'There’s more lobster out there right now than anyone knows what to do with, but Americans are still paying for it as if it were a rare delicacy.' Also, from 2004: David Foster Wallace goes to the Maine Lobster Festival. Via)
John Green: "Why Are Americans Health Care Costs So High?" A quick, handy little overview of common misconceptions on the US healthcare system. (SLYT)
"We condition the poor and the working class to go to war. We promise them honor, status, glory, and adventure. We promise boys they will become men. We hold these promises up against the dead-end jobs of small-town life, the financial dislocations, credit card debt, bad marriages, lack of health insurance, and dread of unemployment. The military is the call of the Sirens, the enticement that has for generations seduced young Americans working in fast food restaurants or behind the counters of Walmarts to fight and die for war profiteers and elites."-- War is Betrayal. Persistent Myths of Combat, an essay by Chris Hedges of Truthdig. Responses within. [more inside]
Payday lenders target the working poor with quick loans at exorbitant interest rates. When a ballot initiative drive in Missouri threatened this lucrative business, the payday lenders fought back with everything they had--their money. A ProPublica report, published yesterday in the St. Louis Post-Dispatch documents the web of secret donations and intimidation that smothered the reform movement.
Bankrupt By Beanies - A short documentary about what happened to people after the "Beanie Babies as investments" fad wore down. (YouTube, 8:30)
Of all the occupational golden ages to come and go in the twentieth century—for doctors, journalists, ad-men, autoworkers—none lasted longer, felt cushier, and was all in all more golden than the reign of the law partner. Noam Schreiber on The Last Days of Big Law: You can't imagine the terror when the money dries up. Former law partner Steven J. Harper, author of The Lawyer Bubble, believes the profession to be in existential crisis. Another former partner weighs in. Libertarian law professor Richard Epstein presents a more sanguine view.
Five Reasons Why I Am Not An “Artist”, an essay by Tom Ellard (formerly of 1980s industrial electropop band Severed Heads and now an academic and media art practitioner in Australia; previously), touching on areas such as artificial divisions between art and technical practice, the politics of the role of the artist and the conflict between creative exploration and artistic recognition and success.
As machines take over more of our work, we are going to have to find other ways of letting people fulfil these human needs. Forcing them to send 500 CVs out every week is not a good start. In stripping out inefficiencies and pushing digital goods to near-free prices, the Internet kills middle-class jobs. Digitization has already largely de-monetized academia, film, music, journalism, and lots more besides. More industries will feel the pain, including the legal professions, real estate, insurance, accounting, and the civil service, all of which are built on inefficiency, and all of which will be stripped of jobs in the years to come. As it becomes clear to those with established positions that there are no jobs for their children, they’ll push for a more radical solution.
"The country has cheaper medical care, smarter children, happier moms, better working conditions, less-anxious unemployed people, and lower student loan rates than we do. And that probably will never change." In The Atlantic, a comparison of some of the socio-economic aspects of Finland and the USA. [more inside]
This month, citizens and planning officials in Cape Cod, Mass., will get a chance to do what almost no one else in the U.S. is allowed to do when deciding whether to approve or reject a big-box retail development: weigh the likely impacts on the region’s economy. [more inside]
Recession prompted 'unprecedented' fall in wages - Wages have fallen more in real terms in the current economic downturn than ever before, according to a report. On top of the rising cost of living, a third of workers who stayed in the same job saw a wage cut or freeze between 2010 and 2011, said the Institute for Fiscal Studies (IFS). "The falls in nominal wages... during this recession are unprecedented," said Claire Crawford from the IFS. Labour said the figures showed there was a "living-standards crisis".
Ha-Joon Chang on why separating politics from economic policies is bad for democracy. What free-market economists are not telling us is that the politics they want to get rid of are none other than those of democracy itself. When they say we need to insulate economic policies from politics, they are in effect advocating the castration of democracy. (Related FPP.)
"One might think that, once we know something is computable, how efficiently it can be computed is a practical question with little further philosophical importance. In this essay, I offer a detailed case that one would be wrong. In particular, I argue that computational complexity theory---the field that studies the resources (such as time, space, and randomness) needed to solve computational problems---leads to new perspectives on the nature of mathematical knowledge, the strong AI debate, computationalism, the problem of logical omniscience, Hume's problem of induction, Goodman's grue riddle, the foundations of quantum mechanics, economic rationality, closed timelike curves, and several other topics of philosophical interest. I end by discussing aspects of complexity theory itself that could benefit from philosophical analysis."
