    Cool theory in regards to "the tipping point". Interesting, and solid criticism of large social expenditures. Wonder how socialists view this, as opposed to free-market economists.
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    "Public services are an important antipoverty tool. Their benefit doesn't show up in income data, but they appear to play a key role in reducing material hardship." INteresting to see the statistics and how social expenditures help reduce poverty and the wealth gap.
quinnlewis

Take a Walk Through Israel and Gaza, a Year After the War - The New York Times - 1 views

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    Interesting perspective on an issue thats faded a little from the spotlight - really shows that even when the news coverage fades the problems don't. Just something to keep in mind when we talk about current events: it might be interesting to look at less-recent crises or incidents and where they are now even if they seem less "relevant"
smowat

In Budget Plan, Japan Proposes More Spending and Aims to Borrow Less - The New York Times - 6 views

  • ublic spending in Japan will rise to a record level
  • But in a sign that the country may be starting to address its huge debt, budget planners said Japan would borrow less money even as it spent more.
  • Although the economy has been struggling, Japanese corporations are earning record profits
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  • The key to the budget is a continuing expansion in tax revenue.
  • The government increased the national sales tax in April, a widely resented move
  • If the government’s budget projections hold, Japan will meet an official target of halving its deficit, minus the cost of debt service, to 3.3 percent of gross domestic product in fiscal 2015, from 6.6 percent in 2010.
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    This article was incredible informative about the current major areas that are sucking up a lot of Japan's spending like social benefits and military spending. But it also gives a detailed outline on how Japan aims to combat their debt but I'm unsure if these predictions are too optimistic?
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    I found the Japanese projections to be a bit unreasonable given the rate of spending and borrowing. I am nowhere close to as qualified as these executives but from outside the country their plan seems idealistic and likely to result in more debt- especially seeing as they have the largest public debt at the moment I would think they would be more conservative in this situation
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    After visiting Japan this summer, the issue of massive migration to urban areas and the aging populations seems to not receive the attention it deserves. Although it is mentions, the aging population is going to cause a crisis because most of the agricultural industry is taken up by elderly people, who will soon be out of the workforce in a decade or less. With the future cost of healthcare, the Japanese government cannot afford to increase its military power in order to compete with China.
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    It's strange that the increase in sales tax perhaps caused the recession in Japan but can also help Japan's economy recover. I don't quite understand how Japan plans to ease its national debt when it is increasing government spending. From where will they get their money?
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    It's interesting to see how Japan's government is interacting with the market in an attempt to create a flow of money that will ease its deficit. The fact that they raised their sales tax is very interesting when we consider how Japan entered its recession in 1997 because the government raised the national consumption tax to 5% from. Has Japan learned its lesson and will it enter another recession again as a result of their new tax hike?
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    It is cool to see precisely which sectors are consuming the larger portions of Japan's budget through data. I also liked how Japan thought about balance their budget.
gtgomes17

Latin America and the Caribbean - 4 views

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    Illustrating how the Bank's role in Latin America and the Caribbean has evolved in recent decades, countries in the region now turn increasingly to the institution for more than direct lending, including such services as risk insurance, commodity swaps, and climate adaptation finance.
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    From my last visit to Brazil, and what I heard from my family there, I can definitely see how the economy is shutting down. Reais are valued less than a dollar, so you can't get much with them. I am really hoping that, with help from the world bank, the Latin American economies are doing better.
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    The region is doing worse. "Latin America and the Caribbean finds itself in the fifth year of an economic slowdown and the second consecutive year of GDP contraction. Worsening external conditions coupled with domestic challenges have reduced expectations for regional growth to -0.7 percent in 2015, with economic activity projected to drop to -1.3 percent in 2016." But also, Mexico and the Caribbean are experiencing 2% growth, while South America is declining 1.7% or more. Why?
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    I think it is because (and this is just a theory, I do not know for certain) Mexico and the Caribbean have a direct relationship with the USA, which gives them extra economical assistance outside the World Bank.
olivialum

Signs, Long Unheeded, Now Point to Risks in U.S. Economy - The New York Times - 2 views

