Political choice and the multiple “logics” of capital

Conclusion The issue of whether one sees the constraints on domestic freedom of action as economic or political has important practical consequences. If one accepts the position that reforms such as the expansion of social welfare actually interfere with the fundamental logic of a capitalist order, it becomes very difficult to defend those reforms from conservative attack. One can argue that over the long term the only way to protect those reforms is through a break with the capitalist system, but this does not provide much strategic guidance in the short term. On the contrary, since the left is agreeing that these reforms contribute to the problems of the economy - inflation, slow growth, unemployment - it follows that the citizenry is acting rationally when it supports the right-wing attacks on the reforms. In a context in which the immediate transition to socialism is not possible, it follows that the best way to enhance the collective welfare is by trading off the reforms for the promise of faster economic growth.This is, I would argue, what has happened in the past decade in the United States. While one can easily exaggerate the influence of leftist ideas, the wide dissemination of the accumulation versus legitimation perspective within academia and activist circles has had the effect of persuading key groups of the futility of resisting the Reaganite attacks on the all-too-limited American welfare state. The very notion that Reagan's policies were necessary for American capitalism had the effect of disempowering those who were in a position to resist those policies.If, on the contrary, the left had stressed that the constraints are political and that there are multiple ways to make a capitalist economy work, the possibilities for effective resistance would have been greater. Rather than perceiving Reaganite policies as reflecting some economic necessity, it would have been possible to formulate alternative policies for responding to the economic problems. With such alternative frameworks, it might then be possible to build broader political alliances while also empowering the victims of the cutbacks to fight both to protect earlier gains and to win new concessions.Because the struggle to protect the remnants of the welfare state continues, it is not too late to break the chains of the economistic fallacy. The costs are slight and the benefits could be enormous.     

INTERNATIONAL NARCOTICS TRADE,FOREIGN AID,AND ENFORCEMENT

Using a general equilibrium model of a developing narcotics‐producing and ‐exporting economy, we analyze the economic effects of policies designed to restrict the production and trade of narcotics: foreign aid tied to anti‐narcotics law enforcement activities, demand reduction policies, and alternative development policies. We characterize the problem as one of serious factor market distortions introduced by illicit production and enforcement. While aid to enforcement generally reduces the production and export of narcotics, it is less effective for economies with market power, and under plausible conditions may raise narcotics output and have negative welfare implications for the recipient. (JEL F1)     

COMPETITION AND PRODUCTIVITY GROWTH: THE CASE OF THE U.S. TELEPHONE INDUSTRY

The article focuses on the relation of competition to changes in productivity. Specifically, it compares the experience of AT&T Long Lines, operating in an increasingly competitive market, with that of eight local telephone monopolies. Both the estimation of total factor productivity growth and the analysis of shifts in cost functions show a markedly faster change in efficiency in the effectively competitive market than for the local monopolies. The article also examines three channels through which competition produces differential changes in efficiency. The results support, by implication, a policy of permitting entry and increasing competition in local telephone markets. ( JEL L11, L96)     

DEMOGRAPHICS, PRODUCTIVITY GROWTH AND THE MACROECONOMIC EQUILIBRIUM

This paper investigates the economic effects of demographics and productivity growth in an intertemporal optimizing model with age-based heterogeneity and induced retirement. Our analysis reveals that the projected "population aging" is likely to increase the growth rate of output and to improve the welfare of the economy, especially if there are no distortional policies which prevent retirement decisions from adjusting endogenously to the demographic changes. The economy also displays different patterns of dynamic adjustment in the quantity and price variables depending upon whether retirement is endogenous.     

Welfare-to-Work Programs and the Dynamics of TANF Use

This study examines the effects of participation in Welfare-to-Work programs on the dynamics of TANF recipients’ welfare use. Using the Survey of Program Dynamics and the Welfare Rules Database, the study analyzes how participation in Human Capital Development and Labor Force Attachment programs affects the probabilities of TANF exit and re-entry, while holding the effects of the state economy and various TANF rules constant. The analyses reveal that LFA programs are not associated with a higher probability of TANF exit than HCD programs. Instead, TANF recipients’ employment status and the local labor market conditions are more important predictors of TANF exit. It also reveals that, for TANF leavers, severe poverty and economic insecurity are significantly related to their welfare recidivism.     

