Heterodox Principles E-Workshop
Dear Colleagues, The Global Development and Environment Institute (GDAE) and the Dept. of Economics at Bucknell University are sponsoring the 3rd in a series of semester long workshops critiquing neoclassical microeconomic principles texts and examining heterodox alternatives. We'd like to invite folks to join the internet discussion list associated with the workshop. Our goal is to share critiques, figure out what should go into an alternative heterodox text, and give feedback to several groups of heterodox economists preparing materials for principles courses. Folks interested in finding out more about the workshop or joining the list should contact Geoff Schneider (email: [EMAIL PROTECTED], phone: 570-577-3446). Background information about GDAE and other workshops can be found at the GDAE website http://ase.tufts.edu/gdae/ . Cheers, Geoff Schneider Geoffrey Schneider Assistant Professor of Economics Bucknell University Lewisburg, PA 17837 Phone: (570) 577-3446 Fax: (570) 577-3451 E-mail: [EMAIL PROTECTED] Web page: http://www.facstaff.bucknell.edu/gschnedr/
Re: [rlatham@independent.org: Query]
Michael Perelman wrote: I'm glad to see that you believe we "get it," but am curious by what standard you adjudge the Institute to be "right wing." Its advisory board looks pretty corporate libertarian http://independent.org/tii/tii_info/advisors.html, with the occasional quirk (John MacArthur of Harper's). Gotta watch your political taxonomy Michael! Doug
Re: [rlatham@independent.org: Query]
The epithet "right wing" is pretty meaningless without a clearly-defined specific context. How does the Independent Institute describe itself? libertarian? that's right-wing in terms of economics, but hardly right-wing in terms of social issues (abortion, homosexuality, etc.) BTW, what is the "Independent Institute" independent _of_? does it refuse corporate funding, for example, in order to prove independence of corporate interests? BTW2, does the fact that the Indep. Inst. is located on Swan Way have anything to do with Proust? At 08:52 PM 1/18/01 -0800, you wrote: - Forwarded message from Rob Latham [EMAIL PROTECTED] - Dear Prof. Perelman: I happened to stumble across your June 9, 2000 post of our event announcement at http://csf.colorado.edu/pen-l/2000II/msg02410.html but also saw the title "Right Wingers Get with it on the War on Drugs" and the comment "[f]rom the right wing Independent Institute." I'm glad to see that you believe we "get it," but am curious by what standard you adjudge the Institute to be "right wing." Cordially curious, -- Rob Latham Public Affairs Director The Independent Institute 100 Swan Way, Oakland, CA 94621-1428 510/632-1366 phone 510/568-6040 fax [EMAIL PROTECTED] www.independent.org Jim Devine [EMAIL PROTECTED] http://bellarmine.lmu.edu/~jdevine
BLS Daily Report
BLS DAILY REPORT, THURSDAY, JANUARY 18, 2001 RELEASED TODAY: UNION MEMBERS IN 2000 -- The share of wage and salary workers who are union members averaged 13.5 percent in 2000 as compared with 13.9 percent in 1999. The number of union members, 16.3 million, also fell slightly from its 1999 level. The union membership rate has fallen from 20.1 percent in 1983, the first year for which comparable data are available. Some highlights from the 2000 data are: Nearly 4 in 10 government workers were union members, compared with less than 1 in 10 private sector employees; protective service workers, a group that includes police officers and fire fighters, had the highest unionization rate -- 39.4 percent; and blacks were more likely than either whites or Hispanics to be union members. ... USUAL WEEKLY EARNINGS OF WAGE AND SALARY WORKERS; FOURTH QUARTER 2000 -- Median weekly earnings of the nation's 99.8 million full-time wage and salary workers were $585 in the fourth quarter of 2000. This was 3.0 percent higher than a year earlier, compared with a gain of 3.4 percent in the Consumer Price Index for All Urban Consumers. Data on usual earnings are collected as part of the Current Population Survey, a nationwide sample survey of households in which respondents are asked, among other things, how much each wage and salary worker usually earns. ... Prices paid for all urban consumers for goods and services rose 0.2 percent in December and were up a seasonally adjusted 3.4 percent for the year, the Bureau of Labor Statistics reports. Although the 3.4 percent rise in the CPI is the largest year-over-year increase since 1990, economists say most of the increase resulted from the 14.2 percent rise in energy prices during 2000. Excluding the volatile food and energy sectors, the CPI-U was up 0.1 percent for the month and 2.6 percent for the year. Economists say the "tame" inflation numbers may clear the way for the Federal Reserve Board's Federal Open Market Committee to lower interest rates by another 50 basis points to stimulate the economy. ... (Brett Ferguson in Daily Labor Report, page D-1). Average weekly earnings adjusted for inflation fell 0.4 percent in December as the number of hours worked declined for a second consecutive month, the Bureau of Labor Statistics reports. BLS says the average