The Mainstream Media Will Rise Again

The news media was flattened on November 8th but its recovery has already started.

One of the striking features in all the commentary on Facebook about Donald Trump’s victory is the number of times that the words I, me and my appeared in member posts. For example, “I am proud”, “I am optimistic” or “I am fearful”, “I am worried” etc. The comments celebrating or lamenting the event were mostly about the way the writer felt about the event, not about the event itself. That looks like a subtle difference but it reveals a demarcating line between an introverted reaction vs. an extroverted one.

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None of this is too surprising because even in normal times, Facebook’s format and primary raison d’être are to enable people to talk about themselves and to update their friends on their comings and goings. On any given day outside of an election period, the blue bannered webpage seems to be 80% introversion (photos and news of one’s own family, or one’s own meal, or one’s own travels, challenges and accomplishments) and 20% extroversion (posts of articles about third parties). Continue reading

Posted in 2016 Candidates, Economy, Media, Politics, Society, United States, US Congress, US Economy | Leave a comment

India’s Disruptive Gamble

by Ravi Srinivasan

(Ravi discussed this post at the BreakingBank$ podcast. His segment starts at 20:10.)

Modi’s demonetization was the other November 8th global earthquake.

A thorough historical record will show that not one but two man-made events shook the world on 8 November 2016. One was of course the election of Donald Trump to the US Presidency against the predictions of nearly all polls and pundits. The other was the Indian government’s shock and awe decision to withdraw from circulation all ₹500 ($7.3) and ₹1,000 ($14.6) rupee bank notes, equivalent to 85% of the country’s paper money. Although the first event dominated the headlines, the second will have a greater impact on over a billion people in India and elsewhere.

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500 rupee banknote, an endangered species since 8 November 2016.

This process known as demonetization is the latest in a series of initiatives by the Modi government to modernize Indian society and to increase financial inclusion and digitalization. Along the same lines in the past two years, other government efforts have included the ambitious and unprecedented Aadhaar national identification system started in 2012, the Aadhaar-based remittance system offered by the National Payments Corporation of India in 2013, and the Jan Dhan Yojana drive to bring financial services to lower-income segments of society. Some private players such as Paytm, Citrus Pay, Mobikwik and Freecharge have also moved in lockstep with public initiatives. Continue reading

Posted in Corruption, Economy, Emerging Markets, Guest Post, India, Innovation, Podcast, Society, Taxation, Technology | Leave a comment

Should Children Vote?

The rising cost of entitlements will test inter-generational harmony.img_6331

In the week following the Brexit vote, a recurrent complaint from the losing side was that a majority of older people voted to leave while a majority of younger people voted to remain. In the eyes of the complainers, this rendered the leave outcome less legitimate because younger people have more years of life ahead of them and therefore would allegedly suffer more than old people from a decision to leave the European Union. So much for the wisdom of old age knowing what is best. And so much for the principle of one person one vote, regardless of age, gender or race or whatever.

Instead of disenfranchising a group of older voters, we may consider allowing children some representation in our voting system. In the United States, the voting age is 18 which means that there are approximately 74 million US citizens aged under 18 who do not have the right to vote. That is a sizable 23% of the entire population who will all be adults by 2034 and who may not in the future take kindly to the long-duration budget commitments that were made in their absence. Continue reading

Posted in 2016 Candidates, Demography, Economy, Medicare, Pension Funds, Social Security, Society, United States, US Federal Budget | Leave a comment

Job Creation Under the Next President

(The Wall Street Journal published on November 2nd a synopsis of this post. It was also featured on January 20th in the French weekly L’Express.)

Retraining the employed and the unemployed for higher value-added skills is now more important than simply adding to the number of jobs.

Coal and steel magnate Wilbur Ross, a senior policy advisor to the Trump campaign, has just made in the pages of the Wall Street Journal an economic prediction that looks mathematically unattainable.

Writing with business Professor Peter Navarro of UC – Irvine, Mr. Ross forecast that policies enacted by a President Trump would lead to the creation of 25 million new jobs, ostensibly over an eight year period: Continue reading

Posted in 2016 Candidates, Demography, Economy, Immigration, Unemployment, United States, US Economy | Leave a comment

The US Census Digs Deeper

Where were your ancestors from?

Over 45 million Americans identify their dominant ancestry as German and 22,000 identify theirs as Marshallese, from the Marshall Islands in the Pacific. But in the US Census proposed new form for 2020, both of these groups get their own box to check for the first time. In the previous 2010 form (shown below), German-Americans would simply check ‘White’ and Marshallese-Americans would check ‘Other Pacific Islander’.

