Group items tagged

The strange thing about the economics profession over the last 35 year is that there has been two strands: One very strongly focusing on the limitations of the market, and then another saying how wonderful markets were. Unfortunately too much attention was being paid to that second strand.

What can we do about it? We've had this very strong strand that is focused on the limitations and market imperfections. A very large fraction of the younger people, this is what they want to work on. It's very hard to persuade a young person who has seen the Great Recession, who has seen all the problems with inequality, to tell them inequality is not important and that markets are always efficient. They'd think you're crazy.

there are two major things I would focus on: one is education. When you don't have equality of opportunity because you don't have equal access to education, it just seems so outrageous. It weakens our economy and leads to more inequality. We have a locale-based education system, we have increasing economic segregation, we clearly need a larger federal program to try to help disadvantaged districts.

The second major issue: 50 years after the march on Washington, 150 years after the end of slavery, we still are suffering from the legacy of that, and we have problems of inclusion. Racial inclusion, gender inclusion, and that dimension of inequality is so undermining of our society

We're so far out of line with the other advantaged countries. Those are two things that I think are the most striking in the sense that they are inconsistent with deeply held values and are leading to both more inefficiency and more inequality.

the absence of limits on the amount individuals or corporations can donate has contributed to the ongoing erosion of public confidence in the political process in the UK, according to one watchdog organization. "When donors are making contributions exceeding £20,000 ($31,000) -- and some are making donations well over £250,000 ($390,000) -- it's perfectly understandable you don't give away that kind of money without expecting something in return,"

n Norway, government funding accounted for 74% of political parties' income in 2010, according to Statistics Norway. And unlike in the U.S., where candidates and their supporters can buy as much television time as they can afford, political ads are banned from television and radio.

Corruption monitors say the lack of public funding in India, the world's largest democracy, has contributed to a staggering influx of under the table corporate contributions to candidates that has undercut the integrity of recent elections.

Intelligence reports received by India's Electoral Commission suggested that upwards of $2 billion in so-called "black money" will be spent to influence the Uttar Pradesh state elections this year, according to Anupama Jha, executive director of TI India."Everybody knows about black money," Jha told CNN. "Corporations are expected to donate no more than 5 percent of their profits, but they pay more than that under the table. Those who donate funds also control the politicians, and the politicians (become) more accountable to their sponsors than to their constituents."

ut it's not just corporate black money that's a problem, but the buying of votes in poor areas with hard cash, and sometimes with smuggled liquor.

In the 2009 election in Tamil Nadu, a state with a population roughly the size of France, 33.4% of voters received money from candidates' supporters for their vote, according to a poll by India's Centre of Media Studies -- and in 2011, voters were lured to the polls with blenders, grinders and other household appliances.

"This is why good people don't want to contest elections ... so ultimately you vote for corrupt people, because those are the only people you have to choose from."

While there are no limitations on the amount U.S. political parties can spend on televison ads, broadcast time in Russia is doled out on a limited basis, and is proportionate to the results of the last election.

"There are two sets of rules in Russia -- one set for parties who are paying out of their own pockets, and another for the party and candidates with access to public resources," says Elena Panfilova, head of TI Russia.

The parties try to hijack whatever they can hijack in Russia," Panfilova told CNN

Roughly $2 billion was spent by parties and candidates in the 2010 presidential election, according to Claudio Weber Abramo, executive director of TI Brazil.

Nearly 98% of winner Dilma Rouseff's campaign donations -- and 95.5% of her main opponent's -- came from corporations, says Abramo.Abramo says corporations donated 99.04% of all money spent in Sao Paulo, Brazil's most populous state, during the 2010 election -- a reflection mainly of voters' apathy and politicians' failure to form relationships with their constituents.

"The distribution of money reveals something deeper in the Brazilian political landscape, which is that citizens are not very much concerned about supporting parties and having a political life."While some observers want to ban corporate spending outright, Abramo says that will only make it harder to track corporate influence on politics in the country."The interests are still there even if you prohibit corporations from donating to candidates above the board," he told CNN. "They will do it in a hidden way, and they will lose visibility."

no reliable information exists for how much money was spent during the 2011 presidential election in Nigeria.

While Nigerian law gives the country's election commission the right to set a maximum spending limit for parties, the commission neglected to do so before the 2011 election, according to Magnus Ohman."Parties can do whatever they want, there's no limit to the amount they can spend," Ohman told CNN. "Candidates do have limits, but the money they get from their parties is excluded from that limit."

2011 elections were hailed as a step forward in Nigeria's evolution as a young democracy, the lack of restraint on political spending is a worrying development for election monitors."It really was an expensive election not only at a presidential level but also at the gubernatorial level, especially down in the south," said Ohman. "It's an electoral system where you need to spend."

