2 Further details can be found from my earlier books, Further details can be found from my earlier books, Kicking Away the Ladder Kicking Away the Ladder (Anthem Press, London, 2002) and (Anthem Press, London, 2002) and Bad Samaritans Bad Samaritans.
THING 13.
1 The sixteen countries where inequality increased are, in descending order of income inequality as of 2000, the US, South Korea, the UK, Israel, Spain, Italy, the Netherlands, Japan, Australia, Canada, Sweden, Norway, Belgium, Finland, Luxemburg and Austria. The four countries where income inequality fell were Germany, Switzerland, France and Denmark. The sixteen countries where inequality increased are, in descending order of income inequality as of 2000, the US, South Korea, the UK, Israel, Spain, Italy, the Netherlands, Japan, Australia, Canada, Sweden, Norway, Belgium, Finland, Luxemburg and Austria. The four countries where income inequality fell were Germany, Switzerland, France and Denmark.
2 L. Mishel, J. Bernstein and H. Shierholz, L. Mishel, J. Bernstein and H. Shierholz, The State of Working America, 2008/9 The State of Working America, 2008/9 (Economic Policy Institute, Washington, DC, 2009), p. 26, table 3. (Economic Policy Institute, Washington, DC, 2009), p. 26, table 3.
3 According to the OECD (Organization for Economic Development and Cooperation), before taxes and transfers, the US, as of mid 2000s, had a Gini coefficient (the measure of income inequality, with 0 as absolute equality and 1 as absolute inequality) of 0.46. The figures were 0.51 for Germany, 0.49 for Belgium, 0.44 for Japan, 0.43 for Sweden and 0.42 for the Netherlands. According to the OECD (Organization for Economic Development and Cooperation), before taxes and transfers, the US, as of mid 2000s, had a Gini coefficient (the measure of income inequality, with 0 as absolute equality and 1 as absolute inequality) of 0.46. The figures were 0.51 for Germany, 0.49 for Belgium, 0.44 for Japan, 0.43 for Sweden and 0.42 for the Netherlands.
THING 14.
1 L. Mishel, J. Bernstein and H. Shierholz, L. Mishel, J. Bernstein and H. Shierholz, The State of Working America, 2008/9 The State of Working America, 2008/9 (Economic Policy Institute, Washington, DC, 2009), table 3.2. (Economic Policy Institute, Washington, DC, 2009), table 3.2.
2 Ibid., table 3.1. Ibid., table 3.1.
3 'Should Congress put a cap on executive pay?', 'Should Congress put a cap on executive pay?', New York Times New York Times, 3 January 2009.
4 Mishel et al., op. cit., table 3.A2. The thirteen countries are Australia, Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, New Zealand, Spain, Sweden, Switzerland and the UK. Mishel et al., op. cit., table 3.A2. The thirteen countries are Australia, Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, New Zealand, Spain, Sweden, Switzerland and the UK.
5 Ibid., table 3.A2. Ibid., table 3.A2.
6 L. A. Bebchuk and J. M. Fried, 'Executive compensation as an agency problem', L. A. Bebchuk and J. M. Fried, 'Executive compensation as an agency problem', Journal of Economic Perspectives Journal of Economic Perspectives, 2003, vol. 17, no. 3, p. 81.
THING 15.
1 OECD, 'Is informal normal? Towards more and better jobs in developing countries', 2009. OECD, 'Is informal normal? Towards more and better jobs in developing countries', 2009.
2 D. Roodman and J. Morduch, 'The impact of microcredit on the poor in Bangladesh: Revisiting the evidence', 2009, working paper, no. 174, Center for Global Development, Washington, DC. D. Roodman and J. Morduch, 'The impact of microcredit on the poor in Bangladesh: Revisiting the evidence', 2009, working paper, no. 174, Center for Global Development, Washington, DC.
3 M. Bateman, M. Bateman, Why Doesn't Microfinance Work? Why Doesn't Microfinance Work? (Zed Books, London, 2010). (Zed Books, London, 2010).
THING 16.
1 Mansion House speech, 19 June 2009. Mansion House speech, 19 June 2009.
2 For a very engaging and user-friendly presentation of the researches on the irrational side of human nature, see P. Ubel, For a very engaging and user-friendly presentation of the researches on the irrational side of human nature, see P. Ubel, Free Market Madness: Why Human Nature is at Odds with Economics and Why it Matters Free Market Madness: Why Human Nature is at Odds with Economics and Why it Matters (Harvard Business School Press, Boston, 2009). (Harvard Business School Press, Boston, 2009).
THING 17.
1 J. Samoff, 'Education for all in Africa: Still a distant dream' in R. Arnove and C. Torres (eds.), J. Samoff, 'Education for all in Africa: Still a distant dream' in R. Arnove and C. Torres (eds.), Comparative Education The Dialectic of the Global and the Local Comparative Education The Dialectic of the Global and the Local (Rowman and Littlefield Publishers Inc., Lanham, Maryland, 2007), p. 361, table 16.3. (Rowman and Littlefield Publishers Inc., Lanham, Maryland, 2007), p. 361, table 16.3.
