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Fundraising Many non-profit organizations solicit funds for a financial endowment, which is a sum of money that is invested to generate an annual return. Although endowments may be created when a sizable gift is received from an individual or family, often as directed in a will upon the death of a family member, they more typically are the result of many gifts over time from a variety of sources. A fundraising event (also called a fundraiser) is an event or campaign whose primary purpose is to raise money for a cause, charity or non-profit organization. Fundraisers often benefit charitable, non-profit, religious, or non-governmental organizations, though there are also fundraisers that benefit for-profit companies and individuals. Special events are another method of raising funds. These range from formal dinners to benefit concerts to walkathons. Events are used to increase visibility and support for an organization as well as raising funds. Events can feature activities for the group such as speakers, a dance, an outing or entertainment, to encourage group participation and giving. Events can also include fundraising methods such as a raffle or charity auction. Events often feature notable sponsors or honoree. Events often feature a charity "ad book" as a program guide for the event, but more importantly, as another fundraiser providing members, supporters and vendors to show their support of and to the group at the event by way of placing an ad-like page, 1/2 page, 1/4 page, stating or showing support
Business&Economics
https://en.wikipedia.org/wiki?curid=917917
Fundraising
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Fundraising Events and their associated fundraisers can be a major source of a group's revenue, visibility and donor relations. One specific type of event is the "ad book" fundraiser, where those who wish to give funds to a fundraising group do so through the sponsorship or statement within a book of advertisements. Online fundraising pages have become very popular for people taking part in activities such as a charity. Those pages facilitate online payments in support of the charity. Popular charity fundraisers in major American cities include lavish black-tie gala benefit dinners that honor celebrities, philanthropists, and business leaders who help to fundraise for the event's goals through solicitations of their social and business connections. Often called donor cultivation, relationship building is the foundation on which most fundraising takes place. Most fundraising development strategies divide donors into a series of categories based on the amount and frequency of donations. For instance, annual giving and recurring gifts represent the base of a fundraising pyramid. This would be followed by mid-level gifts, planned gifts, major gifts, and principal gifts. More sophisticated strategies use tools to overlay demographic and other market segmentation data against their database of donors in order to more precisely customize communication and more effectively target resources
Business&Economics
https://en.wikipedia.org/wiki?curid=917917
Fundraising
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Fundraising Research by Peter Maple in the UK shows that charities generally underinvest in good marketing research spending around a quarter of what an equivalent sized for profit company might spend. Donor relations and stewardship professionals support fundraisers by recognizing and thanking donors, and demonstrating the impact of their donations in a fashion that will cultivate future giving to nonprofit organizations. Recent research by Adrian Sargeant and the Association of Professionals' Effectiveness Project suggests the sector has a long way to go in improving the quality of donor relations. The sector generally loses 50–60% of its newly acquired donors between their first and second donations and one in three, year on year thereafter. The economics of regular or sustained giving are rather different, but even then organizations routinely lose 30% of their donors from one year to the next. A capital campaign is "an intensive fundraising effort designed to raise a specified sum of money within a defined time period to meet the varied asset-building needs of an organization". Asset-building activities include the construction, renovation or expansion of facilities (for example, a new building), the acquisition or improvement of land, equipment, or other items, and additions to a financial endowment. Two characteristics set capital campaigns apart from other forms of fund-raising activities. First, "the gifts solicited are much larger than those generally sought during an annual fund"
Business&Economics
https://en.wikipedia.org/wiki?curid=917917
Fundraising
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Fundraising Second, "pledges are emphasized as commitments payable over a number of years convenient to the donor or through the transfer of appreciated real or personal property". Various types of capital campaigns have been identified. The traditional "brick and mortar" campaign, focused on building construction or improvements, was considered a "once in a lifetime" campaign in the past because of the ambitious goals of the campaign. Today, however, organizations frequently schedule capital campaigns every five to ten years, and "the megagoals announced by large institutions often are the result of 'counting everything' during a five-to seven-year campaign period". A second type of campaign is the comprehensive, integrated, or total development campaign, which aims for a longer fund-raising program based on a long-term analysis of the organization's needs and direction. This form of campaign can wrap together capital projects, endowment and operating expenses as its purpose, and use a variety of fund-raising activities, such as annual gift drives, which are "slower-paced and lack the intensity of the traditional capital campaign". Some non-profit organizations demonstrate greater accountability by showing donors the direct impact of their fundraising efforts. This accountability may comes in the form of a vote, where the members select a specific program or charity that they would like their money to go to
Business&Economics
https://en.wikipedia.org/wiki?curid=917917
Fundraising
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Fundraising Another example is put in place a mechanism which allows donors to contraint usage of funds toward a specific purpose and closely monitor/allow spending to ensure proper usage. Many non-profit organizations take advantage of the services of professional fundraisers. These fundraisers may be paid for their services either through fees unrelated to the amounts of money to be raised, or by retaining a percentage of raised funds (percentage-based compensation). The latter approach is expressly forbidden under the Code of Ethics of the Association of Professionals (AFP), a professional membership body. However, by far the most common practice of American non-profits is to employ a staff person whose main responsibility is fund raising. This person is paid a salary like any other employee, and is usually a part of the top management staff of the organization. Some non-profit organizations nonetheless engage fundraisers who are paid a percentage of the funds they raise. In the United States, this ratio of funds retained to funds passed on to the non-profit is subject to reporting to a number of state's Attorneys General or Secretaries of state. This ratio is highly variable and subject to change over time and place, and it is a point of contention between a segment of the general public and the non-profit organizations
Business&Economics
https://en.wikipedia.org/wiki?curid=917917
Fundraising
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Fundraising The term "professional fundraiser" is in many cases a legislated term referring to third-party firms whose services are contracted for, whereas "fundraising professionals" or development officers are often individuals or staff at charitable non-profits. Although potentially confusing, the distinction is an important one to note. A specialty within the fundraising profession is the "grant professional." Grant professionals with at least three years experience, and other requirements, can become certified as Grant Professional Certified (GPC). The GPC credential is administered by Grant Professionals Certification Institute, whose mission is to strengthen the nonprofit sector's ability to pursue and maintain public sector and private sector funding by promoting competency and ethical practices within the field of "grantsmanship". The certification process is designed to measure minimum knowledge and skills related to all aspects of grant development and management, including but not limited to such areas as grant research or pre-production, grant construction, grant reporting, public sector funding, private sector funding, ethics and grant accountability. Online and mobile fundraising had become a popular fundraising method over the last few years due to its accessibility. organizations are using mobile and online fundraising providers to attract donors around the globe. Common online and mobile fundraising methods include online donation pages, text to give, mobile silent auctions, and peer to peer fundraising
Business&Economics
https://en.wikipedia.org/wiki?curid=917917
Fundraising
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Fundraising Since 2016, online giving has grown by 17% in the United States. In 2018, digital fundraising accounted for 8.5% percent of charitable donations and 24% of online donations were made on a mobile device in the United States. Organizations in the United States established for charitable purposes are allowed to raise funds from many sources. They are given a specific designation by the Internal Revenue Service (IRS), commonly noted as 501(c)(3) organizations. Other nonprofits such as fraternal associations have different IRS designations, and may or may not be eligible to raise funds. Financial information on many nonprofits, including all nonprofits that file annual IRS 990 forms is available from GuideStar.
Business&Economics
https://en.wikipedia.org/wiki?curid=917917
Fundraising
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Demand curve In economics, a demand curve is a graph depicting the relationship between the price of a certain commodity (the "y"-axis) and the quantity of that commodity that is demanded at that price (the "x"-axis). Demand curves may be used to model the price-quantity relationship for an individual consumer (an individual demand curve), or more commonly for all consumers in a particular market (a market demand curve). It is generally assumed that demand curves are downward-sloping, as shown in the adjacent image. This is because of the law of demand: for most goods, the quantity demanded will decrease in response to an increase in price, and will increase in response to a decrease in price. Demand curves are used to estimate behaviors in competitive markets, and are often combined with supply curves to estimate the equilibrium price (the price at which sellers together are willing to sell the same amount as buyers together are willing to buy, also known as market clearing price) and the equilibrium quantity (the amount of that good or service that will be produced and bought without surplus/excess supply or shortage/excess demand) of that market. In a monopolistic market, the demand curve facing the monopolist is simply the market demand curve. Demand curves are usually considered as theoretical structures that are expected to exist in the real world, but real world measurements of actual demand curves are difficult and rare
Business&Economics
https://en.wikipedia.org/wiki?curid=920978
Demand curve
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Demand curve Demand curves are often graphed as straight lines, where "a" and "b" are parameters: The constant "a" embodies the effects of all factors other than price that affect demand. If income were to change, for example, the effect of the change would be represented by a change in the value of "a" and be reflected graphically as a shift of the demand curve. The constant "b" is the slope of the demand curve and shows how the price of the good affects the quantity demanded. The graph of the demand curve uses the inverse demand function in which price is expressed as a function of quantity. The standard form of the demand equation can be converted to the inverse equation by solving for P: The shift of a demand curve takes place when there is a change in any non-price determinant of demand, resulting in a new demand curve. Non-price determinants of demand are those things that will cause demand to change even if prices remain the same—in other words, the things whose changes might cause a consumer to buy more or less of a good even if the good's own price remained unchanged. Some of the more important factors are the prices of related goods (both substitutes and complements), income, population, and expectations. However, demand is the willingness and ability of a consumer to purchase a good "under the prevailing circumstances"; so, any circumstance that affects the consumer's willingness or ability to buy the good or service in question can be a non-price determinant of demand
Business&Economics
https://en.wikipedia.org/wiki?curid=920978
Demand curve
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Demand curve As an example, weather could be a factor in the demand for beer at a baseball game. When income increases, the demand curve for normal goods shifts outward as more will be demanded at all prices, while the demand curve for inferior goods shifts inward due to the increased attainability of superior substitutes. With respect to related goods, when the price of a good (e.g. a hamburger) rises, the demand curve for substitute goods (e.g. chicken) shifts out, while the demand curve for complementary goods (e.g. ketchup) shifts in (i.e. there is more demand for substitute goods as they become more attractive in terms of value for money, while demand for complementary goods contracts in response to the contraction of quantity demanded of the underlying good). In addition to the factors which can affect individual demand there are three factors that can cause the market demand curve to shift: Some circumstances which can cause the demand curve to shift in include: There is movement "along" a demand curve when a change in price causes the quantity demanded to change. It is important to distinguish between movement along a demand curve, and a shift in a demand curve. Movements along a demand curve happen only when the price of the good changes. When a non-price determinant of demand changes, the curve shifts. These "other variables" are part of the demand function. They are "merely lumped into intercept term of a simple linear demand function
Business&Economics
https://en.wikipedia.org/wiki?curid=920978
Demand curve
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Demand curve " Thus a change in a non-price determinant of demand is reflected in a change in the x-intercept causing the curve to shift along the x axis. PED is a measure of the sensitivity of the quantity variable, Q, to changes in the price variable, P. Elasticity answers the question of how much the quantity will change in percentage terms for a 1% change in the price, and is thus important in determining how revenue will change. PED is negative because of the inverse relationship between the price of a good and the quantity of the good demanded, a consequence of the law of demand. The elasticity of demand indicates how sensitive the demand for a good is to a price change. If the absolute value of PED is between zero and 1, demand is said to be inelastic; if the absolute value of PED equals 1, the demand is unitary elastic; and if the absolute value of Price elasticity of demand is greater than 1, demand is elastic. A low coefficient implies that changes in price have little influence on demand. A high elasticity indicates that consumers will respond to a price rise by buying a lot less of the good and that consumers will respond to a price cut by buying a lot more... A sales tax on the commodity does not directly change the demand curve, if the price axis in the graph represents the price including tax. Similarly, a subsidy on the commodity does not directly change the demand curve, if the price axis in the graph represents the price after deduction of the subsidy
Business&Economics
https://en.wikipedia.org/wiki?curid=920978
Demand curve
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Demand curve If the price axis in the graph represents the price before addition of tax and/or subtraction of subsidy then the demand curve moves inward when a tax is introduced, and outward when a subsidy is introduced.
Business&Economics
https://en.wikipedia.org/wiki?curid=920978
Demand curve
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John Ramsay McCulloch (1 March 1789 – 11 November 1864) was a Scottish economist, author and editor, widely regarded as the leader of the Ricardian school of economists after the death of David Ricardo in 1823. He was appointed the first professor of political economy at University College London in 1828. He wrote extensively on economic policy, and was a pioneer in the collection, statistical analysis and publication of economic data. McCulloch was a co-founder, and one of the first editors, of "The Scotsman" newspaper, and worked on the "Edinburgh Review". He edited the 1828 edition of "The Wealth of Nations". McCulloch attended the University of Edinburgh, but did not graduate. McCulloch collected the early literature of political economy, and wrote on the scope and method of economics and the history of economic thought. After his death his library was purchased by Lord Overstone and eventually presented to the University of Reading. He was a participant in the Political Economy Club, London, founded by James Mill and a circle of friends in 1821 for an ongoing discussion of the fundamental principles of political economy. McCulloch's works include a textbook, "Principles of Political Economy" (Edinburgh 1825). He worked on subsequent editions until his death. This book contains a memorable discussion of the origins of profit or interest in the case of a cask of new wine. This question is still used in discussions of the labour theory of value and related issues
Business&Economics
https://en.wikipedia.org/wiki?curid=923035
John Ramsay McCulloch
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John Ramsay McCulloch McCulloch used it to illustrate that "time cannot of itself produce effect; it merely affords space for really efficient causes to operate, and it is therefore clear it can have nothing to do with value." Reflecting on discussions in the Political Economy Club, Ricardo had privately expressed his famous opinion about the "non-existence of any measure of absolute value." McCulloch died in 1864, and is buried in Brompton Cemetery, London. McCulloch's theoretical work received harsh criticism from Eugen von Böhm-Bawerk in the latter's "History and Critique of Interest Theories" (1884). wrote Böhm-Bawerk. The labour theory of value is an exception, in that McCulloch seems more insistent about it than about any of the contradictory hypotheses he entertained, Böhm-Bawerk conceded, but the form of that theory McCulloch endorsed was "the most absurd that could possibly occur to a serious thinker." On the subject of the wine cask, Böhm-Bawerk wrote that there was an "enormous difference between what he was supposed to prove and what he did prove." Although such examples may prove that the mere passage of time is not enough of a change to produce an increase of value, that hardly helps the labour theory of value. The physical changes in the wine are produced by the microbes involved in the fermentation process, and the change in exchange value involves the public's subjective preference for wine over grape juice, and old wine over new.
