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🔗 Finance & Investment 🔗 Economics 🔗 Business 🔗 Cooperatives

A credit union, a type of financial institution similar to a commercial bank, is a member-owned nonprofit financial cooperative. Credit unions generally provide services to members similar to retail banks, including deposit accounts, provision of credit, and other financial services. In several African countries, credit unions are commonly referred to as SACCOs (Savings and Credit Co-Operatives).

Worldwide, credit union systems vary significantly in their total assets and average institution asset size, ranging from volunteer operations with a handful of members to institutions with hundreds of thousands of members and assets worth billions of US dollars. In 2018, the number of members in credit unions worldwide was 274 million, with nearly 40 million members having been added since 2016.

Leading up to the financial crisis of 2007–2008, commercial banks engaged in approximately five times more subprime lending relative to credit unions and were two and a half times more likely to fail during the crisis. American credit unions more than doubled lending to small businesses between 2008 and 2016, from $30 billion to $60 billion, while lending to small businesses overall during the same period declined by around $100 billion. In the US, public trust in credit unions stands at 60%, compared to 30% for big banks. Furthermore, small businesses are 80% less likely to be dissatisfied with a credit union than with a big bank.

"Natural-person credit unions" (also called "retail credit unions" or "consumer credit unions") serve individuals, as distinguished from "corporate credit unions", which serve other credit unions.

🔗 Technology 🔗 History 🔗 Economics 🔗 Politics 🔗 Anthropology 🔗 Sociology 🔗 Futures studies 🔗 Culture 🔗 Demographics

Societal collapse (also known as civilizational collapse) is the fall of a complex human society characterized by the loss of cultural identity and of socioeconomic complexity, the downfall of government, and the rise of violence. Possible causes of a societal collapse include natural catastrophe, war, pestilence, famine, and depopulation. A collapsed society may revert to a more primitive state, be absorbed into a stronger society, or completely disappear.

Virtually all civilizations have suffered this fate regardless of size or complexity. But some revived and transformed, such as China and Egypt, while others never recovered, such as the Mayan Empire and the civilization on Easter Island. Societal collapse is generally a quick process, but rarely abrupt. Yet some have not collapsed but have only gradually faded away, as in the case of the British Empire since 1918.

Anthropologists, (quantitative) historians, and sociologists have proposed a variety of explanations for the collapse of civilizations involving causative factors such as environmental change, depletion of resources, unsustainable complexity, decay of social cohesion, rising inequality, secular decline of cognitive abilities, loss of creativity, and misfortune. However, complete extinction of a culture is rare; in most cases, the new societies that arise from the ashes of the old one are evidently its offspring, despite a dramatic reduction in sophistication. Moreover, the influence of a collapsed society, say that of the Roman Empire, may linger on long after its death.

Societal collapse is studied by specialists of history, anthropology, sociology, and political science. More recently, they are joined by experts in cliodynamics and study of complex systems.

🔗 China 🔗 Economics

Made in China 2025 (Chinese: 中国制造2025; pinyin: Zhōngguózhìzào èrlíng'èrwǔ) (MIC25, MIC 2025, or MIC2025) is a national strategic plan and industrial policy of the Chinese Communist Party (CCP) to further develop the manufacturing sector of China, issued by CCP general secretary Xi Jinping and Chinese Premier Li Keqiang's cabinet in May 2015. As part of the Thirteenth and Fourteenth Five-year Plans, China aims to move away from being the "world's factory"—a producer of cheap low-tech goods facilitated by lower labour costs and supply chain advantages. The industrial policy aims to upgrade the manufacturing capabilities of Chinese industries, growing from labor-intensive workshops into a more technology-intensive powerhouse.

Made in China 2025's goals include increasing the Chinese-domestic content of core materials to 40 percent by 2020 and 70 percent by 2025. To help achieve independence from foreign suppliers, the initiative encourages increased production in high-tech products and services, with its semiconductor industry central to the industrial plan, partly because advances in chip technology may "lead to breakthroughs in other areas of technology, handing the advantage to whoever has the best chips – an advantage that currently is out of Beijing’s reach."

Since 2018, following a backlash from the U.S., Europe, and elsewhere, the phrase "MIC 2025" has been de-emphasized in government and other official communications, while the program remains in place. The Chinese government continues to invest heavily in identified technologies. In 2018, the Chinese government committed to investing roughly US$300 billion into achieving the industrial plan. In the wake of the COVID-19 pandemic, at least an additional $1.4 trillion was also invested into MIC 2025 initiatives. Given China's current middle income country status, the practicality of its disproportionate expenditure on pioneering new technologies has been called into question.

