Neoclassical Growth Model – Intersindical RTVV http://www.intersindicalrtvv.com/ Wed, 21 Jul 2021 11:31:13 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://www.intersindicalrtvv.com/wp-content/uploads/2021/03/intersindicalrtvv-icon-70x70.png Neoclassical Growth Model – Intersindical RTVV http://www.intersindicalrtvv.com/ 32 32 The demonization of China by the United States and its allies may be counterproductive https://www.intersindicalrtvv.com/the-demonization-of-china-by-the-united-states-and-its-allies-may-be-counterproductive/ https://www.intersindicalrtvv.com/the-demonization-of-china-by-the-united-states-and-its-allies-may-be-counterproductive/#respond Wed, 21 Jul 2021 09:42:00 +0000 https://www.intersindicalrtvv.com/the-demonization-of-china-by-the-united-states-and-its-allies-may-be-counterproductive/ Richard D. Wolf
July 21, 2021 19:42 GMT + 10

The economy of the People’s Republic of China has grown much faster than that of the United States for decades. The same is true of the average real wage in China. China is now the world’s second-largest superpower, economically catching up with the United States, if not (again). Its political influence increased with the GDP. Where the main US scapegoat was once the Soviet Union / Russia, China replaced the latter in this position. The global tourism industry is opening courts to Chinese big spenders.

China’s technological advancements continue to surprise and impress most of the world.

The basic story here largely duplicates the history of the United States and the British Empire. The United States was once just a colony, humiliated and financially abused by its settlers. China suffered similarly at the hands of the colonized aggressors, but was able to escape its official colonial status, with the exception of a few excursions. The resentment and bitterness built up in the collapse of the colonial era American Revolutionary War in the second half of the 18th century. The same thing happened in China in the middle of the 20th century. In the War of 1812, the new United States proved that the British Empire could not defeat the War of 1812. In the Korean War, the new People’s Republic of China proved that the American Empire could not not undo the Chinese revolution.

Independence economically caught up with the colonists throughout the 19th century, triggering rapid economic growth in the United States which overtook it. World War I showed a role reversal between the United States and Great Britain. On many levels – political, cultural and economic – rulers and rulers have shifted. Throughout the 20th century, the United States banished (and replaced itself) the British Empire and other European empires, thus becoming a global hegemony. After a terrible stumbling block in the Great Depression, he responded with an explosion of social democracy in the New Deal. On top of that, the United States has promised that other countries around the world will copy what they call “people” or “welfare” capitalism, which represents the epitome of human development. At the turn of the 21st century, critics named British Prime Minister Tony Blair the “American Poodle” because of his subordinate subordination to the administration of George W. Bush in the United States.

Likewise, the Chinese Revolution of 1949 sparked an astonishing economic recovery after the series of tragedies of Japanese aggression, World War II and Civil War. The economic recovery has allowed a political maturity that transforms the Chinese Communist Party and the People’s Republic of China from Soviet and Soviet followers into the equivalent of their own program, values ​​and interpretations of Marxism. Culturally, China has gained incredible confidence as the awakened giant regains its hegemonic status in Asia and beyond. Due to the changes in world affairs and the constant exhaustion of the resumption phase of its development, China changed course with the death of Mao Zedong. He created a new Chinese economy and named it socialism with Chinese characteristics.

The economy has not only achieved the unprecedented feats of growth mentioned above, but also without providing most of the foreign aid to many other developing countries. The active hostility of the United States has imposed its deprivation on China. It also made independence the decisive foundation for China’s development. Over the past half century, China has been a model of the determination with which developing countries mobilize their surplus for development. Through huge investments in infrastructure, industrial capacity, capacity growth, education and R&D, Chinese workers have created surpluses which are mainly used to build and develop the Chinese economy. This deliberate investment program continued after China opened the door (1) to foreign private capitalist investment, (2) to the development and growth of Chinese private capitalist enterprises, and (3) to partnerships between they. .. The Chinese Communist Party and the National Organization of China have controlled and manipulated the resulting acceleration of excess production to invest in the growth targets set by the party and the state. China’s surplus was then used to recreate the complex class structure of private and state-owned enterprises, as well as foreign and domestic private capitalists, and ultimately to undertake market regulation and government economic planning. It was.

Today, the challenge that China presents to the United States, and indeed to the capitalist world economy, is a model that deviates considerably from the capitalist model of private laissez-faire that has prevailed in world capitalism. In this last model, the government is called to (Lacanes) only if the crisis hits and threatens private capitalism. And government economic intervention is limited in scope and scope and is temporary in time. Minimal government regulation and minimal direct production of goods and services by government are important rules.

In China, on the other hand, the Communist Party and the state intervene much more in economic problems by regulating more private companies (foreign and domestic) and letting the state own and operate businesses. What is brought to the party and to the nation is global control of economic development. Its control goes far beyond the role of government in Western Europe, North America and Japan in scope and duration. Having parties and states as a community to conduct determined policies enables the regular mobilization of most private and public resources to achieve agreed goals. The most important goal is economic development to escape the poverty peculiar to South Asia. The mobilization to stop the spread of COVID-19 through blockades in Wuhan and elsewhere was another example. It was also technically comparable and at times superior to the United States in many areas.

Keynesian economics flourished in the realm of economics when government policy clearly supported the survival of capitalism and recovery from the Great Depression of the 1930s. Neoclassical economics began in the 1970s when government policy (neoliberalism) clearly allowed Keynes’ private capitalists to support the retreat of regulations and constraints (like the New Deal and Social Democracy). There is an opportunity to regain control within the profession. China’s remarkable economic growth over the past 30 to 40 years will be triggered and made possible by corresponding developments in the field of the economy. These will involve the rediscovery, acceptance and strengthening of government economic intervention as a means of achieving socially priority goals.

As the denial of China’s continued economic success loses its rhetoric, if and how capitalism in Western Europe, North America and Japan can learn from China and coexist with China. More and more attention will be paid to the Chinese model to explore. Demonization and threats (New Cold War) directed at China’s real and false political and cultural issues are also likely to diminish in favor of mutual adaptation with China. Chinese leaders have expressed their view that, alongside state-owned and operated companies, they have and will continue to deal with trade and investment with private capitalists. This is the driving force behind their remarkable development and they believe there is no reason to change this approach.

Rather, it is part of the United States considering a military conflict with China as necessary and now reasonably possible. If that happens, the Chinese will see what the United States really opposes: the retention of power by the Chinese Communist Party and the social structure presided over by the Chinese state. Chinese leaders have said he will fight it completely.

