Linkage

The Financial Instability Hypothesis (FIH) has both empirical and theoretical aspects that challenge the classic precepts of Smith and Walras, who implied that the economy can be best understood by assuming that it is constantly an equilibrium-seeking and sustaining system. The theoretical argument of the FIH emerges from the characterization of the economy as a capitalist economy with extensive capital assets and a sophisticated financial system.

In spite of the complexity of financial relations, the key determinant of system behavior remains the level of profits: the FIH incorporates a view in which aggregate demand determines profits. Hence, aggregate profits equal aggregate investment plus the government deficit. The FIH, therefore, considers the impact of debt on system behavior and also includes the manner in which debt is validated.

Minsky identifies hedge, speculative, and Ponzi finance as distinct income-debt relations for economic units. He asserts that if hedge financing dominates, then the economy may well be an equilibrium-seeking and containing system: conversely, the greater the weight of speculative and Ponzi finance, the greater the likelihood that the economy is a "deviation-amplifying" system. Thus, the FIH suggests that over periods of prolonged prosperity, capitalist economies tend to move from a financial structure dominated by hedge finance (stable) to a structure that increasingly emphasizes speculative and Ponzi finance (unstable). The FIH is a model of a capitalist economy that does not rely on exogenous shocks to generate business cycles of varying severity: business cycles of history are compounded out of (i) the internal dynamics of capitalist economies, and (ii) the system of interventions and regulations that are designed to keep the economy operating within reasonable bounds.

This Article works to debunk the myth of finance as intermediated scarce private capital and offers an alternative, more up-to-date theoretical framework for understanding the structure and operation of our financial system. We argue that, contrary to contemporary orthodoxy, modern finance is not primarily scarce, privately provided, and intermediated, but is, in its most consequential respects, indefinitely extensible, publicly supplied, and publicly disseminated. At its core, the modern financial system is effectively a public-private partnership that is most accurately, if unavoidably metaphorically, interpreted as a franchise arrangement. Pursuant to this arrangement, the sovereign public, as franchisor, effectively licenses private financial institutions, as franchisees, to dispense a vital and indefinitely extensible public resource: the sovereign’s full faith and credit.

Job providers are being paid millions of dollars in public money for work that jobseekers are finding themselves, with advocates saying there is “simply no reason” for the payments.

The Department of Employment and Workplace Relations has paid providers more than $3.6m in the past five years for pre-existing employment, where someone on jobseeker found a job prior to starting with a provider, according to data provided to Guardian Australia by the department.

The data shows there has been an uptick in pre-existing employment payments, with providers receiving $1.1m in the 2023-2024 financial year, more than double the $464,200 paid in 2019-2020.

• In short: A former ADF chief says the federal government either doesn't understand or is hiding from the public the risk of climate change to national security.
• Admiral Chris Barrie says mass migration, food insecurity and other climate risks must be addressed by government and defence.
• What's next? The group of former defence and intelligence officials have called for a secret climate security report to be made known for public debate.

Rapid diffusion of solutions to a changing climate is paramount if the US is to mitigate carbon emissions. A timely response depends on how people perceive and understand innovations such as new practices, programs, policies, and technologies that promise to reduce emissions. This article explores multisolving innovations in the context of interventions that can be targeted to community leaders and decision makers. We focus on examples led by policy staff; directors of municipal offices and departments of transportation, housing, sustainability, urban planning, and public health; and elected county and city officials where there may be mixed support for efforts to reduce carbon emissions, to show that some innovations can be accurately framed solely in terms of community health benefits. When communicating with stakeholders who are dismissive or skeptical of climate change, we suggest using messages that describe the benefits of mitigation innovations in terms of human health, rather than climate, to achieve broader acceptability.

Many users of web search engines have been complaining in recent years about the supposedly decreasing quality of search results. This is often attributed to an increasing amount of search-engine-optimized but low-quality content. Evidence for this has always been anecdotal, yet it’s not unreasonable to think that popular online marketing strategies such as affiliate marketing incentivize the mass production of such content to maximize clicks. Since neither this complaint nor affiliate marketing as such have received much attention from the IR community, we hereby lay the groundwork by conducting an in-depth exploratory study of how affiliate content affects today’s search engines. We monitored Google, Bing and DuckDuckGo for a year on 7,392 product review queries. Our findings suggest that all search engines have significant problems with highly optimized (affiliate) content—more than is representative for the entire web according to a baseline retrieval system on the ClueWeb22. Focussing on the product review genre, we find that only a small portion of product reviews on the web uses affiliate marketing, but the majority of all search results do. Of all affiliate networks, Amazon Associates is by far the most popular. We further observe an inverse relationship between affiliate marketing use and content complexity, and that all search engines fall victim to large-scale affiliate link spam campaigns. However, we also notice that the line between benign content and spam in the form of content and link farms becomes increasingly blurry—a situation that will surely worsen in the wake of generative AI. We conclude that dynamic adversarial spam in the form of low-quality, mass-produced commercial content deserves more attention.