Business&Economics
https://en.wikipedia.org/wiki?curid=923035
John Ramsay McCulloch
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Intensive stage Intensive stage, or by its full name, "predominantly intensive stage of accumulation" pertains to one of the periodizations of capitalism, as proposed by Aglietta (1976). It is the second stage of capitalism: when the extensive stage becomes exhausted, expansion of (commodity) production is reduced to the increase in productivity of labour, or to the "intensification" of production. The extensive stage reached its limits in England by the 1810s and after a lease of life through imperial expansion, definitively by the 1860s; in Germany, by the 1880s; in the US, by the 1920s (Aglietta,1976); in Brazil, by the 1970s. In contemporary capitalism (or Late capitalism) it is generalized over virtually the whole world economy and some see itself having reached its limits with the exhaustion of the post-war boom by the mid-1960s. It is disputed whether the social organization—or mode of production—based on commodity production and wage labour, that is to say, capitalism itself, can make a transition from its present form to one in which the ever-increasing branch of services can be commodified. References<br> Aglietta, Michel (1976) "Régulation et crises du capitalisme" Maspéro, Paris, A theory of capitalist regulation Verso, London<br> Mandel, Ernest (1958?) "Late capitalism"
Business&Economics
https://en.wikipedia.org/wiki?curid=929378
Intensive stage
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World3 nonrenewable resource sector The world3 nonrenewable resource sector is the portion of the world3 model that simulates the nonrenewable resources. The World3 model was a simulation of human interaction with the environment designed in the 1970s to predict population and living standards over the course of the next 100 years. The nonrenewable resource sector of the world3 model was used to calculate the cost and usage rates of nonrenewable resources. In the context of this model, nonrenewable resources were resources that there is a finite amount of on Earth, such as iron ore, oil, or coal. This model assumes that regardless of how much money is spent on extraction, there is a finite limit for the amount of nonrenewable resources that can be extracted. The model combines all possible nonrenewable resources into one aggregate variable, nonrenewable_resources. This combines both energy resources and non-energy resources. Examples of nonrenewable energy resources would include oil and coal. Examples of material nonrenewable resources would include aluminum and zinc. This assumption allows costless substitution between any nonrenewable resource. The model ignores differences between discovered resources and undiscovered resources. The model assumes that as greater percentages of total nonrenewable resources are used, the amount of effort used to extract the nonrenewable resources will increase. The way this cost is done is as a variable fraction_of_capital_allocated_to_obtaining_resources, or abbreviated fcaor
Business&Economics
https://en.wikipedia.org/wiki?curid=934627
World3 nonrenewable resource sector
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World3 nonrenewable resource sector The way this variable is used is in the equation that calculates industrial output. Basically, it works as effective_output = industrial_capital*other_factors*(1-fcaor). This causes the amount of resources expended to depend on the amount of industrial capital, and not on the amount of resources consumed. The consumption of nonrenewable resources is determined by a nonlinear function of the per capita industrial output. The higher the per capita industrial output, the higher the nonrenewable resource consumption. The fraction of capital allocated to obtaining resources is dependent only on the nonrenewable_resource_fraction_remaining, or abbreviated nrfr. This variable is the current amount of non-renewable resources divided by the initial amount of non-renewable resources available. As such nrfr starts out as 1.0 and decreases as world3 runs. Fraction of capital allocated to obtaining resources is dependent on nrfr as interpolated values from the following table: Qualitatively, this basically states that the relative amount of non-renewable resources decreases, the amount capital required to extract the resources increases. To more deeply examine this table requires examining the equation that it comes from, effective_output = industrial_capital*other_factors*(1-fcaor) So, if industrial capital and the other factors (described in the capital sector) are the same, then 1 unit of the effective capital when nrfr is 1.0 the effective output is 0.95 (= 1.0 * ( 1 - 0.05)). So, when nrfr is 0
Business&Economics
https://en.wikipedia.org/wiki?curid=934627
World3 nonrenewable resource sector
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World3 nonrenewable resource sector 5, the effective output is 0.90 (= 1.0 * (1 - 0.10)). Another useful way to look at this equation is to reverse it and see how much effective capital is required to get 1 unit of effective output (i.e. effective_output / (1 - fcaor) = effective_capital). So, when nrfr is 1.0, the effective capital required for 1 unit of effective output is 1.053 (=1.0/(1-0.05)), and when nrfr is 0.3, the effective capital required is 2 (=1.0/(1-0.5)). Lastly is looking at the relative cost required for obtaining the resources. This based on the fact that it requires 1/19 of a unit of effective capital extra when the nrfr is 1.0. So, (effective capital required - 1.0) / (1 / 19) will give the relative cost of obtaining the resources compared to the cost of obtaining them when nrfr was 1.0. For example, when nrfr is 0.3, the effective capital required is 2.0, and 1.0 of that is for obtaining resources. So, the cost of obtaining the resources is (2.0 - 1.0) / ( 1 / 19) or 1.0*19 or 19 times the cost when nrfr was 1.0. Here is a table showing these calculations for all the values: The world3 model does not directly link industrial output to resource utilization. Instead, the industrial output per capita is calculated, and that is used to determine resource usage per capita. This is then multiplied by the total population to determine the total resource consumption. Per capita resource utilization multiplier (PCRUM) and Industrial Output per Capita (IOPC)
Business&Economics
https://en.wikipedia.org/wiki?curid=934627
World3 nonrenewable resource sector
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Thom Hartmann Thomas Carl Hartmann (born May 7, 1951) is an American radio personality, author, former psychotherapist, businessman, and progressive political commentator. Hartmann has been hosting a nationally syndicated radio show, "The Program", since 2003 and hosted a nightly television show, "The Big Picture", between 2010 and September 2017. After being a DJ at Lansing, Michigan, country music station WITL-FM in the late 1960s, Hartmann was an entrepreneur, writer, and humanitarian for nearly three decades. He founded International Wholesale Travel and its subsidiary, Sprayberry Travel, among other ventures. He also founded the Salem Children's Village, a home for abused and special-needs children, in New Hampshire. Since 1992, Hartmann has written many books on politics, spirituality, and psychology. His 1992 book "ADD: A Different Perception" brought to national attention the hunter vs. farmer hypothesis of attention deficit disorder. Hartmann's 2002 article, "Talking Back To Talk Radio", became part of the original business plan of Air America Radio, and he started his radio program out of his home in Vermont in March 2003. He moved to the Air America network in 2007 and then to the Jones Radio Network (later Dial Global and Westwood One) in 2009. His current syndicator is DGital Media. The radio show is also broadcast on community/non-profit stations via Pacifica Radio and Free Speech TV. "The Program" has 7 million listeners a week and is one of the top progressive talk radio programs
Business&Economics
https://en.wikipedia.org/wiki?curid=944577
Thom Hartmann
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Thom Hartmann In 2008 Hartmann started a daily TV show, "The Big Picture". The RT network began carrying the show in 2010 and Hartmann left the show at the end of September 2017. Hartmann was born in Grand Rapids, Michigan, one of four children of Jean and Carl Thomas Hartmann. His paternal grandparents were from Norway, and his other ancestry includes Welsh and English. He lived in Detroit at age two, and later grew up in Lansing, Michigan. Interested in politics from a young age, he was raised in a conservative, Midwestern household with a right-wing point of view. He campaigned with his staunch-Republican father for Barry Goldwater during the 1964 presidential election when he was thirteen. Although a "gifted" student, Hartmann was expelled from high school during tenth grade and later earned a GED. Hartmann enrolled at Lansing Community College and transferred to Michigan State University, majoring in electrical engineering. In 1968, Hartmann opened his first business, a repair shop named "The Electronics Joint" located next to Michigan State University and became a part-time disc jockey at local country music station WITL-FM. With Students for a Democratic Society (SDS), Hartmann protested against the Vietnam War . Hartmann had been interested in consciousness and spirituality since childhood, and by 1969 his interest had gone from hippie subculture to Christian mysticism. It was during that year that he met the head of the Coptic Center, Master Stanley
Business&Economics
https://en.wikipedia.org/wiki?curid=944577
Thom Hartmann
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Thom Hartmann In 1971 he was ordained as a Minister with Coptic Fellowship International. He has been a keynote speaker at many Coptic Conferences nationally. In 1973, Hartmann returned to Detroit to work as an engineer with RCA. He met his wife Louise in the late 1960s. They have been married for over 45 years and have three children. Hartmann began his business career in the early 1970s while in his 20s, co-founding The Woodley Herber Company. Woodley Herber sold herbal products, potpourris and teas, and operated until 1978. It was during this time that Hartmann obtained three degrees in herbology and homeopathic medicine. Hartmann then moved to New Hampshire to start The New England Salem Children's Village, which still operates in Rumney, New Hampshire. He was its Executive Director for five years, and on the board of directors for more than 25 years. NESCT's child-care model was based on that of the German Salem International organization, and through his affiliation with that group he helped start international relief programs in Uganda, Colombia, Russia, Israel, India, Australia, and several other countries between 1979 and today. Hartmann founded International Wholesale Travel and its retail subsidiary Sprayberry Travel in Atlanta in 1983, a business which in the intervening years has generated over a quarter of a billion dollars in revenue
Business&Economics
https://en.wikipedia.org/wiki?curid=944577
Thom Hartmann
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Thom Hartmann According to their website, Sprayberry Travel was lauded by the Wall Street Journal in 1984 for being one of the early adopters of frequent travel programs analogous to the recently initiated frequent flyer programs of the airline industry. He sold his share in the business in 1986 and retired with his family to Germany to work with the international relief organization Salem International. In the late 1970s, he had been a trainer in advertising and marketing for The American Marketing Centers (now defunct), and in 1987 after returning from Germany founded the Atlanta advertising agency Chandler, MacDonald, Stout, Schneiderman & Poe, Inc., which did business as The Newsletter Factory. He sold his interest in that company in 1996 and retired to Vermont. Having worked as a DJ and news director at Lansing radio stations from 1968 to 1978, Hartmann started a radio show in February 2003 on a local station in Vermont; a month later it was picked up on the I.E. America Radio Network and on Sirius Satellite Radio. In 2005, he moved from Vermont to Oregon and, in addition to continuing his national show, also co-hosted a local talk show in Portland, Oregon (with Carl Wolfson, the late Heidi Tauber, and later Christine Alexander), from 2005 until early 2007 on KPOJ, initially an affiliate of Air America Radio owned by Clear Channel Communications. But KPOJ now (March 2013) airs a sports talk format, and is affiliated with Fox Sports Radio. Hartmann's national program, on the air since 2003 and now in the noon to 3 pm
Business&Economics
https://en.wikipedia.org/wiki?curid=944577
Thom Hartmann
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Thom Hartmann ET daypart, was chosen by Air America to replace Al Franken on most Air America affiliates in 2007. From 2008 to 2011, "Talkers Magazine" rated Hartmann the most popular liberal talk show host in America, rising from number 10 among all talk show hosts in 2008 to number 8 in 2011 and 2015. According to his then-syndicator Dial Global, more people listened to Hartmann's show on more stations than any other progressive talk show in America. "The Program" is estimated by industry magazine "Talkers" to have 2.75 million unique listeners per week. As of March 2016, the show was carried on 80 terrestrial radio stations in 37 states as well as on Sirius and XM satellite radio. A community radio station in Africa, Radio Builsa in Ghana, also broadcasts the show. Various local cable TV networks simulcast the program. In addition to Westwood One, the show is now also offered via Pacifica Audioport to non-profit stations in a non-profit compliant format and is simulcast on Dish Network channel 9415 and DirecTV channel 348 via Free Speech TV. The program is carried on Radio Sputnik in London, England. Many guests appear on the show expressing a variety of points of view on diverse social and political topics. Some guests proffer progressive views similar to Hartmann's, but more than half are conservatives, libertarians, or Ayn Rand Institute members who espouse opposing views
Business&Economics
https://en.wikipedia.org/wiki?curid=944577
Thom Hartmann
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Thom Hartmann Due to his eagerness to invite people who disagree with him, vigorous discussion and debate between the host and guests usually ensues; "My goal in my conversations with conservatives is not to create a spectacle, and not to win the argument, not to prove that I'm the smartest guy in the room or that I'm a tough warrior and I can smack down people." For many years, Sen. Bernie Sanders (I-VT) appeared every Friday for the "Brunch with Bernie" segment. Other regular phone-in guests include Congressmen Mark Pocan (Mid-day with Mark) and Ro Khanna, both members of the Congressional Progressive Caucus. Ellen Ratner of the Talk Radio News Service provides Washington commentary daily. Victoria Jones who is the White House correspondent for Talk Radio News Service appears occasionally, as does Ravi Batra, an economics professor at SMU. Like most talk radio shows, "The Program" takes calls from listeners. When callers asked Hartmann how he was, he used to reply, "I'm great, but I'll get better." But after a time, callers would regularly try to elicit this response, so he's stopped replying this way routinely. Hartmann ends each show with the phrase, "Activism begins with you, democracy begins with you. Get out there, get active! Tag, you're it!" Michael Harrison, publisher of radio industry trade magazine "Talkers", offered this appraisal of Hartmann: Hartmann hosted a one-hour daily TV show at 7 pm
Business&Economics
https://en.wikipedia.org/wiki?curid=944577
Thom Hartmann
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Thom Hartmann ET Monday to Friday, "The Big Picture with Thom Hartmann," which was editorially directed by his wife and broadcast from the Washington, D.C., studios of the RT news network. Hartmann co-produced the program with RT, who provided studio and carriage, while Hartmann retained full editorial control of his programming. RT licenses his program to Free Speech TV, which broadcasts it on Dish Network, DirecTV, and on selected local-origination and public-access television cable TV channels. After hosting the program for seven years, Hartmann announced his departure as host on September 29, 2017. He introduced and interviewed the new host of the program, Holland Cooke. Hartmann is a writer who has published more than twenty books on diverse topics. The title which won the most critical acclaim is "The Last Hours of Ancient Sunlight". In 1999 he was invited by the Dalai Lama to spend a week in Dharamsala after the Dalai Lama finished reading this book. Hartmann won the Project Censored Award in 2004 for "Unequal Protection". As a result of a book on spirituality, "The Prophet's Way", he was invited in 1998 to meet Pope John Paul II
Business&Economics
https://en.wikipedia.org/wiki?curid=944577
Thom Hartmann
