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Adam Smith observed in 1776 that economies work best when governments keep their clumsy thumbs off the free market's "invisible hand." Two generations later, in 1817, the British economist David Ricardo extended Smith's insights to global trade. Just as market forces lead to the right price and quantity of products domestically, Ricardo argued, free foreign trade optimizes economic outcomes internationally. Reading Adam Smith in Copenhagen -- the center of the small, open, and highly successful Danish economy -- is a kind of out-of-body experience. On the one hand, the Danes are passionate free traders. They score well in the ratings constructed by pro-market organizations. The World Economic Forum's Global Competitiveness Index ranks Denmark third, just behind the United States and Switzerland. Denmark's financial markets are clean and transparent, its barriers to imports minimal, its labor markets the most flexible in Europe, its multinational corporations dynamic and largely unmolested by industrial policies, and its unemployment rate of 2.8 percent the second lowest in the OECD (the Organization for Economic Cooperation and Development). On the other hand, Denmark spends about 50 percent of its GDP on public outlays and has the world's second-highest tax rate, after Sweden; strong trade unions; and one of the world's most equal income distributions. For the half of GDP that they pay in taxes, the Danes get not just universal health insurance but also generous child-care and family-leave arrangements, unemployment compensation that typically covers around 95 percent of lost wages, free higher education, secure pensions in old age, and the world's most creative system of worker retraining. Does Denmark have some secret formula that combines the best of Adam Smith with the best of the welfare state? Is there something culturally unique about the open-minded Danes? Can a model like the Danish one survive as a social democratic island in a turbulent sea of globali

Dolphins have been declared the world's second most intelligent creatures after humans, with scientists suggesting they are so bright that they should be treated as "non-human persons".

As President Obama begins the second half of his term with a campaign for "jobs and competitiveness," we would do well to consider how he might achieve these worthy goals. It is jobs that matter most to the vast majority of Americans, and unemployment remains at 9.4 percent - about double its pre-recession level. This is a terrible punishment to inflict on millions of Americans who did nothing to deserve it. It will cause long-term and even permanent damage to many of the unemployed and their children.

Robert Reich connects the dots on the economy, in less than 2 minutes and 15 seconds. Who knew he could draw!?!

On July 25th, for instance, while John Boehner raced around the Capitol desperately pressing Republican House members for votes on a debt-ceiling bill that Harry Reid was calling dead-on-arrival in the Senate, America's new ambassador to Afghanistan, Ryan Crocker, took his oath of office in distant Kabul.  According to the New York Times, he then gave a short speech "warning" that "Western powers needed to 'proceed carefully'" and emphasized that when it came to the war, there would "be no rush for the exits." If, in Washington, people were rushing for those exits, no chance of that in Kabul almost a decade into America's second Afghan War.  There, the air strikes, night raids, assassinations, roadside bombs, and soldier and civilian deaths, we are assured, will continue to 2014 and beyond.  In a war in which every gallon of gas used by a fuel-guzzling US military costs $400 to $800 to import, time is no object and -- despite the panic in Washington over debt payments -- neither evidently is cost.

CAMBRIDGE - Why is everyone still referring to the recent financial crisis as the "Great Recession"? The term, after all, is predicated on a dangerous misdiagnosis of the problems that confront the United States and other countries, leading to bad forecasts and bad policy.

The Occupy Wall Street movement is well into its second week of operation, and is now getting more attention from media as well as from people planning similar actions across the country. This is a promising populist mobilization with a clear message against domination by political and economic elites. Against visions of a bleak and stagnant future, the occupiers assert the optimism that a better world can be made in the streets. They have not resigned themselves to an order where the young are presented with a foreseeable future of some combination of debt, economic dependency, and being paid little to endure constant disrespect, an order that tells the old to accept broken promises and be glad to just keep putting in hours until they can't work anymore. The occupiers have not accepted that living in modern society means shutting up about how it functions. In general, the occupiers see themselves as having more to gain than to lose in creating a new political situation - something that few who run the current system will help deliver. They are not eager for violence, and have shown admirable restraint in the face of attack by police. There may be no single clear agenda, but there is a clear message: that people will have a say in their political and economic lives, regardless of what those in charge want. Occupy Wall Street is a kind of protest that Americans are not accustomed to seeing. There was no permit to protest, and it has been able to keep going on through unofficial understandings between protestors and police. It is not run by professional politicians, astroturfers, or front groups with barely-hidden agendas. Though some organizations and political figures have promoted it, Occupy Wall Street is not driven by any political party or protest organization. It is a kind of protest that shows people have power when they are determined to use it. Occupy Wall Street could be characterized as an example of a new type of mass politics, which has been seen in