This investigation proposes a conceptual framework for measurement necessary for an analysis of household finance and economic development. The authors build on and, where appropriate, modify corporate financial accounts to create balance sheets, income statements, and statements of cash flows for households in developing countries, using an integrated household survey. The authors also illustrate how to apply the accounts to an analysis of household finance that includes productivity of household enterprises, capital structure, liquidity, financing, (...) and portfolio management. The conceptualization of this analysis has important implications for measurement, questionnaire design, the modeling of household decisions, and the analysis of panel data. (shrink)

This essay reviews two recent books—Marion Laboure and Nicolas Deffrennes's Democratizing Finance and Eswar S. Prasad's The Future of Money—on financial technology (fintech) and the future of money. Both books present overviews of recent developments in fintech and assess the prospects of technological change to deliver a more accessible, equitable financial system—described in both cases as the “democratization of finance.” I raise two key concerns about the limits of the “democratization” implied here. First, the vision of democratized (...) class='Hi'>finance implicit in both books rests on claims about widening access to financial services for individuals, households, and businesses. This contrasts with more substantive visions of democratized finance that entail the exercise of accountable, deliberative decision-making on monetary and financial questions. Second, “fintech democracy” rests on a very thin account of how finance might be democratized, stressing exogenous technological change, with little consideration of relations of power, institutional reforms, or mobilization. Both books provide eloquent and comprehensive overviews of emerging fintech debates, but in so doing ultimately reveal important limitations to achieving financial democracy through fintech. (shrink)

The study constructs a theoretical model of social capital, farm household financing, and scale operation and their environmental effects, and conducts an empirical test based on data from China Family Panel Studies which is conducted in 2018 using causal mediation analysis. The results showed that farmers who spent more on human interaction have a higher probability of choosing scale operation by renting land, the mechanism of which is that the social capital accumulated by farmers based on human interaction facilitates (...) their access to formal and informal financing, which in turn alleviates the financing constraint of scale operation. In addition, we found that the farmers with low education were more dependent on social capital to obtain informal financing to achieve scale operation. The environmental effects of scale operation found that the farmers significantly reduced the proportion of fertilizer and pesticide use, which could effectively mitigate possible pollution problems caused by excessive fertilizer and pesticide use. These findings confirm that social capital can alleviate the financing constraints of farmers to expand their operation scale through formal and informal financing, which in turn has a positive environmental effect. (shrink)

While financial institutions have not figured prominently in utopian thinking, the democratization of finance is central to any vision of bringing contemporary economies under democratic control. This paper is an initial effort to conceptualize a series of feasible reforms that could incrementally weaken the power of incumbent financial institutions while helping to facilitate economic development that is more egalitarian and sustainable. While the focus is on the US economy, the specific ideas have relevance in other national contexts. The core (...) of the reform idea is to mobilize a combination of governmental supports and grassroots entrepreneurialism to create an expanding network of nonprofit financial institutions that would redirect household savings to finance clean energy, growth of small and medium-sized enterprises, and infrastructure. (shrink)

This article extends the critique of finance to money itself. It argues that our understanding of money has been distorted by a series of myths about its origin and nature, in particular, the claim that money emerged from the adoption of precious metal coinage in market systems. These myths obscure the social and political history of money and the role of states in money creation and circulation. Neoliberal ideology, by contrast, adopts a “handbag economics” that treats the state as (...) a dependent household rather than an economic actor in its own right. An alternative view of money is put forward that sees money as a social and political construct and not just a passive reflection of market activity. It is argued that the sovereign power to create money should be recognized, reclaimed, and democratized as a public resource. (shrink)

International political economy identifies declining nominal interest rates, securitization, and financial liberalization as drivers of rising housing prices. Despite witnessing these common credit shocks, however, developed economies experienced divergent trends in housing inflation since the 1980s. We offer a comparative political economy explanation of variation in house prices, arguing that by restraining household incomes, wage-setting institutions can blunt financial liberalization’s inflationary impact on housing markets. Employing quantitative analysis and a comparative study of Ireland and the Netherlands, we uncover two (...) findings. First, countries where political coalitions in the export sector held veto powers over those in the nontraded sector in national wage setting realized lower housing inflation. Second, the impact of sectoral coalitions on housing prices in OECD countries is similar to that of financial variables. Our results suggest that the organization of labor politics continues to play an important role in mitigating the destabilizing effects of global finance on developed economies. (shrink)

