Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts
Thursday, December 6, 2012
Scylla or Charybdis in modern economics
National oligarchs or international oligarchs and corporate and other bureaucrats? Scylla or Charybdis? Where/who is "Ulysses"?
Oligarchs or free grazers? I remember a Kevin Costner cowboy movie on this type of dilemma!
11 day (fin) virus
I feel selectively de-faulted tonite.
I hear it lasts 11 days.
No antibiotics needed, doc said.
I hear it lasts 11 days.
No antibiotics needed, doc said.
Sunday, April 22, 2012
Good houskeeping, the European social democratic way
Good "housekeeping" in the EU member states is always a must but Sarkozy, the current Dutch government, Merkel and others must be sacked for obsessing about it!
For setting targets that are too unrealistic, in terms of the actual numbers as well as the whole philosophy of setting strict targets and obsessing about reaching them. That is also a problem with inflation (the 2% "magic" target), even the targets of the Europe 2020 "growth Strategy". Economics, including fiscal and budgetary ones, are not like Physics or Chemistry, they are part of social sciences and as such they must be treated with a grain of salt. People are not robots, neither are their economic, social, political and policy actions.
Some politicians are willing to bend to the demands of financial markets.
Since many years ago I have written about the demands placed on listed companies by the financial market. The pressure to meet specific targets on a quarterly basis. And the negative impact that this has on the medium term performance of the corporation.
In recent years, the same pressure is being put on countries, their economies.
Time for that to stop! That should be one of the philosophies of the social democrats in the EU27.
Of course states, as companies do, need to improve their accounting procedures, know what they are spending and why (the why part is management accounting as opposed to financial accounting). To keep their finances solid but without "human sacrifices" of the obsession austerity kind. The preservation of the European Social Model and the need for the recognition of the positive role economic immigrants can play in the funding of the social model of an ageing EU27 (instead of scapegoating them).
To make a humanist EU the beacon for others in the world, since the American beacon has been dying out in recent decades (see also the resistance to not only HillaryCare of the Bill Clinton 1st term but also of Obamacare, especially the public option).
In a secular Europe, economic religions such as growth via austerity, classic, neo ir ordo liberalism and of course neo-Marxism have no place! Policy must provide solutions for real problems of real people.
For setting targets that are too unrealistic, in terms of the actual numbers as well as the whole philosophy of setting strict targets and obsessing about reaching them. That is also a problem with inflation (the 2% "magic" target), even the targets of the Europe 2020 "growth Strategy". Economics, including fiscal and budgetary ones, are not like Physics or Chemistry, they are part of social sciences and as such they must be treated with a grain of salt. People are not robots, neither are their economic, social, political and policy actions.
Some politicians are willing to bend to the demands of financial markets.
Since many years ago I have written about the demands placed on listed companies by the financial market. The pressure to meet specific targets on a quarterly basis. And the negative impact that this has on the medium term performance of the corporation.
In recent years, the same pressure is being put on countries, their economies.
Time for that to stop! That should be one of the philosophies of the social democrats in the EU27.
Of course states, as companies do, need to improve their accounting procedures, know what they are spending and why (the why part is management accounting as opposed to financial accounting). To keep their finances solid but without "human sacrifices" of the obsession austerity kind. The preservation of the European Social Model and the need for the recognition of the positive role economic immigrants can play in the funding of the social model of an ageing EU27 (instead of scapegoating them).
To make a humanist EU the beacon for others in the world, since the American beacon has been dying out in recent decades (see also the resistance to not only HillaryCare of the Bill Clinton 1st term but also of Obamacare, especially the public option).
In a secular Europe, economic religions such as growth via austerity, classic, neo ir ordo liberalism and of course neo-Marxism have no place! Policy must provide solutions for real problems of real people.
Monday, March 19, 2012
No more economics - and especially finance - please, we are humans!
I am paraphrasing the title of a well know British theatre play of decades ago to reflect the following.
Muhammad Yunus, the inventor of micro-finance has given a most interesting video interview to the Guardian today: 'Economists have misunderstood human beings' is the title and he proposes that humans are multi-dimensional, not one dimensional money making robots!
He also proposes that social enterprises can offer solutions in a world where the profit making ones and the social ones co-exist.
Meanwhile, the Merkozy fiscal pact is having adoption issues not only in Germany (see recent posts of mine) but the Netherlands as well! My POV is not that good fiscal "housekeeping" should not be an element of national and Eurozone policy but that this must not turn into the sclerotic and rather rigid thing that the Merkozian fiscal pact has become! So much that not only a Spanish convervative PM (Rajoy) is having trouble abiding to, but also the Netherlands. Yes the NL which is the closest "ideological" ally Merkozy has to its philosophy,
Via Twitter, I continue to ask my German followers/friends if indeed "Ordocapitalism" is the philosophy that drives the policy thinking of Merkel and her advisers (many of them of CB and/or banking mindset). I continue to get very mixed replies. Too early to write a post on that.
So capitalism and its problems, which was the topic of thus year's WEF at Davos, the Euro crisis, the vendetta between Financial Agorocracy and Democracy, and many other such issues continue to be the core of European, EU, US and world affairs and policy.
Now, back to Yunus. I have many economists friends but as an MBA I agree with Yunus on this argument taht economists have misunderstood human beings.
As per the profit vs social entrepreneurship, I think that there is also a "third kind". The for profit but not profit (shareholder value) maximising one, the one that my father practiced, ie for profit business that does not operate with a single directive: "Maximise Profit, Maximise Profit" (flashes of The Terminator, The Walking Dead and other zombie and vampire movies and series, parade inside my mind for a few seconds). What I call "noble capitalism" (mind you: my father was not a "royal", he was a product of the middle class, the good old middle class that credit capitalism has destroyed in recent decades, IMO).
