Simon Kuznets’s Happy Prognosis Crushed in an Ideological Coup

In 1955, economist Simon Kuznets suggested that, while inequality increases during early economic development, in later stages it declines. However, this felicitous hypothesis has been contradicted by inequality’s explosion since the 1970s. This explosion was energized by President Ronald Reagan’s declaration in 1981 that “government is the problem.” Turning popular sentiment against government was an ideological coup, because only government policies can decrease inequality. Government was not reduced in size or in its intervention into the workings of the economy, but policies shifted radically in favor of the wealthy. Taxes were cut for the rich, the economy was significantly deregulated, and welfare measures were trimmed. This chapter unfolds the dynamics that enabled laissez-faire ideology to revive and become more entrenched than ever before. It clarifies how this ideology managed to survive the Great Recession following the financial crisis of 2008, during and after which inequality has continued to explode.

Crisis and Dystopia in the Current Spanish Novel Un incendio invisible, by Sara Mesa and Por si se va la Luz, by Lara Moreno

Europe in general and Spain in particular are still experiencing the consequences of the 2008 financial crisis. Spanish cultural narratives have imagined other possible scenarios around a financial crisis that has not only been an economic one, but also a social one. In that context, Spanish literature was used not only as a means to elaborate coherent narratives in times of crisis but also as a space to create other possible worlds. The novels Un incendio invisible (2011), by Sara Mesa, and Por si se ve la Luz (2013), by Lara Moreno, are both set in imaginary places in which their protagonists – sometimes driven by desire and other times by necessity – survive in hostile, abandoned and primitive places. The article attempts to analyse the dominance of the construction of dystopian places and the creation of ‘another possible world’ as a consequence of the financial crisis of 2008.

Investigating the Financial Crisis in 2008 from the Perspective of Banking Systems

The financial crisis of 2008 precipitated by credit issues in the US housing market is probably one of the most profound financial events in recorded history. Its shockwaves have significantly affected almost every market centre as well as country in the world. The aim of this report is accordingly to investigate major reasons behind the crisis from a special angle of banking systems. In particular, problems hidden in regulations, mechanisms and systems in the wake of the financial crisis are focused specifically in this report.

Companies under stress: the impact of shocks on the production network

In this paper we analyze the effect of shocks in production networks. Our work is based on a rich dataset that contains information about companies from Slovenia right after the financial crisis of 2008. The processed data spans for 8 years and covers the transaction history as well as performance indicators and various metadata of the companies. We define sales shocks at different levels, and identify companies impacted by them. Next we investigate stress, the potential immediate upstream and downstream impact of a shock within the production network. We base our main findings on a matched pairs analysis of stressed companies. We find that both shock and stress are associated with reporting bankruptcy in the future and that stress foremost impacts the future sales of customers. Furthermore, we find evidence that stress not only results in performance losses but the reconfiguration of the production network as well. We show that stressed companies actively seek for new trading partners, and that these new links often share the industry of the shocked company. These results suggest that both stressed customers and suppliers react quickly to stress and adjust their trading relationships.

Which factors support trust in the recommendation process of pension products? Trust and pension products

During the financial crisis of 2008/2009, financial institutions such as banks and insurance companies have lost trust of their customers. In the recommendation process of pension products, trust plays an important role since cash flows from retirement products accrue decades ahead. Using the results from a survey, we find that financial institutions still struggle to deliver trust to their customers when they recommend different categories of retirement products. Other recommending parties such as academic financial experts or close friends, however, are able to establish a high level of trust. We therefore investigate factors of alternative channels to establish trust such as the recommendation process or product features.

A Comparative Analysis of Air Pollution Levels During Times of International Uncertainty: The Financial Crisis of 2008 and the COVID-19 Pandemic of 2020

During a crisis, economies stagnate as uncertainty grows about the future state of the world. The financial crisis of 2008 led to a severe recession where the global economy halted for approximately two years, causing unemployment and poverty [1]. Coronavirus disease 2019 (COVID-19), which attacks the respiratory system [2], was first identified in Wuhan, China, in late December of 2019. Within a matter of months, it spread globally causing economies to shut down. As distinct as the financial crisis of 2008 may seem from the COVID-19 pandemic lockdowns, both have had devastating effects on national economies and industrial production, resulting in an overall decrease in air pollutant emissions such as carbon dioxide (CO2) and nitrogen oxides (NOx). Therefore, parallels can be made between air pollution levels during each crisis. Given air pollution rates increased after the financial crisis of 2008 [3], it is likely air pollution will also rise in the aftermath of the COVID-19 pandemic. This study aims to support this argument by analyzing air pollution trends outlined in the results of several published papers.

OPTIMAL INCENTIVES FOR ECONOMIC GROWTH IN CENTRAL EUROPEAN COUNTRIES: A MICRO APPROACH

Financial crisis of 2008 and the ongoing pandemic are continuing to have a negative impact on the economies of all countries even tough interest rates have been decreased significantly. This paper attempted to view the problem from a micro point of view to suggest more effective incentives for growth. The specific objective of the study is to determine and examine the effects of these incentives on economic growth in Central European countries.