A Degenerative Company
Will the new GM ever be another General Motors?
On the Newsstand:Financial Crisis
The Problem with Bankers’ Pay
Exorbitant compensation threatens the stability of the banking system
Risky Business
The problem of too-big-to-fail “Greed is good,” said Gordon Gekko in the iconic 1987 film Wall Street. Yet while such attitudes may have contributed to economic growth in some sectors, now national and international economies are experiencing a recessionary hangover. The causes of the worst financial crisis since the Depression are many and it is likely that we will debate ... Read More
Chafing at the Bonds
A positive official tone masks U.S.-China tensions “We have laid the foundation for a positive, cooperative, and comprehensive relationship for the 21st century,” said Secretary of State Hillary Clinton during the conclusion of the inaugural meeting of the U.S.-China Strategic and Economic Dialogue this past July. But three months later, the Obama administration leveled a tariff on Chinese tires. China ... Read More
Broken State Governments
Chaos reigns as states try to budget in the recession The financial crisis affected millions of Americans, drove down property values, crippled the mortgage industry, spiked unemployment rates, and revealed the unwieldiness of the American banking system. In response, the U.S. government attempted to resuscitate the economy with a nearly $800 billion stimulus. Meanwhile, state governments have been struggling ... Read More
New Online Only Articles
We have a new batch of web exclusive articles from the HPR: a review of books from Cass Sunstein and Tyler Cowen, a search for our generation’s protest music, a new perspective on European conservatives and the financial crisis, and a historical look at presidents and peace prizes. Take a look!
Conservative Revolutionaries
How the European right wing have become unlikely innovators in the worldwide financial crisis The economic crisis the world is currently experiencing has been the worst since the Great Depression. In such a period, nothing could be easier than pointing out market failures and the inefficiencies of deregulated capitalism. Indeed, it should be the perfect setting for an increase in ... Read More
A History Lesson for President Obama
What 44 can learn from 35 Pundits are fond of drawing comparisons between John F. Kennedy and Barack H. Obama and, indeed, there are many parallels to be found. Like JFK, Obama captured national attention as a junior senator and ran for president without a great deal of governing experience. Like JFK, Obama campaigned as a liberal Democrat committed to ... Read More
Cities Without Limits
How long-term factors drive municipal economies In May 2008, the city of Vallejo, Calif. became the first urban victim of the global financial crisis when it filed for Chapter Nine bankruptcy, the first Californian city ever to do so. Defending this decision, Vallejo’s mayor argued that a weak economy caused by the bursting of the housing bubble had left the ... Read More
Banking as a Vocation
Yesterday Paul Krugman wrote in the New York Times that banking needs to be made “boring.” Like most of Krugman’s material on the financial crisis it’s worth a read; it explains how it’s a bad sign that banking is an exciting industry drawing many of the most gifted young minds of America, more than a fair share of them coming ... Read More
Russia’s Upper Hand
Georgia’s troubles in the aftermath of the Ossetia conflict The South Ossetia conflict last August was a tragic farce that ran its full course in barely a week, inviting paraphrasing Porfirio Diaz’s saying about Mexico; poor Georgia, so far from God and so close to Russia! In days, it re-established Russian superiority in the Caucasus and ignominiously ended the Bush-era ... Read More
After the Oil Price Crash
Understanding the impact on oil-exporting countries On June 23, 2008 the price of oil peaked at over U.S. $140 a barrel, and by the following February fell drastically to below $39 a barrel. As Venezuela, Russia, and oil-dependent economies across the Middle East saw their oil revenues dry up over the course of a few months, a devastating impact seemed ... Read More
Protectionists at the Gates
The future of the WTO and the Doha trade round July 29, 2008 witnessed the collapse of the World Trade Organization’s Doha Round, high-level negotiations aimed at lowering trade barriers between countries. Immediate reactions were varied, reflecting international ambivalence about globalization. Free traders viewed the collapse as a disaster, poverty activists as a moral failure, and globalization’s malcontents as a ... Read More
