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Javier E

Social Development and Weapons Propelled Human Achievement - NYTimes.com - 0 views

  • what was the prime mover, the dislodged stone that set this eventful cascade in motion? It was, perhaps, the invention of weapons — an event that let human ancestors escape the brutal tyranny of the alpha male that dominated ape societies.
  • The two principal traits that underlie the human evolutionary success, in Dr. Hill’s view, are the unusual ability of nonrelatives to cooperate — in almost all other species, only closely related individuals will help each other — and social learning, the ability to copy and learn from what others are doing. A large social network can generate knowledge and adopt innovations far more easily than a cluster of small, hostile groups constantly at war with each other, the default state of chimpanzee society.
  • the answer to how humans became unique lies in exploring how human societies first split away from those of apes.
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  • How did a chimplike society ever give rise to the egalitarian, largely monogamous structure of hunter-gatherer groups?
  • Dr. Chapais sees the transition as a series of accidents, each of which let natural selection exploit new opportunities. Early humans began to walk on two legs because it was a more efficient way of getting around than knuckle-walking, the chimps’ method. But that happened to leave the hands free. Now they could gesture, or make tools.
  • It was a tool, in the form of a weapon, that made human society possible
  • As soon as all males were armed, the cost of monopolizing a large number of females became a lot higher. In the incipient hominid society, females became allocated to males more equally. General polygyny became the rule, then general monogamy.
  • With only one mate, for the most part, a male had an incentive to guard her from other males to protect his paternity.
Javier E

Three Expensive Milliseconds - NYTimes.com - 0 views

  • society is devoting an ever-growing share of its resources to financial wheeling and dealing, while getting little or nothing in return.
  • How much waste are we talking about? A paper by Thomas Philippon of New York University puts it at several hundred billion dollars a year.
  • the share of G.D.P. accruing to bankers, traders, and so on has nearly doubled since 1980, when we started dismantling the system of financial regulation created as a response to the Great Depression.
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  • the financial industry has grown much faster than either the flow of savings it channels or the assets it manages.
  • Defenders of modern finance like to argue that it does the economy a great service by allocating capital to its most productive uses — but that’s a hard argument to sustain after a decade in which Wall Street’s crowning achievement involved directing hundreds of billions of dollars into subprime mortgages.
  • Wall Street’s friends also used to claim that the proliferation of complex financial instruments was reducing risk and increasing the system’s stability, so that financial crises were a thing of the past. No, really.
  • if our supersized financial sector isn’t making us either safer or more productive, what is it doing? One answer is that it’s playing small investors for suckers, causing them to waste huge sums in a vain effort to beat the market.
  • Another answer is that a lot of money is going to speculative activities that are privately profitable but socially unproductive.
  • n short, we’re giving huge sums to the financial industry while receiving little or nothing — maybe less than nothing — in return. Mr. Philippon puts the waste at 2 percent of G.D.P.
  • et even that figure, I’d argue, understates the true cost of our bloated financial industry. For there is a clear correlation between the rise of modern finance and America’s return to Gilded Age levels of inequality.
Javier E

With Uber, Less Reason to Own a Car - NYTimes.com - 0 views

  • if Uber and its ride-sharing competitors succeed, it wouldn’t be a stretch to see many small and midsize cities become transportation nirvanas on the order of Manhattan — places where forgoing car ownership isn’t just an outré lifestyle choice, but the preferred way to live.
  • “In many cities and even suburbs, it’s becoming much easier to organize your life car-free or car-lite,” said David A. King, an assistant professor of urban planning at Columbia University who studies technology and transportation. By car-lite, Dr. King means that instead of having one car for every driver, households can increasingly get by with owning just a single vehicle, thanks in part to tech-enabled services like Uber.
  • car-sharing services like Zipcar and bike-sharing services have already led to a significant net reduction of car ownership among users.
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  • though you may think of taxis as a competitor to subways and buses, several studies have found just the opposite.
  • The richest Americans do use taxis more often than middle-class Americans, but so do the poorest Americans, who rely heavily on taxis for trips that aren’t practical through public transportation — shopping trips that involve heavy parcels that wouldn’t be convenient to take on the bus, say, or a ride back home after a medical procedure.
  • Taxis and other car services are usually seen as the province of the rich, but that’s only partly true, studies show.
  • many taxi trips are “multimodal,” meaning that riders mix taxis with other forms of transportation. For instance, people from other boroughs might get to Manhattan by train, and then use cabs to return home late at night.
  • “The one-way travel of taxis allows people to use transit, share rides and otherwise travel without a car,” the researchers wrote. “In this way taxis act as a complement to these other modes and help discourage auto ownership and use.”
  • There’s only one problem with taxis: In most American cities, Dr. King found, there just aren’t enough of them. Taxi service is generally capped by regulation, and in many cities the number of taxis has not been increased substantially in decades
  • Ride-sharing services solve this problem in two ways. First, they substantially increase the supply of for-hire vehicles on the road, which puts downward pressure on prices. As critics say, Uber and other services do this by essentially evading regulations that cap taxis. This has led to intense skirmishes with regulators
  • But Uber has done more than increase the supply of cars in the taxi market. Thanks to technology, it has also improved their utility and efficiency. By monitoring ridership, Uber can smartly allocate cars in places of high demand, and by connecting with users’ phones, it has automated the paying process. When you’re done with an Uber ride, you just leave the car; there’s no fiddling with a credit card and no tipping. Even better, there’s no parking.
  • Compared with that kind of convenience, a car that you own — which you have to park, fill up, fix, insure, clean and pay for whether you use it or not — begins to seem like kind of a drag.
qkirkpatrick

