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The economics community just hasn't spent much time over the past couple of decades focusing on the effect that machine intelligence is likely to have on the labor marke

The Digital Revolution is different because computers can perform cognitive tasks too, and that means machines will eventually be able to run themselves. When that happens, they won't just put individuals out of work temporarily. Entire classes of workers will be out of work permanently. In other words, the Luddites weren't wrong. They were just 200 years too early

Slowly but steadily, labor's share of total national income has gone down, while the share going to capital owners has gone up. The most obvious effect of this is the skyrocketing wealth of the top 1 percent, due mostly to huge increases in capital gains and investment income.

Robotic pets are growing so popular that Sherry Turkle, an MIT professor who studies the way we interact with technology, is uneasy about it: "The idea of some kind of artificial companionship," she says, "is already becoming the new normal."

robots will take over more and more jobs. And guess who will own all these robots? People with money, of course. As this happens, capital will become ever more powerful and labor will become ever more worthless. Those without money—most of us—will live on whatever crumbs the owners of capital allow us.

Economist Paul Krugman recently remarked that our long-standing belief in skills and education as the keys to financial success may well be outdated. In a blog post titled "Rise of the Robots," he reviewed some recent economic data and predicted that we're entering an era where the prime cause of income inequality will be something else entirely: capital vs. labor.

while it's easy to believe that some jobs can never be done by machines—do the elderly really want to be tended by robots?—that may not be true.

Third, as more people compete for fewer jobs, we'd expect to see middle-class incomes flatten in a race to the bottom.

The question we want to answer is simple: If CBTC is already happening—not a lot, but just a little bit—what trends would we expect to see? What are the signs of a computer-driven economy?

if automation were displacing labor, we'd expect to see a steady decline in the share of the population that's employed.

Second, we'd expect to see fewer job openings than in the past.

In the economics literature, the increase in the share of income going to capital owners is known as capital-biased technological change

Fourth, with consumption stagnant, we'd expect to see corporations stockpile more cash and, fearing weaker sales, invest less in new products and new factories

Fifth, as a result of all this, we'd expect to see labor's share of national income decline and capital's share rise.

We're already seeing them, and not just because of the crash of 2008. They started showing up in the statistics more than a decade ago. For a while, though, they were masked by the dot-com and housing bubbles, so when the financial crisis hit, years' worth of decline was compressed into 24 months. The trend lines dropped off the cliff.

Corporate executives should worry too. For a while, everything will seem great for them: Falling labor costs will produce heftier profits and bigger bonuses. But then it will all come crashing down. After all, robots might be able to produce goods and services, but they can't consume them

in another sense, we should be very alarmed. It's one thing to suggest that robots are going to cause mass unemployment starting in 2030 or so. We'd have some time to come to grips with that. But the evidence suggests that—slowly, haltingly—it's happening already, and we're simply not prepared for it.

the first jobs to go will be middle-skill jobs. Despite impressive advances, robots still don't have the dexterity to perform many common kinds of manual labor that are simple for humans—digging ditches, changing bedpans. Nor are they any good at jobs that require a lot of cognitive skill—teaching classes, writing magazine articles

in the middle you have jobs that are both fairly routine and require no manual dexterity. So that may be where the hollowing out starts: with desk jobs in places like accounting or customer support.

In fact, there's even a digital sports writer. It's true that a human being wrote this story—ask my mother if you're not sure—but in a decade or two I might be out of a job too

Doctors should probably be worried as well. Remember Watson, the Jeopardy!-playing computer? It's now being fed millions of pages of medical information so that it can help physicians do a better job of diagnosing diseases. In another decade, there's a good chance that Watson will be able to do this without any human help at all.

Take driverless cars.

The next step might be passenger vehicles on fixed routes, like airport shuttles. Then long-haul trucks. Then buses and taxis. There are 2.5 million workers who drive trucks, buses, and taxis for a living, and there's a good chance that, one by one, all of them will be displaced

There will be no place to go but the unemployment lin

we'll need to let go of some familiar convictions. Left-leaning observers may continue to think that stagnating incomes can be improved with better education and equality of opportunity. Conservatives will continue to insist that people without jobs are lazy bums who shouldn't be coddled. They'll both be wrong.

