It’s the Economy, (not) stupid!

I’ve never met Paul Wyatt – who describes himself as a self-producing filmmaker and media consultant. I’ve admired his work from a distance though, both as an inspiration for my own efforts to transform myself into a multi-media journalist and also for the subject matter he’s currently focused on.

I’m highlighting his work to Equality by Lot readers as you may be able to help him – right now – to raise some money to promote the cause of random selection and deliberation as it relates to economic policy. The challenge he’s facing is directly relevant to EbL readers. You are people, I assume, who are intent on spreading awareness and best practice of sortition in its different forms.

If Paul gets the money, and completes his film, we’ll all have a tool to help us argue the case for citizens to get a stronger voice in directing economic policy.

That’s why I’m spending some of my time writing this blog post.

Paul is crowdfunding for the money to complete a film on the RSA’s Citizens’ Economic Council.

The RSA programme gave randomly selected British citizens a non-binding say on national economic policy, and influence over the future of the UK economy.

So far, so so, you demanding EbL readers would say. You’d be right, of course, the Council conclusions didn’t oblige any policy maker to do anything with those findings, regardless of how good they might have been. Not at all best practice in sortition land but not catastrophically bad either.

The RSA initiative has had some heavyweight endorsement from the likes of Andrew Haldane, Chief Economist at the Bank of England. Who knows how far its recommendations will make it through the mechanisms of government and public policy? Perhaps its best legacy will be to move the debate and practices forward for others to then pick them up in turn.

Paul secured an RSA commission to document this event – something he did with skill and style in the short film shown below. You can access the kickstarter campaign via this link, and share it far and wide to your networks.
 

How to make your $$$$ lose value — randomly

Imagine that the Fed were to announce that, a year from today, it would pick a digit from zero to 9 out of a hat. All currency with a serial number ending in that digit would no longer be legal tender. Suddenly, the expected return to holding currency would become negative 10 percent.

This, was the suggestion put forward in 2009 by the economist N. Gregory Mankiw, chairman of the Council of Economic Advisers under President George W. Bush, to overcome the ‘problem’ that the dollar/pound/euro in your pocket could not be taxed when inflation falls below zero.

“Academic Choice Theory” in Political Science?

There is a rather brilliant satire on the Naked Capitalism blog about how the incentives (positive feedback loops) create a systemic bias among economists to expound theories that support the status quo or the biggest wallets. Sortition and rotation of economists is suggested as a remedy.

What kinds of proposals could help to minimize value destruction by academic economists? You are quite right that from the point of view of the public this issue looms large. Even in most Western democracies, more than half of the total GDP is allocated according to principles promoted by agents subject to Academic Choice dynamics, i.e. economists. One simple remedy to the large negative externalities generated through their academic entrepreneurship could be to shrink the size of the sector of academic economists.

Another approach is indicated by the game theoretic insight that winning strategies in competitive games usually involve a random element. Following this principle, ever since antiquity trials have been decided by juries who are chosen by lot. We should therefore strongly consider periodically repopulating economics departments with people selected at random.

I wonder how many political scientists see a kind of “academic choice theory” in operation in the profession?