weekly hours of production or nonsupervisory workers fell 0.6 percent in December after declining 0.3 percent the previous month. Analysts attributed part of the decline to winter storms during the survey week, making the number of hours appear to decline more sharply than they actually did. ... (Daily Labor Report, page D-18). Slower economic growth in most parts of the country prompts businesses to look cautiously toward the future, but so far labor demand and related pay pressures remain strong, the Federal Reserve reports in its latest "beige book," or summary of economic activities. ... (Daily Labor Report, page D-27). Data released by the Federal Reserve show industrial production fell 0.6 percent in December, following 2 months of smaller declines as manufacturing output fell sharply. December's weakness was preceded by decreases of 0.3 percent in November and October. That meant output contracted at an annual rate of 1.1 percent in the fourth quarter, which the Fed said was the first negative reading since 1991, when the economy was in recession. ... (Daily Labor Report, page D-22). __Underscoring the recent weakness in the U.S. economy, the Federal Reserve reported that the nation's industrial production fell, the first quarterly drop since the beginning of 1991, when the economy was in a recession. ... The central bank also released the results of its latest survey of nationwide economic conditions that found that if a recession -- an outright decline in national economic activity -- is on the way, it hasn't yet arrived. ... "Price pressures for consumer goods were subdued, while prices for most manufactured goods were flat to down, despite higher input costs" such as for energy, the summary said. "Extensive discounting by retailers during the holiday shopping season helped constrain consumer prices in most districts." The findings on prices were confirmed in a Labor Department report that showed consumer prices increased 0.2 percent last month. That meant the CPI rose 3.4 percent last year, the biggest increase in a decade. ... Recently, however, the overall CPI has been rising less rapidly. In the final 3 months of last year, the CPI increased at a more moderate 2.1 percent pace. The core portion of the index rose at a 2 percent rate in the fourth quarter. This relatively low amount of inflationary pressure in the economy has left the door open for the Fed to cut rates in response to the sharp slowdown in economic growth. ... (John M. Berry in Washington Post, page E7). __A sharp drop in industrial output in December provided strong evidence of a slowing economy, while a
RE: Bankruptcy again
Michael -- They definitely are not cooking the books. You have to remember, they are giant public companies that do reportings with the SEC. Their books are scrutinized not simply by independent auditors, but by their bank lenders and Wall Street financial analysts. These are all extremely sophisticated people. (As an aside and off topic, one of the fundamental reasons for United States prosperity is the sophistication of the public reporting of books and records. Precisely because the books are so accessible and trustworthy, investors are willing to invest in the manner and extent that they do.) Regarding your first point, I'm not sure of the specific relevance. The entire purpose of corporate debt is to purchase equipment (or other investment assets) in the expectation that the invested capital will generate revenues in excess of the amount necessary to pay the interest payments on the debt. For the past nine months, the utilities paid billions of dollars more in expenses than they collected from consumers. As a result, they do not have current revenues to meet the obligations that have come due and will come due over the next 60 days, including interest payments on their corporate debt. They have a certain amount of availability from bank lines of credit, but they are in default and the banks are refusing to lend. Even if the banks did lend, the availability under the credit lines would only carry them for a couple of months. Undoubtedly, on a balance sheet, their assets are going to exceed their liabilities. But because those assets are illiquid, and the banks are refusing to extend credit based upon the value of those illiquid assets, they cannot pay their bills as they come due. David Shemano -Original Message- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]]On Behalf Of Michael Perelman Sent: Thursday, January 18, 2001 9:11 PM To: [EMAIL PROTECTED] Subject: [PEN-L:7124] Re: RE: Re: Re: Re: RE: Bankruptcy again David, the operating side might not have a positive cash flow because they used borrowed money to buy scads of production assets -- or it may just be a matter of cooking the books. -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail [EMAIL PROTECTED]
Bankruptcy again
[EMAIL PROTECTED] 01/17/01 05:38PM David, how could these bandits be in the hole? I would be sure to defer Gene Coyle in this regard, is that I thought they had been making money in hand over fist for many months before the financial crunch hit -- CB: It's sort of the poor little rich kid phenomenon.