The modern economy is complex, and most of these trends have multiple causes.

we'll probably have only a few options open to us. The simplest, because it's relatively familiar, is to tax capital at high rates and use the money to support displaced workers. In other words, as The Economist's Ryan Avent puts it, "redistribution, and a lot of it."

would we be happy in a society that offers real work to a dwindling few and bread and circuses for the rest?

Most likely, owners of capital would strongly resist higher taxes, as they always have, while workers would be unhappy with their enforced idleness. Still, the ancient Romans managed to get used to it—with slave labor playing the role of robots—and we might have to, as well.

 economist Noah Smith suggests that we might have to fundamentally change the way we think about how we share economic growth. Right now, he points out, everyone is born with an endowment of labor by virtue of having a body and a brain that can be traded for income. But what to do when that endowment is worth a fraction of what it is today? Smith's suggestion: "Why not also an endowment of capital? What if, when each citizen turns 18, the government bought him or her a diversified portfolio of equity?"

In simple terms, if owners of capital are capturing an increasing fraction of national income, then that capital needs to be shared more widely if we want to maintain a middle-class society.

it's time to start thinking about our automated future in earnest. The history of mass economic displacement isn't encouraging—fascists in the '20s, Nazis in the '30s—and recent high levels of unemployment in Greece and Italy have already produced rioting in the streets and larger followings for right-wing populist parties. And that's after only a few years of misery.

When the robot revolution finally starts to happen, it's going to happen fast, and it's going to turn our world upside down. It's easy to joke about our future robot overlords—R2-D2 or the Terminator?—but the challenge that machine intelligence presents really isn't science fiction anymore. Like Lake Michigan with an inch of water in it, it's happening around us right now even if it's hard to see

A robotic paradise of leisure and contemplation eventually awaits us, but we have a long and dimly lit tunnel to navigate before we get there.

This conclusion is surely controversial because many economists attribute the weak recovery to misguided austerity, especially in Europe.

Perhaps history will vindicate this appeal to Keynesianism. Or perhaps not. The fact is that the United States did respond aggressively under both George W. Bush and Barack Obama. It certainly didn’t embrace austerity. Federal budgets ran massive deficits — $6.2 trillion worth from 2008 to 2013, averaging 6.4 percent of the economy (gross domestic product).Nothing like this had occurred since World War II. Yet, the economy limped along. Why wasn’t this enough?

It’s not just Keynesianism that’s under a cloud. The same fate has befallen monetarism — the doctrine that stable growth in the money supply can promote a more stable economy. Since 2008, the Federal Reserve has poured more than $3.2 trillion into the economy to keep interest rates low and accelerate economic growth. By monetarist reasoning, so much money pumped out so quickly should spawn higher inflation. Some economists predicted as much; it hasn’t happened yet. Consumer prices today are up a mere 1.5 percent from a year earlier.

The Great Recession and financial crisis changed behavior in fundamental ways that economists have yet to incorporate fully into their models or theories

The widespread faith that modern societies were sheltered from deep and sustained economic setbacks has been shattered, causing consumers, business managers and bankers to be more cautious in borrowing and spending. Economic stimulus may offset this caution, but if it signals that the economy is weaker than expected, it may also further depress private spending.

The faith in economics was, in many ways, the underlying cause of both the financial crisis and Great Recession — it made people overconfident and careless during the boom — and the basic explanation for the weak recovery, as stubborn caution displaced stubborn complacency

Leslie Berlin, a historian of business at Stanford, organized her nominations not as an overall list but grouped into functional categories.

Innovations that expand the human intellect and its creative, expressive, and even moral possibilities.

Innovations that are integral to the physical and operating infrastructure of the modern world

Innovations that enabled the Industrial Revolution and its successive waves of expanded material output

Innovations extending life, to use Leslie Berlin’s term

Innovations that allowed real-time communication beyond the range of a single human voice

Innovations in the physical movement of people and goods.

