Category Archives: Politics

May 31, 2011 · 7:49 pm

Boehner’s Pork

If you are arguing with your friends about how John Boehner doesn’t wield much power, here’s some ammunition. When the Republican’s took control of the House of Representatives last year, Speaker Boehner said he would put an end to all earmarks. Well, guess what? Lawmakers found a loophole for their own rule.

Instead of directly asking money from a committee, the committee members have set aside money for lawmakers where they can request money to be allocated for their district. Walter Pincus reported that the House Armed Services Committee reserved one billion dollars (that’s twenty zeros) for what has been dubbed the Mission Force Enhancement Fund (MFEF). In this Fund, members of Congress could request money for projects in their districts through the appropriate federal agency within the Defense Department. Ironically, or maybe not, even before the bill could be passed half of the money within MFEF was already allocated for members who sit on the House Armed Services Committee.

This proves two things. First, Speaker Boehner can’t handle his job. You don’t run on reducing the deficit and the size of government, then allow your members to spite you on those very issues. In the 90’s Tom Delay threatened to remove members of his own caucus of their chairmanship if he didn’t like what they were doing. If Boehner had the same control like The Hammer once did, the Committee chairs would be afraid of applying this run around.

Second, the Tea Party doesn’t have as much influence as they like to believe. If members really cared about reducing the deficit and America’s debt, they wouldn’t take place in this practice. Instead, Freshman members like Congressman Joe Heck walk a tight line between getting the funds their district needs, and making sure they don’t get a primary challenge for doing so. Congressman Heck, who is a member of the Armed Services Committee, realizes if a terrorist attack does occur in the high tourist area of Las Vegas, it could be detrimental to the local economy. As someone who recently went there for the first time (I broke even), and wouldn’t mind going back one day, I would like to know that I’m safe doing so. Also, as a tourist attraction for people and businesses around the world, you could give a good argument for why terrorists would want to attack the city.

If the Tea Party really had a major influence over what the Republicans were doing, these funds never would have been created. They only represent a tiny proportion of conservative Americans, and the GOP knows they can’t retain their majority by exclusively pandering to them. The current speaker hasn’t figured out how to handle either of these issues, and instead has let his caucus take votes that he knew would hurt them at the polls leading to its recent defeat in NY26.

Personally, I don’t mind members of Congress asking for money. It is part of their job, and if they weren’t their constituents would be asking them why they haven’t been doing anything. Which happens to be the case for this Congress anyway.

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Filed under Congress, debt, John Boehner, NY26, Politics, Pork

May 24, 2011 · 2:45 am

The Politics Of Being Pro

If I were to ask you whether Albert Pujols was the best player in baseball, yes or no, I would only get a simple answer to what is a complicated question. Pujols was the leader in home runs, not to mention the top of virtually every baseball statistic there is within the last ten years. But he hasn’t hit a home run in over one hundred games and his batting average .269, way below his lifetime average of .329. You also have other players such as Jose Bautista who are now dominating the areas Pujols once did. And yes, this does have something to do with politics.

The same situation above also happens when you ask people if they consider themselves to be pro-life or pro-choice. Gallup recently came out with a poll that read “American’s Still Split Along Pro-Choice, Pro-Life Lines” with 49 percent saying they were pro-choice and 45 percent saying they were pro-life. While the poll asks people whether it is acceptable for a women to have an abortion under certain circumstances, it never asks which circumstances or why. It doesn’t help any policy maker decide how to vote on this issue, how his/her constituency feels about it, and what policies would they accept if enacted.

That is why Third Way, a Washington think tank, asked more questions to figure out what the American people really think about this contentious issue. In 2008 they came out with a study called A Consensus on the Abortion Debate—Reducing the need for abortion while preserving the right to have one. One of the questions they asked people was if they agreed with the statement “I support abortion rights, but I believe we can find common ground to reduce the need for abortions in America while still protecting a woman’s right to have one.” This was supported by 83 percent of Democrats, along with 50 percent of Republicans, including 43 percent of those who considered themselves pro-life.

