Worsening economic inequality in recent years is largely the result of policy choices that reflect the political influence and lobbying power of the rich.
By Jayati Ghosh – Since reducing inequality became an official goal of the international community, income disparities have widened. This trend, typically blamed on trade liberalization and technological advances that have weakened the bargaining power of labor vis-à-vis capital, has generated a political backlash in many countries, with voters blaming their economic plight on ‘others’ rather than on national policies. And such sentiments of course merely aggravate social tensions without addressing the root causes of worsening inequality.
But in an important new article, the Cambridge University economist José Gabriel Palma argues that national income distributions are the result not of impersonal global forces, but rather of policy choices that reflect the control and lobbying power of the rich.
The driving force behind these trends is market inequality, meaning the income distribution before taxes and government transfers. Most OECD countries continually attempt to mitigate this through the tax-and-transfer system, resulting in much lower levels of inequality in terms of disposable income.
But fiscal policy is a complicated and increasingly inefficient way to reduce inequality, because today it relies less on progressive taxation and more on transfers that increase public debt. For example, European Union governments’ spending on social protection, health care and education now accounts for two-thirds of public expenditure, but this is funded by tax policies that let off the rich and big corporations while heavily burdening the middle classes, and by adding to the stock of government debt. more>
Posted in Business, EARTH WATCH, Economic development, Economy, Education, History, How to, Media, Net, Technology
Tagged Business improvement, Capital, Inequality, Internet, poor, Rich, Wealth
Revolutionizing Plant Performance with the Digital Twin and IIoT eBook
By Jim Brown – How can manufacturers use the digital twin and industrial IoT to dramatically improve manufacturing and product performance?
The manufacturing industries are getting more challenging. Manufacturers must evolve as new technologies remove barriers to entry and enable new, digital players to challenge market share. Operational efficiency is no longer enough to compete in today’s era of digitalization and Industry 4.0.
To remain competitive, companies have to maintain high productivity while offering unprecedented levels of flexibility and responsiveness. We believe this is a fundamental disruption that will change the status quo. To survive, manufacturers need to digitalize operations in order to improve speed, agility, quality, costs, customer satisfaction, and the ability to tailor to customer and market needs.
One of the most compelling digitalization opportunities is adopting the digital twin. This approach combines a number of digital technologies to significantly improve quality and productivity. It starts with comprehensive, virtual models of physical assets – products and production lines – to help optimize designs. But the value is much greater because the physical and virtual twins are connected and kept in sync with real data from the Internet of Things (IoT) and Industrial IoT (IIoT).
Further, companies can use analytics to analyze digital twin data to develop deep insights and intelligence that allow for real-time intervention and long-term, continuous improvement.
The digital twin holds significant productivity and quality opportunities for the plant. It can be used to understand when the plant isn’t operating as intended. It can identify or predict equipment issues that can result in unplanned downtime or correct process deviations before they result in quality slippage, scrap, and rework. more>
Posted in Broadband, Business, Economic development, Economy, Education, How to, Technology
Tagged Business improvement, Capital, Electronics, PLM, Product lifecycle management, Productivity, Siemens, Skills
By Sanjukta Paul – Where does economic power come from? Does it exist independently of the law?
It seems obvious, even undeniable, that the answer is no. Law creates, defines and enforces property rights. Law enforces private contracts. It charters corporations and shields investors from liability. Law declares illegal certain contracts of economic cooperation between separate individuals – which it calls ‘price-fixing’ – but declares economically equivalent activity legal when it takes place within a business firm or is controlled by one.
Each one of these is a choice made by the law, on behalf of the public as a whole. Each of them creates or maintains someone’s economic power, and often undermines someone else’s. Each also plays a role in maintaining a particular distribution of economic power across society.
Yet generations of lawyers and judges educated at law schools in the United States have been taught to ignore this essential role of law in creating and sustaining economic power.
Instead, we are taught that the social process of economic competition results in certain outcomes that are ‘efficient’ – and that anything the law does to alter those outcomes is its only intervention.
These peculiar presumptions flow from the enormously powerful and influential ‘law and economics’ movement that dominates thinking in most areas of US law considered to be within the ‘economic’ sphere.
Bruce Ackerman, professor of law and political science at Yale University, recently called law and economics the most influential thing in legal education since the founding of Harvard Law School.
The Economics Institute for Federal Judges, founded by the legal scholar Henry Manne, has been a hugely influential training program in the law and economics approach. more>
Posted in Banking, Book review, Broadband, Business, CONGRESS WATCH, Economic development, Economy, Education, History, How to, Net, Technology
Tagged Business improvement, Capital, Congress Watch, Government, Inequality, Internet, Law