The Chinese population is more than four times that of the United States. The total output of this economy can far exceed that of the United States in a matter of years. Its global political influence is growing rapidly. Increasingly, U.S. allies need to rethink their foreign relations in light of Chinese rule. Meanwhile, America’s economic woes (such as unstable cycles, wealth and income inequalities, political divisions, and explosive debt build-up) are increasing. The ability of the United States to change China, away from its traditional path and structure, and its ability to move it away from its traditional path and structure has proved unimpressive to almost anyone there. pay attention.

Speeding up the demonization of China appears to be a poor response and perhaps counterproductive. Yes, it duplicates the Soviet demonization that helped effectively cover the New Deal backtracking. However, rolling back the progress of other countries is a completely different project than doing it domestically. Also, the world situation today (economic, political, cultural) is very different from what it was after 1945. Nonetheless, Biden’s repetition of Cold War policies since 1945 is much closer to the original policy as the economic policy of Franklin Delano Roosevelt. And that will turn out to be the exact opposite of what the current crisis needs.

(Richard D. Wolff is Emeritus Professor of Economics at the University of Massachusetts Amherst and Visiting Professor in the Program at the New School University Graduate School of International Affairs, New York. Wolff’s weekly “Economic Updates” is syndicated . 100 other radio stations switch to 55 million television receivers via Free Speech TV. His last three books Where Democracy Works is Illness is a system: when capitalism cannot save us from a pandemic or from itself, Understanding Marxism,and Understanding socialism)..

Source: Independent Media Institute

This article was created by The economy for all, project of the Independent Media Institute.

(Image credit: Sunday Guardian).

The demonization of China by the United States and its allies may be counterproductive

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Sixt SE greatly exceeds market expectations in the second quarter of 2021 despite the ongoing pandemic with an EBT of approx. 78 million euros and emissions forecasts for the current financial year https://www.intersindicalrtvv.com/sixt-se-greatly-exceeds-market-expectations-in-the-second-quarter-of-2021-despite-the-ongoing-pandemic-with-an-ebt-of-approx-78-million-euros-and-emissions-forecasts-for-the-current-financial-year/ https://www.intersindicalrtvv.com/sixt-se-greatly-exceeds-market-expectations-in-the-second-quarter-of-2021-despite-the-ongoing-pandemic-with-an-ebt-of-approx-78-million-euros-and-emissions-forecasts-for-the-current-financial-year/#respond Tue, 20 Jul 2021 14:45:48 +0000 https://www.intersindicalrtvv.com/sixt-se-greatly-exceeds-market-expectations-in-the-second-quarter-of-2021-despite-the-ongoing-pandemic-with-an-ebt-of-approx-78-million-euros-and-emissions-forecasts-for-the-current-financial-year/

DGAP-News: Sixt SE / Keyword (s): Quarterly results / Forecasts
20.07.2021 / 16:45
The issuer is solely responsible for the content of this advertisement.

Sixt SE significantly exceeds market expectations in the second quarter of 2021 despite the ongoing pandemic with profit before tax (EBT) of approx. 78 million euros and emissions forecasts for the current financial year

Pullach, July 20, 2021 – Despite the ongoing COVID-19 pandemic, the business performance of the Sixt Group in the second quarter of 2021 was positive and exceeded market expectations. Based on preliminary figures, profit before tax (EBT) improved to approx. 78 million euros for the April to June quarter. Consolidated operating revenue in the second quarter of 2021 of approx. 498 million euros more than doubled year-on-year (225.8 million euros), but was 20% lower than consolidated operating income for the second quarter of 2019 (625.7 million euros). euros). SIXT thus exceeded analysts’ estimates for the second quarter, who expected on average EBT of 61 million euros and consolidated sales of 468 million euros..

This result can be explained in particular by the positive trend in activity and the increase in the price level in the United States and in Europe, the significant recovery in activity in Europe thanks to the reduction in restrictions linked to the pandemic. as well as the continued cost management of SIXT.

SIXT publishes forecasts for the whole of 2021 for the first time
So far, Sixt SE has not been able to issue a forecast for 2021 due to very high uncertainties regarding the future course of the COVID-19 pandemic. Based on the first quarter figures, the evaluation of the preliminary second quarter figures as well as up-to-date information on the current course of business, the board of directors of Sixt SE today published for the first time a forecast for 2021: For the 2021 financial year, the Management Board expects an EBT of between 190 million euros and 220 million euros (2020 (from continuing operations): -81.5 million euros) and consolidated operating income of between € 1.95 billion and € 2.10 billion (2020: € 1.52 billion). The average analyst estimate for the Sixt Group’s consolidated revenue for 2021 of 2.09 billion euros is within the range of forecasts. However, the EBT range forecast for 2021 is higher than market expectations of 187 million euros.

The forecast for fiscal year 2021 has been prepared on the basis of the current market environment and is based in particular on the assumption that the continuation of the COVID-19 pandemic will not again lead to greater travel restrictions, that the price in the United States and Europe will remain at current levels; and that vehicle supply shortages due to the semiconductor crisis will not worsen.

Alexander Sixt, co-CEO of Sixt SE: “The second quarter developed extremely positively, with EBT of around 78 million euros well above market expectations. Despite the lingering uncertainties, particularly for the fourth quarter, we currently expect the positive trend to continue. For the current financial year, we therefore forecast EBT in the range between 190 million euros and 220 million euros, which is also higher than market expectations, and consolidated operating income of between 1, 95 billion euros and 2.10 billion euros The forecasts for the financial year 2021 have been established on the basis of the current market environment and is based in particular on the assumption that the continuation of the COVID pandemic- 19 will not again result in greater travel restrictions, that the price level in the United States and Europe will remain at current levels and that the supply shortages for vehicles due to the semiconductor crisis will not get worse. This very positive development in business clearly demonstrates unbr a strong desire of people to be mobile again and to travel as soon as possible. Our performance in the second quarter also shows that the strategic decisions we made during the crisis, such as the acquisitions we made in the United States and the launch of our SIXT + car subscription, are now having an impact. But above all, our success is the result of the tireless efforts of our employees, for whom I would like to express my sincere thanks on behalf of the entire Management Board. “

Teacher. Dr. Kai Andrejewski, CFO of Sixt SE: “Thanks in particular to our solid financing structure, Sixt SE was able to successfully implement measures to counter the effects of the pandemic on its own. Despite remaining uncertainties, we can now issue a forecast for the full year 2021. This forecast assumes continued positive business development and its EBT is above average analyst estimates. “

Sixt SE will publish its interim group report on June 30, 2021 as scheduled on August 12, 2021.