The point here is that while there are plenty of Americans who feel strongly about this issue, the majority of them believe there is wiggle room. By asking people whether they are pro-choice or pro-life pushes them into a box to define themselves when neither definition fits. Both terms are nicely phrased slogans made up by the two sides to fit on advertisements and enable people to understand and explain where they are coming from. Every election cycle candidates are asked where they stand on abortion, but doing so doesn’t fully define their position as it wouldn’t for anyone else. The debate then lacks the serious conversation that is needed to move forward and only scratches the surface of the policy questions that need to be discussed.

Since it’s always important to start with the points where everyone agrees, the Third Way poll showed 72 percent of American’s favor enacting policies that will reduce “the number of abortions in America by preventing unintended pregnancies and supporting women who wish to carry their pregnancies to term.” That means abstinence only education is not a solution, but safe sex education and funding programs that will help women during and after their pregnancy is.

This particular Gallup poll was so close, if new, randomly chosen people were asked the same question the numbers could easily be flipped around. But even so, both sides tout when they see more American’s state they are on their side.

I remember watching Mike Huckabee do an interview (must have been The Daily Show) and he said something along the lines of “I believe a fetus is a living being, but I also believe we have to take care of it when it is born.” Now that he’s not running for President, I hope he and other major players won’t allow the health care debate to get overwhelmed with hyperbole, so that way the President and members of Congress can really say they represent the American people.

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Filed under abortion, Politics, pro-choice, pro-life, Third Way

May 21, 2011 · 10:19 pm

Boehner Wields A Little Gavel

Ever since Barack Obama became President the Republican Party’s argument to everything was simply no. No to raising taxes on the wealthy, no to the Affordable Care Act, and now it is no to raising the debt ceiling. While it is important for all politicians to make sure their base is happy, they still need to pass legislation. Of course that is easier said than done with a divided Congress, but what doesn’t help is when their isn’t strong leadership that is capable of herding the cats.

In a recent article from The Hill, it describes how some members of the GOP have missed the old days of Tom Delay where they were able to get things done without much bickering. While at times upset with the leadership style of late 1990’s and early 2000’s, these members are eager to get things done and don’t see Speaker John Boehner being able to. Tom “the hammer” Delay and Dennis Hastert were never shy of wielding their power to get what they wanted. “In 2004, then-Transportation and Treasury Appropriations subcommittee Chairman Ernest Istook (R-Okla.) tried to rescind Amtrak earmarks, sparking a heated fight with then-Rep. John McHugh (R-N.Y.) and other GOP legislators. Istook’s subcommittee was reorganized in the next Congress, stripping him of his gavel and ‘cardinal’ status.”

Coming back to today, we still don’t have a full budget, not many appropriations have been passed, and can I ask you to name one thing Republicans have done since taking over the House that has helped you? Of course Paul Ryan’s budget was passed, which would have ended Medicare, cut taxes for the wealthy and businesses, plus increase defense spending when all the major players within the Pentagon are calling for cuts. But this isn’t a sign of strength for Boehner.

Ryan’s budget proposal is being used right now by Democrat Kathy Hochul running in a special election in New York’s 26^th district, far far away from the liberal city. In fact, no one thought this race would even be close, but since Hochul started running against this budget she has picked up a large amount of momentum. It has gotten so bad for the GOP that Boehner had to head to Buffalo to try and help the Republican candidate Jane Corwin. But the election is Tuesday and recent polls show Hochul with the lead.

Boehner is struggling with members that are afraid they will be facing Tea Party candidates, and they know their “leader” won’t be able to help them. Since coming out in favor of the bailout in 2008, and accomplishing nothing to decrease the debt, he won’t be able to speak for the candidates who came into office saying they will make the government smaller. While many Democrats believe the GOP tends to agree on everything, they clearly haven’t, otherwise more legislation would have passed the House. The major accomplishments of the GOP since Boehner was minority leader had been getting his entire party to vote against the Affordable Care Act and the stimulus when Democrats took over. But most of the credit for was given to GOP Whip Eric Cantor.

When Truman was running for reelection in 1948, he branded the “Do Nothing Congress” as the reason he was not able to enact policies that will help the American people. So far in this first session of Congress, the House has passed twenty-nine pieces of legislation, compared to 2001 under Speaker Hastert, where seventy-five pieces of legislation were passed in its first session. While some of these bills are to change the name of a court room or post office, the majority of them were appropriations for member’s districts. Appropriations, (or pork, whatever you prefer) that could create jobs and stimulate the economy.