The Austerity Delusion: Why a Bad Idea Won Over the West. "Austerity is a seductive idea because of the simplicity of its core claim -- that you can’t cure debt with more debt. This is true as far as it goes, but it does not go far enough. Three less obvious factors undermine the simple argument that countries in the red need to stop spending. The first factor is distributional, since the effects of austerity are felt differently across different levels of society. The second factor is compositional; everybody cannot cut their way to growth at the same time. The third factor is logical; the notion that slashing government spending boosts investor confidence does not stand up to scrutiny."
Trials by Ordeal were a method of determining guilt or innocence by putting the accused through various torturous experiences. Today these approaches are frequently-mocked and banned almost everywhere, though Sassywood remains common in Liberia. However, economist Peter Leeson argues that trial by ordeal may have been a very effective way of dispensing justice, especially when courts and juries were expensive or broken. According to the paper [PDF], a superstitious belief in iudicium Dei, or the justice of God, may have discouraged the guilty from ordeals, while tilting the scales in favor of the innocent - echoes of the practice persist today in swearing on a Bible. Even Sassywood [pdf] may be better than Liberia's broken justice system.
Keith Hennessey is a former economic aide to George W. Bush. And he wants you to know that George W. Bush is smarter than you.
"All this gives us one way to understand the Lannister zeal for power in King's Landing. In effect, Tywin is attempting to execute a debt-for-equity swap since his debts aren't actually recoverable. But that simply underscores the extent to which the loans to the Iron Throne are, themselves, worthless as financial assets." Economics of Ice & Fire, Part I and Part II (minor dialogue spoilers for S03E03) [more inside]
"Gold's crash this weekend is, as Oprah might say, a teachable moment. Crashes like this are a good way to find out how markets work. It's like a game of financial Clue, a way to keep sharp your skills of deduction. You don't have to be a stock investor or a math whiz to figure it out, either – you just have to have a good grasp of news and human psychology." - the Guardian on this week's crash in gold commodity prices.
"Trusting your child with someone else is one of the hardest things that a parent has to do — and in the United States, it’s harder still, because American day care is a mess. About 8.2 million kids—about 40 percent of children under five — spend at least part of their week in the care of somebody other than a parent. Most of them are in centers, although a sizable minority attend home day cares.... In other countries, such services are subsidized and well-regulated. In the United States, despite the fact that work and family life has changed profoundly in recent decades, we lack anything resembling an actual child care system. Excellent day cares are available, of course, if you have the money to pay for them and the luck to secure a spot. But the overall quality is wildly uneven and barely monitored, and at the lower end, it’s Dickensian."
"Maybe it's a sore point: your field should have an answer (people think you do) but there isn't one yet. Perhaps it's simple to pose but hard to answer. Or it's a question that belies a deep misunderstanding: the best answer is to question the question."
A dozen ultraleft voluntarists arguing about shower schedules is a noise complaint; 120,000 downwardly mobile yuppies doing it out of necessity is a substratum. The material realities of declining wages, ballooning debt, and skyrocketing rents at the core of the neoliberal city have conspired to herd young people into unprecedentedly dense, poor, and precarious kinds of living arrangements. - Andrew Fogle on how the economic crisis is changing how people live together.
The Locust Economy
I was picking the brain of a restauranteur for insight into things like Groupon. He confirmed what we all understand in the abstract: that these deals are terrible for the businesses that offer them; that they draw in nomadic deal hunters from a vast surrounding region who are unlikely to ever return; that most deal-hunters carefully ensure that they spend just the deal amount or slightly more; that a badly designed offer can bankrupt a small business. He added one little factoid I did not know: offering a Groupon deal is by now so strongly associated with a desperate, dying restaurant that professional food critics tend to write off any restaurant that offers one without even trying it.[more inside]
Recent posts here, here and here discuss a growing sense that climate change is going to be worse than we thought. A link to Charles Stross's musing on a future that included climate change was discussed on MeFi here. But Kim Stanley Robinson asks a slightly different question: If capitalism is the driver of climate change, what happens next? What does post-capitalism look like?
