pensions crisis

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pages: 241 words: 90,538

Unequal Britain: Equalities in Britain Since 1945 by Pat Thane


Ayatollah Khomeini, British Empire, call centre, collective bargaining, equal pay for equal work, full employment, gender pay gap, mass immigration, moral panic, Neil Kinnock, old-boy network, pensions crisis, sexual politics, Stephen Hawking, unpaid internship, women in the workforce

., and Sanchez, C. (2004), The Under-Pensioned: Disabled People and People from Ethnic Minorities. London: Equality and Human Rights Commission. Thane, P. (2005), ‘The “scandal” of women’s pensions in Britain: How did it come about?’ in H. Pemberton, P. Thane, and N. Whiteside (eds), Britain’s Pensions Crisis, History and Policy. Oxford: Oxford University Press, pp. 77–90. Thane, P. (2000), Old Age in English History. Oxford: Oxford University Press. Thane, P., Ginn, J., and Hollis, P. (2005), ‘Women and pensions in Britain’ in Pemberton et al. (eds), Britain’s Pensions Crisis. Oxford: Oxford University Press, pp. 77–124. Townsend, P. (1957), The Family Life of Old People. London: Routledge. Townsend, P. (1964), The Last Refuge. London: Routledge. Townsend, P., and Wedderburn, D. (1965), The Aged in the Welfare State, Occasional Papers on Social Administration No.14.

Swindon: Economic and Social Research Council. Notes to Chapter 1: Older people and equality 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Thane, P. (2000), Old Age in English History. Oxford University Press, pp. 19–28. Ibid., pp. 194–215, 308–32. Thane, P. (2006), ‘The “scandal” of women’s pensions in Britain: How did it come about?’ in H. Pemberton, P. Thane and N. Whiteside (eds), Britain’s Pensions Crisis: History and Policy. Oxford University Press, pp. 77–90. Thane, Old Age, pp. 333–52. Groves, D., (1986), ‘Women and Occupational Pensions, 1870–1983’, Unpublished London University PhD. Blaikie, A. (1990), ‘The emerging political power of the elderly in Britain, 1908–1948’, Ageing and Society, 10 (1): 30. Ibberson, D. ‘Special investigation into the condition of supplementary pensioners, 1942’.

Pedersen, S. (2004), Eleanor Rathbone and the Politics of Conscience. Yale University Press. Social Insurance and Allied Services. Report by Sir William Beveridge. Cmd 6404, p. 92, para. 236. UK Government Actuary’s Department (1975, 1991), Occupational Pensions Schemes, Table 3.2; Table 2.1. Thane, P., Ginn, J., and Hollis, P. (2006), ‘Women and pensions in Britain’ in Pemberton et al., Britain’s Pensions Crisis, pp. 77–124. Steventon, A., and Sanchez, C. (2008), The Under-Pensioned: Disabled People and People from Ethnic Minorities. London: Equality and Human Rights Commission. Sass, S. ‘Anglo-Saxon occupational pensions in international perspective’, in Steventon and Sanchez, The Under-Pensioned, pp. 191–255. Pratt, H. (1986), Gray Agendas: Campaigns by Older People in Britain and US. Ann Arbor: University of Michigan Press.

pages: 364 words: 104,697

Were You Born on the Wrong Continent? by Thomas Geoghegan


Albert Einstein, American Society of Civil Engineers: Report Card, banking crisis, Berlin Wall, Bob Geldof, collective bargaining, corporate governance, cross-subsidies, dark matter, David Brooks, declining real wages, deindustrialization, ending welfare as we know it, facts on the ground, Gini coefficient, haute cuisine, income inequality, John Maynard Keynes: Economic Possibilities for our Grandchildren, knowledge economy, knowledge worker, labour market flexibility, laissez-faire capitalism, low skilled workers, Martin Wolf, McJob, minimum wage unemployment, mittelstand, offshore financial centre, Paul Samuelson, payday loans, pensions crisis, Plutocrats, plutocrats, purchasing power parity, Ralph Waldo Emerson, Robert Gordon, Ronald Reagan: Tear down this wall, Saturday Night Live, Silicon Valley, The Wealth of Nations by Adam Smith, Thorstein Veblen, union organizing, Wolfgang Streeck, women in the workforce

See also reading and European social democracies Newsweek Norway nursing-home benefits and parent care Obama, Barack On the Road (Kerouac) Organisation for Economic Co-operation and Development (OECD) Orwell, George Overy, Richard “Palace of the Republic” (GDR parliament building in Berlin) Party of European Socialists Congress (May 2001) pensions and retirement benefits European social democracies German model Germany’s pension crisis public-sector jobs retirement age U.S. Pilgrim’s Progress (Bunyan) PISA test plutocracies Polish immigrants Porter, Michael Postwar (Judt) “producer” wants/“consumer” wants Prussia public goods/private goods Putnam, Robert Quadragesimo Anno (papal encyclical) rail transportation reading and European social democracies essay reading in France French newspapers and journalism German daily newspapers Germany high school graduates/postgraduates Internet reading and manufacturing workforce people reading in public and political awareness and television viewing Reichstag (Berlin) Rerum Novarum (papal encyclical) retirement benefits and pension plans European social democracies German model Germany’s pension crisis retirement age Social Security U.S.

(Streeck) German model of social democracy and capitalism child care benefits children in poverty civic trust college attendance rates college tuitions in contrast to France education system elderly poor English-speaking GDP per capita and German character and Germans who resemble Americans Germany as “Green” Germany’s darkness and historical trauma government-provided benefits/entitlements green technology holiday weekends and leisure time hours worked and standard-of-living income equality/inequality law students and bar exam middle class military draft nursing-home benefits and parent care pensions and retirement political conversations political identity and political educations quality control reading and print culture retirement age savings rates size and history in Europe small houses and unification U.S. elites’ opinions of weak state and socialist-friendly private corporations welfare women’s benefits and birthrates See also Berlin, Germany; financial meltdown of 2008 (the Krise) and German model; German model of social democracy (future of); German model of social democracy (German socialism); German model of social democracy (jobs/employment); German model of social democracy (labor and industry); German model of social democracy (unions and labor movement) German model of social democracy (future of) ascension of CDU changes to the European model decline of labor unions/union organizing financial meltdown of 2008 (the Krise) Germans’ despair about pension crisis rumors of collapse SDP-Green government and Agenda 2010 German model of social democracy (German socialism) and Catholicism co-determination contrast to older state socialism and German capitalism labor unions and wage-setting and postwar U.S. Army occupation and reading works councils German model of social democracy (jobs/employment) high-skill jobs and high-end precision goods manufacturing workforce percent of adults holding an associate degree percent of adults self-employed public-sector civil service jobs skilled-labor shortage subsidies for artists unemployment German model of social democracy (labor and industry) export sales “globalization” thesis high-skill jobs and high-end precision goods industry and social democracy labor costs labor markets market flexibility postwar economic recovery (the “German miracle”) public spending/consumer spending levels services and “virtuous growth” voices of the left on the labor crisis voices of the right on the labor crisis wage moderation and “wage costs” wage-setting by unions worker control German model of social democracy (unions and labor movement) decline of labor and organizing after the Krise foreign-born union membership and postwar U.S.