Dutch MP Geert Wilders to show Muhammad cartoons on TV - BBC News - 0 views

  • Dutch anti-Islam politician Geert Wilders has said he will show cartoons of the Prophet Muhammad in a TV slot allocated to his party.
  • The cartoons were shown at an event in Texas last month which was attacked by two gunmen. Mr Wilders was a keynote speaker at the event.
  • Mr Wilders, who leads the Party for Freedom (PVV), has often expressed his distaste for Islam and mass immigration and has called for the Koran to be banned in the Netherlands.
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  • In December 2014 it was announced he would be prosecuted over allegations that he incited racial hatred against the country's Moroccan community.
  • There were widespread protests in 2006 when the Danish newspaper Jyllands-Posten published cartoons satirising the Prophet Muhammad.
Javier E

Why the Rich Are So Much Richer by James Surowiecki | The New York Review of Books - 0 views

  • Historically, inequality was not something that academic economists, at least in the dominant neoclassical tradition, worried much about. Economics was about production and allocation, and the efficient use of scarce resources. It was about increasing the size of the pie, not figuring out how it should be divided.
  • “Of the tendencies that are harmful to sound economics, the most seductive, and…the most poisonous, is to focus on questions of distribution.”
  • Stiglitz argues, what we’re stuck with isn’t really capitalism at all, but rather an “ersatz” version of the system.
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  • Stiglitz has made the case that the rise in inequality in the US, far from being the natural outcome of market forces, has been profoundly shaped by “our policies and our politics,” with disastrous effects on society and the economy as a whole. In a recent report for the Roosevelt Institute called Rewriting the Rules, Stiglitz has laid out a detailed list of reforms that he argues will make it possible to create “an economy that works for everyone.”
  • his entire career in academia has been devoted to showing how markets cannot always be counted on to produce ideal results. In a series of enormously important papers, for which he would eventually win the Nobel Prize, Stiglitz showed how imperfections and asymmetries of information regularly lead markets to results that do not maximize welfare.
  • He also argued that this meant, at least in theory, that well-placed government interventions could help correct these market failures
  • in books like Globalization and Its Discontents (2002) he offered up a stinging critique of the way the US has tried to manage globalization, a critique that made him a cult hero in much of the developing world
  • Stiglitz has been one of the fiercest critics of the way the Eurozone has handled the Greek debt crisis, arguing that the so-called troika’s ideological commitment to austerity and its opposition to serious debt relief have deepened Greece’s economic woes and raised the prospect that that country could face “depression without end.”
  • For Stiglitz, the fight over Greece’s future isn’t just about the right policy. It’s also about “ideology and power.
  • there’s a good case to be made that the sheer amount of rent-seeking in the US economy has expanded over the years. The number of patents is vastly greater than it once was. Copyright terms have gotten longer. Occupational licensing rules (which protect professionals from competition) are far more common. Tepid antitrust enforcement has led to reduced competition in many industries
  • The Great Divide is somewhat fragmented and repetitive, but it has a clear thesis, namely that inequality in the US is not an unfortunate by-product of a well-functioning economy. Instead, the enormous riches at the top of the income ladder are largely the result of the ability of the one percent to manipulate markets and the political process to their own benefit.
  • Inequality obviously has no single definition. As Stiglitz writes:There are so many different parts to America’s inequality: the extremes of income and wealth at the top, the hollowing out of the middle, the increase of poverty at the bottom. Each has its own causes, and needs its own remedies.
  • his preoccupation here is primarily with why the rich today are so much richer than they used to be.
  • the main reason people at the top are so much richer these days than they once were (and so much richer than everyone else) is not that they own so much more capital: it’s that they get paid much more for their work than they once did, while everyone else gets paid about the same, or less
  • while incomes at the top have risen in countries around the world, nowhere have they risen faster than in the US.
  • One oft-heard justification of this phenomenon is that the rich get paid so much more because they are creating so much more value than they once did
  • as companies have gotten bigger, the potential value that CEOs can add has increased as well, driving their pay higher.
  • Stiglitz will have none of this. He sees the boom in the incomes of the one percent as largely the result of what economists call “rent-seeking.”
  • from the perspective of the economy as a whole, rent-seeking is a waste of time and energy. As Stiglitz puts it, the economy suffers when “more efforts go into ‘rent seeking’—getting a larger slice of the country’s economic pie—than into enlarging the size of the pie.”
  • The work of Piketty and his colleague Emmanuel Saez has been instrumental in documenting the rise of income inequality, not just in the US but around the world. Major economic institutions, like the IMF and the OECD, have published studies arguing that inequality, far from enhancing economic growth, actually damages it. And it’s now easy to find discussions of the subject in academic journals.
  • . After all, while pretax inequality is a problem in its own right, what’s most destructive is soaring posttax inequality. And it’s posttax inequality that most distinguishes the US from other developed countries
  • All this rent-seeking, Stiglitz argues, leaves certain industries, like finance and pharmaceuticals, and certain companies within those industries, with an outsized share of the rewards
  • within those companies, the rewards tend to be concentrated as well, thanks to what Stiglitz calls “abuses of corporate governance that lead CEOs to take a disproportionate share of corporate profits” (another form of rent-seeking)
  • This isn’t just bad in some abstract sense, Stiglitz suggests. It also hurts society and the economy
  • It alienates people from the system. And it makes the rich, who are obviously politically influential, less likely to support government investment in public goods (like education and infrastructure) because those goods have little impact on their lives.
  • More interestingly (and more contentiously), Stiglitz argues that inequality does serious damage to economic growth: the more unequal a country becomes, the slower it’s likely to grow. He argues that inequality hurts demand, because rich people consume less of their incomes. It leads to excessive debt, because people feel the need to borrow to make up for their stagnant incomes and keep up with the Joneses. And it promotes financial instability, as central banks try to make up for stagnant incomes by inflating bubbles, which eventually burst
  • exactly why inequality is bad for growth turns out to be hard to pin down—different studies often point to different culprits. And when you look at cross-country comparisons, it turns out to be difficult to prove that there’s a direct connection between inequality and the particular negative factors that Stiglitz cites
  • This doesn’t mean that, as conservative economists once insisted, inequality is good for economic growth. In fact, it’s clear that US-style inequality does not help economies grow faster, and that moving toward more equality will not do any damage
  • Similarly, Stiglitz’s relentless focus on rent-seeking as an explanation of just why the rich have gotten so much richer makes a messy, complicated problem simpler than it is
  • When we talk about the one percent, we’re talking about two groups of people above all: corporate executives and what are called “financial professionals” (these include people who work for banks and the like, but also money managers, financial advisers, and so on)
  • The emblematic figures here are corporate CEOs, whose pay rose 876 percent between 1978 and 2012, and hedge fund managers, some of whom now routinely earn billions of dollars a year
  • Shareholders, meanwhile, had fewer rights and were less active. Since then, we’ve seen a host of reforms that have given shareholders more power and made boards more diverse and independent. If CEO compensation were primarily the result of bad corporate governance, these changes should have had at least some effect. They haven’t. In fact, CEO pay has continued to rise at a brisk rate
  • So what’s really going on? Something much simpler: asset managers are just managing much more money than they used to, because there’s much more capital in the markets than there once was
  • that means that an asset manager today can get paid far better than an asset manager was twenty years ago, even without doing a better job.
  • there’s no convincing evidence that CEOs are any better, in relative terms, than they once were, and plenty of evidence that they are paid more than they need to be, in view of their performance. Similarly, asset managers haven’t gotten better at beating the market.
  • More important, probably, has been the rise of ideological assumptions about the indispensability of CEOs, and changes in social norms that made it seem like executives should take whatever they could get.
  • It actually has important consequences for thinking about how we can best deal with inequality. Strategies for reducing inequality can be generally put into two categories: those that try to improve the pretax distribution of income (this is sometimes called, clunkily, predistribution) and those that use taxes and transfers to change the post-tax distribution of income
  • he has high hopes that better rules, designed to curb rent-seeking, will have a meaningful impact on the pretax distribution of income. Among other things, he wants much tighter regulation of the financial sector
  • t it would be surprising if these rules did all that much to shrink the income of much of the one percent, precisely because improvements in corporate governance and asset managers’ transparency are likely to have a limited effect on CEO salaries and money managers’ compensation.
  • Most importantly, the financial industry is now a much bigger part of the US economy than it was in the 1970s, and for Stiglitz, finance profits are, in large part, the result of what he calls “predatory rent-seeking activities,” including the exploitation of uninformed borrowers and investors, the gaming of regulatory schemes, and the taking of risks for which financial institutions don’t bear the full cost (because the government will bail them out if things go wrong).
  • The redistributive policies Stiglitz advocates look pretty much like what you’d expect. On the tax front, he wants to raise taxes on the highest earners and on capital gains, institute a carbon tax and a financial transactions tax, and cut corporate subsidies
  • It’s also about investing. As he puts it, “If we spent more on education, health, and infrastructure, we would strengthen our economy, now and in the future.” So he wants more investment in schools, infrastructure, and basic research.
  • The core insight of Stiglitz’s research has been that, left on their own, markets are not perfect, and that smart policy can nudge them in better directions.
  • Of course, the political challenge in doing any of this (let alone all of it) is immense, in part because inequality makes it harder to fix inequality. And even for progressives, the very familiarity of the tax-and-transfer agenda may make it seem less appealing.
  • the policies that Stiglitz is calling for are, in their essence, not much different from the policies that shaped the US in the postwar era: high marginal tax rates on the rich and meaningful investment in public infrastructure, education, and technology. Yet there’s a reason people have never stopped pushing for those policies: they worked
Javier E

