Posts Tagged ‘John Quiggin’

Weekend reading, 29 October 2010

Friday, October 29th, 2010

A version of this list of recommendations also comes out earlier in the day as part of the weekly Policy Progress e-newsletter.

Jon Cruddas - Taking Back the Big Society
A rich, sprawling and very worthwhile speech from UK MP Cruddas, the unofficial leader of the Labour left over there. A few extracts:

Across Europe social democracy has been reduced to parties of the public sector and the liberal middle class.

. . . The task at hand is for Labour to rebuild its identity grounded in ordinary, everyday working class culture.

. . . Labour built new schools and hospitals; a massive social investment. An historic achievement. No-one seems very grateful.

Labour in government pursued efficiency, ‘value for money’, and ‘customer satisfaction’ but it did not take care of the human relationships and trust that lie at the heart of public services. It used the market and the state as heartless instruments of reform. People felt excluded. They did not feel an ownership of the new grand buildings.

With embarrassing speed the Conservatives detached Labour from its own achievements. The market failure of the banks was turned into a crisis of public debt and blamed on Labour.

. . . In our history Labour has always responded to dispossession; to economic and social loss. It must do so again by rediscovering a warmth and generosity; especially in England by learning from our previous generations who have all dealt with the same patterns of loss. As such, Labour’s Good Society lies deep in the English struggle for popular democracy. (Read more)

John Kearne – Decline, fall and rebirth
This lengthy essay from The Australian presents an account of the history and evolution of social democracy and asks whether we are “living through a rare period of rupture” in which social democracy will be eclipsed by the green movement. Kearne traces some similar developments to those I’ve discussed in my Theoretical Foundations series of posts, though perhapsin a pithier style.

John Quiggin - Cosmopolitan social democracy

The left needs to offer a transformational vision of a better society if it is to motivate the kind of enthusiasm needed to overcome a rightwing politics of tribalism and (often misperceived) self-interest . . . We need a world view that extends the solidarity of social democracy to the whole of humanity. (Read more)

Dan Hind - The Media, the crisis, and the crisis in media
An intriguing suggestion from Hind, a former publisher and now author:

Clearly the media are in crisis. But if the current system doesn’t work, and the widely circulated proposals for reform won’t make a significant difference, what should we do? In The Return of the Public I make the case for a system of public commissioning. Instead of relying exclusively on professional commissioning editors all citizens take some responsibility for directing journalistic inquiry ourselves.

. . . To fund this system of public commissioning a sum of money could be taken from tax revenues or from licence fees and allocated to regional trusts. Journalists, academics and citizen researchers would post proposals for funding with these trusts . . . The public would then vote for the proposals that it wanted to support. (Read more)

Gordon Campbell – On The Hobbit finale
I’m not keen to get drawn into all the ins and outs of Hobbit-gate on this site, but this suggestion from Campbell, the veteran political columnist now with Scoop, was rather interesting:

In one important sense, The Hobbit experience has given New Zealand a second chance. What LOTR offered was an opportunity to build an entire industry off the back of what Peter Jackson had achieved. We could have created a wide ranging knowledge industry of a sort that bypassed the usual tyranny of New Zealand’s distance from its markets. Almost by accident from a national planning point of view, the film industry could have become exactly the sort of business cluster that Harvard University marketing guru Michael Porter had – decades ago – urged New Zealand to create.

Did we take full advantage of that opportunity? Hardly. . . . successive governments have left the private player (Jackson) to do all the heavy lifting, while keeping the Film Commission on starvation rations . . . We have a world leading FX shop, and little else of any stature . . . Keeping The Hobbit now gives us a second chance to re-balance the mix, because film seems to be what we do best. It is our knowledge economy forte.

This is not a case of picking winners. The winner, in the shape of Weta Digital at least, has already galloped past the post and picked up the Cup for being a globally recognized star performer. The strategy now should be to seriously fund and foster the growth of spinoffs – in gaming, in animation, design shops etc – that will enable the industry to expand out horizontally. To pull its weight properly in this process the Film Commission needs more funding – under conditions that ensure it meets cultural and commercial objectives from micro-budget features to mainstream theatrical releases. (Read more)

Paul Krugman - Falling Into the Chasm
Martin Wolf – Why US voters are suing Dr Obama

Krugman:

If Democrats do as badly as expected in next week’s elections, pundits will rush to interpret the results as a referendum on ideology. President Obama moved too far to the left, most will say . . . But the truth is that if the economic situation were better — if unemployment had fallen substantially over the past year — we wouldn’t be having this discussion.

Wolf:

With a political stalemate expected, further action will now be blocked. A lost decade seems quite likely. That would be a calamity for the US – and the world.

