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Index: the Great Tradeoff: Confronting Moral Conflicts in the Era Of

Index: the Great Tradeoff: Confronting Moral Conflicts in the Era Of

Index

Adams, John, 82 Bain Capital, 43, 127 Affordable Care Act (US), 41 Banfield, Edward, 131–32 African Growth and Opportunity Act (AGOA), Bangladesh garment industry, 172, 185 129 Bank for International Settlements, 181 aging population, 112–14 , 99 Agriculture Adjustment Act (AAA), 38 Bank of the , 35–36 Aid to Families with Dependent Children, 88 bank rescues, 99–103, 106–107 AIG, 102 , 106–107, 117 Alcatel, 167 Bankruptcy Act of 1800 (US), 106 Alighieri, Dante, 137 Barofsky, Neil, 102 Alstom, 168 Beitz, Charles, 140–41 altruism, 133–34 Bell, Daniel, 74, 78–79, 111 America Jobs Creation Act, 174 Bellamy, Francis, 33 American Adam, 83 Benedict XVI, Pope, 7, 77, 126, 161 American System, 25, 83–84 Bennett, William, 80 American system of manufactures, 83 Bentham, Jeremy, 103 American values, 34, 40, 75, 78–79, 81 Berlin, Isaiah, 2, 14, 39, 180, 190 amoral familism, 132 Berlusconi, Silvio, 69, 118 Anderson, Gary, 104 Bernanke, Ben, 45, 99, 100–101, 143–44 Annan, Kofi, 185 Bill and Melinda Gates Foundation, 182 antiglobalization movement, 5–8, 146–50, Bill of Rights (US), 35, 39 162, 183 Birdsall, Nancy, 54, 182 Appiah, Kwame Anthony, 141 Blair, Tony, 107, 182 Argentina, 106, 117 Blank, Rebecca, 42 Aristotle, 20 Blinder, Alan, 29, 148 asset bubbles, 36, 97–98 Blustein, Paul, 29, 116 Augustine, St., 21 Boehm, Christopher, 133 Boehner, John, 43 Bagehot, Walter, 99 bond markets, 110–11 bailouts Boston Marathon bombings, 132 moral hazard and, 95–107, 116–17 Boycott, Divestment and Sanctions (BDS) virtuous behavior and, 11–12, 74–75 campaign, 186

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© Peterson Institute for International Economics | www.piie.com http://bookstore.piie.com/book-store/6956.html Bradley, Bill, 153 China Bretton Woods system, 25–26, 130, 169, entrepreneurship in, 77 177–78, 188–89 inequality in, 54 BRICS countries, 189 offshoring to, 145, 147 Britain. See United Kingdom US relations with, 138–39 Bromwich, David, 135 Chirac, Jacques, 167 Brooks, David, 78 chlorofluorocarbons (CFCs), 184 Brown, Gordon, 69 Christian doctrine. See also Catholic doctrine Bryan, William Jennings, 36, 37n, 106 cosmopolitanism, 137 bubbles, 36, 97–98 debt, 104–105 Bulger, James Joseph (Whitey), Jr., 131 justice, 35, 42 Bulger, William, 131 Chua, Amy, 79 Burns, Ursula, 175 citizen-based civil society, 182, 191 Burtless, Gary, 51 civil rights, 39 Bush, George H. W., 29, 92, 150–51, 180 class warfare, 43, 79 Bush, George W., 41, 92n, 116, 140 Clay, Henry, 25, 83–84 business cycles, 36, 97 Cleveland, Grover, 87 Buy American Act, 171 climate change, 140, 184 “Buy American” obligation, 13, 171–73 Clinton, Bill antiglobalization movement, 6 California Public Employees’ Retirement capital liberalization, 30 System (CalPERS), 167–68 debt relief, 107 California Teachers pension fund, 168 Mexico crisis, 95–96 Camdessus, Michel, 30, 31, 115 social welfare programs, 41, 54–55, 88 Cameron, David, 173 tax increases, 92 capital trade agreements, 29, 127, 150–54 cross-border flows of, 28–31, 169–70 Clinton Global Initiative, 182 economic growth and, 50–54, 61–64 club model of multilateral cooperation, 181 human, 64 Cobden, Richard, 25 return on, 50–53 Colbert, Jean-Baptiste, 22 role of, 61–62, 64–65 Cold War capitalism economic goals since, 179–80 cultural effects of, 43, 79–80 European rift caused by, 70 effects of global on, 28 ideological battle during, 136–39, 160 ethics