Organizational breakthroughs that provide the software for people working and living together in increasingly efficient and modern ways

Finally, and less prominently than we might have found in 1950 or 1920—and less prominently than I initially expected—we have innovations in killing,

Any collection of 50 breakthroughs must exclude 50,000 more.

We learn, finally, why technology breeds optimism, which may be the most significant part of this exercise.

Popular culture often lionizes the stars of discovery and invention

For our era, the major problems that technology has helped cause, and that faster innovation may or may not correct, are environmental, demographic, and socioeconomic.

people who have thought deeply about innovation’s sources and effects, like our panelists, were aware of the harm it has done along with the good.

“Does innovation raise the wealth of the planet? I believe it does,” John Doerr, who has helped launch Google, Amazon, and other giants of today’s technology, said. “But technology left to its own devices widens rather than narrows the gap between the rich and the poor.”

Are today’s statesmen an improvement over those of our grandparents’ era? Today’s level of public debate? Music, architecture, literature, the fine arts—these and other manifestations of world culture continually change, without necessarily improving. Tolstoy and Dostoyevsky, versus whoever is the best-selling author in Moscow right now?

The argument that a slowdown might happen, and that it would be harmful if it did, takes three main forms.

Some societies have closed themselves off and stopped inventing altogether:

By failing to move forward, they inevitably moved backward relative to their rivals and to the environmental and economic threats they faced. If the social and intellectual climate for innovation sours, what has happened before can happen again.

visible slowdown in the pace of solutions that technology offers to fundamental problems.

a slowdown in, say, crop yields or travel time is part of a general pattern of what economists call diminishing marginal returns. The easy improvements are, quite naturally, the first to be made; whatever comes later is slower and harder.

America’s history as a nation happens to coincide with a rare moment in technological history now nearing its end. “There was virtually no economic growth before 1750,” he writes in a recent paper.

“We can be concerned about the last 1 percent of an environment for innovation, but that is because we take everything else for granted,” Leslie Berlin told me.

This reduction in cost, he says, means that the next decade should be a time of “amazing advances in understanding the genetic basis of disease, with especially powerful implications for cancer.”

the very concept of an end to innovation defied everything they understood about human inquiry. “If you look just at the 20th century, the odds against there being any improvement in living standards are enormous,”

“Two catastrophic world wars, the Cold War, the Depression, the rise of totalitarianism—it’s been one disaster after another, a sequence that could have been enough to sink us back into barbarism. And yet this past half century has been the fastest-ever time of technological growth. I see no reason why that should be slowing down.”

“I am a technological evolutionist,” he said. “I view the universe as a phase-space of things that are possible, and we’re doing a random walk among them. Eventually we are going to fill the space of everything that is possible.”

This "demographic transition" to lower birth rates began in Western Europe in the 19th century and later spread to North America, then Latin America, Asia and now Africa. In 1955, the birth rates per woman in Yemen, Iran, Bangladesh, Nigeria, Brazil and China were, respectively, 8.3, 7.0, 6.8, 6.5, 6.1 and 5.6. Today they are 5.1, 1.7, 2.7, 5.2, 1.8 and 1.7. Notice: The poorer a country has remained, the slower the fall.

From the beginning, many economists expressed skepticism about this claim. In particular, it seemed immediately obvious that slow growth often causes high debt, not the other way around — as has surely been the case, for example, in both Japan and Italy. But in political circles the 90 percent claim nonetheless became gospel.

it’s not as if fiscal scolds really arrived at their position based on statistical evidence. As the old saying goes, they used Reinhart-Rogoff the way a drunk uses a lamppost — for support, not illumination. Still, they suddenly lost that support, and with it the ability to pretend that economic necessity justified their ideological agenda.

To counter the weak employment market, Summers called for major growth in government expenditures to fill needs that the private sector is not addressing:In our society, whether it is taking care of the young or taking care of the old, or repairing a lot that needs to be repaired, there is a huge amount of very valuable work that needs to be done. It’s much less clear, to use a modern phrase, that there’s a viable business model for getting it done. And I guess the reason why I think there is going to need to be a lot of reflection on the role of government going forward is that, if I’m right, that there’s vitally important work to be done for which there is no standard capital business model that will get it done. That suggests important roles for public policy.

the report calls for tax and regulatory policies to encourage employee ownership, the strengthening of collective bargaining rights, regulations requiring corporations to provide fringe benefits to employees working for subcontractors, a substantial increase in the minimum wage, sharper overtime pay enforcement, and a huge increase in infrastructure appropriations – for roads, bridges, ports, schools – to spur job creation and tighten the labor market.

