The cost of the loan forgiveness programs exploded, in part, because policymakers did not correctly estimate the number of students who would take advantage of such programs, according to higher education scholar Jason Delisle. Now there’s an emerging consensus that some programs should be reined in, but ideas on how much and in what ways vary by party affiliation. Senate Democrats just introduced a college affordability bill that focuses on creating “debt-free” college plans by giving federal matching funds to states that, in turn, would figure out ways to help students pay for school. In the past, President Barack Obama acknowledged the need to require borrowers to repay more of their debts and made some proposals for modifying the programs’ rules. The GOP goes much further in its suggestions: A new proposal from House Republicans would eliminate some loan-forgiveness programs entirely.
On the importance of measuring financial inclusion.
The latest Global Findex report informs us that 515 million individuals opened a “bank account” at a traditional financial institution or through a mobile money provider between 2014 and 2017. As a result, 69% of adults worldwide now have bank accounts, up from 62% in 2014 and 51% in 2011. This rise in financial inclusion is welcome news, not least because, in the event of a downward income shock, a household’s consumption will fall much less if it is linked to the formal financial sector.
The largest companies of 1956 were large by all measures — sales, market capitalisation, employment, and operating assets. No longer. Walmart and Hon Hai (better known as Foxconn) are today’s largest private sector employers, along with businesses like Compass, which might be regarded as global gangmasters.
Apple’s market capitalisation today exceeds $800bn, and Alphabet is not far behind. For both these companies, operating assets account for about $30bn of that value. Modern businesses like these employ very little capital, and such assets as they do use mostly need not be owned by the company that operates from them.
As a source of capital for business, equity markets no longer register on the radar screen.
John Kay is a person with very clear views. His recommendations definitely carry weight.
Let’s get into the books you’ve chosen. As it’s the one you’ve traditionally recommended, let’s start with Burton Malkiel’s A Random Walk Down Wall Street (1973).
Yes, that’s the book I recommend when asked by people who are highly intelligent, have a little bit of money, but feel at sea. I’m not very impressed by financial advisers—for pretty good reasons. But there is very little you can read on investment that’s not insulting to the intelligence. As you know, there are lots of ‘how to become rich by day trading’ books around, but intelligent people know what to do with those kinds of books: namely not to open them.
Moreover, the word “factory” itself was connected in its etymology to the slave trade. In the early modern era, distant commercial outposts were known as “factories,” after the “factor,” the presiding merchant. The most notorious “factories” were the castles and prisons operated by Europeans on the coast of West Africa, where the African slave trade met the transatlantic slave trade, and whence many millions of enslaved people began the Middle Passage to the Americas. In Behemoth: A History of the Factory and the Making of the Modern World, Joshua B. Freeman doesn’t dwell on the bleak fantasies of slaveholders or the connections between early-modern colonial slavery and the rise of industry.
Trading in derivatives has led to great losses for some speculators some of who ended their lives. This has been happening since 1848, ever since the birth of modern financial derivatives.
The unlucky Belloy was not the only early futures trader whose life ended in an unpleasant fashion. The ruined trader Nelson Van Kirk used his last few dollars to buy a cheap revolver that had to be pried from the fingers of his corpse. The trader T.C. Chisolm lost everything in a failed wheat corner, save an elevator full of corn in New York, which, it turned out, was rotten. He took a ferry to Brooklyn (no doubt noticing a magnificent new bridge still under construction), then found a remote slip where he filled his pockets with stones and plunged into the East River to drown.
Do we have more leisure compared to our ancestors? Are we happier at our workplaces compared to hunter-gatherers?
The most compelling thing about this research was that it suggested that “economic problem” was not, as Keyne’s believed “the primary problem of the human race from the beginnings of time”. For where the economic problem holds that we have unlimited wants and limited means, Ju/’hoansi hunter-gatherers had few wants that were easily satisfied. It was for this reason that Marshall Sahlins, arguably the most influential American social anthropologist of the 20th century, redubbed hunter-gatherers “the original affluent society”.
Unsurprisingly, this simple idea briefly captured the popular imagination: “Imagine a society in which the work week seldom exceeds 19 hours, material wealth is considered a burden, and no one is much richer than anyone else”, gushed Time Magazine in an editorial about the Bushmen in November 1969, “The people are comfortable, peaceable, happy and secure…This Elysian community actually exists.”