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Thom Hartmann Trained in the 1970s in Neuro-Linguistic Programming by Richard Bandler (Hartmann is licensed by Bandler's Society of NLP as both an NLP Practitioner and an NLP Trainer, and Bandler wrote the foreword to his book "Healing ADD"), Hartmann popularized some of its concepts in "Cracking the Code" (2007), which argues that Newt Gingrich and Frank Luntz made use of them in the 1980s and 1990s for Republican Party causes and advocates using them to advance liberalism. His book "Healing ADD" also leans heavily on NLP techniques. Co-authored with Lamar Waldron, Hartmann's "Ultimate Sacrifice" released in 2005 states that the Mafia ordered the assassination of John F. Kennedy and that Lee Harvey Oswald was a CIA agent and patsy. Hartmann was one of several contributors to "Air America, the Playbook", a 300-plus page collection of essays, transcripts, and interviews by liberal radio personalities. It was published shortly before the 2006 Congressional elections and was on "The New York Times" Best Seller List for October 8, 2006. Leonardo DiCaprio made a web movie titled "Before The Flood" that was inspired by "The Last Hours of Ancient Sunlight". Hartmann appears in DiCaprio's 2007 documentary "The 11th Hour", as well as the feature documentary film "Dalai Lama Renaissance" (with Harrison Ford), and Crude Impact. In 2010, Warner Brothers and Leonardo DiCaprio announced they are making a major motion picture based on the book "Legacy of Secrecy", authored by Lamar Waldron and Hartmann
Business&Economics
https://en.wikipedia.org/wiki?curid=944577
Thom Hartmann
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Thom Hartmann Hartmann also narrated the 2011 documentary film "" In September 2013, Hartmann was granted an honorary Doctorate of Humane Letters from Goddard College in Port Townsend, Washington. According to President Barbara Vacarr, "Thom's work as a journalist, author and community activist is a living example of the very mission of Goddard College and what our students are committed to—advancing cultures of rigorous inquiry, collaboration and lifelong learning, where individuals take imaginative and responsible action in the world." Hartmann has also served on the board of Voqal, a collaboration of EBS licensees working to advance social equity, since 2009. Hartmann is considered to have progressive/liberal politics (although he describes himself as part of the radical middle). He is the author of numerous books, including "", in which he argues that the 1886 U.S. Supreme Court decision in "Santa Clara County v. Southern Pacific Railroad Company" (118 U.S. 394) did not actually grant corporate personhood, and that this doctrine derives from a mistaken interpretation of a Supreme Court clerk's notes. Hartmann considers this a clear contradiction of the intent of the Founding Fathers of the United States. He has also written on the separation of church and state, drawing upon "The Federalist Papers" to argue that the Founding Fathers warned against the notion of the United States being a Christian nation
Business&Economics
https://en.wikipedia.org/wiki?curid=944577
Thom Hartmann
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Thom Hartmann He contends that the 2000 American election and 2004 American election were stolen through electronic tampering, denial of the voting franchise by rigged voting lists, and limiting availability of voting machines in selected precincts. He also accuses the Bush administration of eroding democracy and individual freedoms. Hartmann is also a vocal critic of the effects of neoliberal globalization on the U.S. economy, claiming that economic policies enacted during and since the presidency of Ronald Reagan have led, in large part, to many American industrial enterprises' being acquired by multinational firms based in overseas countries, leading in many cases to manufacturing jobs'—once considered a major foundation of the U.S. economy—being relocated to countries in Asia and other areas where the costs of labor are lower than in the U.S. and the concurrent reversal of the United States' traditional role of a leading exporter of finished manufactured goods to that of a primary importer of finished manufactured goods (exemplified by massive trade deficits with countries such as China). Hartmann argues that this phenomenon is leading to the erosion of the American middle class, whose survival Hartmann deems critical to the survival of American democracy. This argument is expressed in Hartmann's 2006 book, "Screwed: The Undeclared War Against The Middle Class and What We Can Do About It
Business&Economics
https://en.wikipedia.org/wiki?curid=944577
Thom Hartmann
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Thom Hartmann " One of the book's main arguments is that media deregulation leads to corporate media's shifting the American consensus towards the acceptance of privatization and massive corporate profits—which causes the shrinking of the middle class. In a 2013 interview with "Politico," Hartmann described his political philosophy as democratic socialism: He has three children with his wife Louise. Hartmann has been a vegetarian since he was a teenager. Hartmann has authored in the area of attention-deficit hyperactivity disorder (ADHD) and adult attention-deficit disorder (AADD) and is the creator (first proposed by him in 1978, first published nationally in 1992) of the now well-known hunter vs. farmer hypothesis that ADD is an expected evolutionary adaptation to hunting lifestyles. These individuals have the ability of rapidly shifting their focus and external attention and of holding multiple trains of thought. This ability causes difficulties when they must live and work in cultures in which "farming"—well-planned, predictable, organized and repetitive behaviors—is typical. His first book on the disorder, "Attention Deficit Disorder: a Different Perception" was described by "Scientific American" as "innovative and fresh". Hartmann has established specialized schools for children with ADHD, such as The Hunter School in Rumney, New Hampshire, which he co-founded with his wife Louise. He also operated the "ADD Forum" and "DeskTop Publishing Forum", along with several others, on CompuServe.
Business&Economics
https://en.wikipedia.org/wiki?curid=944577
Thom Hartmann
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Secondary labor market The secondary labor market is the labor market consisting of high-turnover, low-pay, and usually part-time or temporary work. Sometimes, secondary jobs are performed by high school or college students. The majority of service sector, light manufacturing, and retail jobs are considered secondary labor. Secondary market jobs are sometimes referred to as “food and filth” jobs, a reference to workers in fast food, retail, or yard work, for example. A secondary-market job is distinct from a "secondary worker". The latter term refers to someone in a family (traditionally, the wife or a child) who earns a smaller income than the "breadwinner" in order to supplement family income. The existence of the secondary labor market challenges classical explanations of the functioning of the labor market. Classical and neoclassical economists conceived of the labor market as a commodity market: the concurrent interaction of labor supply (rational workers seeking their well-being) and labor demand (rational employers searching to maximize their profits) should determine general employment and wage levels. Additionally, the existence of ethnic enclaves further challenge the neoclassical economic thought as immigrants are able to enter a supposed third labor market, which cater specifically to the needs of ethnic minorities. These traditional theories leave unexplained major real-life issues, such as the large differences observed among wages and employment conditions in the current labor market
Business&Economics
https://en.wikipedia.org/wiki?curid=945919
Secondary labor market
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Secondary labor market The Neoclassical school had argued that these differences were due to disparities in worker productivity based on employees' different human capital endowments, but as critics have pointed out, most of them would be due to institutional factors more than to economic causes. In other words, it is not people that are different but rather job characteristics, and it is not human productivity that is behind the differences but rather market, technical, organizational, and political factors.
Business&Economics
https://en.wikipedia.org/wiki?curid=945919
Secondary labor market
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Crop insurance is purchased by agricultural producers, and subsidized by the federal government, to protect against either the loss of their crops due to natural disasters, such as hail, drought, and floods, or the loss of revenue due to declines in the prices of agricultural commodities. The two general categories of crop insurance are called crop-yield insurance and crop-revenue insurance. On average, the federal government subsidizes 62 percent of the premium. In 2019, crop insurance policies covered almost 380 million acres. Major crops are insurable in most counties where they are grown, and approximately 90% of U.S. crop acreage is insured under the federal crop insurance program. Four crops—corn, cotton, soybeans, and wheat— typically account for more than 70% of total enrolled acres. For these major crops, a large share of plantings is covered by crop insurance. A farmer or grower may desire to grow a crop associated with a particular defined attribute that potentially qualifies for a premium over similar commodity crops, agricultural products, or derivatives thereof. The particular attribute may be associated with the genetic composition of the crop, certain management practices of the grower, or both. However, many standard crop insurance policies do not differentiate between commodity crops and crops associated with particular attributes. Accordingly, farmers have a need for crop insurance to cover the risk of growing crops associated with particular attributes
Business&Economics
https://en.wikipedia.org/wiki?curid=952258
Crop insurance
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Crop insurance In the United States, a subsidized multi-peril federal insurance program, administered by the Risk Management Agency, is available to most farmers. The program is authorized by the Federal Crop Insurance Act (which is actually title V of the Agricultural Adjustment Act of 1938, P.L. 75-430), as amended. Federal crop insurance is available for more than 100 different crops, although not all insurable crops are covered in every county. With the amendments to the Federal Crop Insurance Act made by the Federal Crop Insurance Reform Act of 1994 (P.L. 103-354, Title I) and the Agriculture Risk Protection Act of 2000 (P.L. 106-224), USDA is authorized to offer basically free catastrophic (CAT) coverage to producers who grow an insurable crop. For a premium, farmers can buy additional coverage beyond the CAT level. Crops for which insurance is not available are protected under the Noninsured Assistance Program (NAP). Federal crop insurance is sold and serviced through private insurance companies. A portion of the premium, as well as the administrative and operating expenses of the private companies, is subsidized by the federal government. The Federal Crop Insurance Corporation reinsures the companies by absorbing some of the losses of the program when indemnities exceed total premiums. Several revenue insurance products are available on major crops as a form of additional coverage. In 1938, Congress passed the Federal Crop Insurance Act, which established the first Federal Crop Insurance Program
Business&Economics
https://en.wikipedia.org/wiki?curid=952258
Crop insurance
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Crop insurance These early efforts were not particularly successful due to high program costs and low participation rates among farmers. The program had difficulty amassing sufficient reserves to pay claims and was not financially viable. In 1980, Congress passed legislation to increase participation in the Federal Crop Insurance Program and make it more affordable and accessible. This modern era of crop insurance was marked by the introduction of a public-private partnership between the U.S. government and private insurance companies. The Federal Crop Insurance Reform Act of 1994 dramatically restructured the program. And in 1996, the Risk Management Agency (RMA) was created in the U.S. Department of Agriculture to administer the Federal Crop Insurance Program. Through subsidies built into the new program guidelines, participation increased dramatically. By 1998, more than 180 million acres of farmland were insured under the program, representing a three-fold increase over 1988. In 2019, farmers purchased 1.1 million crop insurance policies, protecting almost 380 million acres of farmland, with new liabilities in excess of $110 billion. These policies covered roughly 90 percent of eligible acres. Record indemnities were paid out to farmers and ranchers in 2012, totaling more than $17 billion. (4) Today, the Federal Crop Insurance Program is the primary risk management program available to U.S
Business&Economics
https://en.wikipedia.org/wiki?curid=952258
Crop insurance
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Crop insurance agricultural producers and a vital component of the farm safety net, addressing both the risks associated with price volatility and with unexpected disasters.(5) is a risk-based program that currently covers more than 100 crops (6) and does not make annual subsidy payments to farmers. When crop insurance does supply monetary payments to farmers, the payments come in the form of indemnity checks that restore a portion of an actual loss. Many farmers pay crop insurance premium costs for a number of years without receiving indemnity payments because they have not experienced an actual loss. (7) In Canada, the history of CI (Crop Insurance) begins in 1939 with the introduction of the Prairie Farm Assistance Act by the Canadian Government. This act provided permanent crop loss disaster assistance for grain producers in the Prairies and the Peace River area. In 1959, the CI Act was passed to replace the Prairie Farm Assistance Act and provide more adequate protection to farmers in all provinces. CI has been a key federal support program since 1959 aimed at helping to stabilize farm incomes against production related risks. The reason governments got involved in CI was because the market failed to provide risk management tools for farmers to deal appropriately with production risk
Business&Economics
https://en.wikipedia.org/wiki?curid=952258
Crop insurance
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Crop insurance CI has varied little over the years in that it was designed on the basis of participation by both levels of government (federal and provincial) and producers, shared program costs, voluntary participation, provincial administration, and actuarial soundness in the long run. The CI Act of 1959 enabled the federal government to assist provinces in making CI available to producers at a 60% coverage level. Originally the federal government's share of total premiums was 20%, with a 50% share of administrative expenses. In 1964, the Act was amended to incorporate general provisions for a reinsurance agreement between the provinces and the federal government. Further amendments were made in 1966 and 1970 concerning coverage levels and the federal government contribution to total premiums. The next amendment to the Act, in 1973, provided two options for the federal-provincial-producer cost-sharing arrangements. In one option, the federal and provincial governments each contributed 25% of total premiums and 50% of administrative costs. In the other option, the federal government contributed a total of 50% of premiums and the provinces paid all administrative costs. In the 1990 amendment, the maximum coverage was increased to 90% for low risk crops. Furthermore, the single cost-sharing formula was adopted, where the federal government and provinces each pay 25% of total premiums and 50% of administration costs
Business&Economics
https://en.wikipedia.org/wiki?curid=952258
Crop insurance
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Crop insurance Other changes included waterfowl crop damage compensation, and regulations concerning self-sustainability and actuarial soundness requirements. Although federal legislation establishes the national framework, much flexibility exists for provinces to modify the program to meet the needs of their producers. Provincial plans are developed through consultations with all three parties on a commodity basis. CI is available in all provinces for a wide variety of crops but coverage is not universal, nor are participation rates necessarily high although the cost of the program is subsidized by government. AAFC allocates approximately $200 million per year to CI from its total safety net envelope of $600 million. In 1996–97 it is estimated that the federal government's expenditures reached $207 million compared to an average of $166 million over the three previous years (AAFC 1997b). Provincial governments spent $251 million in 1996-97 which compares to an average of $175 million over the previous three crop years. By far the largest component of the program covers grain and oilseed production on the Prairies, but even here participation has fallen below 60% of seeded area. In India a multiperil crop insurance called National Agriculture Insurance Scheme (NAIS) was implemented. This scheme is being implemented by Agriculture Insurance Company of India, an Indian government owned company. The scheme is compulsory for all farmers who take agricultural loans from any financial institution
Business&Economics
https://en.wikipedia.org/wiki?curid=952258
Crop insurance
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Crop insurance It is voluntary for all other farmers. The premium is subsidized for farmers who own less than two hectares of land. This insurance follows the area approach. This means that instead of individual farmers, a specific area is insured. The area may vary from gram panchayat (an administrative unit containing 8-10 villages) or block or district from crop to crop or state to state. The claim is calculated on the basis of crop cutting experiments carried out by agricultural departments of respective states. Any shortfall in yield compared to past 5 years average yield is compensated.