Summers also calls for significant increases in the progressivity of the United States tax system.

He advocates aggressive steps to eliminate “rents” — profits that result from monopoly or other forms of government protection from competition. Summers favors attacking rents in the form of “exclusionary zoning practices” that bid up the price of housing, “excessively long copyright” protections, and financial regulations “providing implicit subsidies to a fortunate minority.”

Signaling that he now finds himself on common ground with stalwarts of the Democratic left like Elizabeth Warren and Joe Stiglitz, Summers adds, “Government needs to try to make sure everyone can get access to financial markets on an equal basis.”

Summers supports looking past income inequality to the distribution of wealth. During our conversation, he pointed out that “a large fraction of capital gains escapes taxation entirely” through “the stepped up basis at death.”

The idea that an economy could suffer from a persistent shortage of demand is an enormous switch for Summers or anyone who had been adhering to the economic orthodoxy in the three decades prior to the crisisin 2008. Baker goes on to argue that Summers “now recognizes that the financial system needs serious regulation.”

Many of the policies outlined by Summers — especially on trade, taxation, financial regulation and worker empowerment — are the very policies that divide the Wall-Street-corporate wing from the working-to-middle-class wing of the Democratic Party. Put another way, these policies divide the money wing from the voting wing.

Summers has forced out in the open a set of choices that Hillary Clinton has so far avoided, choices that even if she attempts to elide them will amount to a signal of where her loyalties lie.

“The core problem,” according to Summers, is thatthere aren’t enough jobs, and if you help some people, you can help them get the jobs, but then someone else won’t get the jobs. And unless you’re doing things that are affecting the demand for jobs, you’re helping people win a race to get a finite number of jobs, and there are only so many of them.

he is “all for” more schooling and job training, but as an answer to the problems of the job marketplace, “it is fundamentally an evasion.”

Summers’s analysis of current economic conditions suggests that free market capitalism, as now structured, is producing major distortions. These distortions, in his view, have resulted in gains of $1 trillion annually to those at the top of the pyramid, and losses of $1 trillion every year to those in the bottom 80 percent.

Summers’s ascendance is a reflection of the abandonment by much of the party establishment of neo-liberal thinking, premised on the belief that unregulated markets and global trade would produce growth beneficial to worker and C.E.O. alike.

Larry Summers, who withdrew his candidacy for the chairmanship of the Federal Reserve under pressure from the liberal wing of the Democratic Party in 2013, has emerged as the party’s dominant economic policy strategist. The former Treasury secretary’s evolving message has won over many of his former critics.

Certain aspects of geography seemed to act as a buffer or threat, Amano says.

More research is necessary to determine precisely what it is about economic development that kills languages, he adds. Figuring out how growth interacts with other factors such as landscape is the next step, he says.

Economics is far from the whole story, however, she says.

Generations of disease, murder, and genocide—both historic and present, in some regions—have also played an important role and were not included in the new study's analysis, she says.

At the same time, the rise in protective committees and procedures (like trigger warnings) ensure that students will not be confronted with course materials that might upset them (even classics like Ovid’s “Metamorphoses” and “The Adventures of Huckleberry Finn”).

universities like Yale have given in to the implicit notion that they should provide the equivalent of the home environment.

But college is a different kind of community than a family, and its primary job is education of the student and adaptation to independent community living.

To prepare for increased autonomy and responsibility, college needs to be a time of exploration and experimentation. This process entails “trying on” new ways of thinking about oneself both intellectually and personally, which is possible only if a certain degree of freedom is allowed.

While we should provide “safe spaces” within colleges for marginalized groups, we must also make it safe for all community members to express opinions and challenge majority views. Intellectual growth and flexibility are fostered by rigorous debate and questioning.

