Category: A Rationale
Posted by: Admin
The most general and the most pervasive way I make sense of the world is through economics. Concepts inspired by the great economic thinkers and philosophers applied to business and life. Here are their stories and my stories......
See also my blog Eye2theLongRun
See also my blog Eye2theLongRun
This table gives an idea of the policy proposal differences between Obama and Romney
As printed in The Economist
As printed in The Economist
ECONOMICS page
Is America Becoming an Anti-Risk Welfare State?
Perils of Social Responsibility - Reread Friedman
Old age? Ronald Coase is still enlightening us at age 102...
Learning Economics from the Classics - 12 Months of Classic Papers
Economics from the Classics Series - Part 1 The Case for Free Trade
FINANCE page
Clues as to why forecasting is a hopeless endeavour
MUSIC page
Real or incidental?
LITERATURE page
That Apple
Is America Becoming an Anti-Risk Welfare State?
Perils of Social Responsibility - Reread Friedman
Old age? Ronald Coase is still enlightening us at age 102...
Learning Economics from the Classics - 12 Months of Classic Papers
Economics from the Classics Series - Part 1 The Case for Free Trade
FINANCE page
Clues as to why forecasting is a hopeless endeavour
MUSIC page
Real or incidental?
LITERATURE page
That Apple
ECONOMICS page
Murray Lender, Bagels & How Capitalism is Supposed to Work
Austerity - the nasty medicine that works.....provided you take it
Explaining the value of capitalism...
And we all pay to wind up another "marvellous co-operative" - annoying exits
FINANCE page
Why Smart People Fail to Beat the Market
Bull Market Characteristics
MUSIC page
James Brown Said It Loud
Music - save the brain without being bored by Sukoku
Murray Lender, Bagels & How Capitalism is Supposed to Work
Austerity - the nasty medicine that works.....provided you take it
Explaining the value of capitalism...
And we all pay to wind up another "marvellous co-operative" - annoying exits
FINANCE page
Why Smart People Fail to Beat the Market
Bull Market Characteristics
MUSIC page
James Brown Said It Loud
Music - save the brain without being bored by Sukoku
Category: BWG Training
Posted by: Admin
The second in our series Learning Economics from the Classics involves the by now famous example used by Milton Friedman in his book Free to Choose. The key message in this example involves the curious and in some senses astounding fact that something as complicated as making a pencil (this will become apparent when you read the presentation) is able to be achieved without any central authority, Commissar of pencils, “leader”, Committee of Direction, or any other like dictate.
Instead prices working in markets adjust supply and demand for each and every good and service required to make a pencil.
This is remarkable. It also indicates that the level of complexity required to manufacture something as simple as a pencil would certainly be well beyond any bureaucrat or government to achieve in a fashion which comes even close to that achieved through the coordinating mechanisms of pricing and markets.
Read I Pencil (Browser Back Button to return to site)
Instead prices working in markets adjust supply and demand for each and every good and service required to make a pencil.
This is remarkable. It also indicates that the level of complexity required to manufacture something as simple as a pencil would certainly be well beyond any bureaucrat or government to achieve in a fashion which comes even close to that achieved through the coordinating mechanisms of pricing and markets.
Read I Pencil (Browser Back Button to return to site)
08/05: Beyond Economics into Life
PRICE inflation remains relatively subdued in the rich world, even though central banks are busily printing money. But other types of inflation are rampant. This “panflation” needs to be recognised for the plague it has become.
Take the grossly underreported problem of “size inflation”, where clothes of any particular labelled size have steadily expanded over time. Estimates by The Economist suggest that the average British size 14 pair of women’s trousers is now more than four inches wider at the waist than it was in the 1970s. In other words, today’s size 14 is really what used to be labelled a size 18; a size 10 is really a size 14. (American sizing is different, but the trend is largely the same).
