Thursday, 21 November 2013

Four fallacies of the second great depression – News and views for Thursday 21 November

Some news and views noted along the way.
  • Why Is Antarctica’s Sea Ice Growing As Temperatures Rise? – “Why are the Arctic and Antarctic such polar opposites? Climate change deniers have pounced upon the unexpected divergence to argue that the planet’s temperature isn’t actually rising. But new research suggests that a different mechanism—unrelated to climate change—is responsible for the ice growth. The real answer, says University of Washington oceanographer Jinlun Zhang, can be found blowing in the wind.
  • Why the future looks sluggish – “The glut of savings in leading economies has become a constraint on demand.”
  • What Does the Book Business Look Like on the Inside? - “Insanity.”
  • Four Fallacies of the Second Great Depression – “The national debt is a burden on future generations. This fallacy is repeated so often that it has entered the collective unconscious. The argument is that if the current generation spends more than it earns, the next generation will be forced to earn more than it spends to pay for it.But this ignores the fact that holders of the very same debt will be among the supposedly burdened future generations. Suppose my children have to pay off the debt to you that I incurred. They will be worse off. But you will be better off. This may be bad for the distribution of wealth and income, because it will enrich the creditor at the expense of the debtor, but there will be no net burden on future generations.”
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