About SIXT
Sixt SE, headquartered in Pullach near Munich, is one of the leading international providers of high-quality mobility services. With its SIXT rent, SIXT share, SIXT ride and SIXT + products, the company offers a uniquely integrated premium mobility service in the areas of vehicle and utility vehicle rental, car sharing, carpooling and travel subscriptions. car. Products can be booked through a single app, which also integrates the services of its renowned mobility partners. SIXT is present in around 110 countries around the world. The company is characterized by a consistent customer orientation and an excellent customer experience, a vibrant culture of innovation with strong technological expertise, the high proportion of premium vehicles in its fleet and an attractive quality-price ratio. The Sixt Group has doubled its turnover since 2009 and generated a turnover of 3.31 billion euros in 2019 and is ranked among the most profitable mobility companies in the world. In 2020, SIXT generated consolidated revenue of 1.53 billion euros despite travel and emissions restrictions due to the COVID-19 pandemic and reported positive consolidated net profit of 2 million euros. euros after cost savings of around 600 million euros among others. Sixt SE is the parent company of the Group and has been listed on the Frankfurt Stock Exchange since 1986 (ISIN ordinary share: DE0007231326, ISIN preferred share: DE0007231334). https://about.sixt.com

Press contact
Sixt SE
Catherine greven
Sixt central press office
Telephone: +49 – (0) 89 – 74444 6700
Email: pressrelations@sixt.com

20.07.2021 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
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US underestimates China’s economic challenge at its peril https://www.intersindicalrtvv.com/us-underestimates-chinas-economic-challenge-at-its-peril/ https://www.intersindicalrtvv.com/us-underestimates-chinas-economic-challenge-at-its-peril/#respond Tue, 20 Jul 2021 02:14:27 +0000 https://www.intersindicalrtvv.com/us-underestimates-chinas-economic-challenge-at-its-peril/

Now is not the time for rose-tinted glasses.

By Richard D. Wolff

The economy of the People’s Republic of China has been growing much faster than that of the United States for decades. The same goes for China’s average real wage. China is now the world’s second superpower, catching up with the United States economically if not (again) militarily. Its political influence grows alongside its GDP. While once the main US scapegoat was the USSR / Russia, China has replaced the latter in this position. The global tourism industry is courting the big Chinese spenders.

China’s technical progress continues to amaze and impress most of the world.

The basic story here largely reproduces the history of the United States and the British Empire. The United States was once a mere colony, humiliated and economically abused by its colonizer. China suffered similarly at the hands of its colonizing aggressors, although it was able to avoid official colonial status, with the exception of some enclaves. The resentment and bitterness accumulated in the revolutionary American break from its colonial status at the end of the 18th century. The same thing happened in China in the middle of the 20th century. In the War of 1812, the new United States proved that the British Empire could not defeat the American Revolution. During the Korean War, the new People’s Republic of China proved that the American Empire cannot undo the Chinese revolution.

Independence sparked rapid economic growth in the United States, which caught up and economically overtaken its colonizer throughout the 19th century. World War I marked the reversal of roles between the United States and the United Kingdom. On many levels, political and cultural as well as economic, the dominant and the dominated have shifted. During the 20th century, the United States moved (and itself replaced) the British and European empires to become world hegemony. After stumbling badly in the Great Depression, he responded with the explosion of New Deal social democracy. On this basis, the United States is committed to making the rest of the world copy what it calls a “popular” or “social” capitalism which represents the embodiment of human development. At the turn of the 21st century, critics called British Prime Minister Tony Blair “America’s Poodle” for his slavish subordination to the regime of George W. Bush in the United States.

The Chinese Revolution of 1949 also sparked an astonishing economic recovery after the successive plagues of the Japanese invasion, World War II, and the Civil War. The economic recovery allowed a political maturation which transformed the Chinese Communist Party and the People’s Republic of China from followers of the Soviet Party and the USSR into equals with their own program, their values ​​and their interpretation of Marxism. Culturally, China has gained remarkable self-confidence as a waking giant reclaiming its hegemonic position in Asia and beyond around the world. Changing global conditions and some exhaustion in the resumption phase of its development led China to change course with the passing of Mao Zedong. He shaped a new Chinese economy and labeled it socialism with Chinese characteristics.

Not only has this economy achieved the unprecedented feats of growth mentioned above, it has also done so without most of the foreign aid given to many other developing countries. The active enmity of the United States has imposed this deprivation on China. It has thus made self-sufficiency a crucial basis for China’s development. For the past half-century, China has been a model of how a determined developing country can mobilize its surplus for development. Chinese workers produced a surplus that was used primarily to build and develop the Chinese economy through huge investments in infrastructure, industrial capacity, productivity growth, education, and research and development. This deliberate investment program continued even after China’s opening up (1) to foreign private capitalist investment, (2) to the development and growth of Chinese private capitalist enterprises, and (3) to partnerships between them. The Chinese Communist Party and the Chinese state apparatus controlled and maneuvered the resulting acceleration of surplus production to direct investment towards growth targets set by the party and the state. China’s surplus was also used, secondly, to reproduce the complex class structures of private and state-owned enterprises and foreign and domestic private capitalists, and finally to undertake market regulation and government economic planning. .

Today, China’s challenge to the United States and even to the capitalist world economy is a model that deviates sharply from the private laissez-faire model of capitalism that has prevailed in world capitalism to this day. In the latter model, the government intervenes (à la Keynes) only when crises strike and threaten private capitalism. And then the government’s economic interventions are limited in scope and scope and are temporary over time. Minimal government regulation and minimal direct production of goods and services by the government are the key rules.

In contrast, in China, the Communist Party and the state intervene much more in economic affairs by regulating more private companies (foreign and domestic) and also by ensuring that the state owns and operates businesses. This results in overall control of economic development for the party and the state. This control, in its scope and duration, far exceeds the role of governments in Western Europe, North America and Japan. Having the party and the state as collaborative entities pushing determined policies allows the regular mobilization of most private and public resources to achieve agreed goals. The main objective has been economic development to escape the endemic poverty of South Asia. The mobilization to stop the spread of COVID-19 via lockdowns in Wuhan and elsewhere was another example. The same has been true of achieving technical parity and sometimes superiority with the United States in many areas.

Keynesian economics experienced a meteoric rise in the discipline of economics when it allowed government policies to clearly aid the survival and recovery of capitalism after the Great Depression of the 1930s. Neoclassical economics was able to once again dominate. within the profession in the 1970s when it allowed government policies (neoliberalism) to clearly help roll back the Keynesian regulations and constraints of private capitalists (like the New Deal and Social Democracy). China’s remarkable economic growth over the past 30 to 40 years will likely provoke and be further fostered by corresponding developments in economic discipline. These will involve the rediscovery, adoption and strengthening of economic interventions by governments as a means of achieving socially priority objectives.