pages: 393 words: 115,263

Planet Ponzi by Mitch Feierstein


Affordable Care Act / Obamacare, Albert Einstein, Asian financial crisis, asset-backed security, bank run, banking crisis, barriers to entry, Bernie Madoff, break the buck, centre right, collapse of Lehman Brothers, collateralized debt obligation, commoditize, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, Daniel Kahneman / Amos Tversky, disintermediation, diversification, Donald Trump, energy security, eurozone crisis, financial innovation, financial intermediation, fixed income, Flash crash, floating exchange rates, frictionless, frictionless market, high net worth, High speed trading, illegal immigration, income inequality, interest rate swap, invention of agriculture, light touch regulation, Long Term Capital Management, mega-rich, money market fund, moral hazard, mortgage debt, negative equity, Northern Rock, obamacare, offshore financial centre, oil shock, pensions crisis, Plutocrats, plutocrats, Ponzi scheme, price anchoring, price stability, purchasing power parity, quantitative easing, risk tolerance, Robert Shiller, Robert Shiller, Ronald Reagan, too big to fail, trickle-down economics, value at risk, yield curve

The federal debt is $14 trillion and growing fast, yet it excludes a further $3.3 trillion which the states owe to their public servants‌—‌owe, and in many cases, cannot pay. Consequently, as a nation, we owe over $17 trillion, which is substantially more than the $15 trillion or so we earn in a year. If we all worked hard for the next 365 days and handed over every single penny of our earnings to the IRS, the country would still be in debt afterwards. But, serious as the state-level pension crisis is, it’s only the tip of a vastly larger iceberg. The pensions owed to public servants are legal, enforceable, courtroom-ready obligations, but that’s not the only kind of obligation a government can create for itself. As a nation, we have also made public promises to all our current and future retirees, telling them that if they contribute to social security via the Federal Insurance Contributions Act (FICA) taxes, we will make pension payments to cover their old age.

(So they couldn’t make any loans, presumably.) He wants to abolish ratings agencies. (Because they tell the truth, I guess.) And he berates financial markets for wanting to turn France ‘into their poodle.’ (Actually, Arnaud, the bond markets don’t want a dog, they want to know they’re going to get their money back. You know: the almost $2.5 trillion that France borrowed.) Meantime Martine Aubry wants to fix the looming pensions crisis by bringing the pensionable age down from sixty-two to sixty. François Hollande wants to create 300,000 public sector jobs. And French voters appear to be partial to this nonsense. Almost three-fifths of the population want higher trade barriers to be erected unilaterally. The same number think trade with India and China has been bad for the country.14 Nicolas Sarkozy, supposedly a politician of the center-right, came to power promising sweeping structural reform and has delivered almost nothing.

How I Became a Quant: Insights From 25 of Wall Street's Elite by Richard R. Lindsey, Barry Schachter


Albert Einstein, algorithmic trading, Andrew Wiles, Antoine Gombaud: Chevalier de Méré, asset allocation, asset-backed security, backtesting, bank run, banking crisis, Black-Scholes formula, Bonfire of the Vanities, Bretton Woods, Brownian motion, business process, buy low sell high, capital asset pricing model, centre right, collateralized debt obligation, commoditize, computerized markets, corporate governance, correlation coefficient, creative destruction, Credit Default Swap, credit default swaps / collateralized debt obligations, currency manipulation / currency intervention, discounted cash flows, disintermediation, diversification, Donald Knuth, Edward Thorp, Emanuel Derman,, Eugene Fama: efficient market hypothesis, financial innovation, fixed income, full employment, George Akerlof, Gordon Gekko, hiring and firing, implied volatility, index fund, interest rate derivative, interest rate swap, John von Neumann, linear programming, Loma Prieta earthquake, Long Term Capital Management, margin call, market friction, market microstructure, martingale, merger arbitrage, Myron Scholes, Nick Leeson, P = NP, pattern recognition, Paul Samuelson, pensions crisis, performance metric, prediction markets, profit maximization, purchasing power parity, quantitative trading / quantitative finance, QWERTY keyboard, RAND corporation, random walk, Ray Kurzweil, Richard Feynman, Richard Feynman, Richard Stallman, risk-adjusted returns, risk/return, shareholder value, Sharpe ratio, short selling, Silicon Valley, six sigma, sorting algorithm, statistical arbitrage, statistical model, stem cell, Steven Levy, stochastic process, systematic trading, technology bubble, The Great Moderation, the scientific method, too big to fail, trade route, transaction costs, transfer pricing, value at risk, volatility smile, Wiener process, yield curve, young professional

And there are many other models that have been developed in the last 30 years: Ross’s Arbitrage JWPR007-Lindsey 148 April 30, 2007 17:52 h ow i b e cam e a quant pricing model of 1976, the Fama and French factor models of the 1990s, Grinold and Kahn’s Fundamental Law of Active Management in 1989 and its subsequent refinement in 2002 (for transfer coefficients), and the Black-Litterman model of 1990 for asset allocation. The economics of the financial markets are still being discovered and defined, and it is the quants who are leading the way. Managing the Outcome As I look forward to new economic challenges in the financial markets, the single largest issue globally is the growing pension crisis. In the United States, the Social Security system faces bankruptcy sometime around 2050. Many defined benefit plans are shutting down or being handed over to the Pension Benefit Guaranty Corporation. In addition, the aging Baby Boomers are finally getting ready to retire and head off into a well-deserved sunset. Further, around the world you see an aging population. In Italy, the median age is 53; in Japan it is 54.