and, 70 communism inclusive, 2 collapse of, 28, 61, 77, 134–35 inequality and, 45 justice and, 49 patrimonial, 48–49 liberty and, 39 religious doctrine on, 7–8, 76–78 US foreign policy on, 138–39 versus socialism, 26–27 communitarianism, 130–37 virtue in, 73–80, 120–21 overview, 12–13, 49, 129 Carmel, Stephen, 12–13 quantification of, 143–57 Carter, Jimmy, 41, 151 comparative advantage, 23, 78 Carthaginian Peace, 72 compensation, executive, 43, 45, 50, 55 Catholic doctrine Conard, Edward, 43 capitalism, 7–8, 77–78 Concert of Europe, 180 global financial crisis, 7–8 Congressional Budget Office, 51, 89, 112 justice, 42 Congress of Vienna, 180, 184 loyalty, 126 conservatism, 41 social welfare, 28, 91 Constitution (US), 82 Center for Global Development (CGD), 182 constructivists, 132 central banks, 99–100 consumer culture, 78–79 Cerberus Capital Management, 168 consumers, role of, 171–73 charity, 86–93 contagion, 11

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© Peterson Institute for International Economics | www.piie.com http://bookstore.piie.com/book-store/6956.html Coolidge, Calvin, 89 economic growth Cooper, Richard, 160 capital and, 50–54, 61–64 Corn Laws (UK), 24, 146, 152 inequality and, 187 Corporate Social Responsibility (CSR) taxation and, 92–93 Initiative, 185 economic justice. See justice corporate tax havens, 173–75 economic liberty. See liberty cosmopolitanism, 137–41 economic patriotism, 125–26, 171–73. See also overview, 12–13, 49, 129–30 loyalty quantification of, 143–57 economics, moral principles in, 8–10 creative destruction, 127 economic tradeoffs, 8. See also tradeoffs creditor moral hazard, 100 education, 146 Croly, Herbert David, 40, 85 efficiency-equality tradeoff, 9–10 Crook, Clive, 52 Elmendorf, Douglas, 64 Cuomo, Andrew, 54 emerging-market economies Cyprus, 73 aid to, 88, 107, 114–16, 160–62 in global economic system, 137–38, 141, Darwin, Charles, 37, 98, 133 160 Davos World Economic Forum, 182, 184 immigration from, 59, 84, 140, 162–64 Dawkins, Richard, 133 inequality in, 54, 143–44 debt liberty and, 27, 29–30 as moral issue, 71–72, 75, 96–107, 112–19 socialism in, 136 as public policy tool, 109–21 trade agreements and, 129–30, 159–62 debt crises, 28–31, 107, 114–19 Emerson, Ralph Waldo, 83 debtor moral hazard, 100 empathy, 133 debtors’ prisons, 105–106 employment. See also labor Decker, Matthew, 23 in manufacturing sector, 144–49, 170 DeLong, Bradford, 4, 90 offshoring, 5–6, 125–28, 144–48, 166 democracy pension assets, 166–68 foreign policy based on, 139 reshoring, 144–46 justice and, 48–49 trade agreements and, 150–57 social, 35 unemployment, 96, 97f, 125, 144–50 virtue in, 85 Engels, Friedrich, 49 Democratic Party (US), 84 entitlement programs, 88–90, 112–14 demonstrations, antiglobalization, 6, 162 entrepreneurship, 77, 81 Deng Xiaoping, 4, 27, 77 environmental treaties, 184 deontology, 73–74 Epstein, Richard, 43 deposit insurance, 100 equality deregulation of capital flows, 28–31 doctrine of, 33 Dervis, Kemal, 184 justice aligned with, 33–34, 38–40, 56–64, Diamond Development Initiative, 185 187–88 Dickens, Charles, 105 lack of (See inequality) difference principle, 47, 129–30, 137 of opportunity versus rights, 39–40 Dodd-Frank Act (US), 41, 118 public opinion of, 6, 44, 55–56 Doha Round, 159–60 tradeoff between efficiency and, 9–10 Donald, David Herbert, 14 ethics. See also morality Dornbusch, Rudiger, 30 capitalism and, 70 Dorrien, Gary, 42 of debt, 112–14 Draghi, Mario, 69, 118 inequality and, 45 duty-to-help argument, 141 virtue, 74 Dworkin, Ronald, 43 Etzioni, Amitai, 134 Europe earned income tax credit (EITC), 88 anxieties about US domination in, 168 East Asian crisis, 11, 28–31, 114–19 global financial crisis and, 7, 69–73, 117–19 Eberstadt, Nicholas, 88–90 history of, 22–23, 179