Rational Choice Theory or Pretense? The Claims,Equivalences, and Analogies of the “Economic Approach to Human Behavior”

The article argues and demonstrates that classical–neoclassical economics generally does not pretend or claim that its principles apply to domains beyond the economy, specifically wealth, and does not equate the economic and the noneconomic, and the rational and the nonrational. By contrast, the “economic approach to human behavior” or “rational choice theory” precisely does this to legitimize itself by invoking classical–neoclassical economics as supreme authority and its representatives as venerable precursors. The article reveals the economic approach to human behavior as a set of grand theoretical and methodological claims, equivalences, and analogies from the standpoint of conventional economics itself, as well as sociology and other social sciences. It identifies and examines certain indicative instances of such tendencies. The article aims to contribute to understanding better the relations—or rather lack thereof—between conventional economics and contemporary economic and sociological rational choice theory. The economic approach to human behavior is not new, even outside the market sector. The rational choice model provides the most promising basis presently available for a unified approach to the analysis of the social world by scholars from different social sciences. — Gary Becker With respect to those parts of human conduct of which wealth is not even the principal object, to these political economy does not pretend that its conclusions are applicable. — John S. Mill But economy does not treat of all human motives. There are motives nearly always present with us, arising from conscience, compassion, or from some moral or religious source, which economy cannot and does not pretend to treat. These will remain to us as outstanding and disturbing forces; they must be treated, if at all, by other appropriate branches of knowledge. — William Jevons A science, therefore, based on the hypothesis (of universal rationality) would yield a general form of the social phenomenon having little or no contact with reality … — Vilfredo Pareto     

THE CULTURE OF CORRUPTION,TAX EVASION,AND ECONOMIC GROWTH

This study uses a dynamic general equilibrium model to quantify the effects of corruption and tax evasion on fiscal policy and economic growth. The model is calibrated to match estimates of tax evasion in developing countries. The calibrated model is able to generate reasonable predictions for net tax rates, the corruption associated with public investment projects, and the negative correlation between corruption and tax revenue. The presence of corruption and evasion is shown to have significant, but not large, negative effects on economic growth. The relatively moderate effects help explain the absence of a robust negative correlation between growth and corruption in cross‐country data. The model also implies that cracking down on tax evasion before addressing corruption can be a bad idea and that higher wages for public officials can improve welfare. (JEL H3, O4)     

TANF’s 15th Anniversary and the Great Recession: are Low‐Income Mothers Celebrating Upward Economic Mobility?

This article examines the impact of welfare reform for the upward economic mobility of low‐income families at the fifteenth anniversary of the Temporary Assistance for Needy Families (TANF) program. The reformed policy was based on assumptions about participating families’ morality and encouraged states to move families off welfare through work and marriage without considering whether they were still poor. TANF was also implemented during an economic boom. Today, the US economy is suffering from the effects of the Great Recession, with many fearing a double dip recession. Poverty rates rose during the last 3 years and are currently above 15 percent. For the first time since 1996, the welfare rolls are increasing in many states. Welfare reform’s ‘work first’ approach did not create lasting upward economic mobility for low‐income families. As an alternative, I explore how higher education for welfare mothers will create opportunities for lasting upward mobility, even in times of recession.     

Commodities in action: measuring embeddedness and imposing values

Recent approaches in political economy look at the effects of technology and social values on economic action. Combining these approaches with those of economic anthropologists, this article poses that the way the economy is instituted can be understood by looking at reasons actors have for participating in actor‐networks of production, distribution and consumption. Using the author's research on American recycling, this article first shows that much of the‘making’or instituting of the economy happens outside the market, through political machinations, contracts and standards. Second, it suggests that these relationships impose value upon goods differently than do market relations. The details of the recycling‘chain’show the ways actors shape the network and demonstrate that the social values that add‘economic value’to goods are not uniform, but are highly contextual. Starting from Mark Granovetter's notion of 'social embeddedness', the article explains that the measure of social embeddedness is not as important as the values imposed upon other actors through social structure in the economy. It calls for a close observation of economic action in the locales within which production takes place to understand better the‘actions‐at‐a‐distance’where the politics of technology, social movements and power create the empirical, instituted economy.     