2 L. Pritchett, 'Where has all the education gone?', L. Pritchett, 'Where has all the education gone?', The World Bank Economic Review The World Bank Economic Review, 2001, vol. 13, no. 3.
3 A. Wolf, A. Wolf, Does Education Matter? Does Education Matter? (Penguin Books, London, 2002), p. 42. (Penguin Books, London, 2002), p. 42.
4 In the eighth grade, the US overtook Lithuania, but was still behind Russia and Hungary; fourth-grader score for Hungary and eighth-grader scores for Latvia and Kazakhstan are not available. In the eighth grade, the US overtook Lithuania, but was still behind Russia and Hungary; fourth-grader score for Hungary and eighth-grader scores for Latvia and Kazakhstan are not available.
5 The other European countries were, in order of their rankings in the test, Germany, Denmark, Italy, Austria, Sweden, Scotland and Norway. See the website of the National Center for Educational Statistics of the US Department of Education Institute of Education Sciences, The other European countries were, in order of their rankings in the test, Germany, Denmark, Italy, Austria, Sweden, Scotland and Norway. See the website of the National Center for Educational Statistics of the US Department of Education Institute of Education Sciences, http://nces.ed.gov/timss/table07_1.asp.
6 The other rich countries were, in order of their rankings in the test, Japan, England, the US, Australia, Sweden, Scotland and Italy. See the above website. The other rich countries were, in order of their rankings in the test, Japan, England, the US, Australia, Sweden, Scotland and Italy. See the above website.
7 The most influential works in this school of thought were Harry Braverman's The most influential works in this school of thought were Harry Braverman's Labor and Monopoly Capital: The Degradation of Work in the Twentieth Century Labor and Monopoly Capital: The Degradation of Work in the Twentieth Century (Monthly Review Press, New York, 1974) and Stephen Marglin's 'What do bosses do?', published in two parts in (Monthly Review Press, New York, 1974) and Stephen Marglin's 'What do bosses do?', published in two parts in The Review of Radical Political Economy The Review of Radical Political Economy in 1974 and 1975. in 1974 and 1975.
8 Wolf, Wolf, op. cit. op. cit., p. 264.
9 On the issue of sorting and many other insightful observations on the role of education in economic development, see Wolf, On the issue of sorting and many other insightful observations on the role of education in economic development, see Wolf, op. cit. op. cit.
THING 18.
1 R. Blackburn, 'Finance and the fourth dimension', R. Blackburn, 'Finance and the fourth dimension', New Left Review New Left Review, May/June 2006, p. 44.
THING 19.
1 The share of federal government in total R&D spending in the US was 53.6 per cent in 1953, 56.8 per cent in 1955, 64.6 per cent in 1960, 64.9 per cent in 1965, 57.1 per cent in 1970, 51.7 per cent in 1975, 47.2 per cent in 1980, 47.9 per cent in 1985 and 47.3 per cent in 1989 (estimated). See D. Mowery and N. Rosenberg, 'The U.S. National Innovation System' in R. Nelson (ed.), The share of federal government in total R&D spending in the US was 53.6 per cent in 1953, 56.8 per cent in 1955, 64.6 per cent in 1960, 64.9 per cent in 1965, 57.1 per cent in 1970, 51.7 per cent in 1975, 47.2 per cent in 1980, 47.9 per cent in 1985 and 47.3 per cent in 1989 (estimated). See D. Mowery and N. Rosenberg, 'The U.S. National Innovation System' in R. Nelson (ed.), National Innovation Systems National Innovation Systems (Oxford University Press, New York and Oxford, 1993), p. 41, table 2.3. (Oxford University Press, New York and Oxford, 1993), p. 41, table 2.3.
2 H. Simon, 'Organizations and markets', H. Simon, 'Organizations and markets', Journal of Economic Perspectives Journal of Economic Perspectives, 1991, vol. 5, no. 2, p. 27.
THING 20.
1 On how the Confucian culture was On how the Confucian culture was not not a cause of East Asian economic development, see 'Lazy Japanese and thieving Germans', ch. 9 in my book a cause of East Asian economic development, see 'Lazy Japanese and thieving Germans', ch. 9 in my book Bad Samaritans Bad Samaritans (Random House, London, 2007, and Bloomsbury USA, New York, 2008). (Random House, London, 2007, and Bloomsbury USA, New York, 2008).
2 M. Jantti et al., 'American exceptionalism in a new light: a comparison of intergenerational earnings mobility in the Nordic countries, the United Kingdom and the United States', The Warwick Economic Research Paper Series, Department of Economics, University of Warwick, October 2005. M. Jantti et al., 'American exceptionalism in a new light: a comparison of intergenerational earnings mobility in the Nordic countries, the United Kingdom and the United States', The Warwick Economic Research Paper Series, Department of Economics, University of Warwick, October 2005.
THING 21.
