This collective work brought together 22 of the most recognized American and French teachers and researchers on the subject of economic and social inequalities in the world. In the first part, the authors show their adherence to the thesis of Polyani (author of the bestseller “The Great Transformation”), according to which “the market economy is insufficiently anchored in society”. They question certain principles of the neo-liberal economy, in particular by challenging Friedman’s “trickle-down” theory, according to which market efficiency creates value for all actors in society. They denounce the silence of neo-liberals, inspired by the theories of Friedman and Hayek, on the often hidden negative externalities in the more or less long term, which are generated by the absence of market regulation. They express the views currently shared by post-Keynesian democrats in response to the ultra-liberal measures taken under the new US presidency. They take up the arguments initiated by Stiglitz, Milosevic and Piketty* by extending them to all forms of inequality, be they economic, social, political or cultural.  They identify the issues, trends and synergies, showing that these arguments have been developed – with varying degrees of success – by left-wing populist movements in Western countries. One of the interests of the book is therefore that it reveals the strengths but also the weaknesses of the reasoning developed by the American left parties. The second part, entitled “The New Light on the Facts”, highlights the 40-year decline of the labor market in favor of the capital market, and the decline in wages in favor of dividends and capital gains, due to a double movement of globalization of markets for goods and services (unfavorable to workers because of industrial relocations) and financialization of the world economy (favorable to large fortunes). The exponential growth in executive compensation (driven by increasingly sophisticated engineering combining salaries, bonuses, stock options, executive pensions, etc.) was stimulated by the soaring stock market (due to an increasingly “short-term” management) and real estate prices (fueled by unbridled money creation), which benefited the wealthiest assets.  In the third part, entitled “Policy Issues. Labor Markets, Education, Taxation, and Intellectual Property”, the researchers identify the political decisions and regulatory provisions that have directly affected the distribution of income and wealth in the United States, including those that have led to a stagnation of wages over the past 30 years, despite an increase in productivity in industry and services. The authors analyze the impact of the action of teachers’ unions on school results and find that this de-unionization has penalized teachers and students from disadvantaged neighborhoods and their access to employment. On another note, the authors argue that industrial and intellectual property rights, as well as certain employment aids, create near-monopoly situations and real rents (especially in the finance, health and digital sectors), which benefit the dominant shareholders of companies, who constitute half of American billionaires. During the 2007-2010 crisis, public funds allocated to banks and insurers thus mainly benefited the richest 1%. In the fourth part, devoted to “political contexts and future prospects”, the researchers analyze the evolution of discourse on income inequality.  They observe that these perceptions vary from one country to another because of their socio-cultural disparities. In some countries, such as France, discourses on the “social divide” may have encouraged various forms of discrimination without generating more social justice. The latest surveys show that the rising cost of higher education is making the debt of children from the most modest families increasingly unbearable and is depriving the nation of talent. The authors advocate the establishment of a federal employment guarantee upon graduation and baby-trusts to finance education at the lowest cost. Rudiger L. von Arnim is a professor of economics at the University of Utah and Joseph E. Stiglitz is a professor at Columbia University and a Nobel Prize winner in economics. * see other columns on this blog. note by Jean-Jacques Pluchart

The book’s subtitle is: the economics of degrowth. This sets the tone for the entire book. For the author, economic growth only benefits the richest: one only has to look at the persistence of the number of poor people. Inequalities are creating significant gaps for the poorest. Moreover, the wealthy are the source of the most pollution. A sentence from the author sums up his point: “degrowth, as a reduction in production and consumption to alleviate the ecological footprint, planned democratically in a spirit of social justice and in the interest of well-being” Is GDP the only important thing? It is neither more nor less than an “economic agitation” that does not take into account other factors such as human well-being or happiness. Well-being is not necessarily linked to changes in GDP. We must escape this “tyranny” of GDP. Currently, the race to improve labor productivity in order to increase growth is a goal that we must constantly try to achieve, at the expense of the environmental damage to ecosystems. Does economic growth reduce inequality? This is not accurate. It all depends on the distribution of this growth between wages and capital income. What do the proponents of degrowth propose? A shift towards sustainable degrowth, which would lead to a harmonious society. It means slowing down economic flows and turning to more sober and frugal lifestyles. The state should be the driver of this process, together with the representatives of the people. The goal would be to respect social justice by providing well-being, while respecting the balance of ecosystems. Any productivity gains would be oriented towards the well-being of workers: for example, by reducing working time. Suffice to say, this theory of degrowth generates a lot of criticism about its realism and how to achieve it. Indeed, what would happen to a country that adopted this new way of life, in a globalized environment? Wouldn’t it risk being marginalized, with disastrous consequences for its economic situation: capital flight and economic balances disrupted? It is up to each individual to form their own opinion after reading this well-documented and clear book. Timothée Parrique is a researcher in ecological economics at Lund University in Sweden. review by Renzo Borsato