As Putin Talks More Missiles and Might, Cost Tells Another Story - The New York Times - 0 views

  • “Everybody should understand that we are living in a totally different world than two years ago,” said Alexander M. Golts, an independent Russian military analyst.“In that world, which we lost, it was possible to organize your security with treaties, with mutual-trust measures,” he said. “Now we have come to an absolutely different situation, where the general way to ensure your security is military deterrence.” Advertisement Continue reading the main story
  • “The Russian Army is returning to normal combat activities and training,” said Igor Korotchenko, the editor in chief of National Defense, a monthly Russian magazine. “We are doing exactly what our Western partners are doing.”
  • From a Western point of view, Russia shattered the postwar, and certainly post-Cold War, European order by seizing Crimea and destabilizing Ukraine with a not-terribly-covert military program. That left former Soviet client states next door feeling vulnerable.
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  • Russia, which had long given up on military exercises, then started sending long-range bombers and fighter aircraft on patrol along the edges of European or American airspace. The West, and the United States in particular, felt the aggressive attitude warranted a military response. Hence, a new program of maneuvers and talk of deploying tanks and other heavy equipment.
  • “Russia has been making aggressive statements, insisting that it lives in a world of mutual military deterrence, while thinking that the West will not pay attention,” Mr. Golts said.But the West paid attention, he said, and Russia is not ready. It is one thing to use a force of up to 100,000 well-trained, well-booted soldiers to seize Crimea or even to destabilize a neighbor, but it is a very different matter to take on NATO, he noted.
  • Russia, lacking both the manpower and the weapons systems, will not be ready to do so any time soon, which is why Mr. Putin resorts to asymmetrical responses like nuclear weapons, analysts said.The war with Ukraine severed cooperation with some critical defense industries there, while Western sanctions cut off some technology used in military applications, like microchips.
  • The steep drops in the price of oil and the value of the ruble mean Russia is facing a recession this year, although recent figures suggest it will not be as bad as originally anticipated.
  • Yuriy Borisov, a deputy defense minister, told the Moskovsky Komsomolets newspaper this year that the military had underestimated how much it would need to spend to acquire new Armata tanks. Mr. Putin had pledged the government would buy 2,300 by 2020.“We miscalculated on the Armata,” Mr. Borisov was quoted as saying. “The money allocated for that project turns out to be too little.” Production costs are 250 percent higher than anticipated, he said, without further details
  • He and other analysts suggested that maintaining the image of a robust military being resupplied on schedule was a political necessity, speaking to the large constituency that supports Mr. Putin because he has promised to restore Russia to its great power status.
Javier E

