Economics: Weekly Summary (May 26 - June 01, 2025)

The Origin of Wealth and Beliefs

So, I stumbled upon this intriguing piece by The Living Fossils about wealth and its origins. It's like they took a magnifying glass to the idea of wealth and how it's not just about money in the bank. They dive into how beliefs and expectations shape economic outcomes. Imagine wealth as this fragile thing that can just vanish if people suddenly change their minds about its value. It's like when everyone decides that Beanie Babies aren't worth anything anymore, and poof, the market crashes. The author talks about how fast information spreads these days, leading to these belief cascades that can make markets go haywire. It's a bit like a game of telephone, where the message gets distorted as it spreads, causing chaos.

Trump's Trade Policies: A Rollercoaster Ride

Now, let's talk about Dean Blundell and his take on Trump's trade policies. He paints a picture of Trump as this guy who talks big but then backs down, earning the nickname T.A.C.O. (Trump Always Chickens Out). It's like when someone keeps threatening to take away your dessert but never actually does it. Blundell highlights several instances where Trump threatened tariffs but then caved under pressure. It's a pattern of empty threats and reversals, kind of like a soap opera where the villain never really follows through.

In another post, Blundell discusses the tension between the US and Canada, with King Charles backing Canadian Prime Minister Mark Carney's defiance of Trump's economic threats. It's like a political chess game, with Canada considering banning Trump from the G7 summit. Meanwhile, Trump's controversial tax cut bill is facing defeat in the Senate. It's a bit like watching a high-stakes poker game where the players keep raising the stakes.

Tariff Math and Political Games

Political Calculations dives into Trump's "Liberation Day" tariff math, which seems more about politics than actual economics. The numbers don't quite add up, and it's like trying to solve a puzzle with missing pieces. The tariffs are supposed to apply to many countries, sending a message that there's no escape. It's like being caught in a web with no way out. The focus is on the trade deficit and tariff revenue, but the math just doesn't make sense.

Student Loan Crisis: A Growing Concern

Then there's Mike "Mish" Shedlock talking about the surge in student loan delinquencies. It's like a ticking time bomb for the economy, with the delinquency rate jumping from 0.7% to 8% in just the first quarter. Millions of Americans had their student-loan payments paused during the pandemic, and now they're back on the hook. It's like waking up from a dream to find yourself in a nightmare. The strain on personal finances is real, and it's creating fresh challenges for the broader economy. The student loan crisis has roots going back to George W. Bush’s Bankruptcy Reform Act of 2005, which made student loan debts not dischargeable in bankruptcy. It's like a ghost from the past haunting the present.

A Glimpse into the Past: Harvard's Economics Department

Irwin Collier takes us on a trip down memory lane with an annual report on Harvard's economics department from 1961-1962. It's like peeking into a time capsule, seeing how things were back then. The report details staff, new appointments, and the programs they offered. It's a reminder of how much has changed and yet how some things remain the same.

The UK's Economic Struggles

Nick Cohen paints a grim picture of the UK economy, struggling under the weight of Brexit and Covid. It's like watching a ship slowly sinking under the weight of its own cargo. The national debt is draining the economy, and international confidence in the UK's prospects is plummeting. Cohen talks about the need to rejoin the EU and raise taxes, but politically, it's a tough sell. It's like trying to convince someone to eat their vegetables when all they want is dessert.

Open Source Software: Setting Expectations

Filip Hráček dives into the world of open source software, discussing the different types and the expectations that come with them. It's like buying a DIY kit and realizing that the instructions aren't as clear as you'd hoped. Hráček emphasizes the importance of setting realistic expectations for open source projects. It's a reminder that transparency is key, much like in any relationship.

Corporations and Their Impact

Brett Scott takes a closer look at corporations and their systemic nature. It's like untangling a ball of yarn, trying to make sense of the entities that make up corporations. Scott discusses how they expand and their impact on our economic system. It's a bit like watching a game of Monopoly, where the players keep buying up properties and expanding their empires.

Data Harvesting and the Adtech Ecosystem

Doc Searls Weblog touches on the issue of data harvesting and the adtech ecosystem. It's like being watched by Big Brother, with every move tracked and analyzed. The impact of Web 2.0 and 2.1 on the internet is significant, and Searls also touches on the economy and the impact of Trump's policies. It's a reminder of how interconnected everything is, like a spider's web.

London's Nightlife: A Call for Transformation

Finally, Ian Mansfield talks about the London Nightlife Taskforce, established by the Mayor of London. It's like a call to arms for anyone interested in improving the city's nightlife. The taskforce aims to gather opinions and shape the future of London's nightlife, addressing challenges like the pandemic's impact, rising rents, staffing shortages, and licensing issues. It's a bit like a community potluck, where everyone brings something to the table.

These blog posts offer a fascinating glimpse into the world of economics, each with its own unique perspective. Whether it's the origins of wealth, the intricacies of trade policies, or the challenges facing the UK economy, there's something here for everyone. If you're curious to dive deeper, I highly recommend checking out the full posts from these insightful authors.