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Political Institutions, Economic Growth, and Democracy: The

the reality is that during the roughly 30-year period of trickle-down’s ascendance, the economy enjoyed only relatively weak growth, followed by the most disastrous economic crisis since the great depression. this is why during a recession policy-makers seek to stimulate demand in the hopes of raising consumption to levels that encourage new investments. modern progressives have attempted to articulate a model of economic growth that challenges trickle-down, they have underplayed the centrality of the middle class. intended long-run effect of these social protectionist policies is to allow poor countries to devote fewer of their resources to producing for wealthy-country consumption, thereby ensuring that they have more resources available to satisfy the needs of their own people.. democracies will ally with the united statesfourth, the global spread of democracy will advance american interests by creating more potential allies for the united states. investment drives economic growth, but sufficient overall levels of consumption are needed for the private sector to make those investments.., a dominant segment concerned with the long-term prospects for the society as a whole, and, of course, their place in it. demand matters for economic growth, the question is then, how do high inequality and the strength of the middle class impact demand? this provides the foundation for more inclusive economic institutions, which, in turn, promote growth.  the yugoslavian experiment has also been much studied, although it, of course, did not survive the tumult of the early 1990s. critics have offered four major challenges to the logic of the democratic peace: (a) there is no consensus on the causal mechanisms that keep democracies at peace: (b) the possibility that democracies may turn into nondemocracies means that even democracies operate according to realist principles; (c) the structural-institutional explanation of the democratic peace is flawed, not least because its logic also would predict that democracies are less likely to be involved in any wars, not just wars with other democracies; and (d) the normative explanation of the democratic peace is unpersuasive. first, democracies-especially liberal democracies-are more likely to have market economies, and market economies tend to produce economic growth over the long run.  and consumerism itself will almost surely diminish if economic democracy should come to prevail, since all sane people committed to a bringing about a just and humane world know that our planet cannot sustain ever more mindless consumption, and that this consumption does not make people happier anyway. zakaria cites hong kong under british rule as an example, but this experience of a liberal imperial power engaging in a rather benign authoritarian rule over a flourishing free-market economy has already ended and is unlikely to be repeated.: cap’s michele jawando on confirmation of judge neil gorsuch to supreme court. inequality and a squeezed middle class leads families to either consume less, lowering demand, or put in place short-term coping strategies, such as borrowing more, which has long-term implications for growth and stability. what is the explicit or implicit theory of change in your work? see rummel, "libertarianism and international violence," journal of conflict resolution, vol.

Growth and the Middle Class : Democracy Journal

  the fundamental problem is the dominance of our political system by the dominant economic class. of economic growth, however, do not typically include models for investigating the implications of changes in the strength of the middle class."34 the soviet union was unable to sustain its rapid growth; its economic failings ultimately caused the country to disintegrate in the throes of political and economic turmoil. economic democracy, the government is authorized to put in place environmental regulations that protect and enhance our ecosystem. please help improve this article by adding citations to reliable sources. key idea of media democracy is that the concentration of media ownership in recent decades in the hands of a few corporations and conglomerates has led to a narrowing of the range of voices and opinions being expressed in the mass media; to an increase in the commercialization of news and information; to a hollowing out of the news media’s ability to conduct investigative reporting and act as the public watchdog; and to an increase of emphasis on the bottom line, which prioritizes infotainment and celebrity news over informative discourse. beyond that, a strong middle class is a key factor in encouraging other national and societal conditions that lead to growth.. democracies never have faminesfourth, the united states should spread democracy because the citizens of democracies do not suffer from famines.(d) how does your model deal with problems of scale? in light of the absence of democratic and liberal traditions in many new democracies (particularly in the former soviet union and africa), it is remarkable that freedom continues to flourish to the extent that it does. the past several decades, the united states has undergone a remarkable transformation, with income growth stalling for the middle class while the incomes of those at the top continued to rise dramatically compared to the rest of the working population.  it’s not clear to me that the weaknesses of our form of “democracy” are due to its representative structure. holmes and melanie kirkpatrick, "freedom and growth," wall street journal, interactive edition, december 16, 1996. but progressives need to make a stronger case and argue: these policies are essential to creating and sustaining the middle class and thus fueling future growth.(e) what is the role of planning in your model? democracy, however, is grounded in creating a mass media system that favours a diversity of voices and opinions over ownership or consolidation, in an effort to eliminate bias in coverage. is also a problem when trying to blend the role of journalists and traditional journalism within the scope of a media democracy.(a) are there specific real-world examples or experiments you can point to that embody your model or system or exemplify important elements of your approach?

