The Atlantic - 31 Jul 2018
A growing body of research helps explain why US productivity is so low, and increases in worker compensation so piddling, even as the stock market is surging and corporate profits are at historical highs. Rather than improving their longer-term competitiveness or investing in their workers, companies are buying back their stock to make their owners richer in the short term (reads in 7-9 min).
Published in Weekly selection 4 August 2018
Foreign Affairs (metered paywall) - 23 Jul 2018
The president of the Peterson Institute for International Economics exposes the long-term costs of economic nationalism. In a nutshell: investments in the US are becoming less attractive relative to those in the rest of the world. This year, net inward investment into the US by multinational corporations - both foreign and American - has fallen almost to zero. This shift of corporate investment away from the US will decrease the country’s long-term income growth, reduce the number of well-paid jobs and reinforce the ongoing shift of global commerce away from the US (reads in 6-8 min).
Published in Weekly selection 28 July 2018
Carnegie Endowment - 22 Jun 2018
Moises reviews Stephen Brill’s “Tailspin”, which argues that last century, America partitioned into two nations: the exploiters and the exploited - an unintended consequence of what seemed at the time to be progressive policies. The Administrative Procedure Act of 1946 allowed lobbyists to capture government agencies. Free speech absolutism led to Citizens United. Meritocracy allowed the smartest to capture everything, and feel they were entitled to hold on to it (reads in 6-7 min).
Published in Weekly selection 30 June 2018