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This paper uses the Luxembourg Income Study (LIS) to analyze the dimension of the middle class in various Latin American countries. One of its major findings is that during the first decade of this century, the size of the middle class in Latin America did not appear to depend on demographic factors. A second finding is that, in contrast with the majority of developed countries, government income and expenditure policies had little influence on increasing the size of the middle class in the Latin American countries in the sample. Finally, as in the developed world, labor market factors have little influence on the size of the middle class in Latin America, the main exceptions being Brazil and Mexico, where employment seems to increase the size of the middle class. [ABSTRACT FROM AUTHOR]

This paper updates and extends my earlier work on how the middle class fares throughout the world based on the microdata sets that comprise the Luxembourg Income Study (LIS). Wave #6 LIS data, recently released and centered around 2004, provides an opportunity to assess what has happened to the size of the middle class around the world in the early 2000s. In contrast to the 1980s and 1990s, there was no noticeable decline in the middle class during the early 2000s. The paper provides further evidence that the size of the middle class in each nation depends mainly on government tax and spending policies. In particular, it shows the key role played by family allowances and paid family leave in supporting a national middle class. [ABSTRACT FROM AUTHOR]

This paper argues that interest on consumer debt must be taken into account when measuring poverty and inequality. These interest payments cannot be used to support household living standards. This makes middle- and low-income households worse off. Recent increases in consumer debt means that this deterioration in living standards is not captured by conventional government statistics. Using the Survey of Consumer Finances, we make estimates of poverty and inequality that take into account rising interest payments on consumer debt and discuss some of the implications of these estimates. [ABSTRACT FROM AUTHOR]

Our previous research argued that interest payments on consumer debt should be subtracted from household income to measure poverty. We estimated 4 million additional poor Americans in 2007, calling them "debt poor." This paper finds that the debt poor are somewhat like the poor (they are unlikely to own a home or have private health insurance), somewhat like middle-class households (race), and in-between in other ways (education levels). Debt poor households were likely middle class once, having access to considerable consumer credit; but following a loss of income, their large debt burden put their living standard below their poverty threshold. [ABSTRACT FROM AUTHOR]

Purpose – This paper seeks compare the current financial and economic problems with the problems facing the world economy in the 1930s. Design/methodology/approach – The paper argues that the Great Depression and the current problems have similar causes – excessive speculation, leading to a financial collapse that then results in an economic collapse. It then looks at the work of John Maynard Keynes to help solve the current problems. Findings – The paper advocates a large public works program plus a number of policies to help US homeowners and thereby stabilize housing prices. Originality/value – The paper provides a way out of the current economic and financial problems, and a way to avoid another Great Depression. [ABSTRACT FROM AUTHOR]

This article discusses the economic analysis of crime. Neoclassical approaches to the analysis of crime and punishment, which attempt to quantify punishment as an economically measurable deterrent to crime, are considered as they relate to post-keynsian understandings of the issue. Questions of consumption driven choices in dealing with crime are addressed. The comparative importance of deterrence and competing economic opportunities in the determination of the crime rate is analysed. The possibility that uncertainty plays a greater role than risk in determining criminality is considered in light of the hypothesis that social definitions of rationality play a greater role than individual approaches to the issue.

Can we get grade inflation under control? Jawboning doesn't seem to work. But economic policy may offer some other lessons. [ABSTRACT FROM AUTHOR]

This paper sets forth some Post Keynesian policy proposals concerning education. It first reviews U.S. education problems and the neoclassical solution to them, which relies on increasing competition and consumer choice. The paper then reviews the empirical literature on these topics, and concludes by setting forth a Post Keynesian approach to the U.S. education problems that is supported by these empirical findings. This approach would focus more on providing sufficient income to children of low-income households as well as additional educational spending. It would reject tracking students, and support standards and funding at larger levels of government than the local level. [ABSTRACT FROM AUTHOR]

The author draws key distinctions between current neoclassical economics and post-Keynesian economics, in which the exercise of power plays an integral role. In contrast to the traditional view, in which firms respond to or are controlled by the market, post-Keynesian economists see firms seeking to control the market and frequently succeeding. When firms' economic power is recognized, its undesirable social, political, and environmental effects may be constrained or mitigated by collective political action. Keynes rejected the idea of a self-adjusting economy and argued that the state could and should address economic issues. The author describes the debate between the two theories and names key advocates, including James Buchanan and John Kenneth Galbraith.