UK corruption monitor Chandu Krishnan says an ever-increasing amount of money in elections is a global problem."In many countries across the world, the cost of elections is increasing," he told CNN. "If parties and politicians can't find the resources from the state, there is an increasing desperation to seek them from private sources -- and that is where the corruption comes in."

this idea and its implications stir more controversy among criminologists than any other. Would you state your position as precisely as possible in this brief space?

Latzer: First of all, culture and race, in the biological or genetic sense, are very different. Were it not for the racism of the 18th and 19th centuries, we might not have had a marked cultural difference between blacks and whites in the U.S. But history cannot be altered, only studied and sometimes deplored. 28 28

Different groups of people, insofar as they consider themselves separate from others, share various cultural characteristics: dietary, religious, linguistic, artistic, etc. They also share common beliefs and values. There is nothing terribly controversial about this. If it is mistaken then the entire fields of sociology and anthropology are built on mistaken premises.

With respect to violent crime, scholars are most interested in a group's preference for violence as a way of resolving interpersonal conflict. Some groups, traditionally rural, developed cultures of “honor”—strong sensitivities to personal insult. We see this among white and black southerners in the 19th century, and among southern Italian and Mexican immigrants to the U.S. in the early 20th century. These groups engaged in high levels of assaultive crimes in response to perceived slights, mainly victimizing their own kind.

This honor culture explains the high rates of violent crime among African Americans who, living amidst southern whites for over a century, incorporated those values. When blacks migrated north in the 20th century, they transported these rates of violence. Elijah Anderson's book, The Code of the Streets, describes the phenomenon, and Thomas Sowell, in Black Liberals and White Rednecks, helps explain it. 28 28

Theories of crime that point to poverty and racism have the advantage of explaining why low-income groups predominate when it comes to violent crime. What they really explain, though, is why more affluent groups refrain from such crime. And the answer is that middle-class people (regardless of race) stand to lose a great deal from such behavior.

Likewise, the lead removal theory. The same "lead-free" generation that engaged in less crime from 1993 on committed high rates of violent crime between 1987 and 1992.

Frum: Let’s flash forward to the present day. You make short work of most of the theories explaining the crime drop-off since the mid-1990s: the Freakonomics theory that attributes the crime decline to easier access to abortion after 1970; the theory that credits reductions in lead poisoning; and the theory that credits the mid-1990s economic spurt. Why are these ideas wrong? And what would you put in their place? 28 28

both the abortion and leaded-gasoline theories are mistaken because of a failure to explain the crime spike that immediately preceded the great downturn. Abortions became freely available starting in the 1970s, which is also when lead was removed from gasoline. Fast-forward 15 to 20 years to the period in which unwanted babies had been removed from the population and were not part of the late adolescent, early adult, cohort. This cohort was responsible for the huge spike in crime in the late 1980s, early 1990s, the crack cocaine crime rise. Why didn't the winnowing through abortion of this population reduce crime?

The cultural explanation for violence is superior to explanations that rest of poverty or racism, however, because it can account for the differentials in the violent-crime rates of groups with comparable adversities

As for economic booms, it is tempting to argue that they reduce crime on the theory that people who have jobs and higher incomes have less incentive to rob and steal. This is true. But violent crimes, such as murder and manslaughter, assault, and rape, are not motivated by pecuniary interests. They are motivated by arguments, often of a seemingly petty nature, desires for sexual conquest by violence in the case of rape, or domestic conflicts, none of which are related to general economic conditions

Rises in violent crime have much more to do with migrations of high-crime cultures, especially to locations in which governments, particularly crime-control agents, are weak.

Declines are more likely when crime controls are strong, and there are no migrations or demographic changes associated with crime rises

In short, the aging of the violent boomer generation followed by the sudden rise and demise of the crack epidemic best explains the crime trough that began in the mid-1990s and seems to be continuing even today.

Contrary to leftist claims, strengthened law enforcement played a major role in the crime decline. The strengthening was the result of criminal-justice policy changes demanded by the public, black and white, and was necessitated by the weakness of the criminal justice system in the late ‘60s

On the other hand, conservatives tend to rely too much on the strength of the criminal-justice system in explaining crime oscillations, which, as I said, have a great to do with migrations and demographics

The contemporary challenge is to keep law enforcement strong without alienating African Americans, an especially difficult proposition given the outsized violent-crime rates in low-income black communities.

Frum: The sad exception to the downward trend in crime since 1990 is the apparent increase in mass shootings

Should such attacks be included in our thinking about crime? If so, how should we think about them? 28 28

If we separate out the ideologically motivated mass killings, such as Orlando (apparently) and San Bernardino, then we have a different problem. Surveilling potential killers who share a violent ideology will be extremely difficult but worthwhile. Limiting the availability of rapid-fire weapons with high-capacity ammunition clips is also worth doing, but politically divisive.

of course, developments abroad will affect the number of incidents, as will the copycat effect in the immediate aftermath of an incident. This is a complex problem, different from ordinary killings, which, by the way, take many more lives.

