#bitesizeeconomics

For those of you missing Bite Size Economics, I have taken a pause (which might be some time, I have another series of daily posts in mind), but I will still be happy to respond to questions & comments related to the forty posts (thirty statements & ten examples).... For those who've not seen them, the posts are all collected under the hashtag: #BiteSizeEconomics#economics #politics #FinancialServices #markets #workers #IntellectualProperty #corporations #trade #tariffs #PoliticalEconomy

Bite size economics has reached 50 posts (and a coupe of extras) - forty statements & ten examples - and will now be taking a break. You can see the whole series under the hashtag & of course if you have Q.s or comments I'll still be responding. But for now, Bite Size Economics will not continue, but it may return in the future. #BiteSizeEconomics #economics #PoliticalEconomy #politics #economists

Bite Size Economics No.39 'High executive pay reflects a mistaken model of individuals' contribution to business success' High pay of business executives (related to the general workforce) emphasises the contribution of management & leadership to corporate success. But this misunderstands how organisations succeed; leadership *does* matter, but so do the effort, tacit knowledge & work of all workers. Managers have unjustly skewed rewards towards themselves. #BiteSizeEconomics #workers

Bite Size Economics - an aside - a joke: A statistician, an economist & an accountant go for a job & are asked to look at the firm's accounts & calculate the interest as a test. The statistician returns & says: you made £1,445,988.32 profit... The economist returns & says: well I'm pretty sure you *did* make a profit.... Before the accountant leaves they ask the panel: first, let me check; do you want to make a profit? #economics #accounting #tax#BiteSizeEconomics

Bite Size Economics No.38 'The demand for some goods & services rises as their price increases' The 'law' of supply & demand (see BSE 18) is not universal; status goods of limited supply, can see demand rise as prices rise; these are often referred to Veblen goods (referring to Thorstein Veblen's work on conspicuous consumption). Here, price is an indicator of status, prompting status hungry consumers to buy more of a good/service as its status is perceived to rise. #BiteSizeEconomics

Bite Size Economics No.37 'Economics is not value free' with its scientific pretension(s), economists often suggest economics is value free in its analysis, merely describing a world that exists... but, given its focus on optimal outcomes & efficiency (defined in mathematical terms), economics just smuggles in values that are built on the privileging of the capital (and employer) interest. The first move is to recognise economics' values & then ask if they are appropriate? #BiteSizeEconomics

Bite Size Economics - examples No.8 'Free' labour market don't exist (see BSE 31); from the use of contracts to govern working conditions, to property laws ensuring what workers produce remains the property of employers, laws pattern the relations between workers & employers. When economists seek to remove distortions, its usually only those laws that protect workers they're interested in, the laws that protect the interests of employers are seldom 'distorting'! #BiteSizeEconomics #workers

Bite Size Economics No. 34 'Inflation is experienced differently by different social groupings' Official inflation rates are calculated using a basket of goods & services, so where proportions of consumption differ between groups, the experience of inflation differs. Two clear distinctions are old & young and rich & poor; in each pair, the former often pay proportionally less for housing (due to ownership) while the latter spends more on food, for instance. #BiteSizeEconomics #inflation

Bite Size Economics No.31 'Too often economists see politics as interference in markets rather than facilitative of them' A key theme of Bite Size Economics (because I am a *political* economist, not an 'economist') is that politics is not separate from the economics of markets but rather underpins market's existence & shapes how they work. The myth of mainstream economics is that political 'interference' is sub-optimal. No, politics is necessary for markets to exist! #BiteSizeEconomics

Bite Size Economics No.28 'Too often economic analysis conflates aggregated demand with effective demand'. There's lots of talk of 'demand' in economics, but this is often presented as a society wide total needing to be increased. But, the rich spend their money differently (see BSE 5) & so JM Keynes stressed what was actually needed was 'effective demand'. If you want to increase demand money needs to get into the hands of those who spend it quickly/everyday. #BiteSizeEconomics #inequality

A reminder that Bite Size Economics' series of economic issues in summary, as well as the linked series of Bite Size Economics examples are all available under the hashtag: #BiteSizeEconomics#economics #politics #PoliticalEconomy #corporations #workers #technology #trade #inflation #tax #markets #development #inequality

Bite Size Economics - examples No.7 The issue of externalities in capitalism (BSE 20), is best exemplified by the impact of economic activity on the natural environment. From extractive industries to pollution, economic activity degrades the environment, until recently with no regard to the future costs of such activity (to be clear what has changed under capitalism is the extent of the externalities, pre-capitalist economies have also disregarded such costs). #BiteSizeEconomics #environment

Bite Size Economics no.20 'Capitalism has historically depended on un-costed externalities' For economists optimal economic arrangements occur when a market reflects *all* costs & these are paid for by buyers. But, its also clear in any market that there are many un-costed externalities (both costs & benefits) that effect others but are not part of the price mechanism (BSE 18). The most obvious is the un-costed impact on the environment of industrialisation! #BiteSizeEconomics #economics

Bite Size Economics no.18 'All economics starts with the relationship between supply & demand'. Economics is built on a simple argument: the price mechanism reflects supply & demand. While often radically *modified*, the crucial grounding of economics is that in an environment of scarcity (see BSE 15) when demand rises, prices rise unless supply also rises, and conversely if supply *does* rise that has a downward pressure on prices. From this, all else follows. #BIteSizeEconomics #economics