The Moral Dimensions of Ditching a Mortgage: University of Arizona law professor Brent T. White has written a provocative new paper (pdf) that urges homeowners with "underwater" mortgages" to walk away by strategically defaulting on their mortgage debts. [more inside]
posted by jonp72 on Nov 30, 2009 - 162 comments

Doug Rushkoff throws down the gauntlet in his “Radical Abundance” speech at the O’Reilly Web 2.0 conference. Some highlights of the speech: “The only real possible competition to Google and their economy of faux openness would be peer-to-peer exchange.” “As a result of all this freedom the abundance of genuine creative output is declining. We are actually getting the scarce market place demanded by our currency legacy system. The same way the early Renaissance got a scarcity by killing off half the people with the plague.” Some Alternatives: 1: The development of a digital culture that actually respects the labor of individuals. 2: The creation of new modes of currency based in abundance rather than scarcity.
posted by joetrip on Nov 22, 2009 - 113 comments

Soros lectures
You can slog through the video, but I preferred the transcripts 1 | 2 | 3 | 4 | 5 [more inside]
posted by kliuless on Nov 21, 2009 - 13 comments

Silicon Sweatshops is a five-part investigation of the supply chains that produce many of the world’s most popular technology products, from Apple iPhones, to Nokia cell phones, Dell keyboards and more. The series examines the scope of the problem, including its effects on workers from the Philippines, Taiwan and China. It also looks at a novel factory program that may be a blueprint for solving this perennial industry problem.
posted by Joe Beese on Nov 19, 2009 - 9 comments

The History of Economic Thought Website contains a wealth of information on the many schools of thought in the history of economics and the issues they grappled with.
posted by moorooka on Nov 18, 2009 - 13 comments

On pinball's downfall; draft Scrabble; strategies for choosing a seat; visiting our old friend, swoopo.com; and meatball theory: various and sundry economical, game theoretical, and miscellaneous morsels from the folks at Cheap Talk.
posted by cortex on Nov 18, 2009 - 53 comments

Kiva transparency commentary: "I suspect that most Kiva users do not realize this." The controversy is summarized by the NY Times. [more inside]
posted by kmennie on Nov 16, 2009 - 78 comments

US Crude Oil Production vs. Rock Music Quality, by year. Is Rockism the cultural equivalent of Hubbert Peak Theory?
posted by acb on Nov 11, 2009 - 41 comments

Asset inflation, price inflation, and the great moderation
Economists as penance have been trying to locate the origins of the great chain of causation that has led us to our present situation -- the worrying conclusion is that problems remain -- imbalances precipitated by a labour supply shock [1,2] and/or (the rise of) machines [1,2] have not gone away and continue to persist in decimating the ('developed world's) middle class, as evidenced by high and rising unemployment, which has led to a crisis in central banking itself. [more inside]
posted by kliuless on Oct 31, 2009 - 31 comments

Is California finished?
posted by shakespeherian on Oct 28, 2009 - 110 comments

The Freakonomics follow up, Superfreakonomics, contains a chapter on climate change that lives up to the best selling contrarian style of authors Steven Levitt and Stephen Dubner. However actual climate scientists were not pleased with the chapter. According to the Union of Concerned Scientists, the book "repeats tired global cooling myths," "unfairly trashes climate models" and "advocates rolling the dice on unproven technology" among other faults. They have also been accused of misquoting climate scientist Ken Caldeira. Levitt and Dubner respond to their critics, Global Warming in SuperFreakonomics: The Anatomy of a Smear. [more inside]
posted by afu on Oct 18, 2009 - 128 comments

Information is stimulus, confusion is contraction.
posted by kliuless on Oct 18, 2009 - 15 comments

The Gervais Principle, Or The Office According to “The Office”. Warning: link may evoke baleful despair!
posted by East Manitoba Regional Junior Kabaddi Champion '94 on Oct 16, 2009 - 57 comments

Surprise, surprise. It's a girl - for the first time. Elinor Ostrom ("for her analysis of economic governance, especially the commons") and Oliver E. Williamson ("for his analysis of economic governance, especially the boundaries of the firm") have won the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2009.
posted by jfricke on Oct 12, 2009 - 42 comments

Most of Africa, India and the developing world depends on innovative and inventive people coming up with ways to make a living with no cash and next to no resources. Fritz Schumacher ( wiki ) was an internationally influential economic thinker with a professional background as a statistician and economist whose 1973 book "Small is beautiful" - Economics as if People Mattered; is among the 100 most influential books published since World War II ( Review ). There are links to several articles, Essays and Videos on the Schumacher Society webpage including the Essay "Buddhist Economics". He was a founder of the Charity Practical Action. ( Related 1; 2 )
posted by adamvasco on Oct 4, 2009 - 14 comments

The First Bank of the United States was Americas first attempt at forming a Central Bank. Inaugurated by Congress in 1791, it was followed by The Second Bank of the United States, which was dissolved in 1836.