Why the United States Should Spread Democracy | Belfer Center for

without a clear explanation for how the middle class creates growth, the story is dismissed as nostalgia for a bygone era rather than a convincing case for how the modern, global economy works.        how do you envision the future course of economic poverty? promoting democracy makes more sense than this course, because the risks of democratization are not so high and uncontrollable that we should give up on attempts to spread democracy. get beyond capitalism to something like economic democracy, a committed political movement is necessary, which can contend for, and eventually achieve, the political power necessary to nationalize our banking system and grant democratic control and rights to workers in most enterprises.(n) what is the evolution of the workweek (hours worked, say, per year)? need a new economic system if we, our children, and our grandchildren are going to live in a just, humane, peaceful, and sustainable world. our conception of inequality is tied mostly to income, although there is a high degree of overlap between individuals with very high incomes and individuals with high net worth. thus, sifting through how disparate pieces of the economic evidence fit together to tell a cohesive story about how inequality and the middle class affect economic growth is a critical and timely task."35 some observers predict that the stresses of high rates of economic growth will cause political fragmentation in china. as we will demonstrate, the ways in which a strong middle class is important for economic growth are both interrelated and mutually reinforcing. this paper summarizes what we have learned from these conversations, alongside our analysis of the economic research in the academic arena. of course, military expenditures, at least in the united states, would be cut back dramatically.(i) do commodification, commercialization, and the commons surface in your analysis? economists differ in their specific answers to these questions, but the different theories point to five primary factors:The level of human capital and whether talent is encouraged to boost the economy’s productivity. these acts show a population can be informed through alternative media channels, and can adjust its behaviour accordingly.(a) to what degree would your proposed model require constitutional change? course we do want investment decisions that lead to productive innovations that enable people to lead fuller, richer, more secure, less anxious lives, lives that are in harmony with the rest of nature.[13] a diverse range of information providers is necessary so that viewers, readers and listeners receive a broad spectrum of information from varying sources that is not tightly controlled, biased and filtered.

Media democracy - Wikipedia

a 2005 study of economic growth in the 50 states by ohio state university professor mark partridge concluded, “a more vibrant middle class…increased long-run economic growth.” mill may have thought the impact of trust on economic growth incalculable, but modern researchers have sought to quantify it. 131: historically, of course, democracy has faced ideological challenges from marxism, fascism, and monarchism. it found that “a 10 percentage-point increase in trust increases the growth rate of gdp by 0. to say that the middle class is important to our economy may seem noncontroversial to most americans.  we need a new economic system if we, our children, and our grandchildren are going to live in a just, humane, peaceful, and sustainable world.  as the economist kenneth boulding has remarked, “only a madman or an economist could believe that exponential growth could go on forever in a finite word. otherwise we will remain on the defensive about whether our policies can create jobs and opportunity, and we’ll continue debating economic policy on trickle-down’s terms, which is a recipe for failure.[29] some forms of media democracy in practice (as citizen or alternative journalism) are challenging journalism's central tenants (objectivity and impartiality) by rejecting the idea that it is possible to tell a narrative without bias and, more to the point, that it is socially or morally preferable. the paper then turns to a rebuttal of four prominent recent arguments against the benefits of spreading democracy: (1) the claim that the democratic peace is a myth; (2) the argument that the process of democratization increases the risk of war; (3) arguments that democratic elections are harmful in societies that are not fully liberal; and (4) claims that "asian values" can undergird polities based on "soft authoritarianism" that are superior to liberal democracies. what is the priority of growth at the national and company levels? agree that human capital—knowledge, skills, and the health to put those to work—is a key component of growth. some studies find that disputes between democracies and nondemocracies are less likely to escalate to war that disputes between nondemocracies, see zeev maoz and nasrin abdolai, "regime types and international conflict, 1817-1976," journal of conflict resolution, vol."40 thus liberal democracy is the basis for long-term economic growth.  unemployment has gotten worse, hours worked have increased, labor intensity has increased, job security has declined, wages have remained stagnant, and inequality has skyrocketed.: the criticisms of the structural-institutional explanation of the democratic peace are not persuasive, for four reasons. strong middle class supports inclusive political and economic institutions, which underpin economic growth.[27] the feminist argument follows that the systematic subversion of private or subjective information excludes women's voices from the popular discourse.

