One missing point about Chicago School of Economics

 By

 

Sampson I.M Onwuka

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Great divide and gaps in Chicago School of Economics and miscellaneous

Target of the blog is to look at the incipient strain of elitism – Supreme Court Justice prevalence----Economic How to build half-way bridge from distance has no problem.

 

At the turn of the last century U.S was challenged by the problems of  Far Eastern Crisis--, (a) Truman agenda (b) Marshall Plan (3) United States Policy towards  The North Atlantic Treaty (4) The Vandenberg Resolution and were concerned with The Military Assistance Program.

It had to confront the problems of population and economic size.

 

Population economics may accommodate some of the expressive economic theories of University for Chicago School of Economics, for instance its fascination for Freakonomics. But given the much discussed economies of slave trade which human labor away from population brings to bear, this author is not impressed by its benefits since the free American economic guarantee outweighs the private benefits of free labor economy - at least in United States. The future of labor market is not a replacement

 

Define and summarize slave trade economies, in one straight language, Portuguese and Spanish entered African waters from Ceuta across the Azores and Canary Islands, Portuguese have devastated much of may be considered Indian Ocean and turned attention to pacific which was the destiny of the Spanish re-discover. Under Chiefs in Africa and Sultans of Orman slave trade proved a useful means of cultivating colonies in America and European Colonies in Africa, and many of them ended up in Colonies in U.S, North and South America.

The price of near areas in Brazil and in US required the persons of interest in understanding their human psychology and philosophy, and why European poor and American struggling class found ready strength in cultivating cultures of free labor which for them was a way to ensure their class in the society.

 

For all intent of purpose, we may understand industrialization as not much a product of the reality that the human labor, especially human free labor could not support the society ever, it is the understanding that machine and metal or irons were perhaps a better means of accomplishing in one day what hundred slaves may have problems accomplishing at the same time. 

Eugene D. Genovese – (The political economy of slavery) ----discussing Lewis Gray’s theory of the genesis of Capitalism, Gray defines plantation as a “Capitalistic type of agricultural organization in which a considerable number of unfree laborers were employed under a unified direction and control in the production of a stable crop.”

Colonial expansion – (Genovese) as from Lewis Gray

(1)    The Capitalists of the advanced country simply invested in colonial land – as illustrated even today by the practice of the United Fruit Company in the Caribbean.

(2)    The Colonial Planters were largely subservient to the advanced countries – as illustrated by the British West Indies before the abolition of Slavery and

(3)     The Planters were all able to win independent and build a society under their own direction – as illustrated by the Southern United States.

P.17 “Capitalism largely directs its profits into an expansion of plant and equipment, not labor; that is, economic progress is qualitative. Slavery for economic reasons as well as for those of social, prestige, directs its re-investments along the same lines as the original investment – in slaves and land; that is, economic progress is quantitative.”

“The Commercial bourgeoisie, such as it was, remained tied to the shareholding interest, had little desire or opportunity to invest capital in industrial expansion, and adopted the primarily aristocratic attitude.”    

If the understanding of the economics of slave trade is granted a Chicago view, we may see that America needed to free itself from cheap labor which satisfies individual wishes and not national, which is similar and also the same as paying too much for economics. The total wealth of nation’s resources it’s definable through its social security wealth, and in longer term structure, the instance of savings forms a new and better grasp of equilibrium distribution.

We should consider some of the assumptions in discussing the spread of human population and its labors for better life, for instance, the American example of Mortgage Disclosure and Community Re-investment Act.

The Chicago school could be argued to have produced any defender of public policy, even with Ronald Coarse and disclosure act or in terms of principal economic factors such as George Stieglitz who is not said anywhere to have intervened when FHA adopted HOLC’s ratings guiding Mortgage insurances, what happened has never been explained carefully and successfully, for instance, private businesses and individual including banks in Chicago and New York used Red ink to demarcate the neighborhoods that were considered poor.

It hastened the decline of prices in the areas due to neglect, and given it’s gradually take on GDP and it was no shock specific did not indicate some of the transition that has occurred in any city. The Housing Act of 1934, Housing Act of 1937, created specific funds for consumption, especially in terms of the buildings which were appropriated by the ensuing legal threshold of Association of Community Organization for Reform Now (ACORN), the Community Re-investment Act, and Home Mortgage Disclosure Act (HMDA), which for some of us was a welcome issue in understanding Chicago in the late 30’s and 40’s.

 

The Chicago School it’s not said to have dealt with this strategic problems of policy and law enactment that proved difficult for minorities, either did it discourage discrimination Strategies of Job training saving for a small hint of its encouragement of CETA; Comprehensive Employment and Training Act.’

But besides this estimable human theorem, it must be documented in written and credit forms, that between consumption and savings is matter of shift of emphasis, and we can easily suggest a question of distribution with respect to income multiplier (Philip Cagan) and ratio of income to mean income of year; a sustainability argument that gave Chicago all the pebbles they needed to re-establish their school.

 

In one instance of the rate of employment and full economic recovery, Friedman was one of the few people who mentioned that the total recovery rate of any economy with respect to employment is never above 1% and if this is the case, it was a little far from Keynes  4% or 5%. 

Perhaps the age of the WWII and new deal which was influenced by Frances Perkins, originally from Chicago may be too much bar to climb to understand the roles of the school and missed role of Chicago Actors of economics. We may consider some late actions from President Clinton’s ‘Moving to Opportunity Act’ (MTO) which was designed to discourage White Flight from major American Cities, including subsidies in transportation and industries.

 

Chicago did not encourage any such changes in Anti-discrimination CETA, did not interpret the pressing economic conditions in the City of Chicago in the light original to red-linings, where some of the buildings and banks still indicate the ‘still desirable’ ‘declining’ and ‘already declined’ association of housing.

We can indicate that understanding these schools and the processes involved can be said to have arisen from the rehearsed government intervention in American Cities, that in the end, it could be said to be true that government intervention was property to the process, whereas a HOLC application of loans to refinance houses, received up to 56% of New York application and from Chicago, 60% of loans application, much of it from Chicago were even considered for processing let alone granted approval.

 

How the City and the School of purpose called University of Chicago defended free market in terms of the oppressive psychology of business practice is the chief element of continued property abandonment in Chicago.    

The latter day amendment of some of these discrimination laws, human and population economics, and the reform association of ACORN including the HUD under the Sections 510, the selecting of 7 cities, the Amendment of these Acts from 1970 through 1978 led to the Homestead Act, which was primarily gifted to families with children where allowance for businesses where made with interest and going at the rate of abandonment of buildings in the inner Cities, the material issues of inner cities drugs and problems of addiction gave birth and long great migration of Americans from the South to the North, beginning from 1914 by mostly African Americans leaving the South, showed the need to perpetually induce the Government to look into the private interest areas of housing and employment, especially in Lawndale areas of Chicago.