Wall Street's Dead End - NYTimes.com - 0 views

  • the glory days of publicly traded companies dominating the American business landscape may be over. The number of companies listed on the major domestic exchanges peaked in 1997 at more than 7,000, and it has been falling ever since. It’s now down to about 4,000 companies, and given its steep downward trend will surely continue to shrink.
  • the stock market is becoming little more than a place for speculators and algorithms to compete over who can trade his way to the most money.
  • What the market is not doing so well is its core public function: allocating capital efficiently.
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  • the companies in which people most want to invest, technology stars like Facebook and Twitter, are managing to avoid the public markets entirely by raising hundreds of millions or even billions of dollars privately. You and I can’t buy into these companies; only very select institutions and well-connected individuals can. And companies prefer it that way.
  • A private company’s stock isn’t affected by the unpredictable waves of the stock market as a whole. Its chief executive can concentrate on running the company rather than answering endless questions from investors, analysts and the press.
  • That burden comes largely from the Securities and Exchange Commission, which was created in the wake of the 1929 stock-market crash to protect small investors. But if the move to private markets continues, small investors aren’t going to need much protection any more: they’ll be able to invest in only a relative handful of companies anyway.
  • Only the biggest and oldest companies are happy being listed on public markets today. As a result, the stock market as a whole increasingly fails to reflect the vibrancy and heterogeneity of the broader economy. To invest in younger, smaller companies, you increasingly need to be a member of the ultra-rich elite.
  • At risk, then, is the shareholder democracy that America forged, slowly, over the past 50 years.
Javier E

Libya, Limited Government, and Imperfect Duties | Cato @ Liberty - 0 views

  • What I find striking is the background assumption that whether the United States military has a role to play here is taken to be a simple function of how much we care about other people's suffering. One obvious answer is that caring or not caring simply doesn't come into it: That the function of the U.S. military is to protect the vital interests of the United States, and that it is for this specific purpose that billions of tax dollars are extracted from American citizens, and for which young men and women have volunteered to risk their lives. It is not a general-purpose pool of resources to be drawn on for promoting desirable outcomes around the world. A parallel argument is quite familiar on the domestic front, however. Pick any morally unattractive outcome or situation, and you will find someone ready to argue that if the federal government plausibly could do something to remedy it, then anyone who denies the federal government should act must simply be indifferent to the problem. My sense is that many more people tend to find this sort of argument convincing in domestic affairs precisely because we seem to have effectively abandoned the conception of the federal government as an entity with clear and defined powers and purposes. We debate whether a particular program will be effective or worth the cost, but over the course of the 20th century, the notion that such debates should be limited to enumerated government functions largely fell out of fashion. Most people—or at least most public intellectuals and policy advocates—now seem to think of Congress as a kind of all-purpose problem solving committee. And I can't help but suspect that the two are linked. Duties and obligations may be specific, but morality is universal: Other things equal, the suffering of a person in Lebanon counts just as much as that of a person in Lebanon, Pennsylvania. Once we abandon the idea of a limited government with defined powers—justified by reference to a narrow set of functions specified in advance—and instead see it as imbued with a general mandate to do good, it's much harder for a moral cosmopolitan to resist making the scope of that mandate global, at least in principle.
  • Stipulate, purely for the sake of argument, that Americans do have some collective obligation to prevent suffering elsewhere in the world, and that this obligation is properly met, at least in part, via government. (Perhaps because governments are uniquely able to remedy certain kinds of suffering—such as those requiring the mobilization of a military.) Given that we have finite resources, surely the worst possible way to go about this is by making a series of ad hoc judgments about particular cases—the "how much do I care about Steve?" method. The refusal to consider whatever global duty we might have holistically is precisely what leads to irrational allocations—like spending billions to protect civilians and rebel troops in Libya when many more lives would be saved (again, let's suppose for the sake of argument) by far less costly malaria eradication efforts. Unless there's an argument that we have some specific or special obligation to people in Libya—and I certainly haven't seen it—then any claim about our obligation to intervene in this case is, necessarily, just a specific application of some broader principle about our obligation to alleviate global suffering generally. The suggestion that we ought to evaluate this case in a vacuum, then, starts to seem awfully strange, because if we are ever going to intervene for strictly humanitarian reasons (rather than to protect vital security interests), then the standard for when to do so has to be, in part, a function of the aggregate demands whatever standard we pick would place on our limited resources.
  • We all know that individuals often make quite different choices on a case-by-case basis than when they formulate general rules of action based on a longer view. We routinely make meta-choices designed to prevent ourselves from making micro-choices not conducive to our interests in the aggregate: We throw out the smokes and the sweets in the cupboard, and even install software that keeps us from surfing the Internet when we're trying to get work done. Faced with a Twinkie or a hilarious YouTube clip, we may predict that we will often make choices that, when they're all added up, conflict with our other long-term goals. Marketers, by contrast, often try to induce us to make snap decisions or impulse purchases when, in a cool hour of deliberation, we'd conclude their product isn't the best use of our money.
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  • A marketer who hopes to trigger an impulse buy can legitimately say he's giving consumers what they choose, but there's a clear sense in which someone acting in accordance with a general rule, formulated with a view to long-term tradeoffs, often chooses in a more deliberative and fully autonomous fashion than someone who does what seems most appealing in each case unfettered by such rules.
  • Something analogous, I want to suggest, can be said about democratic deliberation. A polity can establish broad and general principles specifying the conditions under which government may or should act, or it can vote on individual policies and programs on a case-by-case basis (with many gradations in between, of course). Both are clearly in some sense "democratic"; the proper balance between them will depend in part on one's theory about how democratic deliberation confers legitimacy, just as the weight an individual gives to different types of "choices" will turn on a view about the nature of rational autonomy
Javier E

A New Report Argues Inequality Is Causing Slower Growth. Here's Why It Matters. - NYTim... - 0 views