🔗 Mathematics 🔗 Economics 🔗 Game theory

A Vickrey auction or sealed-bid second-price auction (SBSPA) is a type of sealed-bid auction. Bidders submit written bids without knowing the bid of the other people in the auction. The highest bidder wins but the price paid is the second-highest bid. This type of auction is strategically similar to an English auction and gives bidders an incentive to bid their true value. The auction was first described academically by Columbia University professor William Vickrey in 1961 though it had been used by stamp collectors since 1893. In 1797 Johann Wolfgang von Goethe sold a manuscript using a sealed-bid, second-price auction.

Vickrey's original paper mainly considered auctions where only a single, indivisible good is being sold. The terms Vickrey auction and second-price sealed-bid auction are, in this case only, equivalent and used interchangeably. In the case of multiple identical goods, the bidders submit inverse demand curves and pay the opportunity cost.

Vickrey auctions are much studied in economic literature but uncommon in practice. Generalized variants of the Vickrey auction for multiunit auctions exist, such as the generalized second-price auction used in Google's and Yahoo!'s online advertisement programmes (not incentive compatible) and the Vickrey–Clarke–Groves auction (incentive compatible).

🔗 Economics 🔗 Philosophy 🔗 Philosophy/Ethics

The utility monster is a thought experiment in the study of ethics created by philosopher Robert Nozick in 1974 as a criticism of utilitarianism.

🔗 Economics

"The Market for Lemons: Quality Uncertainty and the Market Mechanism" is a well-known 1970 paper by economist George Akerlof which examines how the quality of goods traded in a market can degrade in the presence of information asymmetry between buyers and sellers, leaving only "lemons" behind. In American slang, a lemon is a car that is found to be defective after it has been bought.

Suppose buyers cannot distinguish between a high-quality car (a "peach") and a "lemon". Then they are only willing to pay a fixed price for a car that averages the value of a "peach" and "lemon" together (p_avg). But sellers know whether they hold a peach or a lemon. Given the fixed price at which buyers will buy, sellers will sell only when they hold "lemons" (since p_lemon < p_avg) and they will leave the market when they hold "peaches" (since p_peach > p_avg). Eventually, as enough sellers of "peaches" leave the market, the average willingness-to-pay of buyers will decrease (since the average quality of cars on the market decreased), leading to even more sellers of high-quality cars to leave the market through a positive feedback loop.

Thus the uninformed buyer's price creates an adverse selection problem that drives the high-quality cars from the market. Adverse selection is a market mechanism that can lead to a market collapse.

Akerlof's paper shows how prices can determine the quality of goods traded on the market. Low prices drive away sellers of high-quality goods, leaving only lemons behind. In 2001, Akerlof, along with Michael Spence, and Joseph Stiglitz, jointly received the Nobel Memorial Prize in Economic Sciences, for their research on issues related to asymmetric information.

🔗 Internet culture 🔗 Economics

You'll own nothing and be happy (alternatively you'll own nothing and you'll be happy) is a phrase originated by Danish Politician Ida Auken in a 2016 essay for the World Economic Forum. After appearing in a WEF video in 2016, the phrase began to be used by critics of the World Economic Forum (WEF) who accuse the WEF of desiring restrictions on ownership of private property.

🔗 Economics 🔗 Politics 🔗 Futures studies 🔗 Civil Rights Movement

"The Triple Revolution" was an open memorandum sent to U.S. President Lyndon B. Johnson and other government figures on March 22, 1964. Drafted under the auspices of the Center for the Study of Democratic Institutions, it was signed by an array of noted social activists, professors, and technologists who identified themselves as the Ad Hoc Committee on the Triple Revolution. The chief initiator of the proposal was W. H. "Ping" Ferry, at that time a vice-president of CSDI, basing it in large part on the ideas of the futurist Robert Theobald.

🔗 Economics 🔗 Game theory

A Vickrey–Clarke–Groves (VCG) auction is a type of sealed-bid auction of multiple items. Bidders submit bids that report their valuations for the items, without knowing the bids of the other bidders. The auction system assigns the items in a socially optimal manner: it charges each individual the harm they cause to other bidders. It gives bidders an incentive to bid their true valuations, by ensuring that the optimal strategy for each bidder is to bid their true valuations of the items. It is a generalization of a Vickrey auction for multiple items.

The auction is named after William Vickrey, Edward H. Clarke, and Theodore Groves for their papers that successively generalized the idea.

The VCG auction is a specific use of the more general VCG Mechanism. While the VCG auction tries to make a socially optimal allocation of items, VCG mechanisms allow for the selection of a socially optimal outcome out of a set of possible outcomes. If collusion is likely to occur among bidders, the VCG outperforms the generalized second-price auction for both revenues produced for the seller and allocative efficiency.

🔗 Economics 🔗 United Kingdom 🔗 Retailing

In economics, shrinkflation is the process of items shrinking in size or quantity, or even sometimes reformulating or reducing quality while their prices remain the same or increase. The word is a portmanteau of the words shrink and inflation. First usage of the term has been attributed to both Pippa Malmgren and Brian Domitrovic.