Economics: NeoClassical v Ecological

2009 Lamborghini Gallardo LP560 Spyder

2009 Lamborghini Gallardo LP560 Spyder

“All this matters because economists thought, wrote, and prescribed as if nature did not.”

J. R. McNeill, Something New Under the Sun.

“Global Warming is nonsense. Greenhouse gases mean growth, far as I can see. The Earth is one big resource, to exploit and consume, for the grand old party.”

L. J. Furman, Sunbathing In Siberia

Economics, according to Daly and Farley, in Ecological Economics, ISBN 1-55963-312-3, is “the science of allocation of scarce resources among alternative ends,” or  “what we want and what we have to give up to get it.”

Since the Great Depression economics has been about growth. Neo-Classical Economists measure the health of an economy by the growth of Gross Domestic Product, GDP, the sum of the goods an services produced in the market.

Ecological Economists think that the purpose of the economy is not simply to maximize and keep increasing the value of goods and services that are passed around. According to Robert Costanza, Director of the Gund Institute and Professor of Ecological Economics, University of Vermont, “The purpose of the economy should be to provide for the sustainable well-being of people.” Ecological Economics distinguishes growth from development. Growth, an increase in throughput, can waste resources. Development, a qualitative change for the better, results in realization of potential. Ecological Economists distinguish between costs and benefits, and subtract costs.  Rather than the Gross Domestic Product, GDP, Ecological Economists focus on the Genuine Progress Indicator, GPI,and distinguish economic goods from what Donella Meadows calls “economic bads.

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Obama and Holt on Health Care

President Obama

President Obama

Washington, DC, Nov. 7, 2009, 11:00 PM. The U. S. House of Representatives passed a health care bill that appears to profoundly change the system.

According to President Obama, (click here or  here)

Comprehensive health care reform can no longer wait. Rapidly escalating health care costs are crushing family, business, and government budgets. Employer-sponsored health insurance premiums have doubled in the last 9 years, …. This forces families to sit around the kitchen table to make impossible choices between paying rent or paying health premiums. … The United States spent approximately $2.2 trillion on health care in 2007, or $7,421 per person – nearly twice the average of other developed nations. Americans spend more on health care than on housing or food. If rapid health cost growth persists, the Congressional Budget Office estimates that by 2025, one out of every four dollars in our national economy will be tied up in the health system. This growing burden will limit other investments and priorities that are needed to grow our economy. Rising health care costs also affect our economic competitiveness in the global economy, as American companies compete against companies in other countries that have dramatically lower health care costs.

According to Rush Holt, D, NJ-12, (click here or here)

Rep. Rush Holt, D, NJ-12

Rep. Rush Holt, D, NJ-12

This bill would provide secure and stable health coverage regardless of whether you change jobs or are between jobs, ensure Americans will never be denied care if they get sick, and extend coverage to those not well served by the current system.

This is a historic vote and the furthest we have come toward providing affordable and quality health coverage to all Americans.

Once this bill becomes law, it immediately would eliminate cases where insurance benefits run out because of an expensive illness, would allow young adults to remain on their parents’ insurance through age 26, and would shrink the Medicare prescription doughnut hole.

The bill would strengthen and extend existing programs.  For example, those who have health insurance through their employers would benefit from caps on yearly out of pocket costs.  Under the legislation, Medicare would be intact, only better – recipients would benefit from free preventive care and better primary care.  Clickhere to read more about what the bill would do for you.

Reform would preserve the relationship between families and their doctors and shift to a focus on healthy outcomes and rewarding physicians for treating the whole patient.

Representative Rush Holt on Health Care Legislation

In an e-mail to supporters, Rush Holt, D, NJ-12 said,

Rep. Rush Holt, Ph.D.

Rep. Rush Holt, Ph.D.

I just now voted for the Affordable Health Care for America Act. I want you to know about this development and what the bill means for you. This bill would provide secure and stable health coverage regardless of whether you change jobs or are between jobs, ensure Americans will never be denied care if they get sick, and extend coverage to those not well served by the current system.

This is a historic vote and the furthest we have come toward providing affordable and quality health coverage to all Americans. Continue reading →

President Obama on Health Care Legislation and the Process

Washington, DC, Nov. 7, 11:15 p.m., the House of Representatives voted to pass their health insurance reform bill. Despite countless attempts over nearly a century, no chamber of Congress has ever before passed comprehensive health reform. This is history.

President Obama

President Obama

According to President Obama:
“… Each “yes” vote was a brave stand, backed up by countless hours of knocking on doors, outreach in town halls and town squares, millions of signatures, and hundreds of thousands of calls. You stood up. You spoke up. And you were heard.

So this is a night to celebrate — but not to rest. Those who voted for reform deserve our thanks, and the next phase of this fight has already begun.
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Systems Thinking on the Gross National Product

Robert F. Kennedy, in a speech at the University of Kansas, March 18, 1968,  said:

Robert F. Kennedy

Robert F. Kennedy

“Our Gross National Product, now, is over $800 billion dollars a year, but that Gross National Product – if we judge the United States of America by that – that Gross National Product counts air pollution and cigarette advertising, and ambulances to clear our highways of carnage. It counts special locks for our doors and the jails for the people who break them. It counts the destruction of the redwood and the loss of our natural wonder in chaotic sprawl. It counts napalm and counts nuclear warheads and armored cars for the police to fight the riots in our cities. It counts Whitman’s rifle and Speck’s knife, and the television programs which glorify violence in order to sell toys to our children. Yet the gross national product does not allow for the health of our children, the quality of their education or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages, the intelligence of our public debate or the integrity of our public officials. It measures neither our wit nor our courage, neither our wisdom nor our learning, neither our compassion nor our devotion to our country, it measures everything in short, except that which makes life worthwhile. And it can tell us everything about America except why we are proud that we are Americans.”

