Unit 2 Readings | Econproph[Comp. Systems 2016]

For Unit 2, these 4 posts/essays are required readings. Links to these readings are below. The first two posts are essays I wrote for last year’s (2015) class of Comparative Econ Systems. The third one is a post from the New York Times recently. And the last one is from some time ago on my general blog, Econproph.com.

Unit 2- RoadMap from Divison to 1 Planet

An Intellectual Road Map – Same Planet, Same Challenges This Unit of the course is supposed to be about ideologies and the different systems they produce. Traditionally that’s meant capitalism, socialism, and communism. But first, let’s take a look at what we might call a “topical road map” to economic systems. Speaking as a professor,… Read More »

Unit 2-Capitalism vs Socialism vs Communism – The Clash (long)

Capitalism vs. Socialism: The Background Ideology and The First World A lot of people argue about communism, capitalism, and socialism. These are questions of ideology. In political discussions people easily throw around the labels “socialist” or “greedy capitalist”. In the 2008 U.S. presidential election some Republicans accused Barak Obama of being a “socialist”. On the… Read More »

America’s Best Days May Be Behind It

Eduardo Porter

JAN. 19, 2016

Mary Tyler Moore in “The Dick Van Dyke Show.” Though the Internet and video games were not yet invented, life over all in the 1960s did not look that different. Credit The Hudson River Museum

Take a look back at some of the most popular TV programs of the mid-1960s — “The Dick Van Dyke Show,” “Bewitched,” even “The Beverly Hillbillies” — and what do you see?

NOTE: The New York Times limits the number of articles readers may read each month for free. If you have problems accessing this article, let me know. – jim

So Who Pays For the Government and How?

I’ve always found putting things in historical perspective and looking at the long-term trend of things usually illuminates a lot of policy discussions. It’s easier to see “what’s really happening” if you look at the long-term trend. Taxes, tax rates, and the government budget are often hot topics of policy debate. So is the future of the intergenerational social insurance programs such as Social Security and Medicare (also here).

As Paul Krugman has often mentioned, the best way to think of the U.S. federal government budget is to think of the government as “an insurance company with an army”. But who pays for this insurance company (Social Security, Medicare, Medicaid) and it’s accompanying army? The distinct trend of the last few decades is that individuals are being asked to shoulder more and more of the burden and that corporations are carrying a less-and-less share. In fact, as this graph shows, the corporations are nearing becoming insignificant in their contribution to the general welfare and maintenance of our government.

Source: US Office of Mgt and Budget https://www.whitehouse.gov/sites/default/files/omb/budget/fy2016/assets/hist02z3.xls

The data for this graph is from Office of Management and Budget in this file.