The American Middle Class, Income Inequality, and the Strength of

  entrepreneurial capitalists have an honorable role to play in our socialist “next system. however inadequate trickle-down is as a model for generating economic growth, elected officials fall back on it because they can understand—and sell—the simplistic logic of cutting taxes and regulations to provide incentives to workers, businesses, and investors to be more productive. in that story, it isn’t the rich that lead the way to growth and prosperity.[12] the concept of "democratizing the media" has no real meaning within the terms of political discourse in western society. brief: rebuilding america’s infrastructurefrances fox piven: from protest to resistancemichael hudson on junk economics: highlights from our interviewtowards an integrated progressive agendafor reparations: a conversation with william a. foresighted and efficient government that comes from having a strong middle class creates favorable conditions for growth, while wasteful, corrupt, and unfair policies are a significant hindrance.: there are four reasons for rejecting claims that fears of democratic backsliding compel democracies to treat other democracies as they would treat any nondemocratic state.  they are incentivized to do so while using their resources efficiently, since income, both in the private and cooperative sector, is determined by a firm’s profitability. in addition, the korean and japanese cases show that democracy and growth can go hand in hand. let us generate our investment funds publicly via a capital-assets tax: a flat-rate property tax on all businesses. people are beginning to question whether the constant cutting of taxes and regulations really does produce unrivaled growth. counterproject embraces all of the emancipatory movements that are struggling to bring about a just, caring, and sustainable world in which all may flourish., democracy and peace: a more skeptical view," journal of peace research, vol. contribution of human capital to growth is not only about access to education: individuals also must be able to make use of their skills, matching talent to appropriate occupations. these conditions are likely to be met when an impartial court system exists and can require individuals to enforce contracts. biggest problem, of course, is the dominance of our economic and political systems by the wealthy—by the capitalist class. the spread of democracy can reduce refugee flows to the united states by removing the political sources of decisions to flee. for the argument that population growth is higher in authoritarian regimes, regardless of their level of wealth, see adam przeworski and fernando limongi, "democracy and development," paper presented to the nobel symposium on democracy's victory and crisis, uppsala university, sweden, august 27-30, 1994, pp.

Economic Democracy - The Next System Project

(p) what are the roles of economic growth and gdp as a measure of growth in your system? challenge trickle-down economics, progressives need to develop a compelling story that explains how to generate economic growth.  but that’s growth of a very different sort than is fostered by capitalism.’s the biggest problem or impediment for adoption of your model?  these shares need not be equal, but everyone’s income is tied directly to the performance of the firm; hence, there is incentive to work diligently and efficiently—and to see to it that your co-workers do the same. plattner and carl gershman, "democracy gets a bum rap," wall street journal, interactive edition, january 26, 1998. as mancur olson notes, "experience shows that relatively poor countries can grow extraordinarily rapidly when they have a strong dictator who happens to have unusually good economic policies, such growth lasts only for the ruling span of one or two dictators. instead of looking broadly at analyses of inequality and growth in other countries, we have looked at the evidence regarding the specific ways in which inequality and the strength of the middle class might affect economic growth in the u. blog comments powered by disqusthe latest from democracysign up for our email newsletter!  they then cut back on their investments, unemployment increases, demand drops: workers and capitalists alike suffer (although workers, of course, more than capitalists). what has largely been forgotten is that keynes recognized the importance of the middle class in creating sufficient demand to stimulate growth.[11] the ability to comprehend and scrutinize the connection between press and democracy is important because media has the power to tell a society’s stories and thereby influence thinking, beliefs and behaviour., democracies that embrace liberal principles of government are likely to create a stable foundation for long-term economic growth. sources of stress and conflict in industrial democracies of post-cold war europe," security studies, vol. we have identified four areas where literature points to ways that the strength of the middle class and the level of inequality affect economic growth and stability:A strong middle class promotes the development of human capital and a well-educated population.. democracies will not go to war with the united statesfirst, democracies will not go to war against the united states, provided, of course, that the united states remains a democracy. the spread of liberal democracy does not, however, mean that the united states should give the promotion of liberalism priority over the growth of electoral democracy.  of course, that’s a far cry from the billion cutoff for the forbes 400 (wealthiest americans), the richest .

