Latest news with #Abundance
Mint
13 hours ago
- Business
- Mint
Dani Rodrik: Abundance for consumers could still mean misery for workers
Next Story Dani Rodrik An economic vision of abundantly supplied markets isn't enough. People don't just derive an income from their vocations, but self-esteem and satisfaction too. We need policies that generate good jobs, even if we sacrifice some efficiency for it. The rise of far-right populists in the US and Europe has been linked to the job losses associated with trade shocks, automation and fiscal austerity. Gift this article The surest way for policy advocates to lose a progressive audience is to talk about the economy's supply side, the importance of incentives and the dangers of overregulation—ideas typically linked to conservative agendas. Ezra Klein and Derek Thompson's new book Abundance aims to change all that. The surest way for policy advocates to lose a progressive audience is to talk about the economy's supply side, the importance of incentives and the dangers of overregulation—ideas typically linked to conservative agendas. Ezra Klein and Derek Thompson's new book Abundance aims to change all that. As the authors point out, the left has traditionally focused on demand-side remedies. A key tenet of the New Deal in the US and social democracy in Europe is Keynesian management of aggregate demand to ensure full employment. Klein and Thompson rightly underscore that it is improvements in supply that are the source of broad-based posterity in the US and other advanced economies. As productivity rises, low- and middle-income families reap the benefits of cheaper and more varied and plentiful goods and services. However, increasingly, the US economy's ability to build things has been hobbled, the authors argue, by environmental, safety, labour and other regulations, and by complex and time-consuming local permitting rules. These rules and regulations may be well-meaning, but they can be also counterproductive. When governments and communities place obstacles in the way of investment and innovation, they undercut prosperity. Public transport lags behind, productivity in housing construction plummets and the deployment of renewables falters. The authors' vision of progress features energy from renewable sources and cheap, safe nuclear power; fresh water from desalination; fruits and vegetables from hyper-productive vertically stacked farms; meat produced in labs without slaughtering live animals; miracle drugs delivered by autonomous drones; and space-based factories meeting other needs without requiring any human workers. Since AI would greatly shorten the workweek, we'd all enjoy more vacation time without sacrificing our living standards. Keynesian social democracy no longer provides an adequate answer to the malaise experienced by workers. But Klein and Thompson's depiction of utopia reflects a vision that ultimately remains consumerist. Their focus is squarely on the abundance of goods and services that the economy generates—on how much we build, rather than on the builders. In this, they share a common blind spot with economists who, ever since Adam Smith, have emphasized that the ultimate end of production is consumption. But what gives meaning to our lives is not just the fruits of our labour, but also the work itself. When people are asked about well-being and life satisfaction, the work they do ranks at the top, along with contributions to their community and family bonds. For economists, a job provides income, but is otherwise a negative —a source of 'disutility.' For real people, a job is a source of pride, dignity and social recognition. Employment loss typically produces a reduction in individual well-being that is a multiple of the loss of income. The social effects magnify those costs. The rise of far-right populists in the US and Europe has been linked to the job losses associated with trade shocks, automation and fiscal austerity. Also Read: Populist policies can be myopic and also very hard to challenge Good jobs pay well, but also provide security, autonomy and a path to self-improvement. None of this is possible without high levels of productivity. A progressive focused on abundance of good jobs, rather than abundance of goods and services, would find plenty to agree with in this book. But there would also be many quibbles. Consider housing, one of Klein and Thompson's key examples. US productivity in housing construction has stagnated in recent years, in part because of safety regulations and union rules. But as one of the authors' interlocutors readily admits, fatalities and non-fatal injuries in construction have fallen dramatically in the US since the 1970s, thanks to many of these restrictive rules. That must surely count as an improvement in overall worker well- being, casting the productivity statistics in a somewhat different light. The authors' line of argument echoes economists' case for automation and free trade. These may have been efficient by conventional criteria, and they certainly helped produce an abundance of goods. But they also hurt many of our workers, leaving societies scarred and paving the way for right-wing populism. A good-jobs focus would make us more tolerant of regulations that sacrifice some efficiency for the sake of better labour-market outcomes, especially for non-college-educated workers. Ultimately, the real challenge for progressives is to devise an agenda that benefits workers as workers as much as in their role as consumers. This requires a distinctive