As denials of what China continues to accomplish economically lose their rhetorical power, attention will likely turn increasingly to the Chinese model, to explore whether and how Western European capitalisms, d North America and Japan can learn from China and coexist with it. Demonizations and threats (a new cold war) directed at real and false political and cultural issues in China will also likely fade away in favor of mutual compromise with China. The Chinese leadership has made it clear that they have accommodated and will continue to accommodate the trade and investment of private capitalists alongside and interacting with state-owned and managed companies. It was a driving force behind their remarkable development, and they see no reason to change that approach.

Rather, it is parts of the United States that see a military confrontation with China as necessary and rationally possible now. If that happens, the Chinese will see it for what the United States has actually opposed, which is the retention of power by the Chinese Communist Party and the social structure over which it and the Chinese state preside. Chinese leaders have said they will fight this totally.

China has more than four times the population of the United States. The total output of its economy could well exceed that of the United States in a few years. Its global political influence is growing rapidly. Increasingly, U.S. allies need to rethink their foreign relations in light of Chinese influence. Meanwhile, America’s economic woes (such as cycles of instability, wealth and income inequalities, political divisions, and explosive debt build-up) are escalating. The ability of the United States to change China, away from the path and structures that have brought it so far and so quickly, has proven to be less than impressive to virtually anyone who cares.

Speeding up demonizations of China seems a poor response and possibly counterproductive. Yes, it reproduces the demonization of the USSR which served effectively to cover the retreat of the New Deal. But for the United States, rolling back another country’s progressive period is an entirely different project from doing it domestically. Moreover, the conditions (economic, political and cultural) of the world today differ considerably from those after 1945. Yet Biden’s repetition of Cold War policies after 1945 is much closer to this original than its economic policies are not those of Franklin Delano Roosevelt. And that will turn out to be the exact opposite of what the current crisis needs.

This article was produced by The economy for all, a project of the Independent Media Institute.


Richard D. Wolff is Emeritus Professor of Economics at the University of Massachusetts, Amherst, and Visiting Professor in the Graduate Program in International Affairs at New School University, New York. Wolff’s weekly show “Economic Update” is syndicated by over 100 radio stations and distributed to 55 million television receivers via Free Speech TV. His three recent books with Democracy at Work are Sickness is the system: when capitalism fails to save us from pandemics or from itself, Understanding Marxism, and Understanding socialism.


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Mount Tabor mansion, once vandalized and auctioned, sells for $ 1,925,000 https://www.intersindicalrtvv.com/mount-tabor-mansion-once-vandalized-and-auctioned-sells-for-1925000/ https://www.intersindicalrtvv.com/mount-tabor-mansion-once-vandalized-and-auctioned-sells-for-1925000/#respond Mon, 19 Jul 2021 13:04:56 +0000 https://www.intersindicalrtvv.com/mount-tabor-mansion-once-vandalized-and-auctioned-sells-for-1925000/

A vandalized neoclassical-style mansion in the Mount Tabor neighborhood in southeast Portland has been auctioned off and developers have circled with plans to carve up the property. Instead, the highest bidders restored the 1909 Jacob H. Cook House, and a couple bought it on July 14 for $ 1,925,000.

The once majestic mansion was abandoned in 2010, a victim of the housing crisis and recession. For eight years, squatters filled it with trash, vandals graffiti the walls, and thieves sneaked in with the hardware and light fixtures.

Despite years of neglect, however, many original features have survived: oak and mahogany floors and pocket doors, rare Rookwood Faience ceramic fireplace tiles, and 70 windows, including precious leaded glass.

Vandals spray painted the wall above a JL Mott Iron Works tub, but did not damage its irreplaceable enameled cast iron. They also protected the open staircase in double L, entirely constructed in quarter-sawn oak. And above a beautifully designed paneling, someone has scrawled a respectful message saying that “this [work] took the time. “

In 2018, investors Lyrin Murphy and Steve Day outbid others who were considering the one-third acre site.

Murphy, who revived 10 other historic homes, oversaw the renovation and restoration of the four-level Cook Mansion. Its objective: to save everything that is original and to match the missing elements with period replacements.

It was in fact dealing with two eras: the house was first built in 1892, during the Victorian era, most likely in the Queen Anne style.

Next, businessman Jacob H. Cook, owner of logging companies and newspapers, and his wife, Etna, bought the property for $ 7,500 in 1904, as the city prepared for its biggest promotional campaign. effective: The Lewis and Clark Centennial Exhibition of 1905.

The popular crowd-favorite fair sparked a population boom that brought prosperity to streetcar communities east of the Willamette River, such as Mount Tabor. In 1909, the Cooks spent $ 12,000 to extensively renovate their home, inside and out, to give it its present appearance.

The original 1892 cooler with three sets of twin doors and original hardware has survived misguided kitchen renovations over the decades. During his renovation, Murphy installed Calacatta marble countertops and a cast iron farmhouse sink. The water damaged flooring was replaced with an old, salvaged tongue and groove Douglas fir.

Almost all of the replacement appliances in the 6,820 square foot home are period antiques.

Murphy also worked to get the carefully restored home listed on the National Register of Historic Places.

The Jacob H. Cook House has also been referred to as the “Christmas House” due to the holiday events of the previous owners, then “Walter”, in reference to the rumor that the family of Mickey Mouse creator, Walt Disney, have lived here.

“It really is a remarkable space and the new owners are perfect for the house,” says Murphy. “I couldn’t ask for a better next chapter for this amazing house that has been through so much.”

The great staircase AFTER / BEFORELyrine Murphy

Neoclassical elements include a portico with Tuscan columns that creates a wraparound porch, a balcony on the second floor, and a smaller balcony on the third level. Of the original 300 B-shaped balusters on the second-story balcony, 230 were saved while heavily deteriorated parts were milled to match.

The balconies, porch, and window frames were rebuilt and reinforced during the 2019 restoration, and carpenters hand-cut pieces to replace the deteriorated Douglas fir siding.

The original quarter-stained oak front door, between two large side windows in regent leaded glass, is still crowned with a metal acanthus leaf motif.

There is a new roof, electricity and plumbing, six restored bedrooms and six upgraded bathrooms while the brick basement has retained its naturally cool wine cellar and billiard room.