Even as the Republicans took over the House, Boehner was pushed to the sidelines by the RNC because he wasn’t good at using the talking points they gave him. Obama needs to do the same as Truman. The election isn’t going to be won over Iraq, Israel, or Osama Bin Laden, it’s going to be about the economy and the state of the nation. The reason why Tom Delay was able to keep his majority was because he got things done. But while the president has tried to get Congress to pass legislation that will help millions of Americans, all John Boehner has said is no, without offering an alternative, and unable to form a consensus for his party.

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Filed under Congress, John Boehner, Politics, President Obama

May 19, 2011 · 9:00 pm

The World’s City is Becoming the Widest Net

Have you ever been stuck in the rain, in a rush, wet, miserable, and not sure what the quickest way to get to your destination is? Well, there’s an app for that! For the past few years Mayor Michael Bloomberg has joined Twitter, hired the city’s first Chief Digital Officer, and has made a push for New York City to become a major player in the online development community.

A conglomerate of businesses in the city called NYC Seed, has worked with the New York’s Economic Development Corporation to attract developers to the city. In a competition called SeedStart 2011, entrepreneurs competed to live in New York for a summer, plus a prize of $20,000 to work on their proposed project. Owen Davis, Managing Director of NYC Seed, told me they received hundreds of applications. When I asked him if New York could compete with the major companies in Silicon Valley, he said that it is a “silly” comparison and “New York has many substantial industries in it already “giving it an edge to attract start ups to work within the fashion, media, and advertizing industries. According to Davis, many developers are already doing so: “There’s a lot of startups coming to New York and it’s increasing so you have a good supporting system that is being built and will continue to be built.”

Many popular online features have already been created in the city such as Tweetdeck which was recently bought by Twitter for $50 billion. A lot of these start ups are located in the flatiron district where you can find large, open, spaces for $26 dollars per square foot. Tech companies are attracted to these types of offices because much of the work they do is collaborative and these areas make everyone in the office more accessible.

Under the title Government 2.0, a number of corporations and other entities have been trying to figure out ways office holders and public agencies can release information so it can be used to benefit the people they represent. Mayor Bloomberg has worked within this realm and initiated the BigApps competition. Over 350 data sets were released by city agencies for programmers to create smartphone applications. The prize was a dinner with the Mayor and $40 thousand dollars. The best part of the competition is that is has already solved the rainy day problem. In its second year, the top prize went to a iphone app called Roadify, which tells people the latest subway, bus, and driving conditions in real time.

There are other applications the city has put out, one of which is called Don’t Eat At. Using information from the city’s Department of Health’s grading system, you can check into a restaurant via Foursquare (also created in New York) and get an instant text message telling you whether the chef washes his hands before cooking. The MTA has also created an application where people can see where there are delays on the subway and bus routes, and in the future will tell people the exact time when a subway or bus will arrive.

As social media is slowly becoming a part of our everyday lives, it is important for office holders to enter this realm as a way to interact with their constituents and govern in a way where they are accessible. New York is already home to the largest amount of Twitter accounts with over 26 million people, making it only natural for the City’s mayor to get in on the game. “I think social media overall, especially Twitter, gives politicians a new and exciting way to connect to constituents in ways they weren’t able to do even a few years ago. And it has really changed the dynamic of how politicians are able to respond to the citizens.” Richard Robbins, the Marketing Director for Media Innovation at AT&T explained. But there is no filter for the internet, and being caught in a gaff online can be much worse than being committing one caught on TV. To conquer this problem, Robbins said politicians should think about social media as “a campaign event or a cocktail party where it’s an opportunity to go and meet with people. And the idea whether they’re running for office or in office, interacting with constituents, helping constituents bring their concerns, responding to them is all politics.”

Since creating his account, Bloomberg has held online town halls using the #askmike hashtag. While there were some serious questions about housing, crime, and other city matters, the Mayor was also asked to explain how magnets work. As an engineer he knew the answer, but probably did not know the question was actually referring to a song by the hip hop group Insane Clown Posse. Making yourself more accessible to constituents is of course important, but obviously some can pull it off better than others. As Microsoft’s Director of Innovative Social Engagement, Dr. Mark Drapeau emailed me “if the goal is to make government and its billionaire mayor seem more human and down-to-earth through Twitter, than Insane Clown Posse could be an appropriate discussion topic, even if the mayor doesn’t completely appreciate who they are. Some of his citizens do, and he’s doing his best to relate.”

