It was economists’ prominence in the abolition movement that led Thomas Carlyle, in an 1849 essay, to defend slavery and ridicule economists as “rueful” thinkers, each of whom “finds the secret of this universe in ‘supply and demand,’ and reduces the duty of human governors to that of letting men alone.” Economists’ advocacy of freedom, even for slaves, so incensed Carlyle that he gave it, in the same essay, a nickname that — considering its provenance — economists should forever wear proudly: the “dismal science.”

Greeks are so pissed at banks, at bailouts, at austerity, at Greek Prime Minister Papandreou, and at the Greek parliament the majority simply does not care if a revolt is worse than further austerity measures. Greek citizens they have been lied to so often they probably cannot tell the difference between relatively good scenarios and disastrous ones if they tried. The one thing they do correctly understand is bailouts were not setup for the benefit of Greece, but rather the benefits of lenders. So what would you do if you were Greek? If you were wealthy and mobile you would pull your money out of Greek banks and leave. Otherwise, you would be at the point of telling the EU, ECB, and IMF “* You”. Portugal and Spain are in the same boat, just not as advanced.

As the German professor Stefan Homburg pointed out in this interview with the German daily Sueddeutsche Zeitung, EVERY rule that was designed to guarantee the financial stability of the eurozone has now been broken: the Maastricht limits to public debt, the ban on government-funding via the ECB, the no-bail-out provision.
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It is, of course, only a matter of time until Germany will lose its AAA-rating. Its obligations to the euro- project will undoubtedly finish it off fiscally. What’s the endgame?

Currency collapse, of course. Logically, in a system in which certain politically favoured entities are never supposed to default, the printing press is the last line of defence against the sustained onslaught of the laws of accounting and arithmetic.
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Back to Germany’s professor Homburg. Is there a way out for the common man?, the professor was asked by the interviewer. No, he said. Best to adopt a Buddhist attitude and learn how to be happy when poor.

Because status among humans is determined not only by income but also by traits such as political power, athletic prowess, military heroics, intellectual success, and good looks, equalizing incomes will intensify the importance of these non-pecuniary traits as sources of status.

I can’t imagine that the administration was pleased to hear Joe Biden’s admission of responsibility. Anyone who has read Suskind’s new book Confidence Men can get some useful insights as to the lack of clarity and the internal disarray surrounding economic policy within the Obama White House. But Republicans should not be overjoyed at the Vice President’s moment of clarity. If he is correct, the 2012 election will hinge on whether the Republican nominee has anything of substance to say on how best to promote recovery. Beyond a critique of Obamanomics and few well worn statements about taxes and regulations, has anyone heard anything rising to the level of a credible alternative?

Meaning is a fundamental human need. The act of politicization, of building any movement, is based on individual, and then group self-confidence. As Daniel Ellsberg said, “courage is contagious”. I’m reminded of how Howard Dean campaign worker and current law professor Zephyr Teachout characterized the early antiwar blogosphere and then-radical campaign of Dean, as church-like in their community-building elements. That’s what #OccupyWallStreet reminded me of. Even the general assemblies, where people would speak, and others would respond, had a rhythmic quality to them, similar to churches or synagogues I’ve attended.

…modern prosperity requires a vast system of social cooperation that is, and can only be, coordinated chiefly by market prices. Insofar as taxes distort these prices and thwart incentives, social cooperation is diminished.