Business&Economics
https://en.wikipedia.org/wiki?curid=952258
Crop insurance
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Genuine progress indicator (GPI) is a metric that has been suggested to replace, or supplement, gross domestic product (GDP) . The GPI is designed to take fuller account of the well-being of a nation, only a part of which pertains to the size of the nation's economy, by incorporating environmental and social factors which are not measured by GDP. For instance, some models of GPI decrease in value when the poverty rate increases. The GPI separates the concept of societal progress from economic growth. The GPI is used in ecological economics, "green" economics, sustainability and more inclusive types of economics. It factors in environmental and carbon footprints that businesses produce or eliminate, including in the forms of resource depletion, pollution and long-term environmental damage. GDP is increased twice when pollution is created, since it increases once upon creation (as a side-effect of some valuable process) and again when the pollution is cleaned up; in contrast, GPI counts the initial pollution as a loss rather than a gain, generally equal to the amount it will cost to clean up later plus the cost of any negative impact the pollution will have in the meantime. While quantifying costs and benefits of these environmental and social externalities is a difficult task, "Earthster-type databases could bring more precision and currency to GPI's metrics
Business&Economics
https://en.wikipedia.org/wiki?curid=972079
Genuine progress indicator
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Genuine progress indicator " It has been noted that such data may also be embraced by those who attempt to "internalize externalities" by making companies pay the costs of the pollution they create (rather than having the government or society at large bear those costs) "by taxing their goods proportionally to their negative ecological and social impacts". GPI is an attempt to measure whether the environmental impact and social costs of economic production and consumption in a country are negative or positive factors in overall health and well-being. By accounting for the costs borne by the society as a whole to repair or control pollution and poverty, GPI balances GDP spending against external costs. GPI advocates claim that it can more reliably measure economic progress, as it distinguishes between the overall "shift in the 'value basis' of a product, adding its ecological impacts into the equation". Comparatively speaking, the relationship between GDP and GPI is analogous to the relationship between the gross profit of a company and the net profit; the net profit is the gross profit minus the costs incurred, while the GPI is the GDP (value of all goods and services produced) minus the environmental and social costs. Accordingly, the GPI will be zero if the financial costs of poverty and pollution equal the financial gains in production of goods and services, all other factors being constant
Business&Economics
https://en.wikipedia.org/wiki?curid=972079
Genuine progress indicator
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Genuine progress indicator Most economists assess progress in people's welfare by comparing the gross domestic product over time—that is, by adding up the annual dollar value of all goods and services produced within a country over successive years. However, GDP was not intended to be used for such purpose. It is prone to productivism or consumerism, over-valuing production and consumption of goods, and not reflecting improvement in human well-being. It also does not distinguish between money spent for new production and money spent to repair negative outcomes from previous expenditure. For example, it would treat as equivalent one million dollars spent to build new homes and one million dollars spent in aid relief to those whose homes have been destroyed, despite these expenditures arguably not representing the same kind of progress. This is relevant for example when considering the true costs of development that destroys wetlands and hence exacerbate flood damages. Simon Kuznets, the inventor of the concept of GDP, noted in his first report to the US Congress in 1934:the welfare of a nation can scarcely be inferred from a measure of national income. If the GDP is up, why is America down? Distinctions must be kept in mind between quantity and quality of growth, between costs and returns, and between the short and long run. Goals for more growth should specify more growth of what and for what
Business&Economics
https://en.wikipedia.org/wiki?curid=972079
Genuine progress indicator
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Genuine progress indicator Some have argued that an adequate measure must also take into account ecological yield and the ability of nature to provide services, and that these things are part of a more inclusive ideal of progress, which transcends the traditional focus on raw industrial production. The need for a GPI to supplement indicators such as GDP was highlighted by analyses of uneconomic growth in the 1980s, notably that of Marilyn Waring, who studied biases in the UN System of National Accounts. By the early 1990s, there was a consensus in human development theory and ecological economics that growth in money supply was actually reflective of a loss of well-being: that lacks of essential natural and social services were being paid for in cash and that this was expanding the economy but degrading life. The matter remains controversial and is a main issue between advocates of green economics and neoclassical economics. Neoclassical economists understand the limitations of GDP for measuring human well-being but nevertheless regard GDP as an important, though imperfect, measure of economic output and would be wary of too close an identification of GDP growth with aggregate human welfare. However, GDP tends to be reported as synonymous with economic progress by journalists and politicians, and the GPI seeks to correct this shorthand by providing a more encompassing measure. Some economists, notably Herman Daly, John B
Business&Economics
https://en.wikipedia.org/wiki?curid=972079
Genuine progress indicator
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Genuine progress indicator Cobb and Philip Lawn, have asserted that a country's growth, increased goods production, and expanding services have both "costs" and "benefits"—not just the "benefits" that contribute to GDP. They assert that, in some situations, expanded production facilities damage the health, culture, and welfare of people. Growth that was in excess of sustainable norms (e.g., of ecological yield) had to be considered to be uneconomic. According to the "threshold hypothesis", developed by Manfred Max-Neef, "when macroeconomic systems expand beyond a certain size, the additional benefits of growth are exceeded by the attendant costs" (Max-Neef 1995). This hypothesis is borne out in data comparing GDP/capita with GPI/capita from 17 countries. The graph demonstrates that, while GDP does increase overall well-being to a point, beyond $7,000 GDP/capita the increase in GPI is reduced or remains stagnant. Similar trends can be seen when comparing GDP to life satisfaction as well as in a Gallup Poll published in 2008. According to Lawn's model, the "costs" of economic activity include the following potential harmful effects: Analysis by Robert Costanza also around 1995 of nature's services and their value showed that a great deal of degradation of nature's ability to clear waste, prevent erosion, pollinate crops, etc., was being done in the name of monetary profit opportunity: this was adding to GDP but causing a great deal of long term risk in the form of mudslides, reduced yields, lost species, water pollution, etc
Business&Economics
https://en.wikipedia.org/wiki?curid=972079
Genuine progress indicator
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Genuine progress indicator Such effects have been very marked in areas that suffered serious deforestation, notably Haiti, Indonesia, and some coastal mangrove regions of India and South America. Some of the worst land abuses for instance have been shrimp farming operations that destroyed mangroves, evicted families, left coastal lands salted and useless for agriculture, but generated a significant cash profit for those who were able to control the export market in shrimp. This has become a signal example to those who contest the idea that GDP growth is necessarily desirable. GPI systems generally try to take account of these problems by incorporating sustainability: whether a country's economic activity over a year has left the country with a better or worse future possibility of repeating at least the same level of economic activity in the long run. For example, agricultural activity that uses replenishing water resources, such as river runoff, would score a higher GPI than the same level of agricultural activity that drastically lowers the water table by pumping irrigation water from wells. Hicks (1946) pointed out that the practical purpose of calculating income is to indicate the maximum amount that people can produce and consume without undermining their capacity to produce and consume the same amount in the future
Business&Economics
https://en.wikipedia.org/wiki?curid=972079
Genuine progress indicator
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Genuine progress indicator From a national income perspective, it is necessary to answer the following question: "Can a nation's entire GDP be consumed without undermining its ability to produce and consume the same GDP in the future?" This question is largely ignored in contemporary economics but fits under the idea of sustainability. The best-known attempts to apply the concepts of GPI to legislative decisions are probably the Atlantic indicator invented by Ronald Colman for Atlantic Canada, the Alberta GPI created by ecological economist Mark Anielski to measure the long-term economic, social and environmental sustainability of the province of Alberta and the "environmental and sustainable development indicators" used by the Government of Canada to measure its own progress to achieving well-being goals: its Environment and Sustainable Development Indicators Initiative (Canada) is an effort to justify state services in GPI terms. It assigns the Commissioner for the Environment and Sustainable Development (Canada), an officer in the Auditor-General of Canada's office, to perform the analysis and report to the House of Commons. However, Canada continues to state its overall budgetary targets in terms of reducing its debt to GDP ratio, which implies that GDP increase and debt reduction in some combination are its main priorities. In the European Union (EU) the Metropole efforts and the London Health Observatory methods are equivalents focused mostly on urban lifestyle
Business&Economics
https://en.wikipedia.org/wiki?curid=972079
Genuine progress indicator
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Genuine progress indicator The EU and Canadian efforts are among the most advanced in any of the G8 or OECD nations, but there are parallel efforts to measure quality of life or standard of living in health (not strictly wealth) terms in all developed nations. This has also been a recent focus of the labour movement. The calculation of GPI presented in the simplified form is the following: GPI = A + B - C - D + I A is income weighted private consumption B is value of non-market services generating welfare C is private defensive cost of natural deterioration D is cost of deterioration of nature and natural resources I is increase in capital stock and balance of international trade The GPI indicator is based on the concept of sustainable income, presented by economist John Hicks (1948). The sustainable income is the amount a person or an economy can consume during one period without decreasing his or her consumption during the next period. In the same manner, GPI depicts the state of welfare in the society by taking into account the ability to maintain welfare on at least the same level in the future. The Genuine Progress Indicator is measured by 26 indicators which can be divided into three main categories: Economic, Environmental, and Social. Some regions, nations, or states may adjust the verbiage slightly to accommodate their particular scenario
Business&Economics
https://en.wikipedia.org/wiki?curid=972079
Genuine progress indicator
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Genuine progress indicator For example, the GPI template uses the phrase "Carbon Dioxide Emissions Damage" whereas the state of Maryland uses "Cost of Climate Change" because it also accounts for other greenhouse gases (GHG) such as methane and nitrous oxide. Non-profit organizations and universities have measured the GPI of Vermont, Maryland, Colorado, Ohio, and Utah. These efforts have incited government action in some states. As of 2014, Vermont, Maryland, Washington and Hawai'i have passed state government initiatives to consider GPI in budgeting decisions, with a focus on long-term cost and benefits. In 2009, the state of Maryland formed a coalition of representatives from several state government departments in search of a metric that would factor social well-being into the more traditional gross product indicators of the economy. The metric would help determine the sustainability of growth and economic progress against social and environmental factors typically left out of national indicators. The GPI was chosen as a comprehensive measure of sustainability as it has a well-accepted scientific methodology that can be adopted by other states and compared over time. Maryland's GPI trends are comparable to other states and nations that have measured their GPI in that Gross State Product (GSP) and GPI have diverged over the past four decades where GSP has increased more rapidly than GPI
Business&Economics
https://en.wikipedia.org/wiki?curid=972079
Genuine progress indicator
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Genuine progress indicator While economic elements of GPI have increased overall (with a significant drop off during the Great Recession), social well-being has stagnated, with any values added being cancelled out by costs deducted, and environmental indicators, while improving slightly, are always considered costs. Combined, these elements bring the GPI below GSP. However, Maryland's GPI did increase by two points from 2010 to 2011. The calculation methodology of GPI was first adapted to US data in the late-1990s. Results show that GDP has increased substantially. At the same time, the GPI has stagnated. Thus, according to GPI theory, economic growth in the US, i.e., the growth of GDP, has not increased the welfare of the people during last 30 years. So far, GPI time-series have been calculated for the US and Australia as well as for several of their states. In addition, GPI has been calculated for Austria, Canada, Chile, France, Finland, Italy, the Netherlands, Scotland, and the rest of the UK. The GPI time-series 1945 to 2011 for Finland have been calculated by Statistics Finland. The calculation closely followed the US methodology. The results show that in the 1970s and 1980s economic growth, as measured by GDP, clearly increased welfare, measured by the GPI. After the economic recession of the early-1990s the GDP continued to grow, but the GPI stayed on a lower level. This indicates a widening gap between the trends of GDP and GPI that began in the early-1990s
Business&Economics
https://en.wikipedia.org/wiki?curid=972079
Genuine progress indicator
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Genuine progress indicator In the 1990s and 2000s the growth of GDP has not benefited the average Finn. If measured by GPI, sustainable economic welfare has actually decreased due to environmental hazards that have accumulated in the environment. The Finnish GPI time series have been updated by Dr Jukka Hoffrén at Statistics Finland. Within EU's Interreg IV C FRESH Project (Forwarding Regional Environmental Sustainable Hierarchies) GPI time-series were calculated to Päijät-Häme, Kainuu and South-Ostrobotnia (Etelä-Pohjanmaa) regions in 2009-2010. During 2011 these calculations were completed with GPI calculations for the Lappland, Northern Ostrobothnia (Pohjois-Pohjanmaa) and Central-Ostrobothnia (Keski-Pohjanmaa) regions. GPI considers some types of production to have a negative impact upon being able to continue some types of production. GDP measures the entirety of production at a given time. GDP is relatively straightforward to measure compared to GPI. Competing measures like GPI define well-being, which are arguably impossible to define. Therefore, opponents of GPI claim that GPI cannot function to measure the goals of a diverse, plural society. Supporters of GDP as a measure of societal well-being claim that competing measures such as GPI are more vulnerable to political manipulation. Finnish economists Mika Maliranta and Niku Määttänen write that the problem of alternative development indexes is their attempt to combine things that are incommensurable
Business&Economics
https://en.wikipedia.org/wiki?curid=972079
Genuine progress indicator
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Genuine progress indicator It is hard to say what they exactly indicate and difficult to make decisions based on them. They can be compared to an indicator that shows the mean of a car's velocity and the amount of fuel left. They add that it indeed seems as if the economy has to grow in order for the people to even remain as happy as they are at present. In Japan, for example, the degree of happiness expressed by the citizens in polls has been declining since the early 1990s, the period when Japan's economic growth stagnated.