Jacob H. Cook Manor

The original tub was not damaged. AFTER / BEFORE photosLyrine Murphy

– Janet Eastman | 503-294-4072

jeastman@oregonian.com | @janeteastman

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APAC region, Europe and America will act as a revenue generator for the ballet performances market over the period 2021-2027 https://www.intersindicalrtvv.com/apac-region-europe-and-america-will-act-as-a-revenue-generator-for-the-ballet-performances-market-over-the-period-2021-2027/ https://www.intersindicalrtvv.com/apac-region-europe-and-america-will-act-as-a-revenue-generator-for-the-ballet-performances-market-over-the-period-2021-2027/#respond Sun, 18 Jul 2021 11:34:42 +0000 https://www.intersindicalrtvv.com/apac-region-europe-and-america-will-act-as-a-revenue-generator-for-the-ballet-performances-market-over-the-period-2021-2027/

Industry Analysis Report on “Ballet Show Market Size | Industry segment by applications (under 18, 18-34, 35-50, over 50, by region, North America, United States, Canada, Europe, Germany, France, United Kingdom , Italy, Russia, Nordic, Rest of Europe, Asia-Pacific and China), by type (classical ballet performance, neoclassical ballet performance and contemporary ballet performance), regional outlook opportunity, market demand, latest trends , Ballet Performance Share and Revenue by Manufacturers, Company Profiles, Growth Forecast – 2027. Analyzes the current market size and the upcoming growth of this industry in the coming years.

Request a sample copy of this report- Request a free sample

Global Ballet Performance Market explores efficient study of various industry sections like opportunities, size, growth, technology, demand, and trends of top players. It also provides key market statistics on the status of manufacturers, a valuable source of direction, guidance for companies and individuals interested in the industry.

The main players covered in ballet performance are: Bolshoi Ballet Paris Opera Ballet New York City Ballet American Ballet Theater (ABT) Mariinsky Theater American Repertory Ballet Vienna State Ballet The Royal Ballet Tokyo Ballet The National Ballet of China The Australian Ballet Hong Kong Ballet.

Distribute by product type, with the production, revenue, price, market share and growth rate of each type, can be divided into:

  • Classical ballet show
  • Neoclassical ballet performance and contemporary ballet performance

Split by application, This report focuses on the consumption, market share and growth rate of the Ballet Market in each application and can be segmented into:

  • Under 18
  • 18-34 years
  • 35-50 years
  • Over 50 years
  • By region
  • North America
  • United States
  • Canada
  • Europe
  • Germany
  • France
  • UK
  • Italy
  • Russia
  • Nordic
  • The rest of europe
  • Asia-Pacific and China

Among other players, national and global ballet performance market share data is available separately for Global, North America, Europe, Asia-Pacific, Middle East, Africa and South America. Analysts understand competitive forces and provide competitive analysis for each competitor separately.

Top reasons to buy this report

  • Acquire in-depth market analyzes and have a comprehensive understanding of the global market and its business landscape.
  • Evaluate assembly processes, major issues and solutions to mitigate event risk.
  • To understand the major driving and restraining forces affecting the market and its impact on the global market.
  • Discover the market strategies adopted by the main respective organizations.
  • Understand the longer term outlook and market outlook.
  • In addition to quality structure reports, we also offer custom research according to specific requirements.

Development policies and plans are discussed as well as manufacturing processes and cost structures are also analyzed. This report also shows import / export consumption, supply and demand figures, costs, prices, revenues and gross margins.

Market segmentation

The Dance Performance market is segmented by Type and by Application. For the period 2020-2027, the growth among the segments provides accurate sales calculations and forecasts by type and by application in terms of volume and value. This analysis can help you grow your business by targeting qualified niche markets.

Research objective:

  • Focuses on the global leading manufacturers of the Ballet Performance market, to define, describe and analyze sales volume, value, market share, market competition landscape, SWOT analysis, and plans for development over the next few years.
  • In addition, business contributors, while business analysts across the entire value chain, have gone to great lengths to perform this group action and heavy lifting has produced key players with primary data. and useful secondaries regarding the global ballet performance market
  • Analyze competitive developments such as extensions, agreements, new product launches and acquisitions in the market.
  • To draw up a strategic profile of the main players and to analyze in depth their growth strategies.

Why select this report:

  • A comprehensive analysis of market dynamics, market state and competitive view of ballet performance is offered.
  • The forecast of global ballet entertainment industry trends will present market drivers, restraints and growth opportunities.
  • The five year forecast view shows how the market is expected to grow in the coming years.
  • All vital verticals of the global Ballet Show industry are presented in this study such as product type, applications, and geographic regions.

The research process begins with internal and external sources to obtain qualitative and quantitative information related to the ballet performances market. It also provides an overview and forecast for the ballet performances market based on all the segmentation provided for the global region. The predictions highlighted in the Ballet Performance market share report were derived using verified research procedures and hypotheses. In doing so, the research report serves as a repository of analysis and information for each component of the Ballet Show market.

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Despite recent failures in the oil sector, not all public investment is bad https://www.intersindicalrtvv.com/despite-recent-failures-in-the-oil-sector-not-all-public-investment-is-bad/ https://www.intersindicalrtvv.com/despite-recent-failures-in-the-oil-sector-not-all-public-investment-is-bad/#respond Fri, 16 Jul 2021 11:00:00 +0000 https://www.intersindicalrtvv.com/despite-recent-failures-in-the-oil-sector-not-all-public-investment-is-bad/

This column is an opinion of Sara Hastings-Simon, Assistant Professor in the School of Public Policy at the University of Calgary. For more information on CBC Opinion Section, please consult the Faq.

With a series of high-level and struggling public investments in the oil sector, the “bitumen mess” at oil by rail and XL keystone, there is a temptation to generalize by considering that all public investments are bad.

At the same time, there is a strong push to invest in carbon capture and storage, with demands for future public capital in the tens of billions of dollars.

If the only lesson learned from failures is the risk of government involvement, then it will be too easy to see mistakes repeating themselves again. Instead, it is essential to clarify the role of government, what differentiates good public investments from those that become waste, and how to approach public investment to maximize results and avoid costly mistakes.

The theory of government intervention

Even neoclassical economic theory admits that there are “market failures”, or gaps where things go wrong in markets and government intervention is needed.

For example, private firms will underinvest in research and development because they get only part of the benefits of the resulting innovation, since other firms can copy the unpatentable innovation and thereby reap the benefits without having to invest upfront. There may also be challenges around developing infrastructure to deploy new technologies at scale – the “chicken and egg” issue for electric vehicles and charging infrastructure.

Other schools of thought see an even more important role for the government enabling innovation and economic growth, including direct support for radical technical innovations that solve a clearly defined problem.

Governments cannot stay out of markets because markets are unnatural, rather they are created and shaped by the choices governments make through laws and regulations.

The role of government in the private sector is not just a theory. It can be seen repeatedly throughout history.

US President Joe Biden signs his first executive orders, including an order revoking the license for the Keystone XL pipeline. Governments should be wary of investing in politically risky projects in other jurisdictions, says Sara Hastings-Simon. (Evan Vucci / The Associated Press)

In Alberta, one of the clearest examples of the role of government is the development of in situ mining technology for the oil sands, where critical investments in the development of a facility and in the trials were funded 100 percent by the government. Likewise in the fossil fuel sector, the shale gas revolution dates back more than 25 years. U.S. government programs and funding.