When I told him about the BigApp competition Drapeau said “App contest are not strictly necessary, and many of them end up on the proverbial shelf not getting much use. But they also motivate the developer community into public service, show citizens and govies the art of the possible, and occasionally deliver a hit.” It can also be a good way to promote the start ups and build the community that will further drive New York’s economic engine into the future.

Robbins explained to me that all these efforts help grow the industry “there’s more capitol at the early stage, the city is behind supporting entrepreneurs, there’s very good investors who are experienced who are trying to deploy capitol. And all those things matter in terms of building a ecosystem, it’s not one beast that does it.”

But flip phones are going the way of the dinosaur and young people are some of the most computer literate people in the country. Having grown up with this technology, using new devices is more natural to them than their parents. But looking further, Facebook is not going to be all fun anymore. Not only do politicians need to go where their constituents are, but governments will have to upgrade their services to keep up with the increasing demand as this new technology becomes more prominent.

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Filed under applications, Apps, Government 2.0, Internet, NYC, Politics, smartphones

April 18, 2011 · 4:12 pm

Protecting the Social Fabric

The International Labor Organization (ILO) has released a report titled Sharing Innovative Experiences. The eighteenth edition of the book gives examples of social protection programs, similar to what Social Security is for the US, that have helped to improve a developing nation’s economy. The focus is on eighteen countries that have implemented policies that created retirement plans, allowed children to go to school, and families to receive adequate health care. With these programs in place, thousands of people in developing countries were able to improve their living situation and lift themselves out of poverty.

As people who read this blog know, I am a fan of Amartya Sen’s Capabilities Theory. In fact, I wrote an entire thesis on it. It has been proven time and time again that raising a country’s Gross Domestic Product (GDP) does not mean the people living in that country will be able to live a better life. But the Capabilities Theory puts the emphasis back on the people and what they need to live. The ILO uses this theory in their research and promotes policies that will increase people’s quality of life, rather than increase a companies profit. The emphasis on Social Protection Programs is a direct result of this theory, and as I will show here, not only helps people live a better life but grows the countries economy as well.

Those living in the developing world (and are lucky enough to have a job) often do not earn enough to pay for themselves and their family’s medical needs. Not to mention the ability to save for retirement or pay for their children to go to school. The ILO looks at social protection programs as a way for governments to invest in their people (sound familiar?). But in the developing world, just 1 in 10 people have some sort of retirement pension, and even less (1 in 20) are enrolled in a health care plan. Social protection programs are needed so families can focus on their current situation, and in some countries have proven to reduce poverty in half. These policies make it easier for families to obtain food, an education, and health care, which not only make it easier for families to live their lives, but builds a stronger labor force for the future.

According to the ILO, over a billion people have been helped from Social Protection programs. It has been “one of the most impacting tools to change quality of life of the poor and vulnerable,” according to Francisco Simplisio head of the Division for Program and Knowledge Management at the United Nations Development Program. In an interview I conducted upon publication of the new update, Simplicio explained, “that’s the key portions of experience in collecting developing countries perspectives implementing it and making it possible for implementation. That’s one of the innovations of this book. And then of course it makes the case it’s possible, which is the second major step.”

The first example in the book comes from Argentina where there is the Universal Child Allowance (AUH). In 2002, 60 percent of Argentina’s children were living in households that were recognized as below the poverty line. This program covers children 0-18 years old where families are given allowances of $46.20 per month and must prove they are in school and registered for health care services. The program is divided by two subsystems called the contributory where all formal sector workers are registered in the system; and the non-contributory subsystem comprised of retirees.

Today, 85 percent of Argentina’s children are covered by AUH. To make sure the money was not being wasted, parents must sign affidavits, and letters must be signed by teachers and doctors affirming the child has been attending school and receiving treatment. Books, which are considered legal documents, are also kept by the government. Since the allowance is distributed through bank accounts, if a large amount of money is taken out at once it would be suspicious and violators risk not receiving allowances in the future and the possible facing prosecution. Nine million children and over two million retirees receive these benefits. With families receiving these allowances, they no longer have to worry about arbitrary policies that can force them to lose their home or job, and now have more certainty going into the future.

