First real entry on my blog. I am going to share thoughts that have been flying in my head in the last few weeks.
What are the goals of economic management (aka economic policy)?
Growth is one. But growth of what? in theory, growth in the well being of citizens. GDP measures only part of it, the economic part, and often in inaccurate and distorted ways. If you are unfamiliar with the issue, you can read more here.
Let's consider Equality. Is equality good? It would sound so... less social tensions, less poverty, as far as you don't remove incentives...
What equality though? In this post I discuss income and wealth inequality in modern societies
Efficiency is a rather complex issue when talking about economies. It's still a matter of revenues and costs, and especially of optimal or optimised allocation of resources. It is because of its vastly corrupt and inefficient system of allocation of resources that the Soviet Union finally collapsed. Now let's look at the efficiency in the allocation of resources in western democracies. So what are the resources? You can count in minerals, fossil fuels, skilled and unskilled labour, works of art, natural beauties, all kinds of stuff. Think of anything that has value if properly employed.
A typical European Country will have these days double digit unemployment, which is, people willing and able to work. You will also have thousands of top talents from best universities working in financial services, law, consulting, politics, lobbying etc. You will have millions of migrants ready to take up jobs. Men, the most underutilised resource of the planet...
Our typical European country probably also does poorly in terms of efficient use of Water, Air, and energy and on the waste management part of the cycle. That is mostly because the Public sector still nowadays fails to make the private sector liable for social costs incurred in the course of business. But again, topic for another time.
What can we do to move people from unemployment to useful jobs?
Time to go to sleep.
I'' leave you with a video which depicts, in 10 minutes, a summary of the ideas of David Harvey, which I find well done and inspiring. I hope you enjoy it. Let me know your ideas.
What are the goals of economic management (aka economic policy)?
Growth is one. But growth of what? in theory, growth in the well being of citizens. GDP measures only part of it, the economic part, and often in inaccurate and distorted ways. If you are unfamiliar with the issue, you can read more here.
Let's consider Equality. Is equality good? It would sound so... less social tensions, less poverty, as far as you don't remove incentives...
What equality though? In this post I discuss income and wealth inequality in modern societies
Efficiency is a rather complex issue when talking about economies. It's still a matter of revenues and costs, and especially of optimal or optimised allocation of resources. It is because of its vastly corrupt and inefficient system of allocation of resources that the Soviet Union finally collapsed. Now let's look at the efficiency in the allocation of resources in western democracies. So what are the resources? You can count in minerals, fossil fuels, skilled and unskilled labour, works of art, natural beauties, all kinds of stuff. Think of anything that has value if properly employed.
A typical European Country will have these days double digit unemployment, which is, people willing and able to work. You will also have thousands of top talents from best universities working in financial services, law, consulting, politics, lobbying etc. You will have millions of migrants ready to take up jobs. Men, the most underutilised resource of the planet...
Our typical European country probably also does poorly in terms of efficient use of Water, Air, and energy and on the waste management part of the cycle. That is mostly because the Public sector still nowadays fails to make the private sector liable for social costs incurred in the course of business. But again, topic for another time.
What can we do to move people from unemployment to useful jobs?
Time to go to sleep.
I'' leave you with a video which depicts, in 10 minutes, a summary of the ideas of David Harvey, which I find well done and inspiring. I hope you enjoy it. Let me know your ideas.
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