The article talks about the economic contributions of John Kenneth Galbraith, a distinguished Harvard economist, diplomat, political activist, confidant and adviser to presidents, novelist, and a best-selling economic writer. Galbraith's contributions include his analysis of the significant economic power held by large firms in the U.S. economy and the social and environmental problems created by this concentration of power. Galbraith's recognition of the firms' manipulation of the consumers and the unequal distribution of income and social goods are discussed.

This article introduces the Review of Social Economy symposium on the basic income guarantee (BIG). It argues that there are several ways in which the BIG is consistent with social economics. First, the BIG is an attempt to meet the minimum material needs of US citizens and contribute to the common good. Second, important arguments for a BIG move beyond the positive-normative dichotomy. Finally, the BIG would help individuals function as social citizens. [ABSTRACT FROM AUTHOR]

Introduces a series of articles concerning aggregate production function. Efficacy of the aggregate production function; Quasi-experiment to ascertain why we get good results with aggregate production function; Problems involved with aggregating production functions at the firm level to production functions at the level of the entire economy.

Three problems plague the public choice perspective. First, it cannot explain why people vote, changes in voting behavior, or the actual votes of people. Second, public choice cannot predict the behavior of politicians. It cannot help us understand the sorts of people who run for public office, why candidates run for office promising less government, nor help us understand the actual votes cast by elected politicians. Finally, evidence about the growth of government runs counter to the claims of the public choice school. The paper concludes with some suggestions about how and why public choice has gone wrong. [ABSTRACT FROM AUTHOR]

This paper argues that providing alternative perspectives, such as Post Keynesian economics, is important to students and for the success of the economics profession. Comparing and contrasting different views allow stu-dents to develop critical reasoning skills that they will need later in their lives. Such knowledge is important to students in understanding how changes occur in economic thinking. Finally, it is explained how a student-oriented supple-mentary volume is one way to enrich an economics course. [ABSTRACT FROM AUTHOR]

Recent trends in economic restructuring and globalization have linked countries in a rush toward riches. However, the consequent growth of world output has not created commensurate employment opportunities. Systemic crises have occurred, and risks have shifted from firms to individual workers. Women have borne a higher share of the costs and reaped a lower share of the benefits. In light of these facts, development activists and scholars have returned to economists' earlier emphasis on human beings as the ultimate end of development. Economically, measures that reduce gender inequity are more effective than gender insensitive policies in reducing population growth rates, alleviating poverty, and improving the health and education of family members. This article examines some of the policies and strategies adopted by governments or women's groups that facilitate women's full participation in the polity and the economy and protect them in the face of adversity. Gender equity can only be achieved through a variety of initiatives and a process of trial and error and will be more effective if women's organizations have the support of governments and international organizations.

Features Harold M. Hochman, editor of the 'Eastern Economic Journal.' Biography of Hochman; Description of Hochman as a teacher and scholar; Research contributions of Hochman to income redistribution and utility interdependence.

The author reflects on the issues regarding the fiscal problems on imposing tax free on electronic-commerce among electronic-businesses. He argued on a more radical solution to the economic problem posed by e-commerce. He cited that a true competition requires opponents of equal size and strength, and should all forms of businesses should be charged on tax. He added, eliminating sales taxes would be more equitable than allowing e-commerce to escape taxation entirely and more efficient.

Interviews economist, Edward J. Nell on transformational economic growth. Nature of transformational growth; Impact of transformational growth on economy; Outlook on theory of long-term demand and long term-growth; Connections between transformational growth and neo-Ricardian economics.

Interviews U.S. economist, John Kenneth Galbraith. Difference between good economics and bad economics; Factors influencing his views on economics; Views about women and the role of women in the economy; Contemporary economic issues and problems; Views on the proposed value-added taxes; Problems in the deregulation of various industries.

Comments on the impact of the Economic Recovery and Tax Act of 1981 on taxpayers in the United States. Large budget deficits that followed the tax cuts; Arguments by supply-side economists of why the cuts did not provide earning incentives for the very wealthy; Prohibitive range of the Laffer curve.

Criticism of the book by Choi is expressed by Professor Pressman and responded to by the author Three problems are noted These deal with ambiguities in the concept of paradigms and conventions, the relationship between them, and how individual feelings of envy and the notion of social conventions fail to provide a good justification for fully supporting entrepreneurship [ABSTRACT FROM AUTHOR]