nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2022‒07‒11
six papers chosen by
Karl Petrick
Western New England University

  1. Defashionization for Sustainability: From Conspicuous to Conscientious Consumption Breaking Business Cycles for Environmentalism By Julia M. Puaschunder
  2. Inclusive Leadership and the Economics of Diversity By Julia M. Puaschunder
  3. Long term world human population, lifespan and GDP growth model based on the in-caput-evolution theory and its impact on the carrying capacity By GANIO-MEGO, Joe
  4. CLIMATE SHOCKS AND RESILIENCE: EVIDENCE FROM RURAL ETHIOPIA By Tesfahun, Birhan S.; Kasie, A.; Upton, Joanna B.; Blom, Sylvia A.
  5. Social cohesion and inclusive social development in Latin America: A proposal for an era of uncertainties By Maldonado Valera, Carlos; Marinho, María Luisa; Robles, Claudia; Tromben, Varinia
  6. Who Killed the Phillips Curve? A Murder Mystery By David Ratner; Jae W. Sim

  1. By: Julia M. Puaschunder (The New School, New York, USA)
    Abstract: The time for defashionization has come. With the United Nations Conference of the Parties COP26 heralding the call for attention to sustainable fashion, society is ripe to question the whims of fashion’s impact on sustainability. Is the luxury moment of our time harmony with nature and practicing degrowth in recycling to cherish sustainability? Already in the historic political economy foundations of capitalism, workers are described to produce in order to consume. Classic business cycle theory and the creative entrepreneur portray a human-innate need for change and innovation as the spring feather of capitalism. In capitalist societies, there is a race for innovation of entrepreneurs and offering new products on a constant basis in order to evade the falling rate of profit. Capitalist constantly innovate in order to offer new products in markets and reap the highest rate of return and profit from consumers, who constantly want to change and have access to changing products. Producers of goods are in a competitive race for innovation and offering new products to ever-innovation-seeking consumers. The constant pressure to innovate and offer new products on the supply side and the constant production for a salary in order to consume the newest goods and services lie at the core of capitalist societies. Climate change and the Sustainable Development Goals but also the Green New Deals in the United States and Europe as well as the New Generation EU have formulated aspirational goals of sustainability. The circular economy and conscientious consumption have become the en vogue trends of our times. The novel Coronavirus crisis COVID-19 has also driven demand for rest, recovery and degrowth. COVID Long Haulers in particular appear to favor harmony with the environment in agrohoods driving trends of deurbanization but also biophilia trends that resemble nature in interior design and clean unprocessed nutrition. How is our classic understanding of business cycles’ reinvention drive and the innovative entrepreneurs’ creative destruction justified in light of sustainability pledges? Have we reached an age of luxury in the appreciation of environmentalism that forms a larger transcending Gestalt that benefits future generations? This article asks if the time is ripe for a defashionization of economic business cycles of reproduction and harmonize ecology with innovation. The paper also provides vivid examples of sustainability capitalism solutions, which prove that the Green New Deal aligns economic values with sustainability. The New Deals, degrowth, minimalism, biophilia and agrohoods are newest trends that appear to crowd out whims of ever-changing trends for rest in sustainable well-being.
    Keywords: Agrohoods, Biophilia, Business Cycle Theory, Capitalism, Capitalist societies, Change, Circular economy, Climate Change, Competition, COP26, Conscientious consumption, Consumption, Creative destruction, Defashionization, Degrowth, Demand, Ecology, Economics
    Date: 2022–03
  2. By: Julia M. Puaschunder (The New School, New York, USA)
    Abstract: This paper addresses COVID-19 and its widespread and lasting inequality impacts around the globe. The paper also introduces the idea of the post-COVID-19 era heralding a new Renaissance that breeds a climate of ethics of inclusion. The economic, ethical and behavioral insights foundations of a vision for ethics of inclusivity advancements are provided in this article and concrete examples how to enact ethical inclusive leadership in the 21st century. Inequality alleviation will become necessary in inclusive leadership domains of the healthcare sector and providing access to affordable medicine. The currently rising gap between finance performance and real-world economic constraints exacerbated inequality and therefore ethics of inclusive leadership may bridge the gap between financial wealth accumulation and real-world liquidity constraints. Education is a driver of positive change that can transform globally in a digitalized learning space and social justice attentive education, which informs tomorrow’s inclusive leadership. Digitalization in the 21st century holds enormous implicit inclusive leadership potential to diminishes unnoticed inequality constraints that demand for attention to be overcome. The most pressing concerns over climate change are emphasized in order to then introduce a novel strategy to distribute the prospective economic gains from a warming globe equally within society, around the world and over time. The rest of the paper then discusses innovative methods to address inequality, for instance, through the combined strengths of law and economics.
    Keywords: Climate Change, Climate Stabilization, Comparative Law and Economics
    Date: 2022–03
  3. By: GANIO-MEGO, Joe
