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marmar

(77,081 posts)
Mon Dec 2, 2013, 10:41 AM Dec 2013

Wall Street freak's response to the Pope's scathing critique of capitalism:

Pope Francis’s criticism of unfettered capitalism isn’t going down well on Wall Street or in Washington’s conservative think tanks — at least not if a post on the American Enterprise Institute’s blog is anything to go by.

James Pethokoukis, a blogger at AEI, is making much of a note by J.P. Morgan economist James Glassman. Although Glassman doesn’t mention the pontiff by name, Pethokoukis is convinced Glassman had the pope in mind when he penned a note defending the record of market economies in lifting people out of poverty.

AEI quotes Glassman as saying:

Those concerned about global poverty have more to be thankful today than to complain about. The commonly-heard complaints that today’s economic systems fail to address the plight of the poor ignore several fundamental facts.

Poverty is not a modern phenomenon. Second, the developed economies are still recovering from deep recessions and in time will reach their full potential. That is, of course, why central bank policies remain so stimulative. Those hurt by the recession will be restored as the developed economies continue to recover. And third, despite the cyclical problems of the developed economies, the average global living standard is at a record high—the highest known in the records compiled by economists and still climbing, thanks to the support from the developed economies.

In other words, market-oriented economic systems are doing more to cure global poverty than any other effort in the past.


Others might argue, though, that Glassman’s emphasis on the long-run record of market economies misses the forest for the trees. In his Apostolic Exhortation, Pope Francis warned against ideologies “which defend the absolute autonomy of the marketplace and financial speculation. .....................(more)

The complete piece is at: http://blogs.marketwatch.com/thetell/2013/12/02/j-p-morgan-economist-scolds-pope-francis-on-capitalism-and-poverty/


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Wall Street freak's response to the Pope's scathing critique of capitalism: (Original Post) marmar Dec 2013 OP
If J.P. Morgan is having a hissy fit, can it be a bad thing? Buns_of_Fire Dec 2013 #1
Glassman is a right wing hack and whore of the first order MrScorpio Dec 2013 #2
this is significant - not that he saying something new that no Pontiff has not said before Douglas Carpenter Dec 2013 #3
You will like this: "This Guy Looks Familiar" KoKo Dec 2013 #4
I did BelgianMadCow Dec 2013 #15
Sure Glassman, that is why every place they've taken their unfettered, predatory Capitalism, like sabrina 1 Dec 2013 #5
And the world MEDIAN income? raging moderate Dec 2013 #6
The world median income has gone up considerably muriel_volestrangler Dec 2013 #11
Well fuck Glassman and anyone like him. Enthusiast Dec 2013 #7
how does someone who was left homeless and died on the street "restored"? tk2kewl Dec 2013 #8
? bvar22 Dec 2013 #9
Thanks for the links! SalviaBlue Dec 2013 #13
You're welcome. bvar22 Dec 2013 #14
Every time I hear this argument ... 1StrongBlackMan Dec 2013 #10
Feedback is a central feature of life polynomial Dec 2013 #12

Buns_of_Fire

(17,181 posts)
1. If J.P. Morgan is having a hissy fit, can it be a bad thing?
Mon Dec 2, 2013, 10:56 AM
Dec 2013

Perhaps they're starting to realize that they've bled this particular ox one too many times, and the ox is starting to resent it.

MrScorpio

(73,631 posts)
2. Glassman is a right wing hack and whore of the first order
Mon Dec 2, 2013, 10:57 AM
Dec 2013

I'm not surprised that he's the attack dog summoned in this case.

Douglas Carpenter

(20,226 posts)
3. this is significant - not that he saying something new that no Pontiff has not said before
Mon Dec 2, 2013, 11:02 AM
Dec 2013

but the shift of emphasis and the attention he is drawing to the issue

sabrina 1

(62,325 posts)
5. Sure Glassman, that is why every place they've taken their unfettered, predatory Capitalism, like
Mon Dec 2, 2013, 11:06 AM
Dec 2013

South America and Africa and now Europe and the US, the middle class has been destroyed.

Farmers committing suicide because big Corps like Monsanto have destroyed their means of providing for their families in India, etc.

Looks like they are getting a little nervous that maybe the people are no longer ignorant of their greed and money hoarding.

raging moderate

(4,305 posts)
6. And the world MEDIAN income?
Mon Dec 2, 2013, 11:06 AM
Dec 2013

And the world gap between the highest incomes and the incomes of those who do most of the actual WORK to produce those incomes?
Of course, Mr. Glassman is surely aware that public education is the reason a poor kid like me would have learned the mathematical relationship between the average income and the median income. No wonder they hate teachers!

muriel_volestrangler

(101,321 posts)
11. The world median income has gone up considerably
Mon Dec 2, 2013, 02:00 PM
Dec 2013
What parts of the global income distribution registered the largest gains between 1988 and 2008? As the figure shows, it is indeed among the very top of the global income distribution and among the “emerging global middle class”, which includes more than a third of world population, that we find most significant increases in per capita income. The top 1% has seen its real income rise by more than 60% over those two decades. The largest increases however were registered around the median: 80% real increase at the median itself and some 70% around it. It is there, between the 50th and 60th percentile of the global income distribution that we find some 200 million Chinese, 90 million Indians, and about 30 million people each from Indonesia, Brazil and Egypt. These two groups—the global top 1% and the middle classes of the emerging market economies— are indeed the main winners of globalization.

The surprise is that those at the bottom third of the global income distribution have also made significant gains, with real incomes rising between more than 40% and almost 70%. The only exception is the poorest 5% of the population whose real incomes have remained the same. It is this income increase at the bottom of the global pyramid that has allowed the proportion of what the World Bank calls the absolute poor (people whose per capita income is less than 1.25 PPP dollars per day) to go down from 44% to 23% over approximately the same 20 years.