Against Corruption: a collection of essays -

  the principal goal is to sketch a set of alternative institutions that are compatible with a just and sustainable economy that promotes human flourishing. is a similar group that promotes media democracy by encouraging open communication systems through online campaigns, events, and workshops.  of course, under capitalism, gdp growth is crucially important, since investors get skittish when gdp growth slackens. but most observers-including some east asians-would argue that these countries have curtailed political liberties (and sometimes bragged about it in the debate over "asian values") and are hardly a model of liberalization that the united states should encourage. evidence of the role of the middle class in economic growth., zakaria and kaplan overlook the extent to which the holding of elections is (a) an important way of removing authoritarian leaders, and (b) part of the process of encouraging the growth of liberal values. nevertheless, given the interrelationship and overlap between the two, it makes sense to include both in our thinking as we discuss causal relationships with macroeconomic performance.  of course, the invisible hand is supposed to bring prices down, but, as keynes pointed out long ago, business owners are reluctant to lower prices. article is written like a personal reflection or opinion essay that states a wikipedia editor's personal feelings about a topic. huntington, "democracy for the long haul," journal of democracy, vol. the price of capital, taxes, resource endowments, luck, chance, and other causes all have important roles to play.  i’m sympathetic to the left-keynesian/marxian view that the cold war—and the massive military expenditures it entailed—was in significant measure based on the fear of another great depression if our military demobilized, as it had after wwi, and the tacit awareness that a huge military budget was necessary to keep our labor and capital resources reasonably fully employed and our economy growing. strong middle class supports inclusive political and economic institutions, which underpin economic growth.. policies should aim to encourage the spread of liberal democracy. since even in relatively equal societies the non-wealthy are less likely to participate in politics than those with greater economic resources, inequality and a weak middle class have a profound impact on who is politically engaged.(b) are there other models that you see yourself aligned with or close to yours? course there are major issues that require international collaboration, above all poverty reduction and climate change.  of course, the members of democratic firms and democratic communities must embrace this option.

