Grand River Beaver - Painesville, Ohio. © Laszlo Iyles | Flickr
Arts & DesignCapitalismEssays

The (Sad) Story of (Banksy’s) Beaver

You may not be aware that the beaver, this unlucky, little, cute rodent, has suffered a long history of oppression and exploitation. On the American continent, the beaver, a traditional source of clothing and food for native people, became soon after the arrival of the European colonizers a main object of trade in the increasingly flourishing fur trade industry. Beaver pelt even led the English and the French to a brutal commercial war that ended up with the depletion, over-exploitation and over-starvation of beavers. Nonetheless, beaver hats remained quite a fashionable piece of clothing from 1550 to 1850.

As usual, colonization and exploitation were accompanied by a symbolic misrecognition that has lasted up to the present day. You may remember, for example, Jodie Foster’s 2011 movie, The Beaver, where a hand puppet named… The Beaver (I know, sorry!) turns from a cute, friendly fetish helping the main character, Walter, to recover from his severe depression, into a sort of manipulating and cruel incubus taking over his entire life. But there have been many precedents of this cultural devaluation of beavers.

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Dollar bill © Mattes | Wikimedia Commons
CapitalismEssays

The Trade Deficit: Beyond the Myth of Currency Manipulation

The US has run a massive trade deficit for over 30 years. In recent times, there has been a growing chorus of commentators who seek to place the blame on our trading partners, most notably China, just as in an earlier time others had targeted Japan and Germany. It is said that the problem stems not from our reduced international competitiveness, but rather from the manipulation of exchange rates by our more successful trading partners.

This claim is not based on any direct evidence, but rather on an inference derived from standard international trade theory, which predicts that free trade will automatically lead to balanced trade. From this particular theoretical perspective, our large and persistent large trade deficit must be rooted in some obstacles to free trade. The large surpluses of our trading partners such as China then make them natural candidates for our opprobrium. Of course, if the standard theory is incorrect, this line of inference collapses. I wish to argue that the standard theory is wrong, on both theoretical and empirical grounds, and that free trade does not automatically eliminate trade imbalances. On the contrary, free trade reflects international competitiveness, and persistent trade deficits are symptoms of persistent competitive weakness.

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Towards the Next Default Threat?
CapitalismMulti MediaVideo

Towards the Next Default Threat?

This week The New School’s Schwartz Center for Economic Policy Analysis (SCEPA) hosted three New School economists to discuss the economic and political fallout of the government shut down and the possibility of a default. Professors Teresa Ghilarducci, Rick McGahey and Christian Proaño discussed possible scenarios in case the United States would default on its debt, and the political economy of both the shutdown and the debt ceiling crisis. …

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Innovation Overload © Ximagination | Dreamstime.com
CapitalismEssays

Innovation Overload

Every era defines its heroes. Ours is currently fixated on the innovating entrepreneur, creating something new that everyone must have. This type breaks the mold, striking out alone, even leaving school to do so. He (and he is usually a he) is designated as brilliant, sometimes charismatic, sometimes argumentative, often solitary in his vision, though gathering a team to put his vision into practice. His skills are more technical than poetic, more digital than prosodic. Neither poetry, nor prose is, by definition, entrepreneurial.

It’s important to have such innovators, but they are not necessarily heroic and they are not good role models for the millions of people already in the labor market looking desperately for work in an era of job contraction. Nor are they a good role model for the thousands of high school and college graduates entering the labor market each year.

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