It is not surprising that young people are prone to lash out, particularly when there are sociologic reasons to do so. Our generation rallied around clear issues: the war in Vietnam and governmentally sanctioned discrimination based on race and gender. ISIS, Newtown, a changing economy with fewer good jobs and stable career paths create anxiety without generating a unifying moral vision

The encroachment of behavioral guidelines into the social and even intellectual spheres comes at a cost. Every college discussion about community values, social climate and behavior should also include recognition of the developmental importance of student autonomy and self-regulation, of the necessary tension between safety and self-discovery.

And achieving the Fed's 2-percent inflation target is exactly the type of thing that would the cause such a surge in borrowing costs.

Japan has been mired in an economic morass for decades.

Once inflation targets are reached, they will have to begin winding down purchases of sovereign debt or risk pushing prices out of control.

investors will rush to front-run the offer to sell sovereign debt and equities from central banks.

One thing that’s changed tremendously is the presence of women and the change in focus because of that. There’s a lot of interest in literature and philosophy, and using literature as a philosophical examination. It makes me so happy! Because I was seen as a hard-core analytic philosopher, and when I first began to write novels people thought, Oh, and we thought she was serious! But that’s changed entirely. People take literature seriously, especially in moral philosophy, as thought experiments. A lot of the most developed and effective thought experiments come from novels. Also, novels contribute to making moral progress, changing people’s emotions.

The other thing that’s changed is that there’s more applied philosophy. Let’s apply philosophical theory to real-life problems, like medical ethics, environmental ethics, gender issues. This is a real change from when I was in school and it was only theory.

here’s a lot of philosophical progress, it’s just a progress that’s very hard to see. It’s very hard to see because we see with it. We incorporate philosophical progress into our own way of viewing the world.

Plato would be constantly surprised by what we know. And not only what we know scientifically, or by our technology, but what we know ethically. We take a lot for granted. It’s obvious to us, for example, that individual’s ethical truths are equally important.

it’s usually philosophical arguments that first introduce the very outlandish idea that we need to extend rights. And it takes more, it takes a movement, and activism, and emotions, to affect real social change. It starts with an argument, but then it becomes obvious. The tracks of philosophy’s work are erased because it becomes intuitively obvious

The arguments against slavery, against cruel and unusual punishment, against unjust wars, against treating children cruelly—these all took arguments.

About 30 years ago, the philosopher Peter Singer started to argue about the way animals are treated in our factory farms. Everybody thought he was nuts. But I’ve watched this movement grow; I’ve watched it become emotional. It has to become emotional. You have to draw empathy into it. But here it is, right in our time—a philosopher making the argument, everyone dismissing it, but then people start discussing it. Even criticizing it, or saying it’s not valid, is taking it seriously

This is what we have to teach our children. Even things that go against their intuition they need to take seriously. What was intuition two generations ago is no longer intuition; and it’s arguments that change i

We are very inertial creatures. We do not like to change our thinking, especially if it’s inconvenient for us. And certainly the people in power never want to wonder whether they should hold power.

I’m really trying to draw the students out, make them think for themselves. The more they challenge me, the more successful I feel as a teacher. It has to be very active

Plato used the metaphor that in teaching philosophy, there needs to be a fire in the teacher, and the sheer heat will help the fire grow in the student. It’s something that’s kindled because of the proximity to the heat.

how can you make the case that they should study philosophy?

ches your inner life. You have lots of frameworks to apply to problems, and so many ways to interpret things. It makes life so much more interesting. It’s us at our most human. And it helps us increase our humanity. No matter what you do, that’s an asset.

What do you think are the biggest philosophical issues of our time? The growth in scientific knowledge presents new philosophical issues.

The idea of the multiverse. Where are we in the universe? Physics is blowing our minds about this.

The question of whether some of these scientific theories are really even scientific. Can we get predictions out of them?

And with the growth in cognitive science and neuroscience. We’re going into the brain and getting these images of the brain. Are we discovering what we really are? Are we solving the problem of free will? Are we learning that there isn’t any free will? How much do the advances in neuroscience tell us about the deep philosophical issues?