Also:
John Kay – Why you can have an economy of people who don’t sweat
Jake Brewer – The Tragedy of Political Advocacy

Weekend reading, 22 October 2010

Friday, October 22nd, 2010

A version of this list of recommendations also comes out earlier in the day as part of the weekly Policy Progress e-newsletter.

Ben Baumberg – Should we defend the middle class welfare state?
An interesting and challenging post on Left Foot Forward from Ben Baumberg of the LSE and the group-blog Inequalities. He concludes:

[UK Labour leader Ed] Miliband somehow needs to avoid several temptations: not to give in to the siren call of means-testing everything, nor to universally defend universalism. To help him in this, we need to think through the welfare state systematically, rating the impact of targeting and means-testing against a complete set of principles – and come up with a plan for targeted universalism that is both affordable and which defends the key achievements of the middle-class welfare state.

John Quiggin - Five Zombie Economic Ideas That Refuse to Die
Progressive Australian economist John Quiggin has a new book out called Zombie Economics: How Dead Ideas Still Walk among Us which looks interesting and accessible. This article from Foreign Policy provides a useful introduction to some of what he has to say.

Big Cake – What if greenies are right? Growth: we can’t live with it, can’t live without it. Another great TED talk
Local blogger (and friend of Policy Progress) Big Cake’s take on Tim Jackson (who I discussed here).

OECD - Business as usual is not an option
Interesting to see this from as ‘establishment’ an organisation as the OECD:

“Business as usual” is not an option. That’s why the OECD is developing a Green Growth Strategy to help governments design and implement policies that can shift our economies onto greener growth paths. Central to this is identifying sources of growth which make much lighter claims on the biosphere. This will require fundamental changes to the structure of our economies, by creating new green industries, cleaning up polluting sectors and transforming consumption patterns.

Seth Godin – What does ‘pro-business’ mean?
Author Seth Godin makes a distinction between ‘pro-business’ policies and ‘pro-factory’ policies.

Also:
David Cunliffe – Cactus Kate on FDI
No Right Turn – Choice
Keith Ng - Did you know we’re in a recession?
John Kay - Barbarians at the gates of complexity
Matthew Yglesias – Global Economic Impact of Immigration

And on the ‘to read’ pile:
Brendan Mai, John Janssen, Geoff Lewis, Simon McLoughlin - Taking on the West Island: How does New Zealand’s labour productivity stack up? (New Zealand Treasury Productivity Paper 10/01)

Weekend reading – looking back over the first six months

Friday, September 3rd, 2010

A version of this list of recommendations also comes out earlier in the day as part of the weekly Policy Progress e-newsletter.

In keeping with this week’s commemoration of Policy Progress reaching the 6 months mark, I thought it might be interesting to plunge into the past for this week’s recommendations. Each of the following were originally included in early editions of my e-newsletter, back before I began republishing those recommendations on the blog. So, for all of the material below, this will be its first appearance on the World-Wide Web!

My first-ever recommendation from 26 February 2010:

Rod Oram – Epoch-defining insight … and the govt missed it

Rod Oram’s Sunday Star-Times column is back, and his first column for 2010 is a particularly good one. For me, it really seems to bring together a number of his recent key themes.

From 12 March 2010:

Matthew Taylor – Prison works, or at least, it can do

Matthew Taylor is an interesting guy. He used to be an advisor to Prime Minister Tony Blair, and now he’s the chief executive of the 250-year-old Royal Society for the Arts. His blog isn’t as high-profile or widely-read as some others in Britain, but I frequently find it worthwhile and thought-provoking. This post is likely to have raised hackles within both camps of the law & order debate.

2 April 2010:

Matthew Yglesias – The End of Big Government Liberalism

Yglesias is a US blogger who I read pretty regularly. He blogs professionally, being employed by the Center for American Progress think-tank as part of their Think Progress project. He is one of those annoying guys who, at the age of 28, seems to already be able to often insightful comments on just about any policy area under the sun. Very intimidating! Anyway, this post has a somewhat provocative argument that, while framed in the US context, is intended to apply more universally. It’s probably a good idea to read his follow-up post Fighting About Modes of Delivery, where he clarifies a few of his points, alongside this one.

30 April 2010:

John Quiggin – After the Dead Horses and A journey of a thousand miles begins with a single step

I’ve been conscious over the last few months that this section was heavy on Brits and Yanks but didn’t have any Australians, and I aim to correct that. John Quiggin is an economist at the University of Queensland and the author of a number of books, including the forthcoming Zombie Economics: How Dead Ideas Still Walk among Us. These posts seem to herald a new focus on progressive renewal that fits well with our Theoretical Foundations theme. I’ve already linked to the earlier of the two (and Matthew Yglesias’s response) in yesterday’s post, but I suspect this is a thread I’ll be coming back to a bit in future. Also, any recommendations of other Australian authors I should follow would be most welcome (I’m looking at people who write stuff of general application rather than commentary on the Australian political scene).