But in order to pay for these programs a combination of private and public sector investment is needed. The Director of the ILO’s Economic and Labor Market Analysis Moazam Mahmood told me, “the beginning of the report says demand issues are critical as well. So you need to generate the level of aggregate demand to generate employment.” Greater employment leads to more revenue and enables governments to expand their programs and cover more people. But the state still needs to lay a foundation for companies to invest in their country. “But it also has to come to from the public sector” Mahmood said “and we note the depressing statistics in terms of the production of the role of the public sector and much needed infrastructure because the report also notes the shortage of infrastructure has the potential to reduce GDP growth 2 percent a quarter.”

It is not expensive to implement these policies. Less than 2 percent of global GDP is needed to provide a basic set of social security benefits to the world’s poor. With over a billion people living on $1.25 a day, there is, of course, starvation. But several countries have implemented social programs that that allow families to buy food. The ILO has calculated an investment of 4 percent of the worlds GDP can reduce the food poverty rate in low income countries by 40 percent.

By investing in their people countries have been able to invest in their future. With their basic necessities in place, individuals can focus on obtaining better skills to get a better job. They are also able to work harder because they are well educated, plus physically and emotionally fit. When this is the case, multinational corporations are more willing to invest in a country because it will be easier to make a profit. And they’re right. The more education a population receives the more versatile they become for companies who are willing to pay them more.

I know, all this sounds simplistic, but there is vast amounts of evidence to show these policies work. Social Protection Programs are needed in all societies, and Sharing Innovative Experiences is meant to show developing countries a way to improve their economy while at the same time improving their citizens’ quality of life. There are a lot of lessons we can learn from the recession; one is that the fabric of society is delicate and it is important to protect the people in it. These programs help do that, and need to be promoted throughout the developing world.

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Filed under Amartya Sen, Capabilities Theory, Economics, global development, international development, International Labor Organization, Politics, Social Security

April 10, 2011 · 8:47 pm

Did The Republicans Really Win?

Like all political junkies, I wake up early on Sunday’s to watch the political talk shows to see what news, if any, is going to be made. This week consisted of the budget battle and the last minute deal that was reached on Friday. So I’m watching Meet The Press and This Week, and the consensus among the reporters was that because the Republicans pushed the Democrats around, and got the cuts they were asking for, they were the winners. But then I wondered: what else is new? While getting an agenda through Congress can sometimes equal a political victory, this policy victory won’t equal a political victory for the GOP.

Collectively, Congress has always had low approval ratings. It doesn’t matter what they do, people watch the debates on C-SPAN and see the overblown rhetoric used by politicians on the news, and guess what..they don’t like it. It gets to a point where both parties are looking like they are trying to save face (which they are) and really aren’t doing what they were elected to do, represent the people. The way the negotiations took place this week didn’t give American’s any more confidence in their government, and instead, showed both sides to be spoiled brats.

We still don’t know what the particulars are of the $38 billion that was cut, but who cares?! All the Republicans cared about was appeasing the Tea Party and cried for more cuts after getting what they originally asked for. I’m sure when John Boehner met with Harry Reid and President Obama at the White House, it was pointed out to him that polls consistently showed the majority of Republicans wanted a compromise. But all we got was more rhetoric and statements that argued for more cuts because it will help the economy or because abortions are bad. Both arguments are the crutch Republicans turn to when they know they reached too far, and people are sick of it.

The Republican’s also liked to say elections have consequences, which is true. If the Democrats kept the House last year none of this would have happened. A Continuing Resolution would have been passed to keep spending levels where they were and no one could have complained. It’s been done many times before. Even though they got their sound bites out there, the GOP never came up with one policy solution to help end the situation. If the government shut down it would have been their fault because they are the ones complaining.

In the meantime, Democrats looked like they didn’t even know what they stood for. Even though they still control the Senate and White House they weren’t able to get a strong message out. The way Boehner was acting was a gift for them. When he says that Government is the problem, Democrats should have reminded him of TARP (which he was in favor of) and how the program has actually earned America money. It was probably just easier for him to support it while George W. Bush was going to have to sign it into law. While Democrats can’t totally claim it was their idea, there is no reason they can’t use it to argue against Boehner’s assertion that government programs were hurting the economy.

