Jacob Hackler. Paul Pierson

Need a lot of government for advanced society to flourish. Because it exercises legitimate coercion. Protects freedom. Works cause it forces us to do stuff

Founding fathers knew thi
Need a lot of gov for advanced society to flourish. Works because limits freedom. Exercise legitimate coercion. All rich countries have big, active gov. Richest countries expand Gov the most and most expansion happens during great wealth creation. Makes prosperity, constrain actions, support other – areas of market failure.

Madison

46. Never was a gov without force. Make people due their duty. Calling on discard convention for constitution.

Lead charge for powerful national gov. Article of confederation, too weak. Argued continuously for strong fed, stronger than. State. Fought against skewed rep of senate.

58 super maj avoided. Super majorities reverses power from many to few

Adam Smith.
When regulation is in interest of worker, it is always just and equitable. Every tax is to the person who pays it a badge, not of slavery, but of Liberty. Worried that state will be over-beholden to large companies. Concentrated economic power skews crafting of government policy. Rich stay silent about negative aspects of concentrated wealth, complain only of other people. Large sustained profits evidence computation failing

About much for than redistribution. Zero sum but we got rich cause we got Gov kinda right. Mixed economy- free makers and constructive gov that rise above narrow private interest.

Why markets need gov. Markets most powerful way for decentralized forces to responds to individual needs and desires.
Need prop rights, freedom to exchange, Precint fraud, enforce contracts, system for good to move, system for funds to flow.

List of past gov supported research. GPS, lithium ion batteries, cell tech, LCD and touch screen display, internet connectivity.
National monetary policy, roads, courts. Radar, robotics, medicine, hypertension meds, integrated circuits, semiconductor, jet engines, nuclear power, radio and tv, national electrical grid, computers and internet, 18 of 25 break Thur in comp tech from 45-57 funded by people of us. 70% research $ from us magnetic memory, CPU, parallel processing our parents paid for. What are we buying. ?

This knowledge which apple built on is general and can be applied in many ways. No incentive for corp to invest in this kind of knowledge. Or to share it so that most creative folks employ it. This is role of gov

Also gov invests in knowledge of the people, education population and work force. Supports inventive people.

Market failure- under investment in edu, r&d, infrastructure. Creation of monopoly.

Wilson
Ruined 20th century. Built mixed economy. Capable fed needed to address
Fed Reserve, income tax-drop tariffs, Clayton Amit-trust, FTC for real competition.
More power to regulate economy, grow and adapt together.

Romney 1
Rugged individualism cheap talk to cover greed. Returned a big bonus. Saw prosperity at balance of stakeholders including local communities. Gov vital role even though he worried about unions.

US falling behind though underinvestment
Hidden so far as we live off past investments but can see it kids, shorter, less healthy, professing far more slowly academically.
New challenges- obesity and climate – we not in game.

R&D 3.6%. Should be 8-10%. Market failure. Won’t invest in gen K.stumble on some, won’t share. Roll of Gov to support and share. We once invested more that all others combined, funded the tech we living off now. 2% of GDP -0.7% now 9th in world. Without defense, 39th.

Infrastructure 7% down to 3.6%. Huge payback for companies, country and people.

1870 an hour of work produced $2 of GDP
2000 $34. 15x
Land labor capital – fixed for centuries

Robert zonow. zonow residual
Increased productivity, tech progress. Knowledge
1909-1949 12% growth from increased use of capital. 88% from information.
Not cause we smarter or owners more bold. Results from innovation.

1. Advance of k – research, ideas
2. Transmission of knowledge – education (1/3 of all productivity due to edu)
3. Application of knowledge – technology
4. Supportive environment political and social.
   Tom Jefferson. k like lighting another candle. Problem for companies, how to fully capture and advantage of general knowledge.

Socail product. Individual contributions important but need eco system of learning, policies and practices.

Institutions matter most in creating wealth.
Extractive gov – small number people control and use to create conditions they like produce slow growth and unequal societies
Inclusive gov – many involved, faster growth, more equal.

Public good. All or none. Can’t keep light from others. Must protect all, problem of freeloading.

Externality – negatives pollution. Positive vaccine helps others.

EPA – India air 3 years. 1970. Economy tripled yet pollution in air has fallen. 220,000 deaths. Savings outweighs cost by 30:1.

Lead additive in gas 50s-70s, drop in IQ and impulse control. Crime and pregnancy. Drops in lead level together.

Complexity experimental and feedback are limited. Health insurance very different from bread or axe. Many more oops for failures.

Thinking fast and slow. Bias and role in economy. Bad at risk, stuck in first choice, non rational fear. Opt in vs out out changes rate.
Myopic about risk. We over estimate our ability and underestimate risk. Meaning market not a good place to decide a lot seat belts. People not see the need. We made them. Lives saved. Fatalities per mile driven fell 80%.

