Introduction THE CRISIS OF THE LIBERAL ORDER
Note:INTRO@@@@@@@@@@
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Practical men, who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist. —JOHN MAYNARD KEYNES,
Note:MOTTO
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The Berlin Wall fell when one of us was just starting preschool
Note:IL PUNTO DI PARTANZA
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Leading thinkers declared “the end of history.”
Note:I GRANDI PROBLEMI SOCIALI SEMBRAVANO RISOLTI
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global intellectual consensus,
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economics, more than any other field, took on the mantle of leadership
Note:LA LOCOMOTIVA
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as mainstream voices of reason,
Note:L ECONOMIA
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being highly mathematical and quantitative, appeared to be ideologically neutral.
Note:ILLUSIONE
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the field marginalized those on the radical left (Marxists) and right (the so-called Austrian school).
Note:GLI ESTREMI
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justifying existing market institutions
Note:TUTTO IL GRAN LAVORO DEGLI ECONOMISTI
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moderate reforms
Note:AL MASSIMO
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If markets “failed,” the theory went, moderate regulation, based on cost-benefit analysis,
Note:ESEMPIO
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inequality were largely ignored.
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a social safety net ensured that the worst
Note:RETE
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The financial crisis of 2008
Note:UNA PRIMA ROTTURA
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it seemed to be no different from most recessions.
Note:DAPPRIMA
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a great deal of the economic progress that had taken place before the recession was illusory
Note:MA POI CI SI RESE CONTO
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Ballooning inequality, stagnating living standards, and rising economic insecurity
Note:PANORAMA
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Occupy Wall Street
Note:REAZIONE
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Tea Party movements
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public lost faith in the mainstream policy analysis
Note:IL DISTACCO
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public opinion polarized.
Note:ESITO
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controversies over cultural issues, especially immigration, anger at the elites
Note:FENOMENI
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Xenophobia and populism
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ideas have not kept up with the crisis.
Note:PURTROPPO
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no alternative has presented
Note:SOLO CAPITALISMO
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authoritarianism is hardly an appealing substitute.
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DI FATTO
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international governance institutions have become favorite scapegoats,
Note:I CAPRI
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the mainstream technocratic approach of the past
Note:TUTRI RESTANO LÌ
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including Adam Smith, the Marquis de Condorcet, Jeremy Bentham, John Stuart Mill, Henry George, Léon Walras, and Beatrice Webb.
Note:TORNARE AI RADICALI
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economic and political system they had inherited from the eighteenth century could not keep up with changes
Note:UNA SOTUAZIONE SIMILE ALLA NS
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Entrenched privilege blocked efforts to promote equality,
Note:IL GUAIO
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Their vision and reforms combined the libertarian aspirations of today’s right with the egalitarian goals of today’s left
Note:COSA HANNO CONIUGATO
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Inequality
Note:Ttttttttttttttt
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rising inequality within wealthy countries.
Note:IL NS PROB N 1
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the top 1%
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Is this growth in inequality simply the price of a dynamic economy,
Note:LA TESI NEOLIBERISTA
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growing inequality reflects the diverging skills
Note:PER MOLTI ECONOMISTI
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rising inequality does not reflect only diverging wages, but the shift of national income away from wages entirely.
Note:UN PROBLEMA NEL PROBLEMA
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“labor share.”
Note:SCENDE
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10% drop
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reward to saving is itself falling
Note:LA XDITA NN VA NEI RISPARMI
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increasing fraction of national income is being absorbed by market power—what we later call the “monopoly problem.”
Note:UN PROBL DI MONOPOLI... IMO DIFESI PIU' CHE ALTRO DA UNA COLLUSIONE CON LA POLITICA E LA CONSEGUENTE IPER REGOLAMENTAZIONE CHE CARATTERIZZA E PARALIZZA LE NOSTRE SOCIETA' CONSEGNANDOLE ALLA BUROCRAZIA
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a rich-get-richer dynamic.
