The signals of unrest in Chile mounted for years amid corruption scandals, rising inequality, and new monopolies. The tax increase on public transport that sparked the protests was only the final straw.
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The Lousy Job Economy: Young People Bear the Brunt of a Long-Term Decline in American Job Quality
A new study finds a steady decline in the quality of American jobs between 1979 to 2017, even as GDP has grown. This decline has been particularly severe for young workers and catastrophic for young workers without a college degree.
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“Avoiding Plutocracy Would Require a Political Change”: Branko Milanovic on the Future of Capitalism
In an interview with ProMarket, CUNY Graduate Center economist Branko Milanovic discussed the differences and similarities between US-style and China-style capitalism and explained why, without major reforms, liberal capitalism could lead to plutocracy.
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How a Simple Tweak to a Federal Form Could Help Borrowers Potentially Avoid Defaulting on Student Loans
A federal program seeks to help borrowers avoid defaulting on their student loans through income-based repayment plans, but many eligible borrowers do not enroll. A new study argues that an electronic pre-filled application process significantly increases the take-up rate.
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With the US and China, Two Types of Capitalism Are Competing With Each Other
Capitalism’s global victory has been achieved through two different types of capitalist systems: the liberal meritocratic capitalism that has developed incrementally in the West, and the state-led authoritarian capitalism that is exemplified by China. Regardless of who wins, it is unlikely that one of the two will come to rule the entire globe, writes Branko Milanovic in his new book.
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The Cost of America’s Oligopoly Problem
An innovative new study finds substantial, increasing deadweight losses resulting from oligopolistic behavior and points to the important role that startup acquisitions—particularly by large tech firms—played in driving this trend.
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The Business Roundtable CEOs’ Statement: Same Old, Same Old
Despite the media hype about corporate CEOs having abandoned their shareholder value maximization credo, the recent statement from the Business Roundtable contains nothing new of substance. CEOs still firmly convinced that their firms’ main goal remains to maximize shareholder value could sign it without batting an eye.
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Thomas Piketty’s New Book Brings Political Economy Back to Its Sources
In the same way that Capital in the Twenty-First Century transformed the way economists look at inequality, Piketty’s new book Capital and Ideology will transform the way political scientists look at their own field.
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The Limits of Private Action: What the Past 40 Years Taught Us About the Perils of Unregulated Markets
The two big ideas that animated American public policy since the end of World War II, employer-sponsored social benefits and neoliberalism, are failures. We need better options.
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How Amazon’s Pricing Policies Squeeze Sellers and Result in Higher Prices for Consumers
Amazon’s price matching policies, which were meant to ensure its dominant position, diminished the ability of brands to control how their products are distributed and the prices at which these products are sold, writes Shaoul Sussman.
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The Future of Capitalism and the Utopia That Never Was
In his review of Paul Collier’s recent book The Future of Capitalism, Branko Milanovic discusses ideology, social democracy, and the “ethical world.”
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Towards the Giant Three: The Rise and Rise of the Big Three Index Funds
The Big Three index fund managers—BlackRock, Vanguard, and State Street Global Advisors—hold a significant proportion of the stock of US public companies, and they continue to grow steadily. There is a real prospect that index funds will continue to grow, and that voting in most significant public companies will come to be dominated by the future “Giant Three,” write Lucian Bebchuk and Scott Hirst.
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