In the past decade, more than 29,000 people have either died or disappeared trying to cross the Mediterranean. Each had a name, a face and a story. Each life was a miracle to those that loved and depended on them — and each death a stain on the collective conscience of those who have criminalised human beings just trying to survive. Politicians across Europe know that their hardline immigration policies will not stop people making the treacherous journey across the Channel. That’s not the point. Their intention is to whip up hatred, division and fear.

To many in our political class, mass death at sea is simply the price of grown-up ‘pragmatism’. Conservative and Social Democratic governments alike tell us this the only way to stave off the rise of the far-right: the AfD in Germany, Marine Le Pen in France, the Freedom Party in Austria, Vox in Spain, the Swedish Democrats, to name a few. However, governments who embrace anti-migrant rhetoric do not neutralise the far-right — they only legitimise them and embolden them.

AMMAN, Jordan — If the war in Gaza stopped today, it would still take until 2040 to rebuild all the homes that have been destroyed in nearly seven months of Israel’s bombardment and ground offensives in the territory, according to United Nations estimates released Thursday.

“Every additional day that this war continues is exacting huge and compounding costs to Gazans and all Palestinians” said United Nations Development Programme Administrator Achim Steiner.

At least 370,000 housing units in Gaza have been damaged, including 79,000 destroyed completely, according to the new report by the UNDP and the Economic and Social Commission for Western Asia, which details how Israel’s assault, launched after Hamas’ Oct. 7 attack, has devastated the economy of the Palestinian territories, and how the impact will increase the longer the conflict goes on.

After previous Israel-Hamas conflicts, housing was rebuilt at a rate of 992 units year. Even if Israel allows a five-fold increase of construction material to enter Gaza, it would take until 2040 to rebuild the destroyed houses, without repairing the damaged ones, the report said.

We’re screwed if housing prices keep going up. We’re also screwed if they go down.

That’s the trap.

It should be obvious by now that the housing crisis is a complex, multi-faceted issue. There is no one silver bullet for addressing it. Unwinding the trap in a way that doesn’t cause a new Great Depression is going to take a lot of different changes working together in order to shift to a housing market that is responsive to local needs, rather than to global capital flows and national fiscal and interest-rate policy.

We need to rapidly add more housing at affordable price points. We also need to avoid crashing the current housing market. We need to encourage investment in our communities, increasing local economic productivity, without allowing all the profits to be siphoned out to faraway global investors. And we need to do it without adding more infrastructure liabilities to our already struggling cities.

What that will look like is more people doing home-to-duplex conversions, building backyard cottages, allowing more small businesses to mix into our residential neighborhoods to create local jobs while eliminating productivity-killing commutes, and growing local financing options.

The study, conducted by experts from the University of Wisconsin School of Medicine and Public Health, examines reported regret rates for dozens of surgeries as well as major life decisions and compares them to the regret rates for transgender surgeries. It finds that "there is lower regret after [gender-affirming surgery], which is less than 1%, than after many other decisions, both surgical and otherwise." It notes that surgeries such as tubal sterilization, assisted prostatectomy, body contouring, facial rejuvenation, and more all have regret rates more than 10 times as high as gender-affirming surgery.

[…]

The review also finds that regret rates for gender-affirming surgeries are lower than those for many life decisions. For instance, the survey found that marriage has a regret rate of 31%, having children has a regret rate of 13%, and at least 72% of sexually active students report regret after engaging in sexual activity at least once. All of these are notably magnitudes higher than gender affirming surgery.

[…]

The review has sharp critiques for those who use claims of “regret” to justify bans on gender affirming care: "Unfortunately, some people seek to limit access to gender-affirming services, most vehemently gender-affirming surgery, and use postoperative regret as reason that care should be denied to all patients. This over-reaching approach erases patient autonomy and does not honor the careful consideration and multidisciplinary approach that goes into making the decision to pursue gender-affirming surgery… [other] operations, while associated with higher rates of post-operative regret, are not as restricted and policed like gender-affirming surgery.”