Post-Modern/Post-Materialism

Materialism is worrying about making "end's meat"

Post-materialism would shift focus away from economic growth and would force future generations back into materialism

State, Labor Union, Captial Union

All three work as equal partners to craft public policy

Less strikes since labor/capital work together

Fell apart in wake of cheap foreign competition

State, Labor Union, and Capital Union

State dictates direction to Unions

State decides what products to invest in, only products that serve the state are produced

Low goods + stagnant demand = inflation

Grandfather of modern Liberalism

"Invisible Hand" Theory

Mao used Russia as a template

However, since little agriculture existed, each peasant produced a good in his back yard

Human capital to industrialize

Invisible Hand Model

Government should only focus on fighting inflation

Central Bank should be nonpolitical 

Blueprint to Communism

1. Central Planning Agency

2. Long-term economic goals

3. Exploit agriculture to industrialize

4. eventually produce capital goods

USSR ran out of agricultural supply and starved

Prodestantism 

Catholics are wrong - God does not want humans to suffer on earth

Accumulating wealth means that you have God's favor

Pre-ordination

Catholicism

Life should be difficult since the afterlife is great

Wealth accumulation is bad and comes at the expense of others/Zero-sum Game

Delayed gratification

Banks are owned and controlled by government

Government directs money to firms/picks winners

Only source of domestic financing is thru Gov.

Gov has complete control of money supply

Firms are funded by private banks

Sybiotic relationship between banks and firms

Both benefit from each other and sit on board of directors

No need to seek funds outside of banks, since friends will come through

Privately owned banks

However, government "directs" where money will go

Incentivize banks to listen to their suggestions by controlling their money supply

The only source of financing is through stocks and bonds

Stocks are small ownership shares sold by firm

Bonds are loans issued to firms with promise of repayment plus interest

One union can hold an entire economy hostage

Craft unions are selfish and bad for economies

Economy-level unions were beneficial to an economy

Unions are bad for an economy

They slow the efficiency of the free market

Lead to reduction in general welfare of a society

Two unions in the nation-

All private sector jobs represented by a union

All public sector jobs represented by a union

Unions are not divided by occupation but by industry

For example, steel union

Unions organized by profession/occupation

For example, teachers' union, plumber's union

Unions are divided up within the firm's employee's

Only really found in Japan

Father of Neo-Liberalism

"Invisible Hand"

Anti-Keynesian

Gov. only focus on fighting inflation

Political enemy of Mao's

loosened up communism

"Better to be in power than to be a communist"

Economic Development brings Middle Class

Middle Class eventually demands democracy

Economic Development is necessary for democratization

Brings changes to foundation of society

Democracy couldn't take hold in poor countries

Policy is more important than political system

As long as policy is civically minded it can aid economic development

Democracies can be bad, Authoritarians can be good

Authoritarians systems aren't good for economic development

No property rights, which leads to less investment incentives

Democracy is counterproductive in early days of economic development

Industrialization places funding demands on the state

Authoritarian systems can enact unpopular policies that benefit the country in the long-term

Government knows it is being held accountable so it skews facts to seem good and focus only on short-term solutions

Political business cycle

Governments only focus on what voters worry about

Public works projects for unemployment

Stimmy for growth

Inflation is hard for pols. to control