Polly Toynbee, a columnist for the left-leaning Guardian newspaper, said that the murder of a public official could not be seen as an isolated episode. “It occurs against a backdrop of an ugly public mood in which we have been told to despise the political class, to distrust those who serve, to dehumanize those with whom we do not readily identify,” Ms. Toynbee wrote.

there are others whose recklessness has been open and shocking. I believe they bear responsibility, not for the attack itself, but for the current mood: for the inflammatory language, for the finger-jabbing, the dog whistling and the overt racism.”

rebels do not necessarily have all that much in common with one another, let alone with the remainders of the religious right. The Trump-voting “deplorable” is likely to be a cultural evangelical but not a churchgoer, or a pro-choice lapsed Catholic who never cared for religious moralists. The typical “manosphere” denizen is something else entirely — younger, tech-savvy, impious, impressed with his own unblinking Darwinism. As constituent parts of cultural conservatism, these groups don’t form a particularly coherent whole; what unites them are common fears (feminism, political correctness, sometimes Islam), not a common cause.

Moreover, his provocations tend to actually work, in the sense that they summon up the illiberal, “shut up or we’ll shut you down” side of left-wing politics.

for a cultural conservatism united only by a shared outsider sensibility, neither consistency nor propriety are consensus virtues any longer — and indecency in the service of attacking liberalism is no vice.

But that hasn’t happened. Builders have gone recruiting in high schools and elsewhere, looking for people willing to learn building skills, but they’re not having much luck.

Construction is hard, many families demean physical labor and construction is highly cyclical. Hundreds of thousands of people lost construction jobs during the financial crisis and don’t want to come back. They want steadier work even at a lower salary.

The essential point is that immigrants don’t take native jobs on any sort of one-to-one basis. They drive economic activity all the way down the river, creating new jobs in some areas and then pushing native workers into more complicated jobs in others.

the labor shortage hasn’t led to higher wages; it’s reduced and distorted the flow of the economic river. There’s less home buying, less furniture buying, less economic activity. People devote a larger share of their income to housing and less to everything else. When builders do have workers, they focus on high-end luxury homes, leaving affordable housing high and dry.

A comprehensive study of non-European Union immigrants into Denmark between 1991 and 2008 found that immigrants did not push down wages, but rather freed natives to do more pleasant work.

An exhaustive U.S. study by the National Academy of Sciences found that immigration didn’t drive down most wages, but it had a “very small” and temporary effect on native-born workers without a high school degree.

Spending millions of dollars repairing infrastructure that a prior politician inaugurated is rarely politically appealing

2) Poor water systems = opportunities for direct political control of services

In political science, this is called clientelism, which is the exchange of a material good or resource — food, cash, public services — for the vote.

Politicians can exchange services for votes in water systems that are not digitized or updated; low-level workers are able to respond to political bosses quickly, moving water services, by pressing manual levers, to one community and taking it from another.

3) Higher water prices = political suicide.

Industries that relied on stable water supplies also engaged in political lobbying.

These new political coalitions used print and radio ads to brand “infrastructure maintenance” as a sign of their governing success

U.S. cities and neighborhoods can learn something from Mexico’s experience building broad-based political coalitions in the face of decaying infrastructure. Politics can interfere with reliable water access, but when infrastructure is part of a good-governance platform, politics can also be part of the solution.

So Ailes came up with a brilliantly cynical strategy. He created a conservative news channel that dispensed with objectivity, and sometimes with facts, while claiming it was more objective — “Fair and Balanced” — than the competition.

Baker believes that most media is hopelessly biased, Journal staffers say. He views his critics as liberal whiners, and his approach as the fair and balanced one.

I happen to agree that liberal bias can be a media problem. On important issues — abortion, education, parenting and religion, to name a few — left-leaning beliefs too often distort coverage. The Journal, and every newspaper, should indeed fight that problem.

But that’s very different from saying reporters protect any political party. They don’t. Journalists’ incentives and instincts all point the other way. Which is why the media reported so aggressively on Hillary Clinton’s emails, damaging her badly.

has there ever been a more important time for sophisticated and fearless financial journalism?

At Stanford more than elsewhere, the university and business forge a borderless community in which making money is considered virtuous and where participants profess a sometimes inflated belief that their work is changing the world for the better

Faculty members commonly invest in start-ups launched by their students or colleagues. There are probably more faculty millionaires at Stanford than at any other university in the world.

In his twelve years as president, Stanford’s endowment has grown to nearly seventeen billion dollars. In each of the past seven years, Stanford has raised more money than any other American university.

But Stanford’s entrepreneurial culture has also turned it into a place where many faculty and students have a gold-rush mentality and where the distinction between faculty and student may blur as, together, they seek both invention and fortune.

