Benjamin Studebaker

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

Tag: Wage Growth

Australia’s Poor Wage Growth is Destroying its Prime Ministers

Australia has swapped Prime Ministers again–this time the Liberal Party replaced Malcolm Turnbull with Scott Morrison. Morrison will be Australia’s sixth Prime Minister in the last then years. This level of turnover at the top is remarkable. The UK has only had three Prime Ministers during the same period. Canada has only had two. Why are Australian politics so volatile? I couldn’t find any explanation online which satisfied me, so I’m writing my own. I think it has to do with a combination of wages and the way Australia’s political parties choose their leaders.
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Don’t Vote for the Tories: They’re Clueless on Wages

British Prime Minister Theresa May has announced plans for a snap election on 8 June. She’s way ahead in the polls, but her opponents demanded an election when she came to power, and cannot credibly oppose it now. The Conservatives may win–they may win by a lot. But they shouldn’t. So I’m starting a blog series called “Don’t Vote for the Tories.” Each post will give you a new reason to reject the Tories at the polls this June, grounded in research and data. I aim to do at least one of these each week until the vote. Today we’re talking about wages.

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Brexit is the Right Nationalist Response to Austerity

Like many people, I initially responded to Brexit with outrage at the terrible consequences of the result for the British people. Among other things, they may lose crucial worker, consumer, and environmental protections, they may lose access to the European market, they may lose the opportunity to work with other European countries on climate change and tax avoidance, and they may even lose Scotland. It is critical that the British Parliament assert its sovereignty and decline to implement the results of the non-binding advisory referendum, which was a mistake to hold in the first place. After all, by asserting UK sovereignty, Brexiteers are asserting the sovereignty of Parliament, so if Parliament declines to invoke Article 50 and chooses to stay in the EU it is merely exercising the very powers the Brexiteers wished to assert for it. But today I want to take a step back and look at the big picture–why the vote went the way it did and what that says about where we’re at. Many people have been happy to chalk the Leave win up to bigotry and leave it at that, but this response is too reductive and doesn’t give us enough to work with. If bigotry is the problem, why is bigotry the problem now? There have been bigoted people in Britain and in the EU and all over the world forever, but Brexit didn’t happen in 1996 or 2006, it happened in 2016. What’s different about now? Brexit is not the result of some culture war between the nice people and the nasty people, it is a consequence of economic stagnation and inequality and of a voting public that is unable to correctly identify the causes of that stagnation and inequality or confront them with meaningful and effective policy.

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Why American Families are Worse off Now Than They Were in 1997

When we evaluate whether or not the economy is performing well, we sometimes pay too much attention to GDP. Gross domestic product tells us about the total amount of exchange going on in an economy, but many of those exchanges only serve to enrich those at the top of the economic ladder. To get a better sense of how ordinary people are doing, we need to look at real (inflation-adjusted) median household income. Today I checked in on the American figures, and they are bleak:

The median American family is not only poorer than they were before the 2008 crisis–they’re poorer than they were during the Monica Lewinsky scandal. What on earth is going on?

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The 3 Ways Governments Raise Money Part III: Printing

This is the conclusion of my three-part series on how governments finance themselves. The aim is to clear up the popular misconception that the state’s budget is similar to that of a corporation or a household, that government borrowing is always necessarily a bad thing. Previously we talked about taxation and borrowing–today is all about printing. Read the rest of this entry »