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© Peterson Institute for International Economics | www.piie.com http://bookstore.piie.com/book-store/6956.html immigration to, 59, 84, 140, 162–64 Garrett, Thomas, 43 inequality in, 44 gay marriage, 38, 76, 80 values in, 34, 40 Geithner, Timothy, 99–103 European Central Bank (ECB), 118 General Agreement on Tariffs and Trade European Coal and Steel Community, 26, 179 (GATT), 26, 29, 140, 178 European Economic Community, 26, 179 generational issue, debt as, 112–14 European Union (EU), 26, 180, 189 Geneva Convention, 180 evolution, 37, 98, 133 Germany, 70–73 Exchange Stabilization Fund (ESF), 96 Gini index, 56–57, 58f executive compensation, 43, 45, 50, 55 global citizens, 182, 191 exports, global, 127, 128f global financial crisis (2007-08) externalities, 8–9 capitalism shaken by, 28 Extractive Industries Transparency Initiative debt and, 112 (EITI), 186 depictions of, 1 European fallout from, 7, 69–73, 117–19 Fair Labor Association, 173, 185 moral hazard in, 69–80, 100–103 faith foundation, 182 virtuous behavior and, 11–12 Family Assistance Plan, 87 global governance, 13, 137–41, 178–82, (US), 99 189–91 Feldstein, Martin, 50, 55, 63, 174 globalization Felten, Eric, 131 backlash against, 5–8, 146–50 Ferguson, Niall, 25, 112 definition of, 3 financial crises. See also specific crisis economic results of, 4–5, 58–64 moral hazard and, 99–103, 114–19 first era of, 25, 36 unemployment following, 96, 97f history of, 3–5 fiscal policy, 32, 70, 92 morally based, 1–3, 120–21, 178–82 Fischer, Stanley, 31, 32 global justice, 138–41 Fiss, Owen, 38 Golden Rule, 74 Fitzgerald, F. Scott, 14 goods, free flow of. See liberty Fleischacker, Samuel, 35 Gore, Al, 151–52 food imports, 161–62 government bailouts Ford, Gerald, 151 moral hazard and, 95–107, 116–17 foreign aid, 88, 107, 114–16, 160–62 virtuous behavior and, 11–12, 74–75 foreign investment, 165–71 Government Procurement Agreement (GPA), foreign policy, 138–39, 179 171 four freedoms, 39 government role Foxconn Technology Group, 127, 172–73 history of, 81–93 France, 22 in liberty and justice, 43 Francis, Pope, 7–8, 28, 77–78, 163 in promoting virtuous behavior, 79–80, Franklin, Benjamin, 76, 82 87–88 freedom, 38–39. See also liberty in reducing inequality, 51, 54–55, 63–65, Freedom Group, 168 75, 87–88 free trade, loyalty and, 12 Graeber, David, 103 , 12, 33 , 1, 25, 61, 99, 109, 178 Friedman, Benjamin, 76 Great Divergence, 144 Friedman, Milton, 10, 27, 87, 99, 111 Great , 1, 44, 63 Friedman, Thomas, 113 Great Society, 87, 89 Froman, Michael, 155 Great Tradeoff, 3, 8–13. See also tradeoffs Fuller, Melville, 37–38 Greece, 69–73, 110, 117–19 Greene, Joshua, 14, 133–34 Galbraith, John Kenneth, 41, 78 Greenspan, Alan, 45, 115 Galston, William, 90, 134–35, 160 Grotius, Hugo, 19–20 game theory, 55–56, 131 Group of 7 (G-7), 181, 189 Gans, Herbert, 135 Group of 20 (G-20), 112, 181, 189