Business&Economics
https://en.wikipedia.org/wiki?curid=972079
Genuine progress indicator
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Obshchina (, literally "commune") or mir (, literally "society", among other meanings), or selskoye obshchestvo (, "rural community", official term in the 19th and 20th century; ), were peasant village communities as opposed to individual farmsteads, or khutors, in Imperial Russia. The term derives from the word "obshchiy" (, literally "common"). The vast majority of Russian peasants held their land in communal ownership within a mir community which acted as a village government and a cooperative. Arable land was divided in sections based on soil quality and distance from the village. Each household had the right to claim one or more strips from each section depending on the number of adults in the household. The purpose of this allocation was not so much social (to each according to his needs) as it was practical (that each person pay his taxes). Strips were periodically re-allocated on the basis of a census to ensure equitable share of the land. This was enforced by the state which had an interest in the ability of households to pay their taxes. The concept of was an important part in Old Russia and had its roots in Slavic communities. A detailed statistical description of the Russian village commune was provided by Alexander Ivanovich Chuprov. Communal land ownership of the mir predated serfdom, surviving emancipation and the Russian Revolution). Until the abolition of serfdom in 1861, the mir could either contain serfs or free peasants
Business&Economics
https://en.wikipedia.org/wiki?curid=972971
Obshchina
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Obshchina In the first case, lands reserved for serf use were assigned to the mir for allocation by the proprietor. Even after the 1861 emancipation of the serfs, a peasant in his everyday work normally had little independence from obshchina, governed at the village level ("mir") by the full assembly of the community ("skhod"). Among its duties were control and redistribution of the common land and forest (if such existed), levying recruits for military service and imposing punishments for minor crimes. was also held responsible for taxes underpaid by members. This type of shared responsibility was known as "krugovaya poruka" (mutual responsibility), although the exact meaning of this expression has changed over time and now in Russian it has a negative meaning of mutual cover-up. In 1905, repartitional tenure did not exist in the Baltic provinces, but it was used by a quarter of western and southwestern (i.e. Ukrainian) peasants, two thirds of steppe peasants and 96.9% elsewhere. The institution was effectively destroyed by the Stolypin agrarian reforms (1906–1914), the implementation of which would lead to the Russian Revolution and subsequent collectivization in the Soviet Union. The organization of the peasant mode of production is the primary cause for the type of social structure found in the obshchina
Business&Economics
https://en.wikipedia.org/wiki?curid=972971
Obshchina
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Obshchina The relationship between the individual peasant, the family and the community leads to a specific social structure categorized by the creation of familial alliances to apportion risks between members of the community. In the obshchina, alliances were formed primarily through marriage and common descent of kin. Usually, the eldest members of the household made up the mir to govern the redistribution of land. The families came together to form a community that depended on making taxes more equitable and the concept of mutual help. Jovan E. Howe writes: "The economic relations so established are essentially distributive: through various categories of exchanges of both products and labor, temporary imbalances such as those occasioned by insufficient labor power of a newly-established family unit or a catastrophic loss, which places one unit at an unfair reproductive disadvantage in relation to its allies, are evened out". In addition, the alliance system had residual communal rights, sharing exchanges during shortages as well as certain distributive exchanges. Furthermore, the structure defined by these alliances and risk-sharing measures were regulated by scheduling and the ritualization of time. Howe writes that "the traditional calendar of the Russian peasants was a guide for day-to-day living
Business&Economics
https://en.wikipedia.org/wiki?curid=972971
Obshchina
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Obshchina The names attached to calendar dates, the calendrical periods into which they were grouped, the day on the week on which each fell, and the sayings connected with them encoded information about when to undertake tasks, but also about when not to work, when it was necessary to perform symbolic actions, take part in rituals and compulsory celebrations". Peasants (i.e. three-quarters of the population of Russia) formed a class apart, largely excepted from the incidence of the ordinary law and governed in accordance with their local customs. The mir itself, with its customs, is of immemorial antiquity, but it was not until the 1861 emancipation of the serfs that the village community was withdrawn from the patrimonial jurisdiction of the landowning nobility and endowed with self-government. The assembly of the mir consists of all the peasant householders of the village. These elect a Village Elder ("starosta") and a collector of taxes who was responsible, at least until the "ukaz" of October 1906 which abolished communal responsibility for the payment of taxes, for the repartition among individuals of the taxes imposed on the commune. A number of mirs are united into a "volost" which has an assembly consisting of elected delegates from the mirs. The mir was protected from insolvency by the rule that the families cannot be deprived of their houses or implements necessary for agriculture; nor can the mir be deprived of its land
Business&Economics
https://en.wikipedia.org/wiki?curid=972971
Obshchina
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Obshchina The mir or obshchina became a topic in political philosophy with the publication of August von Haxthausen's book in 1847. It was in the mid-19th century that Slavophiles discovered the mir. Romantic nationalists and the Slavophiles hailed the mir as a purely Russian collective, both ancient and venerable; free from what they considered the stain of the bourgeois mindset found in western Europe. Not surprisingly, it was but a short step from this to the mir being used as a basis for Slavophilic idealist theories concerning communism, communalism, communal lands, history, progress and the nature of mankind itself. By the second half of the 19th century, the Slavophiles were challenged by the opposing Western faction. Boris Chicherin, a leading spokesman for the Western school, argued that the mir was neither ancient nor particular to Russia. The mir, the Western school argued, had arisen in the late 17th to early 18th century and was not based on some sort of social contract or communal instinct. Rather, it was a monarchical creation, created and enforced for the purpose of tax collection. Whatever the merits of either case, both schools agreed that the landlord and the state both played a vital role in the development (if not the origin of) the mir: Where (arable) land is scarce, the communal form of tenure tends to prevail, but where ever it (arable land) is abundant it is replaced by household or even family tenue
Business&Economics
https://en.wikipedia.org/wiki?curid=972971
Obshchina
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Obshchina The 19th-century Russian philosophers attached signal importance to obshchina as a unique feature distinguishing Russia from other countries. Alexander Herzen, for example, hailed this pre-capitalist institution as a germ of the future socialist society. His Slavophile opponent Aleksey Khomyakov regarded obshchina as symbolic of the spiritual unity and internal co-operation of Russian society and worked out a sophisticated "Philosophy of Obshchina" which he called sobornost. The European socialist movement looked to this arrangement as evidence that Russian peasants had a history of socialization of property and lacked bourgeois impulses toward ownership: Russia is the sole European country where the "agricultural commune" has kept going on a nationwide scale up to the present day. It is not the prey of a foreign conqueror, as the East Indies, and neither does it lead a life cut off from the modern world. On the one hand, the common ownership of land allows it to transform individualist farming in parcels directly and gradually into collective farming, and the Russian peasants are already practising it in the undivided grasslands; the physical lie of the land invites mechanical cultivation on a large scale; the peasant’s familiarity with the contract of artel facilitates the transition from parcel labour to cooperative labour; and, finally, Russian society, which has so long lived at his expense, owes him the necessary advances for such a transition
Business&Economics
https://en.wikipedia.org/wiki?curid=972971
Obshchina
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Obshchina On the other hand, the contemporaneity of western production, which dominates the world market, allows Russia to incorporate in the commune all the positive acquisitions devised by the capitalist system without passing through its Caudine Forks [i.e. undergo humiliation in defeat].
Business&Economics
https://en.wikipedia.org/wiki?curid=972971
Obshchina
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Snob effect The snob effect is a phenomenon described in microeconomics as a situation where the demand for a certain good by individuals of a higher income level is inversely related to its demand by those of a lower income level. The "snob effect" contrasts most other microeconomic models, in that the demand curve can have a positive slope, rather than the typical negatively sloped demand curve of normal goods. This situation is derived by the desire to own unusual, expensive or unique goods. For consumers who want to use exclusive products, price "is" quality. These goods usually have a high economic value, but low practical value. The less of an item available, the higher its snob value. Examples of such items with general snob value are rare works of art, designer clothing, and sports cars. In all these cases, one can debate whether they meet the snob value criterion, which in itself may vary from person to person. A person may reasonably claim to purchase a designer garment because of a certain threading technique, longevity, and fabric. While this is true in some cases, the desired effect can often be achieved by purchasing a less-expensive version from a reputable brand. Often these high-end items end up as closeout items in discount stores or online retailers where they may be offered at deep discounts from original price, bringing into question the true value of the product. Ultimately, wealthy consumers can be lured by superficial factors such as rarity, celebrity representation and brand prestige
Business&Economics
https://en.wikipedia.org/wiki?curid=975110
Snob effect
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Snob effect Collectors within a specific field can suffer from snob effect, searching for the rarest and often most expensive collectibles. Such examples are classic automobiles, stamps and coins.
Business&Economics
https://en.wikipedia.org/wiki?curid=975110
Snob effect
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Mark Twain effect In some stock markets, the is the phenomenon of stock returns in October being lower than in other months. The name comes from a line in Mark Twain's Pudd'nhead Wilson: "October. This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August, and February." The quotation is a sarcastic assertion that speculation in stocks is always dangerous. The fact that Twain specifically picks out October initially is taken as a reference to an "October effect", as exemplified by the 1929, 1987 and 2008 stock market crashes which roughly occurred in October.
