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🔗 Environment 🔗 Economics

In economics, the Jevons paradox (; 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 Jevons paradox 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 Jevons paradox occurs when the effect from increased demand predominates, and improved efficiency increases the speed at which resources are used.

Considerable debate exists about the size of the rebound in energy efficiency and the relevance of the Jevons paradox 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.

🔗 Economics 🔗 Politics 🔗 Basic Income 🔗 Taxation 🔗 Libertarianism

Georgism, also called geoism and single tax (archaic), is an economic ideology holding that while people should own the value they produce themselves, economic value derived from land (often including natural resources and natural opportunities) should belong equally to all members of society. Developed from the writings of American economist and social reformer Henry George, the Georgist paradigm seeks solutions to social and ecological problems, based on principles of land rights and public finance which attempt to integrate economic efficiency with social justice.

Georgism is concerned with the distribution of economic rent caused by natural monopolies, pollution and the control of commons, including title of ownership for natural resources and other contrived privileges (e.g. intellectual property). Any natural resource which is inherently limited in supply can generate economic rent, but the classical and most significant example of land monopoly involves the extraction of common ground rent from valuable urban locations. Georgists argue that taxing economic rent is efficient, fair and equitable. The main Georgist policy recommendation is a tax assessed on land value. Georgists argue that revenues from a land value tax (LVT) can be used to reduce or eliminate existing taxes (for example, on income, trade, or purchases) that are unfair and inefficient. Some Georgists also advocate for the return of surplus public revenue to the people by means of a basic income or citizen's dividend.

Economists since Adam Smith and David Ricardo have observed that a public levy on land value does not cause economic inefficiency, unlike other taxes. A land value tax also has progressive tax effects. Advocates of land value taxes argue that they would reduce economic inequality, increase economic efficiency, remove incentives to underutilize urban land and reduce property speculation. The philosophical basis of Georgism dates back to several early thinkers such as John Locke, Baruch Spinoza and Thomas Paine, but the concept of gaining public revenues mainly from land and natural resource privileges was widely popularized by Henry George and his first book Progress and Poverty (1879).

Georgist ideas were popular and influential during the late 19th and early 20th century. Political parties, institutions and communities were founded based on Georgist principles during that time. Early devotees of Henry George's economic philosophy were often termed Single Taxers for their political goal of raising public revenue mainly from a land value tax, although Georgists endorsed multiple forms of rent capture (e.g. seigniorage) as legitimate. The term Georgism was invented later and some prefer the term geoism to distinguish their beliefs from those of Henry George.

🔗 France 🔗 Economics 🔗 Cooperatives 🔗 Basque 🔗 Spain

The Mondragon Corporation is a corporation and federation of worker cooperatives based in the Basque region of Spain. It was founded in the town of Mondragon in 1956 by graduates of a local technical college. Its first product was paraffin heaters. It is the tenth-largest Spanish company in terms of asset turnover and the leading business group in the Basque Country. At the end of 2014, it employed 74,117 people in 257 companies and organizations in four areas of activity: finance, industry, retail and knowledge. By 2015, 74,335 people were employed. Mondragon cooperatives operate in accordance with the Statement on the Co-operative Identity maintained by the International Co-operative Alliance.

🔗 Mathematics 🔗 Economics 🔗 Politics 🔗 Urban studies and planning 🔗 Organizations 🔗 Game theory

Braess' paradox is the observation that adding one or more roads to a road network can slow down overall traffic flow through it. The paradox was postulated in 1968 by German mathematician Dietrich Braess, who noticed that adding a road to a particular congested road traffic network would increase overall journey time.

The paradox may have analogies in electrical power grids and biological systems. It has been suggested that in theory, the improvement of a malfunctioning network could be accomplished by removing certain parts of it. The paradox has been used to explain instances of improved traffic flow when existing major roads are closed.

🔗 Medicine 🔗 Economics 🔗 Psychology 🔗 United Kingdom 🔗 Sociology

Shit life syndrome (SLS) is a phrase used by physicians in the United Kingdom and the United States for the effect that a variety of poverty or abuse-induced disorders can have on patients.

Sarah O'Connor's 2018 article for the Financial Times "Left behind: can anyone save the towns the economy forgot?" on shit life syndrome in the English coastal town of Blackpool won the 2018 Orwell Prize for Exposing Britain's Social Evils. O'Connor wrote that

Blackpool exports healthy skilled people and imports the unskilled, the unemployed and the unwell. As people overlooked by the modern economy wash up in a place that has also been left behind, the result is a quietly unfolding health crisis. More than a tenth of the town's working-age inhabitants live on state benefits paid to those deemed too sick to work. Antidepressant prescription rates are among the highest in the country. Life expectancy, already the lowest in England, has recently started to fall. Doctors in places such as this have a private diagnosis for what ails some of their patients: "Shit Life Syndrome" ... People with SLS really do have mental or physical health problems, doctors say. But they believe the causes are a tangled mix of economic, social and emotional problems that they — with 10- to 15-minute slots per patient — feel powerless to fix. The relationship between economics and health is blurry, complex and politically fraught. But it is too important to ignore.

