Daily Archives: December 7, 2010

The Sach’s Plan For The World Economy

Globe trotting economist Jeffrey Sachs from Columbia University always has an opinion about developmental economics.  He wrote an op-ed for the New York Times this morning that discusses how we must rebuild our society as a whole to tackle these individual problems.  I will post the piece here and critique it later.  It reads:

The best idea of 2010 came from the Himalayan mountain kingdom of Bhutan. Standing before world leaders in the United Nations General Assembly in September, Prime Minister Jigmi Thinley asked the decisive economic question of our time: “As all our people rise above the threats of basic survival, what will our collective endeavor be as a progressive society?”

He proposed an answer. Let us, he said, make “the conscious pursuit of happiness” a new pillar of global cooperation, the “ninth Millennium Development Goal.” Watching from the side of the hall, I was delighted as spontaneous cheers and applause rippled across the assembly for the first time in a long day of speeches.

The world, indeed, is long on worries and short on happiness. The problem, as Prime Minister Thinley incisively explained, is not really a shortage of material goods, even in a year of economic recession. The world is richer than ever before in history; that is certainly the case in the richest countries, even those in a cyclical downturn. Happiness, according to Bhutan’s great tradition of Himalayan Buddhism, comes not from the raw pursuit of income but, in Thinley’s words, from a “a judicious equilibrium between gains in material comfort and growth of the mind and spirit in a just and sustainable environment.”

On that score, the world is far from equilibrium. As much as economists try to restore equilibrium to aggregate supply and demand, or to the relative values of national currencies, the imbalances in our societies are much deeper than the quirks of macroeconomic aggregates. There is little that is judicious in our present balancing of material gain and the growth of mind and spirit. Still less has humanity yet demonstrated the capacity to balance production and environmental sustainability. The great challenge for 2011 and beyond is to find that new judicious equilibrium.

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Morning Memo: Tuesday, December 7

Good Morning!

This will be a shorter edition!

Top Global Issues:

Deal Announced On Bush Tax Cut Extensions

Assange Threatens To Release More Cables If Legal Action Is Taken Against Him

U.S., Japan, and South Korea Want China To Put More Pressure on North Korea

ECOWAS Hopes To Solve Ivory Coast Election Problem

Possible Deal At Cancun Climate Conference

Israel and Turkey Almost Mend Fences

Figures of Note:

Thumbnail image for GR2010081106717.gif

Opinions of Note:

Ezra Klein on the final Bush tax cut deal

Ross Douthat on changing culture

My First Thought: The New Left

My analysis over the last few days has primarily covered the Bush tax cut debate.  That seems odd because I mainly focus on foreign policy.  Actually, tax debates often cross over into the foreign policy sphere.  Also, this debate shows an interesting shift in how the left has a distinctly “American flavor.”  David Brooks brought this up in the debate that I posted last Friday.  What he indicates is that the American left is not a group of European socialists, but actually a group that supports private enterprise with stronger government regulation. These are not socialist ideas, they are just ideas about how the market should function.  In the tax cut debate, the left has shifted to extending some of the tax cuts, or at least only extending them temporarily, which is quite a shift from not wanting to extend them at all several months ago.  Even on healthcare, the debate was not about a single payer system, but rather a public option where private enterprise competes, or the final result a mandated insurance plan.  The Americanized left has a unique flavor that has some overlap with Republicans. If that is pointed out more, compromise might be possible.

Photo Credit: USA Today

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