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Dr. Vladimir A. Masch
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Blog Entries by Dr. Vladimir A. Masch

Harnessing Our Technological Strengths for the Economy: Risk-Constrained Optimization

Posted August 9, 2010 | 12:09:39 (EST)

In my last blog "Balanced Capitalism" (July 26) I tried to explain the urgent need in society-wide modeling. But I am a realist, meaning a pessimist. I do not expect to see such a project soon.

Nevertheless, the complexity, uncertainty, and perils of the 21st century undoubtedly will generate...

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Balanced Capitalism

Posted July 26, 2010 | 12:54:24 (EST)

In 1991, the Soviet Union disintegrated. Once and for all, that demonstrated that capitalism is better than a "command economy," at least in two aspects that mostly matter - productivity (effective use of resources) and ability to satisfy the needs and wants of consumers.

Well, that conclusion was evident...

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Compensated Free Trade

Posted July 16, 2010 | 12:11:11 (EST)

In my past eight weekly blogs I confined myself to criticizing the Anglo-American "mainstream" neoclassical economics. It is utopian in its assumptions and may be extremely dangerous if its conclusions are recommended for the real-world economy. They are recommended, with insistence and audacity, and we see the results....

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Medicine vs. Economics

Posted July 6, 2010 | 14:46:38 (EST)

A moderate Harvard economist Dani Rodrik said, " ... [E]conomists are an arrogant bunch, with very little to be arrogant about. ... As social scientists, economists have neither the ability of physicists to fully explain the phenomena around us, nor the expertise of physicians to prescribe effective cures when things...

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America: Where Are We Today?

Posted June 24, 2010 | 14:41:30 (EST)

What country are we leaving to our children and grandchildren? The state of the union can be defined in three fields: outside of its borders, at those borders, and inside the country.

The situation in the outside world can be best characterized by the title of the June...

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Staying in One of the Catbird Seats

Posted June 16, 2010 | 12:13:01 (EST)

In order to stay in one of the catbird seats of the 21st century, and to protect the democratic components of the world order, the US has to do two things: renew its political system and/or its decision-makers, and change its economic system.

Since the current elite has the...

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The Worst Bit of Advice, Except (Maybe) for All the Others

Posted June 9, 2010 | 15:34:51 (EST)

On June 7, Jeffrey Sachs published an excellent article in the Financial Times. He argues that the Keynesian advice of public stimulus of the economy is a short-term solution. It brings positive results only if the private economy has ample unused reserves and just needs some "animal spirits" to...

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On This Memorial Day

Posted June 1, 2010 | 19:36:54 (EST)

On this Memorial Day I would like to honor the memory of two people who were not buried at Arlington. They were not soldiers. They were not even victims of religious fanatical terrorists. They were victims of economic freedom -- freedom of Big Business to export the manufacturing base of...

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The Rest of the (Economic) Story

Posted May 25, 2010 | 21:29:16 (EST)

International trade probably is the worst part of the economic theory. But the theoretical validity of the rest of economics is not much better. Wherever one throws a stone, one hits a cemetery of dead bodies. It seems that, regarding its applicability to serious real-world problems, not a single tenet...

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The Myth of Comparative Advantage

Posted May 19, 2010 | 13:16:13 (EST)

One of the main pillars of international (as well as general) economics is the "Law of Comparative Advantage" (from now on, for brevity, "LCA"). When Paul Samuelson, a preeminent economist and the father of the theory of international trade, was asked to name just one economic principle that was both...

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In the Century of "Black Swans", Modern Economics Deserves "Creative Destruction"

Posted May 12, 2010 | 21:47:17 (EST)

In the 21st century the relentlessly growing humankind would have to fight for its survival, trying to adapt to limited capacity of planet Earth. This would happen against the background of a dysfunctional and disorderly world economy, the prevalence of a productive but amoral and destructive capitalist system of production...

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