The message from the President of IISES
Social and Economic Studies – what are we aiming at? The world, and in particular Europe, has suffered a lot from various economic and financial crises with enormous social repercussions. Big companies that disappeared because of the crises are well known. But who speaks about the hundred thousands of small and medium enterprises that did not survive a crisis that they were not responsible for? What about the millions who lost their job? And the millions who lost their financial investment recommended before by banks and other financial institutions?
The last crisis started in 2007. Everybody remembers the key words of the still ongoing debate about this crisis, subprime mortgage, housing bubble, Lehman Brothers ….
Allegedly this crisis is over, is it really? If not, how long will it still last? And how it will end? By itself, or can and will it be terminated by which economic forces. And when it will end, when and why will the next crisis come? There are questions after questions? There are no simple answers. We may look into the economic sciences and find no convincing explanations, only theories that are very often contradictory. The conventional or traditional economic sciences teach us that crisis would come and go in cycles. In a retro perspective view that may look to be proved despite evident differences in the cycles and the time between the cycles of the past. But it does not help to predict or even prevent new crises.
For the real world and the repercussions of economic crisis on daily life everything that is said afterwards is obviously in vain. As we have seen in the lessons allegedly learned in the past did neither prevent nor moderate the next crisis. The only thing that we certainly know so far is that economic crises are coming and going. One could assume that there is a “Darwinian” built-in mechanism in Adam Smith’s market economy to clean-up the economy and let only the strong ones survive. Are crises just to apply the law of the jungle in our economy? Are those who do not want to accept such an assessment condemned to fail?
Or is there a chance by using new models, e.g. dynamic modeling instruments, In creating a mathematical model of socioeconomic processes, not only to predict emerging crises but by providing the macro-economic data for governments and international financial institutions to enable them to take the right measures to escape from the silently ongoing “old” crisis and to avoid a new one. Social and economic studies are not an end in itself but should serve the people. The International Institute for Social and Economic Studies (IISES) is a platform for such attempts. It is open for new and unconventional approaches in social and economic science.
INTERNATIONAL INSTITUTE FOR SOCIAL AND ECONOMIC STUDIES
1. The future of the world economy. Crisis and possibilities of overcoming the structural imbalances
2. The problems of the middle class in the coming crisis and its social consequences
3. An estimate of the total magnitude of the crisis and its duration
4. Possible regional monetary and economic systems as the consequences of the collapse of the global dollar system
5. Regional financial systems and the potential for future economic growth
Shepheard-Walwyn (Publishers) Ltd
Due July 2019
This book is a response to the fundamental questions that have confronted the UK economy for decades which successive governments of the right and the left have failed to deal with adequately. Some of these questions are obvious, such as ‘Why does poverty still beset a large number of people, whilst others are grossly well-off?’; ‘Why are house prices continuously rising much faster than inflation, so that more and more people are left without a house of their own, or are borne down by the weight of a mortgage?’; ‘Why does UK productivity remain persistently low, despite constantly improving technology?’.
Other questions are less obvious, or are ignored through a belief that they arise from the natural order of things, such as ‘Why do the majority of workers find themselves as employees in jobs that give them little real sense of fulfilment?’; ‘Why is there awful traffic congestion, despite heavy expenditure on transport infrastructure?’; ‘Why does the tax system fail to bring about greater equality, despite progressive rates of tax on incomes?’.
All these questions, obvious or not, are perennial ones, not particularly related to membership of the European Union, but in another sense this book has a lot to do with Brexit, for the simple reason that Brexit leaves the UK economy in a new, unprecedented position. This inevitably arouses both hopes and fears of substantial change. Such hopes and fears may be irrational, but they raise the possibility of genuine reform. However, the author argues, Brexit alone does not change anything fundamental about the economy.
Why this is so, is because what requires fundamental reform is not any features of being in or out of the EU, but more deeply embedded ones, which have generally been established for a very long time. They are principally threefold: the taxation system, the land tenure system, and the banking system. All three require root and branch reform. The concerns engendered by Brexit may provide an opportunity lacking in more equable times.
Brian Hodgkinson qualified as a chartered accountant in the City of London, then won a scholarship to Oxford where he took a first in Philosophy, Politics and Economics and won the George Webb Medley Prize in Economics. Subsequently he taught Philosophy in the Social Studies School at Sussex University, before switching to teaching Economics in Sixth Forms. As the founder editor of British Economy Survey, he kept in touch with applied economics and questions of public policy. He is the author of A New Model of the Economy, The Advancement of Civilisation in the Western World and several other books.
Outline contents: Introduction, Rent, Wages, Capital, Structure of Industry, Property, Taxation, Public Expenditure, Money Banking and Interest, Transport, Housing, Public Utilities, Retailing, Agriculture, Foreign Trade and Investment, Historical Outline, Economic Justice.