Dean Baker
Encyclopedia
Dean Baker is an American
macroeconomist and co-founder of the Center for Economic and Policy Research
, with Mark Weisbrot
. He previously was a senior economist at the Economic Policy Institute
and an assistant professor of economics at Bucknell University
. He has a Ph.D. in economics from the University of Michigan
.
Since 1996 Baker has been the author of a weekly online commentary on economic reporting. The Economic Reporting Review was published from 1996 to 2006; subsequently he has continued this commentary on his weblog Beat The Press, which was formerly published at The American Prospect
, but is now located at the CEPR website.
(B.A., 1981), the University of Denver
(M.A., 1983) and the University of Michigan
(Ph.D.). As a grad student at the University of Michigan, Baker participated in, and was arrested at, two sit-ins protesting Rep. Carl Pursell
's votes for military aid to the Contras
. In 1986, Baker defeated Donald Grimes in the Democratic primary and ran unsuccessfully against Pursell to represent Michigan's second Congressional district.
Baker wrote his thesis on consumption theory. He argues that analyzing consumption
requires categorizing objects, which cannot be done using only physical characteristics. The words for objects must be used, e.g., chair. These words imply socially understood uses, which define the object, e.g., a chair is used to sit on. Individuals have preferences over these uses of objects. This is at odds with consumption theory, which makes no assumptions about how individuals derive utility from objects. Baker also argues that objects' use values change with their social context, rejecting consumption theory's claim that consumption is private, and not influenced by society.
in 1999, Baker was a senior economist at the Economic Policy Institute
and an assistant professor of economics at Bucknell University
. "He has also worked as a consultant for the World Bank
, the Joint Economic Committee of the U.S. Congress, and the OECD's Trade Union Advisory Council."
From 1996 to 2006 Baker was the author of a weekly online commentary on The New York Times
' and The Washington Post
' s economic reporting. From 2006 he continued this commentary on the weblog Beat The Press, where he critiques economic reporting in the leading broadsheets, NPR
and other mainstream news sources.
economist Robert Shiller
, Baker was among the first economists to assert that there was a bubble in the US housing market
in 2002, well before its peak in late 2005 and one of the few economists to predict that the collapse of this bubble must lead to recession, although he did not project the specific behavior of the bubble's movement or its duration before collapse. He has been critical of the regulatory framework of the real estate and financial industries, the use of financial instruments like CDO
s, and the incompetence and conflicting interests
of US politicians or regulators, such as Hank Paulson.
Baker opposed the US government bailout of Wall Street banks on the basis that the only people who stood to lose from their collapse were their shareholders and well-paid CEOs. Regarding any hypothetical, negative effects of not extending the bailout, he has explained, "We know how to keep the financial system operating even as banks go into bankruptcy and receivership," citing US government action taken during the S&L crisis of the 1980s. He has ridiculed the US elite for favoring it, asking, "How do you make a DC intellectual look less articulate than Sarah Palin being interviewed by Katie Couric
? That's easy. You ask them how failure to pass the bailout will give us a Great Depression
."
Media
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
macroeconomist and co-founder of the Center for Economic and Policy Research
Center for Economic and Policy Research
The Center for Economic and Policy Research is a progressive economic policy think-tank based in Washington, DC, founded in 1999. CEPR works on Social Security, the US housing bubble, developing country economies , and gaps in the social policy fabric of the US economy.According to its own...
, with Mark Weisbrot
Mark Weisbrot
Mark Weisbrot is an American economist, columnist and co-director, with Dean Baker, of the Center for Economic and Policy Research in Washington, D.C. As a commentator, he contributes to publications such as New York Times, the UK's The Guardian, and Brazil's largest newspaper, Folha de S...
. He previously was a senior economist at the Economic Policy Institute
Economic Policy Institute
The Economic Policy Institute is a 501 non-profit, liberal, nonpartisan think tank that seeks to broaden the public debate about strategies to achieve a prosperous and fair economy...
and an assistant professor of economics at Bucknell University
Bucknell University
Bucknell University is a private liberal arts university located alongside the West Branch Susquehanna River in the rolling countryside of Central Pennsylvania in the town of Lewisburg, 30 miles southeast of Williamsport and 60 miles north of Harrisburg. The university consists of the College of...