The author approaches the European subject by probing the opinions of his high school and college students. The surveyed students were from Seine-Saint-Denis, the 5th arrondissement of Paris, and Tolbiac. Are young people passionate about the European project? Do they feel more European than French? Do they know the European institutions? Bagnolet high school students They are mostly from immigrant backgrounds and live in difficult family circumstances (some parents are unemployed). They note that Europe may be a market offering opportunities. Given its presence in the media world, the ECB is perceived as a monetary regulation institution. However, the other European institutions are less well known: the Parliament, the Commission, the Council. The Schengen area is highlighted for the convenience of traveling in Europe. It should be noted that all they have known is the euro, which facilitates trade. The Erasmus program makes them aware of their belonging to Europe. Preparatory students (Paris 5th and 16th arrondissement) Although they are of different sociological origins (more affluent social background), they adhere to the idea of a Europe that facilitates trade between its members. Tolbiac students Their approach is a little different: they know better the various workings of the institution. Like their prep colleagues, they recognize the importance of the role played by the European Central Bank (ECB). They also note the importance of collective action during the financial crises and the COVID-19 pandemic. In conclusion, no group of students mentioned the idea of a “Frexit”. It should first be noted that students see the practical side of Europe because of the existence of the Erasmus program: it is a way to open up to other horizons and other cultures. It was created in 1987. These young people were born after the creation of Europe and the euro: it would not occur to them to question it. Even the far-right political parties have abandoned this idea, which they had fiercely defended a few years earlier. One particular point brings negative remarks: the social aspect. Indeed, because of the commercial competition between members, employees earning minimum wage may find themselves unemployed. Some industries are relocated to countries with lower wages. This book brings us closer to the concerns of these young people: we must listen to them and enlighten them on the path of Europe: they are the ones who will be the actors of the next European advances. Frédéric FARAH is a professor of economic and social sciences, a teacher in preparatory classes and at the University of Paris 1 Panthéon Sorbonne. Chronicle by Renzo Borsato. 

Since the launch in 2022 by Open AI of the first Chat GPT application, the development of generative AI (IAg) has been one of the main issues of concern for academic researchers and experienced AI practitioners, as well as for authors of science fiction novels. Most publications focus on its functional aspects and socio-economic impacts, but some of them reflect the diversity and acuity of the questions and concerns raised by the meteoric rise of AI, blockchain and Large Language Models (LLM). They engage in various approaches to these developments (descriptions, practical examples, case studies, etc.), but few of them, like Philip K. Dick or Isaac Asimov, practice the art of the novel or short story. This is the case of Gauthier Dombreville’s book, which deserves special attention for its originality and creativity. It is organized into nine short stories featuring imaginary situations that could be triggered by future developments in AI, autonomous driving, managed traffic, instant exchanges, voice assistants, digital twins, image generators, etc. The author recalls the projects imagined and implemented by the leaders of GAFAM – and in particular the “prophecies” of Mark Zuckerberg, founder of Meta. He then presents these situations in the manner of science fiction novels. He uses concrete examples to show the dangers of “crazy digital innovations”, the loss of control of black boxes, overly intelligent assistant robots, new humanoids, etc. Although presented as a “vacation read”, the book encourages reflection on the distressing and dehumanizing characteristics of the new “artificial paradises” engendered by IAg solutions. Reading allows us to glimpse some unsuspected externalities of business management. The author is an engineer with a passion for science fiction. Review written by J-J. PLUCHART