Capitalism for the People. Diff tween companies. Vs system.

10 things we did to get rich. Good governance. Habit of good economy

1. Property rights
   Central bank
   3.Interior markets supported by means of transport
2. Regulation of international trade and finance.
3. Education and Rd
4. Public provide goods public health
5. Includes all society.
6. Independent political institutions
7. Autonomous public system including tax

1880s failures chapter 5
6 times 73-94

New Deal invested in south, roads, electricity, public health, bring poor up. Steered defense spending to poor south
Still rely on gov.
Mississippi $2.34 for each 1
South Carolina $5

Gov beyond business cycle. Individual life focus.

1900- 70 58 cloture motions
70-90
90s 35/year
2007-2014. 80/year

Spiral of silence. When no one else makes your point, most stop talking about.
Avoid liberal label helped individual candidates while hurting them all. As no one defended and attacks increased.

Mark Kushman
Constitutions hardball
Filibuster, shut down, mid decade reapportionment, restrict voting rights, block all appointments to cripple gov. Use debt ceiling to extract compromise – ransom.

Healthcare. We pay
1990 US and Swiss paying same part of GDP. Swiss went to control cost and cover all. 2010 all covered and 30% cheaper than US. $15 trillion – all our debt (Swiss one of expensive in Europe)
Holland most expensive Europe 12% GDP(we are 17%).
Average hospital brith cost $2400, US $10,000. C section-$15g US – $5g holland
Price varies all over the place. San Fran knee replacement is $22g, Fresno is $14g
Dems avoid issue, Repubs cut food stamps $45 billion in 5 years. We spend $45 billion in healthcare every 3 weeks.
IFHP list who pays what. We pay weigh more. We go hospital less, shorter stays pay way more. Not take on PRICE.
50% cost from sickest 5%
67% by sickest 10%
Info asymmetrical problem. Emergency problem no shopping. Normal price mech broken. Set negotiation with insurers and providers. Public sector contain prices better. Private plans grow 4% year, public 1%
Cost cause “so much better”. No evidence compared to other countries or within US most costly regions same outcomes as cheaper. Price not related to outcome.
In hospital death heart attack and stroke, right in middle. Amenable mortality – prevented by timely care – terrible. Last among wealthy countries. Hospital infection higher here.
Not malpractice. 1-2% of spending.
Texas and California capped payout, cost continue to rise just as fast.
Capitalist stealing.
Larger role for gov works in other countries.
Perception drug benefit – republicans took over and cut out cost containment (Medicare part D) 2000s

Republicans increased role of private plans within Medicare. Gaming reimbursement formula result in excess payemts for insurers. Cost go up. Republicans gut price control in Medicare ten criticized gov for not controlling cost – even though still better than privately

Private credit equal to GDP
Point when financialization depresses growth. Divert economy from growth to cash. S&P 2003-2012 54% growth to stock buy back, 37% dividend. 9% reinvestment.
Brain suck – best go for huge cash.
Makes money but cost of it increases. Cost of loans and investments as expensive as 1900.
Hard to regulate and easy to help Wall Street and stay hidden.

New Foundation Obama
2009 lobby for 3.5 billion (not campaign)
FIRE finance, insurance, energy
Leave no rich guy behind.
Cap and trade, mandatory private insurance came from Republicans resist.

Internet private and controlled. We got shitty connection. Most countries have higher speeds.
15 biggest profit college schools- 86% from fed loans. Expensive, poor results. Big lobby.

Gov needs cash. Taxation with representation- forming constitution

Senator Johnson slash IRS budget. 13/11 billion.
Less training, less agents, long waits, only help with basic service, collect 3 trillion. Return 1:6 invested to return. Audits at lowest levels in decades.
2013 – IRS went after conservative 501c, acted on own and went after both left and right. Hard to figure citizens united line. Attack kept irs from even looking.

Not fear leaving.
Healthcare and energy must stay
Even high tech – need supporting environment, people university laws

Low tax and lax regs is not what companies want. Want to make money. Access to educated people, amenities and necessities that attract them. Safe, courts, school clean environment. Take low tax too but social structure more important.
Texas avg income falling. Way behind mass. Used to 90% now 73%. Same amount of foreign born.

More voices make corp moderate. Help gov moderate.

Modern GOP
Less obstruction, less money, broader
More view on cash, pay for crashing gov

Role of Gov hideen
Talk. And dems silent
Tax breaks for saving and college
Reliance on private companies not perform as well cost most. We don’t see gov then

Net benefits enormous
Appropriately critical
gov sweats the big stuff. Decentralized markets don’t handle. Essential investments that private capital won’t make.