Note:LA DINAMICA
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(the excess price or “markup” firms charge over cost)
Note:ALTRO PARAMETRO
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The trajectory of inequality across countries is a different story.
Note:BEN DIVERSO
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From 1820 to 1970, inequality between countries grew nearly tenfold; in contrast, inequality within countries declined by about a fifth.
Note:UN MOVIMENTO INVERSO
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inequality has fallen by about a fifth and domestic inequality within wealthy countries has risen.
Note:DOPO
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international inequality began to fall just as globalization began
Note:GRAZIE ALLA GLOBALIZZAZIONE
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Stagnation
Note:Ttttttttttttttt
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when “stagflation” (simultaneously high inflation and unemployment) undermined the then-accepted Keynesian argument
Note:ALTRO SHIFT...LA MORTE DI KEYNES
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The neoliberal and “supply-side” ideas that grew up
Note:NASCITA DEL NEOLIBERISMO
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Even if capitalism might cause some inequality, wealth would eventually “trickle down” to ordinary workers.
Note:LA TEORIA
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productivity growth has dramatically fallen
Note:NEANCHE LA CRESCITA...FIGURIAMOCI LO SGOCCIOLAMENTO
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This phenomenon has been less dramatic in the United States than in other wealthy countries.
Note:SOPRATTUTTO L EUROPA
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exceptions of the 1995–2004
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France and Japan, productivity growth fell
Note:CASI MACROSCOPICI
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widespread unemployment
Note:SPECIE IN EUROPA
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In most countries in Europe, unemployment has risen from rates of 4% to 6% midcentury to a persistent 10% or higher rate.
Note:EU E IL LAVORO
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reallocating capital and employment from less productive entities to more productive
Note:IL PASSAGGIO DA FARE
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the trends of rising inequality and stagnating growth
Note:TREND
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no longer living much better than their parents did.
Note:PADRI E FIGLI
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These trends pose the same problem for the neoliberal economic consensus that stagflation posed for the Keynesian consensus before it.
Note:ANALOGIA
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Call it stagnequality
Note:NEOLOGISMO
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Conflict
Note:Tttttttt
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it would be natural to expect a leftist populist backlash to stagnequality and a subsequent move to redistribute income.
Note:COSA CI SI ATTENDE
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Bernie Sanders
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Jeremy Corbyn
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history has shown that fascist or ultranationalist movements have come to power when the social fabric is fraying.
Note:D ALTRA PARTE
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Donald Trump is the first true populist president,
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trade barriers and immigration restrictions
Note:COSA SI CHIEDE
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appeal to class identity or distributive justice,
Note:ANCORA
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ethnonationalist creed of “blood and soil.”
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high levels of political polarization,
Note:EFFETTO
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The movements offer little in terms of realistic policy proposals
Note:MOVIMENTI PROTESTATARI
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they are protesting against the failures of existing political systems
Note:Cccccccc
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White, male, working-class earnings are stagnating in wealthy countries, while women, ethnic and racial minorities, and people in developing nations are enjoying relative advances.
Note:IL CONFLITTO
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political conflicts relate to the difficulty of democratically resolving issues
Note:LA DEMO NN BASTA
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Attempts to resolve these issues often end up in the hands of the judicial system. But judges are members of the elite
Note:GIUSTIZIA
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Their decisions often inflame rather than settle cultural disputes.
Note:GIUDICI FUORI DAL MONDO
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World Trade Organization and the European Union,
Note:ALTRE ORG CHE OCHE INFIAMMANO IL CONFLITTO ANZICHÈ RISOLVERLO
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The Markets and Their Discontents
Note:Ttttttttttttttt
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Their goals were to free markets from the control of feudalistic monopolists
Note:FILOSOFI RADICALI
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In the past, most individuals lived their lives within small, tight-knit communities where moral impulses, social shame, gossip, and empathy provided the primary incentives
Note:IL COMUNITARISMO PRE RADICALE
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sociologists sometimes call these communities “moral economies.”