The Forces Of The Next 30 Years - SF author and Mefi's Own Charles Stross talks to students at Olin College about sci-fi, fiction, speculation, the limits of computation, thermodynamics, Moore's Law, the history of travel, employment, automation, free trade, demographics, the developing world, privacy, and climate change in trying to answer the question What Does The World Of 2043 Look Like? (Youtube 56:43)
Economists and the theory of politics - "why unions were often well worth any deadweight cost" [more inside]
Mike Merrill decided to sell shares in his life. He now has 160 shareholders who can tell him what to do.
seaQuest: what if we could learn to live on/underneath the oceans (or in orbit)? [previously(er)] [more inside]
A paper from Justin M. Rao and David H. Reiley in the Journal of Economic Perspectives (full-text pdf) about spam economics. [more inside]
A brief history of the Chinese growth model [note: not so brief] - "the Chinese development model is an old one, and can trace its roots at least as far back as the 'American System' of the 1820s and 1830s. This 'system' was itself based primarily on the works of the brilliant first US Secretary of the Treasury Alexander Hamilton..." [more inside]
And that's a bad idea. Much of standard group behavior data in Sociology/Economics/Psychology is based on Americans. Which don't seem (contrary to universal assumptions) to be shared by a lot of the World.
A Renaissance in Economics The American President Ronald Reagan once quipped, “The nine most terrifying words in the English language are, ‘I’m from the government and I’m here to help.’” I get the same shivers when someone introduces themselves as an economist.
“LEGO® sets are not cheap toys. They are made to the highest standards and have the price to go along with it. However, in the past couple decades it seems that the price of LEGO sets has become outrageous. New sets can sell for up to $500 retail and old sets can sell for twice that in a secondary market. This is a children’s toy, right? There is no way LEGO sets have always been this expensive; it is just molded plastic. Let’s take a look at the history of LEGO pricing and try to figure out what is going on.”
House of Cards is a new original "TV" series that is not destined for any TV distribution channel. Instead, it was developed by, and is only available through, Netflix. Netflix posted the entire first "season," 13 1-hour episodes, on Friday. (Is this the new thing?) Some of us, cough, watched the whole thing. [more inside]
Last week a debate erupted in the US comedy community between stand-up comedians (like Kurt Metzger and Mike Lawrence) and the Upright Citizens Brigade Theater about the fact that at none of their three theaters pay any of their performers (including UCBEast in New York, which often has Saturday Night Stand-up shows). Other comics such as Chris Gethard eloquently came to their defense. This week two of the founders Matt Besser and Matt Walsh released an episode of Besser's pocast Improv for Humans that goes into details about the club's philosophy, including why they have never taken any money from founding and running the theater. [more inside]
Yesterday, the Nielsen Company released a report showing that same-sex partnered households in America shop about 16% more than the average US household. Broken down into categories, Nielsen observes that gay couples drink a ton, while lesbian couples eat an awful lot of cottage cheese.
Philip Pilkington writes for naked capitalism: The Origins of Neoliberalism Part I: Hayek's Delusion
Hayek’s entire ideology and career had begun to come apart in the 1930s. His theories were shown to be inconsistent in the academic journals of the time and the practical implications of those theories had shown themselves to be both discredited and dangerous. A man in such a position only has two choices: he can either completely re-evaluate his ideas which, if they were held with unshakeable conviction and constituted a core component of his emotional make-up, as seems to have been the case with Hayek, would have likely resulted in a mental collapse; or, alternatively, he can engage in a massive repression, shut out reality and construct around himself a fantasy world.[more inside]
"We decided to go on an adventure through the financial statements of one bank [Wells Fargo], to explore exactly what they do and do not show, and to gauge whether it is possible to make informed judgments about the risks the bank may be carrying. We chose a bank that is thought to be a conservative financial institution, and an exemplar of what a large modern bank should be."
Stimulus or Stymied?: The Macroeconomics of Recession: An American Economic Association panel discussion on the Great Recession between four leading economists - Paul Krugman (Princeton), Valerie Ramey (UCSD), Harald Uhlig (Chicago) and Carlo Cottarelli (IMF), chaired by Brad DeLong (Berkeley).
Unpacking the Beauty Premium, Borland J & Leigh A, unpub., 2013.
The first Australian study of the financial return to physical attractiveness finds its worth an astounding $32,150 in annual salary, with men of above average looks typically commanding $81,750 compared to $49,600 for men with below-average looks.
Men with below-average looks were 15 per cent less likely than normal to be employed and were typically employed for a 9 per cent lower wage. They were also less likely to be married and less likely to married to a woman of high income.