Government funding essential for the development and deployment of technology can be found behind everything from agriculture to smartphone or the computer you’re reading this story on.

However, the clichés about public investment – “governments shouldn’t be doing business” and “governments shouldn’t pick winners” – actually contain elements of the truth about how to invest wisely.

Don’t be in business

Public funding should not replace private capital, doing so – at best – only contributes to the profits of a private project. Instead, governments should be looking to do things the private sector cannot do. For example, dividing the risk in a project and assigning it to the entity – government or private sector – that can best manage it and enable investments and economic development that would not otherwise occur.

The key is to make sure the right risks go to the right player.

Governments are well placed to manage or hedge policy risks in their jurisdiction, as they directly control future policy changes, making it natural to take actions such as monetize future increases in carbon pricing today. They can also better hedge aggregate price risks in an economy-wide market, for example where low electricity prices might challenge individual producers but benefit the economy as a whole.

On the other hand, governments have little control over policy risks in other jurisdictions, such as US government decision on a pipeline license. Likewise, the risk of cost overruns for the construction of a privately managed project is beyond government control, as is the case with the Sturgeon refinery.

The appropriate allocation of risk must be accompanied by an equitable sharing of rewards to avoid creating windfall with public money.

As the case of oil by rail illustrates, details matter when the government decides to foray into the private sector. Transactions should be structured to limit the overall downside risk, says Sara Hastings-Simon. (SRC)

The operator of the Alberta Electricity System renewable energy supply process managed to keep the market on the rise with the government taking the market risk, while leaving the direction of construction and the associated rise to the developers. Ensuring that the potential hike is evenly distributed can also help keep government out of the business role – if businesses really need government support, they will be more willing to forgo a certain hike in return.

Don’t pick the winners

Many of the recent investments that have encountered difficulties are instances where governments have directly chosen a ‘winner’ by supporting a specific business, project or approach, outside of a transparent and competitive process to find the best solution to the problem. a clearly defined problem.

Politicians can avoid this trap by sticking to setting a clear goal or direction of mission that the government supports. Defining the market challenge in terms of desired end goals then allows the private sector to respond with a wide range of options across technologies and approaches, rather than government presupposing the outcome.

Those within the government bureaucracy responsible for evaluating and comparing options should be isolated from politics and supported by external experts who can provide technical advice.

Learn business

There are some lessons that governments can apply from the private sector. Two important elements are the structuring of the agreements to limit the overall downside risk – as illustrated in the case of oil by rail, the details of the contract are important – and the willingness to pull out and accept some losses. Just as no private investor has a 100 percent success rate, public investments should be judged on the basis of a portfolio where big gains should more than cover losses.

The recent spate of issues with Alberta government investments calls public investments into question, but rather than generalizing around broad government investments, each case contains key lessons on how to ensure future investments public benefit the public.

As stewards of public funds charged with ensuring a healthy economy, governments must ensure that they are playing the right role based on what they have to offer, setting clear goals that are pursued with transparent measures that are fair to the public for their investment, and put in place systems and structures to keep politics out of investment decisions.


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Corporate tax cuts do not boost growth – Philip Heimberger and Sebastian Gechert https://www.intersindicalrtvv.com/corporate-tax-cuts-do-not-boost-growth-philip-heimberger-and-sebastian-gechert/ https://www.intersindicalrtvv.com/corporate-tax-cuts-do-not-boost-growth-philip-heimberger-and-sebastian-gechert/#respond Thu, 15 Jul 2021 03:02:01 +0000 https://www.intersindicalrtvv.com/corporate-tax-cuts-do-not-boost-growth-philip-heimberger-and-sebastian-gechert/

The global “race to the bottom” of corporate taxes over the past decades has implicitly been that it promotes growth. Does he do it yet?

Philippe heimberger

The idea that corporate tax cuts could improve economic growth has long occupied researchers. The claim that a wave of corporate tax cuts will lift all boats through increased growth has been a central part of the “supply-side” economy, from Ronald Reagan’s US presidency in the 1980s to the opportunist power politics of his current successor, Donald Trump. . And in current economic policy debates about how to recover from the pandemic, this notion has found political supporters in a number of European countries, including conservative and liberal parties in Germany, facing the fall Bundestag elections.

corporate tax cuts, economic growth
Sebastien gechert

The supposed effects of corporate taxation on growth are also relevant to the recent debate among the G7 and G20 on a global minimum tax rate for multinationals and, where appropriate, on the threshold level. to fix. While the new US administration led by Joe Biden argues that the growth effects of previous tax cuts have often been overstated, those who advocate caution counter that a minimum tax will have a negative impact on growth – and more the minimum, the greater the impact.

Economic theory

One camp argues that tax cuts will increase profit margins, which will improve investment and therefore growth and jobs; the other doubts this mechanism, pointing to the opportunity costs of lower tax revenues. But what does economic theory suggest?

In the neoclassical growth model associated with veteran American economist Robert Solow, long-term growth stems from exogenous technological progress. Fiscal policy cannot then “only” affect the level of gross domestic product and the transition to stable growth. Lower corporate taxes encourage business savings and investment and therefore imply higher GDP in the long run.

In recent “endogenous” growth models, corporate tax cuts can also have a positive impact on the long-term growth rate, by boosting total factor productivity (which is added to capital and labor). discrete) and innovation. Since the ultimate tax incidence would be borne by natural persons (shareholders, workers and consumers) anyway, and tax pass-through is associated with efficiency losses, some standard models argue that the optimal rate corporate tax should therefore be zero.

Others, however, argue that higher taxation of capital can promote economic growth, by shifting the tax burden from labor and / or by financing productive public spending. Moreover, since corporate tax cuts tend to benefit richer households with a low propensity to consume, they generate little growth on the demand side. Supply-side effects are also expected to be much smaller when they benefit higher-income households.

Nonetheless, the dominant theoretical prediction, upon which most empirical work is based, remains that corporate tax cuts promote growth.

Empirical studies

Empirical studies have examined the growth effects of business taxation for different groups of countries and time periods, using different datasets and econometric methods. Relevant factors include how studies measure tax changes (whether in statutory or effective rates or in revenue from production), how they address endogeneity (because growth in turn affects tax revenue ), whether they focus on short- or long-term effects, which countries and time periods they select, and whether they control other items in the budget (other taxes or government spending).

A careful reading of the literature suggests that the reported results vary considerably. Some studies find substantial and strong positive effects on the growth of corporate tax cuts. But others report significantly negative, insignificant, or mixed results.