With the decline of religion is there a sense of the meaninglessness of life and the easy consumerist answer that’s filling the space religion used to occupy? This is something that philosophers ought to be addressing.

For instance, we might choose a different metaphor—like, say, the traffic system. Sounds ridiculous? No more so than the market metaphor. After all, we already talk about one important aspect of economic life in terms of traffic: online activity. We could describe it in market terms (the market demands Trump memes!), but we use a different metaphor, because it’s just intuitively more suitable. That last Trump meme is generating a lot of traffic. Redirect your attention as required.

We don’t know much about markets, because we don’t deal with them very often. But most of us know plenty about traffic systems: drivers will know the frustration of trying to turn left onto a major road, of ceaseless, pointless lane-switching on a stalled rush-hour freeway, but also the joys of clear highways.

We know the traffic system because, whether we like it or not, we are always involved in it, from birth

As of birth, Jean is in the economy—even if s/he rarely goes to a market. You can’t not be an economic actor; you can’t not be part of the transport system.

Consider also the composition of the traffic system and the economy. A market, whatever else it is, is always essentially the same thing: a place where people can come together to buy and sell things. We could set up a market right now, with a few fences and a sign announcing that people could buy and sell. We don’t even really need the fences. A traffic system, however, is far more complex. To begin with, the system includes publicly and privately run elements: most cars are privately owned, as are most airlines

If we don’t evaluate traffic systems based on their size, or their growth, how do we evaluate them? Mostly, by how well they help people get where they want to go. The market metaphor encourages us to think that all economic activity is motivated by the search for profit, and pursued in the same fashion everywhere. In a market, everyone’s desires are perfectly interchangeable. But, while everybody engages in the transport system, we have no difficulty remembering that we all want to go to different places, in different ways, at different times, at different speeds, for different reasons

Deciding how to improve the traffic system, how to expand people’s opportunities, is obviously a question of resource allocation and prioritization on a scale that private individuals—even traders—cannot influence on their own. That’s why government have not historically trusted the “magic of the markets” to produce better opportunities for transport. We intuitively understand that these decisions are made at the level of mass society and public policy. And, whether you like it or not, this is true for decisions about the economy as well.

Thinking of the economy in terms of the market—a featureless plane, with no entry or exit costs, little need for regulation, and equal opportunity for all—obscures this basic insight. And this underlying misconception creates a lot of problems: we’ve fetishized economic growth, we’ve come to distrust government regulation, and we imagine that the inequalities in our country, and our world, are natural or justified. If we imagine the economy otherwise—as a traffic system, for example—we see more clearly how the economy actually works.

We see that our economic life looks a lot less like going to “market” for fun and profit than it does sitting in traffic on our morning commute, hoping against hope that we’ll get where we want to go, and on time.

Quite apart from the “unbalanced power” of the financial sector, and the tendency of a super-sized financial sector to cause increasingly bad global financial crashes, excessive financialization leads to resources being misallocated. “In many of the financial sector’s segments that have grown fastest since deregulation—like investment banks—the transactions are primarily zero-sum.”

However in times of rapid technological transformation like today, the role of the economic priesthood in protecting its own interests can become a massively destabilizing.

Thus we know from the history of the last couple of hundred years that in times of rapid technological transformation, the financial sector tends to become disconnected from the real economy

This has occurred a number of times in the last few hundred years, including the Canal Mania (England—1790s), the Rail Mania (England—1840s), the Gilded Age (US: 1880s—early 1900s) the Roaring Twenties (US—1920s) and the Big Banks of today.

Getting to safety is not made any easier by the fact the modern economic priesthood—the managers of large firms and the banks—has, like their ancient Egyptian forbears, found ways to participate in the casino economy and benefit from “making money out of money”, even as the economy as a whole suffers.  As Upton Sinclair wrote, “It is difficult to get a man to understand something, when his salary depends upon his not understanding it.

Just as the ancient Egyptian economic priesthood clung to power as the economy stagnated, so today the economic priesthood shows no signs of relinquishing their gains or their power. The appetite and expectation of extraordinary returns is still there.