Thinking In Systems, by Donella H. Meadows

Thinking In Systems, by Donella H. Meadows

As Donella Meadows explains in Thinking In Systems, ISBN: 978-1-60358-055-7, “The GNP lumps together goods and bads. (If there are more car accidents and medical bills and repair bills, the GNP goes up.) It counts only marketed goods and services. (If all parents hired people to bring up their children, the GNP would go up.) … It measures effort rather than achievement, gross production and consumption rather than efficiency. New light bulbs that give the same light with one-eighth the electricity and that last ten times as long make the GNP go down.”

“GNP,” Professor Meadows said, “is a measure of throughput – flow of stuff made and purchased in a year – rather than capital stocks, the houses and cars and computers and stereos that are the source of real wealth and real pleasure. It could be argued that the best society would be one in which capital stocks can be maintained with the lowest possible throughput, rather than the highest.”

Navy Captures Surprised Pirates – John Lewis, Somali, Congress

mudvillegazette.com – 5/9/2009

Navy Captures Surprised Pirates

—

SOMEWHERE OFF THE SOMALI COAST : The pirates on board the two skiffs must have thought they had an easy target – but they were in for an unpleasant surprise. Their prey was actually a U.S. Navy vessel, transiting northward to join other U.S. Navy and coalition ships operating in the area. …

via Navy Captures Surprised Pirates – John Lewis, Somali, Congress.

BAGGU

BAGGU. – sturdy bags which fold into minuteness; not designed for hauling large loads over long distances; but kept within a go-bag – an easy way to have a reserve carrying capacity.

We’ve only bought the one  – and so haven’t subjected it to a testing-the-limits regimen.But ours has been holding up well..

Typhoon Mirinae satellite imagery; Philippines events

Typhoon Mirinae on 28 October. Speed 98 mph, gusts up to 121 mph. Via NOAA's OSEI program

Typhoon Mirinae on 28 October. Speed 98 mph, gusts up to 121 mph. Via NOAA's OSEI program

Alertnet advises Mirinae is likely to hit the Philippines on 30 October.

AlertNet main page.

Further information available at Tropical Storm Risk, [http://tropicalstormrisk.com]

See also:

PHILIPPINES: Flood victims grapple with LeptospirosisPHILIPPINES: Flood victims grapple with Leptospirosis

Additional information/images via Earth Snapshot:

20091027-mirinae-full

Philippines sends relief teams in path of typhoon Reuters, on Thu, 29 Oct 2009 05:02:27 -0700

Emergency and rescue teams were also sent to areas directly in the path of Typhoon Mirinae, including major rice-producing provinces north of Manila, …


Northwest pilots say they were distracted by laptops – washingtonpost.com

The Washington Post

has this report by Sholnn Freeman on the Northwest Pilots who missed their destination by about 150 miles. The plane was also out of contact (that is, not responding to radio hails for over an hour.  Northwest pilots say they were distracted by laptops. Interestingly, the pilots don’t allege fatigue as a factor; they claim

Aviation safety experts described the mishap as “stunning.”

to have been having a conversation about new scheduling rules and referring to their laptops.

Co-pilot Richard Cole of Salem, Ore., told National
Transportation Safety Board investigators that he was giving instructions about monthly crew scheduling procedures to the plane’s captain, Timothy Cheney of Gig Harbor, Wash. The NTSB said each pilot used the computers during the discussion. Northwest’s merger with Delta Air Lines last year has led to numerous policy changes for pilots.

“There is no reason that pilots not impaired by fatigue or other problems should allow themselves to become this distracted,” said Bill Voss, president of the nonprofit Flight Safety Foundation. “I think they are probably telling the truth, because you would not have been able to make up a better lie.”

WaPo, Northwest pilots say they were distracted by laptops

, Sholnn Freeman.

Death of Ivankov, Russian mobster, demonstrates difficulty of assessing conspiracies

Michael Schwirtz reported in the The New York Times of 13 October, the death of Vyacheslav K. Ivankov.

Vyacheslav K. Ivankov, a Russian crime boss who survived tangles with the K.G.B., the F.B.I. and other violent criminals in a bloody career that spanned decades, was laid to rest at a Moscow cemetery. Hundreds attended the funeral.

Mr. Ivankov died on Friday in a Moscow hospital from complications stemming from a gunshot wound he received apparently in an assassination attempt in July. He was 69. His death has set off fears of a mob war in Moscow like those that bloodied the streets of major Russian cities in the 1990s.

For a Departed Mobster, Wreaths and Roses but No Tears.

Photo by Andrei Stenin/Reuters. The coffin of Vyacheslav K. Ivankov carried at Vagankovskoe Cemetery in Moscow.

Photo by Andrei Stenin/Reuters. The coffin of Vyacheslav K. Ivankov carried at Vagankovskoe Cemetery in Moscow.

In Russian Mafia in America: Immigration, Culture, and Crime

, James O. Finckenauer and Elin J. Waring hypothesized that “Yaponchick,” while a serious criminal, was not the leader of a large, sophisticated criminal organization – but rather portrayed as such by United States government officials and the press.  (Previous citation to Google Books; excerpt published on PBS/FrontLine website linked here).

Finckenauer and Waring aren’t likely to have been in a position to have known that Ivankov would be extradited to Russia for murder and then been acquitted; one’s general impression of the Russian judicial system is that acquittals don’t generally happen when the government wants a conviction.

If Ivankov was sufficiently well-connected that the Russian government was willing to risk losing face being seen conspiring a weak case in order to extradite and then release him, it seems fair to infer that he was, in fact, fairly high up in Russian criminal-political circles.