For example, exotic derivatives trading desks get a lot of quantitative attention, but the risk exposures of exotic derivatives desks are dwarfed by the credit exposures at the same banks, which are only now receiving quant attention thanks to the requirements of Basel CAD (Capital Adequacy Directive) II. In turn, these credit exposures are dwarfed by those of pension fund portfolios, which are run by amateur trustees with advice from actuaries who know little about finance (hence, the pensions crisis). Quants congregate in derivative valuation, yet there are other areas of finance that are crying out for decent models. Yes, the problems seem “fuzzy.” The first reason for this is we haven’t solved them yet! Before Black, Scholes, and Merton showed people how to do it, option valuation was a fuzzy problem, too. The second reason is that financial data are sparse and noisy. Quants need to retool to address these problems.

pages: 504 words: 126,835

The Innovation Illusion: How So Little Is Created by So Many Working So Hard by Fredrik Erixon, Bjorn Weigel

Airbnb, Albert Einstein, asset allocation, autonomous vehicles, barriers to entry, Basel III, Bernie Madoff, bitcoin, Black Swan, blockchain, BRICs, Burning Man, Capital in the Twenty-First Century by Thomas Piketty, Cass Sunstein, Clayton Christensen, Colonization of Mars, commoditize, corporate governance, corporate social responsibility, creative destruction, crony capitalism, dark matter, David Graeber, David Ricardo: comparative advantage, discounted cash flows, distributed ledger, Donald Trump, Elon Musk, Erik Brynjolfsson, fear of failure, first square of the chessboard / second half of the chessboard, Francis Fukuyama: the end of history, George Gilder, global supply chain, global value chain, Google Glasses, Google X / Alphabet X, Gordon Gekko, high net worth, hiring and firing, Hyman Minsky, income inequality, income per capita, index fund, industrial robot, Internet of things, Jeff Bezos, job automation, job satisfaction, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, joint-stock company, Joseph Schumpeter, Just-in-time delivery, Kevin Kelly, knowledge economy, labour market flexibility, laissez-faire capitalism, lump of labour, Lyft, manufacturing employment, Mark Zuckerberg, market design, Martin Wolf, mass affluent, means of production, Mont Pelerin Society, Network effects, new economy, offshore financial centre, pensions crisis, Peter Thiel, Potemkin village, price mechanism, principal–agent problem, Productivity paradox, QWERTY keyboard, RAND corporation, Ray Kurzweil, rent-seeking, risk tolerance, risk/return, Robert Gordon, Ronald Coase, Ronald Reagan, savings glut, Second Machine Age, secular stagnation, Silicon Valley, Silicon Valley startup, Skype, sovereign wealth fund, Steve Ballmer, Steve Jobs, Steve Wozniak, technological singularity, telemarketer, The Chicago School, The Future of Employment, The Nature of the Firm, The Wealth of Nations by Adam Smith, too big to fail, total factor productivity, transaction costs, transportation-network company, tulip mania, Tyler Cowen: Great Stagnation, University of East Anglia, unpaid internship, Vanguard fund, Yogi Berra

One estimate of US public pensions, erring on the extreme side, suggests the return on capital is going to drop to such low rates that up to 85 percent of US pension plans risk failure within 30 years.17 More moderately, studying the 25 biggest public retirement systems, Moody’s has estimated that there is a $2 trillion shortfall in US public pension plans.18 Perhaps that estimate overplays or undershoots the real size of the problem, but it is easy to see why they and others are worried about a growing pensions crisis. Estimates for the return on investment on pension savings rely on historic financial performances. With historically low interest rates, it becomes necessary for savers and investment funds to increase risks to reach expected returns. A deflationary economy with low nominal growth lowers the possible returns on safe savings. Even if Western economies improved on current trends in the next two decades, they will still be in a low-growth situation.