Business&Economics
https://en.wikipedia.org/wiki?curid=975111
Mark Twain effect
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Knowledge worker Knowledge workers are workers whose main capital is knowledge. Examples include programmers, physicians, pharmacists, architects, engineers, scientists, design thinkers, public accountants, lawyers, and academics, and any other white-collar workers, whose line of work requires one to ""think for a living"". Knowledge work can be differentiated from other forms of work by its emphasis on "non-routine" problem solving that requires a combination of convergent and divergent thinking. But despite the amount of research and literature on knowledge work, there is no succinct definition of the term. Mosco and McKercher (2007) outline various viewpoints on the matter. They first point to the most narrow and defined definition of knowledge work, such as Florida's view of it as specifically, "the direct manipulation of symbols to create an original knowledge product, or to add obvious value to an existing one", which limits the definition of knowledge work to mainly creative work. They then contrast this view of knowledge work with the notably broader view which includes the handling and distribution of information, arguing that workers who play a role in the handling and distribution of information add real value to the field, despite not necessarily contributing a creative element. Thirdly, one might consider a definition of knowledge work which includes, "all workers involved in the chain of producing and distributing knowledge products", which allows for a very broad and inclusive categorization of knowledge workers
Business&Economics
https://en.wikipedia.org/wiki?curid=979202
Knowledge worker
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Knowledge worker It should thus be acknowledged that the term "knowledge worker" can be quite broad in its meaning, and is not always definitive in who it refers to. Knowledge workers spend 38% of their time searching for information. They are also often displaced from their bosses, working in various departments and time zones or from remote sites such as home offices and airport lounges. As businesses increase their dependence on information technology, the number of fields in which knowledge workers must operate has expanded dramatically. Even though they sometimes are called "gold collars", because of their high salaries, as well as because of their relative independence in controlling the process of their own work, current research shows that they are also more prone to burnout, and very close "normative control" from organizations they work for, unlike regular workers. Managing knowledge workers can be a difficult task. Most knowledge workers prefer some level of autonomy, and do not like being overseen or managed. Those who manage knowledge workers are often knowledge workers themselves, or have been in the past. Projects must be carefully considered before assigning to a knowledge worker, as their interest and goals will affect the quality of the completed project. Knowledge workers must be treated as individuals
Business&Economics
https://en.wikipedia.org/wiki?curid=979202
Knowledge worker
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Knowledge worker Loo ( 2017) using empirical findings from knowledge workers of two sectors – advertising and IT software sectors – and from three developed countries – England, Japan and Singapore – investigated a specific type of knowledge workers – the creative knowledge workers - as opposed to the generic ones as indicated above. The findings from the analysed empirical data offer a complex picture of this type of work in the knowledge economy where workers use a combination of creativity, abilities, talents, skills, and knowledge towards the eventual production of products and services. This investigation (Loo, 2017) identified a definition of creative knowledge work from four specific roles of copywriting, creative directing, software programming, and systems programme managing in advertising and IT software. The manner in which each of the creative applications is applied is dependent on the role(s) of the creative workers. This type of work includes a complex combination of skill sets or ‘creative knowledge work (ckw) capacities.’ "Creative knowledge workers use a combination of creative applications to perform their functions/roles in the knowledge economy including anticipatory imagination, problem solving, problem seeking, and generating ideas and aesthetic sensibilities" (Loo, 2017, p. 138)
Business&Economics
https://en.wikipedia.org/wiki?curid=979202
Knowledge worker
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Knowledge worker Taking aesthetic sensibility as an example, for a creative director, it is a visual imagery whether still or moving via a camera lens and for a software programmer, it is the innovative technical expertise in which the software is written. Other sector-related creative applications include an emotional connection in the advertising sector and the power of expression and sensitivity in the IT software sector. Terms such as ‘general sponge,’ ‘social chameleon,’ and ‘in tune with the zeitgeist’ were identified which the creative knowledge workers used to identify emotionally with their potential audience in ad making. From the IT software perspective, creative knowledge workers used a ‘sensitivity’ creative application to ascertain business intelligence and as a measurement of information, the software worker might obtain from various parties (Loo, 2017). Creative workers also require abilities and aptitudes. Passion for one's job was generic to the roles investigated in the two sectors and for copywriters, this passion was identified with fun, enjoyment, and happiness in carrying out the role alongside attributes such as honesty (regarding the product), confidence, and patience in finding the appropriate copy. As with the other roles, a creative worker in software programming requires team working and interpersonal skills in order to communicate effectively with those from other disciplinary backgrounds and training
Business&Economics
https://en.wikipedia.org/wiki?curid=979202
Knowledge worker
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Knowledge worker As regards the managerial roles of creative directing and systems programme managing, the abilities to create a vision for the job in hand, to convince, strategize, execute, and plan towards the eventual completion of the given task (such as a campaign or a software) are necessary capacities (Loo, 2017). Linking these abilities and capacities are collaborative ways of working, which the findings from this study have identified. The two modes of working ranged from individual to collaborative where a worker might be doing either or both depending on the specific activity. The abilities to traverse between these two work modes alongside the relevant creative application are part of the complexity of this style of working. Creative workers also require an understanding of various forms of knowledge (Loo, 2017). These are related to disciplines such as those from the humanities (e.g., literature), and the creative arts such as painting and music (e.g., popular and classical varieties). Creative knowledge workers also require technical-related knowledge such as mathematics and computer sciences (e.g., software engineering) and physical sciences (e.g., physics) though there are distinctions in the two sectors. In the IT software sector, technical knowledge of software languages is especially significant for programmers as ascertained in the findings
Business&Economics
https://en.wikipedia.org/wiki?curid=979202
Knowledge worker
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Knowledge worker However, the degree of technical expertise may be less for a programme manager, as only knowledge of the relevant software language is necessary to understand the issues for communicating with the team of developers and testers. The technical know-how for a creative director relates only to the understanding of the possibilities of technologies (such as graphics and typography) in order to capitalise on the technical wizardry. The technical specialists are then required to execute the creative director's vision. The above types of disciplinary knowledge may appear in explicit formats, which can be learnt from formal programmes at teaching institutions such as higher education and professional institutions alongside other skills and abilities relating to presentation, communication, and team working. As ascertained in the findings, there was other non-disciplinary knowledge, which was not explicit but tacit in nature. Interviewees mentioned tacit experiences from their past work and life experiences, which they used to draw upon in performing their creative knowledge work. This form of knowledge was harnessed collectively as a team (of an advertising campaign or a software programme). This collaborative approach to working, especially with roles such as creative directing and software programme managing, requires tacit knowledge of the strengths and weaknesses and the needs and wants of the related team members (knowledge of psychology)
Business&Economics
https://en.wikipedia.org/wiki?curid=979202
Knowledge worker
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Knowledge worker This form of working may occur within the organisation, as a stand-alone group for a specific project in the organisation, or as a sub-contracted team outside the organisation. Within this role, creative knowledge workers may perform their activities individually and/or collectively as part of their contribution to the project. The findings also brought out some characteristics of collaborative working such as the varieties of stakeholders such as sub-contracted groups, and the indirect relationships between clients, workers (of an ad agency), and consumers (Loo, 2017). The term is often incorrectly said to have been first coined by Peter Drucker in "The Landmarks of Tomorrow" (1959), which was his first use of the term 'knowledge work' but not 'knowledge worker'. Drucker first coined the term 'knowledge worker' in "The Effective Executive" in 1966. Later, in 1999, he suggested that "the most valuable asset of a 21st-century institution, whether business or non-business, will be its knowledge workers and their productivity." Paul Alfred Weiss (1960) said that "knowledge grows like organisms, with data serving as food to be assimilated rather than merely stored". Popper (1963) stated there is always an increasing need for knowledge to grow and progress continually, whether tacit (Polanyi, 1976) or explicit
Business&Economics
https://en.wikipedia.org/wiki?curid=979202
Knowledge worker
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Knowledge worker Toffler (1990) observed that typical knowledge workers (especially R&D scientists and engineers) in the age of knowledge economy must have some system at their disposal to "create, process and enhance" their own knowledge. In some cases they would also need to manage the knowledge of their co-workers. Nonaka (1991) described knowledge as the fuel for innovation, but was concerned that many managers failed to understand how knowledge could be leveraged. Companies are more like living organisms than machines, he argued, and most viewed knowledge as a static input to the corporate machine. Nonaka advocated a view of knowledge as renewable and changing, and that knowledge workers were the agents for that change. Knowledge-creating companies, he believed, should be focused primarily on the task of innovation. This laid the foundation for the new practice of knowledge management, or "KM", which evolved in the 1990s to support knowledge workers with standard tools and processes. Savage (1995) describes a knowledge-focus as the third wave of human socio-economic development. The first wave was the Agricultural Age with wealth defined as ownership of land. In the second wave, the Industrial Age, wealth was based on ownership of Capital, i.e. factories. In the Knowledge Age, wealth is based upon the ownership of knowledge and the ability to use that knowledge to create or improve goods and services. Product improvements include cost, durability, suitability, timeliness of delivery, and security
Business&Economics
https://en.wikipedia.org/wiki?curid=979202
Knowledge worker
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Knowledge worker Using data, in the Knowledge Age, 2% of the working population will work on the land, 10% will work in Industry and the rest will be knowledge workers. Davenport (2005) says that the rise of knowledge work has actually been foreseen for years. He points to the fact that Fritz Machlup did a lot of the early work on both knowledge as well as knowledge work roles and as early as 1958 stated that the sector was growing much faster than the rest of the economy with knowledge workers making up almost a third of the workforce in the United States. "According to the Organization for Economic Co-operation and Development (1981), by the beginning of the 1970s around 40 percent of the working population in the USA and Canada were classified to the information sector, whereas in most other OECD countries the figures were still considerably lower." As of 2016, an average of 1.9 million knowledge worker positions had been added every year since 1980, more than any other type of role. Tapscott (2006) sees a strong, on-going linkage between knowledge workers and innovation, but the pace and manner of interaction have become more advanced. He describes social media tools on the internet that now drive more powerful forms of collaboration. Knowledge workers engage in ‘’peer-to-peer’’ knowledge sharing across organizational and company boundaries, forming networks of expertise. Some of these are open to the public
Business&Economics
https://en.wikipedia.org/wiki?curid=979202
Knowledge worker
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Knowledge worker While he echoes concern over copyright and intellectual property law being challenged in the marketplace, he feels strongly that businesses must engage in collaboration to survive. He sees on-going alliance of public (government) and private (commercial) teams to solve problems, referencing the open source Linux operating system along with the Human Genome Project as examples where knowledge is being freely exchanged, with commercial value being realized. Palmer (2014) researched knowledge worker productivity and work patterns. Part of this research has involved the analysis of how an average knowledge worker spends their day. He notes that effective and efficient knowledge work relies on the smooth navigation of unstructured processes and the elaboration of custom and one-off procedures. "As we move to the 21st century business model, the focus must be on equipping knowledge workers with tools and infrastructure that enable communication and information sharing, such as networking, e-mail, content management and increasingly, social media." Palmer points to the emergence of Adaptive Case Management (also known as Dynamic or Advanced case management) representing the paradigm shift triggered by the appearance from adapting business practices to the design of IT systems, to building systems that reflect how work is actually performed
Business&Economics
https://en.wikipedia.org/wiki?curid=979202
Knowledge worker
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Knowledge worker Due to the rapid global expansion of information-based transactions and interactions being conducted via the Internet, there has been an ever-increasing demand for a workforce that is capable of performing these activities. Knowledge Workers are now estimated to outnumber all other workers in North America by at least a four to one margin. While knowledge worker roles overlap heavily with professions that require college degrees, the comprehensive nature of knowledge work in today's connected workplace requires virtually all workers to obtain these skills at some level. To that end, the public education and community college systems have become increasingly focused on lifelong learning to ensure students receive skills necessary to be productive knowledge workers in the 21st century. Many of the knowledge workers currently entering the workforce are from the generation X demographic. These new knowledge workers value lifelong learning over lifelong employment. "They seek employability over employment [and] value career over self-reliance" (Elsdon and Iyer, 1999). Where baby boomers are proficient in specified knowledge regarding a specific firm, generation X knowledge workers acquire knowledge from many firms and take that knowledge with them from company to company (2002). Knowledge workers bring benefits to organizations in a variety of ways
Business&Economics
https://en.wikipedia.org/wiki?curid=979202
Knowledge worker
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Knowledge worker These include: These knowledge worker contributions are in contrast with activities that they would typically "not" be asked to perform, including: There is a set of transitional tasks which include roles that are seemingly routine, but that require deeper technology, product, or customer knowledge to fulfill the function. These include: Generally, if the knowledge can be retained, knowledge worker contributions will serve to expand the knowledge assets of a company. While it can be difficult to measure, this increases the overall value of its intellectual capital. In cases where the knowledge assets have commercial or monetary value, companies may create patents around their assets, at which point the material becomes restricted intellectual property. In these knowledge-intensive situations, knowledge workers play a direct, vital role in increasing the financial value of a company. They can do this by finding solutions on how they can find new ways to make profits. This can also be related with market and research. Davenport (2005) says that even if knowledge workers are not a majority of all workers, they do have the most influence on their economies. He adds that companies with a high volume of knowledge workers are the most successful and fastest growing in leading economies including the United States. Reinhardt et al.'s (2011) review of current literature shows that the roles of knowledge workers across the workforce are incredibly diverse
Business&Economics
https://en.wikipedia.org/wiki?curid=979202
Knowledge worker
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Knowledge worker In two empirical studies they have "proposed a new way of classifying the roles of knowledge workers and the knowledge actions they perform during their daily work." The typology of knowledge worker roles suggested by them are "controller, helper, learner, linker, networker, organizer, retriever, sharer, solver, and tracker": Drucker (1966) defines six factors for knowledge worker productivity: The theory of Human Interaction Management asserts that there are 5 principles characterizing effective knowledge work: Another, more recent breakdown of knowledge work (author unknown) shows activity that ranges from tasks performed by individual knowledge workers to global social networks. This framework spans every class of knowledge work that is being or is likely to be undertaken. There are seven levels or scales of knowledge work, with references for each are cited. The hierarchy ranges from the effort of individual specialists, through technical activity, professional projects, and management programs, to organizational strategy, knowledge markets, and global-scale networking. This framework is useful for positioning the myriad types of knowledge work relative to each other and within the context of organizations, markets, and the global knowledge economy. It also provides a useful context for planning, developing, and implementing knowledge management projects. Loo (2017) investigates how a particular group - creative knowledge workers – carries out their jobs and learns within it
Business&Economics
https://en.wikipedia.org/wiki?curid=979202
Knowledge worker
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Knowledge worker Using empirical data from advertising and software development in England, Japan and Singapore, it develops a new conceptual framework to analyse the complexities of creative knowledge work. The framework draws from four disciplines of business and management, economics, sociology and psychology (Loo, 2017, p. 59). Focusing uniquely on the human element of working in the knowledge economy, Loo explores the real world of how people work in this emerging phenomenon and examines the relationships between knowledge and creative dimensions to provide new frameworks for learning and working. This research identified three levels of creative knowledge applications. They relate to intra-sectoral approaches, inter-sectoral approaches (where jobs require different styles of work depending on the sectors), and changes in culture/practices in the sectors. With the intra-sectoral work, they refer to the roles and functions of specific jobs in each of the two sectors of advertising (e.g. copywriting and creative directing) and software development (e.g. software developing and software programme managing). With the inter-sectoral work, it may include software programme managers having different functions when working in different organisations – e.g. a computer software company and a multinational financial organisation. With the last type of creative working, it may include aspects such as the culture of ‘good practice’ in technical problem-solving and the ‘power of expression’ in software programming
Business&Economics
https://en.wikipedia.org/wiki?curid=979202
Knowledge worker
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Knowledge worker All the three types of micro-level of creative knowledge work offer a highly contextualized understanding of how these workers operate in the knowledge economy. This approach is different from that taken by Zuboff (1988), Drucker (1993), Nonaka and Takeuchi (1995) and Reich (2001) who sought to provide a more generic understanding (Loo, 2017). Finally, complex creative knowledge work needs a supportive environment. One such environment relates to the supporting technical base. Based on the findings, information, communications and electronic technologies (ICET) are viewed as an organisational tool, a source of ideas (such as the Internet), and a way of modelling a concept. It may also be applied to inter-sectoral activities such as software for cross-disciplinary applications. This organisational tool enables creative knowledge workers to devote their energies to multi-faceted activities such as analysis of huge data sets and the enabling of new jobs such as webpage designing. ICET enables workers to spend more time on advanced activities, which leads to the intensification of creative applications. Lastly, it was noted from the findings that a supportive environment focused on training, work environment, and education (Loo, 2017 Loo, S. (2017) Creative Working in the Knowledge Economy. Abingdon: Routledge).