The various institutional reforms which have led since the end of the 70s to the « privatisation of currency » have formed the main base on which the subsequent power of finance has been built, and, concurently, the dismantling of Welfare could take place. Core of this was the so-called autonomy of central banks, as their « umbilical cord » to national treasuries was severed. From then on, deficit financing and « keynesian » social expenditures became near-impossible. Emphasizing the (...) autonomy of central banks from politics was mostly an institutional mutation meant to free monetary policies from social pressure and make it totally subordinate to rent creation and financial accumulation. No wonder then that « securitisation » of the public debt closely followed on the prohibition to deficit financing social expenditures. And then the outcome was not a reduction, but an explosion of public debt! And as debt servicing becomes a principal item on the budget, the « excessive costs » of welfare provisions is blamed, and a further break-down of social services is called for. It is in the same vein that price inflation is controlled, but assets inflation and speculative bubbles dominate « developped » economies. Meanwhile, in order to compensate for increasing income inequalities and diminishing welfare benefits, an exacerbated form of « private households deficit spending »has come into its own, as witnessed by the subprime crisis and mounting credit card defaults. So we are moving from an entitlements-based provision of social goods to one based on the pure logic of capital and its cycles. The only way out lies in the resocialisation of currency, profound fiscal reforms, the demise of rent-seeking, and the institution of an universal « basic income ». (shrink)

101 real couples participated in a controlled experimental risk-taking task involving variations in household and individual income risks, while controlling for ex-ante income inequality. Our design disentangles the effects of household risk, intra-household risk inequality, and ex-post payoff inequality. We find that most couples (about 79%) pooled their risk at the household level when risks were borne symmetrically, but a significant proportion of couples (about 36%) failed to do so when individual risks were borne asymmetrically. Additionally, (...) within the scope of the control variables we have utilized, we find that intra-household risk inequality has a larger impact on non-married couples compared to married ones. These results remain robust when the analysis is limited to couples in which both spouses are risk-averse. Lastly, we find that preferences for household efficiency are significantly correlated across both certain and risky situations. However, couples consisting of two income-maximizing spouses do not show greater aversion to risk inequality compared to couples with other compositions. (shrink)

Household debt has been widely discussed among social scientists, policy makers, and activists. Many have questioned the levels of debt households are required to take on, and have made various proposals for assisting households in debt. Yet theorists of distributive justice have left household debt underexamined. This article offers a normative examination of the distributive justice issues presented by proposals to relieve household debt or protect households from overindebtedness. I examine two goals at which debt relief proposals (...) aim: remedying disadvantage and stabilizing expectations. I then examine strategies for relieving existing debts such as debt abolition, forgiveness, bankruptcy, and mitigation, as well as strategies that aim to prevent future indebtedness, such as public provision or financing of costly goods and credit or interest rate regulations. (shrink)

Public education finance in China plays an important role in education equality. This study investigated two mediation effects with a generalized structural equation model that comprised the mediation effect of shadow education at the school, family, and individual levels and the moderating role of education finance. There was a strong association among heterogeneity factors, shadow education, and educational results, with shadow education playing a mediating role in math and English courses. Individual heterogeneity differences had a negative impact on (...) equality in educational results through access to additional shadow education opportunities, while heterogeneous factors were mediated through shadow education, causing financial moderation effects, in turn affecting inequality in educational results. Finally, the moderation degree and direction of education finance varied significantly, with a greater moderation effect on household-level factors that lead to unequal educational results. Targeted efforts are required to regulate shadow education, which is key to the development of the education system. (shrink)

Farmers face unique challenges and opportunities in saving for and maintaining income during retirement relative to other Americans. Farm households have higher income than the average American household but may decide to invest in their farm rather than save for retirement. We use information from the Agricultural Resource Management Survey, the Survey of Consumer Finances, and the Current Population Survey to answer three questions pertaining to the retirement preparedness of farm households. First, what is the composition of income and (...) assets for farm households? Second, how do retirement income and assets for farm households compare to those of all U.S. households and nonfarm self-employed households? Third, do retirement income and assets vary across subpopulations of retirement-age farmers? Our results suggest that, on average, older farm households received smaller shares of their income from retirement sources and had smaller retirement assets than older U.S. households. However, farm households had higher levels of total income and assets with most assets being concentrated in the farm operation. Farm assets may be relatively illiquid compared to retirement assets making it more difficult to rely on them for income during retirement. Among older farm households, those with low-sales farm businesses and Hispanic and non-White operators may be particularly unprepared for retirement relative to other farm households. Our results have implications for farm household well-being as operators’ average age rises. They highlight the similar and distinct challenges farmers face in saving for and maintaining income in retirement relative to other workers. (shrink)