A quarter of all undergraduates and more than fifty per cent of graduate students are engineering majors. At Harvard, the figures are four and ten per cent; at Yale, they’re five and eight per cent.

many students uncritically incorporate the excesses of Silicon Valley, and that there are not nearly enough students devoted to the liberal arts and to the idea of pure learning. “The entire Bay Area is enamored with these notions of innovation, creativity, entrepreneurship, mega-success,” he says. “It’s in the air we breathe out here. It’s an atmosphere that can be toxic to the mission of the university as a place of refuge, contemplation, and investigation for its own sake.”

Stanford is not the only university to adopt this approach to learning—M.I.T., among others, does, too. But Kelley’s effort is widely believed to be the most audacious. His classes stress collaboration across disciplines and revolve around projects to advance social progress. The school concentrates on four areas: the developing world; sustainability; health and wellness; and K-12 education.

Feeling dejected or unhappy in a place like Stanford causes one to feel abnormal and out-of-place, so we may tend to internalize and brood over this lack of happiness instead of productively addressing the situatio

his principal academic legacy may be the growth of what’s called “interdisciplinary education.” This is the philosophy now promoted at the various schools at Stanford—engineering, business, medicine, science, design—which encourages students from diverse majors to come together to solve real or abstract problems. The goal is to have them become what are called “T-shaped” students, who have depth in a particular field of study but also breadth across multiple disciplines. Stanford hopes that the students can also develop the social skills to collaborate with people outside their areas of expertise. “Ten years ago, ‘interdisciplinary’ was a code word for something soft,” Jeff Koseff says. “John changed that.”

Among the bolder initiatives to create T-students is the Institute of Design at Stanford, or the d.school, which was founded seven years ago and is housed in the mechanical-engineering department.

Distance learning threatens one day to disrupt higher education by reducing the cost of college and by offering the convenience of a stay-at-home, do-it-on-your-own-time education. “Part of our challenge is that right now we have more questions than we have answers,” Hennessy says, of online education. “We know this is going to be important and, in the long term, transformative to education. We don’t really understand how yet.”

financial aid has produced a campus of diverse students who are unburdened by student debt—and who thus don’t have to spend the first five years of their career earning as much money as they can.

“The kinds of project we put in front of our students don’t have right and wrong answers,” Greenberg says. “They have good, better, and really, really better.”

he was impressed by “the bias toward action” at the d.school. Newspapers have bureaucracy, committees, hierarchies, and few engineers, he said. At the Post, “diversity” was defined by ethnicity and race. At the d.school, diversity is defined by majors—by people who think different.

Byers has kept in touch with Systrom and Krieger and remembers them as “quiet and quite humble,” by which he means that they were outstanding human beings who could get others to follow them. They were, in short, T-students.

The United States has “two types of college education that are in conflict with each other,” he said. One is “the classic liberal-arts model—four years of relative tranquility in which students are free to roam through disciplines, great thoughts, and great works with endless options and not much of a rationale.” The second is more utilitarian: “A college degree is expected to lead to a job, or at least to admission to a graduate or professional school.” The best colleges divide the first two years into introductory courses and the last two into the study of a major, all the while trying to expose students to “a broad range of disciplines and modes of thought.” Students, he declared, are not broadly educated, not sufficiently challenged to “search to know.” Instead, universities ask them to serve “the public, to work directly on solutions in a multidisciplinary way.” The danger, he went on, is “that academic researchers will not only embrace particular solutions but will fight for them in the political arena.” A university should keep to “its most fundamental purpose,” which is “the disinterested pursuit of truth.

Stanford, along with its peers, is now justifying its existence mostly in terms of what it can do for humanity and improve the world,” he answered. “I am concerned that a research-intense university will become too result-oriented,” a development that risks politicizing the university. And it also risks draining more resources from liberal arts

students spent too much time networking and strategizing and becoming “slaves to the dictates of a hoped-for future,” and too little time being spontaneous. “Stanford students are superb consequentialists—that is, we tend to measure the goodness of actions by their eventual results,

We excel at making rational calculations of expected returns to labor and investment, which is probably why so many of us will take the exhortation to occupy Wall Street quite literally after graduation. So before making any decision, we ask one, very simple question: What will I get out of it?”

“At most great universities, humanities feel like stepchildren,”

The long-term value of an education is to be found not merely in the accumulation of knowledge or skills but in the capacity to forge fresh connections between them, to integrate different elements from one’s education and experience and bring them to bear on new challenges and problems. . . . Yet we were struck by how little attention most departments and programs have given to cultivating this essential capacity. We were also surprised, and somewhat chagrined, to discover how infrequently some of our students exercise it. For all their extraordinary energy and range, many of the students we encountered lead curiously compartmentalized lives, with little integration between the different spheres of their experience.