  • The data points range from the obvious to the obscure, encompassing stock market and credit bubbles in China, the strength of the dollar relative to emerging market currencies, a commodity rout and a sudden halt to global earnings growth.
  • The United States economy would only be able to avoid for so long the deflationary forces that have taken root in China
  • global G.D.P. pie is shrinking
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  • Suddenly, loans in relatively cheap dollars that financed real estate and consumption booms were no longer available and the ultimate result was always a growth slowdown.
  • What was driving weakness in all these countries was the gradual slowdown in the Chinese economy. As China bought less steel from Brazil, iron ore from Australia (its stock market was down by 22 percent during this time frame) and less mineral fuel and oil from Indonesia, the effect on these economies was immediate.
  • The bottom line though, is that investors in American stocks recognized too late in the game that a global contraction was sneaking up on them.
Kay Bradley

The Female Factor - A Woman Rises in Brazil - NYTimes.com - 2 views

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    It's really cool that the women referred to in the article (Dilma Rousseff, Michelle Bachelet, Cristina Fernández de Kirchner, and Keiko Fujimori) are taking their countries by storm. These countries are obviously very forward-thinking, and I admire them for it.
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    It's amazing how much power women can have in countries that Americans often think of as less developed than the US. These women are really taking control, when here in America we have yet to elect a female president or vice-president.
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    I want to echo Shalina's point. It's surprising that in the United States we still have not had a female President or Vice President, whereas countries that we often consider inferior to ours, such as Argentina and Peru, have already had female leaders. Though not mentioned in the article, another influential country that has already had a female leader is England- which first had a female Prime Minister over thirty years ago!
Rachel Katzoff

EU enlargement: The next eight - 4 views

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    This article talks about the next eight countries trying to gain entry into the EU. The most likely country to join the EU is Croatia and they may be approved as early as 2011. Each of the countries that applied as some internal issues they have to work out before they will be admitted. The process of being admitted is interesting to me because the countries first have to submit and application, get confirmed as a candidate, and then they begin talks. In the case of Turkey, the process has been going on since 1987.
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    Its incredible what the EU requires of joining nations, turkey has been trying for over 20 years. Its also interesting that many of these countries seem to be denied based on organized crime problems.
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    If you refer to the graphic representation of national debt among EU nations, bookmarked above, you'll see that wealth disparities among member nations is a potential deal breaker too.
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    I think it's fairly comical how the EU is really a gentlemen's club for the golden boys of Europe and how they are now fiercely attempting to reject their less desirable neighbors while maintaining this facade of being open and welcoming. Of course, it's hard to embrace someone when you're holding onto your wallet with both hands.
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    I think the problems in Greece point to why the EU has to be careful about who is let and who is not. That being said, this process with regards to Turkey is taking way too long. It would be a big step if Europe could build strong ties with Turkey, as it is one of the most accessible means of diplomatic and cultural communication with the ME (Israel is useless). Perhaps in this case, it would be best for the EU to forgive Turkey some minor problems in Cyprus, recognize that they have made improves with the "Kurd problem" and just let them in the damn club already. Perhaps greater improvements with internal Turkish issues that don't appeal to the UN could be made even more easily once Turkey has already joined.
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    I had no idea that it was this difficult to become a member of the European Union - being confirmed as a candidate can take more than a decade. Poor Turkey began the process 23 years ago, and is expected to require at least 10 more years to be fully prepared for membership. What an endeavor!
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    I think this is very interesting and I cannot agree with Jack more. When these countries are thinking only with their pocket books it is hard to be genuinely welcoming to other nations. In my opinion, making Turkey wait 20+ years to join is far too long and a bit ridiculous especially when you compare it to the time other countries had to wait. Croatia joined in less than 5. Very unfair...
big_red