Political discourse is saturated with metaphor, but evidence for the persuasive power of this language has been hard to come by. We addressed this issue by investigating whether voting intentions were affected by implicit mappings suggested by a metaphorically framed message, drawing on a real-world example of political rhetoric about the federal budget. In the first experiment, the federal budget was framed as similar to or different from a household budget, though the information participants received was identical in both (...) conditions. When the federal budget was described as similar to a household's, people considered the personal finances of a presidential candidate more relevant—a finding we replicated in a larger, pre-registered study. In a follow-up experiment, we presented participants with a more explicit rhetorical argument and found a similar effect, moderated by political affiliation. These studies illuminate how metaphorical comparison affects cognition for important real-world issues, sometimes in unintended ways. (shrink)

How do we theorize and analyze the structural power of finance when global capitalism itself undergoes constant and profound structural transformation? The literature continues to assume that the source of financial structural power is its unique ability to provide credit to the real economy, playing a crucial role in meeting the investment imperative. But recent research documents that most financial market activities no longer facilitate productive investment and can even be a drag on economic development. If the financial sector's (...) primary role is not to support productive investments, then on what basis does it continue to hold structural power? The contributions to this special issue engage with how decades of financialization have transformed the basis of structural power toward alternative functions that have gone unnoticed in the existing literature. These include household and real estate lending that fuels consumption-led growth, concentration and expansion of financial institutions as tools of geo-economic strategy, financing current account deficits that facilitate global imbalances, and wealth preservation that bolsters inequality. (shrink)

Competitive Governments, explores in a systematic way the hypothesis that governments are internally competitive, that they are competitive in their relations with each other and in their relations with other institutions in society which, like them, supply consuming households with goods and services. Breton contends that competition not only serves to bring the political system to an equilibrium, but it also leads to a revelation of the households' true demand functions for publicly provided goods and services and to the molding (...) of a link between the quantities and the qualities demanded and supplied and the tax prices paid for these goods and services. In the real world where information is costly, the links may not be first-best, but they will be efficient if competition is vigorous. (shrink)

Drawing on detailed German panel data, we find that gifts and inheritances substantially increase households’ private pension savings in accounts which are costly or impossible to withdraw prematurely. Back-of-the-envelope calculations suggest that the average difference in bequest-induced private pension savings between heirs and non-heirs accrues to more than 40,000 euros at retirement, and that it would take an average non-heir household roughly 14 years to match this gap. The sizable difference in private pension savings between heirs and non-heirs persists (...) when we take into account other investments of heirs and non-heirs potentially intended to provide for old age. Our evidence supports the impact of gifts and inheritances on inequality in retirement wealth highlighted in recent research on intergenerational justice. We discuss several policy implications of our results. Online appendix. (shrink)

Intimate Partner Violence (IPV) is a global social problem that includes using coercive control strategies, including financial abuse, to manage and entrap an intimate partner. Financial abuse restricts or removes another person’s access to financial resources and their participation in financial decisions, forcing their financial dependence, or alternatively exploits their money and economic resources for the abuser’s gain. Banks have some stake in the prevention of and response to IPV, given their unique role in household finances and growing recognition (...) an equitable society is one inclusive of consumers with vulnerabilities. Institutional practices may unwittingly enable abusive partners’ financial control as seemingly benign regulatory policy and tools of household money management exacerbate unequal power dynamics. To date, business ethicists have tended to take a broader view of banker professional responsibility, especially post-Global Financial Crisis. Little scholarship examines if, when and how a bank should respond to societal issues, such as IPV, traditionally outside their ‘remit’ of banking services. I extend existing understandings of ‘systemic harm’ to conceptualise the bank’s role in addressing economic harm in the context of IPV, viewing IPV and financial abuse through a consumer vulnerability lens to translate theory into practice. Two in-depth stories of financial abuse further illustrate the active role banks can and should take in combating financial abuse. (shrink)