Instead of erecting buildings, Andreessen says, Stanford should invest even more of its resources in distance learning: “We’re on the cusp of an opportunity to deliver a state-of-the-art, Stanford-calibre education to every single kid around the world. And the idea that we were going to build a physical campus to reach a tiny fraction of those kids was, to me, tragically undershooting our potential.”

In late January, a popular d.school class, Entrepreneurial Design for Extreme Affordability, taught by James M. Patell, a business-school professor, consisted of thirty-seven graduate and three undergraduate students from thirteen departments, including engineering, political science, business, medicine, biology, and education. It was early in the quarter, and Patell offered the students a choice of initial projects. One was to create a monitoring system to help the police locate lost children. Another was to design a bicycle-storage system.

The “key question,” he says, is: “How can we increase efficiency without decreasing quality?”

online education might also disrupt everything that distinguishes Stanford. Could a student on a video prompter have coffee with a venture capitalist? Could one become a T-student through Web chat? Stanford has been aligned with Silicon Valley and its culture of disruption. Now Hennessy and Stanford have to seriously contemplate whether more efficiency is synonymous with a better education.

if you look at 2002 to 2007 and you observe the structural forces at play in that business expansion -- mainly that the middle class income dropped, that very, very few jobs were created and that the higher value-added jobs tended for the most part to be replaced by lower paying ones -- those trends became pronounced in the 2009 recovery onwards. That suggests that this is a deep structural problem with the way globalization and technology is impacting the majority of the American workforce. I'm agnostic as to whether this reduces America's overall growth rate. The gains of growth are so deeply skewed to the very highest earners. But there is a lot of evidence in studies of other economies that when you have gross, Latin American-style inequality, growth and competitiveness tend to get advertsely hit.

Conard said Baker was undercounting the social benefits of investment. He looks, in particular, at agriculture, where, since the 1940s, the cost of food has steadily fallen because of a constant stream of innovations. While the businesses that profit from that innovation — like seed companies and fast-food restaurants — have made their owners rich, the average U.S. consumer has benefited far more. Conard concludes that for every dollar an investor gets, the public reaps up to $20 in value. This is crucial to his argument: he thinks it proves that we should all appreciate the vast wealth of others more, because we’re benefiting, proportionally, from it.

What about investment banks, with their complicated financial derivatives and overleveraged balance sheets? Conard argues that they make the economy more efficient, too. The financial crisis, he writes, was not the result of corrupt bankers selling dodgy financial products. It was a simple, old-fashioned run on the banks, which, he says, were just doing their job

He argues that collateralized-debt obligations, credit-default swaps, mortgage-backed securities and other (now deemed toxic) financial products were fundamentally sound. They were new tools that served a market need for the world’s most sophisticated investors,

“A lot of people don’t realize that what happened in 2008 was nearly identical to what happened in 1929,” he says. “Depositors ran to the bank to withdraw their money only to discover, like the citizens of Bedford Falls” — referring to the movie “It’s a Wonderful Life” — “that there was no money in the vault. All that money had been lent.”

In 2008 it was large pension funds, insurance companies and other huge institutional investors that withdrew in panic. Conard argues in retrospect that it was these withdrawals that led to the crisis — not, as so many others have argued, an orgy of irresponsible lending

Conard concedes that the banks made some mistakes, but the important thing now, he says, is to provide them even stronger government support. He advocates creating a new government program that guarantees to bail out the banks if they ever face another run.

the central role of banks, Conard says, is to turn the short-term assets of nervous savers into risky long-term loans that help the economy grow.

we live longer, healthier and richer lives because of countless microimprovements like that one. The people looking for them, Conard likes to point out, are not only computer programmers, engineers and scientists. They are also wealthy investors like him

As Conard told me, one of the crucial lessons he learned at Bain is that it makes no sense to look for easy solutions. In a competitive market, all that’s left are the truly hard puzzles. And they require extraordinary resources. While we often hear about the greatest successes — penicillin, the iPhone — we rarely hear about the countless failures and the people and companies who financed them.

A central problem with the U.S. economy, he told me, is finding a way to get more people to look for solutions despite these terrible odds of success. Conard’s solution is simple. Society benefits if the successful risk takers get a lot of money

He said the only way to persuade these “art-history majors” to join the fiercely competitive economic mechanism is to tempt them with extraordinary payoffs.

When I look around, I see a world of unrealized opportunities for improvements, an abundance of talented people able to take the risks necessary to make improvements but a shortage of people and investors willing to take those risks. That doesn’t indicate to me that risk takers, as a whole, are overpaid. Quite the opposite.” The wealth concentrated at the top should be twice as large, he said. That way, the art-history majors would feel compelled to try to join them.

he expressed anger over the praise that Warren Buffett has received for pledging billions of his fortune to charity. It was no sacrifice, Conard argued; Buffett still has plenty left over to lead his normal quality of life. By taking billions out of productive investment, he was depriving the middle class of the potential of its 20-to-1 benefits. If anyone was sacrificing, it was those people. “Quit taking a victory lap,” he said, referring to Buffett. “That money was for the middle class.”