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In the 2020 form therefore, the US Census is seeking more disclosure and more granularity in the population data. This desire for more detail is not evenly spread however. The Marshallese, 0.01% of the US population, get as much real estate on the form as do German-Americans, 14% of the population. Germany being a country of many regions and Bundesländer, there would surely be more fragmentation in that 14% if anyone cared enough to know the percentage who claim for example Bavarian vs. Hessian ancestry. Continue reading

Posted in Demography, Economy, France, Race, United States, US Census | 1 Comment

On White Collar Prosecutions, with Jesse Eisinger

“The government no longer has the will and ability to prosecute top corporate executives across a wide variety of major industries.”______ Jesse Eisinger

photo_7887Jesse Eisinger is a senior reporter at ProPublica and a former reporter at the Wall Street Journal. He has studied, investigated and written extensively on the 2008 financial crisis, its causes and consequences. In 2011, he and a colleague won a Pulitzer Prize for National Reporting. In addition, he has won the 2015 Gerald Loeb Award for commentary.

Eisinger is the author of a forthcoming book on white collar prosecutions, to be published next year by Simon & Schuster. He speaks to populyst’s Sami J. Karam about the reasons why there have been few such prosecutions in recent years. Among these reasons, Eisinger identifies ‘elite affinity’, a revolving door between government and business, and a resource shift that took place at the FBI after 9/11. The conversation closes with Eisinger’s discussion of current anti-trust issues and some comments on the 2016 US presidential race.

TO HEAR THE PODCAST, CLICK HERE OR ON THE TIMELINE BELOW:

Posted in 2016 Candidates, Corruption, Cronyism, Economy, Podcast, Politics, Society, US Economy, Wall Street | Leave a comment

New York, Two States of Mind

Is New York City helping or holding back Upstate New York?

Towards the end of times, when all of mankind congregates in a final purgatory to draw the main lessons of this grand adventure called Life, there will be special attention paid to the centuries’ long efforts at harmonizing individual happiness with the needs of the collective. There will be seminars on leadership and war. There will be a thick chapter on the blessings and dangers of science. There will be a long section, co-written by poets and undertakers, on the success of freedom and the failure of tyranny. There will be wonder and consternation about religion and the nature of the universe. And there will be, inevitably, extensive reporting on economic ideology.

Here, a slim primer on laissez-faire will easily outshine ponderous encyclopedic tomes on communism, socialism and other failed -isms. Capitalism, the word and the theory, will be presented as a zealous and perhaps unnecessary attempt at creating a code for laissez-faire, something that occurs naturally. Cronyism will be understood as the corruption and distortion of laissez-faire and the phrase crony capitalism will be dismissed as an oxymoron and an unwarranted amalgamation. Continue reading

Posted in Demography, Dependency Ratio, Depopulation, Economy, Manhattan, New York, Taxation, Wall Street | Leave a comment

The Bridge from Laissez-Faire to Socialism

Cronyism remains unchecked in the world’s largest economy.

We might object to the phrase crony capitalism for two reasons:

First, because cronyism is in some ways the antithesis of capitalism. The freedom to compete and the freedom to fail that are central tenets of capitalism are severely compromised by cronyism when in the former case powerful politicians intervene to shield their friends in business and finance from competition, and in the latter intervene again to save them from bankruptcy or occasionally from criminal prosecution. Of course, these friends in turn are no disloyal slouches and they later show themselves to be supremely appreciative by underwriting, financially and otherwise, those same politicians who had all but guaranteed their continued dominance in normal times and their survival against bad odds in times of distress. Continue reading

Posted in 2016 Candidates, BRIC countries, Communism, Corruption, Cronyism, Economy, Emerging Markets, Society, United States, Wall Street | Leave a comment

2016 populyst Index™ First Quartile Demographic Scores

In constructing the populyst Index™, we use multiple sources to arrive at a rating for two of the index’s three pillars: Innovation & Productivity and Society & Governance. However our Demographics rating is developed by populyst. The score ranges from -2 to +2.

Countries of the West and of the former Soviet bloc all rate at or below zero. As is well publicized, Japan, Germany and Russia are some of the major countries in this group that have the most challenging demographics, defined as a declining population and rising dependency ratio. See also America Without Immigration and Would Reaganomics Work Today?

Countries of the Middle East and North Africa have more dynamic population growth. With some exceptions, their demographics are strong and their populations are young. But their economies in general seem ill prepared to absorb the large increase in people seeking employment. See also MENA Economies: Trouble Ahead. Continue reading

Posted in Africa, Demography, Dependency Ratio, Economy, Europe, Innovation, Middle East, populyst Index, Society, Sub-Saharan, United States | Leave a comment

Sweden Tops populyst Index™ Ranking

The idea of the populyst index™ is that there are three main vectors of wealth creation in any economy: Innovation & Productivity, Demographics & Health, and Society & Governance.

Innovation & Productivity encompasses education, infrastructure and the creation of intellectual property assets. Demographics & Health includes population growth, the age profile of the population and health metrics such as child mortality. Society & Governance relates to the economic context, the level of corruption, the amount of competition, the ease of doing business and  access to capital markets. Continue reading

Posted in Demography, Economy, Innovation, populyst Index, Society, Sweden | Leave a comment