Note:MORALITÀ...LA STERZATA DI SMITH E DEL SUO MACELLAIO
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Religion served to constrain such deviance at every turn.
Note:CENTRALITÀ DELLA RELIGIONE
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who amassed wealth from “commerce” were regarded with suspicion
Note:IL NEMICO
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An idealized portrait of such a society is Frank Capra’s 1946 classic film It’s a Wonderful Life.
Note:LUI È UN BANCHIERE ATTENTO ALLA COMUNITÀ E DALLA C VENE AIUTATO QUANDO FALLISCE
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a greedy, amoral competitor, Mr. Potter,
Note:LO SMITHIANO
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Smith’s critics have emphasized the real advantages of moral economies over markets.
Note:I COMUNITARISTI
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if a homeowner beautifies her house, she raises the value of her neighbor’s property, but the market rewards her only for the increase in her own home’s
Note:ESTERNALITÀ
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Despite these advantages, moral economies break down as the scope and scale of trade expand.
Note:LA SCALA
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mass production and global supply chains
Note:TROPPI VANTAGGI
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But if millions of people worldwide consume a product, it is impractical for them to coordinate a boycott
Note:PURO MERCATO
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Unable to account for the needs of those far away, they may become hostile to outsiders and intolerant of internal diversity,
Note:LA TRISTE FINE DELL ECONOMIA MORALE
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From The Scarlet Letter to Sister Carrie,
Note:LA BRUTTA FINE DELL ECONOMIA MORALE
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Margaret Atwood’s novel The Handmaid’s Tale
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communities, such as the Amish,
Note:ANCORA OGGI
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Marxists believed that state ownership of capital and control of industry were the only paths out of “wage slavery,”25 but central planning ultimately proved a failure. The Soviet Union
Note:L ALTERNATIVA A SINISTRA
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All told, the market faces no serious contender
Note:CONCLUSIONE
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The Rules of a True Market
Note:Tttttttttttt
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how markets should be organized.
Note:TtttttttttVISTO CHE NN HA RIVALI
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government needs only to “get out of the way.”
Note:PER LA DESTRA...E CON RAGIONE
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Yet any sophisticated, large-scale market depends on well-designed and well-enforced rules
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MA ANCHE IL MERCATO HA LE SUE REGOLE NON TUTTI I MERCATI SONO UGUALI
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freedom, competition, and openness.
Note:TTTTTTTTT TRE PRINCIPI CARDINE
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In a free market, individuals may purchase any goods they want as long as they pay a price sufficient
Note:LIBERO
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to prevent harm to others.”
Note:MILL...L UNICO MODO DI ESERCITARE CORRETTAMENTE IL POTERE
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rationing system
Note:UN MODO DI LIMITARE LA LIBERTÀ
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rationing resulted in bland uniformity
Note:W LA DIVERSITÀ
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In a competitive market, individuals must take as a given the prices they pay and get paid.
Note:SECONDO FATTORE
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no ability to manipulate prices
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struggle against monopolies
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For instance, in most places in the United States there is only one cable service available,
Note:PREZZI SALATI E BASSA QUALITÀ
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In an open market, all people, regardless of nationality, gender identity, color, or creed, are allowed to participate
Note:TERZO FATTORE
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the contributions of women
Note:UN EFFETTO DEL APERTURA
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not only a productive force, but also a profoundly egalitarian one.
Note:EFFETTI EXTRAEC
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“people of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy
Note:NEANCHE SMITH CREDEVA NELLA NATURALEZZA DEI MERCATI
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The central theme of the Philosophical Radicals was the struggle against a society dominated by the aristocracy.
Note:TTT IL NEMICO
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industrial capitalism showed a tendency toward new forms of monopoly
Note:PURTROPPO
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Antitrust policies and legal support for labor unions restrained the power of monopolies.
Note:LE VECCHIE SOLUZIONI
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Social insurance, progressive taxation, and free compulsory education enhanced competition by expanding access to opportunity.