Chance (Being There character) (i), (ii) multinational (global) companies characteristics of (i), (ii) and competition (i) and corporate cash savings (i) and dispersed ownership (i) and firm boundaries (i), (ii) and foreign direct investment (FDI) (i), (ii) and global trade (i), (ii) vs. home-market firms (i) and innovation (i) as logistics hubs (i) and market concentration (i), (ii) and market contestability (i) and private standards (i) and productivity (i), (ii) and R&D (i) and regionalization of Asia’s trade growth (i) and regulation (i) reputation of (i) and “slicing up” of value chains (i) and specialization (i), (ii) and supply chains (i) and transaction costs (i) see also big firms; globalization; globalization (overview) Musk, Elon (i), (ii), (iii) mutual funds (i), (ii) nanotechnology (i), (ii), (iii) NASA (i) Nasdaq, and sovereign wealth funds (i) national accounts (recorded data), vs. real value of improvements (i), (ii) National Science Foundation (US) (i) neoconservatism (i) neoliberalism (i) nepotism (i) net lending see corporate net lending Netherlands exports to China (i) taxi services and regulation (i) “new economy” (i) New England Journal of Medicine, medical devices study (i) New Machine Age thesis background: economic realities vs. technological blitz vision (i), (ii), (iii), (iv), (v), (vi), (vii); historical perspective (i) criticism of thesis: cyclical effects on productivity argument (i); jobs and technology issue (i); productivity/income decoupling issue (i), (ii); recorded data vs. real improvements argument (i), (ii); summary (i) and fear of artificial intelligence (i) and planning machine economic philosophy (i) and Robert Gordon on US labor productivity growth (i) see also The Second Machine Age (Brynjolfsson and McAfee) New York City dockers and containerization (i) taxi services and regulation (i), (ii) New York Stock Exchange (i), (ii), (iii), (iv), (v) see also Wall Street New York Times, on Bell’s telephone invention (i) NICs (newly industrialized countries) (i) Nietzsche, Friedrich (i), (ii) nimby (not-in-my-backyard) attitude (i) NM Electronics (Intel) (i), (ii), (iii) Nobel Peace Prize, and Twitter (i) “noise” (at work) (i) Nokia and corporate managerialism (i), (ii), (iii), (iv), (v), (vi) and Foxconn (i) and specialization (i) and tablet market (i) non-entrepreneurial planning (i) North American Free Trade Agreement (i) Norway, sovereign wealth fund (i), (ii), (iii) not-in-my-backyard (nimby) attitude (i) Obama, Barack (i), (ii) obsolescence see knowledge obsolescence occupational licenses (i), (ii), (iii), (iv) OECD (Organisation for Economic Co-operation and Development) on aging firms and innovation (i) on corporate savings (i) on “diffusion machine” and productivity (i) GDP forecasts (i) on intermediaries and shareholders’ income (i) on pension funds and PPRFs (i) on R&D skill deficiencies (i) on regulatory administration costs (i) on sovereign wealth funds (i) on taxi services (i) OECD countries product market regulation (PMR) indicators (i), (ii) R&D spending (i) start-ups (i) total assets by types of institutional investors (2001–13) (i), (ii) “off-license” sectors (i) “offshore” pattern of innovation (i) oligopolistic (or monopolistic) competition (i) Ollila, Jorma (i), (ii) Olson, Mancur (i) “one percent” (wealthiest group) (i) online services and diffusion of innovations (i), (ii) and recorded economic data (i) and regulation (i) see also internet open source technology, and socialism (i) organic cognition (i) Organisation for Economic Co-operation and Development see OECD; OECD countries organization industrial organization (i), (ii) vs. managerialism/technostructure (i) and multinationals (i) and specialization (i) Organization Man (i), (ii) organizational diversification (i), (ii) Osborne, Michael (i) outsourcing (i) ownership see capitalist ownership; institutional owners Palo Alto Research Center (PARC, Xerox) (i) “Panama Papers” story (i) Parisian taxis, and regulation (i) patents, and knowledge obsolescence (i) pay see incomes payment cycles (i) payment technologies (i) pensions and asset management industry (i) and gray capitalism (i), (ii), (iii), (iv) need for reform (i) pension crisis (i) pensioners vs. working-age households incomes (i) and principal–agent debate (i) private pensions (i), (ii) public/state pensions (i), (ii), (iii), (iv), (v); public pension funds and reserve funds (OECD, 2001–13) (i), (ii); public pension return funds (PPRFs) (i) see also retirement Pepsi (i) performance imperatives (i) performance measurements (i) performance tools (i), (ii) permission-based regulatory culture (i), (ii) permissionless innovation (i) pessimism, and capitalist decline (i) Pessoa, João Paolo (i) Pfleiderer, Paul (i) pharmaceutical sector and price regulations (i)n28 R&D investment (i), (ii) and regulation (i), (ii) Phelps, Edmund (i)n41 Mass Flourishing (i), (ii) Piketty, Thomas (i), (ii) PillCam digestive tract sensor (i) Pippi Longstocking (i) planning and corporate managerialism: planning machines (i), (ii), (iii); strategy (i); uncertainty and risk (i) Cybersyn project (i) and failing companies (i) and globalization (i) non-entrepreneurial planning (i) and regulation (i) and “scientific civilization” thinking (i) and spirit of bureaucracy (i) and Swedish economy (i) plastic cards (i) Pliny the Elder, Naturalis Historia (i) Plouffe, David (i) PMR (product market regulation) indicators (i), (ii) policy uncertainty, and investment (i), (ii) political romanticism (i) political world and capitalism as borderless space (i) cronyism , (i), (ii), (iii), (iv) dirigisme (France) (i) government intervention vs. liberalism (i) governments and globalization (i) governments and mobile technology (i) gray-haired voters (i) lobbying (i), (ii), (iii), (iv), (v) and regulation: 1980s–1990s policy changes (i); case of taxi services and Uber (i); political romanticism (i); social regulation (i); trend on the rise (i) and sovereign wealth funds (i), (ii), (iii) see also policy uncertainty; politics politics corporate politics (i), (ii), (iii), (iv) end of and digital age (i) populism (i), (ii), (iii), (iv), (v) see also political world populations aging (i), (ii), (iii) decline (i) populism (i), (ii), (iii), (iv) Porter, Michael (i), (ii) portfolio theory (i) Portugal, lesser dependence on larger enterprises (i) positioning (i), (ii), (iii), (iv) poverty, and globalization (i) PPRFs (public pension return funds) (i) see also pensions precautionary regulations (i), (ii), (iii), (iv) predictability (i), (ii), (iii), (iv), (v), (vi), (vii) see also uncertainty; volatility premature scaling (i), (ii) price index bias (i) Pricewaterhouse Coopers (PwC) on asset management industry (i) on compliance officers in US (i) productivity growth survey (i) on sovereign wealth funds (i) principal–agent problem (i) principal–agent theory (i) prioritizing, and strategy (i) private standards (i) probabilistic decision-making (i), (ii) product market regulation (PMR) indicators (i), (ii) production and computer technology (i) geography of production (i) lean production (i), (ii) and multinationals (i) production costs (i), (ii), (iii) unbundling of: first (i); second (i), (ii), (iii), (iv) see also specialization; supply chains; value chains productivity and containerization (of global trade) (i) and cyclical effects (i) and data economy (i) downward trend (i), (ii) and employment (i) and financial sector growth (i) and foreign operations (i)n46 and globalization (i), (ii), (iii) and ICT intensity (i), (ii) and incomes (decoupling thesis) (i), (ii) key to prosperity (i) low productivity and innovation diffusion problems (i) and market contestability (i), (ii) and multinationals (i), (ii) and regulation (i) and robots (i) total factor productivity (TFP) growth (i), (ii), (iii) and transaction costs (i) UK productivity puzzle (i) professional investment/investors (i), (ii), (iii) see also asset managers professions regulation of (i), (ii) see also occupational licenses profit margins and decoupling (productivity/incomes) thesis (i) and globalization (i), (ii) protectionism (i), (ii), (iii), (iv), (v) public markets and financialization of the economy (i) and mergers and acquisitions (i) public pension return funds (PPRFs) (i) see also pensions public relations campaigns (i), (ii) “put option” (i) PwC see Pricewaterhouse Coopers (PwC) quantitative valuation methods (i) quantum dots (QD) technology (i) R&D (research and development) and corporate net lending (i) and firm boundaries (i), (ii) and multinationals (i) and pharmaceutical products (i), (ii) and policy uncertainty (i) and productivity (i) R&D scoreboards (European Commission) (i), (ii) and regulation (i), (ii), (iii) vs. share buybacks at IBM (i) spending issues (i), (ii), (iii) and sunk costs (i) US R&D investment (i), (ii), (iii) and vertical specialization (i) see also incremental development Rajan, Raghuram (i) rating agencies (i), (ii), (iii) rationalism and globalist worldview (i), (ii) and societal change (i) Reagan, Ronald (i), (ii) real economy, vs. financial economy (i), (ii), (iii), (iv) reallocation of business, and deregulation (i) recorded data (national accounts) vs. real value of improvements (i), (ii) regulation after 1980s–1990s deregulation wave (i), (ii) and bureaucracy brake (Germany) (i) and compliance officers (i) and costs and time lags (i) and decline of capitalism (i), (ii) economic regulation (i), (ii) financial regulations (i), (ii), (iii), (iv) and globalization (i) and gray capitalism (i) and healthcare sector (i), (ii), (iii), (iv) index of regulatory freedom (i), (ii) and industrial policy (i), (ii) and innovation (i), (ii), (iii), (iv), (v), (vi) and labor (i), (ii), (iii), (iv), (v) and lobbying (i) and managerialism (i), (ii) and market contestability (i), (ii) moving-target regulations (i) and multinationals (i) and pensions (i) permission-based regulatory culture (i), (ii) and permissionless innovation (i) and planning (i) and political romanticism (i) and political world (i), (ii) prescriptive vs. proscriptive (i), (ii) private standards (i) and R&D (i), (ii), (iii) and size of companies (i) social regulation (i), (ii) and trade (i), (ii), (iii) see also deregulation; legislation; regulatory complexity/uncertainty regulatory accumulation (i) regulatory bodies (i) regulatory complexity/uncertainty cadmium example (i), (ii) energy sector case (i), (ii) impact on economic growth (i) impact on innovation (i), (ii), (iii), (iv), (v) precautionary regulations (i), (ii), (iii), (iv) regulatory conflicts (i) regulatory/policy uncertainty and investment allocation (i), (ii) rise of regulatory uncertainty (i) see also deregulation; regulation renewable energy see green/renewable energy rent-seeking (i), (ii), (iii) rentier capitalism (i), (ii), (iii), (iv), (v), (vi) rentier formula, resource allocation according to (i) rentiers (i), (ii) reputation management (i) research concept of in corporate world (i), (ii) scientific research (i) see also cancer research; incremental development; R&D Research in Motion (RiM) (i), (ii) retail, and globalization (i) retirement age of (i) savings (i), (ii), (iii), (iv), (v), (vi), (vii) see also pensions Ricardo, David, wine-for-cloth thesis (i) rich people vs. capitalists (i), (ii) high-net-worth individuals (i) mass affluent (i) “one percent” (wealthiest group) (i) risk banks’ proneness to (i) and globalist worldview (i), (ii) and uncertainty (i), (ii) Robertson, Dennis (i) Robinson, James (i) robotics/robots and Asimov/science fiction (i) impact of on society (i) and labor (i), (ii), (iii), (iv), (v); Foxconn example (i) and technology-frustrated generation (i) see also artificial intelligence; automation; driverless vehicles; New Machine Age thesis; technology Rodman, Dennis (i) Rolling Stone (magazine), “Why Isn’t Wall Street in Jail?”