Re: Organizing in CA - was predicting 9
There is NOT much organizing going on. The most prominent that I know of is by an overlapping pair of groups. Medea Benjamin of Global Exchange who was the Green Party candidate for US Senator is leading demonstrations that are mostly Green Party folks. They have petitions to sign to assert that you won't pay the 9% increase the CPUC recently approved. As far as I know there isn't anything else. There ARE organizations pushing positions, talking of Referendum for the 2002 ballot, and sort of the inside game of pressuring the legislature and governor. Maybe others in California are aware of other mobilizing, outside of my area, Northern California. Gene Coyle Lisa Ian Murray wrote: With rolling blackouts now looking like something that may go on for a while in CA, is there any organizing to put people in the streets? What does it take to make the US citizenry mad enough to mobilize? This is where the WHO question comes in.. Ian -Original Message- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]]On Behalf Of Michael Perelman Sent: Thursday, January 18, 2001 8:21 AM To: [EMAIL PROTECTED] Subject: [PEN-L:7101] Re: Predicting 9 of the last 3 recessions The article that Ian sent is very important. Going back to Milton Friedman, the one claim to fame of economics is its presumptive predictive ability. I assume that Friedman was talking about very simple predictions: it is supplied some good goes down its price will go up. Macroeconomic predictions require that economists go beyond simple commonsense pronouncements and show that they have real insight into the economy. Most macroeconomists who are in the prediction game do not want to stray too far from the field. Remember what Keynes said about failing conventionally. This fallibility is important to keep in mind when confronting our conservative brethren in debates, as I assume we will has the recession unfolds. Lisa Ian Murray wrote: http://www.iht.com/articles/7768.html The Unpredictable Economy: Experts Missed Last 9 Recessions Steven Pearlstein Washington Post Service Wednesday, January 17, 2001 WASHINGTON In presenting his annual economic outlook last Thursday, the chairman of President Bill Clinton's Council of Economic Advisers was having nothing to do with all the recession talk going around. . "Let me be clear," Martin Baily said. "We don't think that we're going into recession." . The same message was delivered the next day by Mr. Clinton in a Rose Garden economic valedictory. Citing the predictions of 50 private forecasters known as the Blue Chip Consensus - "the experts who make a living doing this," as he put it - Mr. Clinton assured Americans that the economy would continue to grow this year at an annual rate of 2 percent to 3 percent. . What the president and his adviser failed to mention was that "the experts" did not predict any of the nine recessions since the end of World War II. . That is true of the members of the Blue Chip Consensus as well as the Council of Economic Advisers, the forecasting staffs of the Federal Reserve Board and the Congressional Budget Office. . And if, as a few renegades have begun to predict, the U.S. economy is heading into a mild recession this year, that would mean one more forecast added to that dismal record. . "We really aren't very good at calling the turning points of the economy in either direction," said Murray Weidenbaum, the top economic adviser in the Reagan administration. . Allen Sinai of Primark Decision Economics Inc., a respected private forecaster, agreed. "It's probably only fair for forecasters to admit at times like this that we're simply not well equipped to predict turning points," he said. "A recession, by its nature, is a speculative call." . At first blush, such humility may seem at odds with the aura surrounding modern-day forecasters. . Using high-speed computers and sophisticated models of the U.S. economy, they constantly revise their two-year predictions for everything from unemployment to business investment to long-term interest rates, expressed numerically to the first decimal place. . But according to the forecasters themselves, what may appear to be a precise science is really a black art, one that is constantly confounded by the changing structure of the economy and the refusal of investors, consumers and business executives to behave as rationally and predictably in real life as they do in economic models. . "The reason we have trouble calling recessions is that all recessions are anomalies," said Joel Prakken, president of Macroeconomic Advisers of St. Louis, one of the leading U.S. forecasting firms. . According to Mr. Prakken, every modern recession has been caused by a
Cartel
"The Confederate Cartel's war against California" http://www.sfbg.com/News/35/14/Berman.html