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© Peterson Institute for International Economics | www.piie.com http://bookstore.piie.com/book-store/6956.html Group of 77, 160 , 27 group theory of politics, 135 Initiative for Responsible Investment, 185 growth. See economic growth Institute for Global Labour and Human Rights, 172 Haidt, Jonathan, 132 intergenerational contract, 112–14 haircuts, 71, 101, 118 International Bank for Reconstruction and Hamilton, Alexander, 25, 35, 40, 82–83 Development, 26 Harlow, Bryce, 43 International Forum on Globalization, 6, 146 Havel, Vaclav, 27–28 international institutions. See also specific Hayek, Friedrich, 27 institution health insurance, 41 creation of, 26, 178 heavily indebted poor countries (HIPCs), 107 criticism of, 7 Hebrew doctrine, 20–21, 103–105 NGO attitudes toward, 183 Hecksher-Olin theory, 144–45 role of, 13, 139–41, 178–82, 189–91 hedonism, 78–79 US attitudes toward, 181 Heilbroner, Robert, 35 International Labour Organization (ILO), Hirschman, Albert, 90 183, 185 Hobbes, Thomas, 136–38 International Monetary Fund (IMF) Hobsbawm, Eric, 180 capital restrictions, 30, 31 Hochhuth, Rolf, 72 Coordinated Direct Investment Survey, Hoffman, Stanley, 138 169–70 Holland, François, 168 creation of, 26, 178 Holmes, Oliver Wendell, Jr., 14–15, 37 criticism of, 7 Hon Hai Precision Industry Co., 172 debt restructuring programs, 28, 95–96, Hoover, Herbert, 98–100 117–19 housing sector, 51 East Asian rescue, 11 human capital, 64 on economic growth, 63–64, 187 on fiscal policy, 32, 92 immigration, 59, 84, 140, 162–64 loans, 70–71, 100, 114–17, 179 imperialism, 22, 25 poverty statistics, 59 inclusive capitalism, 2 role of, 139–41, 178–82, 189 income on social justice, 31–32 global distribution of, 58–61, 60f wealth redistribution programs, 9–10, 64 inequality of (See inequality) international standards, 181 labor share of, 53 inversions, 174 income tax. See taxation investment India, 136 debt and, 110 individual rights versus justice, 38–40, 86–93 free flow of (See liberty) Indonesia, 114–15 in human capital, 64 , 4, 35, 57, 83–84, 86 importance of, 51–52, 61–62 inequality, 47–65 multinational corporations and, 165–71 categories of, 56–57 Islamic doctrine, 22, 104 class warfare raised by, 43, 79 Israel Apartheid Week, 186 in Europe, 44 Italy, 118 IMF report on, 32 liberty versus justice tradeoff, 10–11, 33–34, Jackson, Andrew, 36, 84 187–91 (See also justice; liberty) James, William, 14–15 measurements of, 51, 56–64, 187–88 Japan, 179 as political issue, 39–40 Jefferson, Thomas, 24, 35, 40, 82–83, 166 public opinion of, 6, 44, 55–56 Jenkins, Holman, Jr., 43 religious leaders on, 28 Jim Yong Kim, 5 as symbol of injustice, 56–64 jobs. See employment trend toward, 34, 44–45, 53–54, 58–60, Jobs, Steve, 125, 145 143–50 John Paul II, Pope, 40n, 77 in United States, 44, 63, 143–44

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© Peterson Institute for International Economics | www.piie.com http://bookstore.piie.com/book-store/6956.html Johnson, Lyndon, 9, 39, 40, 87, 89, 146, 168 Lagarde, Christine, 32, 119 JP Morgan, 37 Lamy, Pascal, 159 Juncker, Jean-Claude, 73 Lansing, Robert, 134 justice Lasch, Christopher, 78 overview, 10–11, 33–34, 187–91 Latin American debt crises, 28–29 appeal of, 44–45 League of Nations, 180, 184 communitarianism and, 135 leaky bucket idea, 9, 32, 63–64 definitions of, 49–56, 74 Lee, Robert E., 131 equality aligned with, 33–34, 38–40, 56–64, Lee Kuan Yew, 4 187–88 (See also inequality) Lehman Brothers, 69, 101, 114, 117 evolution of, 133 Leo XIII, Pope, 77 global, 138–41 Levin, Carl, 153 history of, 35–43 Levine, Aaron, 105 measures of, 48 Lewis, R. W. B., 83 moral, 62–63 Libanius, 21 principles of, 47 liberal internationalism, 13, 130, 177–86, 189 in Washington Consensus, 29 liberalism, 24n, 40n, 40–41 just price, 21–22 libertarianism, 41, 133n, 164 liberty Kaczynski, Ted, 131 overview, 10–11, 19–20, 33–34, 187–91 Kant, Immanuel, 73, 137, 180 economic theory on, 9–10, 19–32 Kapstein, Ethan, 13, 129–30 foreign policy based on, 139 Kaptur, Marcy, 154 forms of, 39 Keats, John, 14 