And then The United States of America was without a Central Bank for 77 years. [more inside]
posted by Mutant on Oct 3, 2009 - 54 comments

Paul Krugman attacked professional macroeconomists (previously). John Cochrane, an economist at the University of Chicago, returns the favor, arguing that Krugman deeply misrepresents current economic ideas because he's abandoned economics as a "quest for understanding" in favor of trying to be the "Rush Limbaugh of the Left."
posted by shivohum on Sep 28, 2009 - 77 comments

Why is deflation far worse than inflation? After all, prices are falling, goods and services get cheaper, what's not to like? [more inside]
posted by Mutant on Sep 27, 2009 - 33 comments

First Zimbabwe formally abandoned their currency, then received assistance from The IMF, and now now we're seeing inflation in that nation easing to an acceptable rate of 0.04% per month. So it's fair to ask, is hyperinflation in Zimbabwe is a thing of the past? [more inside]
posted by Mutant on Sep 22, 2009 - 19 comments

Bin Laden's Reading List for Americans [more inside]
posted by up in the old hotel on Sep 15, 2009 - 50 comments

How Wal-Mart's values are shaping America's economy -- and why this is a very bad thing:

Around the time that the young Sam Walton opened his first stores, John Kennedy redeemed a presidential campaign promise by persuading Congress to extend the minimum wage to retail workers, who had until then not been covered by the law. Walton was furious. Now the goddamn federal government was telling him he had to pay his workers the $1.15 hourly minimum. Walton's response was to divide up his stores into individual companies whose revenues didn't exceed the $250,000 threshold. Eventually, though, a federal court ruled that this was simply a scheme to avoid paying the minimum wage, and he was ordered to pay his workers the accumulated sums he owed them, plus a double-time penalty thrown in for good measure. Wal-Mart cut the checks, but Walton also summoned the employees at a major cluster of his stores to a meeting. "I'll fire anyone who cashes the check," he told them.

Social mobility, income inequality and wealth disparities. [more inside]
posted by kliuless on Sep 7, 2009 - 54 comments

How Did Economists Get It So Wrong? - The Great Recession was the result not only of lax regulation in Washington and reckless risk-taking on Wall Street but also of faulty theorizing in academia. Can economists learn from their mistakes? (via mr & ev) [more inside]
posted by kliuless on Sep 3, 2009 - 50 comments

Robert Capps, Wired senior editor, has an article up called The Good Enough Revolution: When Cheap and Simple Is Just Fine. It explores what happens when an established product meets a competitor that has most of the features at fraction of the price. Think hi-fi vs MP3s, A-10 bombers vs Predator drones or landline vs Skype. [more inside]
posted by Harald74 on Sep 1, 2009 - 74 comments

TARP investments yield 15% returns. Almost trom the start, critics characterized the TARP program that first began under the Bush administration and that continued through early this year under President Obama as a taxpayer funded giveaway, while government officials insisted it was a long-term investment program whose initial costs would eventually turn a profit as economic recovery began. Now the NY Times reports that the program has already yielded $4 billion in profits, and a separate report reveals that related Federal Reserve loan programs aimed at economic stabilization have returned $14 billion in profits.
posted by saulgoodman on Aug 31, 2009 - 119 comments

Japan's opposition party, The Democratic Party of Japan (DPJ), is projected to win a landslide victory tomorrow, ending the 52-year reign of the Liberal Democratic Party (LDP). Furthermore, according to a survey conducted by the popular Asahi Shimbun newspaper, the DPJ could win a two-thirds majority, enabling them to roll legislation through the Diet unabated. Despite the projections, the two parties are still battling hard. Washington is following these elections very closely, because of the man who could be the next prime minister, Yukio Hatoyama. [more inside]
posted by Marisa Stole the Precious Thing on Aug 29, 2009 - 46 comments