Nationalism, Ethnicity and Democracy: Contemporary

narang explains how states choose among four possible strategies for developing nuclear weapons. concentration of media outlets has been encouraged by government deregulation and neoliberal trade policies. a progressive economic argumentbecause of trickle-down’s dominance, progressives are still on the defensive about the tax and social policies essential to our economic vision: progressive taxation, the minimum wage, strong unions, and family leave, to name just a few. this has led to a reduction in the number of voices and opinions communicated to the public; to an increase in the commercialization of news and information; a reduction in investigative reporting; and an emphasis on infotainment and profitability over informative public discourse. singapore, malaysia, china, indonesia, and other asian economies achieved annual growth rates of 10% or higher in the 1980s and most of 1990s. but autocratic countries rarely can sustain these rates of growth for long. we the media: grassroots journalism by the people, for the people.  marx gave us a “model” of capitalism that remains, to this day, at least in my view, indispensable for grasping the workings of our current system.(a) if your system addresses environmental concerns, how do you conceptualize “the environment”? india, the non-profit media access project is a public interest law firm that advocates media democracy by "protect[ing] freedom of expression, promote[ing] universal and equitable access to media outlets and telecommunications services, and encourag[ing] vibrant public discourse on critical issues facing our society. valuesbeing middle class in a middle-class society—where most people have adequate financial resources and stability, but not enough to allow for a life of leisure—fosters attitudes and behaviors that are essential to building a healthy capitalist system. 37: joshua gordon, "asian growth needs democracy," wall street journal, interactive edition,, august 12, 1996. elections do not only remove unpopular authoritarians, however; they also encourage the development of liberal habits and principles such as freedom of speech and of the press. massive economic inequality that capitalism has generated has severely compromised our political system as well, making a mockery of the concept of “rule by the people. his 1936 book the general theory of employment, interest, and money, john maynard keynes described one of the core connections between the middle class and economic growth: that stable middle class consumption is needed to spur investment. researchers are increasingly finding that a strong middle class produces higher levels of growth. this means that when incomes are stagnant or declining for most people, there isn’t enough demand in the economy to encourage productive investment—unless this demand is debt-fueled. the connection between upbringing and environment and a person’s economic productivity can be taken too far, there is no doubt that some behaviors, achievements, and attitudes that promote economic growth come directly from a middle-class environment.

The Effect of Elections on Economic Growth: Results from a Natural

  (they are in position to create employment for all those coal miners and oil-field workers, who, if our species is to avoid ecological catastrophe, have been rendered redundant. these questions include: can the united states encourage the spread of democracy or must democracy always develop indigenously?[14] access to different sources of information prevents deliberate attempts at misinformation and allows the public to make their own judgments and form their own opinions.  this is a passive function, one which can readily be taken over by the state—as is the case in our basic model.  when you join a firm, you have the right to vote for members of a worker council, just as you have the right to vote for the city or town council governing your place of residence.. states measured the percentage of state residents who think “most people can be trusted”—ranging from about 10 percent on the low end in arkansas to more than 60 percent in new hampshire—and then analyzed the long-term economic growth of those states, controlling for a host of economic and political factors such as initial levels of education and income.  unlike the problematic “central planning” of the former soviet union and its eastern european counterparts, which attempted to set prices for all commodities as well as quotas for their production and the appropriate allocation of resources so as to fulfill the planning goals, economic democracy focuses on the strategic part of the economy—the allocation of the economic surplus, the new investments that will shape the future of the society.  if we assume low-paid, government-provided jobs of last resort paid fifteen dollars per hour, which is 30,000 dollars per year, the range within society (apart from a few outliers) would be 30,000-300,000 dollars—far from strict equality, but nothing remotely like what exists under contemporary capitalism. also: e-democracy, emergent democracy, e-government, open-source governance, and collaborative e-democracy. but—even after producing only relatively weak growth during good times and then causing the great recession—trickle-down remains standing.(d) what role do gender and gender issues play in your work? researchers find that this is not only because of the direct involvement of middle-class parents who, for example, make sure teachers are good and schools have adequate resources, but also because middle-class kids have positive attitudes toward achievement and engage in productive behaviors such as regularly attending class and doing homework. course, it must also be recognized that democratizing institutions will produce a just and sustainable society only if the majority of our citizens want to live in such a society. there is, of course, a rich literature on the relationship between inequality and growth. what are the principal means (policies, institutions, behaviors, whatever) through which each of your core goals is pursued?) (2013) "the palgrave international handbook of women and journalism" new york: palgrave macmillan. although many media outlets are privately owned entities, the journalists whom they employ are subject to intense training, as well as a strict code of ethics when reporting news and information to the public.  and, of course, they should be regulated so as to protect the health and safety of both consumers and producers.

