Anne Emerson- Photographer,Twin, and Author
More Williamsburg and Local Area Photos on Galleries Page. Click here.
NEW: One-Paragraph Summary of Annie's Model
NEW: One-Paragraph Summary of Annie's Solution
NEW: What it Means for Healthcare
​Human societies need things like doctors, nurses, lawyers, farmers, teachers, and their assistants. These count among Annie's "resource-losing industries." They may use many resources, but over time they become more machine-rich and worker-poor than before, because machines can process more information more quickly than workers can process, on their own.
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In healthcare, we get, for example, automated telephone answering, A.I. diagnostic assistants, and nurse practitioners diagnosing all but the most difficult of conditions.
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We gain the ability to process many patients in a short period of time but lose personalized care and doctors who know their patients well. Annie says it's time to reset this tendency, before we lose all the practitioners who don't care to work in this type of environment.
One-Pagers - Economic Ideas
for General Readers
Annie's first foray into presenting complex economic ideas to creative artists resulted in the essay at the link above. One page wasn't enough. More pages added below (blue links).
Book Review: The Essential Adam Smith -see tan-colored link below
What He Said May Not Be What You Think
​​​The Book Review - Essential Adam Smith, at link below - is background information about Adam Smith,
the so-called father of modern economics,
by an eminent author (not by Annie). All Annie did was review the book.
More One-Pager Tongue-in-Cheek Essays, Below
Most of these one-page essays (below) do not require technical knowledge of economics, although you ARE expected to think carefully about what they might imply
Annie learned Economics in graduate school at the University of Maryland, College Park (near Washington, DC). General readers may not know that there are many sub-specialties in Economics. So, here are a few ways in which Annie's writing crosses specialties:
Economic Growth Theory - Explains the development of inequality over time in free-market systems, and the lack of "trickle-down." Explains how this process falls under the radar of mainstream economic modeling. Offers candidate for point of take-off. Offers innovative functional form for modeling the interactions of technological change and consumers' demand.
Economics of Public Policy - Annie reminds politicians that there are more important matters than cost-benefit analyses, or economic growth. Adam Smith's "Invisible Hand" was never intended to operate in an ethical vacuum. (See this page - Book Review - The Essential Adam Smith)​.
Policy Advice Offered - Banks can reduce the money in circulation; this will bring prices down. If it is done in a suitably controlled fashion, it can be expected to reduce financial inequality via market forces, rather than by government mandate.
International Economics - Observed empirical validity of the Prebisch-Singer hypothesis explained. Suggest we challenge mercantilism on the part of large businesses, as well as large countries. Suggest we recognize the difference between the theory of comparative advantage and modern trade practices.
Economics of Emerging Markets - Candidate offered for the moment of "take-off." (Explaining why some countries grow but others don't has eluded many! See "Foreign Affairs," January 2020 - The Future of Capitalism.)
Global Dualism, a.k.a. inequality, explained, by INDUSTRY, not by country. Suggestions offered, for effective policies to counter this "natural" tendency in market systems, as currently structured.
Labor Economics - Conundrum explained - high average wages in cities, but little regional variation in wages, for workers of similar socioeconomic status. Conundrum explained - why cities grow, long-term - using economic theory rather than the "gravity model." Conundrum explained - education-biased technological change, along with wealthy internet gurus having little more than a high school education.
Rural and Urban Planning - Conundrum explained - there are many public services in wealthier regions, but fewer in poorer regions. Suggest relaxing requirement for constant coefficients in Input-Output models.
Comparative Economic Systems - The "Stockholm School" and non-equilibrium economics modeled successfully, with a role for what is lost as well as a role for what is gained. Suggest intersectoral discussion and coordination rather than top-down planning.
The Micro-Foundations of Macroeconomics - Role for money, in a two-sector model that falls traditionally in (non-monetary) microeconomics, explains how inequality increases under current institutional structures and beliefs in market systems.
Behavioral Economics - Explains the role of incentives in buying, selling, and making rules. Reminder that Adam Smith warned against allowing "dealers," that is, commercial business leaders, to make the rules.
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Essays - Magic Money, Inequality, and More - for Today!
Magic, Money and the Pandemic
The "Magic..." essays were inspired by questions and comments from friends and neighbors about government policy during the pandemic. Annie used to teach this sort of fun stuff! If you think the pandemic is over,
you are welcome to limit your attention to the discussion of today's challenges, per the blue-on-yellow color-coding in the text below and on the links to essays above.
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These essays address monetary policy (central banking and the Fed), fiscal policy (government budgets), fiat money (including dollars and bitcoin), and inflation (price-level changes). They present accepted teachings in economics, for the general reader, with a few thoughts on the pandemic and its challenges tossed in.
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Do you know that modern financial systems often encourage both debt-financing and avoidance of financial crises, by "creating" money?
See also essays on basic
economic ideas for general readers, above
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How do we feel about cuddly robots given to children and seniors, to help meet their needs? Perhaps robots are better than nothing, but is it OK, really?
The discussion of farm incomes, poverty traps, and differences in regional growth rates, on pages 34 to 43 at the link above, may be understood by non-economists.
Annie's "Model" and Today's Challenges
As news reports become more disturbing, Annie invites you to understand and reflect on the implications of her "model"
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More -
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Annie made a couple of numerical examples to illustrate her model. If you understand graphs, you should see from the figures at the blue link (left) what her theory implies. She could be wrong. She hopes you will think for yourself.
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Annie's examples are typical of graphs you might see in a Principles of Economics textbook, illustrating a point. However, Annie's point is different from what is customarily presented in beginning economics textbooks. If you are a real, serious economist, please see the summary column of conundrums explained, at the top right of this page, or the Systemic Bias page. You will see, there, why you need to take Annie's model seriously.
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The second link at left - The Fighting Fed - discusses a banking dilemma. Different industries face different challenges; helping some may occur at the expense of others, contrary to Adam Smith's ideal.
Annie's "tweaks" to current policy recommendations may be found in the Theory and Reality series of essays; in particular at the end of the "Q and A - Theory and Reality" essay.
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Summary: Annie calls the two sectors in her model “money-magnet” industries, and “resource-losing” industries. [That's industries, not countries.] These industries each benefit more, or less, from global economic policies, because they each face a different financial environment. We might wish to treat them differently - different market-based policies might be appropriate for each - just as different human beings, facing different environments, benefit differently from them.
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If the Fed cannot or will not reduce the money supply as Annie suggests, there is no reason why individual banks could not do so. The Fed limits what risks banks can take. It does not limit the higher levels of safety that banks could build into their own financial infrastructures, if they wished.
