Using Innovism Instead of Capitalism

McCloskey’s suggestion for changing the term “capitalism” into “innovism” might be a more practical way of arguing for free markets. Capitalism, as it’s tossed around in conversation, ends up getting misconstrued by both sides of the argument, because it lends itself to assume that societies have only become rich through the accumulation of capital. However, this is simply not true. It is ideas and the ability for entrepreneurs to assume the risks of employing the factors of production, by means of prices set in a market, to produce new (and perceived better) products or services to then turn around and sell them at uncertain prices in the market. The z, not the k, in our Solow model, if you will. This is “trade-tested betterment” as also proposed by McCloskey. Continue reading “Using Innovism Instead of Capitalism”

Advertisements

Barbers: Automation vs Occupational Licensing

We continue to be on guard for industries in which workers are likely to be replaced by machines and automation. Food service and accommodations, transportation, and retail are all expected to be taken over by automated processes. Employment numbers in the manufacturing sector continue to dwindle as machines take on the bulk of the work. Continue reading “Barbers: Automation vs Occupational Licensing”

Dilemma: The Segregated Match

In his new book, The Complacent Class, Tyler Cowen re-emphasizes the role of economists in perpetuating pessimism. By connecting a slew of dismal trends backed by hard (and shaky) data, he offers a rationale behind the low levels of productivity, decreased economic mobility and low levels of economic growth. He categorizes the factors that make us seemingly FKD.
Continue reading “Dilemma: The Segregated Match”

Financial Capital: Moving Up The Ladder In The Modern Economy

Though it doesn’t paint the whole picture, financial capital represents a whole lot of the influence behind economic mobility. The last, and most obvious, installment in our analysis of economic capital’s effect on realizing the American Dream explores financial capital.

Continue reading “Financial Capital: Moving Up The Ladder In The Modern Economy”

Our Parents And Grandparents Are Sharing The Struggle With Student Loans

The student loan debt crisis is not exclusive to Gen Y. A new report claims that of the student loans taken out by folks over the age of 60, 40 percent of them are in default. This will turn out to have some serious implications for not only their well-being but for Gen Y’s ability to become economically mobile in the future. Continue reading “Our Parents And Grandparents Are Sharing The Struggle With Student Loans”