The Economics of Anger: How We Got a Rigged System (w/ Mark Blyth and Eric Lonergan)
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- čas přidán 2. 07. 2024
- The neoliberal model of free trade, open borders, and liberalized capital flows is under assault. Traditional economic models with rational agents and efficient markets don't accord with reality, and people are starting to notice. Even recent advances in behavioral economics have failed to capture this disconnect. Mark Blyth, William R. Rhodes Professor of International Economics at Brown University, and Eric Lonergan, macro hedge fund manager at M&G Investments, explore and seek to resolve these conflicts in their new book, "Angrynomics." Blyth and Lonergan examine how the outsourcing of economic management to grey-suited bureaucrats is fomenting a populist backlash that is redrawing political battle lines and molding the destiny of different asset classes in ways few fully grasp. They analyze the recent largesse of central banks as a sort of asymmetric put-option which rewards those who hold assets and punishes those who don't. Blyth and Lonergan also explore potential solutions, which include dual interest rates, citizens' wealth fund, and - yes - even helicopter money. Filmed on July 8, 2020.
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The Economics of Anger: How We Got a Rigged System (w/ Mark Blyth and Eric Lonergan)
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So happy to see Mark on Real Vision. =)
the precariat must unite against the oligarchs
@Jean Jourdain because we have no choice. I vote third party but we have a two party oligarchy
What career advice do you have for someone who:
- graduated in economics from a target university
- values a great work-life balance
- seeks to manage own fund and/or business in the long-term (not endowed with the required capital)
- secured a rotational finance graduate program in a f500 (m&a, trading, controlling, etc.)
- Proceed with the f500 finance graduate program? Stay in an f500 or switch to IB?
- get a CFA/ CAIA?
- What roles allow to generate the required capital the fastest, while still maintaining a work load below 60h/week?
-- IB?
-- hedge fund?
-- asset management?
-- energy/ commodities trading?
I know this is pretty random, but I just try my luck :-) any oponion is appreciated.
Why is there a subliminal frame of a puppet in the intro? Are you trying to tell us something, RealVision?
To anyone interested, watch the first 2 seconds of this video @.25x speed.
I'd love to hear a conversation between you guys and Richard Werner
I was thinking of it from the beginning of the video)))
How can we make this happen?
Our economic systems must account for the humanity of its participants and the thermodynamic impacts of activity. We must manage the economics of heat waste, green house gases, human stress. Net losers like fracking, slavery, and modern globalized-consumption capitalism never made sense, except from a profiteering perspective. It's embarrassing and shameful we don't already to this.
31:43 - That's the challenge we set ourselves
31:56 - 32:24 -
32:49 - The other thing that's unusual about the book is that its a series of parables
34:20 - FOUR BIG IDEAS LISTED AT THE BACK OF THE BOOK
Kari Polanyi Levitt (born June 14, 1923 in Vienna, Austria) is a Canadian economist, currently (4 AUG 2020) Emerita Professor of Economics at McGill University, Montreal. She is known for her work on economic development & economic sovereignty, & in particular for her 1970 book Silent Surrender: The Multinational Corporation in Canada. She is also the literary executor of her father, the economic historian Karl Polanyi. -- Wikipedia
I KNEW there was something wrong with Mark Blyth... WHAT NORMAL PERSON CAN POSSIBLY HATE RANCH DRESSING??
Best video ever! Thank you much. Hope. I am greatful.
Interesting conversation, the problem is you can't distribute assets to the rank and file population BECAUSE the vast majority of the population don't know what an asset is or what it's value is or how to even put those assets to work. Let's say you hand the average person 100 assets or 100 units of assets, all most people see is the fiat currency value and will look to sell it for a quick return because they have no idea how to allow the asset to work and grow.
Not really. A sovereign wealth fund if structured as a Credit Union, could work. The capital invested would have to be ringfenced, and with a return of 4% to 8% pa, it could generate a small annual payment out of profits in cash, but retaining the majority for reinvestment. Withdrawals from the fund could be limited to certain purposes, and points in time across the account holders lifespan. And if the banks would not mind, balances could be used to provide collateral for loans or, short-term cheap loans be made from the fund to account holders. Norway's Sovereign Wealth Fund is doing just fine and dandy, funded by its oil revenues.
@@BigHenFor A sovereign wealth fund is nothing more then a large mutual fund that takes a portion of cash from whatever assets the country is selling and reinvests it in a rainy day fund and is hopefully managed well by the government entity that is in control.
The withdrawals you are are talking about would have to be by definition in cash/fiat to individuals and would be tiny in comparison to the needs of the average citizen. Sure in Norway they can handle a small cash payout, or even in places like Alaska they pay the citizens an annual check from the sales of oil. But first off the idea that there is a guaranteed 4-8% return IS a fallacy. On top of that the sovereign wealth fund would have to be able to adjust according to market conditions ie. if a portion of the fund failed. On the scale of Norway (5.5 million people) you might be able to make it work...on the scale of the US or China, no way. There are simply not enough assets to make it work for a very large population.