pages: 194 words: 49,310

Clock of the Long Now by Stewart Brand


Albert Einstein, Brewster Kahle, Buckminster Fuller, Colonization of Mars, complexity theory, Danny Hillis, Eratosthenes, Extropian, fault tolerance, George Santayana, Internet Archive, Jaron Lanier, Kevin Kelly, knowledge economy, life extension, Metcalfe’s law, nuclear winter, pensions crisis, phenotype, Ray Kurzweil, Robert Metcalfe, Stephen Hawking, Stewart Brand, technological singularity, Ted Kaczynski, Thomas Malthus, Vernor Vinge, Whole Earth Catalog

Kaplan, “And Now for the News,” The Atlantic Monthly (March 1997), p. 18. 1:47 “People care about their place in history when their own past is valued.” Rosabeth Moss Kanter, On the Frontiers of Management (Cambridge, MA: Harvard, 1997), pp. 281-2, 284. CHAPTER 23, GENERATIONS 1:50 Yet, each person’s portion of chronos—our lifespan—in fact has been increasing dramatically. The statistics in this paragraph come from: Marshall N. Carter and William G. Shipman, “The Coming Global Pension Crisis,” Foreign Affairs (November 1996), p. 98; Laura Carstenson, Stanford Alumni Magazine (March 1998), p. 48; and John W. Rowe, Robert L. Kahn, Successful Aging (New York: Pantheon, 1998), pp. 3, 6. 1:51 “When you live a really long time, it changes everything.” Bruce Sterling, Holy Fire (New York: Bantam, 1996), p. 36. 1:52 “Once an angry man dragged his father along the ground through his own orchard . . .”

pages: 209 words: 80,086

The Global Auction: The Broken Promises of Education, Jobs, and Incomes by Phillip Brown, Hugh Lauder, David Ashton


active measures, affirmative action, barriers to entry, Branko Milanovic, BRICs, business process, business process outsourcing, call centre, collective bargaining, corporate governance, creative destruction, credit crunch, David Ricardo: comparative advantage, deindustrialization, deskilling, Frederick Winslow Taylor, full employment, future of work, glass ceiling, global supply chain, immigration reform, income inequality, industrial cluster, industrial robot, intangible asset, job automation, Joseph Schumpeter, knowledge economy, knowledge worker, labour market flexibility, low skilled workers, manufacturing employment, market bubble, market design, neoliberal agenda, new economy, Paul Samuelson, pensions crisis, post-industrial society, profit maximization, purchasing power parity, QWERTY keyboard, race to the bottom, Richard Florida, Ronald Reagan, shareholder value, Silicon Valley, sovereign wealth fund, stem cell, The Bell Curve by Richard Herrnstein and Charles Murray, The Wealth of Nations by Adam Smith, Thomas L Friedman, trade liberalization, transaction costs, trickle-down economics, winner-take-all economy, working poor, zero-sum game

Such evidence led Jared Bernstein and Heidi Shierholz from the Washington-based Economic Policy Institute to conclude that these losses in coverage in high-quality jobs are a reminder that occupational upgrading—the shift to jobs higher up the occupational ladder—does not ensure higher rates of health insurance coverage. “No one is immune to the slow unraveling of the employer-based system.”25 Britain also has a pension crisis from which those in middle-class occupations are not immune, although a high quality National Health Service reduces the need for company-provided health insurance. In 1995, 5 million people remained in final-salary programs with a guaranteed proportion of their final salary in retirement, similar to the defined benefit pensions in the United States. But that number is now less than a million and likely to fall further as both public and private sector employers look to reduce costs.