modern crisis in, 28–32 Kennan, George F., 138–39 origins of, 20–24 Kennedy, Edward, 154 in United States, 24–28, 38–39 Kennedy, John F., 87, 92, 111, 149, 160 Lincoln, Abraham, 36, 84–85, 131 Keynes, John Maynard Lipton, David, 92 at Bretton Woods, 26, 177–78, 188 liquidationist view, 99, 100 on debt, 107, 110–14 living standards, 58–60, 143–44 on Germany, 72 Lochner v. New York, 37–38 on inequality, 61 Locke, John, 24 on moral values, 9–10 Long-Term Capital Management (LTCM), 115 Roosevelt’s meeting with, 109 Lopokova, Lydia, 177 Keynesian revolution, 110–14 loss aversion, 155 Kimberly Process, 185–86 Louis XIV, King, 22 Kindleberger, Charles, 98 loyalty Kissinger, Henry, 138 overview, 12–13, 125–26, 187–91 Klein, Ezra, 89 case study of, 150–54 Kristol, Irving, 80 categories of, 126–30 Kristol, William, 80 to community (See communitarianism) Krueger, Anne, 63 conflicts involving, 159–75 Krugman, Paul, 45, 149 consumers’ role, 171–73 Kuznets, Simon, 50, 57–58 corporate tax havens, 173–75 immigration, 162–64 labor. See also employment multinational corporations, 165–71 immigration and, 163 to world (See cosmopolitanism) income derived from, 53–54 Luce, Edward, 167–68 multinational corporations and, 166 luck, 78 trade agreements and, 126–28, 156 as virtuous behavior, 84–85 Maastricht Treaty, 26 working conditions, 172–73, 183–85 Machiavelli, Niccolo, 138 labor movement, 85, 172–73, 183–85 Madison, James, 11, 35, 82 Laffer, Arthur, 92 Malthus, Thomas, 49, 86

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© Peterson Institute for International Economics | www.piie.com http://bookstore.piie.com/book-store/6956.html Mandelbaum, Michael, 42, 113, 164 in economics, 8–10 Mandeville, Bernard, 23, 86 evolution of, 133 Mankiw, Gregory, 50, 128 foreign policy based on, 138–39 Mann, Bruce, 106 globalization, 1–3, 120–21, 178–82 manufacturing sector, 144–49, 170 in market economy, 42–43, 74, 78 Marcuse, Herbert, 78 as political exercise, 188 market economy. See also capitalism rules of conduct, 73–74 cultural effects of, 43, 79–80 moral justice, 62–63 moral hazard in, 95–107 moral tradeoffs, 9. See also tradeoffs moral principles in, 42–43, 74, 78 Morgenthau, Hans, 138 Marshall Plan, 72, 169, 179 Morgenthau, Henry, Jr., 72, 177 Martinez, Marty, 153 Moynihan, Daniel Patrick Martyn, Henry, 23 on liberalism, 40n Marx, Karl, 35, 49 on liberty versus justice, 39–41 materialism, 78–79 on socialism, 136 McCarthy, Joseph, 41 on welfare dependency, 87–88, 90 McKinley, William, 36 multilateral cooperation, 181 Medicaid, 113 multinational corporations Medicare, 113 behavior standards, 184–85 Mellon, Andrew, 98–99 loyalty and, 12, 126, 165–71 Menand, Louis, 14 public opinion of, 6 mercantilism, 22–23, 25 tax havens, 173–75 Merkel, Angela, 70–72, 118 Muntefering, Franz, 71 metamorality, 14 Murray, Charles, 88 Mexico Mussa, Michael, 116 , 29, 95–96, 114 immigration, 163 Nagel, Thomas, 129, 136–38 US trade agreement with (See North National Commission on Fiscal Responsibility American Free Trade Agreement) and Reform, 174 micro societies, 135 National Recovery Administration (NRA), 38 Middle Ages, 21, 105 nation-state, 22, 132, 183–84, 189 middle class natural rights, 24, 27, 37 effect of globalization on, 60–61, 144–50 natural selection, 133 entitlement programs for, 90 negative capability, 14 Middle East, 27 negative income tax, 87–88 Mill, John Stuart, 103 negative liberty, 39 minimum wage, 54–55 Nehru, Jawaharlal, 132 Minsky, Hyman, 97 neoconservatism, 79, 88 mixed economy, 9, 41 Netherlands, 96 modernists, 132 Neuhaus, John, 77–78 Monnet, Jean, 26, 179 New Deal, 38, 