Business&Economics
https://en.wikipedia.org/wiki?curid=979202
Knowledge worker
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Graham number The or Benjamin is a figure used in securities investing that measures a stock's so-called fair value. Named after Benjamin Graham, the founder of value investing, the can be calculated as follows: formula_1 The final number is, theoretically, the maximum price that a defensive investor should pay for the given stock. Put another way, a stock priced below the Graham Number would be considered a good value, if it also meets a number of other criteria. Graham writes: Earnings per share is calculated by dividing "net income" by "shares outstanding". Book value is another way of saying "shareholders' equity". Therefore, book value per share is calculated by dividing "equity" by "shares outstanding". Consequently, the formula for the can also be written as follows: formula_2
Business&Economics
https://en.wikipedia.org/wiki?curid=979503
Graham number
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Shock (economics) In economics, a shock is an unexpected or unpredictable event that affects an economy, either positively or negatively. Technically, it is an unpredictable change in exogenous factors — that is, factors unexplained by economics — which may influence endogenous economic variables. The response of economic variables, such as output and employment, at the time of the shock and at subsequent times, is measured by an impulse response function. If the shock is due to constrained supply, it is called a supply shock and usually results in price increases for a particular product. A technology shock is the kind resulting from a technological development that affects productivity. Supply shocks can also be produced when accidents or disasters occur. The 2008 Western Australian gas crisis resulting from a pipeline explosion at Varanus Island is one example. An inflationary shock happens when prices of commodities increase abruptly (e.g., following a decrease in government subsidies) while not all salaries are adjusted immediately throughout society (this leads to a temporary loss of purchasing power for many consumers); or that production costs fall behind corporate revenues for the same set of reasons (e.g. following energy price hikes). A demand shock is a sudden change in patterns of private expenditure, especially of consumption spending by consumers or of investment spending by businesses
Business&Economics
https://en.wikipedia.org/wiki?curid=982802
Shock (economics)
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Shock (economics) A monetary policy shock occurs when a central bank departs, without advance warning, from its pattern of interest rate or money supply control. A fiscal policy shock is an unexpected change in government spending or taxation levels. In the context of microeconomics, shocks are also studied at the household level such as health, income, and consumption shocks. For example, in development microeconomics the relationship between household income shocks and household levels of consumption is studied to understand a household's ability to insure itself (testing the full-insurance hypothesis).
Business&Economics
https://en.wikipedia.org/wiki?curid=982802
Shock (economics)
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Lifestyle business A lifestyle business is a business set up and run by its founders primarily with the aim of sustaining a particular level of income and no more; or to provide a foundation from which to enjoy a particular lifestyle. Some types of enterprise are more accessible than others to the would-be lifestyle business person. Those requiring extensive capital (for example: car manufacturing) are difficult to launch and sustain on a lifestyle basis; others such as small creative industries businesses are more practical for sole practitioners or small groups such as husband-and-wife teams. Lifestyle businesses typically have limited scalability and potential for growth because such growth would destroy the lifestyle for which their owner-managers set them up. However, lifestyle businesses can and do win awards and provide satisfaction to their owners and customers. If sufficient high-quality creative producers begin to naturally cluster together, such as in Brighton, England, during the 1990s, the perception of a place can be radically changed (see Porter's cluster). The term is used in both favorable and derogatory manners. An example of individuals who promote the concept of Lifestyle Businesses favorably include Tim Ferriss's The 4-Hour Workweek and other numerous blogs that emphasize the concept of passive income with the same goal of Lifestyle Businesses. These individuals create an image of lifestyle businesses and passive income that promotes an easy lifestyle and something that individuals should aspire towards
Business&Economics
https://en.wikipedia.org/wiki?curid=985939
Lifestyle business
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Lifestyle business In the derogatory sense, a business started with the intention of becoming a startup, but which instead becomes a smaller business is often referred to as a lifestyle business by investors or other detractors.
Business&Economics
https://en.wikipedia.org/wiki?curid=985939
Lifestyle business
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Total shareholder return (TSR) (or simply total return) is a measure of the performance of different companies' stocks and shares over time. It combines share price appreciation and dividends paid to show the total return to the shareholder expressed as an annualized percentage. It is calculated by the growth in capital from purchasing a share in the company assuming that the dividends are reinvested each time they are paid. This growth is expressed as a percentage as the compound annual growth rate. The main benefit of TSR is that it allows the performance of shares to be compared even though some of the shares may have a high growth and low dividends and others may have low growth and high dividends. Most stock market indices only use the growth of the prices of the companies making up the index. However, when they use TSR for the companies it is called a total return index or accumulation index. For example, corresponding to the S&P 500 index calculated by Standard and Poor's, there is the S&P 500 TR index. In the technology sector, a study has found that regardless of a company's size, the more diverse the portfolio, the more difficult it is to generate high TSR. In practice TSR is difficult to calculate since it involves knowing the price of the shares at the time the dividends are paid
Business&Economics
https://en.wikipedia.org/wiki?curid=986625
Total shareholder return
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Total shareholder return However, as an approximation over one year it can be calculated as follows with: formula_1 = share price at beginning of year, formula_2 = share price at end of year, "Dividends" = dividends paid over year and "TSR" = total shareholder return, TSR is computed as formula_3
Business&Economics
https://en.wikipedia.org/wiki?curid=986625
Total shareholder return
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Maurice Dobb Maurice Herbert Dobb (24 July 1900 – 17 August 1976) was a British economist at Cambridge University and a Fellow of Trinity College, Cambridge. He is remembered as one of the pre-eminent Marxist economists of the 20th century. was born on 24 July 1900 in London, the son of Walter Herbert Dobb and the former Elsie Annie Moir. Dobb and his family lived in Willesden, a suburb of London. Dobb was educated at Charterhouse School in Surrey, an independent boarding school. He began writing after the death of his mother, during his early teenage years, and his covert, introverted personality prevented him from building a network of friends. His earliest novels were fictional fantasies. Much like his father, Dobb initiated practice in Christian Science after his mother's death; the family had previously belonged to the Presbyterian church. Saved from military conscription by the Armistice of November 1918, Dobb was admitted to Pembroke College, Cambridge, in 1919 as an exhibitioner to study economics. Dobb gained firsts in both parts of the economics tripos in 1921 and 1922 and was admitted to the London School of Economics for graduate studies. Following his achievement of a PhD in 1924, Dobb returned to Cambridge to take up a post as University lecturer. In 1920, after Dobb’s first year at Pembroke College, John Maynard Keynes invited Dobb to join the Political Economy Club, and after graduation Keynes helped him secure a position at Cambridge. Dobb was open with his students about his communist beliefs
Business&Economics
https://en.wikipedia.org/wiki?curid=987508
Maurice Dobb
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Maurice Dobb One of his students, Victor Kiernan, later reported: "We had no time then to assimilate Marxist theory more than very roughly; it was only beginning to take root in England, although it had one remarkable expounder at Cambridge in Maurice Dobb." Dobb's house, "St Andrews" in Chesterton Lane, was a frequent meeting place for Cambridge communists that it was known locally as "The Red House". Dobb joined the Communist Party in 1920 and during the 1930s was central to the burgeoning Communist movement at the university. One of his recruits was Kim Philby, who later became a high-placed mole within British intelligence. It has been suggested that Dobb was a "talent-spotter" for the Comintern. Dobb was one of the great communist revolutionaries in Britain at the time. He was very politically active and spent a considerable amount of time organizing rallies and presenting lectures on a consistent basis. The economist commonly focused on vulnerability to economic crisis, and pointed to the United States when referring to capitalist money assisting military agendas instead of public works. Dobb's position at Trinity helped him stay connected to the college for more than 50 years. Dobb was elected as a fellow of Trinity College at Cambridge in 1948, at which time he began joint work with Piero Sraffa assembling the selected works and letters of David Ricardo. The result of this effort was eventually published in eleven volumes. He did not receive a University readership until 1959
Business&Economics
https://en.wikipedia.org/wiki?curid=987508
Maurice Dobb
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Maurice Dobb Over the span of his career he published twelve academic books, more than twenty-four pamphlets, and numerous articles meant for general audiences. He often wrote on political economy, drawing a connection between the social context and problems in society and how that influences market exchange. "Economic relations of men determine social associations of men" he said in his Marxian economics class. Dobb believed the capitalist system created classes, and with class comes class warfare. After his 1925 trip to Russia with Keynes, Dobb refrained slightly from his interests of political conflict; he was notorious for long and dull lectures with fewer attendees each class. Other positions held by Dobb around 1928 include teaching in a summer school, acting as the Chairman of the Faculty of Economics of the Communist Party of Great Britain, and even helping to launch the party's own film company. He encountered differing opinions with people in the party, pushing that intellect and political activity are not mutually exclusive. In 1931, Dobb married Barbara Marian Nixon, and unlike his first marriage stayed with Nixon for the rest of his life. She never claimed herself a communist, but was an active member of the Labour Party and held a seat on London's County Council while pursuing a career in acting. Dobb's personal life was of particular interest to his colleagues, and due to the controversy Pembroke College dropped Dobb as the Director of Studies and withdrew his dining rights
Business&Economics
https://en.wikipedia.org/wiki?curid=987508
Maurice Dobb
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Maurice Dobb In the same year he had given a lecture describing a recent trip to Russia, which prompted some to call him a "paid official of the Russian government", and in turn caused a small scandal at Cambridge. Dobb responded by writing an article in "The Times" claiming he had no connection to the Soviet Union. The Hogarth Press, founded by Virginia and Leonard Woolf, was a printing press intent on publishing items that encouraged free exchange of ideas. Leonard Woolf himself was an anti-imperialist. He also believed intellectual exchange was the same as economical exchange in material form; Dobb’s publications were both intellectual exchange through introduction and defense of Marxism, as well as a pieces of work that could be sold. Publications possibly reflected the opinions of Leonard and Virginia Woolf. Leonard Woolf later commissioned "The Political and Social Doctrine of Communism", and originally asked and another author, who both refused. Between “1924 and the late 1930s, the Hogarth Press published eight pamphlets on Russia, communism, and Marxism… the motives, supported by Leonard Woolf, were political and educational." Dobb published two pamphlets with the Hogarth Press. The first", Russia To-day and Tomorrow" (1930), was written after his return from Russia with Keynes. Dobb comments on the Soviet Union’s economy, politics, industry, and culture. "Russia To-Day and Tomorrow" was a bestseller during the 1930s
Business&Economics
https://en.wikipedia.org/wiki?curid=987508
Maurice Dobb
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Maurice Dobb His second publication, "On Marxism To-Day" (1932) was another pamphlet meant to be a rudimentary introduction to communism directed to the general public. died on 17 August 1976. Before his death in 1976 and the downfall of the Soviet Union in 1991, Dobb started to question his earlier devotion to Russia’s economics. His communist ideals, however, did not die with him. Dobb had two notable students, Amartya Sen and Eric Hobsbawm. Sen won the Nobel Memorial Prize in Economic Sciences in 1998 and Bharat Ratna in 1999 for his work in welfare economics, as well as the inaugural Charleston-EFG John Maynard Keynes Prize in recognition of his work on welfare economics. Sen is also a fellow at Trinity College, much like Dobb was. Hobsbawm attended the University of Cambridge, like Dobb, and was a Marxist historiographer who published numerous works on Marxism and was also active in the Communist Party Historians Group and the British Communist Party. Dobb was an economist who was primarily involved in the interpretation of neoclassical economic theory from a Marxist point of view. His involvement in the original economic calculation problem debate consisted of critiques of capitalist, centrally planned socialist, or market socialist models that were based upon the neoclassical framework of static equilibrium. Dobb was quite critical of the marginalist thought within neoclassical economics as well
Business&Economics
https://en.wikipedia.org/wiki?curid=987508
Maurice Dobb
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Maurice Dobb Since Marx passed away by the time this economic thought became popular within the field, Dobb would argue in favor of Marx. Marginal utility, the main foundation of marginalism, states that there is a way to quantify levels of satisfaction as a person consumes each additional unit of a good. The level of satisfaction also depends on the person’s individual behavior. These ideas indicated that the prices set for goods are more, if not completely, influenced by the individual’s willingness to spend. The perceived value an individual gives to a good is the opposite of Marx’s labor theory of value described in Value, Price, Profit which states that the price for that good is determined by the amount of socially acceptable labor that goes into production. In Dobb’s book, "Theories of Value and Distribution Since Adam Smith: Ideology and Economic Theory", Dobb argued that marginal utility and individual satisfaction cannot determine prices like marginalism suggests. In fact, Dobb stated that a person’s preferences and levels of satisfaction is heavily dependent on their individual wealth. In other words, their marginal utility is determined by their spending power. This spending power, according to Dobb, was the distribution of wealth and that alone could change prices since the price would depend on how much someone would spend on it. Therefore, he argued that individual behavior cannot influence prices since there are many other factors such as labor and spending power that can affect them
Business&Economics
https://en.wikipedia.org/wiki?curid=987508
Maurice Dobb
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Maurice Dobb Dobb charged the market socialist model of Oskar Lange and the contributions of "neo-classical" socialists of an illegitimate "narrowing of the focus of study to problems of exchange-relations." ("Economists and the Economics of Socialism", 1939.) Many of his works have been published into different languages. His short publication "Introduction to Economics" was translated to Spanish by the Mexican intellectual Antonio Castro Leal for the leading Mexican publishing house Fondo de Cultura Economica, which has gone through more than ten editions since 1938. For Dobb, the central economic challenges for socialism are related to production and investment in their dynamic aspects. He identified three major advantages of planned economies: antecedent co-ordination, external effects and variables in planning. Planned economies employ antecedent co-ordination of the economy. In contrast a market economy atomises its agents by definition, the expectations which form the basis of their decisions are always based on uncertainty. There is a poverty of information which often leads to disequilibrium that can only be corrected in a market "ex post" (after the event), and thus resources are wasted. An advantage of antecedent planning is removal of significant degrees of uncertainty in a context of coordinated and unified information gathering and decision-making "prior to the commitment of resources". Dobb was an early theorist to recognise the relevance of external effects to market exchanges
Business&Economics
https://en.wikipedia.org/wiki?curid=987508
Maurice Dobb
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Maurice Dobb In a market economy, each economic agent in an exchange makes decisions on the basis of a narrow range of information in ignorance of any wider social effects of production and consumption. When external effects are significant, it invalidates the information transmitting qualities of market prices so that prices will not reflect true social opportunity costs. He claimed that contrary to the convenient assumptions of mainstream economists, significant external effects are in fact pervasive in modern market economies. Planning that coordinates interrelated decisions before their implementation can take into account a wider range of social effects. This has important applications for efficient industrial planning, including decisions about the external effects of uneven development between sectors, and in terms of the external effects of public works, and for development of infant industries; this is in addition to widely publicised negative external effects on the environment. By taking the whole complex of factors into consideration, only coordinated antecedent planning allows for fluid allocation where things that appear as "data" in static frameworks can be used as variables in a planning process
Business&Economics
https://en.wikipedia.org/wiki?curid=987508
Maurice Dobb
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Maurice Dobb By way of example one can enumerate the following categories of "data" that under coordinated antecedent plan would assume the form of variables that can be adjusted in the plan according to circumstances: rate of investment, distribution of investment between capital and consumption, choices of production techniques, geographical distribution of investment and relatives rates of growth of transport, fuel and power, and of agriculture in relation to industry, the rate of introduction of new products, and their character, and the degree of standardisation or variety in production that the economy at its stage of development feels it can afford.
