Today the Economic Affairs Committee of the House of Lords (of which Lord Skidelsky is a member) took evidence from George Osborne on the economy.
Watch the public evidence session here at the Parliament TV website:
Free Trade and Costly Love
| Monday, January 20, 2014
The World Trade Organization’s ministerial conference in Bali in December produced a modest package of encouragements to global trade. More broadly, the WTO’s multilateral approach has shown its worth by preventing a massive increase in trade barriers, unlike in 1929-1930, when protectionism helped deepen and broaden the Great Depression. But the main question – whether globalization is a good thing, and for whom – remains unanswered.
The essence of globalization – free trade – rests on the theory of comparative advantage, which views international trade as profitable even for a country that can produce every commodity more cheaply (in terms of labor or all resources) than any other country.
The textbook example given by the NobelContinue reading...
What Makes Us Human?
| Friday, January 10, 2014
Let’s start with an addled view of what it is to be human. According to economists, it is the ability to calculate. Their picture of the human is that of homo economicus ‘economic man’, a calculating machine who is always weighing up the costs and benefits of every course of action.
Economics is about ‘economizing’ –eliminating waste (including waste of time) so that all behaviour becomes efficiently purposive. The task of economics, according to economist Dennis Robertson, is to ‘economize on love, that scarce resource’. We need to economize on love, because we live in a world of scarcity, and cannot afford to spend too much time on wasteful activities such as love. Economics offers us a way of getting what we want without love.Continue reading...