Take the grossly underreported problem of “size inflation”, where clothes of any particular labelled size have steadily expanded over time. Estimates by The Economist suggest that the average British size 14 pair of women’s trousers is now more than four inches wider at the waist than it was in the 1970s. In other words, today’s size 14 is really what used to be labelled a size 18; a size 10 is really a size 14. (American sizing is different, but the trend is largely the same).
Interview from Barrons......
By VITO J. RACANELLI
Niall Ferguson, economic and financial historian, sees parallels between the U.S. now and the mid-20th-century U.K.
In his latest book, Civilization, The West and the Rest, the economic and financial historian Niall Ferguson argues that Western civilization's rise to global dominance over the past 500 years was due mainly to six killer apps, as he calls them: competition, science, rule of law, modern medicine, consumerism, and the work ethic.
While "the Rest" lacked these concepts, they might not for much longer, as emerging markets are quickly catching up. Someday, they could even surpass the West. (On May 22 and 29, PBS will air a program based on Civilization.)
By VITO J. RACANELLI
Niall Ferguson, economic and financial historian, sees parallels between the U.S. now and the mid-20th-century U.K.
In his latest book, Civilization, The West and the Rest, the economic and financial historian Niall Ferguson argues that Western civilization's rise to global dominance over the past 500 years was due mainly to six killer apps, as he calls them: competition, science, rule of law, modern medicine, consumerism, and the work ethic.
While "the Rest" lacked these concepts, they might not for much longer, as emerging markets are quickly catching up. Someday, they could even surpass the West. (On May 22 and 29, PBS will air a program based on Civilization.)
Category: Environmental
Posted by: Admin
Chiquita has tried hard to be good—and got no credit for it.
Sometimes you bend over backwards to please, but still get nowhere. That is what appears to have happened to Chiquita Brands, an American firm which is one of the world’s biggest suppliers of bananas and other fruit. Despite accommodating eco-warriors, social activists and unions, it has found little reward.
How China made its great leap forward.
Some observers praise its 'state-led capitalism.' But the truth is that leaders, starting with Deng Xiaoping, loosened Beijing's control.
By Ronald Coase and Ning Wang
China's post-Mao market transformation is one of the most dramatic and momentous events of our time. It has lifted hundreds of millions out of extreme poverty, freed one fifth of humanity from ideological radicalism, revived one of the oldest civilizations, and inspired all of us to explore the benevolence of the market.
Yet capitalism as currently practiced in China suffers a severe failing: the lack of a marketplace for ideas. China's market transformation flourished at the ground level without much help from Beijing—contrary to its leadership's claims. But the free flow of ideas has faltered. Until that changes, China will never reach its full potential.
Some observers praise its 'state-led capitalism.' But the truth is that leaders, starting with Deng Xiaoping, loosened Beijing's control.
By Ronald Coase and Ning Wang
China's post-Mao market transformation is one of the most dramatic and momentous events of our time. It has lifted hundreds of millions out of extreme poverty, freed one fifth of humanity from ideological radicalism, revived one of the oldest civilizations, and inspired all of us to explore the benevolence of the market.
Yet capitalism as currently practiced in China suffers a severe failing: the lack of a marketplace for ideas. China's market transformation flourished at the ground level without much help from Beijing—contrary to its leadership's claims. But the free flow of ideas has faltered. Until that changes, China will never reach its full potential.
Category: BWG Training
Posted by: Admin
The Case for Free Trade
The first of “Learning Economics from the Classics” involves free trade. In my experience a large number of people think they understand what free trade is but, in fact and as evidenced by some of the arguments I hear, they do not. This paper sets out the case very clearly and is fundamental to the understanding of almost all economics.
While economists differ on a number of things by far the majority of them agree that free trade is beneficial.
Read The Case for Free Trade (Browser back button to return to site)
The first of “Learning Economics from the Classics” involves free trade. In my experience a large number of people think they understand what free trade is but, in fact and as evidenced by some of the arguments I hear, they do not. This paper sets out the case very clearly and is fundamental to the understanding of almost all economics.
While economists differ on a number of things by far the majority of them agree that free trade is beneficial.
Read The Case for Free Trade (Browser back button to return to site)