Business&Economics
https://en.wikipedia.org/wiki?curid=987508
Maurice Dobb
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Jevons paradox In economics, the (; sometimes Jevons effect) occurs when technological progress or government policy increases the efficiency with which a resource is used (reducing the amount necessary for any one use), but the rate of consumption of that resource rises due to increasing demand. The is perhaps the most widely known paradox in environmental economics. However, governments and environmentalists generally assume that efficiency gains will lower resource consumption, ignoring the possibility of the paradox arising. In 1865, the English economist William Stanley Jevons observed that technological improvements that increased the efficiency of coal-use led to the increased consumption of coal in a wide range of industries. He argued that, contrary to common intuition, technological progress could not be relied upon to reduce fuel consumption. The issue has been re-examined by modern economists studying consumption rebound effects from improved energy efficiency. In addition to reducing the amount needed for a given use, improved efficiency also lowers the relative cost of using a resource, which increases the quantity demanded. This counteracts (to some extent) the reduction in use from improved efficiency. Additionally, improved efficiency increases real incomes and accelerates economic growth, further increasing the demand for resources. The occurs when the effect from increased demand predominates, and improved efficiency increases the speed at which resources are used
Business&Economics
https://en.wikipedia.org/wiki?curid=988796
Jevons paradox
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Jevons paradox Considerable debate exists about the size of the rebound in energy efficiency and the relevance of the to energy conservation. Some dismiss the paradox, while others worry that it may be self-defeating to pursue sustainability by increasing energy efficiency. Some environmental economists have proposed that efficiency gains be coupled with conservation policies that keep the cost of use the same (or higher) to avoid the Jevons paradox. Conservation policies that increase cost of use (such as cap and trade or green taxes) can be used to control the rebound effect. The was first described by the English economist William Stanley Jevons in his 1865 book "The Coal Question". Jevons observed that England's consumption of coal soared after James Watt introduced the Watt steam engine, which greatly improved the efficiency of the coal-fired steam engine from Thomas Newcomen's earlier design. Watt's innovations made coal a more cost-effective power source, leading to the increased use of the steam engine in a wide range of industries. This in turn increased total coal consumption, even as the amount of coal required for any particular application fell. Jevons argued that improvements in fuel efficiency tend to increase (rather than decrease) fuel use, writing: "It is a confusion of ideas to suppose that the economical use of fuel is equivalent to diminished consumption. The very contrary is the truth
Business&Economics
https://en.wikipedia.org/wiki?curid=988796
Jevons paradox
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Jevons paradox " At that time, many in Britain worried that coal reserves were rapidly dwindling, but some experts opined that improving technology would reduce coal consumption. Jevons argued that this view was incorrect, as further increases in efficiency would tend to increase the use of coal. Hence, improving technology would tend to increase the rate at which England's coal deposits were being depleted, and could not be relied upon to solve the problem. Although Jevons originally focused on the issue of coal, the concept has since been extended to the use of any resource, including, for example, water usage and interpersonal contact. It is perhaps the most widely known paradox in environmental economics. Economists have observed that consumers tend to travel more when their cars are more fuel efficient, causing a 'rebound' in the demand for fuel. An increase in the efficiency with which a resource (e.g. fuel) is used, causes a decrease in the cost of using that resource when measured in terms of what it can achieve (e.g. travel). Generally speaking, a decrease in the cost (or price) of a good or service will increase the quantity demanded (the law of demand). With a lower cost for travel, consumers will travel more, increasing the demand for fuel. This increase in demand is known as the rebound effect, and it may or may not be large enough to offset the original drop in fuel use from the increased efficiency. The occurs when the rebound effect is greater than 100%, exceeding the original efficiency gains
Business&Economics
https://en.wikipedia.org/wiki?curid=988796
Jevons paradox
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Jevons paradox The size of the direct rebound effect is dependent on the price elasticity of demand for the good. In a perfectly competitive market where fuel is the sole input used, if the price of fuel remains constant but efficiency is doubled, the effective price of travel would be halved (twice as much travel can be purchased). If in response, the amount of travel purchased more than doubles (i.e. demand is price elastic), then fuel consumption would increase, and the would occur. If demand is price inelastic, the amount of travel purchased would less than double, and fuel consumption would decrease. However, goods and services generally use more than one type of input (e.g. fuel, labour, machinery), and other factors besides input cost may also affect price. These factors tend to reduce the rebound effect, making the less likely to occur. In the 1980s, economists Daniel Khazzoom and Leonard Brookes revisited the for the case of society's energy use. Brookes, then chief economist at the UK Atomic Energy Authority, argued that attempts to reduce energy consumption by increasing energy efficiency would simply raise demand for energy in the economy as a whole. Khazzoom focused on the narrower point that the potential for rebound was ignored in mandatory performance standards for domestic appliances being set by the California Energy Commission
Business&Economics
https://en.wikipedia.org/wiki?curid=988796
Jevons paradox
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Jevons paradox In 1992, the economist Harry Saunders dubbed the hypothesis that improvements in energy efficiency work to increase (rather than decrease) energy consumption the "Khazzoom–Brookes postulate", and argued that the hypothesis is broadly supported by neoclassical growth theory (the mainstream economic theory of capital accumulation, technological progress and long-run economic growth). Saunders showed that the Khazzoom–Brookes postulate occurs in the neoclassical growth model under a wide range of assumptions. According to Saunders, increased energy efficiency tends to increase energy consumption by two means. First, increased energy efficiency makes the use of energy relatively cheaper, thus encouraging increased use (the direct rebound effect). Second, increased energy efficiency increases real incomes and leads to increased economic growth, which pulls up energy use for the whole economy. At the microeconomic level (looking at an individual market), even with the rebound effect, improvements in energy efficiency usually result in reduced energy consumption. That is, the rebound effect is usually less than 100%. However, at the macroeconomic level, more efficient (and hence comparatively cheaper) energy leads to faster economic growth, which increases energy use throughout the economy. Saunders argued that, taking into account both microeconomic and macroeconomic effects, technological progress that improves energy efficiency will tend to increase overall energy use
Business&Economics
https://en.wikipedia.org/wiki?curid=988796
Jevons paradox
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Jevons paradox A different path which arrives at the same conclusion was pioneered by Garrett, with additional work from Nolthenius ("Generalized Jevons' Paradox") independently of Khazzoom and Brookes, using a more physical thermodynamic approach. Garrett had earlier argued that the value of civilization is not primarily in capital or labor but rather in the networks which engage people to each other and to physical capital, and that these active networks must be constantly furnished with ongoing power in order to retain their function and provide civilization's value. This framework, Garrett argues, identifies energy as the central value imperative for civilization. Garrett further argues that large scale efficient international trade implies that any Jevons' Paradox effects must be evaluated strictly in a closed bounded economic system, hence on a global and not on a national or local level. Garrett showed that on a global level the sum total of all historical global GDP spending ("Wealth") should, from thermodynamic reasoning, be closely correlated to the current rate of global primary energy consumption, and that historical data in fact shows current global primary power consumption is directly proportional to "Wealth" (the Garrett Relation). This relation remains true when non-financial "shadow economy" transactions are included, as Nolthenius argues should be done
Business&Economics
https://en.wikipedia.org/wiki?curid=988796
Jevons paradox
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Jevons paradox The fact that distant past spending enters the Garrett Relation with the same value to today's civilization as does recent spending, argues for the high efficiency of human endeavor to create enduring inflation-adjusted compounded value. Nolthenius argues that the motivational reason is the universal genetic human motivation for growth on individual, local, regional, and global levels, bred by Natural Selection. Combining the with the Garrett Relation leads to a particularly simple expression for the Generalized Jevons Paradox, or equivalently a re-statement of the Khazzoom–Brookes postulate: Increases in energy efficiency generate savings. History shows all savings are spent, and the Garrett Relation shows that all spending encumbers proportional new ongoing power requirements to maintain the growth it creates against the 2nd law of thermodynamics, while simultaneously raising the ability of the enlarged civilization to access primary energy at a faster rate. These combined effects more than compensate for the lowered energy consumption narrowly and directly caused by the improved energy efficiency, so that total primary energy consumption rates go up, not down. The existence in historical data of the Garrett Relation then argues for the truth of the Khazzoom-Brookes postulate on an explicitly global level, not necessarily on any regional levels. Jevons warned that fuel efficiency gains tend to increase fuel use
Business&Economics
https://en.wikipedia.org/wiki?curid=988796
Jevons paradox
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Jevons paradox However, this does not imply that improved fuel efficiency is worthless if the occurs; higher fuel efficiency enables greater production and a higher material quality of life. For example, a more efficient steam engine allowed the cheaper transport of goods and people that contributed to the Industrial Revolution. Nonetheless, if the Khazzoom–Brookes postulate is correct, increased fuel efficiency, by itself, will not reduce the rate of depletion of fossil fuels. There is considerable debate about whether the Khazzoom-Brookes Postulate is correct, and of the relevance of the to energy conservation policy. Most governments, environmentalists and NGOs pursue policies that improve efficiency, holding that these policies will lower resource consumption and reduce environmental problems. Others, including many environmental economists, doubt this 'efficiency strategy' towards sustainability, and worry that efficiency gains may in fact lead to higher production and consumption. They hold that for resource use to fall, efficiency gains should be coupled with other policies that limit resource use. However, other environmental economists point out that, while the may occur in some situations, the empirical evidence for its widespread applicability is limited. The is sometimes used to argue that energy conservation efforts are futile, for example, that more efficient use of oil will lead to increased demand, and will not slow the arrival or the effects of peak oil
Business&Economics
https://en.wikipedia.org/wiki?curid=988796
Jevons paradox
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Jevons paradox This argument is usually presented as a reason not to enact environmental policies or pursue fuel efficiency (e.g. if cars are more efficient, it will simply lead to more driving). Several points have been raised against this argument. First, in the context of a mature market such as for oil in developed countries, the direct rebound effect is usually small, and so increased fuel efficiency usually reduces resource use, other conditions remaining constant. Second, even if increased efficiency does not reduce the total amount of fuel used, there remain other benefits associated with improved efficiency. For example, increased fuel efficiency may mitigate the price increases, shortages and disruptions in the global economy associated with peak oil. Third, environmental economists have pointed out that fuel use will unambiguously decrease if increased efficiency is coupled with an intervention (e.g. a fuel tax) that keeps the cost of fuel use the same or higher. The indicates that increased efficiency by itself may not reduce fuel use, and that sustainable energy policy must rely on other types of government interventions as well. As the imposition of conservation standards or other government interventions that increase cost of use do not display the Jevon paradox, they can be used to control the rebound effect. To ensure that efficiency-enhancing technological improvements reduce fuel use, efficiency gains can be paired with government intervention that reduces demand (e.g
Business&Economics
https://en.wikipedia.org/wiki?curid=988796
Jevons paradox
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