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marleymorton

Dimon Says U.S. Future 'Very Bright' If Trump Can Enact Reforms - 0 views

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    JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon expressed broad optimism for U.S. growth and his own industry if Donald Trump's administration succeeds in reshaping taxes and regulation. Still, he said, international crises could pose risks.
Javier E

Russian Orthodox Church Joins in Calls for Election Reform - NYTimes.com - 0 views

  • “It’s amazing that this awakening of civic consciousness has affected the church as well, and not just lay people but clergy, too,” Sergei Chapnin, editor of the Journal of the Moscow Patriarchate, said last week, on the sidelines of a seminar about Russia’s historical identity
  • the reaction inside the church arose from disgust at official dishonesty surrounding the election. “A Christian has to protest against lies, especially lies to millions of people,
  • He said clergy members were speaking out because they saw vote-rigging and fraud as violations of the Ten Commandments.
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  • “A priest knows very well that violation of the commandments never passes without a trace,” he said. “It always results in some grave consequences for violators and the entire society in which this act of falsehood occurs.”
Javier E

Student Protests Rile Chile - NYTimes.com - 0 views

  • Ms. Vallejo, like many of her fellow student leaders, is an avowed communist. But while she has publicly commended other regional leftists like Presidents Evo Morales of Bolivia and Rafael Correa of Ecuador, she and her generation have little in common with the older left of Fidel Castro or Hugo Chávez. They are less ideological purists than change-seeking pragmatists, even if that means working within the existing political order.
  • As the protests increasingly devolve into rock and tear-gas exchanges between students and the police, it’s becoming clear that more than education policy is at stake: a nonviolent social revolution in which disaffected, politically savvy youth are trying to overthrow the mores of an older generation, one they feel is still tainted by the legacy of Pinochet. It is not just about policy reform, but also about changing the underlying timbers of Chilean society.
  • Chile is perhaps Latin America’s greatest success story. After decades of authoritarian rule, it has spent the last 20 years building a thriving economy with a renewed democratic culture and a booming, educated middle class. But it is also confronting a dangerous imbalance: While the liberalization of higher education has led to improvements in access, tuition has consistently outpaced inflation and now represents 40 percent of the average household’s income.
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  • wealthy students from private and expensive, co-pay charter schools have unfair access to elite universities, while the rest struggle to meet entrance standards at under-financed public institutions.
  • Echoing 1960s street activism, the Chilean Winter dabbled in the absurd, but with a high-tech, social-media twist. Thousands gathered in front of the presidential palace in June dressed as zombies, then broke into a choreographed dance to Michael Jackson’s “Thriller.” In July, students again gathered in front of the palace for a huge “kiss-in.” Though the ideas came, said Giorgio Jackson, former student president of Chile’s Catholic University, from “everywhere, absolutely every local space,” the movement’s success hinged on the leadership’s ability to channel such creativity while maintaining a unified front to government and the media. The organization used a Web site to gather ideas and disseminate content for placards and posters. And it has used Ms. Vallejo’s 300,000-plus Twitter followers to quickly initiate huge “cacerolazos,” a form of dictatorship-era protest where people walk the streets banging on pots and pans.
  • “Something very powerful that has come out of the heart of this movement is that people are really questioning the economic policies of the country,” Ms. Vallejo said. “People are not tolerating the way a small number of economic groups benefit from the system. Having a market economy is really different from having a market society. What we are asking for, via education reform, is that the state take on a different role.”
  • “The student movement here is permanently connected to other student movements, principally in Latin America, but also in the world,” Ms. Vallejo said. “We believe this reveals something fundamental: that there is a global demand for the recovery and defense of the right to education.”
  • This may be Ms. Vallejo’s greatest contribution: to restore faith in a discredited system by showing a new generation that politics can be responsive to the people’s demands.
Javier E