. He has a Ph.D. in economics from the University of Michigan
University of Michigan
The University of Michigan is a public research university located in Ann Arbor, Michigan in the United States. It is the state's oldest university and the flagship campus of the University of Michigan...
.
Since 1996 Baker has been the author of a weekly online commentary on economic reporting. The Economic Reporting Review was published from 1996 to 2006; subsequently he has continued this commentary on his weblog Beat The Press, which was formerly published at The American Prospect
The American Prospect
The American Prospect is a monthly American political magazine dedicated to American liberalism. Based in Washington, DC, The American Prospect is a journal "of liberal ideas, committed to a just society, an enriched democracy, and effective liberal politics" which focuses on United States politics...
, but is now located at the CEPR website.
Background
Baker graduated from Swarthmore CollegeSwarthmore College
Swarthmore College is a private, independent, liberal arts college in the United States with an enrollment of about 1,500 students. The college is located in the borough of Swarthmore, Pennsylvania, 11 miles southwest of Philadelphia....
(B.A., 1981), the University of Denver
University of Denver
The University of Denver is currently ranked 82nd among all public and private "National Universities" by U.S. News & World Report in the 2012 rankings....
(M.A., 1983) and the University of Michigan
University of Michigan
The University of Michigan is a public research university located in Ann Arbor, Michigan in the United States. It is the state's oldest university and the flagship campus of the University of Michigan...
(Ph.D.). As a grad student at the University of Michigan, Baker participated in, and was arrested at, two sit-ins protesting Rep. Carl Pursell
Carl Pursell
Carl Duane Pursell was a politician from the U.S. state of Michigan.Pursell was born in Imlay City, Michigan and graduated from Plymouth High School, Plymouth, Michigan, in 1951. He worked in his father's business and served in the United States Army from 1957 to 1959...
's votes for military aid to the Contras
Contras
The contras is a label given to the various rebel groups opposing Nicaragua's FSLN Sandinista Junta of National Reconstruction government following the July 1979 overthrow of Anastasio Somoza Debayle's dictatorship...
. In 1986, Baker defeated Donald Grimes in the Democratic primary and ran unsuccessfully against Pursell to represent Michigan's second Congressional district.
Baker wrote his thesis on consumption theory. He argues that analyzing consumption
Consumption (economics)
Consumption is a common concept in economics, and gives rise to derived concepts such as consumer debt. Generally, consumption is defined in part by comparison to production. But the precise definition can vary because different schools of economists define production quite differently...
requires categorizing objects, which cannot be done using only physical characteristics. The words for objects must be used, e.g., chair. These words imply socially understood uses, which define the object, e.g., a chair is used to sit on. Individuals have preferences over these uses of objects. This is at odds with consumption theory, which makes no assumptions about how individuals derive utility from objects. Baker also argues that objects' use values change with their social context, rejecting consumption theory's claim that consumption is private, and not influenced by society.
Career
Before co-founding the Center for Economic and Policy ResearchCenter for Economic and Policy Research
The Center for Economic and Policy Research is a progressive economic policy think-tank based in Washington, DC, founded in 1999. CEPR works on Social Security, the US housing bubble, developing country economies , and gaps in the social policy fabric of the US economy.According to its own...
in 1999, Baker was a senior economist at the Economic Policy Institute
Economic Policy Institute
The Economic Policy Institute is a 501 non-profit, liberal, nonpartisan think tank that seeks to broaden the public debate about strategies to achieve a prosperous and fair economy...
and an assistant professor of economics at Bucknell University
Bucknell University
Bucknell University is a private liberal arts university located alongside the West Branch Susquehanna River in the rolling countryside of Central Pennsylvania in the town of Lewisburg, 30 miles southeast of Williamsport and 60 miles north of Harrisburg. The university consists of the College of...
. "He has also worked as a consultant for the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
, the Joint Economic Committee of the U.S. Congress, and the OECD's Trade Union Advisory Council."
From 1996 to 2006 Baker was the author of a weekly online commentary on The New York Times
The New York Times
The New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...
The Washington Post
The Washington Post is Washington, D.C.'s largest newspaper and its oldest still-existing paper, founded in 1877. Located in the capital of the United States, The Post has a particular emphasis on national politics. D.C., Maryland, and Virginia editions are printed for daily circulation...