  • Is income inequality holding back the United States economy? A new report argues that it is, that an unequal distribution in incomes is making it harder for the nation to recover from the recession
  • The fact that S.&P., an apolitical organization that aims to produce reliable research for bond investors and others, is raising alarms about the risks that emerge from income inequality is a small but important sign of how a debate that has been largely confined to the academic world and left-of-center political circles is becoming more mainstream.
  • “Our review of the data, as well as a wealth of research on this matter, leads us to conclude that the current level of income inequality in the U.S. is dampening G.D.P. growth,” the S.&P. researchers write
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  • To understand why this matters, you have to know a little bit about the many tribes within the world of economics.
  • There are the academic economists who study the forces shaping the modern economy. Their work is rigorous but often obscure. Some of them end up in important policy jobs (See: Bernanke, B.) or write books for a mass audience (Piketty, T.), but many labor in the halls of academia for decades writing carefully vetted articles for academic journals that are rigorous as can be but are read by, to a first approximation, no one.
  • Then there are the economists in what can broadly be called the business forecasting community. They wear nicer suits than the academics, and are better at offering a glib, confident analysis of the latest jobs numbers delivered on CNBC or in front of a room full of executives who are their clients. They work for ratings firms like S.&P., forecasting firms like Macroeconomic Advisers and the economics research departments of all the big banks.
  • they are trying to do the practical work of explaining to clients — companies trying to forecast future demand, investors trying to allocate assets — how the economy is likely to evolve. They’re not really driven by ideology, or by models that are rigorous enough in their theoretical underpinnings to pass academic peer review. Rather, their success or failure hinges on whether they’re successful at giving those clients an accurate picture of where the economy is heading.
  • worries that income inequality is a factor behind subpar economic growth over the last five years (and really the last 15 years) is going from an idiosyncratic argument made mainly by left-of center economists to something that even the tribe of business forecasters needs to wrestle with.
  • Because the affluent tend to save more of what they earn rather than spend it, as more and more of the nation’s income goes to people at the top income brackets, there isn’t enough demand for goods and services to maintain strong growth, and attempts to bridge that gap with debt feed a boom-bust cycle of crises, the report argues. High inequality can feed on itself, as the wealthy use their resources to influence the political system toward policies that help maintain that advantage, like low tax rates on high incomes and low estate taxes, and underinvestment in education and infrastructur
  • The report itself does not break any major new analytical or empirical ground. It spends many pages summarizing the findings of various academic and government economists who have studied inequality and its discontents, and stops short of recommending any radical policy changes
Emilio Ergueta

Obama said gun owners would support his new restrictions. He was right. - The Washingto... - 0 views

  • President Obama rolled out a package of executive actions on guns this week. The changes included clarifying rules meant to broaden the use of background checks by private sellers, allocating money for mental health treatment, and adding more staff at the FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives to help enforce existing regulations.
  • A new CNN-ORC survey of 1,000 Americans finds that the public supports Obama's plan by a 2-to-1 ratio: 67 percent of respondents favored the executive actions, while 32 percent opposed them. Even more striking, a similar share of people in gun-owning households -- 63 percent -- supported the measures.
  • The actions would be supported by an "overwhelming majority of the American people, including gun owners," he said Monday.
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  • 51 percent of Republicans support Obama's executive action on guns
Javier E

Opinion | A Better Path to Universal Health Care - The New York Times - 0 views

  • Germany offers a health insurance model that, like Canada’s, results in far less spending than in the United States, while achieving universal, comprehensive coverage
  • this model, pioneered by Chancellor Otto von Bismarck in 1883, was the first social health insurance system in the world. It has since been copied across Europe and Asia, becoming far more common than the Canadian single-payer model.
  • Germans are required to have health insurance, but they can choose between more than 100 private nonprofit insurers called “sickness funds.” Workers and employers share the cost of insurance through payroll taxes, while the government finances coverage for children and the unemployed.
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  • Insurance plans are not tied to employers. Services are funded through progressive taxation, so access is based on need, not ability to pay, and financial contributions are based on wealth, not health.
  • Contributions to sickness funds are centrally pooled and then allocated to individual insurers using a per-beneficiary formula that factors in differences in health risks.
  • Compared with the mostly fee-for-service, single-payer arrangements in Canada or the Medicare system, enrolling Americans in managed care plans paid on a per-patient basis would offer greater incentives to increase efficiency, improve quality of care and promote coordination of care.
  • The United States has the foundation for this kind of system. Its Social Security and Medicare systems use taxation to pay for social insurance policies, and the health care exchanges created by the Affordable Care Act provide marketplaces for insurance policies.
  • In Germany, for example, insurers can charge only small out-of-pocket fees limited to 2 percent or less of household income annually
  • Editors’ PicksYou Know the Lorena Bobbitt
  • Under a German-style plan, states could still be given flexibility in regulating nonprofit insurers to reflect regional priorities, similar to the flexibility offered to states in managing Medicaid and the A.C.A. exchanges.
  • Germany, Austria, the Netherlands and other countries with similar systems vastly underspend the United States.
  • Americans may be concerned that lower spending reflects rationing of care, but research has consistently found that not to be the case
  • Administrative and governance costs in multipayer systems are higher than in single-payer systems — 5 percent of health spending in Germany compared with 3 percent in Canada.
  • While recent polls indicate that a majority of Americans support so-called Medicare for all, approval diminishes when the plan is explained or clarified.
  • Americans have long valued choice and competition in their health care. The German model offers both: Patients choose private insurers that compete for enrollees, in the process driving innovation and improving quality.
  • Advocates and policymakers should pick carefully among these paths, choosing one that strikes a balance between what is possible and what is ideal for the United States health system
  • While the single-payer model serves Canada well, transitioning the United States to a multipayer model like Germany’s would require a far smaller leap. And that might encourage Americans to finally make the jump
Javier E

The climate crisis is our third world war. It needs a bold response | Joseph Stiglitz |... - 0 views