Locational effects on AFDC exits: Examining local labor markets

Recent welfare reform limits welfare recipients to a maximum of five years of cash assistance. This policy change raises the question of whether it is reasonable to expect welfare recipients to be able to leave the rolls within a five year period, regardless of the economic conditions of the state or area in which they live. This article pursues this issue by examining the effects of economic conditions and residential location on a welfare recipient’s likelihood of leaving welfare over time. The analysis uses linked files from the Panel Study of Income Dynamics, the 1970 and 1980 U.S. Censuses, and County and City Data Book data from 1972 to 1994 to determine AFDC exit probabilities. The results indicate that being low-skilled and living within one of the largest U.S. cities dramatically decreases the likelihood of exit from AFDC via increased earnings. The results also show that the job loss within cities has a significant negative impact on AFDC exit probabilities for marriage, increased earnings and all exits for high school dropouts and African American AFDC recipients. However, including city employment variables did not decrease the negative effects of living within large northern cities for earnings exits. These results indicate that negative economic conditions and poor transportation within cities impede low-skilled AFDC recipients from increasing earnings and leaving welfare.     

Social Changes and Welfare Reform in South Korea: In the Context of the Late-coming Welfare State

The Korean welfare state is facing diverse pressures and challenges due to changing economic, social, and demographic circumstances: prevalence of the service economy, labor market flexibility, weakened family function and increase of untraditional families, lowest fertility rate and the most rapid ageing of the population among OECD countries, and so forth. These challenges, which indicate new types of social risks, have been stimulating a series of discussions on welfare reform in Korea. The old social risks such as retirement, ill health, poverty, and unemployment have not disappeared because of insecure or inadequate welfare, and now these risks are even intertwined with the so-called new social risks. Thereby the Korean welfare state is facing complicated reform tasks. This study attempts to analyze the structure and context of these challenges in Korea, and to explore the various driving forces that have formulated Korean welfare reform in recent decades. Through the above analyses, this study will shed light the characteristics of welfare reform in Korea as a late-coming welfare state.     

在国家与市场之间寻找中国社会政策改革的逻辑——“社会发展与社会政策:国际经验与中国改革”国际学术研讨会评述

综观东亚新兴经济体和欧美发达国家在社会政策领域的路径变迁,可以得出"两个转型"的基本结论,即东亚新兴经济体从单一追求经济增长逐渐向追求经济与社会平衡发展转型;欧美发达国家从倚重国家福利向倚重社会投资与国家福利平衡发展转型。这两个处于不同社会发展阶段的转型,对中国当前的社会发展和社会政策改革都有着非常重要的启示意义。中国作为具有后发优势的全球最有活力的新兴经济体,当前既需要解决经济增长与社会发展之间的失衡问题,也需要未雨绸缪,避免陷入欧美国家福利陷阱而背上沉重的财政包袱。因此,在国家与市场之间找到一条最具效率性和合理性的社会发展路径,才是符合当前中国社会政策改革的逻辑。     

解决食品安全问题的市场化路径探析

传统理论认为食品安全作为重要的民生领域,应是政府的主要职责,属于市场失灵的领域。但实践证明,单一的政府公共治理模式并不能有效解决食品安全问题。相反,如果能在食品安全管理的环节中更多地引入市场经济的理念,让市场机制发挥作用,探索符合市场经济规律要求的路径和手段,却可能在新形势下为解决食品安全问题寻找到一条有效的创新思路。     

WHO IS AFRAID OF THE FRIEDMAN RULE?

We explore the connection between optimal monetary policy and heterogeneity among agents in a standard monetary economy with two types of agents where the stationary distribution of money holdings is nondegenerate. Sans type-specific fiscal policy, we show that the zero-nominal-interest rate policy (the Friedman rule) does not maximize type-specific welfare; it may not maximize aggregate ex ante social welfare either. Indeed, one or, more surprisingly, both types may benefit if the central bank deviates from the Friedman rule. ( JEL E31, E51, E58)     

Powerlessness of older people in Hong Kong: a political economy analysis

Gerontologists agree that old age can be associated with an increase in powerlessness both in the personal domain and in the social and political fields. This paper is an attempt to understand the concept of powerlessness in old age within a political economy theoretical framework. The paper argues that the powerlessness of older people is not biologically determined. Rather, it is socially constructed. It has its roots in the social, economic, and political structure of society. For this reason, the paper argues that (a) the capitalist economic system discriminates against and marginalizes older people in the labor market. The current unfavorable economic climate will make the economic situation of older people worse. (b) The residual welfare system does not counteract the unfavorable impact of the economic system. Rather, it deprives older people of the necessary financial resources and social service supports that would enable them to lead independent and dignified lives. (c) The authoritarian political system creates adverse conditions that make it very difficult for older people to participate in the decision-making process on issues that affect their lives, as well as on broader political issues that affect the whole of society. It is the interplay among these economic, social, and political forces in Hong Kong that creates the political economy of powerlessness in old age and prevents older people from using their powers to master and control their lives.     