How to Fight the Man - NYTimes.com - 0 views

  • This seems to be a moment when many people — in religion, economics and politics — are disgusted by current institutions, but then they are vague about what sorts of institutions should replace them. This seems to be a moment of fervent protest movements that are ultimately vague and ineffectual.
  • We can all theorize why the intense desire for change has so far produced relatively few coherent recipes for change.
  • My own theory revolves around a single bad idea. For generations people have been told: Think for yourself; come up with your own independent worldview. Unless your name is Nietzsche, that’s probably a bad idea. Very few people have the genius or time to come up with a comprehensive and rigorous worldview.
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  • The paradox of reform movements is that, if you want to defy authority, you probably shouldn’t think entirely for yourself. You should attach yourself to a counter-tradition and school of thought that has been developed over the centuries and that seems true.
  • The old leftists had dialectical materialism and the Marxist view of history. Libertarians have Hayek and von Mises. Various spiritual movements have drawn from Transcendentalism, Stoicism, Gnosticism, Thomism, Augustine, Tolstoy, or the Catholic social teaching that inspired Dorothy Day.
  • These belief systems helped people envision alternate realities. They helped people explain why the things society values are not the things that should be valued. They gave movements a set of organizing principles. Joining a tradition doesn’t mean suppressing your individuality. Applying an ancient tradition to a new situation is a creative, stimulating and empowering act. Without a tradition, everything is impermanence and flux.
  • If I could offer advice to a young rebel, it would be to rummage the past for a body of thought that helps you understand and address the shortcomings you see. Give yourself a label.
  • Effective rebellion isn’t just expressing your personal feelings. It means replacing one set of authorities and institutions with a better set of authorities and institutions.
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    An intellectual tradition-a neglected but essential ingredient of social change.
Javier E

Can Liberal Christianity Be Saved? - NYTimes.com - 0 views

  • decline is the latest chapter in a story dating to the 1960s. The trends unleashed in that era — not only the sexual revolution, but also consumerism and materialism, multiculturalism and relativism — threw all of American Christianity into crisis, and ushered in decades of debate over how to keep the nation’s churches relevant and vital.
  • The most successful Christian bodies have often been politically conservative but theologically shallow, preaching a gospel of health and wealth rather than the full New Testament message.
  • The defining idea of liberal Christianity — that faith should spur social reform as well as personal conversion — has been an immensely positive force in our national life. No one should wish for its extinction, or for a world where Christianity becomes the exclusive property of the political right.
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  • liberal Christianity has simply collapsed. Practically every denomination — Methodist, Lutheran, Presbyterian — that has tried to adapt itself to contemporary liberal values has seen an Episcopal-style plunge in church attendance. Within the Catholic Church, too, the most progressive-minded religious orders have often failed to generate the vocations necessary to sustain themselves.
  • What should be wished for, instead, is that liberal Christianity recovers a religious reason for its own existence. As the liberal Protestant scholar Gary Dorrien has pointed out, the Christianity that animated causes such as the Social Gospel and the civil rights movement was much more dogmatic than present-day liberal faith. Its leaders had a “deep grounding in Bible study, family devotions, personal prayer and worship.” They argued for progressive reform in the context of “a personal transcendent God ... the divinity of Christ, the need of personal redemption and the importance of Christian missions.”
  • Today, by contrast, the leaders of the Episcopal Church and similar bodies often don’t seem to be offering anything you can’t already get from a purely secular liberalism.
Javier E

I Paid a Bribe and Similar Corruption-Exposing Sites Spread - NYTimes.com - 0 views

  • social media had given the average person powerful new tools to fight endemic corruption. “In the past, we tended to view corruption as this huge, monolithic problem that ordinary people couldn’t do anything about,” Mr. Elers said. “Now, people have new tools to identify it and demand change.”
  • Since no names are given on the sites, in part to avoid potential issues of libel and defamation, it is impossible to verify the reports, but Mr. Elers and others experienced in exposing corruption say many of them ring true.
  • They are, however, only a reporting mechanism. “In their own right, they don’t change anything,” Mr. Elers said. “The critical thing is that mechanisms are developed to turn this online activity into offline change in the real world.”
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  • “My real goal, though,” he added, “is to change just one government department and how it does business.” That is what happened in Bangalore, where Bhaskar Rao, the transport commissioner for the state of Karnataka, used the data collected on I Paid a Bribe to push through reforms in the motor vehicle department.
  • Mr. King said the sites also were likely to have a deterrent effect that was difficult to measure. “As the information because more public over time and awareness of such reporting grows,” he said, “I suspect those who might have been tempted to engage in this type of corruption are less likely to because the risk of being caught is much greater.”
Javier E

