Benjamin Studebaker

Yet Another Attempt to Make the World a Better Place by Writing Things

Tag: Feudalism

Comparing Keynesian Neocorporatism and Market Socialism

There is a lot of fuzziness and misunderstanding about what the left is trying to do, economically. A while back, I discussed some of the things which distinguish postwar liberals–who remain committed to reforming capitalism–from democratic socialists, who seek to one day abolish capitalism outright. Today I want to get into a bit more detail and discuss more precisely how these economic models work. The case I want to make to you is that despite what you may hear, the postwar liberals and democratic socialists have more overlap in their proposals than either side realises.

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Resisting Stagnation and the New Dark Age

There’s a lot of talk lately by Summers, Krugman, and others that we may be in a period of secular stagnation, in which the rate at which the economy grows in the wealthiest countries falls substantially and permanently. Observing this, some are quick to point to demography as the cause. If populations are not growing as swiftly as they once did, it would indeed make sense that growth rates would fall. Under this thinking, slower growth isn’t a problem, because per capita growth is theoretically still strong–the economy is growing slower in aggregate, but it’s growing at the same speed relative to the size of the population. The trouble is that on further investigation, the demographic explanation does not sufficiently account for what’s going on. Not only are growth rates slowing, but per capita growth rates are slowing, and have been slowing for a while, beginning far before the recent economic crisis. This throws Kurzweil’s theory of accelerating returns into doubt, and undermines the central precept underlying our capitalist society–that the labors of this generation today are meant to make the next generation’s lives go better. If stagnation is the way of the future, it’s a much more serious problem than we presently recognize, one that ultimately threatens not merely our dreams of better lives for ourselves, but the very stability of our civilization.

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