economic democracy would not require constitutional change, although a reversal of citizens united and some of the other atrocious supreme court rulings of recent years would be an important step in weakening the current roadblocks to a just and sustainable future. lesson is clear: in order to spur sustainable economic growth, the middle class needs to be able to consume. and democracy is a liberal-democratic approach to media studies which advocates for reforming the mass media, strengthening public service broadcasting, and developing and participating in alternative media and citizen journalism in order to create a mass media system that informs and empowers all members of society, and enhances democratic values. see zeev maoz, domestic sources of global change (ann arbor: university of michigan press, 1996), chap. of course, some democracies do not adopt market economies and some autocracies do, but liberal democracies generally are more likely to pursue liberal economic policies. forsythe, "democracy, war, and covert action," journal of peace research, vol. david singer, "the war-proneness of democratic regimes, 1816-1965," jerusalem journal of international relations, vol. zakaria believes the united states should "encourage the gradual development of constitutional liberalism across the globe. new democracies also need external assistance to build up the journalistic infrastructure that will support a "marketplace of ideas" that can prevent manipulation of public opinion and nationalistic mythmaking.: budget and taxes middle east supreme court affordable care act russia. fox piven: from protest to resistancemichael hudson on junk economics: highlights from our interviewtowards an integrated progressive agendafor reparations: a conversation with william a.(e) what, specifically, is the role of community in your model? projected, in his famous essay, “economic possibilities for our grandchildren,” that by the year 2030, “what work remains to be done will be as widely shared as possible—three-hour shifts or a fifteen hour week. third argument's assertion that democratic government is incompatible with east asian values is belied by the relatively successful growth of democracy in japan, south korea, and, more recently, taiwan and the philippines. he argued that extremely unequal distributions of income depress demand and thus reduce growth. consequently, they call for a more equal distribution of economic, social, cultural, and information capital, which would lead to a more informed citizenry, as well as a more enlightened, representative political discourse. studies have investigated changes in the increasing tendency of modern mass media in the field of politics to blur and confuse the boundaries between journalism, entertainment, public relations and advertising. these arguments imply that electoral democracy may be undesirable in many countries and that the united states should not encourage its spread.

it has found that countries classified as "free" had annual 1980-1993 real per capita gross domestic product (gdp) (expressed in terms of purchasing power parities) growth rates of 2. is enhanced in economic democracy by extending “participatory liberty,” what i call “participatory autonomy,” to areas of economic life where it doesn’t exist under capitalism, namely at the workplace and in planning for our future. three basic institutions, markets for goods and services, workplace democracy, and social control of investment constitute the defining features of economic democracy, but there are other structures that should be part of our “next system.- belfer center for science and international affairs, harvard kennedy school quarterly journal: international security. but the modern economics profession has largely missed the boat on the middle class, hampering progressives’ ability to challenge trickle-down., is seen as a powerful medium for facilitating the growth of a media democracy as it offers participants, "a potential voice, a platform, and access to the means of production". 4; thomas risse-kappen, "democratic peace-warlike democracies: a social constructivist interpretation of the democratic peace," european journal of international relations, vol.  the counterproject embraces all of the emancipatory movements that are struggling to bring about a just, caring, and sustainable world in which all may flourish. bremer, "dangerous dyads: conditions affecting the likelihood of interstate war, 1816-1965," journal of conflict resolution, vol. panel data studies analyzing how inequality affects growth across a range of countries are unlikely to tell us much about this unique situation. strong middle class creates a stable source of demand for goods and services.  it was also necessary to have ready access to the world’s natural resources, which might be jeopardized if those anti-colonial, communist guerilla movement operatives almost everywhere in what was then called “the third world” were successful. we turn now to examining in detail the leading channels through which the middle class impacts economic growth. i use the term “environment,” i simply mean “non-human nature,” although, of course, other humans are a central part of one’s “environment” as well. strong middle class creates a stable source of demand for goods and services. culling from canonical economists and modern researchers, we can create a compelling theory of middle-class-led growth. modern economists have been caught up in free-market ideology, and their training blinds them to many of the channels that help a strong middle class produce growth. this paper explains the most current, empirically grounded economic evidence showing how income distribution affects the efficient functioning and growth potential of our economy.