What You Need to Know About the Ebola Outbreak - 6 views

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    This article has a lot of information about the Ebola virus and its impact on the world. I chose this article because many people are completely paranoid about Ebola in the US. The article explains that Ebola spreads slowly, and it is not extremely contagious. Many people are scared of Ebola because of the horrific things it does to your body, but it is important to stop and realize that in the US, it is extremely unlikely to effect a large amount of people. You have to have to exchange bodily fluids with someone showing symptoms of the virus. There are only 2 cases of Ebola in the US (as far as we know), so there is no point in being concerned about becoming infected with ebola.
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    Super interesting dude! Wow I feel like I am an Ebola expert now. I am also a lot less afraid of Ebola too. I wonder how people don't die from it though if they don't have a vaccine yet though.
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    Though we've kind of already discussed this article in class, I still find it really provoking to think about how this outbreak is being treated in different countries. It's unfortunate that the regions in which the virus has struck the hardest is unable to obtain all the resources necessary, due to lack of trained professionals, funds, medicine, and the like.
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    I love how informative that article was. It gets straight to the point. Although I was never too concerned with the virus to begin with, I do feel a little less afraid of it, like Max. It's really interesting to know that the virus most likely originated from bats though!
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    Thanks for posting this. There is a lot of good information in this article. With the people's skepticism and the high risk of infection, it must be very difficult to be a health worker in this outbreak.
ntarkoff

Everyday Life In North Korea : NPR - 4 views

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    Interview with Sokeel Park, director of a research and strategy group that aids refugees from North Korea, sheds light on the lives of ordinary North Koreans. He illuminates that North Korea is becoming increasingly more capitalistic in an attempt to lessen their isolation; however, this is all happening under the nose of the North Korean government. Correction: North Korea becomes increasingly capitalistic out of necessity: occurred because the North Korean economy was failing -- North Koreans needed food so they smuggled it into the country. As a result, the North Koreans became less isolated from the outside world. A decrease in isolationism and an increase in capitalism happened independently. -thanks miles
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    I think that the previous comment seems to make assumptions that were not made in the actual article. The article says that due to an economic collapse, some North Koreans have been becoming more capitalistic while simultaneously they have been exposed to more out side media making them less isolated. The previous comment seems to make it seem that the increased capitalism leads to this increased isolation, which is making a inference not stated or explored in the article.
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    With all the focus on North Korean Politics and threats it is interesting to hear about culture and day to day life. With spreading capitalism and western influence in the millennial generation, it gives me hope that there could be change from within North Korea. Granted, the article mentions that no organized resistance exists but I believe it starts with the culture and the proliferation of ideas.
astas2021

The Coronavirus, Fewer Tourists and Australia's Famous Reef - The New York Times - 5 views

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    At first I was taken aback by the claim that the lack of tourists could harm the coral reef. How could less pollution and greenhouse gas emissions harm an endangered reef, after all. Then, I got to read the morbidly depressing news that without a chance to swim next to the pretty colors, humans have little motivation to save a reef they themselves have destroyed. If we do not want the human race to go extinct, or if, at the bare minimum, we don't want to kill off every other species then we must completely reshift the way we think about climate change. Global warming is unchangeably tied with our capitalist system, which produces beliefs in money and individualism over the safety of every living thing.
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    This is such an interesting take on the impact of the coronavirus and Climate Change. Like Cooper, I originally thought that the general decrease in travel emissions and tourists would have a positive impact on the reefs. However, I had never considered how visiting the reefs in person provides very real motivation for people to appreciate them and contribute to their well being. It seems that coronavirus has allowed us to distance ourselves from very real problems like these, and make us that much less likely to take action. I thought it was also interesting how much Australia relies on tourists from other countries and how coronavirus has revealed how interdependent different countries are.
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    Like Cooper and Anya said, I would never have thought that tourism was actually beneficial to the coral reefs. Although this seems almost counterintuitive, reading this article brought to my attention how complicated the relationship between capitalism and the well being of some things in nature is.
anikar2023

A U.S.-Iran Soccer Showdown Intensifies With Protests as a Backdrop - 1 views

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    US and Iran will play each other tomorrow. There is a lot of tension due to conflict between the two governments, and there have been protests in Iran for the last 10 weeks. Many fans have brought politics into the soccer games, such as booing at the national anthem and waving protest flags. Iran's leaders have arrested a bunch of people, and there are a lot of eyes on the team as they continue to advance.
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    There are so many political issues surrounding the World Cup that sometimes more important ones are ignored. Most of the attention has been directed toward Qatar and less toward what is happening with Iran. The media reporting more about how players are banned from wearing one-love arm bands and other less important issues distracts people from other more important things going on.
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    After today's game where Iranian players sang the national anthem after some of their families had allegedly been threatened, it is incredibly obvious that the Iranian government intends to use the world cup as a key political tool in dismissing unrest at home.
Kay Bradley