Global health is at a crossroads. The 2030 Agenda for Sustainable Development has come with ambitious targets for health and health services worldwide. To reach these targets, many more billions of dollars need to be spent on health. However, development assistance for health has plateaued and domestic funding on health in most countries is growing at rates too low to close the financing gap. National and international decision-makers face tough choices about how scarce health care resources should be spent. Should (...) additional funds be spent on primary prevention of stroke, treating childhood cancer, or expanding treatment for HIV/AIDS? Should health coverage decisions take into account the effects of illness on productivity, household finances, and children's educational attainment, or just focus on health outcomes? Does age matter for priority setting or should it be ignored? Are health gains far in the future less important than gains in the present? Should higher priority be given to people who are sicker or poorer? Global Health Priority-Setting provides a framework for how to think about evidence-based priority-setting in health. Over 18 chapters, ethicists, philosophers, economists, policy-makers, and clinicians from around the world assess the state of current practice in national and global priority setting, describe new tools and methodologies to address establishing global health priorities, and tackle the most important ethical questions that decision-makers must consider in allocating health resources. (shrink)

Fear, anger and hopelessness were the most frequent traumatic emotional responses in the general public during the first stage of outbreak of the COVID-19 epidemic in the Czech Republic (N = 1,000). The four most frequent categories of fear were determined: (a) fear of the negative impact on household finances, (b) fear of the negative impact on the household finances of significant others, (c) fear of the unavailability of health care, and (d) fear of an insufficient food supply. (...) The pessimistic communications used by the Czech mass media contributed to intensifying traumatic feelings, fears and psychological distress in the general public during the outbreak of the COVID-19 epidemic. The anxious emotional tone of the messages and the presentation of selectively chosen “bad ending stories” contributed to the psychological traumatization of the Czech population. This form of communication was motivated by an effort to reach the broadest audience possible. Older adults were the most affected part of the population because of their isolation and their very limited opportunity to share their worries and emotions with others. The communication used by the Czech mass media during the outbreak of the COVID-19 epidemic is a representative example of a traumatizing form of media communication during an epidemic. (shrink)

In a context where individuals are increasingly more sensitive to corporate social responsibility (CSR) practices and where mobilization of savings for the energy transition is essential, our article is the first to study the drivers of online green bank adoption. By analyzing 1075 questionnaires from a panel of French individuals in charge of financial decisions in their households, we show that altruism and green consumption values are significant drivers of individuals' green banking adoption and reveal that willingness to adopt a (...) green bank is mediated by the preference for green savings. These results extend the nascent literature dealing with the link between responsible consumption and saving behaviors. Briefly speaking, green banks (and associated savings products) have the potential to enable households to express their consumption values through their investments. That said, our results suggest that households' financial well-being and financial literacy can be barriers to the mobilization of green savings. Our results also demonstrate the significant influence of information system variables, such as personal innovativeness and trust, on willingness to adopt green banking. By shedding light on the drivers of individuals' green bank adoption, our results provide valuable insights for the banking industry. (shrink)

The paper investigates the various factors from a socio-cultural perspective that have a bearing on the intercultural couple’s marital satisfaction in Westerner and non-Westerner relationships, and how cultural differences may potentially amplify the difficulties, which non-intercultural couples themselves are already likely to face. These factors include acculturation, language and communication, attitudes toward marriage, individual traits and behaviours, support of the family, societal views, gender roles, managing of the household finances and child rearing. Certain theories are also highlighted in an (...) attempt to explain why these cultural differences have such a profound effect on the marital satisfaction of intercultural couples. (shrink)

This article aims to answer the question that whether higher education would lead to happier life in China and tries to provide some explanations from the perspective of housing asset. Using data from four waves of China Household Finance Survey, we find that higher education on average is significantly negatively correlated with people's happiness in urban China. Higher education tends to prevent people from achieving “extremely happy” lives; instead, it is more likely to lead to “acceptable” lives. Based (...) on the realities of housing market in urban China, we find that housing asset plays the mediating role in the relationship between higher education and happiness. Specifically, years of schooling could evidently compress the years of being homeowners; as a result, highly educated people generally have more unpaid housing debts and bear more housing purchase costs due to the soaring housing prices. Meanwhile, higher education has negative effect on people's happiness in cities with relatively high housing prices, while this effect is insignificant in cities with relatively low housing prices. Moreover, the market-oriented housing reform that launched in 1998 has negative impact on highly educated people's happiness, since it has dramatically boosted housing prices and essentially changed housing distribution system for urban employees. Besides, we also find that Ph.D graduates are the relatively unhappiest people compared to bachelors or masters. Obviously, our findings have important policy implications for Chinese government to understand and resolve the “education-happiness paradox.”. (shrink)