The Morning Plum: Why the battle over filibuster reform matters - 0 views

  • the broad strokes of this debate are overwhelmingly clear.
  • It is plainly true that Republicans have effectively turned the Senate into a 60-vote, super-majority body for even routine business, in a way we haven’t seen before.
  • It is plainly true that Republicans are obstructing Obama nominations (such as Richard Cordray as head of the Consumer Financial Protection Bureau) for the explicit purpose of preventing the agencies themselves from functioning, rather than just out of objections to the nominees themselves.
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  • these things matter. What’s at stake is the functioning of our democracy, and whether all of this should simply be accepted as a new normal. It shouldn’t.
julia rhodes

Turkey's ailing sultan - Le Monde diplomatique - English edition - 0 views

  • “Increasingly, democratisation and authoritarianism are going hand in hand, and not just in Turkey.”
  • Erdogan’s ambition to institute an enhanced presidency with himself as a new “sultan” now looks unlikely to succeed after his imperious response to the protests over the development of Gezi Park
  • For the first time, Erdogan, who had confidently steered Turkey through choppy waters, seemed at a loss
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  • His other recent attempts at social control (restrictions on the sale of alcohol or moves to end abortion, which he has described as murder) infuriated secular Turks, but were aimed at winning votes from Muslim conservatives in this still divided society.
  • Secular intellectuals regard Gezi as a turning point: in the first major political protests since the 1970s, an apolitical younger generation has become politicised — not by big ideas like democracy or nationalism, but for their rights. They were joined by activists for Kurdish, Alevi and gay rights — a coming together of separate causes that is new to Turkey.
  • As it built its own coalitions at home, it set out internationally to demonstrate that Islam was compatible with democracy. The policy worked. The AKP was re-elected on 22 July 2007, and won a triumphant third term in the 12 June 2011 elections
  • The AKP, though not democratic, became a democratising force, giving a new sense of belonging and empowerment to a majority of Turks, previously excluded by the old secular elites
  • His worsening authoritarianism escaped the world’s attention, although in Turkey, there were worries about unaccountability and crony capitalism, the penetration of Fethullah Gulen’s Islamist movement into the police and judiciary, the silencing of the media, and the arrest of many journalists and other critics of the government
  • It is clear the justice system is not free of politics and has failed to investigate evidence of wider involvement in criminal activity and human rights abuses, particularly in the southeast. Yet with the verdicts, Turkey’s demilitarisation has been underlined.
  • Much of the AKP success story was based on the economy, which it opened up, building on structural adjustment reforms by the former economy minister Kemal Derviş (2001-02).
  • . On Cyprus, there is a sense that the AKP government has done what it can, backing the UN peace plan proposed by Kofi Annan for a federal solution.
  • he AKP government’s biggest achievement so far — and greatest remaining challenge — is its attempt at a solution to the Kurdish question.
  • “We used to see self-determination as the only solution... Now our Kurds want to look west. Both for economic benefits and because of the regional conjunction, Kurds here see their future in a democratising Turkey that recognises their rights.” Those rights mean an end to ethnic discrimination, full recognition of Kurdish identity with the right to teach Kurdish at school and a decentralisation that will lead to a form of autonomy. For this, constitutional reform is needed.
  • Further diplomatic incidents led to Turkey’s suspension of military, though not economic, ties with Israel that October. This made Erdogan the darling of the Arab world and played well with the Turkish public. Washington under Obama was not dissatisfied. Then came the Mavi Mamari affair, when a Turkish flotilla carrying humanitarian aid to break Israel’s blockade of Gaza was attacked in international waters on 31 May 2010 and nine Turkish activists killed. This year, after a very public row, the Israeli prime minister Binyamin Netanyahu apologised.
  • There were miscalculations on Syria. After Turkey’s close alliance with President Bashar al-Assad was swiftly reversed at the start of the uprising, Turkey facilitated the rebels, set up refugee camps along the shared border and allowed the opposition Syrian National Council to set up its headquarters in Istanbul. Ordinary Turks welcomed Syria’s refugees but there was no enthusiasm for military involvement, with the risks of unrest among the country’s own Alevi minority (3) and concern at the porous borders that allow infiltration of Al-Qaida-linked jihadists into Turkey.
Javier E