“Corporate chieftains rationally choose financial engineering—debt-financed share buybacks, for example—over capital investment in property, plants and equipment. Financial markets reward shareholder activism. Institutional investors extend their risk parameters to beat their benchmarks… But real economic growth—averaging just a bit above 2 percent for the fifth year in a row—remains sorely lacking.”

As a result, the economy remains in the “Great Stagnation”(Tyler Cowen), also known as “the Secular Stagnation (Larry Summers). It is running on continuing life support from the Federal Reserve. Large enterprises still appear to be profitable. The appearance, though not the reality, of economic well-being has been sufficient to make the stock market soa

Just as no change was possible in ancient Egyptian society so long as the economic priesthood colluded to preserve the status quo, so the excesses and prevarications of the Financial Sector will continue so long as the regulators remain its cheerleaders.

Just listen to the chair of the Securities and Exchange Commission (SEC), Mary Jo White at Stanford University Rock Center for Corporate Governance speaking to directors. In her speech, she makes no secret of her view that the overall corporate arrangements are sound. The job of the SEC, as outlined in the speech, is to find the odd individual who might be doing something wrong. The idea that the large-scale activities of the major banks might be socially corrosive is not even alluded.

Thus in times of transformational technology, there is a huge expansion of investment, driven by the financial sector. Wealthy investors begin to expect outsized returns and so there is over-investment. The resulting bubbles in due course burst

Just as in ancient Egypt, no progress was possible so long as the myths and rituals of the economic priesthood and their offerings to the gods were widely accepted as real indicators of what was going on, so today no progress is possible so long as the myths and rituals of the modern economic priesthood still has a pervasive hold of people’s minds

In the modern economy, the myths and rituals of the economic priesthood are built on the notion that the purpose of a firm is to maximize shareholder value and the notion that if the share price is increasing, things are going well. These ideas are the intellectual underpinnings of the zero-sum activities of the financial sector for “making money out of money”, by whatever means possible

Like the myths and rituals of the priests of ancient Egypt, shareholder value theory is espoused with religious overtones. Shareholder value, which even Jack Welch has called “the dumbest idea in the world,” remains pervasive in business, even though it is responsible for massive offshoring of manufacturing, thereby destroying major segments of the US economy, undermining US capacity to compete in international markets and killing the economic recovery.

If instead society decides that the financial sector should concentrate on its socially important function of financing the real economy and providing financial security for an ever wider circle of citizens and enterprises, we could enjoy an era of growth and lasting prosperity.

Reading ability in kindergarten predicted reading, math and language skills later on; and math proficiency correlated with math and reading performance over time.

Measuring the impact of one skill on another, in addition to measuring growth in the same skill, provides more of a "whole child" perspective, Pace said. A child who enters school with little exposure to number sense or spatial concepts but with strong social skills may benefit from that emotional buffer.

Researchers expected to find that the effects of kindergarten readiness would wear off by third grade, the time when elementary school curriculum transitions from introducing foundational skills to helping students apply those skills as they delve deeper into content areas. But according to the study, children's performance in kindergarten continues to predict their performance in grades three through five.

The study also represents an opportunity to rethink what skills are considered measures of kindergarten-readiness, she said.

Unionization rates in the U.S. have declined for decades. "Unionization is highest in the public sector, but this has been challenged by state and local austerity since the recession in 2008-09," Warner said.

Warner said that the role of the federal government is to provide funds to states and local governments to support critical public services, such as schools and roads

While the federal government can play a redistributive role, as with the recent COVID relief package, this is less likely in states that have more corporate influence in their legislative policymaking,

"In the new political economy of place, the corporate interests undermine the potential for inclusive economic growth."

scientists have been monitoring the dwindling population of right whales in the North Atlantic.

the animals’ lengths have declined by roughly 7 percent since 1981

“We saw 5 and even 10-year-old whales that were about the size of 2-year-old whales,” Dr. Stewart said. In one case, an 11-year-old whale was the same size as a 1½-year-old whale.

Entanglement in fishing gear is an ever-present threat for the mammals and one of the primary drivers of their decline.

Whales who don’t drown or starve right away will often drag gear for several years.