What Is COP27? - The New York Times - 0 views

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    It is a good thing that this summit highlights aid toward less developed countries. Although a lot of the funding that is going towards these less developed countries seems much more like downstream solutions rather than upstream. This aid may help short term but won't in the long run.
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    Very interesting that the US was mentioned as starting to act on its commitment from COP26. US is investing $370 bil in emmission-free energy sources that should get close to cutting 50% of emissions by 2025. I wonder how are progress on that statistic is right now.
Kay Bradley

Immigration's Role Often Overlooked in Global Economy | FPIF - 0 views

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    Comparing immigration issues in two Advanced industrial countries; France and the US
Chelsea Wirth

Romney criticises Biden on Benghazi attack - 1 views

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    Recently republican candidate has claimed that current vice president Joe Biden has contradicted the US State Department with regards to its position on Lybia. It's believed that Romney hopes to make Obama less credible with regards to his foreign policy.
Alexander Luckmann

Venezuela Goes to the Polls -- not in the same way we will in a month - 0 views

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    An interesting article on the Chilean election. This theme reflects on our study of economic approaches, in particular the aftermath of the shock therapy first instituted in Latin America to combat inflation in Chile. This policy was so painful for so many people that, in the 2000s, South America experienced a sharp political left turn, one of whose leaders is Chavez. He has ruled Venezuela with an almost autocratic grip, but seems at his weakest in years for this year's election.
Kay Bradley

In Sweden, Immigration Policies Begin to Rankle - NYTimes.com - 0 views

  • who say that immigrants are not only failing to pay their way, but that they also are refusing to learn the ways of their host country.
  • “They do not respect Swedish people,” Mrs. Nilsson said. “As long as they learn the language and behave like Swedes, they are welcome. But they do not. Immigration as it is now needs to stop.”
  • They scoff at the notion that Swedes are somehow special — less racist and xenophobic than other Europeans. They believe the country has been generous with financial support, but little else.
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  • Sweden’s liberal policies have become costly. In the 1950s, ’60s and ’70s, Sweden, which had more manufacturing jobs than citizens to fill them, invited immigrants in
  • In some of those apartment blocks, the unemployment rate among immigrants stands at 80 percent.
madeirat

Educating India's Children - 1 views

  • 2015
  • brought nearly 20 million children into primary school
  • India is now seeking to improve the quality of primary education as well as improve access, equity and quality in secondary education
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  • ommitted over $2 billion to education in India
  • caters to some 200 million children
  • the program has brought nearly 20 million children into primary school
  • there are 93 girls for every 100 boys in primary school compared to just 90 in 2001
  • expand facilities and improve infrastructure, get children to school, and set up a system to assess learning
  • more than 95 percent of India’s children attend primary school, less than half of 16 year olds - just 44 percent – complete Class 10
  • more relevant skills
  • 60 percent of secondary schools which are privately managed in India
  • Since 2000, the World Bank has committed over $2 billion to education in India
  • Having improved access, India is now seeking to upgrade the quality of education provided and improve levels of learning
  • expand access to upper primary education, increase retention of all students until completion of elementary education (Grade 8), and improve learning levels
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    In the past 16 years the World Bank has committed more than $2 billion to education in India. Attendance of primary school, which was the first goal, has dramatically improved, however secondary education is still struggling, so India is now turning its focus to that.
ejeffs

Record Number of Economies Carried Out Business Reforms in Past Year: Doing Business - 1 views

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    A record-breaking 137 economies around the world have established reforms that make starting and operating small/medium-sized business easier. "Doing Business" is the World Bank Organization's annual report that measures the ease of business, and better scores on the report has a correlation with more income equality and less poverty. An especially interesting aspect of the 2017 installment is that it also added gender discrimination to the criteria when assessing a state.
evansimons

World Bank Pledges $2 Billion to Bangladesh for Climate Smart Growth - 4 views

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    DHAKA, October 18, 2016 -World Bank Group President Jim Yong Kim, concluding a two-day trip to Bangladesh focused on the country's successes in reducing extreme poverty, pledged $2 billion over the next three years in new funding to help the country become less vulnerable to climate change.
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    Connects to Sophia's post on Bangladesh. . . "Bangladesh is among the countries most at risk from the impacts of climate change. We must confront climate change now as it hits the poor the hardest," said Kim (president of the WOrld Bank).
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