Democracy hampering our growth essay

(f) does your work explore the links between large-scale environmental challenges (like climate change) and other economic and political issues? (see figure 1) families in the middle class have also pulled away from those at the bottom, but achieved these modest income gains only by working longer hours, increasing their labor supply—particularly among wives and mothers—and increasing household debts to maintain consumption as wages failed to keep pace with inflation.” and nyu economist william easterly’s research on international economic development has found that “relatively homogenous middle-class societies have more income and growth., we wish to make a note on our approach to the subject of the relationship of inequality and the strength of the middle class and u. recent important discussions of liberty include robert nozick, anarchy, state, and utopia (new york: basic books, 1974); berlin, four essays on liberty; and stephen holmes, passions and constraint: on the theory of liberal democracy (chicago: university of chicago press, 1995).(a) how do you envision the future course of income and wealth inequality? claims that the asian model is in a crisis and will be abandoned are probably overstated, just as asian leaders tended to overstate the virtues of their approach when their economies were flourishing. course people will want to know what other communities and regions are doing, to see what others are trying; what works, what doesn’t. supply-side thinkers argue that light tax and regulatory policies will lead to high investment, employment, and economic growth.: democracyalternative journalismalternative mediamedia issuessocial movementscommunity buildinghidden categories: wikipedia articles needing style editing from november 2016all articles needing style editingarticles needing additional references from november 2016all articles needing additional referencesarticles with weasel words from november 2016articles that may contain original research from november 2016all articles that may contain original researchall articles with specifically marked weasel-worded phrasesarticles with specifically marked weasel-worded phrases from november 2016.[8] cited in mancur olsen and hans lansberg, the no-growth society (new york: norton, 1964), 97. need to seize this opportunity by putting forward their own theory: that a strong middle class is the key to economic growth. 27-71; and rummel, "democracies are less warlike than other regimes," european journal of international relations, vol. the interaction and concurrence of rising inequality with the financial collapse and the great recession have, in particular, raised new issues about whether a weakened middle class and rising inequality should be part of our thinking about the drivers of economic growth. 19: many political and moral philosophers have addressed this issue and it would be impossible to do full justice to their arguments in this essay. for several decades, the soviet union's annual growth in gross national product (gnp) exceeded that of the united states, leading soviet premier nikita khrushchev to pronounce "we will bury you. but in fact, the opposite is the case: the middle class is the source of economic growth. challenge trickle-down effectively, progressives should counter with their own story about economic growth.

insofar as your work addresses the nature of the economy, how (if at all) do the following fit into the future you envision? in countries with a high illiteracy rate, for example, it would be next to impossible for average citizens to take part and fully engage with media, and adjust their behaviour accordingly in society. for progressives to win arguments about the economy, americans need to understand that a strong middle class leads to economic growth, and not the other way around. the paper we examine the ways that either category affects economic growth. profit motive plays a fundamental role in the day-to-day allocation of resources and consumer goods. 73: see the essays by layne, spiro, farber and gowa, and oren in brown, lynn-jones, and miller, eds. the point is to allow for healthy competition while blocking race-to-the-bottom destructive competition and at the same time acknowledging our human obligation to strive to eliminate poverty, environmental degradation, and other forms of social injustice everywhere.  investment decisions in the present shape fundamentally our collective future. joseph collins, for example, argues that: "wherever political rights for all citizens truly flourish, people will see to it that, in due course, they share in control over economic resources vital to their survival. briefly, what are the principal, core goals your model or system seeks to realize?  this will require a conscious mass movement embracing values and behaviors consonant with the aim of creating a just and sustainable world that promotes human flourishing. nevertheless, the variety of causal mechanisms and our incomplete understanding of many of them do not lead us to the conclusion that some human beings will not die. (see box on next page) although there are many conflicting views, there is ample evidence that inequality can, in fact, hurt growth under many circumstances. the same court system, independent judiciary, and respect for law and individual rights that are needed for a lasting democracy are also required for security of property and contract rights. the absence of democracy tends to lead to internal conflicts, ethnic strife, political oppression, and rapid population growth-all of which encourage the flight of refugees. political standard-bearers have to synthesize the message of middle-class-led growth and popularize it, just as roosevelt did with keynesian economics and reagan did with trickle-down. siverson and juliann emmons, "birds of a feather," journal of conflict resolution, vol. be clear, we do not assert that the middle class is the only factor affecting economic growth.