approach to innovation, investment and regulation. Unions, worker representatives and collective bargaining must be viewed as essential components of abundance, rather than obstacles to it. Place-based strategies and local economic development coalitions are critical. Government must put its thumb on the scale to ensure innovation takes a worker-friendly direction. Advanced economies' most glaring failure has been their inability to deliver enough good jobs. Remedying this issue requires focusing on those who produce abundance, alongside abundance itself. ©2025/Project Syndicate The author is a professor of international political economy at Harvard Kennedy School, and the author of 'Straight Talk on Trade: Ideas for a Sane World Economy'. Topics You May Be Interested In Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Sydney Morning Herald
a day ago
- Business
- Sydney Morning Herald
Good ideas strangled by red tape: Treasurer to crack down on bureaucracy
Treasurer Jim Chalmers has admitted left-leaning governments are strangling their own good intentions with bureaucracy, arguing it is time to deliver supply side solutions to problems ranging from housing to renewable energy. In his first extended sit-down newspaper interview since May's federal election, Chalmers has demanded regulators overseeing everything from the banking sector to consumer law identify regulations that can be axed or simplified to reduce costs and increase the pace at which the economy can grow. Chalmers revealed the recently released book Abundance, which argues progressives need to re-think their overly rules-based approach to making the change they want, had been a wake-up call for the left of politics. The book, by American journalists Ezra Klein and Derek Thompson, was 'doing the rounds' of the ministry and senior MPs keen take on board the authors' insights which include trying to strip red tape from scientific research and housing construction. Chalmers said the upcoming productivity roundtable would tap into the ideas outlined in Abundance. Loading 'I mean the fascinating thing I found about Abundance was basically, even if you have quite a progressive outlook, we've got to stop getting in our own way,' he said. 'We want good things to happen, we've got to stop strangling good things from happening. I think that's very, very compelling for us. 'It's confronting for us because it's a kind of a – the term 'wake-up call' gets used a bit too easily – but there's a sense of at what point do we start getting in our own way, preventing good things from happening because of an abundance of good intentions.'
The Age
a day ago
- Business
- The Age
Good ideas strangled by red tape: Treasurer to crack down on bureaucracy
Treasurer Jim Chalmers has admitted left-leaning governments are strangling their own good intentions with bureaucracy, arguing it is time to deliver supply side solutions to problems ranging from housing to renewable energy. In his first extended sit-down newspaper interview since May's federal election, Chalmers has demanded regulators overseeing everything from the banking sector to consumer law identify regulations that can be axed or simplified to reduce costs and increase the pace at which the economy can grow. Chalmers revealed the recently released book Abundance, which argues progressives need to re-think their overly rules-based approach to making the change they want, had been a wake-up call for the left of politics. The book, by American journalists Ezra Klein and Derek Thompson, was 'doing the rounds' of the ministry and senior MPs keen take on board the authors' insights which include trying to strip red tape from scientific research and housing construction. Chalmers said the upcoming productivity roundtable would tap into the ideas outlined in Abundance. Loading 'I mean the fascinating thing I found about Abundance was basically, even if you have quite a progressive outlook, we've got to stop getting in our own way,' he said. 'We want good things to happen, we've got to stop strangling good things from happening. I think that's very, very compelling for us. 'It's confronting for us because it's a kind of a – the term 'wake-up call' gets used a bit too easily – but there's a sense of at what point do we start getting in our own way, preventing good things from happening because of an abundance of good intentions.'
Bloomberg
3 days ago
- Politics
- Bloomberg
The Case for an ‘Anti-Abundance' Agenda
Ezra Klein and Derek Thompson's new book, Abundance: How We Build a Better Future is a rare thing: a serious book on public policy that has also launched a movement. Senior Democratic politicians have taken to name-checking the book (and progressive activists to denouncing it). Abundance clubs have formed in cities across blue America. I think the argument is sound as far as it goes (though lots of other people such as Brink Lindsey, Steven Teles, Marc Andreessen and Philip K. Howard have been making a similar case for years). Progressive politicians have got in the way of progress by privileging interest groups over the common good and following procedure over achieving goals. The result is a shortage of desirable goods such as housing or infrastructure. What Klein and Thompson say about the United States is even more true of the United Kingdom, where the average house price is eight-and-a-bit times the median income compared with five-and-a-bit times in the US.
Yahoo
11-06-2025
- Politics
- Yahoo
Opinion: Will the ‘Abundance' agenda change politics?