39, 100, 109 Montebourg, Arnaud, 168 New Lanark experiment, 35 moral absolutism, 14–15, 110, 130, 190 New Left intellectuals, 78 moral desert, 76, 78 Newton, Isaac, 98 moral hazard Nixon, Richard bailouts and, 95–107, 116–17 , 27, 111 creditor, 100 relations with China, 138 debtor, 100 relations with India, 136 definition of, 11–12, 74–75 social welfare programs, 40–41, 87 in global financial crisis, 69–80, 100–103 Noah, Timothy, 144 sources of, 100 Nonaligned Movement, 160 morality. See also loyalty; virtue nongovernmental organizations (NGOs). See basic dogmas, 190–91 also specific organization debt and, 71–72, 75, 96–107, 112–19 antiglobalization movement, 6, 146–50, 183

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© Peterson Institute for International Economics | www.piie.com http://bookstore.piie.com/book-store/6956.html Bangladesh garment industry, 172 peace, 189 history of, 184–85 Peace of Westphalia, 138 role of, 13, 182–86, 189–90 pension assets, 166–68 North American Free Trade Agreement perennialists, 132 (NAFTA) Perot, H. Ross, 151–52, 167 continuing debate over, 154–57 Perry, Matthew, 25 liberty and, 29 Piketty, Thomas, 44, 48–56, 64–65, 89–90, 92, loyalty and, 12, 150–54 169 moral hazard and, 96 Pinker, Steven, 133 multinational corporations and, 167 Plato, 20 public opinion of, 5, 150–54 Pledge of Allegiance (US), 33 Novak, Michael, 77 Plutarch, 20, 103, 137 Nozick, Robert, 48–49, 78 Pogge, Thomas, 54, 140–41 Nussbaum, Martha, 138 political discourse liberty in, 38–40 Obama, Barack on loyalty, 126–27 Bangladesh garment industry, 172 on moral hazard, 75 election campaigns, 11, 81, 127 on moral imperatives, 188 global financial crisis, 72, 100–103 on virtue, 88–91 government initiatives, 41–42, 89 political freedom. See liberty multinational corporations, 166, 174 politics tax increases, 92 group theory of, 135 trade agreements, 7, 127, 129, 154–55 NGO involvement in, 186 unemployment, 125, 145 Poor Laws (UK), 86–87 Obergefell v. Hodges, 38 Populist movement, 36 Obey, David, 154 Posen, Adam, 62 Occupy Wall Street movement, 1, 48 positive liberty, 39 offshoring, 5–6, 125–28, 144–48, 166 poverty. See also emerging-market economies Okun, Arthur, 9, 32, 63–64 American values and, 86–93 O’Neill, Paul, 116 deregulation and, 28–31 opportunity, equality of, 39–40 globalization and, 58–63, 160 O’Reilly, Bill, 90 pragmatism, 14–15 Organization of Economic Cooperation and primordialists, 132 Development (OECD), 53, 64, 161, Prince, Charles, 97 179, 181 Principles of Responsible Investment (PRI), Organization of Petroleum Exporting 185 Countries (OPEC), 160 prioritarian cosmopolitanism, 138 Osborne, George, 173–74 prisoner’s dilemma, 131 Owen, Robert, 35 privatization, 53 Ozment, Steven, 72 profit shifting, 173–75 , 85 Palestine, 186 prospect theory, 155 panics, 36–37, 97–99 prosperity, inclusive, 2 , 99 protectionism, 23–24 , 36, 87 Protestant work ethic, 72, 77 , 37 protests, antiglobalization, 6, 162 paradox of thrift, 110 public opinion Pareto-optimal, 48 of globalization, 5–6 Paris Peace Conference (1919), 180 of inequality, 6, 44, 55–56 patrimonial capitalism, 48–49 of trade agreements, 5–6, 150–57 patrimonial class, 52 purchasing power parities (PPPs), 56–57, 58f patriotism, 125–26, 171–73. See also loyalty Putin, Vladimir, 180 Paulson, Henry, 102 Putnam, Robert, 134 Paul VI, Pope, 77