“What we think is going on here is that dragging these big trailing heaps of gear is creating all this extra drag, which takes energy to pull around, and that’s energy that they would probably otherwise be devoting to growth,

​Smaller right whales are less resilient to climate change as they do not have the nutritional buffer they need to adapt during lean food years,”

the species can hardly afford declines in its birthrate.

“this population has recovered from very small numbers before, so it’s not completely grim.

“If we all were to demand these management changes of our elected officials the situation would change dramatically.”

They also found that being raised in a nurturing environment could significantly counteract the detrimental effect of early adversities on IQ and help children achieve their full intellectual potential.

A nurturing environment also led to better growth and fewer psycho-social difficulties in adolescence, but it did not mitigate the effects of early adversities on growth and psycho-social difficulties."

one in five children are raised in poverty and 15 percent do not complete high school, with higher rates for children in Black and Hispanic families.

Parents want to provide nurturing environments and we need to help them." She said this includes interacting with young children in a positive way such as reading children's books from the library, singing songs together, and playing games with numbers and letters. Children who engage in age-appropriate chores with adult supervision like picking up toys and clearing the table gain skills and feel good about helping.

"This research highlights the importance of nurturing caregivers, both at home and at school to help children lead more productive lives as adults."

when people think about themselves with others, they are more focused on the present, and less focused on the past or the future than when they think about themselves alone.

Time alone is reflected in people's thoughts as an opportunity to think about past experiences and future plans, to relax from the stress of social interactions, and to engage in self-selected leisure activities.

"Being alone and being with others are represented in people's minds as qualitatively different experiences, each contributing to the formation of an integrated self

For those facing current lockdowns alone, Uziel says the present findings, which highlight potential constructive effects of time alone, indicate that this could also be an opportunity for personal growth.

In each case, there was a failure of imagination, as Tom Friedman has noted. Warnings found little receptiveness among the public or government officials. We didn’t think what happened could happen. The presumption of progress bred complacency.

We fooled ourselves into thinking we had engineered permanent improvements in our social and economic systems.

To be fair, progress as it’s commonly understood — higher living standards — has not been at a standstill. Many advances have made life better

Similar inconsistencies and ambiguities attach to economic growth. It raises some up and pushes others down.

What we should have learned by now is that progress is often grudging, incomplete or contradictory.

Still, the setbacks loom ever larger. Our governmental debt is high, and economic stability is low. Many of the claims of progress turn out to be exaggerated, superficial, delusional or unattainable,

Sure, the Internet enables marvelous things. But it also imposes huge costs on society

Global warming is another example. It is largely a result of the burning of fossil fuels, which has been the engine of our progress. Now, it is anti-progress.

the lesson of both economic growth and technologies is that they are double-edged swords and must be judged as such.

What connects these various problems is the belief that the future can be orchestrated.

The reality is that our control over the future is modest at best, nonexistent at worst. We react more to events than lead them.

We worship at the altar of progress without adequately acknowledging its limits.

it does mean that we should be more candid about what is possible. If not, we might yet again wander over the “border between reality and impossibility.”

India presents a striking example of the limitations of pure economics. From 2003 to 2011, the world’s largest democracy was growing at a phenomenal rate, exceeding 9 percent each year between 2005 and 2008. Even after 2011, it kept up a reasonable rate of growth. However, since 2018, the economy seems to be spinning into a crisis, with growth declining to 4.5 percent, consumption in India’s vast rural sector declining at rates not seen since the late 1960s, and the overall unemployment rate at a 45-year high. The 2018 Accidental Deaths and Suicides in India Report, recently released by the National Crime Records Bureau, highlights a stark mood of despair: Since 2017, there has been a noticeable rise in the relative share of suicides by daily wage earners. They are among the poorest people in the economic ladder, thereby suggesting a rise in poverty.

A recent Harvard Business Review paper shows that if a company’s workers have a sense of belonging, they improve their job performance by 56 percent, with a 50 percent drop in churn and a 75 percent reduction in sick days. For a 10,000-person company, this would result in annual savings of more than $52 million. Extrapolate this to a nation, and you get a sense of why nations where large segments feel excluded do poorly.