  • Advocates of the Green New Deal say there is great urgency in dealing with the climate crisis and highlight the scale and scope of what is required to combat it. They are right
  • An even better analogy would be the country’s mobilization to fight World War II.
  • Critics ask, “Can we afford it?” and complain that Green New Deal proponents confound the fight to preserve the planet, to which all right-minded individuals should agree, with a more controversial agenda for societal transformation. On both accounts the critics are wrong.
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  • The climate emergency is our third world war. Our lives and civilization as we know it are at stake, just as they were in the second world war.
  • When the US was attacked during the second world war no one asked, “Can we afford to fight the war?” It was an existential matter. We could not afford not to fight it. The same goes for the climate crisis.
  • We will pay for climate breakdown one way or another, so it makes sense to spend money now to reduce emissions rather than wait until later to pay a lot more for the consequences – not just from weather but also from rising sea levels. It’s a cliche, but it’s true: an ounce of prevention is worth a pound of cure.
  • The war on the climate emergency, if correctly waged, would actually be good for the economy – just as the second world war set the stage for America’s golden economic era , with the fastest rate of growth in its history amidst shared prosperity
  • The Green New Deal would stimulate demand, ensuring that all available resources were used; and the transition to the green economy would likely usher in a new boom.
  • The biggest challenge will be marshalling the resources for the Green New Deal. In spite of the low “headline” unemployment rate, the United States has large amounts of under-used and inefficiently allocated resources.
  • The ratio of employed people to those of working age in the US is still low, lower than in our past, lower than in many other countries, and especially low for women and minorities
  • Together with better education and health policies and more investment in infrastructure and technology – true supply side policies – the productive capacity of the economy could increase, providing some of the resources the economy needs to fight and adapt to the climate breakdown.
  • Almost surely, however, there will have to be a redeployment of resources to fight this war just as with the second world war, when bringing women into the labor force expanded productive capacity but it did not suffice.
  • America is lucky: we have such a poorly designed tax system that’s regressive and rife with loopholes that it would be easy to raise more money at the same time that we increase economic efficiency. Taxing dirty industries, ensuring that capital pays at least as high a tax rate as those who work for a living, and closing tax loopholes would provide trillions of dollars to the government over the next 10 years, money that could be spent on fighting the climate emergency.
  • the creation of a national Green Bank would provide funding to the private sector for climate breakdown – to homeowners who want to make the high-return investments in insulation that enables them to wage their own battle against the climate crisis, or businesses that want to retrofit their plants and headquarters for the green economy
Javier E

Biden's Climate Plan: A Mini Green New Deal - The Atlantic - 0 views

  • It’s remarkable: A number of polls suggest that Democratic voters now consider climate change to be a top-tier issue, as important as health care
  • That revolution’s main objective: achieving a “100% clean energy economy” in the United States by the year 2050. It’s an ambitious goal, both more stringent and longer-sighted than what the previous Democratic White House—which Biden unfailingly calls the “Obama-Biden administration”—pledged under the Paris Agreement on climate change.
  • Today Inslee debuted a plan to reenter the Paris Agreement and enshrine climate at the center of U.S. diplomacy. It runs more than 50 pages single-spaced.
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  • To meet its old Paris target, the United States had to cut its annual carbon emissions by 1.3 percentage points every year from 2016 to 2025. To meet the 2050 goal, it must cut at more than double that rate—2.9 percentage points—for each of the next 31 years.
  • This program would go hand in hand with her also just debuted “Green Manufacturing Plan,” which promises to allocate $1.5 trillion in federal spending for climate-friendly technology. She would also use federal power to encourage other countries to purchase this new American gear.
  • Warren calls this issue “economic patriotism.” Under its banner, the senator from Massachusetts and presidential candidate proposes a huge new program of climate-friendly manufacturing investment, meant to turn the United States back into a major industrial exporter.
  • Inslee earlier outlined his aim to decarbonize some parts of the U.S. economy by the 2030s, and he has endorsed some aspects of the Green New Deal. Representative Alexandria Ocasio-Cortez, the Green New Deal’s champion, told a reporter yesterday that Inslee’s plan is the “golden standard.” (Inslee’s plan is also untainted by plagiarism accusations.)
  • Essentially, Warren wants to bring Germany or South Korea’s mixed-economy model to the United States and then point it at the challenge of climate change.
  • they show how the window of political possibility has already moved significantly, such that Biden’s $1.5 trillion in climate-focused federal spending can start to seem moderate to right-wing observers.
  • In the Washington Examiner yesterday, the conservative writer Tiana Lowe paid relatively high praise to Biden’s plan. Unlike the Green New Deal, she said, Biden’s proposal is “not insane,” but a “legitimate, big-boy climate change plan” in its own right.
  • “If nothing were executed into action here except for the international aspect, nuclear research and development, and the infrastructure developments that [Biden] details, it would do more to decrease greenhouse gas emissions in real life than any $93 trillion Green New Deal,” Lowe wrote.
  • actual supporters of a Green New Deal, who know a victory when they see one. In the opinion of the youth-led Sunrise Movement, Biden’s plan is far better than the “middle ground” proposal he was considering last month. “We forced [Biden] to backtrack and today, he put out a comprehensive climate plan that praises the Green New Deal,” it tweeted yesterday
Javier E

This Is Not a Market | Dissent Magazine - 0 views

  • Given how ordinary people use the term, it’s not surprising that academic economists are a little vague about it—but you’ll be glad to hear that they know they’re being vague. A generation of economists have criticized their colleagues’ inability to specify what a “market” actually is. George Stigler, back in 1967, thought it “a source of embarrassment that so little attention has been paid to the theory of markets.” Sociologists agree: according to Harrison White, there is no “neoclassical theory of the market—[only] a pure theory of exchange.” And Wayne Baker found that the idea of the market is “typically assumed—not studied” by most economists, who “implicitly characterize ‘market’ as a ‘featureless plane.’
  • When we say “market” now, we mean nothing particularly specific, and, at the same time, everything—the entire economy, of course, but also our lives in general. If you can name it, there’s a market in it: housing, education, the law, dating. Maybe even love is “just an economy based on resource scarcity.”
  • The use of markets to describe everything is odd, because talking about “markets” doesn’t even help us understand how the economy works—let alone the rest of our lives. Even though nobody seems to know what it means, we use the metaphor freely, even unthinkingly. Let the market decide. The markets are volatile. The markets responded poorly. Obvious facts—that the economy hasn’t rebounded after the recession—are hidden or ignored, because “the market” is booming, and what is the economy other than “the market”? Well, it’s lots of other things. We might see that if we talked about it a bit differently.
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  • 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.
  • 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.
  • 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
  • We know the traffic system because, whether we like it or not, we are always involved in it, from birth
  • 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.
Javier E

