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Book
Protecting the Poor from Macroeconomic Shocks
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Year: 1999 Publisher: Washington, D.C., The World Bank,

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August 1999 - To minimize the harmful impact on poor people of macroeconomic shocks, sound policies for dealing with crises - and an adequate public safety net - should be in place before a crisis starts. Many developing countries faced macroeconomic shocks in the 1980s and 1990s. The impact of the shocks on welfare depended on the nature of the shock, on initial household and community conditions, and on policy responses. To avoid severe and lasting losses to poor and vulnerable groups, governments and civil society need to be prepared for a flexible response well ahead of the crisis. A key component of a flexibly responsive system is an effective permanent safety net, which will typically combine a workfare program with targeted transfers and credit. Once a crisis has happened, several things should be done: Macroeconomic policies should aim to achieve stabilization goals at the least cost to the poor. Typically, a temporary reduction in aggregate demand is inevitable but as soon as a sustainable external balance has been reached and inflationary pressures have been contained, macroeconomic policy should be eased (interest rates reduced and efficient public spending restored, to help offset the worst effects of the recession on the poor). A fiscal stimulus directed at labor-intensive activities (such as building rural roads) can combine the benefits of growth with those of income support for poor groups, for example; Key areas of public spending should be protected, especially investments in health care, education, rural infrastructure, urban sanitation, and microfinance; Efforts should be made to preserve the social fabric and build social capital; Sound information should be generated on the welfare impacts of the crisis. This paper - a joint product of the Poverty Group, Poverty Reduction and Economic Management Network, and Poverty and Human Resources, Development Research Group - is part of a larger effort in the Bank to inform policy choices aimed at minimizing the social costs of macroeconomic shocks. The authors may be contacted at fferreira@econ.puc-rio.br, gprennushi@worldbank.org, or mravallion@worldbank.org.


Book
The Tyranny of Utility
Author:
ISBN: 1283168987 9786613168986 1400838894 9781400838899 0691128170 661316898X 9780691128177 Year: 2011 Publisher: Princeton, NJ

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The general assumption that social policy should be utilitarian--that society should be organized to yield the greatest level of welfare--leads inexorably to increased government interventions. Historically, however, the science of economics has advocated limits to these interventions for utilitarian reasons and because of the assumption that people know what is best for themselves. But more recently, behavioral economics has focused on biases and inconsistencies in individual behavior. Based on these developments, governments now prescribe the foods we eat, the apartments we rent, and the composition of our financial portfolios. The Tyranny of Utility takes on this rise of paternalism and its dangers for individual freedoms, and examines how developments in economics and the social sciences are leading to greater government intrusion in our private lives. Gilles Saint-Paul posits that the utilitarian foundations of individual freedom promoted by traditional economics are fundamentally flawed. When combined with developments in social science that view the individual as incapable of making rational and responsible choices, utilitarianism seems to logically call for greater governmental intervention in our lives. Arguing that this cannot be defended on purely instrumental grounds, Saint-Paul calls for individual liberty to be restored as a central value in our society. Exploring how behavioral economics is contributing to the excessive rise of paternalistic interventions, The Tyranny of Utility presents a controversial challenge to the prevailing currents in economic and political discourse.

Keywords

Welfare economics. --- Utilitarianism. --- Paternalism. --- Public welfare. --- Benevolent institutions --- Poor relief --- Public assistance --- Public charities --- Public relief --- Public welfare --- Public welfare reform --- Relief (Aid) --- Social welfare --- Welfare (Public assistance) --- Welfare reform --- Parentalism --- Government policy --- Human services --- Social service --- Social classes --- Social control --- Social systems --- Economic policy --- Economics --- Social policy --- Ethics --- Hedonism --- Philosophy --- Welfare economics --- Utilitarianism --- Paternalism --- E-books --- 201 --- 305.6 --- 321.2 --- AA / International- internationaal --- Sociologie: algemeenheden --- Risicotheorie, speltheorie. Risicokapitaal. Beslissingsmodellen --- Economisch beleid van de overheid --- Coasian view. --- Freudianism. --- Friedrich Nietzsche. --- Lockean theory. --- Man. --- Pareto improvements. --- Pigovian taxation. --- Postmodernism. --- addictive goods. --- autonomy. --- behavioral biases. --- behavioral economics. --- behavioral issues. --- behavioral problems. --- cognitive capacity. --- competitive markets. --- consistent behavior. --- consistent self. --- divine order. --- economic theory. --- economics. --- externality. --- financial capacity. --- free markets. --- global efficiency. --- government control. --- government intervention. --- government intrusion. --- government involvement. --- happiness. --- incarnations. --- incentives. --- individual freedom. --- individual liberty. --- individual rights. --- individual welfare. --- individual well-being. --- individualistic values. --- intellectual apparatus. --- intellectual safeguard. --- laissez-faire. --- legitimacy of power. --- libertarian paternalism. --- limited government. --- limited liability. --- market interactions. --- markets. --- modern paternalism. --- objective reality. --- paternalism. --- paternalistic governments. --- paternalistic intervention. --- paternalistic interventions. --- paternalistic policies. --- paternalistic state. --- penalties. --- policy prescriptions. --- political economy critique. --- political institutions. --- population distribution. --- post-utilitarian paradigm. --- post-utilitarianism. --- price restrictions. --- psychological phenomena. --- public policy. --- rational phenomena. --- responsibility transfer. --- revealed preferences. --- self-consciousness. --- self-reported happiness. --- sin tax. --- social contract. --- social engineer. --- social planner. --- social preferences. --- social sciences. --- state involvement. --- statistics. --- transactions. --- unique self. --- unitary individual. --- utilitarian social policy. --- utilitarian state. --- utilitarianism. --- utility. --- voluntary transactions. --- welfare.

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