The book is doubly original in its subject matter – “hyper fakes” or deepfakes made possible by AI – and in its style, which is both precise and spontaneous. It presents the evolution of counterfeits, fakes, simulations, manipulations… throughout the ages. It shows that AI – especially in its generative version that appeared in 2022 with the ChatGPT solution – has accelerated the movement of disinformation, some of whose objectives, contrary to the ethics of AI, aim to hide the truth (“post-truth”), to disguise reality (“hyper-reality”), to simulate an object or influence a subject (nudging).  This propensity of AI to “falsify reality” has been multiplied by increasingly massive data processing, mainly from exchanges on social networks.  It is also due to the interoperability of communication vectors (voice, images, videos,texts), but also to the development of software between geopolitical blocks, nation-states, political currents, social groups, etc. The author provides a wealth of examples, some well-known, some less so, of fake news, cheap fakes and deep fakes, with tragicomic or dramatic consequences, but he is above all engaged in a philosophical (or rather philological) reflection on the representations of reality due to Plato (the “myth of the cave”), to Kant (the “phenomena”), to Baudrillard (the “simulations and simulacra”), to Debord (the “society of the spectacle”), to Benjamin (the “loss of authenticity”), to Rivault d’Allone (the “weakness of the true”) and to Guerouanou (his doctoral thesis on the “vertigo of anthropotechnics”).  Olivier Laskar analyzes the ongoing research on falsification and simulation techniques, but also on the detection of fakes and plagiarism (debunking) and the tracing of fakes (water making). In particular, he presents the French project Moshi, which foreshadows the conversational robots of tomorrow, whose image and voice simulate “almost to perfection” the exchanges and emotions of subjects in a given situation.  This new “fake technology” is developed by the offer of easily accessible open source software, emanating from start-ups and academic research laboratories. These developments fuel the practices of nudging (influence), green washing (greening of projects), social bashing (denigration)…, but they also raise new, more philosophical questions about the notions of truth and reality, normal and paranormal. Olivier Laskar (engineer) is editor-in-chief of the digital division of the journal Sciences et Avenir. note by J-J.Pluchart

“Financial Innovation in Developing Countries” (collective under the direction of Pierre JACQUET and Jean-Michel SEVERINO) “Changing the way we look at emerging and developing countries, as well as the institutions and public actors that support them”, this is the ambition of this collective work led by two economists, leading experts on these themes.   Indeed, the image of these countries has too long been associated with conservatism, especially for Africa.  This trend is compounded by the negative view of institutions and an archaic perception of the banking and industrial sectors, which in many respects are inherited from the colonial era. The authors focus on showing the consequences, particularly in the first part, in terms of efficiency and financial inclusion, of the development of financial innovation that is underway in these countries. The second part deals with the use of finance to achieve specific impacts, while the third addresses the role of financial innovation in addressing international debt problems and their management.                                                                                                               The panorama outlined in this new issue of the REF is certainly far from exhausting the theme of financial innovation and its role in development. As for the contribution of developing countries, some of them “have reached the technical frontier and have financial systems that are as efficient as those of developed countries”.                                                       Finance is changing its nature. Financial innovation continues at a rapid pace, supported by the digital revolution. It is time, the authors emphasize, to reflect on public and regulatory policies that will maximize the benefits and manage the risks.  There is no doubt that this new publication, which is relevant in every respect, makes a decisive contribution.           Review by   Jean louis   CHAMBON