After all there is such thing as "Socially Responsible Investment" where investors can participate in funds that choose their portfolio based not solely on performance but environmental, social and other non direct profit parameters!
But is it economist who have misunderstood human beings or is Max Weber's 1905 book "The Protestant Ethic and the Spirit of Capitalism" that is more relevant in understanding a) the faults of capitalism and b) Merkel's philosophy?
Food for thought, mes amis!
Muhammad Yunus, the inventor of micro-finance has given a most interesting video interview to the Guardian today: 'Economists have misunderstood human beings' is the title and he proposes that humans are multi-dimensional, not one dimensional money making robots!
He also proposes that social enterprises can offer solutions in a world where the profit making ones and the social ones co-exist.
Meanwhile, the Merkozy fiscal pact is having adoption issues not only in Germany (see recent posts of mine) but the Netherlands as well! My POV is not that good fiscal "housekeeping" should not be an element of national and Eurozone policy but that this must not turn into the sclerotic and rather rigid thing that the Merkozian fiscal pact has become! So much that not only a Spanish convervative PM (Rajoy) is having trouble abiding to, but also the Netherlands. Yes the NL which is the closest "ideological" ally Merkozy has to its philosophy,
Via Twitter, I continue to ask my German followers/friends if indeed "Ordocapitalism" is the philosophy that drives the policy thinking of Merkel and her advisers (many of them of CB and/or banking mindset). I continue to get very mixed replies. Too early to write a post on that.
So capitalism and its problems, which was the topic of thus year's WEF at Davos, the Euro crisis, the vendetta between Financial Agorocracy and Democracy, and many other such issues continue to be the core of European, EU, US and world affairs and policy.
Now, back to Yunus. I have many economists friends but as an MBA I agree with Yunus on this argument taht economists have misunderstood human beings.
As per the profit vs social entrepreneurship, I think that there is also a "third kind". The for profit but not profit (shareholder value) maximising one, the one that my father practiced, ie for profit business that does not operate with a single directive: "Maximise Profit, Maximise Profit" (flashes of The Terminator, The Walking Dead and other zombie and vampire movies and series, parade inside my mind for a few seconds). What I call "noble capitalism" (mind you: my father was not a "royal", he was a product of the middle class, the good old middle class that credit capitalism has destroyed in recent decades, IMO).
After all there is such thing as "Socially Responsible Investment" where investors can participate in funds that choose their portfolio based not solely on performance but environmental, social and other non direct profit parameters!
But is it economist who have misunderstood human beings or is Max Weber's 1905 book "The Protestant Ethic and the Spirit of Capitalism" that is more relevant in understanding a) the faults of capitalism and b) Merkel's philosophy?
Food for thought, mes amis!
Thursday, March 8, 2012
The difference between an Economist and an MBA is ..
The difference between an Economist and an MBA is like the one between a Physicist and an Engineer.
PS. In my opinion, beyond its fancy models and math formulas, Economics is a part of Sociology that decided to break away and act like Physics or Chemistry!
PS. In my opinion, beyond its fancy models and math formulas, Economics is a part of Sociology that decided to break away and act like Physics or Chemistry!
Thursday, March 1, 2012
Economics: 0 for 2
Most of Economics relies on 1 of 2 assumptions:
1) perfect information
2) perfect competition.
Neither holds in real life, though.
After all is said and done, Economics is a social science, unlike Physics or Chemistry.
It has no laws, like Physics does, only theories (and dogmas). But no laws.
1) perfect information
2) perfect competition.
Neither holds in real life, though.
After all is said and done, Economics is a social science, unlike Physics or Chemistry.
It has no laws, like Physics does, only theories (and dogmas). But no laws.
Thursday, August 25, 2011
Reminder:: Economics is a social science
At the end of the day (and the beginning actually) & in spite of fancy math & formalae, Economics was and is a social science.
Tuesday, August 23, 2011
The Achilles Heels of "Western Civilisation"?
Are determinism and low tolerance for uncertainty the Achilles Heels of the so called "western civilisation"? Is it the fault of the (Ancient) Greeks, the Romans or someone else?
See Max Weber, maybe?
Food for thought.
See Max Weber, maybe?
Food for thought.
Thursday, July 21, 2011
Economic/political dogmae and economic agnosticism!
Many believe in the economic/political dogma that the state knows best.
Many believe that in the economic/political the markets know best.
Are there any "agnostics" left?
Friday, June 10, 2011
The state of Economics in 2011
Is Economics the modern version of ancient myths and fairy tales?
Let us not forget that in spite fancy mathematic formulae, Economics is a social science. Dangerous when dogmatic, and a tool capable of both good & bad things.
It should be noted that a lot of the dominant economic theories & dogmae have Anglo-American (and in some cases Central Europe eg Austrian) roots and bias thus are not fit for global appeal and application.
On top of that, a lot of the old made in USA & UK liberal, capitalist, free-market economic theories are not popular in the USA & UK of today!
Yes, IMO, Economics as we know it, is in "crisis". Maybe a new version/release, upgraded and suitable for global use and with elements for global appeal is in order!
Let us not forget that in spite fancy mathematic formulae, Economics is a social science. Dangerous when dogmatic, and a tool capable of both good & bad things.
It should be noted that a lot of the dominant economic theories & dogmae have Anglo-American (and in some cases Central Europe eg Austrian) roots and bias thus are not fit for global appeal and application.
On top of that, a lot of the old made in USA & UK liberal, capitalist, free-market economic theories are not popular in the USA & UK of today!
Yes, IMO, Economics as we know it, is in "crisis". Maybe a new version/release, upgraded and suitable for global use and with elements for global appeal is in order!
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