1 OECD is the Organization for Economic Cooperation and Development. It is the club of the rich countries, with several members describing whom as 'rich' may be debatable, such as Portugal, Korea, Czech Republic, Hungary, Slovak Republic, Poland, Mexico and Turkey (in descending order of per capita income). Of these, Portugal and Korea are the richest, with around $18,000 per capita income (in 2006), and Turkey the poorest, with per capita income of $5,400 (in 2006). The next poorest OECD member after Portugal and Korea is Greece, which has a per capita income over $24,000. In 2003 (the latest year for which the OECD has the data), public social spending accounted for 5.7 per cent of GDP in Korea. The highest was Sweden, with 31.3 per cent. The OECD average was 20.7 per cent. See OECD is the Organization for Economic Cooperation and Development. It is the club of the rich countries, with several members describing whom as 'rich' may be debatable, such as Portugal, Korea, Czech Republic, Hungary, Slovak Republic, Poland, Mexico and Turkey (in descending order of per capita income). Of these, Portugal and Korea are the richest, with around $18,000 per capita income (in 2006), and Turkey the poorest, with per capita income of $5,400 (in 2006). The next poorest OECD member after Portugal and Korea is Greece, which has a per capita income over $24,000. In 2003 (the latest year for which the OECD has the data), public social spending accounted for 5.7 per cent of GDP in Korea. The highest was Sweden, with 31.3 per cent. The OECD average was 20.7 per cent. See OECD Factbook 2008: Economic, Environmental and Social Statistics OECD Factbook 2008: Economic, Environmental and Social Statistics.
2 In 2003 (the latest year for which the OECD has the data), public social spending accounted for 16.2 per cent of GDP in the US, compared to the OECD average of 20.7 per cent and the EU15 average of 23.9 per cent. Among the OECD member states, only Korea (5.7 per cent) and Mexico (6.8 per cent) two countries that are usually not considered fully developed had a lower ratio. Ibid. In 2003 (the latest year for which the OECD has the data), public social spending accounted for 16.2 per cent of GDP in the US, compared to the OECD average of 20.7 per cent and the EU15 average of 23.9 per cent. Among the OECD member states, only Korea (5.7 per cent) and Mexico (6.8 per cent) two countries that are usually not considered fully developed had a lower ratio. Ibid.
THING 22.
1 R. Portes and F. Baldursson, R. Portes and F. Baldursson, The Internationalisation of Iceland's Financial Sector The Internationalisation of Iceland's Financial Sector (Iceland Chamber of Commerce, Reykjavik, 2007), p. 6. (Iceland Chamber of Commerce, Reykjavik, 2007), p. 6.
2 G. Dumenil and D. Levy, 'Costs and benefits of neoliberalism: A class analysis', in G. Epstein (ed.), G. Dumenil and D. Levy, 'Costs and benefits of neoliberalism: A class analysis', in G. Epstein (ed.), Financialisation and the World Economy Financialisation and the World Economy (Edward Elgar, Cheltenham, 2005). (Edward Elgar, Cheltenham, 2005).
3 J. Crotty, 'If financial market competition is so intense, why are financial firm profits so high? Reflections on the current "golden age" of finance', Working Paper, no. 134, PERI (Political Economy Research Institute), University of Massachusetts, Amherst, April 2007. J. Crotty, 'If financial market competition is so intense, why are financial firm profits so high? Reflections on the current "golden age" of finance', Working Paper, no. 134, PERI (Political Economy Research Institute), University of Massachusetts, Amherst, April 2007.
4 The information for GE is from R. Blackburn, 'Finance and the fourth dimension', The information for GE is from R. Blackburn, 'Finance and the fourth dimension', New Left Review New Left Review, May/June 2006, p. 44. J. Froud et al., Financialisation and Strategy: Narrative and Numbers Financialisation and Strategy: Narrative and Numbers (Routledge, London, 2006), estimates that the ratio could be as high as 50 per cent. The Ford number comes from the Froud et al. study and the GM number from the Blackburn study. (Routledge, London, 2006), estimates that the ratio could be as high as 50 per cent. The Ford number comes from the Froud et al. study and the GM number from the Blackburn study.
5 J. G. Palma, 'The revenge of the market on the rentiers Why neoliberal reports of the end of history turned out to be premature', J. G. Palma, 'The revenge of the market on the rentiers Why neoliberal reports of the end of history turned out to be premature', Cambridge Journal of Economics Cambridge Journal of Economics, 2009, vol. 33, no. 4.
THING 23.
1 Your per capita income will double in ten years, if you are a 'miracle' economy growing at 7 per cent. If you are a 'golden age' economy growing at 3.5 per cent per year per capita, it will take around twenty years to double your per capita income. In those twenty years, per capita income of the miracle economy will have quadrupled. In contrast, it will take around seventy years for an 'industrial revolution' economy, growing at 1 per cent in per capita terms, to double its per capita income. Your per capita income will double in ten years, if you are a 'miracle' economy growing at 7 per cent. If you are a 'golden age' economy growing at 3.5 per cent per year per capita, it will take around twenty years to double your per capita income. In those twenty years, per capita income of the miracle economy will have quadrupled. In contrast, it will take around seventy years for an 'industrial revolution' economy, growing at 1 per cent in per capita terms, to double its per capita income.
2 The letter can be downloaded from the website, The letter can be downloaded from the website, http://media.ft.com/cms/3e3b6ca8-7a08-11de-b86f-00144feabdc0.pdf.