Unlike Romney, Conard rejects the notion that America has “some monopoly on hard work or entrepreneurship.” “I think it’s simple economics,” he said. “If the payoff for risk-taking is better, people will take more risks

Conard sees the success of the U.S. economy as, in part, the result of a series of historic accidents. Most recently, the coincidence of Roe v. Wade and the late 1970s economic malaise allowed Ronald Reagan to unify social conservatives and free-market advocates and set the country on a pro-investment path for decades. Europeans, he says, made all the wrong decisions. Concern about promoting equality and protecting favored industries have led to onerous work rules, higher taxes and all sorts of social programs that keep them poorer than Americans.

Now we’re at a particularly crucial moment, he writes. Technology and global competition have made it more important than ever that the United States remain the world’s most productive, risk-taking, success-rewarding society. Obama, Conard says, is “going to dampen the incentives.” Even worse, Conard says, “he’s slowing the accumulation of equity” by fighting income inequality.

Conard’s book addresses what is perhaps the most important question in economics, the one Adam Smith set out to answer in “The Wealth of Nations”: Why do some countries grow so rich and others stay poor? Where you come down on the answer has as much to do with your politics as your economic worldview (two things that can often be the same)

Nearly every economist I spoke with said that Conard has too much faith in the market’s ability to reward only those who create real value. Conard, for instance, insists that even the dodgiest financial products must have been beneficial or else nobody would have bought them in the first place. If a Wall Street trader or a corporate chief executive is filthy rich, Conard says that the merciless process of economic selection has assured that they have somehow benefited society. Even pro-market Romney supporters take issue with this. “Ed ought to be more concerned about crony capitalism,” Hubbard told me.

“Unintended Consequences” ignores some of the most important economic work of the past few decades, about how power and politics influence economic growth. In technical language, this field is the study of “rent seeking,” in which people or companies get rich because of their power, not because of their ideas.

wealthy individuals and corporations are able to influence politicians and regulators to make seemingly insignificant changes to regulations that benefit themselves. In other words, to rig the game

Conard’s version of the financial crisis ignores much reporting and analysis — including work I’ve done with NPR’s “Planet Money” team — that shows that some of the nation’s largest banks actively manipulated customers and regulators and, sometimes, their own stockholders to profit from dangerous risk

Rather than simply serving as an invitation for everybody to engage in potentially beneficial risk-taking, inequality can allow those with wealth to crush new ideas.

Perhaps concentrated wealth will inspire a nation of innovative problem-solvers. But if the view of many economists is right — that it sometimes discourages innovation — then we should worry

on this one he resorted to anecdotes and gut feelings. During his work at Bain, he said, he saw that successful companies had to battle against one another. Nobody was just given a free ride because of their power. “Was a person, like me, excluded from opportunity?” he asked rhetorically. “If so, I wasn’t aware!”

both could be true. The rich could earn a great deal of wealth through their own hard work, skill and luck. They could also use their subsequent influence to make themselves even richer

One of the great political and economic challenges of our time is figuring out the balance between wealth that benefits society and wealth that distorts.

Glenn Hubbard said only that at a broad level, Romney and Conard share “beliefs about innovation and growth and responsible risk-taking.”

Conard and Romney certainly share views on numerous policy matters. Like many Republicans, they promote lower taxes and less regulation for those who achieve financial succes

the Internet is a wonder when it comes to generating “cheap fun.” But because “so many of its products are free,” and because so much of a typical Web company’s work is “performed more or less automatically by the software and the servers,” the online world is rather less impressive when it comes to generating job growth.

the more purely digital a company’s product, the fewer jobs it tends to create and the fewer dollars it can earn per user

From the lowbrow to the highbrow, LOLcats to Wikipedia, vast amounts of Internet content are created by people with no expectation of remuneration. The “new economy,” in this sense, isn’t always even a commercial economy at all. Instead, as Slate’s Matthew Yglesias has suggested, it’s a kind of hobbyist’s paradise, one that’s subsidized by surpluses from the old economy it was supposed to gradually replace.

Despite nearly two decades of dot-com enthusiasm, the information sector is still quite small relative to other sectors of the economy; it currently has one of the nation’s higher unemployment rates; and it’s one of the few sectors where unemployment has actually risen over the last year.

None of this makes the Internet any less revolutionary. But it’s created a cultural revolution more than an economic one.

High powered jobs come with high-powered workloads, high-powered commitments and, often, high-powered salaries. If that's what a person -- male or female, kids or no kids -- chooses, trade-offs will always be involved, whether you're trading your sleep, your health, your leisure time, your social life, or time with your kids.

any reasonable adult would explain that the world does not revolve around one particular person; that the child can't be two places at the same time; that she must choose one activity or the other; and that, in so choosing, she gains one opportunity but forfeits another.