Could a Republican Health Care Reform Ever Happen? - NYTimes.com - 0 views

  • a lot of Congressional Republicans are resistant to the more plausible conservative proposals  on health care precisely because they don’t want to find the money required to make any of them work — in some cases because they prefer the comforting illusion that the current system represents some sort of free market ideal that would be wrecked if we started providing tax credits to the currently-uninsured, and in other cases because they’re all-too-aware that some of that money would have to come from caps and cuts that affect groups that currently vote Republican.
  • right now, with the new health care law as-yet-unimplemented, we’re still in a world where the G.O.P.’s politicians and activists and interest groups think of themselves as working from a pre-Obamacare policy baseline. And this, in in turn, creates a strong political reluctance to propose alternatives that deviate from that baseline in ways that might negatively impact the groups — including, as Barro says, “the overwhelmingly insured Republican electorate” — that the party has tried to rally against the health care law from the beginning.
  • But the first moment when a Republican Congress might actually be able to pass a health care overhaul won’t arrive until February of 2017, at which point Obamacare will have been the baseline for two years
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  • r premiums, the Medicare cuts, the Medicaid expansion, all of it. And at that point, the plausible right-of-center alternatives to Obamacare will no longer look risky and disruptive relative to the status quo, because that status quo will no longer be one that Republican interests and voters are deeply invested in defending. Instead, those interests and voters will be looking for ways to limit the health care law’s impact, and the conservative alternatives will look more like what they actually are — proposals that spend less, regulate less, and reflect a greater confidence in markets than the president’s new law, and that would change the underlying health care system in ways that a sensible G.O.P. should support.
Javier E

The Center-Right Moment - NYTimes.com - 0 views

  • there are a few broader trends to be observed. The first is that the cutting-edge, progressive economic arguments do not seem to be swaying voters.
  • Over the past few years, left-of-center economic policy has moved from opportunity progressivism to redistributionist progressivism. Opportunity progressivism is associated with Bill Clinton and Tony Blair in the 1990s and Mayor Rahm Emanuel of Chicago today. This tendency actively uses government power to give people access to markets, through support for community colleges, infrastructure and training programs and the like, but it doesn’t interfere that much in the market and hesitates before raising taxes.
  • The conservative victories probably have more to do with the public’s skepticism about the left than with any positive enthusiasm toward the right.
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  • Redistributionist progressivism more aggressively raises taxes to shift money down the income scale, opposes trade treaties and meddles more in the marketplace. This tendency has won elections in Massachusetts (Elizabeth Warren) and New York City (Bill de Blasio) but not in many other places. Ed Balls, the No. 2 figure in the Labour Party in Britain, co-led the group from the Center for American Progress that wrote the most influential statement of modern progressivism, a report on “inclusive prosperity.” Balls could not even retain his own parliamentary seat in the last election.
  • there are a few things center-right parties have done successfully.
  • First, they have loudly (and sometimes offensively) championed national identity
  • Second, they have been basically sensible on fiscal policy
  • Third, these leaders did not overread their mandate. Cameron in Britain promised to cut the size of government, and he did, from 45.7 percent of G.D.P. in 2010 to 40.7 percent today,
  • But he made these cuts without going overboard. Public satisfaction with government services has gone up. And there have been some sensible efforts to boost those at the bottom. As The Economist pointed out, “The richest 10 percent have borne the greatest burden of extra taxes. Full-time workers earning the minimum wage pay a third as much income tax as in 2010. Overall, inequality has not widened — in contrast to America.”
  • Cameron’s win suggests the kind of candidate that would probably do well in a general election in this country. He is liberal on social policy, green on global warming and pragmatically conservative on economic policy. If he’s faulted for anything, it is for not being particularly ideological, though he has let his ministers try some pretty bold institutional reforms to modernize the welfare state.
  • Globally, voters are disillusioned with large public institutions. They seem to want to reassert local control and their own particular nationalism (Scottish or anything else). But they also seem to want a slightly smaller public sector, strong welfare state reform and more open and vibrant labor markets as a path to prosperity.
Maria Delzi

