How Wealth Inequality Hurts Economic Growth
In order to solve America's faltering economy, we must understand its causes. For University of Chicago business school professor Raghuram Rajan, it was an eviscerating of the middle class.
What's the Latest Development?
In order for the US to find a solution to its economic woes, it must determine why they occurred in the first place. For Raghuram Rajan, a professor of finance at the University of Chicago’s Booth School of Business, two facts stand out. "First, overall demand for goods and services is much weaker, both in Europe and the United States, than it was in the go-go years before the recession. Second, most of the economic gains in the US in recent years have gone to the rich, while the middle class has fallen behind in relative terms." As the middle class no longer suited the expansion of businesses, demand associated with a consumption-based economy plummeted.
What's the Big Idea?
Seeing that the middle class income was being squeezed, the government responded by making it easier to access credit. That was all well and good until housing prices collapsed, which many families had borrowed against in order to bankroll their lifestyle. The result has been far less demand than during the pre-recession years. "The key to recovery, then, is to tax the rich, increase transfers, and restore worker incomes by enhancing union bargaining power and raising minimum wages," says Rajan. While it won't be easy or quick, "the US should focus on helping to tailor the education and skills of the people being left behind to the available jobs."
Photo credit: Shutterstock.com
It's unlikely that there's anything on the planet that is worth the cost of shipping it back
- In the second season of National Geographic Channel's MARS (premiering tonight, 11/12/18,) privatized miners on the red planet clash with a colony of international scientists
- Privatized mining on both Mars and the Moon is likely to occur in the next century
- The cost of returning mined materials from Space to the Earth will probably be too high to create a self-sustaining industry, but the resources may have other uses at their origin points
Want to go to Mars? It will cost you. In 2016, SpaceX founder Elon Musk estimated that manned missions to the planet may cost approximately $10 billion per person. As with any expensive endeavor, it is inevitable that sufficient returns on investment will be needed in order to sustain human presence on Mars. So, what's underneath all that red dust?
Mining Technology reported in 2017 that "there are areas [on Mars], especially large igneous provinces, volcanoes and impact craters that hold significant potential for nickel, copper, iron, titanium, platinum group elements and more."
Were a SpaceX-like company to establish a commercial mining presence on the planet, digging up these materials will be sure to provoke a fraught debate over environmental preservation in space, Martian land rights, and the slew of microbial unknowns which Martian soil may bring.
In National Geographic Channel's genre-bending narrative-docuseries, MARS, (the second season premieres tonight, November 12th, 9 pm ET / 8 pm CT) this dynamic is explored as astronauts from an international scientific coalition go head-to-head with industrial miners looking to exploit the planet's resources.
Given the rate of consumption of minerals on Earth, there is plenty of reason to believe that there will be demand for such an operation.
"Almost all of the easily mined gold, silver, copper, tin, zinc, antimony, and phosphorus we can mine on Earth may be gone within one hundred years" writes Stephen Petranek, author of How We'll Live on Mars, which Nat Geo's MARS is based on. That grim scenario will require either a massive rethinking of how we consume metals on earth, or supplementation from another source.
Elon Musk, founder of SpaceX, told Petranek that it's unlikely that even if all of Earth's metals were exhausted, it is unlikely that Martian materials could become an economically feasible supplement due to the high cost of fuel required to return the materials to Earth. "Anything transported with atoms would have to be incredibly valuable on a weight basis."
Actually, we've already done some of this kind of resource extraction. During NASA's Apollo missions to the Moon, astronauts used simple steel tools to collect about 842 pounds of moon rocks over six missions. Due to the high cost of those missions, the Moon rocks are now highly valuable on Earth.
Moon rock on display at US Space and Rocket Center, Huntsville, AL (Big Think/Matt Carlstrom)In 1973, NASA valuated moon rocks at $50,800 per gram –– or over $300,000 today when adjusted for inflation. That figure doesn't reflect the value of the natural resources within the rock, but rather the cost of their extraction.
Assuming that Martian mining would be done with the purpose of bringing materials back to Earth, the cost of any materials mined from Mars would need to include both the cost of the extraction and the value of the materials themselves. Factoring in the price of fuel and the difficulties of returning a Martian lander to Earth, this figure may be entirely cost prohibitive.
What seems more likely, says Musk, is for the Martian resources to stay on the Red Planet to be used for construction and manufacturing within manned colonies, or to be used to support further mining missions of the mineral-rich asteroid belt between Mars and Jupiter.
At the very least, mining on Mars has already produced great entertainment value on Earth: tune into Season 2 of MARS on National Geographic Channel.
Researchers believe that the practice of sleeping through the whole night didn’t really take hold until just a few hundred years ago.
She was wide awake and it was nearly two in the morning. When asked if everything was alright, she said, “Yes.” Asked why she couldn’t get to sleep she said, “I don’t know.” Neuroscientist Russell Foster of Oxford might suggest she was exhibiting “a throwback to the bi-modal sleep pattern." Research suggests we used to sleep in two segments with a period of wakefulness in-between.
Antimicrobial resistance is growing worldwide, rendering many "work horse" medicines ineffective. Without intervention, drug-resistant pathogens could lead to millions of deaths by 2050. Thankfully, companies like Pfizer are taking action.
- Antimicrobial-resistant pathogens are one of the largest threats to global health today.
- As we get older, our immune systems age, increasing our risk of life threatening infections. Without reliable antibiotics, life expectancy could decline for the first time in modern history.
- If antibiotics become ineffective, common infections could result in hospitalization or even death. Life-saving interventions like cancer treatments and organ transplantation would become more difficult, more often resulting in death. Routine procedures would become hard to perform.
- Without intervention, resistant pathogens could result in 10 million annual deaths by 2050.
- By taking a multi-faceted approach—inclusive of adherence to good stewardship, surveillance and responsible manufacturing practices, as well as an emphasis on prevention and treatment—companies like Pfizer are fighting to help curb the spread.
SMARTER FASTER trademarks owned by The Big Think, Inc. All rights reserved.