How does a smart woman like Slaughter still believe in the childlike notion that people (of either gender) can have whatever they want whenever they want it, regardless of life's intrinsic constraints?

I work from home three days a week and am away at my office the other two, and as far as my son is concerned, my being home is no different from my being at the office. Am I spending quality time with my son when I'm working from home? No. I'm working! Would I get any work done if I were interacting with my son while trying to focus and write on deadline? Of course not.

So why do women with choices have such a hard time accepting this? Thirty years ago women used to complain that they wanted "a wife." Now that women like Slaughter have wives (in the guise of her husband who, functioning as a single dad, took care of two kids and the entire household every weekday for two years while he also held down a job and earned a living), they don't like being the husband very much. To their surprise, it turns that husbands don't "have it all" either. And Slaughter is mad as hell to have worked this hard and given up so much only to discover that being the husband kind of sucks. Being the husband requires far more compromise than she and many high-powered women ever imagined.

Most women, given the luxury of choice, might or might not decide to work in some capacity, but they wouldn't decide to be high-powered executives, even if they had the talent, education, and opportunity to do so. As Slaughter discovered about her own desires, they'd rather be doing the carpools and play dates and volunteering at school and staying home when their child has strep throat without suffering massive amounts of guilt. They don't want to die young and look ten years older than their actual age because of undue amounts of stress trying to keep up with their kids' lives and hold down a demanding job at the same time.

Just as Slaughter wants it both ways, so does the rhetoric around gender. Look at the recent covers of this magazine. On the one hand, women are told that they're superior to men (Hanna Rosin's "The End of Men," Kate Bolick's there's-a-scarcity-of-men-in-my-league "All the Single Ladies") and in the same breath, that they're victims of them (Slaughter's piece).

The real problem is that technology has made it possible to work 24/7, so that the boundary between work and our personal lives has disappeared. Our cubicles are in our pockets, at the dinner table, next to our beds and even next to our children's beds as we're tucking them in. In many households, one income isn't enough, and both men and women have to work long hours -- longer hours than ever before -- to make ends meet.

The problem here is that many people work too much -- not just women, and not just parents.

“access is not a panacea,” said Danah Boyd, a senior researcher at Microsoft. “Not only does it not solve problems, it mirrors and magnifies existing problems we’ve been ignoring.”

children of parents who do not have a college degree spend 11.5 hours each day exposed to media from a variety of sources, including television, computer and other gadgets. That is an increase of 4 hours and 40 minutes per day since 1999.

Children of more educated parents, generally understood as a proxy for higher socioeconomic status, also largely use their devices for entertainment. In families in which a parent has a college education or an advanced degree, Kaiser found, children use 10 hours of multimedia a day, a 3.5-hour jump since 1999.

“Despite the educational potential of computers, the reality is that their use for education or meaningful content creation is minuscule compared to their use for pure entertainment,” said Vicky Rideout, author of the decade-long Kaiser study. “Instead of closing the achievement gap, they’re widening the time-wasting gap.”

Having preserved the Union and saved white workers from competing with slave labor, the North could magnanimously acquiesce to such Confederate meretriciousness and the concomitant irrelevance of the country’s blacks. That interpretation served the North too, for it elided uncomfortable questions about the profits reaped by the North from Southern cotton, as well as the North’s long strategy of appeasement and compromise, stretching from the Fugitive Slave Act back to the Constitution itself.

for my community, the message has long been clear: the Civil War is a story for white people—acted out by white people, on white people’s terms—in which blacks feature strictly as stock characters and props. We are invited to listen, but never to truly join the narrative, for to speak as the slave would, to say that we are as happy for the Civil War as most Americans are for the Revolutionary War, is to rupture the narrative. Having been tendered such a conditional invitation, we have elected—as most sane people would—to decline.

With a firm foothold in the public memory and in the academic history, the comfortable narrative found its most influential expression in the popular media. Films like Birth of a Nation and Gone With the Wind revealed an establishment more interested in the alleged sins perpetrated upon Confederates than in the all-too-real sins perpetrated upon the enslaved people in their midst. That predilection continues. In 2010’s The Conspirator, the director Robert Redford’s Mary Surratt is the preferred victim of political persecution—never mind those whose very lives were persecution.

“It was because we failed to do the thing we really have a genius for, which is compromise,” said Foote, neglecting to mention the Missouri Compromise, the Fugitive Slave Act, the Kansas-­Nebraska Act, and the fact that any further such compromise would have meant the continued enslavement of black people.

