Assorted News from the economy front

Not exactly”new”, nor “news”, but worth taking note, considering that the press worldwide still sells austeritarianism as the remedy for all of our economic woes… This is the greatest scam of our times, and yet it is still wreaking havoc all over the globe.

Austerity: the greatest bait-and-switch in history
Mark Blyth, a delightfully sweary Scottish economist, talks for about an hour to Googlers about the stupidity of austerity as a means of recovering from recession, describing it in colorful, easy-to-grasp language.

IMF ‘to admit mistakes’ in handling Greek debt crisis and bailout
The International Monetary Fund is to admit that it has made serious mistakes in the handling of the sovereign debt crisis in Greece, according to internal reports due to be published later on Wednesday.
Documents presented to the Fund’s board last Friday will reveal that the Washington-based organisation underestimated the damage austerity would cause to the eurozone country, which has required two bailouts in the past three years.

Lowering Corporate Tax Rate Likely Won’t Help The Economy: Study
Apple and Google are among the many corporations to have argued that America’s high corporate tax rates discourage companies from bringing offshore profits — and hence jobs — back home to the United States. Yet after considering several decades of historical data on the U.S. corporate tax rate and economic growth, a new policy brief contends that there is no statistical relationship between the two factors.
The brief, by the Economic Policy Institute, a left-leaning think tank, finds that lowering the U.S. corporate income tax rate would not increase the country’s economic growth. Indeed, EPI goes as far as to say there is no evidence to support that the tax rate and economic growth are correlated at all.

Fake Shops Hide Northern Ireland’s Struggling Economy Ahead Of G8 Summit
City councils are attempting to hide the level of economic decay suffered in some Northern Ireland towns by painting fake storefronts on closed-down businesses in anticipation of the G8 economic summit this month.

Reinhart And Rogoff’s Pro-Austerity Research Now Even More Thoroughly Debunked By Studies
The Harvard economists have argued that mistakes and omissions in their influential research on debt and economic growth don’t change their ultimate austerity-justifying conclusion: That too much debt hurts growth.
But even this claim has now been disproved by two new studies, which suggest the opposite might in fact be true: Slow growth leads to higher debt, not the other way around.

How markets allow people to violate their moral codes
Here’s a press-release describing a paywalled paper in Science magazine, written by a pair of University of Bonn Economists. They conducted an experiment that showed how markets diffused responsibility for actions that ended up violating individual moral codes, so that people did things in market contexts that they had previously described as immoral when done individually.


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