Food prices are a daily concern in many households’ decision-making, especially when people want to have healthier diets. Employing Bayesian Mindsponge Framework (BMF) analytics on a dataset of 710 Indonesian citizens, we found that people from wealthier households are less likely to have concerns about food prices. However, the degree of health considerations in food consumption was found to moderate against the above association. In other words, people of higher income-based social classes may worry more about food prices if they (...) care more about the health impacts of their food choices. These findings provide more insights for policymakers on the psychological aspects of promoting the balance between finance and health in food consumption. (shrink)

In a recent study by Cai et al. about water shortages in Beijing-Tianjin-Hebei urban areas, virtual water has become the central concept of the groundwater security strategy by suggesting increasing imports of water-intensive agricultural products instead of utilizing the depleted groundwater resources for production. However, despite reviewing the content, we could not see how the authors discussed the households’ economic and financial issues from both production and consumption perspectives.

A healthy work-life balance has become increasingly important to people trying to cope with the pressures of contemporary society. This trend highlights the fallacy of assessing well-being in terms of finance alone; how much time we have matters just as much as how much money. The authors of this book have developed a novel way to measure 'discretionary time': time which is free to spend as one pleases. Exploring data from the US, Australia, Germany, France, Sweden and Finland, they (...) show that temporal autonomy varies substantially across different countries and under different living conditions. By calibrating how much control people have over their time, and how much they could have under alternative welfare, gender or household arrangements, this book offers a new perspective for comparative cross-national enquiries into the temporal aspects of human welfare. (shrink)

Much existing economic theory overlooks ethics. Rather than situating the market and values at separate extremes of a continuum, Ethics and the Market contends that the two are necessarily and intimately related. This volume brings together some of the best work in the social economics tradition, with contributions on the social economy, social capital, identity, ethnicity and development, the household, externalities, international finance, capability, and pedagogy. Proceeding from an examination of the moral implications of markets, the book goes (...) on to explore such themes as the institutional arrangements of social economies, individual and household decision-making, and economic development in a global context. Ethics and the Market illuminates the diverse and dynamic theoretical approaches that are employed in social economics, reflecting on their continuously evolving relationship with neoclassical economics. This book will prove vital reading for students and academics in the fields of Economics, Sociology, Gender Studies, and Public Policy. (shrink)

The current global economic crisis is historically unprecedented in that it began when poor groups in the United States defaulted on their mortgage-payments and spread fear of 'toxic debt' through an internationalised financial system, bringing the banking system close to collapse and highlighting the very individualised nature of contemporary financial relations. The symposium explores contemporary finance and banking practices in the context of Marxist political economy seeking to develop the notion of financialisation and arguing that banks' increasing reliance on (...) individual households as a source of profits amounts to a form of financial expropriation or additional profit generated in the sphere of circulation. (shrink)

This essay situates the French Jesuit missionary Joseph-François Lafitau's (1681–1746) ‘discovery’ of Canadian ginseng within its social, commercial and religious contexts, and illustrates how the missionary's upbringing and education in France shaped the way he perceived nature in the New World. It elucidates the manner in which Lafitau ‘Galenized’ Canadian flora, fauna and peoples. It explores the role of Lafitau's dual enculturation in both a mercantile household and later the Society of Jesus in his application of Galenic categories to (...) Canadian nature. The essay then examines the tensions between localism and universalism in Galenic medicine in the eighteenth century. It links these dichotomies to Lafitau's Galenization of Canadian ginseng. Finally, it suggests that since the Jesuits were prohibited from trading goods they had purchased, they sold medicinal plants they had cultivated themselves, which played a central role in financing the Society's missions in a manner they believed to be morally acceptable. (shrink)

IntroductionStress is associated with disease and reduced leukocyte telomere length. The objective of this research is to determine if self-perceived stress is associated with telomere length in Costa Rican adults and the gender differences in this association. Findings may help explain how some populations in apparent socioeconomic disadvantage and with limited access to specialized medical services have a remarkably high life expectancy.MethodologyData come from the pre-retirement cohort of the Costa Rican Longevity and Healthy Aging Study, a population based survey conducted (...) in the households to 2,327 adults aged 53 to 66 years. The DNA to measure LTL was extracted from blood cells in laboratories of the University of Costa Rica whereas the Blackburn laboratory at the University of California performed the telomere length measurement applying the quantitative polymerase chain reaction. The relationship between telomere length and perceived stress was measured using least-squares multiple regression. Perceived stress was measured by a set of questions about family, job, finances and, health reasons to be stressed. Models included the control variables: age and sex of the participant, whether he or she resides in the Nicoya area, a “blue zone” known for its high longevity, and the aforementioned sociodemographic, health and lifestyles characteristics.ResultsStress perception and LTL are significantly different by sex. Women perceived higher stress levels than men in almost all aspects studied, except work. Women have significantly longer telomeres. Shorter telomeres are significantly associated with caregiving stress in men and with parental health concerns in women. Counter-intuitive telomere lengthenings were observed among women who feel stressed about caring for family members; and among men who feel stressed due to their family relationships as well as concerns about their own health.DiscussionResults confirm that people with self-perceived stress due to caregiving or health issues have shorter telomeres. The relationship between stress and telomere length differs between men and women. Gender relations exert a strong modifier effect on the relationship between stress and LTL: gender is related to perceived stress, telomere length, and apparently also to the way stress and LTL are related. (shrink)