BBC News - Vatican suspends 'bishop of bling' Tebartz-van Elst - 0 views

  • The Vatican has suspended a senior German Church leader dubbed the "bishop of bling" by the media over his alleged lavish spending.
  • "A situation has been created in which the bishop can no longer exercise his episcopal duties", a Vatican statement said.
  • Bishop Tebartz-van Elst - and his spending habits - had become infamous in Germany, where many people pay Church tax to the state. The tax raised 5.2bn euros for Catholics and 4.6bn euros for Protestants in 2012.
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  • Calls were made for the bishop to resign after he was accused of lying under oath about his spending.
  • He was criticised for a first-class flight to India to visit the poor.
  • It was in Germany that Martin Luther launched the Reformation five centuries ago in response to what he said were excesses and abuses within the Church.
  • Pope Francis has also signalled his intention to clean up the Vatican's finances, appointing a commission to advise him on reforms.
Javier E

Pope Francis Sounds Like a Democrat - The Atlantic - 0 views

  • what makes Francis different is really a matter of which Catholic beliefs he has elevated to the level of communal concerns—public policy—and which he has framed as individual choices. To Francis, sharing wealth and fixing global warming are matters that governments should address, while not committing homosexual acts or having abortions are individual choices he endorses. (As he famously put it: “Who am I to judge?”
  • This is quite different from the American Catholic church, which has poured its political energy into laws banning gay marriage and restricting abortion.
  • The pope’s speech at the White House on Wednesday fit this framework. When it came to religious liberty, a hot-button issue for American conservatives, Francis extolled its virtues in the abstract. But in the case of climate, Francis called for government action:
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  • his perspective on the state’s role in these issues lines up pretty well with that of most American Democrats. To greatly oversimplify, Democrats believe the U.S. needs to regulate the economy and the environment, while allowing people to make their own choices about whom they marry and whether to have an abortion
  • Republicans—again, oversimplifying greatly—think people should generally be able to do what they want with their money and their carbon footprint, but social behavior should be regulated by the state.
  • Francis aligns more with Democrats than Republicans on other issues: He favors immigration reform, played a major role in the Obama administration’s détente with Cuba, and supports the Iran nuclear deal.
  • Francis’s major impact within the Vatican, as Emma noted, has been as a reformer, reorganizing the Vatican bureaucracy and cleaning up its scandal-ridden finances. It’s in this regard that Francis most resembles Obama, who campaigned in 2007 on a promise to heal America’s divisions and disrupt the entrenched and corrupt political system.
  • Francis, unlike Obama, actually did it: He’s cleverly leveraged his massive popularity to overcome systemic inertia and entrenched opposition, marginalizing his critics and bringing about sweeping changes many insiders had believed to be impossible
  • So yes, Francis is a priest. He’s also a progressive, a politician—and an uncommonly good one at that.
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