Still fascinating and relevant 5 months later....
24:10 -
24:27 - Rather than there being a reboot, as there was in the 1930s, rather than being a hardware modern reboot, as there was in the 1870s, what did we do?
24:34 - We just basically asked the central banks to modify the mandate to do the exact opposite of what they've been doing and manipulate prices as much as possible in order to save asset values.
05:00 - Private Anger & Public Anger
06:42 - Private associated with shame & Public associated with Pride
08:22 - Tribal Identity Regulators
09:05 -
09:19 - The Anger of Angels & The Anger of Devils
09:39 - How Economic Uncertainty Foments Populist Backlash
09:58 - Culinary war crime
12:00 - The two faces of Public Anger gave us a great way of synthesizing what's happening in political economy
Ha Ha! Another 'Dialogue Guy' was Galileo. So, it's house-arrest for you two!
It sounds like the ecb is moving towards or you're suggesting it move towards a type of boj window policy. Great video!
Excellent
Love IT
The original and most fundamental manifestation of anger is that which is directed at our own personal shortcomings.
All else results in poor outcomes and negative results. One evident reason is that it can over rule rationality and the higher self denying emotions.
Now there are 2 people speaking like Mark Blyth. I am confused!
Stock Broken is the non elite answer to world and finance. I worked the as a laborer, trudged my way into finance and built my own company.
Feel free to stop by. Thanks real vision for all that you do.
20:42 - 21:17 - Hardware 1.0 & Software 1.0 21:56 - Everybody runs FULL EMPLOYMENT for 30 years 21:59 -
22:25 - 23:21 -
17:00 I think what you mean is "skin in the game" by nassim taleb
16:46 - A perspective on inequality that comes from dialog
17:19 - People hate that
17:36 -
18:54 - The long arc of political economy 19:04 - 19:53 -
Inflation is low so long as we dont collectively (all countries combined) outpace our mining expansion of oil. During the housing bubble we outpaced our capacity to produce more oil. The oil price rose and caused the fed to crash the economy until oil production could catch up to demand (still took until 2014 but finally was resolved due to fracking ).
We bought Lloyds when it went tits up. But the gov't still sold it off. Need to stop that happening.
Did I miss something or are they saying they both advocated the low rates expansionist monetary policy that created the current stagnant real wages and the debt bubble crisis and now are advocating accelerating the same expansionist monetary policy as a solution?
Why do interest rates exist at all, unless they just happen to represent the tithe of extortionists who created monetary systems, of "modernised" people management.
(I understand "Robot" means Worker, and "Program" was around long before Digital Devices etc)
What wood in which trees are we deliberately ignoring the non-sense of, today? Bitcoin or Dollars?
4.0 is MMT
4.0 is capitalism with Chinese socialist characteristics.
Allow consumers to put cash in a social security points incurring debit card. The more you spend using that card, the more SS points you accrue meaning higher SS payout after you retire. So no need to fear retirement.
12:39 - economics absent emotion 13:06 - 13:19 - 13:42 -
13:46 - book Deaths of Despair and the Future of Capitalism17 MAR 2020 by Anne Case & Angus Deaton,, a groundbreaking account of how the flaws in capitalism are fatal for America's working class
14:11 - Stressors 14:18 - 1st : Automation
The last minute corollary is the core issue to be able to meet the demands of reality - dreadfully poor leadership across almost all key states. That's frightening as the challenges are among the most difficult in history. Actually, after the cold war, the quality downgrade in Western political establishment is so consistent... One wonders if this is in fact is not designed...
28:47 - Political economist Mark Herman Schwartz : IPR/Franchise Economy
30:08 - To summarize
30:13 - We need to respond to the moral outrage
30:18 - POPULISM AS A POLITICAL STRATEGY
31:04 - A huge failure of ideas . . . THREE THINGS REALLY, REALLY CONCERN PEOPLE
1. Sustainable Economy [ that we produce what we need w/o destroying life on earth ]
2. Wealth Inequality
3. Recessions are BAD , they cause huge human suffering
I'm having a hard time seeing the deference between this solution & what Japan has already done?
Uhhhh this time it's different
They have a tilted age demographic and a huge savings strategy amongst the people. Is how I've understood it.
Very different because they have made the mistake of putting all the money straight into the pockets people who have most of the assets already, and that isn't the savers. It has left households struggling in its wake. This is not what Blyth and Loneregan are proposing. They are proposing creating sovereign wealth funds to bolster household incomes, and boosting capital investment using dual interest rates.
@@BigHenFor stocks were already over priced before Covid19, this would create a huge asset bubble in whatever stocks end up in fund & Americas wealth would be tied to this Ponzi. I guess it better than bailouts, but I'd prefer gov stay out of price discovery.
