Originally published on Economics from the Top Down Blair Fix Originally published on Economics from the Top Down. I have a confession. I’m a political economist by trade, but I spend most of my time reading outside my discipline. I read about physics, cosmology, biology … the list goes on. Basically, if it’s not political […]
Continue Reading
Originally published on Economics from the Top Down Blair Fix You can’t get the right answer when you ask the wrong question. This truism, I’ve come to believe, explains much of what is wrong with economics. When it comes to studying income, economists ask the wrong question. Economists, I argue, have mostly asked: is income […]
Continue Reading
Originally published on Economics from the Top Down Blair Fix I confess that I have a recurring nightmare. In it, I realize that everything I’ve ever written about economics is wrong. Neoclassical economics is not, as I’ve repeatedly claimed, a pile of bullshit. In this nightmare, neoclassical economics is correct. And as a strident critic […]
Continue Reading
Originally published on Economics from the Top Down Blair Fix Income, I’ve come to believe, is shaped largely by rank within a hierarchy. If you’re at the top of a hierarchy, you’ll earn a handsome sum. But if you’re at the bottom of a hierarchy, you’ll earn a pittance. As a hard-nosed scientist, I’m always […]
Continue Reading
Originally published at sbhager.com Sandy Hager THINKING ABOUT DEATH I’ve been thinking a lot about death recently. No, it’s not something that came about because of the global pandemic and my new daily ritual of checking graphs on COVID-19 death tolls around the world. It started a few years back when I became interested in […]
Continue Reading
Originally published on Economics from the Top Down Blair Fix I recently read David Graeber’s book Bullshit Jobs: A Theory. If you’re not familiar, David Graeber is the anthropologist who wrote Debt: The First 5000 Years, a seminal book on the history of money and credit. In Bullshit Jobs, Graeber takes aim at pointless work. […]
Continue Reading
Originally published on Economics from the Top Down Blair Fix In How Hierarchy Can Mediate the Returns to Education I examined the pay structure of the US military. I found that hierarchical rank is (by far) the strongest determinant of military pay. Here I want to show you that there is a regularity to military […]
Continue Reading
Originally published on Economics from the Top Down Blair Fix In The Social Environment as a Cause in Economics I argued that human behavior has two parts: Individual variation An environment that acts on this variation To illustrate these two parts, I used the example of the peppered moth. This species comes in two colors […]
Continue Reading
Originally published on Economics from the Top Down Blair Fix Have you noticed that economists are missing a word in their vocabulary? In microeconomics you’ll see words like ‘individual’, ‘utility’ and ‘maximize’. But you won’t see the word ‘environment’ anywhere. It seems that in microeconomics, individuals maximize their utility in a void. [1] This lobotomy […]
Continue Reading
Originally published on Economics from the Top Down Blair Fix Science is the quintessential public good. It’s an iterative process in which new knowledge builds on previous knowledge. For this process to work, science needs to be ‘open’. Both the results and methods of scientific research need to be freely available for all. The open […]
Continue Reading
Originally published on Economics from the Top Down Blair Fix Does productivity explain income? I asked this question in a previous post. My answer was a bombastic no. In this post, I’ll dig deeper into the reasons that productivity doesn’t explain income. I’ll focus on wages. The evidence Let’s start with the evidence trumpeted as […]
Continue Reading
Originally published on Economics from the Top Down Blair Fix Like many Canadians, I grew up with a faith in meritocracy. Do your best, I believed, and the world would reward you. In school, this idea seemed self-evidently true. I worked hard, and was rewarded with good grades and praise from teachers. And those students […]
Continue Reading
Originally published on Economics from the Top Down Blair Fix A revolution is underway around us and it’s called the digital. And it’s changing everything. More than 80% of wealth is now non-material. — Charles Foran in Just don’t say his name: the modern left on Karl Marx’s place in politics (41:30) Has wealth gone […]
Continue Reading
Originally published on Economics from the Top Down Blair Fix When it comes to earning income in a hierarchy, it’s not what you know that matters. It’s who you control. This was the provocative idea that I proposed in Part 2 of this series on an evolutionary theory of resource distribution. In this post, I […]
Continue Reading
Originally published on Economics from the Top Down Blair Fix A 25% chance. That’s the likelihood that when I tell someone I’m searching for a job, they’ll say: Remember, Blair … to land a job, it’s not what you know that matters. It’s who you know. OK, maybe I’m exaggerating this chance. Still, it’s an […]
Continue Reading
Originally published on Economics from the Top Down Blair Fix The biologist Theodosius Dobzhansky famously wrote that “nothing in biology makes sense except in the light of evolution”. I propose a corollary in economics: nothing in economics makes sense except in the light of human social evolution. [1] I explore here how the evolution of […]
Continue Reading
Originally published on Economics from the Top Down Blair Fix If you ask the average person what ‘science’ is, they’ll probably answer something like ‘it’s what we know about the world’. To the lay person, ‘science’ is a body of facts. To the trained scientist, however, ‘science’ means something different. It’s not a body of […]
Continue Reading
Originally published on Economics from the Top Down Blair Fix Do you think that the discipline of economics is a sham — an ideology masquerading as science? If so, here is a reading list for you. These 10 books have influenced my thinking over the years. Read them and join me in the journey of […]
Continue Reading
Originally published on Economics from the Top Down Blair Fix In Problems With Measuring Inequality, I discussed how inequality is an ambiguous concept. The problem, in short, is that a single metric can never capture every aspect of a distribution of income. Much like we cannot tell the shape of an object from its perimeter […]
Continue Reading
Originally published on Economics from the Top Down Blair Fix Did you hear the joke about the economists who tested their theory by defining it to be true? Oh, I forgot. It’s not a joke. It’s standard practice among mainstream economists. They propose that productivity explains income. And then they ‘test’ this idea by defining […]
Continue Reading