But the biggest loser (other than the very poorest 5%), or at least the “non-winner,” of globalization were those between the 75th and 90th percentile of the global income distribution whose real income gains were essentially nil. These people, who may be called a global upper-middle class, include many from former Communist countries and Latin America, as well as those citizens of rich countries whose incomes stagnated.

http://heymancenter.org/files/events/milanovic.pdf


Worth reading the paper at that link, to get an idea of global income distribution - for instance, "Meanwhile, the position of large European countries and the United States remained about the same, with median income recipients there in the 80s and 90s of global percentiles."
 

tk2kewl

(18,133 posts)
8. how does someone who was left homeless and died on the street "restored"?
Mon Dec 2, 2013, 12:12 PM
Dec 2013

and an average living standard or an average of any demographic is essentially statistically useless when there is uneven distribution of the measured trait.

Asshats!

bvar22

(39,909 posts)
9. ?
Mon Dec 2, 2013, 01:36 PM
Dec 2013
Billionaire wealth doubles since financial crisis
http://www.upi.com/blog/2013/11/12/Billionaire-wealth-doubles-since-financial-crisis/5011384268135/?spt=hts&or=12

The Top .01 Percent Reach New Heights
http://www.demos.org/blog/9/13/13/top-01-percent-reach-new-heights

US Wealthy Have Biggest Piece of Pie Ever Recorded
http://www.commondreams.org/headline/2013/09/11-6

Rates of unemployment for families earning less than $20,000 - have topped 21 percent
http://hosted.ap.org/dynamic/stories/U/US_JOBS_GAP_RICH_AND_POOR?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2013-09-16-08-11-23

Gallop: 20.4% of Americans now “going hungry”.
http://inplainsight.nbcnews.com/_news/2013/09/12/20460846-1-in-5-americans-struggling-to-put-food-on-the-table?lite

Study: "Trade" Deal Would Mean a Pay Cut for 90% of U.S. Workers
http://citizen.typepad.com/eyesontrade/2013/09/the-verdict-is-in-the-trans-pacific-partnership-tpp-a-sweeping-free-trade-deal-under-negotiation-with-11-pacific-rim-coun.html

Obama selects former Monsanto lobbyist to be his TPP chief agriculture negotiator
http://www.democraticunderground.com/10023662210

The Totally Unfair And Bitterly Uneven 'Recovery,' In 12 Charts – HuffPo
http://www.democraticunderground.com/10023662029

Wall Street will get away with massive wave of criminality of 2008 - Statute of Limitations
http://www.democraticunderground.com/10022516719

Income gap widest ever: 95 Percent of Recovery Income Gains Have Gone to the Top 1 Percent
http://www.slate.com/blogs/moneybox/2013/09/10/one_percent_recovery_95_percent_of_gains_have_gone_to_the_top_one_percent.html

Older Workers:.Set Back by Recession, and Shut Out of Rebound
http://www.nytimes.com/2013/08/27/booming/for-laid-off-older-workers-age-bias-is-pervasive.html?smid=tw-share&_r=3&

40% Of Americans Now Make Less Than 1968 Minimum Wage
http://seeingtheforest.com/40-of-americans-now-make-less-than-1968-minimum-wage/

50% of Working Americans NOW make less than $27,000/Yr.
http://www.democraticunderground.com/10023308914

Daily CEO Pay Now Exceeds the Average Worker's Annual Salary –
http://thecontributor.com/daily-ceo-pay-now-exceeds-us-workers-annual-salary

 

1StrongBlackMan

(31,849 posts)
10. Every time I hear this argument ...
Mon Dec 2, 2013, 01:55 PM
Dec 2013

I am transported to an "Ethics" course I took in Grad School. The specific issue was a discussion of the "effects of globalization on '3rd world' nations."

As expected, the "capitalists" and right wingers in the class raised the it "lifts them out of poverty" argument. After a while, I asked the simple question: "At what cost? Is it 'ethical' to pursue an economic/business model, wherein one knows has/will force others to all but abandons centuries old cultural norms, in favor of the pursuit of a commodity that prior to your involvement, they had no, or little, use for?"

One student responded: "This is about business. In globalization, each of the poor in these nations has access to money to buy the things they need and want."

To which I responded: "True ... But prior to globalization, the poor of these nations had the land to feed them and a culture to provide them with the things they needed and wanted, neither of which required coinage."

(I was immediately written off by most in the class.)

polynomial

(750 posts)
12. Feedback is a central feature of life
Mon Dec 2, 2013, 02:15 PM
Dec 2013

Many intellectuals and academics recognize America with its potential essentially has a population dynamics that is in an epidemic of education trending to stupidity. Just think of the daily digital television programming in the dangerous free market.

Realizing the mounting debt that young people pile up in trillions of dollars owed for an education that would soon become obsolete is insane. That begs the question of what to do about it. There are advocates like Thom Hartmann that occasionally suggest education should be free to include college education. I agree. However getting over the hurtle to change the healthcare fundamentals is one thing and be sure the next would be education.

Could you ever imagine everyone having the ability to go to college to understand or to be that person who is called an undergraduate. Even saying that sounds so very silly but is common rhetoric to say someone is an undergraduate. Even if you have a four year degree your still under the bus hanging on for dear life till you master something. Our system is so weird that many know a huge change in the educational system is needed. Please everyone has the ability to go to school, but few have the ability teach. That’s the problem. Way too many are in the educational system that do not know how to teach.

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