@@SgtHodl You don't understand the concept of either Sovereign Wealth Funds or Dual Interest Rates. We already have the latter, or household could freely borrow at 0%,and they can't. The number of countries setting up Sovereign Wealth Funds is increasing, and these countries are giving their citizens at better quality of life because of it. You need to do some research into both then comment.
40:38 - DUAL INTEREST RATES
45:18 - HELICOPTER MONEY & DATA DIVIDENDS 46:57 -
48:38 - POLITICIANS' LACK OF COURAGE
It's been created!!!
Look into Ampleforth solves economic theory problems and can also provide all of your solutions for 4.0
26:40 - ROFIT INEQUALITY & PRICE STABILITY
Maybe we should experiment some of these ideas before creating a government owned 2 trillion dollar investment fund funded with debt.
You have that already as Quantitative Easing which is misdirected, as it is just inflating asset prices, and not funding concrete investment in growth or innovation.
Great book!
Minute 38, IT seems like these guys suggest the government buys high and sell low...with the goal of never getting to the low...it's a bubble it will always go back to low and governments will take the brunt of the loss. Private has to take the brunt of the loss since they are the ones making the wins. No money without risk right? Government is there only to make sure private doesn't slip too much below the logic low due to fear.
*Politically-closed borders are actually Necessary for competition* !!!
...in providing national- and even nationalist- platforms for cross-border competition.
Just have a look at Japan, South-korea and China, and see how those
Where is congress?
10:00 What we [humans] really hate is uncertainty [ doubt which gives rise to fear ]
10:27 -
11:01 - 11:16 - 11:21 -
11:53 -
There is some weird editing and repetition going on in this video.
"You can't just"
I heard.. ŕrrrrrrr... lol.. but seriously, excellent video
15:33 - DEMOGRAPHICS & INEQUALITY
16:22 - Thought Experiment : Turn Representative Agent into 60 yr-old white person
_________ What would happen to consumption ?
_________ What would happen to investment ?
A great book on the anger, Dealing with anger, self-help solutions for men. by Frank Donovan. could be for women to.
Fine Scottish accent!
I saved some time and just skipped all Eric Lonergan's dialogues. I suggest you do the same.....
Not really. The book isnt for people who know it all already. It's an attempt to educate and inform those who understand how it's hurting them, but don't know how it can be resolved. It reorient the economic narrative back to the societal impacts of how the economy is managed, and it provides some blue sky thinking for the politicians who are not versed in political economy.
You hate ranch?! How dare you
24:43 - After the G F C in 2008 we did not get Capitalism 4.0
When they can blabber on about all kinds fancy ideas based on economy not having inflation while people experience inflation everyday, you know their ideas are disconnected from reality.
Great ideas if everything was equal in a theoretical world pov. However we live in a world where we clearly have rulers that do everything to their benefit. Do you actually think we got to this point accidentally with well intentioned people just continually making disastrous mistakes? Lmao. No wonder economists are always wrong and nobody listens to them anymore. You guys just can't seem to understand what power and control is, and that it actually exists. It is never given, always taken.
Seems like a rational, intelligent, and effective plan. Hence, in these systemically psychopathic times, at best, it seems unlikely to be implemented.
I wonder if these guys know they are Yang Gang
They aren't though unless Yang has refined his idea recently. Yang was advocating UBI ( in his model a monthly check which is based on opting out of social security and other social safety nets, therefore, defunding them) which both of these guys have said on record they don't support. Except, more recently, in short term cases as global pandemics. What these two propose is giving people the dividends where all the wealth is generated (from our labor using big tech data, having our privacy sold, etc. which creates the profits for these firms for one example), using these funds for public projects and redistributing OWNERSHIP. Totally different than UBI.
This idea isn't new or even theirs. Yannis Varoufakis has been proposing pretty much the exact same thing for a few years and is also against UBI as a long term fix. All sounds fine and dandy but there is absolutely nothing on the horizon politically that is trying or willing to get us to a place like they are talking about.
No more socialism for the rich! No more socialism, period!
Intellectual lightweights.
I'm not impressed by these guys. Like a great president once said, "Sounds like fuzzy math to me."
Exactly.
Title sounded great, and then all I got was more of the same empty rhetoric and safe “solutions” that got me angry in the first place.
Literally have not seen a more misinformed or miscalculated video on economics ever
Brown University? Was he AOC’s mentor? 😂
Unfortunately your entire framework is incorrect. What we have been experiencing for the past 200 years is not various iterations of capitalism, but rather the encroachment on capitalism by various iterations of centralization. The corruption of centralized banking, federal and state regulatory bodies, and political leaders has had various distorting effects on the market that inevitably end in economic busts. Applying bandages on an already convoluted and monolithic monetary system will fix nothing. The solution must involve the decentralization of the monetary system. Currently the only proposal in this direction is distributed blockchain technology.
A pair of economists who don't understand what money is. The discussion on anger was interesting, but their solutions betray their ignorance of economics.