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LPE Originals

Coordination Rights Beyond Nation States

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Conversations about progressive possibilities for economic policy and political economy often undertheorize or ignore international trade. The international economy is often seen as a free-for-all between countries, a space where powerful multinational firms are able to play governments off one another, resulting in a race to the bottom of domestic laws and regulations. Or, it is seen in terms of competition between economies with coherent rules, laws, and industries in the domestic sphere, but where Ricardian comparative advantage wins out internationally. Competition in international markets is seen as a flat state of nature, a “real” free market. By convincing ourselves that international trade and competition exists in a void–or accepting the assumption that it does–we ignore how law, policy, and regulation reshape the economy and commercial relationships to favor certain groups at the expense of others.
LPE Originals

Spread the Fed, Part I

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Central banking and finance in the US have a curiously ‘dialectical’ history – a history mirroring, in interesting ways, that of our federal union itself. Both histories reflect ambivalence about, and hence oscillation both toward and away from, collective agency and its political manifestation in centralized governance. Tracing these parallel trajectories can shed helpful light upon certain features of American monetary history, finance-regulatory tendencies, and of course public finance.

LPE Originals

The Hidden Shortages of the Market Economy

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If you think shortages—in goods like toilet paper, meat, and masks—came in with the pandemic, think again. Shortages are periods during which demand exceeds supply, and they’re an inescapable feature of all markets, all the time. When an investor bids up the price of Apple stock because none is available at current prices, that’s a…
LPE Originals

The Economics of Shortages

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The price of food increased 2.6% in April, the largest single-month increase since 1974, but food industry executives are insisting that the country has enough food. So why are prices going up? The explanation provided by the industry is that consumers are buying more than they need, creating shortages. But a shortage is not a…
LPE Originals

Historicizing Consumer Protection

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Learned Hand once described the task of the Federal Trade Commission as “discover[ing] and mak[ing] explicit those unexpressed standards of fair dealing which the conscience of the community may progressively develop.” In a previous post, I argued that moving consumer protection law beyond consumer sovereignty requires recovering this way of thinking, common among Progressives and…
LPE Originals

Consumer Protection after Consumer Sovereignty

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The consumer is at the center of the neoliberal’s moral universe. For both neoclassical welfarists and Hayekian moralists, the consumer is the Everyman. For, whatever else we do, we are all consumers. The “free market” has value because it forces the firms that control the process of production and distribution to compete for our business.…
LPE Originals

The Truth about Buybacks

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People claim to be worried about stock buybacks. In fact, the buybacks are a stand-in for what we can all see: business in this country works for wealthy shareholders, not workers, customers, or communities.
LPE Originals

In Praise of Blindspots

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Economic models produce blindspots, compressing qualitative differences into quantitative measures. Yet, this vice is also the source of their power.
LPE Originals

In Defense of Rent Control and Rent Caps (Part II of II)

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Yesterday, we posted the beginning of Duncan Kennedy’s testimony before the Massachusetts State Legislature’s Joint Committee on Housing. Below is the second half of the testimony. Claim 3: State provision of more section 8 certificates and subsidized affordable projects can resolve the housing crisis. More section 8s and more rent-restricted affordable subsidized units could in…
LPE Originals

In Defense of Rent Control and Rent Caps (Part I of II)

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The Massachusetts State Legislature’s Joint Committee on Housing is currently considering two bills that would revive rent control in the state. The first bill caps rent increases for not-owner-occupied residential housing at the CPI not to exceed 5%, with an income eligibility proviso. The second much more ambitious bill authorizes localities to choose among a…
LPE Originals

The Market Does Not Bind Us

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The central fallacy of the arguments against the Loan Shark Prevention Act, including Professor Fleming’s, is the limitation of regulation to merely attempting to steer the market. I argue here the purpose of regulation should instead be to carry out a democratic vision of how our society, including the economy, functions. The Loan Shark Prevention Act is an ideal start to pushing back against the decades of economic control by a select, mostly white and male, few.