The billionaires and corporate oligarchs meeting in Davos this week are getting worried about inequality. It might be hard to stomach that the overlords of a system that has delivered the widest global economic gulf in human history should be handwringing about the consequences of their own actions.
But even the architects of the crisis-ridden international economic order are starting to see the dangers. It’s not just the maverick hedge-funder George Soros, who likes to describe himself as a class traitor. Paul Polman, Unilever chief executive, frets about the “capitalist threat to capitalism”. Christine Lagarde, the IMF managing director, fears capitalism might indeed carry Marx’s “seeds of its own destruction” and warns that something needs to be done.
The scale of the crisis has been laid out for them by the charity Oxfam. Just 80 individuals now have the same net wealth as 3.5 billion people – half the entire global population. Last year, the best-off 1% owned 48% of the world’s wealth, up from 44% five years ago. On current trends, the richest 1% will have pocketed more than the other 99% put together next year. The 0.1% have been doing even better, quadrupling their share of US income since the 1980s.The Davos oligarchs are right to fear the world they’ve made (Guardian)
When it comes to more regulation or higher taxes, Randers says voters tend to revolt and, as a result, politicians will continue to refuse to take courageous steps for fear of being thrown out of office at the next election.
“The capitalist system does not help,” says Randers. “Capitalism is carefully designed to allocate capital to the most profitable projects. And this is exactly what we don’t need today.
“We need investments into more expensive wind and solar power, not into cheap coal and gas. The capitalistic market won’t do this on its own. It needs different frame conditions – alternative prices or new regulation.”‘It is profitable to let the world go to hell’ (Guardian)
Multitasking has been found to increase the production of the stress hormone cortisol as well as the fight-or-flight hormone adrenaline, which can overstimulate your brain and cause mental fog or scrambled thinking. Multitasking creates a dopamine-addiction feedback loop, effectively rewarding the brain for losing focus and for constantly searching for external stimulation. To make matters worse, the prefrontal cortex has a novelty bias, meaning that its attention can be easily hijacked by something new – the proverbial shiny objects we use to entice infants, puppies, and kittens. The irony here for those of us who are trying to focus amid competing activities is clear: the very brain region we need to rely on for staying on task is easily distracted. We answer the phone, look up something on the internet, check our email, send an SMS, and each of these things tweaks the novelty- seeking, reward-seeking centres of the brain, causing a burst of endogenous opioids (no wonder it feels so good!), all to the detriment of our staying on task. It is the ultimate empty-caloried brain candy. Instead of reaping the big rewards that come from sustained, focused effort, we instead reap empty rewards from completing a thousand little sugar-coated tasks.
Just having the opportunity to multitask is detrimental to cognitive performance. Glenn Wilson, former visiting professor of psychology at Gresham College, London, calls it info-mania. His research found that being in a situation where you are trying to concentrate on a task, and an email is sitting unread in your inbox, can reduce your effective IQ by 10 points. And although people ascribe many benefits to marijuana, including enhanced creativity and reduced pain and stress, it is well documented that its chief ingredient, cannabinol, activates dedicated cannabinol receptors in the brain and interferes profoundly with memory and with our ability to concentrate on several things at once. Wilson showed that the cognitive losses from multitasking are even greater than the cognitive losses from pot‑smoking.
In a famous experiment, my McGill colleagues Peter Milner and James Olds, both neuroscientists, placed a small electrode in the brains of rats, in a small structure of the limbic system called the nucleus accumbens. This structure regulates dopamine production and is the region that “lights up” when gamblers win a bet, drug addicts take cocaine, or people have orgasms – Olds and Milner called it the pleasure centre. A lever in the cage allowed the rats to send a small electrical signal directly to their nucleus accumbens. Do you think they liked it? Boy how they did! They liked it so much that they did nothing else. They forgot all about eating and sleeping. Long after they were hungry, they ignored tasty food if they had a chance to press that little chrome bar; they even ignored the opportunity for sex. The rats just pressed the lever over and over again, until they died of starvation and exhaustion. Does that remind you of anything? A 30-year-old man died in Guangzhou (China) after playing video games continuously for three days. Another man died in Daegu (Korea) after playing video games almost continuously for 50 hours, stopped only by his going into cardiac arrest.Why the modern world is bad for your brain (Guardian)
Eli Lilly charges more than $13,000 a month for Cyramza, the newest drug to treat stomach cancer. The latest medicine for lung cancer, Novartis’s Zykadia, costs almost $14,000 a month. Amgen’s Blincyto, for leukemia, will cost $64,000 a month.Why Drugs Cost So Much (New York Times)
Why? Drug manufacturers blame high prices on the complexity of biology, government regulations and shareholder expectations for high profit margins. In other words, they say, they are hamstrung. But there’s a simpler explanation.
Companies are taking advantage of a mix of laws that force insurers to include essentially all expensive drugs in their policies, and a philosophy that demands that every new health care product be available to everyone, no matter how little it helps or how much it costs. Anything else and we’re talking death panels.
Examples of companies exploiting these fault lines abound. An article in The New England Journal of Medicine last fall focused on how companies buy up the rights to old, inexpensive generic drugs, lock out competitors and raise prices. For instance, albendazole, a drug for certain kinds of parasitic infection, was approved back in 1996. As recently as 2010, its average wholesale cost was $5.92 per day. By 2013, it had risen to $119.58.
Novartis, the company that makes the leukemia drug Gleevec, keeps raising the drug’s price, even though the drug has already delivered billions in profit to the company. In 2001 Novartis charged $4,540, in 2014 dollars, for a month of treatment; now it charges $8,488. In its pricing, Novartis is just keeping up with other companies as they charge more and more for their drugs. They know we can’t say no.
But what if we didn’t require insurance companies to cover all drugs? We can see the answer in Europe. Many European countries say no to a handful of drugs each year, usually those that are both pretty ineffective and highly costly. Because they can say no, yes is not a guarantee. So companies have to offer their drugs at prices that make them attractive to these health care systems. A recent survey of cancer drug policies revealed you don’t have to say no very often to get discounts for saying yes...