Cal. Energy Demand Down
FOR IMMEDIATE RELEASE JANUARY 19, 2001 CONTACT: Public Citizen Angela Bradbery (202) 588-7742 or (202) 588-7741 Electricity Demand in California Was Lower in Four of Past Six Months Than in 1999 Data Casts Doubt on Power Producers' Claims That Demand Has Fueled Higher Prices WASHINGTON - January 19 - Power demand during four of the past six months in California was lower than during the same period in 1999, indicating that California's power producers are misrepresenting the facts about energy demand to justify gouging the state's utilities, Public Citizen has concluded. Public Citizen analyzed system hourly load data compiled by the California Independent System Operator (CAISO). CAISO uses this data to find out how much energy must come from various plants to meet California demand and records the highest amounts of demand by hour within the state of California. The data shows that while demand did soar in May, in four out of the past six months -- July, August, October and December -- California saw a lower peak demand than during the same months in 1999. "The facts are in, and they prove that power producers have been misrepresenting the energy crisis as caused by increased consumer demand," said Wenonah Hauter, director of Public Citizen's Critical Mass Energy and Environment Program. "Power producers want Californians to believe that consumers need to pay higher rates to encourage the construction of new power plants to meet the alleged higher demand. Our analysis reveals their ploy to soak consumers." With no increase in energy demand, a major contributor to the current crisis is that plants servicing California with 11,000 megawatts of capacity have been taken out of service for a variety of reasons, most undisclosed. Now, power producers are inappropriately citing increased demand to justify building new plants, and they are hoping to speed the process by suspending California's environment-friendly standards and blocking the ability of communities to oppose new plants. "The fact that demand in California is on par with previous years highlights power producers' attempts to circumvent environmental rules and local input on energy policy," Hauter said. While power producers acknowledge that many other factors are affecting prices, including demand in the entire western U.S., they have focused on California energy demand when justifying their high prices.
Re: Re: [rlatham@independent.org: Query]
Some months back they hosted Cockburn and St. Clair in an event on their WhiteOut:The CIA, the Media and Drugs book. Was probably way more well atended than an event I helped with yrs. ago with the Christic Institute's Father Bill Davis. About a half dozen folks showed up. Got to meet Larry Bensky, at least. Had a silly woolen cap. On the Libertarians, I still remember a magazine from the 70's (was it called Inquiry?) that published Chomsky from the left alongside the more usual susdpects from the Right like Rothbard and such. Some acct. of Libertarianism I've read said that major money bag types pulled the plug on that left/right rag. And know they publish, "Reason, " one right-wing rag I do glance at the cover and say, ecch. Virginia Postrel, 'ya... Michael Pugliese -Original Message- From: Doug Henwood [EMAIL PROTECTED] To: [EMAIL PROTECTED] [EMAIL PROTECTED] Date: Friday, January 19, 2001 7:33 AM Subject: [PEN-L:7128] Re: [[EMAIL PROTECTED]: Query] Michael Perelman wrote: I'm glad to see that you believe we "get it," but am curious by what standard you adjudge the Institute to be "right wing." Its advisory board looks pretty corporate libertarian http://independent.org/tii/tii_info/advisors.html, with the occasional quirk (John MacArthur of Harper's). Gotta watch your political taxonomy Michael! Doug
re: Georgie Freeze
Well, the fun begins, and not a moment too soon. All federal agencies were informed today that, as of tomorrow (inaguration day), all hiring is frozen until further notice. And this is the man who loves civil servants -- not. maggie
Re: Re: RE: Re: RE: Bankruptcy again
Well reallyI thought that the price of natural gas is skyrocketing and supplies are limited. The stuff about methanol is complete gibberish...Do these people have a clue what they are taling about. Shit, methanol is grown nowThere is a plant 30 miles from me at Minnedosa and another owned by an aboriginal band in Saskatchewan.. Of course it is not literally grown but grain is fermented to produce ethanol and this is added to gasoline. I have no idea what genetic engineering might contribute except to produce grain that gave higher methanol content. Given the inputs necessary to grow the grain some environmentalists have argued that the process wastes energy although others argue for it since it burns cleaner.. Many ethanol plants