In a meta-review, we collect 441 estimates from 42 primary studies. We apply the Meta-Analysis Toolkit to analyze the magnitude of the precision-weighted effect (assigning greater importance to studies with more precise results) when corrected for factors that may introduce bias. And we provide model-based results on the impact of certain data and choice of specifications on the estimates reported in the literature.

Imprecise positive growth effects

The graph below shows that the results are indeed very dispersed and have varying precision. The strongest positive growth effects of corporate tax cuts reported in the literature tend to be imprecise: they have large standard errors. The unweighted average of studies suggests that a one percentage point reduction in corporate tax is associated with an increase in economic growth of around 0.02 percentage point per year – a moderate but significant effect (a 10 percentage point cut in corporate tax rates would imply a 0.2 percentage point increase in GDP growth).

corporate tax cut, growth

This result could, however, be affected by selection in the publication process: study authors and journal editors might prefer results that are consistent with theory and that are meaningful, leading to publication bias. Examining the correlation between the estimated effect size and its standard error can help determine whether such a bias exists – in its absence, econometric theory suggests that there should not be a systematic correlation.

However, we find a negative and significant correlation, which implies that the growth effects of corporate tax cuts are overestimated. When we control the influence of this publication bias, we find ourselves without a positive effect of the corporate tax cuts on growth rates: we can no longer reject the null effect hypothesis.


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We confirm this result using several approaches to detect publication bias. All of our estimates find an insignificant effect of corporate tax cuts on economic growth, close to zero. It is four to five times more likely to publish a statistically significant growth enhancing effect of a corporate tax cut than to publish a non-significant effect.

More information

Our study provides further information on the factors relevant to explaining the greater or lesser effects on growth of corporate tax cuts.

First, the samples of countries (members of the Organization for Economic Co-operation and Development or non-OECD countries) do not seem to make a significant difference. developed countries versus emerging markets. Second, recent studies tend to find less pro-growth effects of corporate tax cuts. Third, controlling public spending seems relevant: tax cuts are a little more favorable to growth when public spending is not cut at the same time. This result is consistent with endogenous growth theory, which suggests that using government revenue from corporate taxation to increase (productive) government spending can have positive effects on growth.

Our results suggest that the prominent role given to corporate tax cuts in policy debates is overstated. While tax cuts have boosted international tax competition in recent decades, they do not appear to have helped growth.

corporate tax cuts, economic growth

Philipp Heimberger is an economist at the Institute for International Economic Studies in Vienna (wiiw) and at the Institute for Global Economic Analysis (Johannes Kepler University in Linz).

corporate tax cuts, economic growth

Sebastian Gechert is Head of the Income Distribution Macroeconomics Unit at the Institute for Macroeconomic Policy (IMK) in Düsseldorf.


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Give us a three-day weekend at the beach, every week https://www.intersindicalrtvv.com/give-us-a-three-day-weekend-at-the-beach-every-week/ https://www.intersindicalrtvv.com/give-us-a-three-day-weekend-at-the-beach-every-week/#respond Sun, 11 Jul 2021 13:40:33 +0000 https://www.intersindicalrtvv.com/give-us-a-three-day-weekend-at-the-beach-every-week/

It was to be expected. Beyond personal (“we’re lazy”) or absurd attacks (eg saying we want to donate money to businesses “friends” of us), there have been two main serious criticisms.

The first is that it would be an unaffordable cost for businesses if it were not associated with commensurate increases in productivity. Second, like every time a social breakthrough is proposed, we hear that it is “not the right time”. Regarding the pilot project itself, the two critiques make no sense: it is a limited experiment involving companies willing to participate, and will cost a tiny € 50m in public spending.

Also, the idea is to provide government support to voluntary companies and compare them with non-voluntary companies. If the essay is well designed, both types of businesses would be subjected to the same economic situation, so it doesn’t matter if we go through a depression or a bull cycle.

But suppose these criticisms relate to the reduction of working time in a more generalized way. Is the cost to businesses bearable? Now is the right time to do it? Más País thinks so. Let us take a recent study simulating the reduction of working time from forty hours to thirty-five hours, via two phases of legislation, covering first large companies then small companies (according to the Aubry II law in France in 2000).

It estimates that around 560,000 jobs could be created, representing a net increase in employment of 6%, an increase in wages of 4.2% and, as a consequence of increased consumer demand, an increase in GDP of 1.55%. In other words, a reduction in working time would not only be not get worse recession, but could also lead to even higher growth.

We suggest that the extension of the reduction in working time includes a first incentive and voluntary phase, targeting the companies most prepared to take this step. The aim is to achieve a sufficient critical mass (perhaps 20-25% of companies), after which the implementation would be generalized by law. In this first phase, the role of unions will also be essential, by introducing the reduction of working time in collective or company agreements.

We believe that this process would generate less resistance, but also that it would promote changes in the working culture of the country, and also develop key know-how for the measure to spread smoothly. Already now, a recent UK survey estimated that 5 percent of companies are implementing the four-day week and an additional 17 percent are considering it. In Spain, another survey revealed that 12% of companies would be ready to reduce the working day to four days without a reduction in pay, which represents some four hundred thousand companies.


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The fender designed by Kurt Cobain will be reissued in honor of “Nevermind” https://www.intersindicalrtvv.com/the-fender-designed-by-kurt-cobain-will-be-reissued-in-honor-of-nevermind/ https://www.intersindicalrtvv.com/the-fender-designed-by-kurt-cobain-will-be-reissued-in-honor-of-nevermind/#respond Thu, 08 Jul 2021 16:23:08 +0000 https://www.intersindicalrtvv.com/the-fender-designed-by-kurt-cobain-will-be-reissued-in-honor-of-nevermind/

The Jag-Stang was a guitar that Nirvana frontman Kurt Cobain designed with Fender in the early ’90s, and the company is re-releasing the Mexican-made model later this year to honor the 30th anniversary of their groundbreaking album, It does not matter.

Cobain combined the Mustang and Jaguar Fender models and came up with the prototype of the Jag-Stang, which he took on the road with him in 1994 when the band was on tour to support their third album. In utero, MusicRadar reports.

“Kurt always played two guitars,” remembers Fender’s Larry Brooks. “He took pictures of each one, cut them in half and put them together to see what they would look like. It was his concept, and we detailed and profiled it to give it balance and feel.”

Brooks remembered that the Nirvana frontman was easy going when he came up with the concept of the Jaguar-Mustang hybrid. “I had a chance to sit down and talk with him, and then we built a prototype for him. He played it for a while, then wrote some suggestions on the guitar and sent it back to us. times, we got it right. “

The Jag-Stang combines all of the features Cobain loved in the Mustang and Jaguar models, and will allow players to create a sound similar to that of the late rocker. It will be released in October 2021, the following month. It does not matter celebrates its 30th anniversary. Both right-handed and left-handed editions will be available in “Sonic Blue” and “Fiesta Red” colors for $ 1,249.