An understanding of factors influencing the decision of rural people to keep sheep and/or goats is crucial when formulating technologies and policies that support village-based small ruminant production. The knowledge of such factors will also improve assessment of impact intervention strategies on the livelihoods of rural people. Structured questionnaires administered in 228 households were used to study the ownership patterns of small ruminants in southern Benin. The ownership of goats was higher (91%) than sheep (35%) because goats are not affected (...) by any ethnic or cultural restrictions. Goats are also perceived to be a less risky to invest into compared to sheep. Women represented 71% of the keepers of goats. Predictive models of ownership were developed using logistic regression. The results showed that younger household members (p < 0.05) especially young women (60%) are more likely to own small ruminants. Owners of small ruminants are less likely to be involved in off-farm activities and would often have no access to credit facilities. Gender, ethnicity, and perception of risk associated with species are the major factors affecting people’s choice of species. These findings highlight the financing and insurance roles that small ruminants, particularly goats, are playing in the study area. In order to develop suitable technologies and formulate policies to improve productivity and enhance livelihoods, the constraints to goat production need to be identified, and the local knowledge of the keepers should be investigated. (shrink)

Research into the causes of the 2008 financial crisis has drawn attention to a link between growing income inequality in the United States and high household indebtedness. Most accounts trace the U.S. idea of credit-as-welfare to the period of wage stagnation and welfare retrenchment that began in the early 1970s. Using France as a comparison case, I argue that the link between credit and welfare was not unique to the United States. Indeed, U.S. charitable lending institutions that emerged at (...) the beginning of the twentieth century were modeled in part on older French financial institutions. Three historical factors drove U.S. lenders and policymakers to push for expanded credit access for the working class. First, welfare reformers in the interwar period embraced private credit as an alternative to an expansive welfare state. Second, U.S. organized labor in the wake of World War II embraced credit access as a means to sustain industrial employment and finance strike actions. Third, commercial banks in the 1950s began offering revolving credit accounts as a means to attract new depositors at a time when banking regulation restricted the interest they could offer on deposits. (shrink)

Premodern Financial Systems: A Historical Comparative sStudy describes the financial superstructure, such as the method of financing the government, and links it to the essential characteristics of the infrastructure of nearly a dozen societies ranging from Athens in the late fifth century BC to the United Provinces in the mid-seventeenth century. The main features of the financial superstructures discussed are the monetary system, the types of financial instruments and institutions, interest rates, and the methods of financing agriculture, non-agricultural business, households, (...) foreign trade, and government. Aspects of the infrastructures covered include population, urbanization, prices, national output, wealth, and their sectoral and size distribution. (shrink)

This essay review of Margaret Atwood's Payback centers on the observation that the book does not dwell on the unnatural face of interest and finance. In this era of financialization, debt has been thoroughly uncoupled from the concept of payback. The least valuable debt is the one that is promptly repaid. It is this aspect of debt—the interest, not the principal—that has attracted the richest tradition of social condemnation. As stable forms of production and exchange were replaced by international (...) arbitrage, the link between debt and sorcery became evident to observers around the world. More profoundly, Atwood's widely shared commonsense impression that consumer debt is a measure of self-indulgence does not hold up empirically. It turns out that our unprecedented levels of household indebtedness were overwhelmingly a function of nondiscretionary spending. Even as Americans owed one hundred percent of GDP in individual debt in 2008, the real Faustian bargain was not a “enjoy now, pay later” scheme for “glitzy, short-term junk.” The truth is much scarier, and points toward a different set of cultural and theological references than the ones Atwood investigates. The dividing line between solvency and insolvency, it turns out, is not consumption but reproduction: the most certain route to financial disaster is having a child. (shrink)