发挥社会主义管理模式优势,加强我国食品安全供应链管理

我国市场经济发育不充分和食品产业的现代化发展程度不高,因此难以全面照搬经济发达国家的食品安全供应链管理模式。但供应链管理的核心是集成管理思想,在强调计划与合作,注重协调,强调通过社会责任(CSR)推进整体福利等方面与社会主义管理思想有相通之处。我国的社会主义经济成分涵盖了整个食品供应链的各个环节,应该在强化行政管理的同时,通过改革创新,让"菜篮子工程"演变成为符合供应链管理要求的网络系统;把国有企业打造成供应链管理的核心企业,更好地发挥它们在食品安全管理中的应有作用;依靠社会主义经济因素,强化整个食品产业供应链的利益平衡与激励机制。     

Welfare vs “Cyberfare”

Due to the continual reliance on an outdated paradigm, current welfare reform proposals fail to adequately address the fundamental problems behind the welfare system itself. Obstacles to welfare reform abound, yet are not insurmountable with a redefinition of the federal role and a new overall way of thinking. Through the reexamination of current and past policies and existing cultural mores, the welfare system could, be recreated to rely on a new paradigm: cyberfare. Cyberfare is an economic and social support system which addresses the issues associated with an information/technology age, global economy, and the changing role of families and social institutions. Although the incorporation of cyberfare and the reforming of the welfare system is not without its challenges, it is vital to solving the poverty problem in American society.     

THE DEMAND TO REGULATE FRANCHISE MONOPOLY: EVIDENCE FROM CATV RATE DEREGULATION IN CALIFORNIA

The motivation to price control a franchise monopoly is examined in the context of three distinct economic views of regulatory behavior. These views are tested against data from the California cable television market, over the years 1980–85, during which a subset of monopoly firms converted from regulated to unregulated pricing for basic cable service. As the price constraints of regulation appear to be insignificant in a welfare analysis, the demand for such controls by municipalities is derived from their utility in enforcing vote-maximizing transfer schemes–a Peltzmanian political outcome with a Stiglerian economic welfare result.     

Asian migrants in Australia: A socio‐economic study

This paper presents a socio‐economic profile of Asian migrants in Australia, using data from the 1981 Census of Population. It shows that Asian migrants are highly educated (large proportions are university graduates and are in professional occupations), English‐speaking (many are bi‐lingual) and mostly Christian. The paper then goes on to estimate the economic benefits Asian migrants bring when they migrate to Australia, as well as the costs they might impose on the economy. Benefits were estimated by measuring the costs of education and training that Australia avoided by allowing skilled migrants to enter the country. In addition, migrants brought in financial capital when they came to Australia. They also contributed to the supply of goods and services by participating in productive employment. The costs that migrants might impose on the economy relate to the possibility of taking jobs and other resources (such as education, health and other public services) which might otherwise have gone to other Australians. Careful estimates of these factors indicate that, far from imposing a burden, Asian migrants make a substantial net contribution to the economy. In addition, the findings do not lend support to the view that they may be a cause of societal dissention, or a threat to Australian democratic institutions. On the contrary, the social attributes they possess indicate that they are well placed to settle successfully, and to make a substantial contribution to the development of Australian society.     

Deliberation and Ethnicity

Scholars typically suggest that deliberation, defined as communication guided by reason‐giving and inclusion, works best behind a veil of ignorance or when personal differences are bracketed. In this article we explore deliberation within ethnically diverse groups. We operationalize ethnicity in three ways: as an aspect of individual identity, as an identity that is made salient through priming, and as an enactment relative to interactions in particular situations. In this way, we can explore the applicability of our previous experimental results to ethnically diverse groups. We find similar results: within ethnically diverse groups, deliberation matters; participants are more likely to reconsider their positions when deliberating than when simply talking about politics. Ethnicity has no adverse effects on the quality of deliberation, indicating that bracketing has no significant impact. On the contrary, when conceptualized as a relational enactment, ethnicity is correlated with increased levels of reason‐giving and inclusion, and hence higher quality deliberation. This suggests deliberation works in multiethnic groups in much the same way as—if not better than—it does in homogeneous groups. Deliberation is a robust form of political communication that not only helps manage, but also embraces diverse subjective experiences as a part of the political process.