How American Health Care Killed My Father After the needless death of his father, the author, a business executive, began a personal exploration of a health-care industry that for years has delivered poor service and irregular quality at astonishingly high cost. It is a system, he argues, that is not worth preserving in anything like its current form. And the health-care reform now being contemplated will not fix it. Here’s a radical solution to an agonizing problem. (via mr) [more inside]
posted by kliuless on Aug 18, 2009 - 144 comments

Bicycle Inflation in Paradise? Freakanomics looks at used bike prices in Portland. Interesting reading.
posted by fixedgear on Aug 17, 2009 - 135 comments

How the myth of Silicon Valley is really like a “gold rush.” Riches for some, “slavery” for many, says Toronto technology commentator Jesse Hirsh, who also takes aim at the ethic of waste built into Web ideology as expressed in Chris Anderson’s Free. (Video of presentation.) [more inside]
posted by joeclark on Aug 6, 2009 - 30 comments

Tyler Cowen on why it's OK to pay for sex [more inside]
posted by reenum on Jul 22, 2009 - 111 comments

There's no way we get all this stuff and everything is done fair and square and everyone gets treated right. A Chinese employee of Foxconn, entrusted with fourteen (maybe sixteen) prototype iPhones misplaced one before they could be shipped; what followed was his detainment and torture at the hands of company police, and his eventual suicide. Shanghaiist has confirmed the story. Fake Steve weighs in.
posted by littlerobothead on Jul 22, 2009 - 124 comments

The author of a new book on how rising oil prices will change America makes the claims that higher gasoline prices will make the country healthier and safer. Christopher Steiner asserts that, for every $1 that gasoline prices rise, obesity rates drop by 10% (as people walk more and eat out less). As for "safer", that comes in when high gasoline prices force police out of their cruisers and onto bicycles and foot patrols, where they can interact more closely with their communities. [more inside]
posted by acb on Jul 22, 2009 - 61 comments

The story of stuff and how it's currently being played out between the political economies of China and the US (G2 'Chimerica') in an illuminating Fallows vs. Ferguson cage match. [more inside]
posted by kliuless on Jul 19, 2009 - 5 comments

Rebuilding Something Better by Barack Obama: "this week, I'll be talking about how we give our workers the skills they need to compete... Part of this goal will be met by helping Americans better afford a college education. But part of it will also be strengthening our network of community colleges..." [more inside]
posted by kliuless on Jul 12, 2009 - 62 comments

Recently, John Michael Greer has been exploring a little known idea of the deceased economist E.F. Schumacher (a student of the oft-discussed Keynes). "Schumacher drew a hard distinction between primary goods and secondary goods. The latter of these includes everything dealt with by conventional economics: the goods and services produced by human labor and exchanged among human beings. The former includes all those things necessary for human life and economic activity that are produced not by human beings, but by nature. Schumacher pointed out that primary goods, as the phrase implies, need to come first in any economic analysis because they supply the preconditions for the production of secondary goods. Renewable resources, he proposed, form the equivalent of income in the primary economy, while nonrenewable resources are the equivalent of capital; to insist that an economic system is sound when it is burning through nonrenewable resources at a rate that will lead to rapid depletion is thus as silly as claiming that a business is breaking even if it’s covering up huge losses by drawing down its bank accounts." [more inside]
posted by symbollocks on Jul 10, 2009 - 14 comments

Paul Romer: A Theory of History, with an Application - "His economic theory of history explains phenomena such as the constant improvement of the human standard of living by looking primarily at just two forms of innovative ideas: technology and rules." (previously, via) [more inside]
posted by kliuless on Jul 3, 2009 - 11 comments

Monarchy vs. Democracy: "Was the change from monarchy to democracy a step backwards? In practical terms, there is no question: democracy has had tremendously bad effects compared to monarchy." [more inside]
posted by Marisa Stole the Precious Thing on Jun 26, 2009 - 110 comments

Economists Matthew Weinzierl (HBS) and Gregory Mankiw (Harvard) make a utilitarian case for a height tax. [more inside]
posted by Kadin2048 on Jun 24, 2009 - 123 comments

The Global Oneness Project is exploring how the radically simple notion of interconnectedness can be lived in our increasingly complex world. They travel the globe gathering stories from creative and courageous people who base their lives and work on the understanding that we bear great responsibility for each other and our shared world. [more inside]
posted by netbros on Jun 18, 2009 - 9 comments

