Recent Cakeeconomics Event

Two things marked the evening of our Cakeconomics event: fascinating insights from the speakers and a massive sugar rush. We had Martin Hess, an academic here at Manchester giving us a mini-lecture based on a theory by G.L. Clark about what characterizes the flow of money around the world. And Simon Edelston, who gave us some geographical indicators that he looks out for as an investment banker. The main thrust of Martin Hess’ talk was that the way that money flows around the world is consistent with mercury: in clumps and very fast. Symbolising the lightning speed with which transactions take place and the tendency of money and wealth to concentrate and then swiftly move on, which, combined with other factors, throws up problems. The main thrust of Simon Edelston’s talk was on demographics as an indication of a country’s future success and as such, it’s suitability for investment. Edelston, in some ways contrary to Hess, did overall come out ‘in defence’ of global capitalism. Which was refreshing because it created a little controversy(often little controversy is created at our events). Much discussion was had over the cake, again constituting a fun and pluralistic approach to economics. Raised in the talks were questions central to the study of economics and yet there was not a formula in sight. PCES are holding a conference on the 18th and 19th of March(this Saturday and Sunday) on the ‘Big Questions’ of economics. Many high profile and very interesting speakers will be attending. Tickets are still available, so have a look on the Facebook page. We hope to see you there!...

The Employers Panel Event

On Tuesday 7th February we were lucky enough to be joined by Frances Coppola, a former banker and now prominent financial writer, Andy Ross a former deputy of the Treasury and Howard Kingston, head of maritime insurance at the Zurich Insurance Group. Where we settled into a lecture theatre for an evening of insights into the world of work. A number of themes stood out, some related closely to the guiding topic of the talk (‘are our degrees failing us’) and most about general advice on how to approach the world of work. The message was nuanced, but broadly similar across the board: are degrees are not failing us, but they could be a lot better and more applicable to the working world. This models we learn are not useless but not always useful, and that what we learn is far from the whole picture. Andy Ross gave a number of very funny accounts of people using simple macroeconomic models to look at issues as complex as immigration. To this end Frances Coppola had a lot to say. Adding that we need to understand how things actually are: banks create nearly all of the money in circulation and that money itself, while it is often skirted over as a ‘means of exchange’, it can be far better understood as a product in of itself. A product that is bought and sold at a price determined by market forces, just like any other(take the dollar as an example here). Can an economics education that doesn’t really factor this in be considered fit for purpose? The world is messy and complex...
What You Won’t Learn In An Economics Degree: Ecological Economics

What You Won’t Learn In An Economics Degree: Ecological Economics

The UoM Post-Crash Economics Society were lucky to have Kate Raworth from the University of Oxford present her work on Ecological Economics. Ecological Economics is perhaps one of the most important ways of thinking alternatively about the economy, and creates a real conversation about sustainability and the economy’s place within the ecosystem. To view the economy as an ever expanding source of resources and focus our ambitions only on economic growth is futile, as the economy is bounded by the limits of the ecosystem imposed by nature. Raworth’s depiction of an ecological model of economics raised the important question as to whether there is a counter design to the current system of debt, money creation, maximising shareholder return and increasing productivity in the pursuit of economic growth.  Such debates stem from the concept that we should not only consider whether such economic growth possible, but whether this type of exponential growth should even be desirable. It terms of an ethical argument, the earth’s resources have been depleted by industrialisation, investment in profitable industries such as oil and gas, and other processes that have taken from and polluted the environment to improve material conditions for humans. There is a trade off between too much environmental degradation and providing for humans. Raworth proposes the “Doughnut Model” that concludes our sustainable solution is a middle ground between the two: using the Earth’s resources both efficiently and cautiously. The inside limit of the “doughnut” is social foundation; the outside limit is the environmental ceiling; and to go beyond these respective limits would be detrimental to either human and economic needs or the balance of the...