Every few generations, a controversial book is published that sparks a dramatic shift in political trajectory. Upton Sinclair's 'The Jungle' (workplace and food safety reforms), Rachel Carson's 'Silent Spring' (environmental activism), and Milton and Rose Friedman's 'Free to Choose' (the Reagan Revolution) are a few examples. We suggest that 'Abundance,' authored by Ezra Klein and Derek Thompson, may be such a tome. 'Abundance' dissects how progressivism has crippled innovation, housing and essential development. The liberal authors artfully recommend a liberalism that protects and builds. Although causing a rift in the Democratic Party, could this signal a shift in the trajectory of national politics? COWLEY: Reminiscent of Princess Leia's plea to Obi-Wan Kenobi, the Abundance agenda is Democrats' 'only hope.' Government is getting in their way, stifled by layers of self-imposed regulatory burdens. Government should be judged by its outcomes, not the rigid principles it follows. Process has been prioritized over product. Stymied public projects are merely symptoms of a larger illness within the Democratic Party. They have countless militant factions, each fighting for their niche issue to be pervasively included in all facets of government. Environmental activists demand prairie dog protection from new transmission lines. Clean air advocates want mass transit to be carbon-neutral. Even Biden saw how his infrastructure spending bills didn't have a meaningful impact because a large chunk was gobbled up by red tape and compliance costs. Imposing restrictions on their own desired outcomes results in money spent, time wasted and little to show for it. They cannot be all things to all people. Leadership is sometimes saying no. Although not entirely the fault of Democrats, upward mobility and the American Dream are becoming relics of the past. In 1940, children had a 92% chance of out-earning their parents. By 1980, it fell to 50%. If we don't build and innovate, economic opportunity dwindles. AI is the next frontier for discovery and development. This global race is one that Americans cannot afford to lose, and both parties should be paying attention. PIGNANELLI: 'The formation of ideological factions within political parties — starting among intellectuals and writers — is a staple of American history.' — Jonathan Chait, The Atlantic I remember when Friedman's program promoting the free market aired on PBS (that's right) in January 1980, when President Jimmy Carter was beating Ronald Reagan 65%-31 %. In November, Reagan won in a landslide. Ideas have power. Abundance philosophy has existed for years. But this book compiled supportive documentation into a mass communication vehicle. The well-intentioned government programs established 50 years ago are crippling housing and the implementation of technological innovations. The authors argue that progressives are focused on process and litigation rather than achieving results that benefit society. Presidents Barack Obama and Joe Biden passed massive legislation to fund projects in healthcare, technology and alternative fuels that were impossible to initiate due to regulatory barriers. Severe left-wing opposition to abundance advocates underscores their fear of losing influence. Indeed, pundits predict a civil war within the Democratic Party between the far left and moderates eager for a new ideology. This demand for competent, efficient government can attract independents and moderate Republicans. America is amidst a major political realignment, and abundance is a new dynamic. We are witnessing history. Utah is well governed. But are there aspects of 'Abundance' that could be utilized to promote the objectives of our state officials? COWLEY: Utah understands that less is more when it comes to government. The Legislature is actively removing government barriers to innovation. For example, Utah's regulatory sandbox allows entrepreneurs to seek regulatory relief in their businesses while serving as laboratories of innovation. Look at the speed with which nuclear power is coming to Utah. Yet, more could be done on permitting and zoning to address Utah's significant housing shortage. PIGNANELLI: Gov. Spencer Cox appropriately notes that Utah has performed DOGE-like functions for years. Senate President Stuart Adams is promoting clean nuclear energy. Speaker Mike Schultz and lawmakers pursued a similar objective by mandating that the Utah Higher Education reallocate 10% of state funds to more productive uses. Despite public grumbling, insiders are grateful for the political protection that compels them to readjust resources. These goals also apply to conservatives to discourage their policies that inhibit housing and economic development at the local government level. Abundance should not be beholden to any political party, but rather a mindset that if government is used, it must be practical and not an interference. Will 'Abundance' be a campaign issue in the future? COWLEY: The Abundance agenda may help Democrat candidates become more appealing to Utah voters as the battle between progressives and moderates wages on. The real question is if they see the existential crisis befalling them and what will they do to avoid extinction. Staying the course doesn't have an upside. There is no drama-filled Twitter spat or blunder big enough that Trump could commit for the millions of Americans who voted for him to suddenly support the progressive agenda. Democrats need to loosen the stranglehold activists have on their party in order to rack up wins. PIGNANELLI: Abundance will be weaponized against moderate Democrats by left-wing progressives in internal battles. Democrats and Republicans in swing districts will advocate for this philosophy.