What Bitcoin Reveals About Financial Markets - The New York Times - 0 views

  • the Bitcoin bubble should finally destroy our faith in the efficiency of markets.
  • Since the 1970s, economic policy has been based on the idea that financial market prices reflect all the information relevant to the value of any asset. If this is true, market prices are the best estimates of the value of any investment and financial markets should be relied on to allocate capital investment.
  • the efficient market hypothesis remains a background assumption of much central-bank and economic policy.
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  • a widely held theory, known as the “great moderation,” that suggested that major economic crises were a thing of the past, thanks to certain systemic changes in the way developed nations ran their economies. The theory was backed by leading economists and central bankers. Asset-backed derivatives were, ultimately, a bet on the great moderation.
  • The contrast with Bitcoin is stark. The Bitcoin bubble rests on no plausible premise.
  • the new claim is that Bitcoin is a “store of value” and that its price reflects its inherent scarcity. (By design, no more than 21 million Bitcoins can be created.)
  • For a while, Bitcoin was used for transactions that people wanted to keep secret from government authorities, like drug deals. It soon became apparent, however, that if authorities wanted to track these transactions, they could.
  • If Bitcoin is a “store of value,” then asset prices are entirely arbitrary. As the proliferation of cryptocurrencies has shown, nothing is easier than creating a scarce asset.
  • Suppose, more plausibly, that Bitcoin has no underlying value and will eventually become worthless. According to the efficient market hypothesis, financial markets will correctly estimate the true value of Bitcoin and will drive the price to zero immediately. Advertisement Continue reading the main story But that hasn’t happened either.
  • we must not lose sight of a more fundamental — and more worrisome — development: A financial product with a purely arbitrary value has been successfully introduced in the world’s most sophisticated financial markets.
Javier E

Trump doesn't deserve credit for all the economic good news - The Washington Post - 0 views

  • He is president of the United States, not the world. And the economic surprises in the rest of the world have been more favorable than those in America. The scale of upward revisions of growth forecasts for 2017 and 2018 has been higher in Europe, Japan, China and emerging markets broadly than for the United States. Many other stock markets have outperformed those here.
  • If Trump’s pro-business policies were driving the global economy, one would expect an increase in net capital flows into the United States, and so a stronger dollar. In fact, the dollar has weakened significantly in the past year, despite more Federal Reserve tightening than was anticipated at the beginning of 2017.
  • Complacency about the economy can be a self-denying prophecy when it leads to excessive valuations, lending and spending. We are surely closer to such a point than we were a year ago. Sooner or later, another downturn will come
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  • If and when recession comes, the world will have much less room than usual to maneuver.
  • At the political level, the kind of agreement forged in London in 2009 between the G20 group of most developed countries to keep markets open, support international institutions and cooperate to stimulate their economies seems much more difficult to achieve today. And there is the real risk in many countries that recession would reinforce tendencies toward authoritarian nationalist politics.
  • If the short-run concern of those gathered in Davos will be how the world will deal with the next recession, the long-run one has to be declining appeal of democratic global values. In countries as diverse as the United States, Britain, Turkey, Russia, Israel and China, it appears that the governmental platform that commands the most popular support is rooted in nativism, nationalism and negativism. Populist nationalism eventually produces bad economic results, leading to more pressures for anti-establishment leadership and extreme policies.
  • The world can accept a message that the United States wants a fairer allocation of the burden of upholding the global system, that after a period of weak economic performance America needs to concentrate more efforts at home, and that it will be guided by its economic and security interests, not the promotion of abstract values.
  • But such a message needs to be accompanied by clear signals that the United States will strive to be a reliable and predictable partner, that it understands its interest in strong effective global institutions and that it recognizes that even self-interested nations can benefit from thoughtful diplomacy
jayhandwerk

President Trump is playing politics with the 2020 Census. It could backfire. - The Wash... - 0 views

  • The 2020 Census is set to take place at a time of political turmoil, when Americans are experiencing a crisis in confidence in federal institutions. Unfortunately, the census is likely to exacerbate that crisis, because the Trump administration has enlisted it in the work of maintaining Republican political control.
  • An accurate count of the American people is the foundation of much of our politics: Everything from the allocation of congressional seats to billions of dollars in federal funds is determined by how many heads are counted and where
  • The Trump administration’s attempt to game the census by adding a last-minute question about citizenship to the questionnaire may have the intended effect of intimidating immigrants who would otherwise turn out to be counted
Javier E