Home taping didn’t kill music, says Ben Goldacre - but where did all the money go?
posted by Artw on Jun 11, 2009 - 168 comments

With all the dust that's been* riled up by Obama's nomination of Sonia Sotomayor (previously), everyone is suddenly taking an interest in Puerto Rico. A basic question that may come up is why we're there in the first place. Understanding that, we can see how the complicated relationship has played out between Puerto Rico, the US, and, most recently, the United Nations. Although the UN has urged the US to take steps towards establishing Puerto Rico's sovereignty, referendums held on the island have overwhelmingly preferred the status quo and the US has been indifferent at best. But independence activists, after a twenty-year decline, may be on the rise. The island's current governor, Luis Fortuño, is pro-statehood. But the whole issue has taken a back seat since plans have been made to fire 30,000 government workers, privatize some public services, and sell some the the government's US$3.2 billion debt. [more inside]
posted by krikkit261 on Jun 10, 2009 - 26 comments

Ecocomics: Where Graphic Art Meets Dismal Science. With such entries as "Superman, New Krypton, and Labor Unions" and "The Construction Industry in Comics."
posted by dersins on May 28, 2009 - 26 comments

It's Finished is a witty and erudite essay by MeFi lurker John Lanchester in The London Review of Books on how completely and utterly screwed the British economy is. In the process of laying out his case Lanchester touches on varied issues, such Scottish banknotes, why Alan Hollinghurst's phrase "tremendous, Basil Fawltyish lengths" is applicable to the reaction by the US and UK governments to the banking meltdown, the value destruction of corporate mergers, the invention of modern accounting, and why no one really knows how large a share of the failed banks is owned by governments.
posted by Kattullus on May 26, 2009 - 35 comments

Prelude to Federation - Like a neocolonial SEZ (or TAZ) Paul Romer, not to be confused with David, posits "less developed countries contract with capitalist nations to set up Hong Kong's for them... that we rethink sovereignty (respect borders, but maybe import administrative control); rethink citizenship (support residency, but maybe import voice in political affairs); and rethink scale (instead of focusing on nations, focus on cities—on city states like Hong Kong and Singapore)." cf. neocameralism [1, 2, 3] [more inside]
posted by kliuless on May 21, 2009 - 16 comments

Revisit the Beanie Baby Bubble with Les & Sue Fox's 1998 bestseller The Beanie Baby Handbook. [via]
posted by Horace Rumpole on May 15, 2009 - 55 comments

The Bulls vs. Bears? The incessant back and forth between equity market longs and shorts is well known to most retail investors via a variety of distribution channels; financial television, the print media, online news. But the really big market battle, one with the potential to impact the entire US economy, happens, as is usual in finance, just out of sight of retail eyes ... [more inside]
posted by Mutant on May 13, 2009 - 24 comments

Theory versus Statistics, Financial Economics Edition. "You can almost here the lament of this quant that the real math theory has been dead since 1980, and that it has all been applied and statistics ever since. It’s like Fischer Black was Kool Herc and Myron Scholes was Afrika Bambaataa, and they’d all go plug in their computers into lamp posts and do martingale representations in the streets and at house parties. And, of course, it was all ruined in 1979 when it went commercial." A response to The Last Temptation of Risk by Barry Eichengreen.
posted by chunking express on May 4, 2009 - 8 comments

Limited Purpose Banking -- for lending, investing, etc. -- Turn all financial firms into mutual funds: "All mutual funds would break the buck with one exception: cash mutual funds. These funds would strictly hold cash and be valued at $1 per share. Owners of these funds would write checks against their balances and never have to worry about a bank run. Fractional reserve banking and the FDIC would be history." [previously] [more inside]
posted by kliuless on May 3, 2009 - 15 comments

The second most powerful United States Senator admits, "And the banks -- hard to believe in a time when we're facing a banking crisis that many of the banks created -- are still the most powerful lobby on Capitol Hill. And they frankly own the place." [more inside]
posted by Joe Beese on Apr 30, 2009 - 55 comments

Keynes & Marx thought "that productivity would grow sufficiently to allow our needs to be met with very little labour," and that humankind's biggest preoccupation in the future would be leading lives of comfortable (or comparative) leisure. Obviously, that has not yet come to pass. But why?** Yochai Benkler (previously), for one, is working on it... [more inside]
posted by kliuless on Apr 25, 2009 - 37 comments