Wilson executed a familiar act of theater—urging the country’s white citizens away from their history, while continuing to act in the spirit of its darkest chapters. Wilson’s ideas were not simply propaganda, but notions derived from some of the country’s most celebrated historians. James McPherson notes that titans of American history like Charles Beard, Avery Craven, and James G. Randall minimized the role of slavery in the war; some blamed the violence on irreconcilable economic differences between a romantic pastoral South and a capitalistic manufacturing North, or on the hot rhetoric of radical abolitionists.

The celebrated Civil War historian Bruce Catton best sums up this sense when he refers to the war as “a consuming tragedy so costly that generations would pass before people could begin to say whether what it had bought was worth the price.” All of those “people” are white. For African Americans, war commenced not in 1861, but in 1661, when the Virginia Colony began passing America’s first black codes, the charter documents of a slave society that rendered blacks a permanent servile class and whites a mass aristocracy. They were also a declaration of war.

African Americans understood they were at war, and reacted accordingly: run­ning away, rebelling violently, fleeing to the British, murdering slave-catchers, and—less spectacularly, though more significantly—refusing to work, breaking tools, bending a Christian God to their own interpretation, stealing back the fruits of their labor, and, in covert corners of their world, committing themselves to the illegal act of learning to read. Southern whites also understood they were in a state of war, and subsequently turned the ante­bellum South into a police state

In our present time, to express the view of the enslaved—to say that the Civil War was a significant battle in the long war against bondage and for government by the people—is to compromise the comfortable narrative. It is to remind us that some of our own forefathers once explicitly rejected the republic to which they’d pledged themselves, and dreamed up another country, with slavery not merely as a bug, but as its very premise. It is to point out that at this late hour, the totems of the empire of slavery—chief among them, its flag—still enjoy an honored place in the homes, and public spaces, of self-professed patriots and vulgar lovers of “freedom.” It is to understand what it means to live in a country that will never apologize for slavery, but will not stop apologizing for the Civil War.

For the portion of the country that still honors, or traces its ancestry to, the men who fired on Fort Sumter, and thus brought war, the truthful story of the Civil War tells of a defeat richly deserved, garnered in a pursuit now condemned. For the blameless North, it throws up the failed legacy of appeasement of slaveholders, the craven willingness to bargain on the backs of black people, and the unwillingness, in the Reconstruction years, to finish what the war started.

For realists, the true story of the Civil War illuminates the problem of ostensibly sober-minded compromise with powerful, and intractable, evil. For radicals, the wave of white terrorism that followed the war offers lessons on the price of revolutionary change. White Americans finding easy comfort in nonviolence and the radical love of the civil-rights movement must reckon with the unsettling fact that black people in this country achieved the rudi­ments of their freedom through the killing of whites.

Confronted with the realization that the Civil War is the genesis of modern America, in general, and of modern black America, in particular, we cannot just implore the Park Service and the custodians of history to do more outreach—we have to become custodians ourselves.

“At root,” Wilson wrote in 1985 in The Public Interest, “in almost every area of important concern, we are seeking to induce persons to act virtuously, whether as schoolchildren, applicants for public assistance, would-be lawbreakers or voters and public officials.”

When Wilson wrote about character and virtue, he didn’t mean anything high flown or theocratic. It was just the basics, befitting a man who grew up in the middle-class suburbs of Los Angeles in the 1940s: Behave in a balanced way. Think about the long-term consequences of your actions. Cooperate. Be decent.

It was habituated by practicing good manners, by being dependable, punctual and responsible day by day.

he emphasized that character was formed in groups. As he wrote in “The Moral Sense,” his 1993 masterpiece, “Order exists because a system of beliefs and sentiments held by members of a society sets limits to what those members can do.”

Wilson set out to learn how groups created a good order, why that order sometimes frayed.

In “The Moral Sense,” he brilliantly investigated the virtuous sentiments we are born with and how they are cultivated by habit. Wilson’s broken windows theory was promoted in an essay with George Kelling called “Character and Community.” Wilson and Kelling didn’t think of crime primarily as an individual choice. They saw it as something that emerged from the social psychology of a community. When neighborhoods feel disorganized and scary, crime increases.

Wilson argued that American communities responded to the stresses of industrialization by fortifying self-control.

But America responded to the stresses of the information economy by reducing the communal buttresses to self-control, with unfortunate results.

Wilson was not a philosopher. He was a social scientist. He just understood that people are moral judgers and moral actors, and he reintegrated the vocabulary of character into discussions of everyday life.

The Syrians failed to build Syria, the Egyptians failed to build Egypt, the Libyans failed to build Libya, the Yemenis failed to build Yemen. Those are even bigger problems because, as their states have been stressed or fractured, no one knows how they’ll be put back together again.

In Europe, the supranational project did not work, and now, to a degree, Europe is falling back into individual states.

In the Arab world, the national project did not work, so some of the Arab states are falling back onto sects, tribes, regions and clans.