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© Peterson Institute for International Economics | www.piie.com http://bookstore.piie.com/book-store/6956.html Rajan, Raghuram, 63 Schäuble, Wolfgang, 72, 173–74 Rand, Ayn, 27, 91, 133n Scheffler, Samuel, 139 Rawls, John Schmidt, Helmut, 73 communitarianism and, 135–36 Schröder, Gerhard, 140 difference principle, 47, 129–30, 137 Schuman, Robert, 26, 179 on liberty versus justice, 10, 47–49, 139–41, Schumer, Charles, 54 161, 187 Schumpeter, Joseph, 127 Nozick’s critique of, 48–49, 78 Schwartz, Anna, 99 Reagan, Ronald, 4, 27, 41, 55, 91–92, 150 Scopes, John, 37n reform movements, 83 protests (1999), 6, 162 Reich, Robert, 165, 167 Second Great Depression, 109 relativism, 130 self-determination, 134 religious doctrine self-interest, 138 capitalism, 7–8, 76–78 selfish gene, 133 debt, 72, 103–105 Sen, Amartya, 49 global financial crisis, 7–8 September 11, 2001 attacks, 132, 140, 159 justice, 35, 42, 74 Servan-Schreiber, Jean-Jacques, 168 liberty, 20–22 services sector, 148–49 loyalty, 126 Shultz, George, 116 money making, 5, 52, 76–78 Simon, William, 43, 116 moral hazard, 100, 103 Simpson-Bowles commission, 174 social welfare, 28, 86–87, 91 Singer, Peter, 140–41, 181–82 rent seeking, 51–52, 54 slavery, 84 Republican Party (US), 84, 101–102 Smith, Adam, 9, 23–24, 74, 84, 98, 141 rescues Smoot-Hawley Tariff (US), 25, 151–52 moral hazard and, 95–107, 116–17 Social Darwinism, 37, 98, 133 virtuous behavior and, 11–12, 74–75 social democracy, 35 reshoring, 144–46 social engineering, 135 return on capital, 50–53 socialism r > g phenomenon, 50–54, 169 bailouts and, 101–102 rhetoric of reaction, 90 versus capitalism, 26–27 Ricardo, David, 23, 49, 86–87 history of, 35 Roberts, John, 38 poor countries and, 136 Rockefeller Foundation, 182, 184 religious doctrine on, 77 Rognlie, Matthew, 51 social justice, 9–10, 31–32, 135, 187–88. See Romney, Mitt, 11, 43, 81, 88, 127, 163 also justice Roosevelt, Franklin, 11, 38, 72, 87, 101, 109 Social Security, 113 Roosevelt, Theodore, 36–37, 42, 85 society of states, 130 Rothschild, Emma, 24 Socrates, 137 Rousseau, Jean-Jacques, 33 Solow, Robert, 50–51 Rubin, Robert, 29, 31, 95–96, 115–16 Sorkin, Andrew Ross, 168 Ruggie, John, 185 South Korea, 114–15 Russian default (1998), 115 South Sea bubble (1720), 36, 98 Ryan, Paul, 75, 90–91 sovereign debt restructuring mechanism (SDRM), 117 Sachs, Jeffrey, 116 Soviet Union, 26, 61, 134–35, 139, 179 Sacks, Lord Jonathan, 21 speculative euphoria, 97 Saez, Emmanuel, 44 Spencer, Herbert, 37, 98 Saint-Simon, Henri de, 35 spiteful egalitarianism, 63 Salinas de Gortari, Carlos, 151 , 27 Samuelson, Paul, 41, 111, 145 Stiglitz, Joseph, 29, 31, 44, 63, 115 Sandel, Michael, 42–43, 79–80, 85, 131, 183 market, 166–68 Santelli, Rick, 101–102 crash (1929), 98–99 Sarkozy, Nicolas, 69, 71, 118 Stolper-Samuelson theory, 145

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© Peterson Institute for International Economics | www.piie.com http://bookstore.piie.com/book-store/6956.html Suharto, 114–15 loyalty, 12–13 (See also loyalty) Sullivan Principles, 185 sustainable development, 129–30 Summers, Lawrence virtue, 11–12 (See also virtue) capital liberalization, 29 tragedy of the commons, 133 on economic growth, 62 Transatlantic Trade and Investment on financial crises, 32 Partnership (TTIP), 154–55 on global governance, 183–84 Transcendental movement, 83 Mexico debt crisis, 95 transnationalism, 180 on moral hazard, 119 Trans-Pacific Partnership (TPP), 5–6, 126, on Piketty’s theories, 51 149–50, 155 risk management strategy, 115 Treaty of Rome, 26, 179 supply side economics, 52 Trilling, Lionel, 130 supranationalism, 180 Troubled Asset Relief Program (TARP), 102 Supreme Court (US), 37–38 Truman. Harry, 179 survival of the fittest, 98 Trumka, Richard, 166 sustainable development, 129–30 Trump, Donald, 