Hirsi Ali, Berman, and Ramadan on Islam : The New Yorker - 0 views

  • During the Vietnam War, Hannah Arendt noted that members of the Democratic Administration had frequent recourse to phrases like “monolithic communism,” and “second Munich,” and deduced from this an inability “to confront reality on its own terms because they had always some parallels in mind that ‘helped’ them to understand those terms.”
  • the late Polish philosopher Leszek Kolakowski once pointed out that, however much intellectuals yearn to be both “prophets and heralds of reason,” those roles cannot be reconciled. “The common human qualities of vanity and greed for power” are particularly dangerous among intellectuals, he observed, and their longing to identify with political causes often results in “an almost unbelievable loss of critical reasoning.”
  • This was never a risk for Kolakowski’s model thinker-activist, Erasmus of Rotterdam, a “peace-loving incendiary,” who was at once engaged in the major conflicts of his day and “withdrawn and careful, unwilling to go to extremes”—the great promoter of religious reform who declined to join the Reformation.
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  • in these volatile times, intellectuals would do well to reacquaint themselves with what Kolakowski described as the “history of many deceitful hopes”—the crimes of ideological passion in which even liberals have been complicit. ♦
Javier E

Don't End Agricultural Subsidies. Fix Them. - NYTimes.com - 0 views

  • what subsidies need is not the ax, but reform that moves them forward. Imagine support designed to encourage a resurgence of small- and medium-size farms producing not corn syrup and animal-feed but food we can touch, see, buy and eat — like apples and carrots — while diminishing handouts to agribusiness and its political cronies.
  • if all Americans decided to actually eat the five servings a day of fruits and vegetables that are recommended, they would discover that American agriculture isn’t set up to meet that need. They grow what they’re paid to grow: corn, soy, wheat, cotton and rice.
Javier E

"Conservatism Is True." - The Dish | By Andrew Sullivan - The Daily Beast - 0 views

  • the core argument for conservatism was indeed that it was truer to humankind's crooked timber; that it was more closely tethered to earth rather  than heaven; that it accepted the nature of fallen man and did not try to permanently correct it, but to mitigate our worst instincts and encourage the best, with as light a touch as possible. Religion was for bishops, not presidents. Utopias were for liberals; progress was not inevitable; history did not lead in one obvious direction; we are all limited by epistemological failure and cultural bias.
  • So on taxes today, a conservative would ask: what have we learned about the impact of lower rates over the last two decades - now the lowest as a percentage of GDP since the 1950s? In healthcare, what have we learned about the largely private system the GOP wants to preserve? A conservative would look at home and abroad for empirical answers, acknowledging no ultimate solution but the need for constant reform because society is always changing. On gay rights, a classic social change, he'd ask what a society should do in integrating the emergence of so many openly gay people, couples and families. On foreign policy, he'd move on a case by case basis, not by way of a "doctrine."
  • On these terms, today's GOP could not be less conservative. I'd insist it's less conservative than Obama. It does not present reality-based reform for emergent problems. It simply reiterates dogma and ruthlessly polices dissent or debate.
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  • Back in the 1980s, conservatism was a thrilling empirical, reality-based challenge to overweening government power and omniscient liberal utopianism. Today, alas, it has become a victim of its own success, reliving past glories rather than tackling current problems. It is part secular dogma - no taxes, no debt, more war - and part religious dogma - no Muslims need apply; amend the federal constitution to keep gays in their place; no abortions even for rape and incest; more settlements on the West Bank to prepare for the End-Times.
  • Now it's Levin-land: either total freedom or complete slavery and a rhetorical war based entirely on that binary ideological spectrum. In other words, ideological performance art: brain-dead, unaware of history, uninterested in policy detail, bored by empiricism, motivated primarily by sophistry, Manicheanism, and factional hatred.
  • today's unconservative "conservatism" is a movement held together by cultural resentment and xenophobic panic.
Javier E

