↳ Miscellaneous

October 24th, 2019

↳ Miscellaneous

Exploitation, Cooperation, and Distributive Justice

An interview with John Roemer

Throughout his career, John Roemer's work has been uniquely situated between the fields of microeconomics, game theory, philosophy, and political science. His research makes use of the tools of classical economics to analyze dynamics typically thought to be outside the scope of economics: from notions of fairness and morality, to the possibility of overcoming capitalist social relations. In doing so, it defends those tools against charges that they can’t describe the behaviors we see, at the same time as it renders vital social questions digestible for disciplines that rarely engage them.

Roemer is perhaps best known for his contributions to theories of distributive justice. Within the field of moral philosophy, he is one of a handful of scholars who have sought to formalize distributive theories in order to compare their merits. To moral philosophers, he argues that outright dismissal of consequentialist theories of justice, and their replacement by complicated deontological models, is a mistake. And to the world of economics, he posits that economic theory cannot be divorced from moral philosophy—that the emphasis on reaching equilibrium itself necessarily carries moral assumptions.

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September 12th, 2019

Money Parables

Three competing theories of money

In the past year, Modern Monetary Theory (MMT) has shifted the policy debate in a way that few heterodox schools of economic thought have in recent memory. MMT’s central notion—that nations with their own strong currencies face no inherent financial constraints—has made its way into politics and, notably, the world of finance. The last few months have brought MMT explainers from financial media outlets including Reuters, CNBC, Bloomberg, Barron’s, and Business Insider, as well as from investment analysts at Wall Street firms including Goldman Sachs, Bank of America, Fitch, Standard Chartered and Citigroup.

Popularizing the shorthand notion that “deficits don’t matter” has been an achievement for those promulgating MMT. Yet one largely unappreciated change brought about by the MMT debates involves a somewhat subtler point: a shift in the implicit story we tell about money.

The rise of MMT poses a challenge to the mainstream commodity money story. That parable, familiar to anyone who has taken high school economics or read Adam Smith, involves an inefficient barter system that gives way to the more convenient use of some token that represents value, typically a precious metal. If government plays a role in this story, it is only to regulate money after the marketplace births it.

The MMT parable—known in the literature as chartalism—reverses the commodity money view. For chartalists, money arises through an act of law, namely the levying of a tax which requires citizens to go out and get that which pays taxes; the state comes first and markets are subsequent. As Abba Lerner puts it, money is “a creature of the state.”

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August 8th, 2019

Networks, Weak Ties, and Thresholds

An Interview with Mark Granovetter

Few living scholars have had the influence of Mark Granovetter. In a career spanning almost 50 years, his seminal contributions to his own field of sociology have spread to shape research in economics, computer science, and even epidemiology.

Granovetter is most widely known for his early contributions to social network analysis—in particular his 1973 article, “The Strength of Weak Ties.” In that paper, Granovetter demonstrated that, because of the way social networks evolve, “weak ties” between people often form bridges between clusters of more strongly connected individuals and thus serve as important conduits of novel information. This surprising finding has proven to have important and enduring implications for a diverse range of fields. The paper remains one of the most cited social science articles of all time.

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August 1st, 2019

Decentralize What?

Can you fix political problems with new web infrastructures?

The internet's early proliferation was steeped in cyber-utopian ideals. The circumvention of censorship and gatekeeping, digital public squares, direct democracy, revitalized civic engagement, the “global village”—these were all anticipated characteristics of the internet age, premised on the notion that digital communication would provide the necessary conditions for the world to change. In a dramatic reversal, we now associate the internet era with eroding privacy, widespread surveillance, state censorship, asymmetries of influence, and monopolies of attention—exacerbations of the exact problems it portended to fix.

Such problems are frequently understood as being problems of centralization—both infrastructural and political. If mass surveillance and censorship are problems of combined infrastructural and political centralization, then decentralization looks like a natural remedy. In the context of the internet, decentralization generally refers to peer-to-peer (p2p) technologies. In this post, I consider whether infrastructural decentralization is an effective way to counter existing regimes of political centralization. The cyber-utopian dream failed to account for the exogenous pressures that would shape the internet—the rosy narrative of infrastructural decentralization seems to be making a similar misstep.

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