In a column for The Irish Times, writer John McManus questioned whether Ireland had developed shit life syndrome in the wake of a recent fall in life expectancy.

A 2018 article in The Quietus on the films of the British director Mike Leigh identified shit life syndrome in Leigh's 2002 film All or Nothing. Kinney wrote that "The film asks questions about poverty – what does poverty do to people? How do you react when the chips are down? ... The rise of populism in this country has been analysed through the lens of the 'left behind' – in a less crude way, this is exactly what All or Nothing was observing sixteen years ago."

Rosemary Rizq, in an essay in the 2016 collection The Future of Psychological Therapy, questioned the origin of the term shit life syndrome, writing that "The phrase seemed to denote a level of long-standing poverty, family breakdown, lack of stability, unemployment and potential risk factors common to many of the predominately young, working class patients referred to the [psychotherapeutic] service" for shit is "something that we continually reject, get rid of or hide. At the same time it is something we cannot completely repudiate, it is part of us, something we need" and that the individuals with SLS have problems so "terrible, so untouchable" that they "quite literally cannot be thought about, cannot be handled by the service", yet a therapeutic organisation is "obliged to do so".

🔗 Economics 🔗 Statistics 🔗 Business 🔗 Politics

Goodhart's law is an adage named after economist Charles Goodhart, which has been phrased by Marilyn Strathern as "When a measure becomes a target, it ceases to be a good measure." One way in which this can occur is individuals trying to anticipate the effect of a policy and then taking actions that alter its outcome.

🔗 Computing 🔗 Economics 🔗 Systems 🔗 Systems/Cybernetics 🔗 Chile

Project Cybersyn was a Chilean project from 1971–1973 during the presidency of Salvador Allende aimed at constructing a distributed decision support system to aid in the management of the national economy. The project consisted of four modules: an economic simulator, custom software to check factory performance, an operations room, and a national network of telex machines that were linked to one mainframe computer.

Project Cybersyn was based on viable system model theory approach to organizational design, and featured innovative technology for its time: it included a network of telex machines (Cybernet) in state-run enterprises that would transmit and receive information with the government in Santiago. Information from the field would be fed into statistical modeling software (Cyberstride) that would monitor production indicators, such as raw material supplies or high rates of worker absenteeism, in "almost" real time, alerting the workers in the first case and, in abnormal situations, if those parameters fell outside acceptable ranges by a very large degree, also the central government. The information would also be input into economic simulation software (CHECO, for CHilean ECOnomic simulator) that the government could use to forecast the possible outcome of economic decisions. Finally, a sophisticated operations room (Opsroom) would provide a space where managers could see relevant economic data, formulate feasible responses to emergencies, and transmit advice and directives to enterprises and factories in alarm situations by using the telex network.

The principal architect of the system was British operations research scientist Stafford Beer, and the system embodied his notions of organisational cybernetics in industrial management. One of its main objectives was to devolve decision-making power within industrial enterprises to their workforce in order to develop self-regulation of factories.

🔗 Economics 🔗 Business 🔗 Sociology 🔗 Occupations

This is a category of jobs that have been rendered obsolete due to advances in technology and/or social conditions.

🔗 Finance & Investment 🔗 COVID-19 🔗 Economics

The 2020 stock market crash is a global stock market crash that began on 20 February, 2020. On 12 February, the Dow Jones Industrial Average, the NASDAQ Composite, and S&P 500 Index all finished at record highs (while the NASDAQ and S&P 500 reached subsequent record highs on 19 February). From 24 to 28 February, stock markets worldwide reported their largest one-week declines since the 2008 financial crisis, thus entering a correction. Global markets into early March became extremely volatile, with large swings occurring in global markets. On 9 March, most global markets reported severe contractions, mainly in response to the 2019–20 coronavirus pandemic and an oil price war between Russia and the OPEC countries led by Saudi Arabia. This became colloquially known as Black Monday I, and at the time was the worst drop since the Great Recession in 2008.

Three days after Black Monday I there was another drop, Black Thursday, where stocks across Europe and North America fell more than 9%. Wall Street experienced its largest single-day percentage drop since Black Monday in 1987, and the FTSE MIB of the Borsa Italiana fell nearly 17%, becoming the worst-hit market during Black Thursday. Despite a temporary rally on 13 March (with markets posting their best day since 2008), all three Wall Street indexes fell more than 12% when markets re-opened on 16 March. At least one benchmark stock market index in all G7 countries and 14 of the G20 countries have been declared to be in bear markets.

As of March 2020, global stocks have seen a downturn of at least 25% during the crash, and 30% in most G20 nations. Goldman Sachs has warned that the US GDP will shrink 29% by the end of the 2nd quarter of 2020, and that unemployment may skyrocket to at least 9%. Australian Prime Minister Scott Morrison has called the looming economic crisis 'akin to the Great Depression'.

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This is a list of common misconceptions. Each entry is formatted as a correction; the misconceptions themselves are implied rather than stated. These entries are meant to be concise, but more detail can be found in the main subject articles.