pages: 219 words: 65,532

The Numbers Game: The Commonsense Guide to Understanding Numbers in the News, in Politics, and inLife by Michael Blastland; Andrew Dilnot


Atul Gawande, business climate, correlation does not imply causation, credit crunch, happiness index / gross national happiness, Intergovernmental Panel on Climate Change (IPCC), moral panic, pension reform, pensions crisis, randomized controlled trial, school choice, very high income

Picture that offending more properly as a vast vat of strawberry jam, think again about what single number can represent it, and see this massively difficult measurement for what it is. The fault here is not with numbers and the inevitable way that they must bully reality into some semblance of orderliness. It is with people, and our tendency to ignore that this compromise took place, while leaping to big conclusions. Is this a mere tabloid extravagance? Not at all: it is commonplace, in policymaking circles as in the media. When, amid fears of a pension crisis, the British government- appointed Turner Commission published a preliminary report in 2005 on the dry business of pension reform, it said 40 percent of the population was heading for “inadequate” provision in retirement. With luck, your definitional muscles will now be flexing: what do they mean by “inadequate”? In reaching that 40 percent figure—a shocking one—the Commission had said each to their own resources: either you have a pension or you don’t, a hard-and-fast definition like the interpretation in the yob survey of the law on assault, in or out but nothing in between, covered or not, according to your own and only your own finances.

pages: 209 words: 89,619

The Precariat: The New Dangerous Class by Guy Standing


8-hour work day, banking crisis, barriers to entry, basic income, Bertrand Russell: In Praise of Idleness, call centre, Cass Sunstein, centre right, collective bargaining, corporate governance, crony capitalism, deindustrialization, deskilling, fear of failure, full employment, hiring and firing, Honoré de Balzac, housing crisis, illegal immigration, immigration reform, income inequality, labour market flexibility, labour mobility, land reform, libertarian paternalism, low skilled workers, lump of labour, marginal employment, Mark Zuckerberg, mass immigration, means of production, mini-job, moral hazard, Naomi Klein, nudge unit, old age dependency ratio, pensions crisis, placebo effect, post-industrial society, precariat, presumed consent, quantitative easing, remote working, rent-seeking, Richard Thaler, rising living standards, Ronald Coase, Ronald Reagan, science of happiness, shareholder value, Silicon Valley, The Market for Lemons, The Nature of the Firm, The Spirit Level, Tobin tax, transaction costs, universal basic income, unpaid internship, winner-take-all economy, working poor, working-age population, young professional

Meanwhile, the groaners have no pension to write home about, have a residual mortgage or have nothing to write home about because they have no home. They need the money; they fear being out in the street, as a ‘bag lady’ or ‘bag man’. Their desperation makes them a threat to others in the precariat, since they will take anything going. And, whether groaners or grinners, old agers are being helped to compete with youth in the precariat, as governments react to the combination of the pension crisis and the perception that in the longer term there will be a labour shortage. First, governments are offering subsidies for private (and some public) pension investments. Fearing spiralling pension costs, governments have introduced tax incentives for private pension savings. These are inegalitarian, as are most subsidies. They are a bribe to those who can afford to do what is in their long-term interest.

pages: 207 words: 86,639

The New Economics: A Bigger Picture by David Boyle, Andrew Simms


Asian financial crisis, back-to-the-land, banking crisis, Bernie Madoff, Big bang: deregulation of the City of London, Bonfire of the Vanities, Bretton Woods, capital controls, carbon footprint, clean water, collateralized debt obligation, colonial rule, Community Supported Agriculture, congestion charging, corporate raider, corporate social responsibility, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, delayed gratification, deskilling,, energy transition, financial deregulation, financial exclusion, financial innovation, full employment, garden city movement, happiness index / gross national happiness, if you build it, they will come, income inequality, informal economy, Intergovernmental Panel on Climate Change (IPCC), Jane Jacobs, land reform, light touch regulation, loss aversion, mega-rich, microcredit, Mikhail Gorbachev, mortgage debt, neoliberal agenda, new economy, North Sea oil, Northern Rock, offshore financial centre, oil shock, peak oil, pensions crisis, profit motive, purchasing power parity, quantitative easing, Ronald Reagan, seigniorage, Simon Kuznets, sovereign wealth fund, special drawing rights, The Wealth of Nations by Adam Smith, Thomas L Friedman, too big to fail, trickle-down economics, Vilfredo Pareto, Washington Consensus, wealth creators, working-age population

(Note: this proposal has been put into practice in a basic form by the UK government and is known as ‘quantitative easing’.) 166 THE NEW ECONOMICS 8 Innovations for productive and secure savings (a): Introduce a ‘People’s Pension’ to provide secure savings vehicles for retirement Attempts to leverage private sector cash to pay for schools and hospitals have repeatedly been exposed as bad deals for the public. At the same time we now have a pension crisis. People in Britain are seeing their life savings destroyed by the fallout from the credit crisis. In 2003, nef proposed the idea of a ‘People’s Pension’; its approach gives people more control over where their savings go and what they are invested in. It proposes an adaptable model more insulated from market turbulence than orthodox pensions schemes. As such, it will be more attractive to the millions of people seeking financial security in old age.

Future Files: A Brief History of the Next 50 Years by Richard Watson


Albert Einstein, bank run, banking crisis, battle of ideas, Black Swan, call centre, carbon footprint, cashless society, citizen journalism, commoditize, computer age, computer vision, congestion charging, corporate governance, corporate social responsibility, deglobalization, digital Maoism, disintermediation, epigenetics, failed state, financial innovation, Firefox, food miles, future of work, global supply chain, global village, hive mind, industrial robot, invention of the telegraph, Jaron Lanier, Jeff Bezos, knowledge economy, linked data, low skilled workers, M-Pesa, mass immigration, Northern Rock, peak oil, pensions crisis, precision agriculture, prediction markets, Ralph Nader, Ray Kurzweil, rent control, RFID, Richard Florida, self-driving car, speech recognition, telepresence, the scientific method, The Wisdom of Crowds, Thomas Kuhn: the structure of scientific revolutions, Turing test, Victor Gruen, white flight, women in the workforce, Zipcar