163 trust, 74 Talbott, Strobe, 132, 137, 180 Tsipras, Alexis, 70–72, 119 taxation capital and, 64–65 ultimatum game, 55–56 corporate tax havens, 173–75 unemployment, 96, 97f, 125, 144–50 global system of, 184 United Kingdom liberty and, 36–37 Corn Laws, 24, 146, 152 supply side economics, 52 debtors’ prisons, 105 virtue and, 87–88, 91–93 Poor Laws, 86–87 Tea Party (US), 41, 101–102 United Nations technology, 144–46 development assistance, 59, 161 terrorist attacks, 132, 140, 159 Economic and Social Security Council, 184 Thailand, 114–15 role of, 139–41, 180–81 Thaler, Richard, 56 Sullivan Principles, 185 Thatcher, Margaret, 4, 27 Universal Declaration of Human Rights, Thirty Years’ War, 138 185 Thomas Aquinas, St., 21 United States Tobin, James, 87 attitude toward globalization in, 5–6, 181 Tocqueville, Alexis de, 34, 39 bankruptcy law, 106–107 too big to fail principle, 101–102 debtors’ prisons, 106 trade debt relief programs, 107, 114–16 global, 127, 128f effects of globalization in, 61 globalization and, 146–50 federal debt, 112–13 loyalty and, 12 foreign aid, 161–62 Trade Adjustment Assistance (TAA) program, foreign policy, 138–39, 179 149–50 immigration to, 59, 84, 140, 162–64 trade agreements. See also specific agreement inequality in, 44, 63, 143–44 adverse effects of, 149–50 justice in, 35–42 employment and, 125–28 liberty in, 24–28, 38–42 loyalty and, 126, 150–57 role of government in (See government role) nongovernment organizations in, 183 trade policies, 149–50 poor countries and, 129–30, 159–62 trade statistics, 127, 128f public opinion of, 5–6, 150–57 values in, 34, 40, 75, 78–79, 81 trade barriers, arguments against, 20, 23–24, United States Conference of Catholic Bishops, 162 42, 91 tradeoffs universal economy, doctrine of, 21 overview, 3, 8–13, 187–91 universal laws, 19–20 liberty versus justice, 10–11 (See also justice; Uruguay Round, 171 liberty) utilitarianism, 14, 74, 103

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© Peterson Institute for International Economics | www.piie.com http://bookstore.piie.com/book-store/6956.html van Heemskerck, Jacob, 19 Welch, Finis, 43 veil of ignorance, 48 Whig Party (US), 84 Vernon, Raymond, 169 White, Harry Dexter, 177–78 virtue. See also moral hazard Whitman, Walt, 83 overview, 11–12, 187–91 Will, George, 80 in American society, 81–93 Williams, Rowan, 8 definitions of, 82–83 Wilson, Edward, 133 financial crises and, 95–107, 114–19 Wilson, Woodrow, 37, 134 role in capitalism, 73–80, 120–21 Wolf, Martin, 30, 64, 76, 129, 166 role in economic sphere, 75–80 Wolfensohn, James, 161–62 virtue ethics, 74 worker displacement, 148 Worker Rights Consortium, 172 wages working class, 60–61, 144–50 immigration and, 163 World Bank minimum, 54–55 on agricultural subsidies, 162 offshoring and, 145, 147–48 creation of, 25, 178 Wal-Mart, 171 criticism of, 7 Walzer, Michael, 134 debt restructuring programs, 28 Warren, Earl, 38 poverty statistics, 58–60, 62 Warren, Elizabeth, 102 role of, 139–41, 178–82, 189 Washington Consensus, 28–29 World Economic Forum (Davos), 182, 184 wealth World Trade Organization (WTO) philosophy of, 21–22 creation of, 26, 29, 178 public opinion of, 6 criticism of, 7 religious doctrine on, 5, 52, 76–78 Doha Round, 159–60 sources of, 48–52 role of, 139–41, 178–82 wealth redistribution Seattle demonstrations against, 6 economic theory on, 9–10, 32 World War I, 25, 180 government programs for, 51, 54–55, World War II, 25, 72 63–65, 75, 87–90 Wriston, Walter, 116 Weber, Max, 72, 76–78 Webster, Noah, 33 Zedillo, Ernesto, 162

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