And, finally, 18 June 2010 (appropriate to this week’s column):

Martin Wolf – The grasshoppers and the ants – a modern fable and elucidating the fable

Paul Krugman – The Pain Caucus

Robert Reich – Several factors point to double-dip recession (audio)

Brad DeLong – What’s in the Cards for Our Economy?

The Age (Australia) – ‘Act two’ of crisis begins: Soros

Predicting the economy, especially the world economy, is a tricky business, and not one I’d want to enter into lightly. But it does seem to be that there has been a crystallising of negativity amongst some of the economic writers I most respect, at the same time that the mainstream media (at least here in New Zealand) seems to be saying “okay crisis over, time to move on”. There are some different shades of opinion presented in these US and UK columns and blogs. Robert Reich (Clinton’s former Secretary of Labour) warns a double-dip recession is looming, whereas Brad DeLong feels the more likely scenario is a Japanese-style ‘lost decade’ of low growth. Either way it doesn’t sound good.

We’ll be back to our regularly scheduled round of recommendations next week!

The small country’s option?

Thursday, April 29th, 2010

Like many people, I suppose, I have a bunch of writers and commentators whose work I’m impressed by and whom I follow pretty regularly. One of the things I aim to do with the blog section of Policy Progress is to share these people and some of their insights with other New Zealand progressives.

You’ve already heard me talk about Martin Wolf and (closer to home) Rod Oram, and I’ve mentioned Brad Delong in passing a couple of times. It’s only a matter of time before Will Hutton and Paul Krugman crop up. (And there have been a few others mentioned in my weekly email newsletter.)

As I foreshadowed last week, however, one of my very favourite writers at the moment is a guy named Matthew Yglesias. Yglesias is a fulltime professional blogger, employed by the Center for American Progress think-tank as part of their Think Progress project. He is one of those intimidating guys who, at the age of 28, seems to already be able to offer insightful comments on just about any policy area under the sun. He often has a way of turning an issue around and offering something incisive that you hadn’t thought of before, or else citing an author and crisply summarising the ‘take-home message’ from what they’d written.

Yglesias is prolific (ten posts a day isn’t unusual) and writes on a range of topics. Much of what he writes is pretty specific to a US audience (filibuster reform is currently a big theme), but a lot of his writing about ideas is relevant to us, and very occasionally he even mentions New Zealand.


One example of the latter that I’d like to reference and expand on came last November in a post entitled Israel’s Recession. Yglesias was responding to a claim from William Galston of the New Republic that Israel had weathered the global recession particularly well because of a unique policy approach that rejected both Keynesian stimulus and supply-side approaches. Yglesias was sceptical:

Knowing that Israel is a small country, I suspected that the real story is what Israel did is just let its currency sink in value, boosting exports.

. . . This is exactly what I would do if I were in charge of Israel. Faced with a downturn, a small developed economy needs to be much more worried than a large developed economy does about maintaining markets’ confidence in your ability to sustain your debt level. At the same time, a small developed economy has much more ability to sustain employment and growth by making its currency cheaper. So a policy of austerity and devaluation is a very reasonable course of action.

He provides an exchange rate graph to illustrate his point, and then adds that this approach doesn’t have much application to a large country with a huge internal market like the US, but is “possibly relevant to Sweden, Iceland, and New Zealand“.

That got me thinking, to what extent do we see the same pattern taking place here? So I put together the following graph, comparing New Zealand, Israel and Sweden. (I decided that Iceland’s situation was unique.)

Yglesias explains that “since the onset of the downturn in mid-2008 the Shekel has gotten cheaper relative to the Euro, the Yen, and even dollar which has itself been depreciating”. We can see from our graph that much the same thing happened in New Zealand and Sweden; in fact, both these countries exhibit the same pattern as Israel but to a more pronounced extent.

So what have been the results?

Each country’s path is different, but clearly Israel was touched by the recession to a much lesser degree than either New Zealand or Sweden, despite the much greater exchange rate falls that these two countries experienced in the second half of 2008.

This doesn’t necessarily invalidate Yglesias’s suggestion that Israel’s exchange rate decline helped it escape the recession. But clearly an exchange rate decline is not sufficient on its own.


Also from Yglesias, but more recent and on a more theoretical level, is The Very Big Picture. Check it out, this is a really interesting piece.

Yglesias responds to Australian economist John Quiggin’s lament about the lose of a sense of “possibility of a fundamental transformation of capitalism” amongst modern progressives. Yglesias counters, “It turns out that welfare state capitalism just is the alternative to capitalism” and then gets into how it’s now “more possible than ever for people’s non-commercial labors to have a meaningful impact on the world”.

Quite a bit of food for thought on both sides, and I’m sure I’ll return to this exchange again in a future post. In the meantime, I’d be interested in your thoughts.