Growing concern about economic inequality has generated a polarized narrative regarding the causes and consequences of extreme wealth. We contend that divided ideological positions obscure a more mundane reality about the typical wealthiest 1% households. Using data from the triennial survey of consumer finance, we demonstrate that there is substantial heterogeneity within the 1%. Contrary to public discourse, the typical 1% household does not have wealth reflective of popular rich lists, but derives a significant share of its wealth (...) from ownership and active management of small- to medium-sized private enterprise. We use these findings to shed new insights on business families’ relationship to economic inequality and open promising new areas of inquiry regarding the role of the family business in society. (shrink)

As artificial intelligence (AI) thrives and propagates through modern life, a key question to ask is how to include humans in future AI? Despite human involvement at every stage of the production process from conception and design through to implementation, modern AI is still often criticized for its “black box” characteristics. Sometimes, we do not know what really goes on inside or how and why certain conclusions are met. Future AI will face many dilemmas and ethical issues unforeseen by their (...) creators beyond those commonly discussed (e.g., trolley problems and variants of it) and to which solutions cannot be hard-coded and are often still up for debate. Given the sensitivity of such social and ethical dilemmas and the implications of these for human society at large, when and if our AI make the “wrong” choice we need to understand how they got there in order to make corrections and prevent recurrences. This is particularly true in situations where human livelihoods are at stake (e.g., health, well-being, finance, law) or when major individual or household decisions are taken. Doing so requires opening up the “black box” of AI; especially as they act, interact, and adapt in a human world and how they interact with other AI in this world. In this article, we argue for the application of cognitive architectures for ethical AI. In particular, for their potential contributions to AI transparency, explainability, and accountability. We need to understand how our AI get to the solutions they do, and we should seek to do this on a deeper level in terms of the machine-equivalents of motivations, attitudes, values, and so on. The path to future AI is long and winding but it could arrive faster than we think. In order to harness the positive potential outcomes of AI for humans and society (and avoid the negatives), we need to understand AI more fully in the first place and we expect this will simultaneously contribute towards greater understanding of their human counterparts also. (shrink)

The notion of a ‘financial subjectivity’ is fast becoming an important way of understanding how people rationalize the need to take risks in daily life as crucial to personal success. This paper therefore traces the structural changes and institutional fixes – that is, the institutional stabilization of crisis tendencies in capitalism – to understand how individual strategies for making ends meet have been shaped by finance. In particular, I look at regulation theory’s depictions of the ‘ideology of shareholder value’ (...) as partially responsible for the flourishing business sector in which competition and the threat of takeover led to the prioritization of corporate performance over job security and workers’ benefits. However, it is also necessary to understand the particular mechanisms that enable independence from the welfare state at the level of the household, in the form of expanded borrowing and financial services, which I explore further in this paper. (shrink)

This chapter explores two questions in detail: How should we determine the threshold for costs that individuals are asked to bear through insurance premiums or care-related out-of-pocket costs, including user fees and copayments? and What is an adequate relationship between costs and benefits? This chapter argues that preventing impoverishment is a morally more urgent priority than protecting households against income fluctuations, and that many health insurance plans may not adequately protect individuals from health care costs that threaten to drop their (...) financial status below a decent minimum. A design that places greater emphasis on preventing impoverishment and finances the achievement of that goal by reducing unnecessary subsidies to better-off households would better accord with a sufficientarian approach to health care. -/- . (shrink)

Based on European National Transfer Accounts data from 2010, this paper quantifies and evaluates the balance of intergenerational transfer flows in 16 EU countries, including transfers in the form of unpaid household work. On average, the value of net transfers received by a child amounts to sixteen times the labour income of a full-time worker, and the net transfers received by an elderly person to six times the labour income of a full-time worker. Intergenerational transfers can be regarded as (...) the reciprocal exchange between two generations: the size of the transfers to the child generation determines their potential to generate income and finance public transfers to the elderly population once they enter employment. We develop and calculate an indicator to analyse if there is a balance between transfers to children and transfers expected by the elderly population. The results indicate that in most of the analysed countries the human capital investments in children are far too low to finance the generous transfers to the elderly population in the future. (shrink)