I’m not going to go as far to say the Democrats won, but it’s hard for me to believe the Republicans took the trophy. American’s want to see their government work for them, and when they see both sides bickering over an issue that really isn’t going to help anyone, it makes them feel they don’t have the right people representing them. As both parties tried in the aftermath to position themselves as “winning” they need to realize at some point they are going to get booed off the stage.

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Filed under Budget, Congress, Harry Reid, John Boehner, Obama, Politics, Triangulation

February 14, 2011 · 12:46 pm

Egypt’s Capability

Friday morning I was completely off the grid. I had a appointment downtown, went on the subway to get back to my place so I wasn’t checking my cell phone, Twitter, or Facebook. It was just the like the 90’s but better because Destiny’s Child wasn’t playing in the background. When I got back to my apartment I checked to see what was going on in the world and saw a peaceful revolution coming to a peaceful end, and a new beginning for the people of Egypt. There are no words that can describe what was being shown on television, but the word that can’t be used enough is incredible.

When the first round of protests started on January 25^th, it seemed to catch many people by surprise. Either people at the CIA don’t have Facebook or Twitter accounts, or their efforts were focused on something else. But with all the countries in the middle east, why even worry about Egypt? With Mubarak in charge the country had been stable for 30 years, a peace treaty with Israel that it wasn’t breaking, and it’s GDP was growing at a higher rate than any other nations in Africa, and 25^th in the world. So, what do Egyptians have anything to worry about?

The reasons for Egypt’s revolt are complex, there are so many directions a writer can take in describing the events that lead up to January 25^th. But what they all have in common is the Egyptians wanted to be free and have a democratic government working for them. I have written in the past about standard economic models and how they are inadequate assessments. The reason: they don’t assess what people need or care about. Economists should look at what happened in Egypt and realize if the measurements they use do not change, the whole practice is in danger of becoming obsolete.

Before the recession in 2008 Egypt’s GDP grew 7.2%, in 2009 it still grew another 4.6% (when most economies shrunk), and in 2010 it contued upward at 5.3%. Part of the growth was drilled from the oil in the country’s vast dessert in the west, but its leading industry is in textiles, which grew at 5.5% just last year. But despite this improvement in production, it did not lead to people’s lives being improved. Unemployment was still at 9.7% and over 14 million people were living below the poverty line.

Nobel laureate Amartya Sen developed the Capabilities Theory, an alternative to standard economic models. Instead of focusing on GDP as the primary factor in development, he argues economists should focus on social programs such as education and health care, which enable people to live their lives to the fullest extent possible. An important part of this theory is strong democratic governance where people can make their grievances known and work to expand their freedom. The theory calls for redistributive policies to be enacted through social programs, similar to Social Security and Medicaid, which give people the resources and skills they need.

If economists are going to solve this problem, they have to understand what’s important to Egyptians, and people living around the world. There have been tons of stories written about the importance of bread, and all the people who have gone hungry (and I make no apologies for saying mine is the best) because they are not able to afford it. What’s also important to the Egyptians is their health. When Mubarak first came into power in the 1980’s he expanded health care by building hospitals and providing beds across the country. But despite the fact all Egyptians are eligible for health insurance, the government was refusing to pay for it (sound familiar?). The Ministry of Health owes $270 million dollars to health care providers across the country. But because they don’t have the money, hospitals have had to delay or refuse people treatment because they can’t afford to take them in.

Much of the talk has been about the smart, young people, who organized the protests through Facebook and Twitter. While this is true, the facts don’t speak well for Egypt’s education system. In the past, Egypt did have a good education system. But in recent years, as the population grew, more students were attending schools but were not receiving a good education. These children became disenfranchised only to drop out. Most of them tried to get the few jobs that were available, or went to a life in crime. This can lead to future economic stagnation because young Egyptians won’t know how, or have the will, to start or run a business. More schools needed to be built and more teachers needed to be hired, both of which would have reduced the unemployment rate and brought brighter prospects for Egypt’s future and the people who started the revolution.