However, there is also a strong possibility that China, unlike India, will self-destruct or turn inwards. This could be caused by a number of factors. Social unrest Government and Politics 93 created by a global economic downturn is one possibility; a domestic banking crisis brought about by the sheer weight of bad loans is another. I strongly believe that ageing is still the most significant trend overall, although it is not entirely inconceivable that any resultant pensions crisis could be solved by a sudden and unexpected rise in fertility rates. Beyond these observations, much has stayed the same. Russia is still on a course for demographic oblivion, with around half its population disappearing by the year 2050, and politicians are still getting away with taxation by stealth — most notably by forcing people to pay for things they have already paid for once through taxation, or by fining people for relatively minor legal infringements (for example, councils fining households for overflowing rubbish bins, caused in part by the rubbish not being collected frequently enough).

words: 49,604

The Weightless World: Strategies for Managing the Digital Economy by Diane Coyle


barriers to entry, Berlin Wall, Big bang: deregulation of the City of London, blue-collar work, Bretton Woods, clean water, computer age, Corn Laws, creative destruction, cross-subsidies, David Ricardo: comparative advantage, dematerialisation, Diane Coyle, Edward Glaeser, everywhere but in the productivity statistics, financial deregulation, full employment, George Santayana, global village, hiring and firing, Howard Rheingold, income inequality, informal economy, invisible hand, Jane Jacobs, Joseph Schumpeter, knowledge economy, labour market flexibility, laissez-faire capitalism, lump of labour, Marshall McLuhan, mass immigration, McJob, microcredit, moral panic, Network effects, new economy, Nick Leeson, night-watchman state, North Sea oil, offshore financial centre, pension reform, pensions crisis, Ronald Reagan, Silicon Valley, spinning jenny, The Death and Life of Great American Cities, the market place, The Wealth of Nations by Adam Smith, Thorstein Veblen, Tobin tax, two tier labour market, very high income, War on Poverty, winner-take-all economy, working-age population

The big catch for the government with making the switch from pay-asyou-go state pensions to funded private pensions is that it still has to pick up the bill for today’s pensions when today’s workforce is paying into its own retirement savings account rather than paying social security contributions to the state scheme. The money has to come from other taxes or borrowing, of course. There is no way round the fact that the transition will make the public finances worse before it makes them better. Despite the catch, most of the industrial countries will probably end up introducing something similar. Even in Britain, where there is no looming pensions crisis in terms of government finance because of the capping of the state pension and introduction of private pensions in the 1980s, there is still interest in reform because of fears that people are simply not saving enough towards their old age. It is an optional system, and millions will end up on unsatisfactory state pensions whose value will have been eroded because they The Weightless World 160 are linked to prices rather than earnings.

pages: 366 words: 117,875

Arrival City by Doug Saunders


agricultural Revolution, Ayatollah Khomeini, Berlin Wall, Branko Milanovic, call centre, credit crunch, Deng Xiaoping, desegregation, ghettoisation, Gini coefficient, guest worker program, Hernando de Soto, Honoré de Balzac, illegal immigration, immigration reform, income inequality, informal economy, Jane Jacobs, Kibera, land reform, land tenure, low skilled workers, mass immigration, megacity, microcredit, new economy, Pearl River Delta, pensions crisis, place-making, price mechanism, rent control, Silicon Valley, special economic zone, the built environment, The Chicago School, The Death and Life of Great American Cities, upwardly mobile, urban planning, urban sprawl, white flight, working poor, working-age population

222–23. 5 Dilip Ratha, “Revisions to Remittance Trends 2007,” in Migration and Development Brief 5 (World Bank, 2007). 6 For a moving account of the psychological effects of this mass family displacement, see Fan Lixin’s film Last Train Home. 7 A new social security system launched by Beijing in December 2009 will take many years to implement and may prove fiscally impossible to apply fully. See Howard W. French, “Pension Crisis Looms for China,” International Herald Tribune, Mar. 20, 2007; Ariana Eunjung Cha, “In China, Despair Mounting among Migrant Workers,” The Washington Post, Mar. 4, 2009. 8 James Kynge, “China’s Workers Enable Village Consumer,” Financial Times, Feb. 26, 2004. 9 Rob Young, “China’s Workers Return to Cities,” BBC News, Sept. 8, 2009. 10 Michael Lipton and Qi Zhang, “Reducing Inequality and Poverty During Liberalisation in China: Rural and Agricultural Experiences and Policy Options” (Brighton: PRUS Working Paper no. 37, 2007); OECD, “Review of Agricultural Policies—China” (2005). 11 Ran Tao and Zhigang Xu, “Urbanization, Rural Land System and Social Security for Migrants in China,” Journal of Development Studies 43, no. 7 (2007): 1,309. 12 Srijit Mishra, “Farmers’ Suicides in Maharashtra,” Economic and Political Weekly, Apr. 22, 2006. 13 Debarshi Das, “Persistence of Small-Scale, Family Farms in India: A Note,” The Journal of International Trade & Economic Development 16, no. 3 (2007); Srijit Mishra, “Agrarian Scenario in Post-Reform India: A Story of Distress, Despair and Death” (Mumbai: Indira Gandhi Institute of Development Research, 2007). 14 Katy Gardner, “Keeping Connected: Security, Place and Social Capital in a ‘Londoni’ Village in Sylhet,” Journal of the Royal Anthropological Institute 14 (2008). 15 Tasneem Siddiqui, “Migration as a Livelihood Strategy of the Poor: The Bangladesh Case,” in Regional Conference on Migration, Development and Pro-Poor Policy Choices in Asia (Dhaka: RMMRU, 2003). 16 Katy Gardner and Zahir Ahmed, “Place, Social Protection and Migration in Bangladesh: A Londoni Village in Biswanath” (Brighton: Development Research Centre on Migration, Globalisation and Poverty, 2006).