IntroductionHigh healthcare costs make illness precarious for both patients and their families’ economic situation. Despite the recent focus on the interconnection between health and financial risk at the systemic level, the ethical conflict between concerns for potential health benefits and financial risk protection at the household level in a low-income setting is less understood.MethodsUsing a seven-step ethical analysis, we examine a real-life dilemma faced by families and health workers at the micro level in Ethiopia and analyse the acceptability of (...) limiting treatment for an ill newborn to protect against financial risk. We assess available evidence and ethical issues at stake and discuss the dilemma with respect to three priority setting criteria: health maximisation, priority to the worse-off and financial risk protection.ResultsGiving priority to health maximisation and extra priority to the worse-off suggests, in this particular case, that limiting treatment is not acceptable even if the total well-being gain from reduced financial risk is taken into account. Our conclusion depends on the facts of the case and the relative weight assigned to these criteria. However, there are problematic aspects with the premise of this dilemma. The most affected parties—the newborn, family members and health worker—cannot make free choices about whether to limit treatment or not, and we thereby accept deprivations of people’s substantive freedoms.ConclusionIn settings where healthcare is financed largely out-of-pocket, families and health workers face tragic trade-offs. As countries move towards universal health coverage, financial risk protection for high-priority services is necessary to promote fairness, improve health and reduce poverty. (shrink)

Americans have trillions of dollars invested in public and private companies, yet stock ownership is highly unequal: the wealthiest 1 percent of households possess 40 percent of all wealth, and there is a large and persistent racial wealth gap. What if innovations in distributed technologies allowed for democratic facilitation of new opportunities for wealth and a rebalancing of power within the capital markets? This article proposes using innovative financial technologies to create a “Public Investment Platform”—a public option for participation in (...) capital markets—and a “Public Investment Account” to universalize access to investment opportunities. Capital markets are currently governed by public policies that submerge the role of the public in structuring them and enable an inequitable accumulation of wealth. To democratize finance, new policies are required to democratize participation in investment. (shrink)

Rural diversification strategies in Zimbabwe are wide in nature but the environment plays an important role in ensuring that sustainability and structural transformation are achieved. A good understanding of the diversity of rural livelihoods choices and income sources among rural households would therefore inform policy makers on appropriate policy interventions. This paper delves to establish the role of rural diversification strategies in promoting structural transformation in Zimbabwe using Insiza district as a case study. A mixed methods research design was used. (...) Both qualitative and quantitative data collection methods were applied. The study utilized semi-structured interviews with key informants who were purposively sampled to take part in the study. A total of 100 questionnaires were distributed and 86 were returned thus giving the researcher a response rate of 86%. The study’s findings noted that rural diversification is an important component of the rural economy and it plays an important component in order to achieve structural transformation using Insiza district in Zimbabwe as a case study. The study also noted that though climate was negatively impacting on the Insiza district residents, households that diversified their income sources had enhanced income compared with farming households which do not diversify their income sources being vulnerable. The study recommends that the government should intervene by financing and educating the rural folk. Micro-policy should be targeted on rural households incomes that facilitate the provision of widening income options through small scale group schemes. (shrink)

To grasp current trends within capitalism without abandoning the framework of Marx’sCapitalwe need to return to the category of ‘fictitious capital’ and make it central to our explanations. Based on the 2012 Isaac and Tamara Deutscher Memorial Lecture, this essay combines reflections on Marx’s account of ‘fictitious capital’; an investigation of the role of bills of exchange; and an analysis of the recent turmoil in British and US banking. It looks at the way the opium trade, financed through the London (...) bill market, integrated a constellation of interests in the City with the labour of peasant households in India as parts of a unified accumulation process. Opium was vital to the fortunes of British capitalism for most of the nineteenth century. The merchant banks that were the mainstay of Britain’s form of capitalism were also the key element in the re-emergence of global finance in the postwar period. The concluding part of the paper deals with the current banking crisis and follows Hilferding in arguing that by providing liquidity to the markets for fictitious capital, speculation plays a crucial role in sustaining profitability for the bigger capitals. (shrink)

L'auteur a rassemble dans ce volume un certain nombre d'article parus - sauf un, encore inedit - dans diverses revues hors de France et portant sur quelques points importants d'ethique et d' axiologie. L'etre et le caractere irreducible de la subjectivite et de la personnalite, la notion de nature humaine dans son rapport a la valeur morale, la question tant debattue de la loi naturelle, la sensibilite aux valeurs sont les principaux themes traites.

AUTHOR'S PREFATORY NOTE TO THE ENGLISH TRANSLATION In this English edition of Ethique generale (Rome, 1 967) the author has introduced some very slight ...