    Abstract: The human species is a hybrid species that aggregates DNA based molecules that constitute the bodies of the species individuals and material that form the belongings of the species individuals. The molecules' aggregation is called life. Material aggregation is called technology. Both life and technology evolve for the sake of existing. The evolution of life is the evolution in-vivo. The human species has almost stopped evolving in-vivo. The dominant evolutionary mechanism of humans is now through technology. Technology evolves in the heads of humans. Therefore this way of evolving can be called in-caput. The in-caput-evolution transformed into equations yields a model of the world that can predict the factors of population, world GDPPC and human lifespan in the long term (from 2000 CE to 6000 CE). Evolution is a series of unlimited s-curves performing a reverse fall into negentropy. The current dominant s-curve is the one that started around 1850 CE. This s-curve can also be called the technarian age jump. The in-caput-evolution theory shows that we are now likely to have just peaked at the most dynamic phase of this s-curve. Things will therefore switch for the human species, going from accelerating growth to decelerating. That will bring about a change of attitude regarding many factors, while, in the meantime, it is very likely that a new s-curve will get ready to start.
    Date: 2022–05–25
  4. By: Tesfahun, Birhan S.; Kasie, A.; Upton, Joanna B.; Blom, Sylvia A.
    Abstract: Climate shock, specifically drought causes serious adverse effects on household welfare in rural Ethiopia. As a direct response to such shocks, resilience and related activities become the country’s key development agenda. In this context, we examine the relationship between climate shock and household consumption and then assess how household resilience influences this relationship. By combining historical observations of climate extremes and Ethiopian Socioeconomic survey datasets, we find that both short-term and long-term droughts are significantly associated with reduced consumption, and this relationship is moderated by resilience. We look at the resilience indicators that possibly mediate the effects of drought on either realized or probabilistic measures of consumption to understand what is associated with the ability to withstand or recover quickly from drought. We reframe the resilience as capacity approach and resilience as a normative condition approach that reflect two distinct ways of inferring resilience. In the resilience as capacity approach, we model realized consumption as a dependent variable and interaction terms between drought and hypothesized resilience indicators as joint explanatory variables. From our hypothesized resilience indicators, we find some indicators that are associated with attenuating the adverse effects of drought shock on realized household consumption. These include wealth index, informal transfer, and formal transfer indicators. In the resilience as a normative condition approach, we model probabilistic household consumption as a dependent variable and same interaction terms and find income diversification, livestock diversification, and agricultural asset indicators. This study has important implications for both research and policy. The adverse effects of droughts on consumption inform the investment need and policy design around resilience. The resilience indicators associated with attenuating the adverse effects of drought shock on realized and probabilistic consumption has also important implications. First, the nexus between drought and consumption via specific resilience indicators associated with attenuating the adverse effect of drought on consumption informs policy design around these indicators. Second, our interest variable framing to identify the specific resilience indicators associated with attenuating the adverse effects of drought on both realized and probabilistic household consumption provides insight to bridge the resilience as capacity and resilience as a normative condition approaches classic debate with the question of whether resilience is a right-hand or left-hand side variable
    Keywords: Consumer/Household Economics, Environmental Economics and Policy
    Date: 2021–10–01
  5. By: Maldonado Valera, Carlos; Marinho, María Luisa; Robles, Claudia; Tromben, Varinia
    Abstract: What holds societies together? What identifies people and motivates them to live together voluntarily without the need for constant external coercion or immediate self-interest? At times of great uncertainty, crises and existential challenges, social cohesion assumes a central role in the progress of Latin American and Caribbean countries towards sustainable development. This publication examines the concept of social cohesion and offers an equality-centred theoretical approximation, a measurement framework for 18 of the region’s countries and a policy agenda for social cohesion, against a backdrop defined by a pandemic, uncertainty and challenges such as rampant inequality, mistrust of institutions, rising social unrest and different manifestations of violence. The conclusions call for the strengthening of some of the enabling elements of social cohesion, from a medium- andlong-term perspective.
    Date: 2022–05–20
  6. By: David Ratner; Jae W. Sim
    Abstract: Is the Phillips curve dead? If so, who killed it? Conventional wisdom has it that the sound monetary policy since the 1980s not only conquered the Great Inflation, but also buried the Phillips curve itself. This paper provides an alternative explanation: labor market policies that have eroded worker bargaining power might have been the source of the demise of the Phillips curve. We develop what we call the "Kaleckian Phillips curve", the slope of which is determined by the bargaining power of trade unions. We show that a nearly 90 percent reduction in inflation volatility is possible even without any changes in monetary policy when the economy transitions from equal shares of power between workers and firms to a new balance in which firms dominate. In addition, we show that the decline of trade union power reduces the share of monopoly rents appropriated by workers, and thus helps explain the secular decline of labor share, and the rise of profit share. We provide time series and cross sectional evidence.
    Keywords: Bargaining power; Profits; Inflation dynamics
    JEL: E31 E32 E52
    Date: 2022–05–20

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