Austerity: the greatest bait-and-switch in history

Mark Blyth, a delightfully sweary Scottish economist, talks for about an hour to Googlers about the stupidity of austerity as a means of recovering from recession, describing it in colorful, easy-to-grasp language. This is brilliant, accessible and important economics:

Governments today in both Europe and the United States have succeeded in casting government spending as reckless wastefulness that has made the economy worse. In contrast, they have advanced a policy of draconian budget cuts--austerity--to solve the financial crisis. We are told that we have all lived beyond our means and now need to tighten our belts. This view conveniently forgets where all that debt came from. Not from an orgy of government spending, but as the direct result of bailing out, recapitalizing, and adding liquidity to the broken banking system. Through these actions private debt was rechristened as government debt while those responsible for generating it walked away scot free, placing the blame on the state, and the burden on the taxpayer.

That burden now takes the form of a global turn to austerity, the policy of reducing domestic wages and prices to restore competitiveness and balance the budget. The problem, according to political economist Mark Blyth, is that austerity is a very dangerous idea. First of all, it doesn't work. As the past four years and countless historical examples from the last 100 years show, while it makes sense for any one state to try and cut its way to growth, it simply cannot work when all states try it simultaneously: all we do is shrink the economy. In the worst case, austerity policies worsened the Great Depression and created the conditions for seizures of power by the forces responsible for the Second World War: the Nazis and the Japanese military establishment. As Blyth amply demonstrates, the arguments for austerity are tenuous and the evidence thin. Rather than expanding growth and opportunity, the repeated revival of this dead economic idea has almost always led to low growth along with increases in wealth and income inequality. Austerity demolishes the conventional wisdom, marshaling an army of facts to demand that we recognize austerity for what it is, and what it costs us.

Mark Blyth: Austerity - The History of a Dangerous Idea (via Memex 1.1)

    


Austerity: the greatest bait-and-switch in history

Mark Blyth, a delightfully sweary Scottish economist, talks for about an hour to Googlers about the stupidity of austerity as a means of recovering from recession, describing it in colorful, easy-to-grasp language. This is brilliant, accessible and important economics:

Governments today in both Europe and the United States have succeeded in casting government spending as reckless wastefulness that has made the economy worse. In contrast, they have advanced a policy of draconian budget cuts--austerity--to solve the financial crisis. We are told that we have all lived beyond our means and now need to tighten our belts. This view conveniently forgets where all that debt came from. Not from an orgy of government spending, but as the direct result of bailing out, recapitalizing, and adding liquidity to the broken banking system. Through these actions private debt was rechristened as government debt while those responsible for generating it walked away scot free, placing the blame on the state, and the burden on the taxpayer.

That burden now takes the form of a global turn to austerity, the policy of reducing domestic wages and prices to restore competitiveness and balance the budget. The problem, according to political economist Mark Blyth, is that austerity is a very dangerous idea. First of all, it doesn't work. As the past four years and countless historical examples from the last 100 years show, while it makes sense for any one state to try and cut its way to growth, it simply cannot work when all states try it simultaneously: all we do is shrink the economy. In the worst case, austerity policies worsened the Great Depression and created the conditions for seizures of power by the forces responsible for the Second World War: the Nazis and the Japanese military establishment. As Blyth amply demonstrates, the arguments for austerity are tenuous and the evidence thin. Rather than expanding growth and opportunity, the repeated revival of this dead economic idea has almost always led to low growth along with increases in wealth and income inequality. Austerity demolishes the conventional wisdom, marshaling an army of facts to demand that we recognize austerity for what it is, and what it costs us.

Mark Blyth: Austerity - The History of a Dangerous Idea (via Memex 1.1)

    


Snooper’s Charter is dead! (for now)

Aw, yeah! The UK Communications Data Bill -- AKA the "Snooper's Charter," a sweeping, totalitarian universal Internet surveillance bill that the Conservative government had sworn to pass -- is dead! Yesterday, Nick Clegg, leader of the Liberal Democrats in Parliament, announced that his party would not support the bill, and effectively killed it. Though I've been bitterly disappointed with some of the terminal compromises the LibDems have made, this makes me grateful to have them in Parliament. The kind of universal surveillance proposed in the Snooper's Charter was broadly supported by the last Labour government, which radically expanded state surveillance powers, and by the Tories -- thank goodness for the LibDems mustering a scrap of backbone at last!

The only downside is that the Open Rights Group had a whole series of great "Professor Elemental" videos that used pointed, excellent humour to mock and undermine the bill and drum up opposition to it, and now that's all going to go to waste (I blogged episode one yesterday).

Aw, who'm I kidding? This kind of thing never stays dead.

The snooper's charter has reminded Nick Clegg, finally, he is a liberal

    


Snooper's Charter is dead! (for now)

Aw, yeah! The UK Communications Data Bill -- AKA the "Snooper's Charter," a sweeping, totalitarian universal Internet surveillance bill that the Conservative government had sworn to pass -- is dead! Yesterday, Nick Clegg, leader of the Liberal Democrats in Parliament, announced that his party would not support the bill, and effectively killed it. Though I've been bitterly disappointed with some of the terminal compromises the LibDems have made, this makes me grateful to have them in Parliament. The kind of universal surveillance proposed in the Snooper's Charter was broadly supported by the last Labour government, which radically expanded state surveillance powers, and by the Tories -- thank goodness for the LibDems mustering a scrap of backbone at last!

The only downside is that the Open Rights Group had a whole series of great "Professor Elemental" videos that used pointed, excellent humour to mock and undermine the bill and drum up opposition to it, and now that's all going to go to waste (I blogged episode one yesterday).

Aw, who'm I kidding? This kind of thing never stays dead.

The snooper's charter has reminded Nick Clegg, finally, he is a liberal

    


Para os fans de House M.D., admirem a potência da máquina dos MRI

É impressionante o poder de atracção magnética desenvolvido por um MRI. Não é nada à toa que ficam preocupados com a presença de objectos metálicos, e inclusive os danos que o MRI do hospital uma vez sofreu poderão não estar muito longe da realidade. É também notório no vídeo que o aparentemente incauto que se vê, esconde-se muito rapidamente por detrás de alguma coisa…

Sugiro a utilização do youtube-dl para obter o vídeo:

rms@roque:~/Downloads$ ./youtube-dl http://youtube.com/watch?v=7g5UVrOt2CI
Retrieving video webpage... done.
Extracting URL "t" parameter... done.
Video data found at http://chi-v91.chi.youtube.com/get_video?video_id=7g5UVrOt2CI
Retrieving video data: 100.0% ( 366.50k of 366.50k) at 36.55k/s ETA 00:00 done.
Video data saved to 7g5UVrOt2CI.flv
rms@roque:~/Downloads$ mplayer 7g5UVrOt2CI.flv

MPlayer Viewig clip