After a recent First Circuit decision, private creditors’ bankruptcy rights pose an existential threat to the only electric utility in Puerto Rico. As this outcome shows, we need a new approach to balancing the interests at stake in bankruptcy proceedings — one that protects private property, but not at the expense of undermining major public goods.
As neoliberal attacks on progressive taxation emptied public coffers, states and municipalities increasingly turned to fines and fees to generate revenue. More fundamentally, criminal punishment became a necessary correlate to a state that must enforce property rights against an ever-growing multitude.
The LPE Blog goes worldwide, bringing you some of our favorite global LPE and LPE-adjacent scholarship from 2024.
Recent calls for the use of boycotts, divestment, and economic sanctions against Israel may seem to stand in tension with another position widely held on the left: the condemnation of economic sanctions as neo-imperial warfare. However, we can resolve this tension by recovering a central insight from the period of anticolonial lawmaking.
In the resurgence of family fortunes in recent decades, regressive tax cuts tell only half the story. Just as important were trust law reforms that helped family dynasts protect their new gains in ways previously thought impossible.
American courts exercise authority beyond U.S. borders, including over foreign governments, all the time. To most observers, this is simply a consequence of increasing economic globalization and legal modernization, which untethered jurisdiction from territory. But this is a mistake. Law has not become divorced from territory but instead actively remapped it; it has not merely responded to globalization, but actively produced it.
How did Virginia School neoliberals transform the tax-collecting state into an engine of subtractive redistribution? How complete was their victory? And are they still winning in America today?
How did the American state come to be so extravagant in its recourse to public debt issuance, yet so selectively austere in its public spending choices? To answer this question, we need to understand how two rival schools of thought — Virginia school public choice and supply side economics — converged around the imperative to rein in the redistributive uses of public spending.
While governments in both the west and global south have become increasingly critical of Israel’s ongoing genocide in Gaza, these states have nearly all maintained normal trade relations with Israel. How should we understand this mismatch between political rhetoric and economic policy? And where might we look for signs of more material anti-imperial responses on the horizon?
Over the past decade, private financial markets – the domain of venture capital, private equity, and private credit funds – have grown to the point where they now dominate financial activity. This shift has undermined the protections afforded by existing securities laws and, because pensions are one of the largest contributors to these private funds, has subjected ordinary workers to the opaque, unregulated side of financial markets.
Boycotts and international sanctions both represent alternative means of lawmaking that challenge the liberal legal order. But while the disruptive potential of boycotts has largely been contained, international sanctions have evaded the constraints of international law. By looking to the social-movement roots of international sanctions, we might be able to imagine an alternative to today’s world of unfettered unilateral economic coercion.
The United States has long used economic coercion in hopes of achieving “economic peace” in Israel/Palestine. Yet its vision of this peace has notably shifted over time. While earlier sanctions punished those who disrupted the Israeli-Palestinian “peace process” or undermined neoliberal dreams of global commercial integration, Biden’s recent sanctions against West Bank settlers aim primarily to secure a peace deal between Israel and Saudi Arabia, relegating Palestinians to observer status.
Since the late 20th century, free trade has been defended primarily by neoliberals who cared little about social justice or democracy. However, a longer examination of free trade’s relationship to left-wing politics paints a very different picture. Recovering the history of those who defended free trade from the left may help us envision an alternative to the escalating economic nationalism we see today.
A US-based, VC-backed company is suing the Honduran Government for shutting down the firm’s private, libertarian city-state. The lawsuit highlights how Investor-State Dispute Settlement provisions, written into US trade agreements across the world, allow corporations to extract billions of dollars from governments in the developing world for passing any regulation that might impinge on their profit margins.
Earlier this month, Sam Bankman-Fried was found guilty of seven counts of fraud and conspiracy. His conviction should not, however, be seen as any kind of victory. For the past three years, SBF successfully exploited a financial regulatory system stuck in older ways of thinking and increasingly incapable of averting illicit finance in the platform economy. To prevent such predation in the future, LPE scholars must help accelerate the turn to proactive planning, including via the day-to-day, direct supervision of major financial institutions.
