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After years of quasi-neglect, economic inequality has taken center stage in the policy debate worldwide. In advanced economies, the apparent impact of globalization and technological change and the cost of counteracting these forces is raising concern. In developing economies, where inequality is higher, the issue is whether it poses a major obstacle to raising growth and reducing poverty. In both cases, the redistribution of income might achieve not only greater equality but also faster growth and, for developing economies, faster poverty reduction.
Is such a strategy of static and dynamic income equalization immune to the efficiency cost of redistribution? In other words, do these taxes and transfers take away the incentives for people to work, save, and become entrepreneurs? Given the limited scope of redistribution in developing economies, it is unlikely that it would have much effect on economic incentives. Substantial income tax progressivity may indeed be achieved with marginal tax rates much below those in advanced economies, where redistribution is not considered to be an obstacle to growth (Lindert 2004). Also, replacing distortionary indirect taxes or subsidies with income transfers should improve efficiency. Moreover, conditional cash transfers appear to have no significant negative effect on labor supply; they may even encourage entrepreneurship (Bianchi and Boba 2013).
It is up to governments to choose their preferred policy combination. The choice is difficult because some parties will necessarily lose in the short run and might not make up for this loss anytime soon. Yet instruments are available today that would benefit all in the long run, through faster growth, more rapid poverty reduction, and less inequality. It would be a serious mistake not to make use of them.
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Road Trip! A journey through a quintessentially American phenomenon, the family vacation by car. Also, how the Olmsted family created an amazing array of public outdoor spaces, photographer Carol Highsmith takes a full-length portrait of America, and our picks of the national parks.
The Library of Congress this summer marks a major milestone: the 150th anniversary of copyright at the Library. Also, copyrighting the Statue of Liberty; why copyright protects the great American novel but not a selfie taken by a monkey; and Broadway composer Stephen Schwartz discusses the importance of copyright to creators.
The Library commemorates the 75th anniversary of World War II and the service of the men and women who fought it. Also, a one-of-a-kind Japanese map details the damage inflicted at Pearl Harbor, and Manuscript Division collections preserve photos taken in the field by Gen. George S. Patton.
The Library seeks, finds and collects the creative output of the entire world in every format imaginable. Also, the path a book takes when it comes to the Library, remarkable gifts, the Civil War in 3-D and more.
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Looking at these cases and the legislative history of the Copyright Act of 1976, the following are factors that a court might take into account, in the framework of the four factor fair use analysis, in determining whether a given instance of photocopying for course use constituted fair use. Some of the questions bear on more than one of the four statutory factors, which remain the touchstone.
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When we discussed proof-of-work mining, I said that crypto systems are designed to operate on consensus among people with an economic stake in the system. PoW systems demonstrate economic stake in a cleverly indirect way: You buy a bunch of computer hardware and pay for a lot of electricity and do a bunch of calculations to prove you really care about Bitcoin. PoS systems demonstrate the economic stake directly: You just invest a lot of money in Ethereum and post it as a bond, which proves you care.
But another thing you get is a share in the Bitcoin project. Not a share of actual stock, but still a chance to profit from the success of Bitcoin. If this digital cash thing takes off, then lots of people will want Bitcoin to use to buy sandwiches, and there will be a lot of demand for Bitcoin. But only 21 million Bitcoin will ever exist. So each Bitcoin will be more valuable as more people decide to use Bitcoin as their way to transfer digital cash.
The modern banking system is a machine that takes in risky assets at one end, takes senior claims on them (lending money against those assets, with the right to be paid back first), repeats that move a few times (taking and issuing senior claims on the senior claims56), and spits out dollars at the other end. A dollar is distilled from risky assets.
Everything is like this. In proof-of-stake Ethereum, you can stake Ether to earn staking rewards. A protocol called Lido runs a big staking pool. If you stake your Ether with Lido, it will give you back a token called stETH, basically a receipt for your staked Ether. The Ether that you staked with Lido will earn staking rewards, while the stETH that you get back can be sold or invested in other DeFi protocols to earn more money.
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