Note:ALTRE MUSURE
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checks and balances,
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fundamental rights,
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judicial power to protect minority
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Following World War II, these reforms helped usher in an unprecedented period of economic growth,
Note:HANNO FUNZIONATO
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Economists came to believe that differences in individuals’ natural talents are the main source of inequality.
Note:OGGI DOMINA UNA CREDENZA CHE IMPEDISCE DI PROSEGUIRE L OPERA
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they must be limited lest they come at a cost to the size of the total economic pie.
Note:I LIMITI AL WELFARE
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This tradeoff fragmented the liberal coalition.
Note:ROTTURA...LIBERAL E LIBERTARI
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liberals
Note:Ttttttttt
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social democrats in Europe.
Note:ALTROVE NOTI COME...
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They prioritized equality
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During the 1960s and 1970s they won victories in the US Civil Rights
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UNA LORO VITTORIA
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liberals who prioritized free markets
Note:DESTRA MODERNA
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known as libertarians in the United States
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neoliberals in Europe.
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fighting government intervention,
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Their great victories came during the 1980s and 1990s, as countries sold off nationalized industries, deregulated the economy, and opened to foreign trade.
Note:LA VITTORIA
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With economic stagnation and rising inequality within countries
Note:OGGI IL PROB TORNA
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we believe that it is the result of a failure of ideas.
Note:TESI
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Private property inherently conferred market power,
Note:PRIMO PROB
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One-person-one-vote gave majorities the power to tyrannize minorities.
Note:SECONDO PROB
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became the squabbling technocrats of today.
Note:LA BRUTTA FINE DEI RADICALI
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Perfect Competition: Opium of the Elites
Note:Tttttttttttt
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economists’ increasing assumption that markets are “perfectly competitive,
Note:IL GUAIO
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Yet few markets in the real world work this way,
Note:JOAN ROBINSON
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Consider the process of buying a home.
Note:CASA
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in large cities
Note:QUI SI PUÒ PARLARE DI COMPETIZIONE
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Houses differ in location, amenities, views, light, and so forth.
Note:DIVERSITÀ TRA I BENI
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nothing like grain
Note:LA TIPICA MERCE DEI CLASSICI
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This means that buyers and sellers both have significant bargaining power.
Note:POTERE DI MERCATO
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Such strategic behavior often causes trades to fail.
Note:STRATEGIA...ASIMMETRIA
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land development schemes,
Note:AL MASSIMO GRADO
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The same holds true for labor markets, since all workers have different talents and dispositions and live in different places.
Note:LAVORO...IDEM
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We claim that market power is omnipresent and intrinsic to the current institutional
Note:ASSUNTO
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many areas of human life are lacking in markets that could vastly improve people’s well-being.
Note:ALTRO PROBLEMA
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goods and services usually provided by governments, like policing, public parks, roads, social insurance,
Note:ESEMPI
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a market for political influence.
Note:QUEL CHE OCCORRE
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If money were allowed to purchase political influence,
Note:OBIEZIONE
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The history of political corruption
Note:UN CLASSICO
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Once the majority rules, what happens to those in the minority? They may care deeply about an issue—say the right of transgender people to use a restroom, or preventing abortions
Note:MA LA MAGGIORANZA HA I SUOI INCONVENIENTI
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One-person-one-vote stops compromise among groups
Note:VALORIZZARE LE MINORANZE
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Severe restrictions on migration halt cross-border trade in labor,
Note:ALTRO PROB...ALTRO MERCATO ASSENTE
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A much-needed market in data simply does not exist.
Note:ALTRO PROB...ORA INCASANO SOLO GOOG E FACE
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Imagining Radical Markets
Note:Ttttttttttt CAPITOLI
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converting the market in private property into a kind of market in “uses.”
Note:CAP 1
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Chapter 2 describes an efficient market for “public goods” shared by many people and normally created by governments.
Note:CH2
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market in migrant labor;
Note:3
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limit on financial holdings
Note:4
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how market forces can be extended to the digital economy.
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