This collective work is a synthesis of CEPREMAP’s latest work on democracy, in response to the major challenges of the 21st century. The first chapter, written by Fanny HENRIET and Katheline SCHUBERT, focuses on the energy transition to a net-zero world. This investment-intensive transition will be long, difficult, and costly, and the long-term impact on growth is not clear. Two worldviews are exposed to climate change: the pessimistic belief that the solution can only come from economic downturn or collapse; and optimistic faith in life-saving technological progress. However, effectively tackling climate change avoids high adaptation costs. The authors have a number of levers; some are more effective, others easier to implement, but none can be used alone. In the second chapter, Jean-François LASLIER explores innovative voting methods, such as “vote by evaluation” as opposed to “single member vote” and their impact on the results of elections. A passage is dedicated to Nicolas de Condorcet, economist under Turgot, and a key figure in the theory of voting. The author presents the work carried out from several French and US elections and concludes on a positive note. Voters are ready to experiment and express themselves in these new ways of voting, which would leave democracy intact. Thomas Renault then gave an overview on the use of Twitter to measure the well-being of French people. Before becoming X following Musk’s takeover in November 2022, the Twitter platform was accessible to researchers to collect opinions, thoughts and emotion metrics. In the study presented, the database consists of more than 23 million messages sent between 2010 and 2022. Once the sample has been constructed and corrected for biases (the effect of robots, among others), it turns out that it is possible to construct relevant and robust indicators to measure French morale in addition to surveys carried out in a more traditional way. In a fourth chapter, Quentin LIPPMAN presents his study on the effect of the “parity law” of 6 June 2000 on the number of women elected, their place in the political sphere and in the business world. While the law has increased the number of women on boards, it has not affected the highest positions in the company. The acceleration effect is not significant for two main reasons: the time-consuming nature of positions in the hierarchy seems incompatible with their greater family responsibilities. Women are also less ambitious than men and less eager to occupy these positions of power. Finally, Philippe ASKENAZY and Thomas BREDA address the theme of democracy at work, which is reflected in the close links with staff representation and collective bargaining. They also reflect on the obstacles to the implementation of a democracy at work, reflected in the collective expression of employees’ interests and aspirations. They end with a call to strengthen the capacities and competences of the social partners in order to resume social dialog. The authors are members of CEPREMAP (Center for Economic Research and its Applications). Its mission is to provide an interface between the academic world and public decision-making. Daniel COHEN was its director from 2005 to 2023. Since her disappearance, Claudia SENIK has taken over its management. Column by Sophie Friot

The collective work directed by J-C. Trichet, President of the Academy in Moral and Politics Sciences in 2023 and is Current President of the Turgot Prize jury, is of unparalleled prestige among the 5,000 works reviewed by members of the Turgot Club since 1987.  The book brings together a prestigious group of former Prime Ministers and Ministers, European commissioners and senior officials, heads of international institutions and ambassadors, central, international and national bankers, etc., who have held the highest positions over the past half-century. The book covers governance in all its dimensions, international and national, public and private, past (the great models), present (the improbable devices) and future (the expectations). The book also has the distinction of being written in different styles, such as a keynote address, a political speech, a legal brief, a collection of memories, etc., but it nonetheless retains its coherence and power of attraction, qualities that are increasingly rare in post-modern political and economic literature. The book is organized into five chapters. The first deals with the private governance practiced by large international, industrial, and banking companies, with the testimonies and recommendations of P. Barbizet, then A. Minc, H. Davies and E. Roman. The second chapter focuses on the governance of major international institutions with contributions from O. Renaud-Basso on the governance of the IBRD, then P. Lamy on the WTO, J. de Lamassoure on the effects of monetary policies and C. Lagarde on supranational governance. Chapter 3 deals with “green governance” with E. Faber who explains the foundations of the ISSB (International Sustainability Standards Board) strategy, then Mr. Mac Carney who reflects on good global environmental governance, while L. Fabius draws lessons from COP22 in 2016. Chapter 4 is devoted to “good governance and good public administration”. E. Balladur analyzes the successive reforms to the Constitution of the Fifth Republic, while L. Fabius analyzes the different forms of governance practiced at the international and national levels. J-C. Junker traces the evolution of European institutions; M. Pébereau stresses the importance of a rapid recovery of French finances; F. Villeroy de Galhau presents the governance of the Banque de France and M de Boisdeffre reflects on the role of users in Western democracies. Chapter 5 finally compares the different global visions of governance with a reflection by J-D. Levitte on the progress of global diplomacy since the 1990s; T. de Montbrial wonders about the future of the global economic system. The late J. Baechter strives to conclude by distinguishing “good governance”, effective and/or profitable ” and “good governance”, moral and equitable, whose combination is becoming increasingly difficult. Review by J-J. Pluchart

