Tem

NOV 30

• 3 scenarios: Mega Car Wash, Newport Smelter, Amazon HQ2

Galbraith, Dependency Effect

• Problem of intertemporal comparison: Who's to say that status pleasures aren't as important to us now as basic satisfactions were to our poor predecessors? It is repugnant to think that desires never lose their urgence, but maybe that's the case.

• Flaw in the view of someone who accepts this case: If our desires and wants are "contrived by the process of production", they are not original with us and therefore can't be "urgent" for us. The whole case for accommodating business production (through infrastructure, tax breaks, etc.) falls apart if the production system is creating the needs.

• Develops his view in Section 2: Not against consumer wants, but little doubt that many are contrived. Cites Keynes on insatiability of status needs. "the desire to get superior goods takes on a life of its own" "The urge to consume is fathered by the value system which emphaasizes the abilityt of the society to produce." (GDP)

• Section 3: advertising and salesmanship (no social media yet). It's a problem if the producer makes the goods and the desire for the goods. Note that is calling into question the idea that the consumer is really autonomous. "independently determined wants"

• Read Section 4.

Bruni & Zamagni, Chapter 1: What is Civil Economy?

• With globalization, we've stopped talking critically about capitalism and simply treat it like a fact of nature. There are still lots of critics, but they don't agree and leave is trapped, as if still in the womb.

• "Civil Economy" refers to the idea that we ought to assess the performance of the economy in relation to its effect on the "civitas" the citizens and community. (Historically connected to a "golden age" of thought in economics in the 18thc, 2nd half, but also, to earlier Roman concepts such as "felicitas publica".

• But civil economy isn't an alternative to capitalism. More of a "laboratory of thought" to help us tell a different story about relationship of capitalism to the common good. Not about the freedom of the individual from the society, but not anti-capitalism.

• Civil economy may involve different way of thinking about cooperation in capitalism. Current model: strong intentional cooperation within the firm, weak non-intentional cooperation outside the firm. But you can have different models. Italian familial capitalism (Olivetti, Ferrero (Nutella) planned industrial capitalism. (Lots of other examples not referenced here: managerial capitalism in Netherlands and many Scandinavian countries, which are also highly competitive economies.)

• The American Model: Anonymous markets, communities compete for businesses (Newport smelter). Financialization of the economy, finance capitalism: fr. Wiki: "Finance capitalism or financial capitalism is the subordination of processes of production to the accumulation of money profits in a financial system. Financial capitalism is thus a form of capitalism where the intermediation of saving to investment becomes a dominant function in the economy, with wider implications for the political process and social evolution: since the late 20th century it has become the predominant force in the global economy, whether in neoliberal or other form.

• "With the financialization of the economy has come the idea that speculative finance creates much more wealth, and far more quickly, than productive labour."14 "Exaltying the merits of themarket, narrow conformist hinking reached the conclusion that the world is what markets make it to be, and not citizen, not even governments, should have the power to correct it s course." 18.

• Need to bring demomcracy and capitalism into coherent, cooperative relationship. Arguably, global capitalism has weakened the power of nation states and communities. Competition of communities for business.

Bruni & Zamagni, Chapter 6: Why GDP is not enough?

• Thesis: We need additional measures of well-being to add to or replace our reliance on GDP. Analogy of multi-stage cycling races: There are many things to compete for in addition winning the overall race. GDP is just the sprinter's jersey. Promoting SWB is the overall goal.

• Historical discussion: Smith's Wealth of Nations not just about individual production and riches, but well-being. Examples of texts from Neopolitan School Genovesi: "Work for your own interest, of course, but don't make others miserable by your gain, work also for public happiness. ....p. 88. Adds "public happiness" to "liberty, fraternity, and equality"

• Critique of GDP: lumps good and bad economic activity together, some stats keepers even consider illegal economic activity. job creation predicts economic activity, but doesn't tell you about the quality of the jobs. "There are awful jobs." (smelt, smelt). GDP relatively new concept (1930s, against background of mercantilist approach which includes wealth of land, resources, labour, capital and stocks. (A stock is any supply of goods of any kind. Stock Market.)

• More critique of GDP: Arguably, "stocks" matter more than "flows" (GDP). Concern about environment is concern about stocks, migration is about human resources, a "stock", security is a stock. (In food studies, egronomists argue about soil and aquifer quality as a neglected stock.)