and it can take years to recover from deep recessions, slowing growth for long periods. but after surveying the available theories and evidence, it is difficult to point to anything else so central to so many causes of economic growth as a strong middle class. for discussions of liberty and liberalism, see "liberalism defined: the perils of complacency," the economist, december 21, 1996; isaiah berlin, "two concepts of liberty," in berlin, four essays on liberalism (london: oxford university press, 1969); michael doyle, "liberalism and world politics," american political science review, vol. and nichols, john (2002) our media, not theirs: the democratic struggle against corporate media. this view holds that greater liberty will allow the human spirit to flourish, thereby unleashing greater intellectual, artistic, and productive energies that will ultimately benefit all of humankind.. economists to learn their views about the mechanisms through which income inequality and the strength of the middle class affect economic growth and economic stability. if, in fact, there are specific ways that growth is affected, then it is reasonable to assume that there is a relationship overall. a second recent study confirms the connection between economic freedom and economic growth. if inequality stands in the way of those matches, then it is having a pernicious effect on our nation’s growth path.(c) how do racial, ethnic, and religious justice figure in your work? it is a prerequisite for robust entrepreneurship and innovation, a source of trust that greases social interactions and reduces transaction costs, a bastion of civic engagement that produces better governance, and a promoter of education and other long-term investments. 649-664; and weede, "some simple calculations on democracy and war involvement," journal of peace research, vol.  the massive economic inequality that capitalism has generated has severely compromised our political system as well, making a mockery of the concept of “rule by the people. 3-35; erich weede, "democracy and war involvement," journal of conflict resolution, vol.(b) does your model have anything to say about liberty and how it may or may not relate to the design of your model? there are distinct ways in which each can relate to the growth potential for an economy. the degree of economic localization and decentralization will be determined by the citizenry, the institutions of economic democracy would seem to encourage “glocalization. reduces transaction costs because less time and resources are spent verifying and policing.
the united states therefore should attempt to build support for liberal principles-many of which are enshrined in international human-rights treaties-as well as encouraging states to hold free and fair elections.(h) how do “leisure” activities—including volunteering, care-giving, continuing learning—figure in your work?  if economic growth should turn negative because overall consumption is contracting, no problem.  enterprises will be smaller, more localized, and less intensely competitive, so they will have neither the need nor the resources to launch the massive branding campaigns that inundate us today. the important connection, the one progressives rarely make, is that these changes in government have an impact on growth. this includes encouraging effective governance that supports broad-based economic growth through establishing secure property rights; investing in public goods and quasi-public goods, such as education, health, and infrastructure; and a level playing field, including transparent and accountable legal and regulatory structures. politicians typically see the middle class as something to create with the gains of economic growth. detail the evidence for these four points in the main pages of our paper, but briefly we encapsulate the economic research here. where on the spectrum from imminently practicable to purely speculative would you place your proposals? most economists, however, the concepts of “middle class” or even inequality have not had a prominent place in our thinking about how an economy grows. the core mechanisms of middle-class-led growth include stable demand, trust, good governance, and a set of virtuous, forward-looking capitalistic and proto-capitalistic behaviors. the judges for our essay competition on the next systemthe next system teach-in initiativebuilding community capacity for energy democracynational essay competition on the next systemnew systems: possibilities and proposalsnext system teach-ins. rummel, "power, genocide, and mass murder," journal of peace research, vol. so while media democracy in practice as alternative or citizen journalism may allow for greater diversity, these theorists argue that women's voices are framed within a masculine structure of objectivity and rationalist thinking. because a media democracy relies heavily on public journalism, alternative media, and citizen engagement, there is the potential that all information exchanged be treated as equal by the public. they are a source of innovation and an incubator for new democratic enterprises.  the point is to have international trade that encourages “healthy” competition—competition with respect to product or process innovation—but not “race-to-the-bottom” competition: competition over who will work for the lowest wages or what country will have the weakest environmental protections.(c) how does your model address questions of political and institutional power?

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