 J.E Stiglitz, Nobel Prize winner in economics, published his latest book in 2024, entitled The Roads of Freedom. Economics and Good Society, which has just been translated into French. In it, he traces his “intellectual journey over the last half-century”, which has been marked by multiple theoretical currents, economic crises and social events. In his book, the author analyzes the economic systems implemented in several countries and internationally, according to the type of risk they pose to markets and their main actors: businesses, citizen-consumers and public institutions. He supports systems that ensure a “balance between economic and political freedoms”. He distinguishes several types of freedoms: “to work, to enjoy the fruits of one’s labor, to own property and manage it, to participate in a free market, but also, to be free from want and fear”. He shows the complexity of the concept of freedom, whose determinants, inherited from the history of each nation-state, are more or less compatible. J.E. Stiglitz deals with the issue of freedom through a discourse analysis – or “rhetoric” – and the actions of the main actors of economic and social life, including governments and the media.  Freedom has an “intrinsic link with the notions of equity, justice and well-being.” Its enjoyment is directly conditioned by the dominant economic system in the country. The exercise of these freedoms should contribute to “the development and realization of the potential” of citizens. The author is thus led to analyze the different forms of capitalism, and especially that of neoliberal capitalism – which he calls “unfettered” – inspired by Hayek and Friedman and became dominant in the late 1970s. According to Stiglitz, this system is based on a deliberate underestimation of its externalities and on the mistaken belief in a strong efficiency of economic, monetary and financial markets. He focuses his analysis on the system applied in the United States, which he recognizes the strengths – including dynamism and flexibility – but denounces the weaknesses, mainly economic instability and social insecurity. He denounces the biases of measurement systems of economic exchanges and social inequalities, which contribute to “shrinking the societal well-being”. J.E. Stiglitz therefore proposes to “rebuild the global economic and legal system”.  He rejects international capitalism in its present form, preferring a more balanced form of capitalism oriented towards a “shared societal prosperity”. As a good neo-Keynesian, he advocates a new form of “progressive capitalism” coupled with a “social democracy” based on “knowledge – innovation and living together – and on a decentralized economy regulated by institutions adapted to the management of the common good”. Among the exemplary social actors, he cites some major American universities, cooperative associations, etc., but he castigates the current excesses of the policies of certain rulers. He is also critical of some press, whose “misinformation and disinformation” maintain divisions and populism. In his book, J.E. Stiglitz refers to the work of the most recognized economists, with whom he has cooperated or opposed. He often refers to the thinking of Adam Smith, as set out in his Theory of Moral Sentiments. J.E. Stiglitz (Nobel Prize in Economics in 2001) was chief economist of the World Bank. He is the author of numerous books and scientific articles, as well as several official reports, including in 2008, the one on the change of instruments for measuring French growth (jointly with Amartya Sen and Jean-Paul Fitoussi. review by JJ  Pluchart

The latest book by Denis Olivennes has a specific and urgent objective, which he summarizes in its title: How to increase the productive power of France and better remunerate work?. He believes that the French are victims of “outdated software”: “spending and taxing more while working less”. He engages in a classical analysis of the factors of the “Great Decline” of France, comparing its main economic indicators to European standards, and in particular to those of Germany.  He deplores the propensity of the French to increasingly prefer leisure to work and to maintain a “culture of conflict” based on slogans such as “tax the rich” and “the praise of laziness”. He also denounces the tendency of elected officials to adopt populist and electoral postures and their propensity to prefer “taxing the rich” to reducing public spending. Beyond this commonplace observation shared by most economists and sociologists, the author makes three main proposals to restore the value of work: stabilize public debt through budgetary savings and not through new taxes on businesses and consumers; promote work by revaluing it through a reduction in social security contributions and taxes; increase labor productivity through a “Work Shield” based on a faster diffusion of innovation, better training, favorable conditions for returning to work after unemployment, and an extension of the retirement age. He also advocates an intergenerational transfer of resources from retirees to the working population, by “shifting the tax base from work to land and environmental protection”. The author draws his sources from the best scientific and professional articles. His strength of conviction and his “common sense” reasoning are served by a direct and didactic style. Denis Olivennes (a graduate of the Ecole Normale and the Ecole Nationale d’Administration) is president of a press, publishing and television group. He is the author of numerous articles and books. Notes by J-J.Pluchart