See the images below and find out where you can get a Jag-Stang here.

Top 66 Hard Rock + Metal Guitarists of All Time

Countdown of the greatest rock and metal guitarists.


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Opinion: If you want to fix climate change, you have to fix this flaw in conventional economic thinking https://www.intersindicalrtvv.com/opinion-if-you-want-to-fix-climate-change-you-have-to-fix-this-flaw-in-conventional-economic-thinking/ https://www.intersindicalrtvv.com/opinion-if-you-want-to-fix-climate-change-you-have-to-fix-this-flaw-in-conventional-economic-thinking/#respond Wed, 07 Jul 2021 18:14:00 +0000 https://www.intersindicalrtvv.com/opinion-if-you-want-to-fix-climate-change-you-have-to-fix-this-flaw-in-conventional-economic-thinking/

BRUSSELS, Belgium (Project Syndicate) – Nowhere are the limits of neoclassical economic thought – the DNA of economics as it is currently taught and practiced – more apparent than in the face of the climate crisis. As new ideas and models emerge, the old orthodoxy remains deeply rooted. Change cannot come quickly enough.

The discipline of economics has failed to understand the climate crisis – let alone provide it with effective policy solutions – because most economists tend to break problems down into manageable little chunks. Rational people, they usually say, think on the margins. What matters is not the average or all of its actions but rather the next step, weighed against the immediate alternatives.


The most effective way to introduce new ideas into peer-reviewed academic literature is to follow something akin to an 80/20 rule: stick to the established scenario for the most part; but try to push the boundaries by probing one questionable hypothesis at a time.

Such thinking is indeed rational for small discrete problems. Compartmentalization is necessary to manage competing demands for time and attention. But marginal thinking is inadequate for a consuming problem affecting all aspects of society.

The power of the economy over public discourse

Economists also tend to equate rationality with precision. The power of discipline over public discourse and policymaking lies in its implicit assertion that those who cannot calculate the precise benefits and costs are somehow irrational. This allows economists – and their models – to ignore pervasive climate risks and uncertainties, including the possibility of climate tipping points and societal responses to them.


A return to balance – a “return to normalcy” – is far too human a preference. But it is precisely the opposite of what is needed – phasing out fossil fuels quickly – to stabilize the global climate.

And when we consider the fixation of economists on equilibrium models, the mismatch between the climate challenge and the current tools of the discipline becomes too glaring to be ignored.

Yes, a return to balance – a “return to normalcy” – is far too human a preference. But it is precisely the opposite of what is needed – phasing out fossil fuels quickly – to stabilize the global climate.

These limits are reflected in the cost-benefit analyzes of reducing emissions of carbon dioxide and other greenhouse gases. Traditional thinking suggests a slow path to reducing CO2. The logic seems compelling: The cost of damage from climate change, after all, is incurred in the future, while the costs of climate action occur today. The Nobel Prize’s verdict is that we should delay the necessary investments in a low-carbon economy to avoid harming the current high-carbon economy.

To be clear, much thought has been given to showing that even this conventional logic would require much more climate action today, as the costs are often overestimated while the potential benefits (even if they are uncertain) are under- estimated.

Marginalized ideas

Young researchers who are pushing this work forward have to walk an almost impossible tightrope, as they cannot publish what they believe to be their best work (based on the most defensible assumptions) without invoking the outdated neoclassical model to demonstrate the validity of new ideas.

The very structure of university economics almost guarantees that marginal thinking continues to dominate. The most effective way to introduce new ideas into peer-reviewed academic literature is to follow something akin to an 80/20 rule: stick to the established scenario for the most part; but try to push the boundaries by probing one questionable hypothesis at a time.

Needless to say, this makes it extremely difficult to change the overall frame of reference, even when those who helped set the standard vision are themselves looking far beyond.


In the context of this traditional view, recent statements by the International Monetary Fund and the International Energy Agency are simply revolutionary. The two institutions have now concluded that ambitious climate action leads to higher growth and more jobs, even in the short term.

Take the case of Kenneth J. Arrow, who shared a Nobel Prize in economics in 1972 for showing how marginal actions taken by interested individuals can improve the well-being of society. This pioneering work cemented the equilibrium thinking of economists.

But Arrow lived another 45 years, and he spent that time moving beyond his previous job. In the 1980s, for example, he was instrumental in founding the Santa Fe Institute, which devoted itself to what has since come to be known as the science of complexity, an attempt to transcend the state of spirit of balance which he had helped to establish.

Because equilibrium thinking underlies the traditional climate-economic models that were developed in the 1990s, these models assume that there are trade-offs between climate action and economic growth. They imagine a world where the economy simply slides down a Panglossian path of progress. Climate policy may still be worth it, but only if we are prepared to accept costs that will take the economy off the path it has chosen.

Climate investments create jobs

In the context of this traditional view, recent statements by the International Monetary Fund and the International Energy Agency are simply revolutionary. The two institutions have now concluded that ambitious climate action leads to higher growth and more jobs, even in the short term.

The logic is simple: Climate policies create far more jobs in clean energy sectors than they lose in fossil fuel sectors, reminding us that investing is the flip side of the cost. That is why the proposed US $ 2 trillion infrastructure package is expected to boost net economic activity and jobs. Perhaps more surprising is the finding that carbon pricing alone appears to reduce emissions without harming jobs or overall economic growth. The problem with carbon taxes or emissions trading is that real-world policies don’t reduce emissions fast enough and will therefore need to be backed up by regulation.

There is no excuse for continuing to adhere to an intellectual paradigm that has served us so badly for so long. Standard models have been used to reject policies that would have helped turn the tide many years ago, at a time when the climate crisis could still have been resolved with marginal changes to the existing economic system. Now we no longer have the luxury of being able to settle for gradual change.

The good news is that rapid changes are occurring on the political front, not least due to the falling cost of climate action. The bad news is that the neoclassical framework of economics still blocks progress. The discipline is long overdue for its own tipping point towards new ways of thinking commensurate with the climate challenge.

Tom Brookes is Executive Director of Strategic Communications at the European Climate Foundation. Gernot Wagner is Clinical Associate Professor of Environmental Studies at New York University.

This commentary was posted with permission from Project Syndicate – Economics Needs a Climate Revolution

Learn more about climate change from Project Syndicate

It is high time that economists gave nature its due

Scientists and policymakers need to talk about climate change as if it were a tragedy we can prevent

Bill Gates explains why he is optimistic about preventing catastrophic climate change, even though he warns that we have “no time to waste”


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