The Carnegie Endowment for International Peace released a study on how hard it was to start a business in Egypt. This only empowered the rich and leaving behind the rest. While money was being given to the growing industries like textiles, this only enabled the rich and the businesses they own. Money wasn’t being spent on other areas where the majority of the people needed it. Overall investment by the government was only 18% of GDP. This is despite the fact Egypt’s purchasing power grew by $25 billion each year between 2008-2010.

The Capabilities Theory allows economists to focus on the areas of an economy that is most important to people, and their welling being. Providing for areas such as education, health care, housing, and food, provides security and stability allowing people to live their lives and pursue the areas they choose. Egyptians wanted access to better education and health care, among other things, and because they were being ruled instead of governed, they had to take to the streets in order to attain these freedoms.

February 11^th 2011 is a day that my generation will ask itself “where were you?” when Egyptians took their country back? Now that it is in their hands, Egyptians will be able to elect officials that can enact policies which will help those desperately in need, and build a better stronger country for future generations.

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Filed under Amartya Sen, Capabilities Theory, Economics, Egypt, Mubarak, Political Economy, Politics

October 2, 2010 · 8:56 pm

>Capability vs. GDP

Goals are important. They give us something to strive for, get us to make the tough decisions that life requires to accomplish them, and in an ever complicated world, can help keep us focused on what is really important. For public policy purposes though, determining how to assess goals can be controversial. How can you count for hundreds of millions of people, and still implement public policies without interfering on what those same people want to accomplish for themselves?

Coincidently, in a time where many people are saying how economists are failing us, I completed my thesis on how new economic methods need to be used to assess a countries development. What economists are currently accounting for are inputs and outputs, how much it costs to produce the product, and how much money can be made by selling it. I don’t want to say this is a bad thing. There are legitimate arguments out there on why these numbers are important. For businesses to hire people, they need an estimate how much they are going to make, and how much of a loan they need from a bank.

But while the Great Recession has been over for a year, the poverty rate in the United States has dramatically increased. The organization that punched these numbers is highly respected, and all they did was their job. They saw Gross Domestic Product (GDP) went up three quarters in a row and declared everything was fine. Unfortunately, there are millions of people out there who would tell these economists differently.

GDP only accounts for the health of businesses, not the population that keeps them thriving. Instead of assuming that if businesses are prosperous the people are too, economists need to develop new goals that take into account for what people need in order for them to achieve what they are working towards. My thesis focused heavily on the work of Amartya Sen and his Capabilities Theory. This theory focuses on human development, bringing it back to the basics of education, health care, housing, freedom, democracy, and other factors, in order to ensure people are given a chance to accomplish the goals they set for themselves.

In his recent struggles to get the democratic base out to the polls, President Obama stated that during the Bush administration personal family incomes had fallen. But still, most economists thought the economy was good because GDP was going up. The fact is recessions happen, whether in a time of strong regulations or weak ones. You just have to hope they’re not as bad as the one we are in now and they don’t turn into a depression. What is great about the Capabilities Theory is that when recessions do happen, policies are already in place to make sure people are protected. By having economists measure basic goals that all people need, individuals will still have the opportunity to decide what they want to accomplish for themselves because they were given the capability to do so.

Of course, while democracy is a important for the Capabilities Theory, there are numerous examples that can be used to show how politics can be really stupid. Gail Collins had a good piece today on how some of the major races in the coming election have been outright dirty, where the candidates have resorted to political mudslinging. While the politicians and their advisors may see attack ads necessary to get their base out, it turns just as many people off, and doesn’t get any more people to vote for the person who put out the commercial. Even the numbers that economists come out with are at times manipulated to further a public officials agenda. But if new assessments of goals based on the Capabilities Theory were implemented, it would be harder to spin how many people are receiving a strong education, living in a safe neighborhood, and have what they need to support their families.

Elected politicians don’t get reelected on what they say about their opponent, it’s on their own record. By focusing on the people, instead of the corporations, elected officials will know what areas to focus on and try to do something about it. Then, it would be a lot harder for their opponent to come up with legitimate attacks.

This post may seem like a utopia to some people, but I am well aware there will always be socio-economic differences. But when I first learned about the Capabilities Theory, it was one of those things that just made sense, and hopefully after going through this tough time, more people will think it makes sense as well.

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Filed under Amartya Sen, Capabilities Theory, Economics, Politics, President Obama, Public Policy

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