pages: 515 words: 142,354

The Euro: How a Common Currency Threatens the Future of Europe by Joseph E. Stiglitz, Alex Hyde-White


bank run, banking crisis, barriers to entry, battle of ideas, Berlin Wall, Bretton Woods, capital controls, Carmen Reinhart, cashless society, central bank independence, centre right, cognitive dissonance, collapse of Lehman Brothers, collective bargaining, corporate governance, correlation does not imply causation, credit crunch, Credit Default Swap, currency peg, dark matter, David Ricardo: comparative advantage, disintermediation, diversified portfolio, eurozone crisis, Fall of the Berlin Wall, fiat currency, financial innovation, full employment, George Akerlof, Gini coefficient, global supply chain, Growth in a Time of Debt, housing crisis, income inequality, incomplete markets, inflation targeting, information asymmetry, investor state dispute settlement, invisible hand, Kenneth Arrow, Kenneth Rogoff, knowledge economy, labour market flexibility, labour mobility, light touch regulation, manufacturing employment, market bubble, market friction, market fundamentalism, Martin Wolf, Mexican peso crisis / tequila crisis, money market fund, moral hazard, mortgage debt, neoliberal agenda, new economy, open economy, paradox of thrift, pension reform, pensions crisis, price stability, profit maximization, purchasing power parity, quantitative easing, race to the bottom, risk-adjusted returns, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, secular stagnation, Silicon Valley, sovereign wealth fund, the payments system, The Wealth of Nations by Adam Smith, too big to fail, transaction costs, transfer pricing, trickle-down economics, Washington Consensus, working-age population

The worry is that attempts to regulate, to prevent such abuses, will now become a cross-border dispute, with the German government (and therefore the Troika) taking the side of the oligarch/German partnership against the public interest. 31 In the case of Greece, the historically tense relationship with Turkey makes cutbacks in military spending especially difficult, even though when Georges Papandreou was foreign minister, there was a serious rapprochement. 32 See John Henley, “ ‘Making Us Poorer Won’t Save Greece’: How Pension Crisis is Hurting Its People,” Guardian, June 17, 2015. 33 Matthew Dalton, “Greece’s Pension System Isn’t That Generous After All,” Wall Street Journal, February 27, 2015. 34 Whether part of the formal or implied contract is of secondary concern. 35 There is an exception: when pensions have been gratuitously increased after the work has been done. In that case, the worker has been given a “gift,” which was not part of the contract.

pages: 409 words: 138,088

Moondust: In Search of the Men Who Fell to Earth by Andrew Smith


British Empire, Buckminster Fuller, cuban missile crisis, full employment, game design, Haight Ashbury, Jeff Bezos, Mark Shuttleworth, Mars Rover, Marshall McLuhan, Mikhail Gorbachev, Naomi Klein, Norman Mailer, nuclear winter, pensions crisis, Ronald Reagan, V2 rocket

” And all before we even reach the Little Ice Age, which gripped Europe for four hundred years from the mid-1400s and may be implicated in the persecution of witches, the French Revolution and the mysterious sublimity of Antonio Stradivari’s violins, and Schmitt’s unsettling doubt about the theory that global warming is human-induced. (He thinks we might have more to fear from the fact that periods of warming are often followed by rapid cooling: interestingly, current NASA scientists profoundly disagree with him.) We roam at length through the looming pensions crisis – the world’s most unsexy issue back in 1980 when Jack tried to bring it to a reluctant Senate’s attention (precipitated by our old friends the Baby Boomers, who will die with the rare distinction of having royally pissed off their parents and progeny in equal measure); and over the careerism, venality and bias toward incumbents that Schmitt encountered in the Senate, where “there’s no competitive races anymore … the gerrymandering … if an incumbent decides to run for reelection, they’ve got a ninety-eight per cent chance of winning, and it’s been that way for decades.”

pages: 515 words: 132,295

Makers and Takers: The Rise of Finance and the Fall of American Business by Rana Foroohar


3D printing, accounting loophole / creative accounting, activist fund / activist shareholder / activist investor, additive manufacturing, Airbnb, algorithmic trading, Alvin Roth, Asian financial crisis, asset allocation, bank run, Basel III, bonus culture, Bretton Woods, British Empire, call centre, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, carried interest, centralized clearinghouse, clean water, collateralized debt obligation, commoditize, computerized trading, corporate governance, corporate raider, corporate social responsibility, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, crowdsourcing, David Graeber, deskilling, Detroit bankruptcy, diversification, Double Irish / Dutch Sandwich, Emanuel Derman, Eugene Fama: efficient market hypothesis, financial deregulation, financial intermediation, Frederick Winslow Taylor, George Akerlof, gig economy, Goldman Sachs: Vampire Squid, Gordon Gekko, greed is good, High speed trading, Home mortgage interest deduction, housing crisis, Howard Rheingold, Hyman Minsky, income inequality, index fund, information asymmetry, interest rate derivative, interest rate swap, Internet of things, invisible hand, John Markoff, joint-stock company, joint-stock limited liability company, Kenneth Rogoff, knowledge economy, labor-force participation, labour mobility, London Whale, Long Term Capital Management, manufacturing employment, market design, Martin Wolf, money market fund, moral hazard, mortgage debt, mortgage tax deduction, new economy, non-tariff barriers, offshore financial centre, oil shock, passive investing, Paul Samuelson, pensions crisis, Ponzi scheme, principal–agent problem, quantitative easing, quantitative trading / quantitative finance, race to the bottom, Ralph Nader, Rana Plaza, RAND corporation, random walk, rent control, Robert Shiller, Robert Shiller, Ronald Reagan, Satyajit Das, Second Machine Age, shareholder value, sharing economy, Silicon Valley, Silicon Valley startup, Snapchat, sovereign wealth fund, Steve Jobs, technology bubble, The Chicago School, the new new thing, The Spirit Level, The Wealth of Nations by Adam Smith, Tim Cook: Apple, Tobin tax, too big to fail, trickle-down economics, Tyler Cowen: Great Stagnation, Vanguard fund, zero-sum game

Amazingly, there is more debt in the world today than there was before the 2008 financial crisis—the difference is that now governments have even more debt than the financial sector.42 That means governments will not easily be able to take up the slack from the markets and provide a retirement safety net for citizens. Indeed, governments not just in the United States but everywhere will increasingly be looking to cut social programs and benefits rather than augment them (just look at what’s happening in Europe today). This adds further fuel to the fire of the pension crisis. Finally, retail and institutional investors are beginning to understand how badly they’ve been fleeced by the asset management business. The year 2014 was a particularly dismal one for active fund managers—more of them failed to beat the market benchmarks than at any time in the past thirty years. Perhaps out of obliviousness to rising populist anger, or maybe out of an urge to grab the last gains from a gravy train that will surely leave soon, asset managers have been paying themselves more, even as they offer investors less.