Did You Hear the One About the Bankers? - NYTimes.com - 0 views

  • Citigroup had to pay a $285 million fine to settle a case in which, with one hand, Citibank sold a package of toxic mortgage-backed securities to unsuspecting customers — securities that it knew were likely to go bust — and, with the other hand, shorted the same securities — that is, bet millions of dollars that they would go bust.
  • “The deal became largely worthless within months of its creation,” The Journal added. “As a result, about 15 hedge funds, investment managers and other firms that invested in the deal lost hundreds of millions of dollars, while Citigroup made $160 million in fees and trading profits.”
  • the U.S. District Court judge overseeing the case demanded that the S.E.C. explain how such serious securities fraud could end with the defendant neither admitting nor denying wrongdoing
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  • I was in Tahrir Square in Cairo for the fall of Hosni Mubarak, and one of the most striking things to me about that demonstration was how apolitical it was. When I talked to Egyptians, it was clear that what animated their protest, first and foremost, was not a quest for democracy — although that was surely a huge factor. It was a quest for “justice.” Many Egyptians were convinced that they lived in a deeply unjust society where the game had been rigged by the Mubarak family and its crony capitalists.
  • Our Congress today is a forum for legalized bribery. One consumer group using information from Opensecrets.org calculates that the financial services industry, including real estate, spent $2.3 billion on federal campaign contributions from 1990 to 2010, which was more than the health care, energy, defense, agriculture and transportation industries combined.
  • We need to focus on four reforms that don’t require new bureaucracies to implement. 1) If a bank is too big to fail, it is too big and needs to be broken up. We can’t risk another trillion-dollar bailout. 2) If your bank’s deposits are federally insured by U.S. taxpayers, you can’t do any proprietary trading with those deposits — period. 3) Derivatives have to be traded on transparent exchanges where we can see if another A.I.G. is building up enormous risk. 4) Finally, an idea from the blogosphere: U.S. congressmen should have to dress like Nascar drivers and wear the logos of all the banks, investment banks, insurance companies and real estate firms that they’re taking money from. The public needs to know.
dpittenger

How Congress is Cutting Science Out of Science Policy - 0 views

  • The bill's impact dramatically affects the fundamental regulatory process, so that nearly every type of protective regulation is vulnerable. As a result, the RAA is opposed by groups who advocate on a variety of issues, ranging from consumer safety and financial reform to food safety and worker rights.
  • Years pass between the time a rule is proposed and its implementation.
  • You might want to call this the first in what we expect to be a long list of "zombie bills" — retreads of bills which failed to become law in previous years, but have been resurrected one more time. These legislative proposals harm science-informed policy, jeopardizing public health, safety and the environment.
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  • The worst part of the bill is the blatant cynicism it demonstrates. This bill harms science, but it also harms democracy.
  • This blatant attempt to subvert public protections has brought together science, consumer, public health, financial reform and environmental activists.
Javier E

The Governing Party - NYTimes.com - 0 views

  • serious parties eventually pull back from the fever swamps. That’s what’s happening to the Republican Party. It has re-established itself as the nation’s dominant governing party. Republicans now control 69 of 99 state legislative bodies. Republicans hold 31 governorships to Democrats’ 18.
  • When the next Congress convenes in January, Republicans will have their largest majority in the House of Representatives since 1931; they will have a majority in the Senate, dominate gubernatorial power in the Midwest, and have more legislative power nationwide than anytime over the past century.
  • They did it because they have deep roots in four of the dominant institutions of American society: the business community, the military, the church and civic organizations.
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  • Republicans won this election in part because they re-established their party’s traditional personality. The beau ideal of American Republicanism is the prudent business leader who is active in the community, active at church and fervently devoted to national defense.
  • These candidates won in the general election because working-class voters will trust Republican corporate types so long as they are deeply embedded in their communities, so long as they have demonstrated loyalty to the whole society and not just the upper crust.
  • Republicans won among white-working-class voters by 30 percentage points. They tied Democrats among Asian-Americans. They severely cut their losses among Hispanics.
  • The new Republican establishment is different from the old one. It is more conservative. It’s shaped more by the ideas of The Wall Street Journal’s editorial page and the American Enterprise Institute than it is by the mores of the country club.
  • During the Palin spasm, Republicans seemed to detest the craft of governing. Hothouse flowers like Senator Ted Cruz preferred telegenic confrontation to compromise and legislation. Continue reading the main story Write A Comment But current party leaders are talking about incremental progress, finding areas where they can get bipartisan support: on trade, corporate taxes, the XL oil pipeline, the medical devices tax, patent reform, maybe even tax reform generally.
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