Colin Kidd | Gove or Galtieri
There is an air of wistful regret to Ziblatt’s conclusion that ‘a viable and robust conservative political party’ with a ‘chance of winning elections at least some of the time’ is the price we pay for democratic stability. The alternatives, he contends, come at a much heavier price. Churchill once joked that ‘democracy was the worst form of government, apart from all the others’; but in Ziblatt’s bleak refinement of that insight, we wouldn’t have a functioning democracy at all without a viable Conservative option at the ballot box.
6 days ago
How the Elderly Lose Their Rights | The New Yorker
Guardians can sell the assets and control the lives of senior citizens without their consent—and reap a profit from it.

By Rachel Aviv
7 days ago
How house flippers, not poor subprime borrowers, triggered the US housing market crash — Quartz
Analyzing a huge dataset of anonymous credit scores from Equifax, a credit reporting bureau, the economists—Stefania Albanesi of the University of Pittsburgh, the University of Geneva’s Giacomo De Giorgi, and Jaromir Nosal of Boston College—found that the biggest growth of mortgage debt during the housing boom came from those with credit scores in the middle and top of the credit score distribution—and that these borrowers accounted for a disproportionate share of defaults.

As for those with low credit scores—the “subprime” borrowers who supposedly caused the crisis—their borrowing stayed virtually constant throughout the boom. And while it’s true that these types of borrowers usually default at relatively higher rates, they didn’t after the 2007 housing collapse. The lowest quartile in the credit score distribution accounted for 70% of foreclosures during the boom years, falling to just 35% during the crisis.
7 days ago
Stumbling and Mumbling: The crisis of positive-sum capitalism
From the mid-40s to the mid-70s, high wage growth and full employment were in capitalists’ interests. Rising wages sustained aggregate demand not only via consumer spending growth, but also because higher wages gave firms incentives to invest in labour-saving technology.

In the 70s, though, this ceased to be the case. Wage growth then began to squeeze capitalists’ profits. The positive-sum game became a zero-sum one, as Marglin and Bhaduri have described.

The solution to this was Thatcherism, or if you prefer neoliberalism. Policies aimed at restoring profit margins by weakening trades unions and the welfare state and creating job insecurity helped to raise productivity, profit rates and growth.

But we might now be back in a phase of a positive-sum game.
7 days ago

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