us wheat as the two I mentioned, although some use corn. There is no genetically engineered wheat licensed as yet, although there is some corn. Ethanol is sometimes also manufactured from waste forestry products. It is strange that there is no mention of geothermal power. Even in the north here it is gaining in popularity and the electricity involved to circulate the water under pressure is about 1/3 or so of that of electric heat. What of wind power..? Cheers, Ken Hanly - Original Message - From: Lisa Ian Murray [EMAIL PROTECTED] To: [EMAIL PROTECTED] Sent: Thursday, January 18, 2001 8:19 PM Subject: [PEN-L:7119] Re: RE: Re: RE: Bankruptcy again via micro-turbines, internal combustion engines and fuel cells. There will be an increased used of natural gas because it's clean, cheap and available. . One example is the conversion of natural gas to diesel fuel for transportation. "Gas to liquids technology offers an exciting, economically attractive opportunity to convert natural gas from remote locations-which otherwise would be wasted-into easily transported and inherently clean fuel," said Denny Stephens, Senior Research Scientist for Battelle's Energy Products. 8. Energy Farms: The use of bio-engineered crops for fuels will be hurried along by the genetic revolution that permits cultivation of crops to produce fuels such as ethanol. "We will grow gasoline, so to speak, to lessen our dependence on imported oil," Millett said. "With advances in DNA engineering, we will be able to grow energy as well as food crops."
bankruptcy and corporate auditing
David mentioned that the corporations heading for bankruptcy were unlikely to cook their books. However, corporations seem to manage to escape detection from financial shenanigans for long periods of time. I'm dictating this note with Dragon NaturallySpeaking, the parent company of which Lernaut and Hauspie, seems to have perpetrated a grand fraud for considerable period of time. By the way, we've had to a number of conservatives come on to pen-l. Usually, they intend to educate the heathens. In contrast, David has been good very respectful, keeping to his word that he is here to learn. -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail [EMAIL PROTECTED]
Re: Re: Re: RE: Re: RE: Bankruptcy again
Ken -- when accusing others of writing gibberish it is good to avoid it yourself. *Ethanol* is what is produced from grain, and sugarcane. *Methanol* is an alcohol produced through destructive distillation -- usually of coal or wood or garbage. Ken Hanly wrote: Well reallyI thought that the price of natural gas is skyrocketing and supplies are limited. The stuff about methanol is complete gibberish...Do these people have a clue what they are taling about. Shit, methanol is grown nowThere is a plant 30 miles from me at Minnedosa and another owned by an aboriginal band in Saskatchewan.. Of course it is not literally grown but grain is fermented to produce ethanol and this is added to gasoline. I have no idea what genetic engineering might contribute except to produce grain that gave higher methanol content. Given the inputs necessary to grow the grain some environmentalists have argued that the process wastes energy although others argue for it since it burns cleaner.. Many ethanol plants us wheat as the two I mentioned, although some use corn. There is no genetically engineered wheat licensed as yet, although there is some corn. Ethanol is sometimes also manufactured from waste forestry products. It is strange that there is no mention of geothermal power. Even in the north here it is gaining in popularity and the electricity involved to circulate the water under pressure is about 1/3 or so of that of electric heat. What of wind power..? Cheers, Ken Hanly - Original Message - From: Lisa Ian Murray [EMAIL PROTECTED] To: [EMAIL PROTECTED] Sent: Thursday, January 18, 2001 8:19 PM Subject: [PEN-L:7119] Re: RE: Re: RE: Bankruptcy again via micro-turbines, internal combustion engines and fuel cells. There will be an increased used of natural gas because it's clean, cheap and available. . One example is the conversion of natural gas to diesel fuel for transportation. "Gas to liquids technology offers an exciting, economically attractive opportunity to convert natural gas from remote locations-which otherwise would be wasted-into easily transported and inherently clean fuel," said Denny Stephens, Senior Research Scientist for Battelle's Energy Products. 8. Energy Farms: The use of bio-engineered crops for fuels will be hurried along by the genetic revolution that permits cultivation of crops to produce fuels such as ethanol. "We will grow gasoline, so to speak, to lessen our dependence on imported oil," Millett said. "With advances in DNA engineering, we will be able to grow energy as well as food crops."
