MessageHmmmm.... An increase in rich/poor income disparity might be a means of solving the unemployment problem -- at least partially. Maybe Reagan wasn't so dumb after all?
Ed ----- Original Message ----- From: michael gurstein To: 'RE-DESIGNING WORK, INCOME DISTRIBUTION,EDUCATION' Sent: Saturday, February 06, 2010 4:17 AM Subject: [Futurework] FW: [p2p-research] Santa Fe Institute economist: onein four Americansis employed to guard the... -----Original Message----- From: [email protected] [mailto:[email protected]] On Behalf Of Kevin Carson Sent: Saturday, February 06, 2010 3:57 PM To: [email protected] Subject: [p2p-research] Santa Fe Institute economist: one in four Americansis employed to guard the... Sent to you by Kevin Carson via Google Reader: Santa Fe Institute economist: one in four Americans is employed to guard the wealth of the rich via Boing Boing by Cory Doctorow on 2/5/10 Here's a fascinating profile on radical Santa Fe Institute economist Samuel Bowles, an empiricist who says his research doesn't support the Chicago School efficient marketplace hypothesis. Instead, Bowles argues that the wealth inequality created by strict market economics creates inefficiencies because society has to devote so much effort to stopping the poor from expropriating the rich. He calls this "guard labor" and says that one in four Americans is employed to in the sector -- labor that could otherwise be used to increase the nation's wealth and progress. The greater the inequalities in a society, the more guard labor it requires, Bowles finds. This holds true among US states, with relatively unequal states like New Mexico employing a greater share of guard labor than relatively egalitarian states like Wisconsin. The problem, Bowles argues, is that too much guard labor sustains "illegitimate inequalities," creating a drag on the economy. All of the people in guard labor jobs could be doing something more productive with their time--perhaps starting their own businesses or helping to reduce the US trade deficit with China. Guard labor supports what one might call the beat-down economy. Community Action's Porter sees it all the time. "We have based almost everything we have done on the idea that we always need a part of our workforce that is marginalized--that we can call this group into action at any time, pay them nothing and they will do anything that needs to be done," she says. More discouraging, perhaps, is the statistical fact that a person born into this workforce has little chance of rising beyond it. Born Poor? (via MeFi) Previously: a.. China's labor unrest worse than suspected - Boing Boing b.. Which Side Are You On? Explaining what happened to labor in ... c.. Questions from economics honors exam at Oberlin College Boing Boing d.. EVE Online's economist speaks -- economics as an experimental ... e.. Max Keiser's curmudgeonly TV economics show: the Oracle - Boing Boing f.. Mackerel economics in prison - Boing Boing g.. Economics of Malware - Boing Boing h.. MP3s from "Economics of Open Content" conference - Boing Boing i.. Boing Boing: Psychology, design and economics of slot-machines Things you can do from here: a.. Subscribe to Boing Boing using Google Reader b.. Get started using Google Reader to easily keep up with all your favorite sites ------------------------------------------------------------------------------ _______________________________________________ Futurework mailing list [email protected] https://lists.uwaterloo.ca/mailman/listinfo/futurework
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