The College Board's Problematic Changes to AP World - The Atlantic - 0 views

  • The petition emphasizes that the decision “removes HUGE amounts of history”—eras that, while accounting for only40 percent of AP World’s total current course work, comprise some 95 percent of human history since the development of agriculture and set the trajectories of civilizations for thousands of years to come. That history includes the technological advancements and environmental transformation that arose during humans’ migration from Africa to regions around the world; the rise of the Persian empire, the Qin dynasty, Teotihuacan in modern-day Mexico, and the Puebloan People in what today is the southwestern U.S.; and the birth of some of the world’s major religions, including Confucianism, Hinduism, and Christianity.
  • This class “is probably the only real chance [high-school students] are going to get to learn the African and American and Asian history before European colonization,”
  • “It’s so cool for students to learn [the third period] because it’s the one time in history that Europe wasn’t the big dog—it was in the Dark Ages while the rest of the world was innovating.”
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  • In whittling the course down to a relatively minuscule phase of humanity’s existence, critics like DoAmaral argue, the College Board is effectively threatening to deprive kids of the insight that can be drawn from the thousands of years of human experience that predated the era of Euro and Anglo dominance
  • Students, he said, would benefit from understanding the history of the world’s populations before Europeans’ so-called discovery of their lands—that those populations’ narratives began far before they were exploited and depleted by colonial powers.
  • In response to the backlash, Packer announced last Thursday that while the College Board still intends to narrow the exam’s scope, it will consult with experts in considering “a coherent inclusion of essential concepts from period 3.” The College Board will report on its game plan in mid-July.
  • “It is not the point of this class to delve deeply into any one history, but to show how the common history of the world came about.”
  • the exclusion of pre-1450-A.D. material from the AP exam could discourage even the most dedicated teachers from prioritizing that material in class. “How can we allocate the amount of time that periods one to three require if it will not be tested?” he asked. “We can’t.”
Javier E

Bernie Sanders is FDR's unimaginative echo - The Washington Post - 0 views

  • Sanders delivered a Washington speech explaining, in effect, that socialism is as American as a piece of frozen apple pie with a slice of processed cheese. Doing so, however, he demonstrated that “socialism” is a classification that no longer classifies.
  • What Sanders then offered as forward-looking socialism was a warmed-over version of what President Franklin D. Roosevelt advocated 75 years ago.
  • A young adult — a member of the demographic supposedly most sympathetic to socialism — who attended Sanders’s exegesis of socialism told the Times: “In America we embrace a lot of socialist policies already, like public education and parks.” This understanding of socialism as any government provision of public goods puts Horace Mann (1796-1859), an advocate of public education, and Frederick Law Olmsted (1822-1903), designer of New York City’s Central Park, in the socialist pantheo
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  • Sanders says “what I mean by democratic socialism” is “economic rights are human rights.”
  • Many young people who supposedly are making socialism a “major force” think it is sociability: everyone being nice to everyone.
  • Sen. Elizabeth (“I have a plan for that”) Warren (D-Mass.), who describes herself as a “capitalist to my bones,” is a more authentic socialist than Sanders because she has more granular plans for government power (a.k.a. politics) to supplant market forces in the allocation of wealth and opportunity
Javier E

Seeds, kale and red meat once a month - how to eat the diet that will save the world | ... - 0 views

  • By 2050, there will be about 10 billion of us, and how to feed us all, healthily and from sustainable food sources, is something that is already being looked at
  • The Norway-based thinktank Eat and the British journal the Lancet have teamed up to commission an in-depth, worldwide study, which launches at 35 different locations around the world today, into what it would take to solve this problem
  • Their solution is contingent on global efforts to stabilise population growth, the achievement of the goals laid out in the Paris Agreement on climate change and stemming worldwide changes in land use, among other things
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  • The initial report presents a flexible daily diet for all food groups based on the best health science, which also limits the impact of food production on the planet
  • The Eat-Lancet report posits that the global food system is broken. From the numbers quoted alone, it is hard to disagree: more than 2 billion people are micronutrient deficient, and almost 1 billion go hungry, while 2.1 billion adults are overweight or obese
  • Unhealthy diets are, it says, “the largest global burden of disease”, and pose a greater risk to morbidity and mortality than “unsafe sex, alcohol, drug, and tobacco use combined”
  • we are not (yet) extinct, but we have an era named after us. And what we are eating has a lot to do with that. Food production, the report states, “is the largest source of environmental degradation”.
  • It has identified a daily win-win diet – good for health, good for the environment – that is loosely based on the much-lauded Mediterranean diet, but with fewer eggs, less meat and fish, and next to no sugar.
  • it does include a range of foodstuff types that are adaptable, in theory, to the cuisines (potato or cassava; palm-oil-based, say, or soy-rich) and primary dietary restrictions (omnivore, no pork, pescatarian, vegetarian, vegan) found across the world
  • the daily ration of red meat stands at 7g (with an allowable range of 0-14g); unless you are creative enough to make a small steak feed two football sides and their subs, you will only be eating one once a month.
  • you are allocated little more than two chicken breast fillets and three eggs every fortnight and two tins of tuna or 1.5 salmon fillets a week
  • Per day, you get 250g of full-fat milk products (milk, butter, yoghurt, cheese): the average splash of milk in not very milky tea is 30g
  • The diet functions on the basis of 2,500 kcal daily,
  • It is still more food – way, way more – than two billion people currently have access to.
  • The future served up on a plate Monday
  • Breakfast: Porridge (made with water) with 1 tbsp honey or maple syrup, topped with nuts and seeds, and one piece of fruit; one cup of tea or coffee with milk
  • Lunch: Fennel, avocado, spinach and broccoli salad with feta and mustard and plant-oil dressing with one slice of sourdough bread, plus one plain yoghurt pot with a handful of berries
  • Dinner: Roast red cabbage and red lentil dahl with rice
  • Snack: Sugar-free ricecakes with nut butter.
  • Tuesday Breakfast: Two eggs with two slices wholemeal toast and Marmite
  • Lunch: Barley or other wholegrain salad with smoked mackerel, seeds
  • radishes, celery, chickpeas, herbs, oil and lemon juice dressing; one piece of fruit.
  • Dinner: One baked sweet potato with salsa, cavolo nero, avocado, black beans, grated cheese and a dollop of sour cream.
  • Snack: One handful of roasted chickpeas.
  • Wednesday Breakfast: Two slices of wholemeal toast with one sliced banana and honey; one cup of tea or coffee with milk.
  • Lunch: Spicy miso noodle soup with tofu, radishes, leafy greens and poached egg (that’s your quota for two weeks used up: no eggs for you next week); small pot of plain yoghurt
  • Dinner: Steamed veg (kale, broccoli and carrot) with a yoghurt and fresh herb dressing and olive oil, root veg and bean mash.
  • Snack: Cannellini bean dip with red pepper sticks
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