Economists, defund the World Bank!
PEN-L comrades, greetings, can we beg your attention for this extremely important sign-on letter? It's in support of the boycott on purchase of World Bank bonds by institutions (pensions, universities, municipalities, church endowments, etc) which we can make a socially-responsible investment appeal to. Universities like Columbia and my own in Jo'burg (Wits) are taking this up in coming weeks, so it is really crucial to have a long list of economists and other academics, internationally, endorse this call. Please read the brief letter, below, and sign on today! (And do have a look at http://www.worldbankboycott.org if you aren't convinced. I also wrote a Monthly Review article last July, `Defunding the Fund, Running on the Bank,' which is on their website.) (Or, if you disagree with the defunding strategy and bonds-boycott tactic, take up a debate here on PEN-L.) Endorsements of the World Bank Bonds Boycott have come from the city councils of SF, Oakland and Berkeley, plus all the important socially responsible investments funds, plus the most forward-looking unions (which have control over pension investments), plus lots of other folk. So join us! It's one of the single best ways that in each of our local settings, we can continue conscientisation and movement-building, between the Seattle/Washington/Prague/QuebecCity events. And we need all the grassroots handles we can get, to ensure tens of thousands come to Washington in early October to protest at the next IMF/WB annual meeting. Thanks! Patrick === ACADEMIC SIGN-ON LETTER: UNIVERSITIES SHOULD SUPPORT THE WORLD BANK BONDS BOYCOTT Please return signatures with name, title, and educational institution to [EMAIL PROTECTED] as soon as possible! January 2001 We write today as members of the international academic community, in support of the World Bank Bonds Boycott. A worldwide movement for social and environmental justice has brought the World Bank under increasing scrutiny in recent years. As the head of the World Council of Churches explained in a June 1999 letter to UN Secretary General Kofi Annan, "Their [IMF and World Bank] policies have not only failed to bridge the gap between rich and poor and achieve greater equality, but rather contributed to a widening gap, the virtual exclusion of an increasing number of the poor and widespread social disintegration." The policies of the World Bank, and its sister institution, the International Monetary Fund (IMF), have had a profound and devastating effect on the quality of life of millions of people. The World Bank raises 80% of its money through bond sales to institutional investors, including to universities and colleges like the ones at which we teach or study. (In contrast, the IMF raises its capital from government contributions.) The World Bank has refused calls to grant full and unconditional debt cancellation for the poorest countries, and the Bank continues to collect debt service payments from these countries. Payments are often many times more than the amount spent on health care or education. The Bank continues to devote a large share of its lending toward devastating "structural adjustment" policies, which include privatization and imposition of user fees in public health and education systems; restrictions on workers' rights to organize and increase their standard of living; and promotion of trade, financial and investment liberalization policies that facilitate the global race to the bottom. The World Bank has also lent money for projects that despoiled the natural environment and violated the rights of indigenous peoples, especially for dams, for the extraction of oil and gas, and for mining. In just one example, in June 2000, disregarding the objections of local groups and environmental and human rights organizations, the Bank approved the Chad-Cameroon pipeline. The project will cause severe, irreversible environmental damage as it cuts through indigenous villages, hundreds of miles of rainforest, and several wildlife sanctuaries. Of particular concern to those of us within institutions of higher education, World Bank lending policies for education have led to a collapse in many Third World educational systems. Fewer students in poor countries have access to tertiary education now than before the imposition of IMF/World Bank structural adjustment programs in the 1980s. Expenditure per pupil for primary education fell precipitously under World Bank structural adjustment programs. In response to the catastrophe caused by World Bank lending for higher education worldwide, a large student and faculty movement has been launched demanding an end to structural adjustment, since it creates conditions which violate their academic freedom to teach, study and research. Already, in the US alone, the city governments of San Francisco, Oakland, and Berkeley, California; the Communication Workers of America, and the United Electrical, Radio and Machine Workers of America;