NPR
NPR, formerly National Public Radio, is a privately and publicly funded non-profit membership media organization that serves as a national syndicator to a network of 900 public radio stations in the United States. NPR was created in 1970, following congressional passage of the Public Broadcasting...
and other mainstream news sources.
Financial crisis of 2007–2009
Basing his outlook on house-price data-sets produced by the US government and YaleYale University
Yale University is a private, Ivy League university located in New Haven, Connecticut, United States. Founded in 1701 in the Colony of Connecticut, the university is the third-oldest institution of higher education in the United States...
economist Robert Shiller
Robert Shiller
Robert James "Bob" Shiller is an American economist, academic, and best-selling author. He currently serves as the Arthur M. Okun Professor of Economics at Yale University and is a Fellow at the Yale International Center for Finance, Yale School of Management...
, Baker was among the first economists to assert that there was a bubble in the US housing market
United States housing bubble
The United States housing bubble is an economic bubble affecting many parts of the United States housing market in over half of American states. Housing prices peaked in early 2006, started to decline in 2006 and 2007, and may not yet have hit bottom as of 2011. On December 30, 2008 the...
in 2002, well before its peak in late 2005 and one of the few economists to predict that the collapse of this bubble must lead to recession, although he did not project the specific behavior of the bubble's movement or its duration before collapse. He has been critical of the regulatory framework of the real estate and financial industries, the use of financial instruments like CDO
Collateralized debt obligation
Collateralized debt obligations are a type of structured asset-backed security with multiple "tranches" that are issued by special purpose entities and collateralized by debt obligations including bonds and loans. Each tranche offers a varying degree of risk and return so as to meet investor demand...
s, and the incompetence and conflicting interests
Conflict of interest
A conflict of interest occurs when an individual or organization is involved in multiple interests, one of which could possibly corrupt the motivation for an act in the other....
of US politicians or regulators, such as Hank Paulson.
Baker opposed the US government bailout of Wall Street banks on the basis that the only people who stood to lose from their collapse were their shareholders and well-paid CEOs. Regarding any hypothetical, negative effects of not extending the bailout, he has explained, "We know how to keep the financial system operating even as banks go into bankruptcy and receivership," citing US government action taken during the S&L crisis of the 1980s. He has ridiculed the US elite for favoring it, asking, "How do you make a DC intellectual look less articulate than Sarah Palin being interviewed by Katie Couric
Sarah Palin interviews with Katie Couric
The Sarah Palin Interviews with Katie Couric were a series of interviews of the 2008 U.S. Republican vice presidential nominee Sarah Palin conducted by CBS Evening News anchor Katie Couric. They were recorded and broadcast on television in several programs before the 2008 US presidential election....
? That's easy. You ask them how failure to pass the bailout will give us a Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
."
External links
Informational- CEPR bio
- Op-Eds and Columns
- Weblog: Beat The Press
- The Conservative Nanny State
- Dean Baker Economic Predictions
Media
- Dean Baker presentation on 2008-2009 economic trouble at Bucknell University
- Marketplace Public Radio (Audio): We Demand to See More Transparency, March 9, 2009
- C-SPAN's Book TV (Video): "Plunder and Blunder: The Rise and Fall of the Bubble Economy", January 27, 2009
- News Hour with Jim Lehrer (Video): "Massive Job Cuts Renew Calls fro Quick Action on Stimulus", January 26, 2009
- NPR's Fresh Air (Audio): "The Key to Economic Stimulus?", January 13, 2009
- Bill Moyers Journal (Video), August 8, 2008
- Dean Baker argues that the debate over the economy should not be over whether to regulate, but how in the Boston ReviewBoston ReviewBoston Review is a bimonthly American political and literary magazine. The magazine covers, specifically, political debates, literature, and poetry...
- Video (and audio) of debates & discussions involving Baker on Bloggingheads.tvBloggingheads.tvBloggingheads.tv is a political, world events, philosophy, and science video blog discussion site in which the participants take part in an active back and forth conversation via webcam which is then broadcast online to viewers...
- Dean Baker: Banks Could Be Big Winners of President Obama’s Foreclosure Prevention Program - video by Democracy Now!Democracy Now!Democracy Now! and its staff have received several journalism awards, including the Gracie Award from American Women in Radio & Television; the George Polk Award for its 1998 radio documentary Drilling and Killing: Chevron and Nigeria's Oil Dictatorship, on the Chevron Corporation and the deaths of...