Cleveland has just opened its first casino with great fanfare after a great deal of debate on the morality of the gambling, and there have been long lines of people waiting to get in. I don’t really see gambling as a moral issue because there does not seem to be anything intrinsically wrong with people betting on random outcomes as a means of generating pleasure and excitement. [Read more…]
I am sick to death of hearing about the Facebook IPO. Although I was one of the earliest people to create a Facebook account (and it still exists) I abandoned it a long time ago and do not even respond to friend requests anymore. I have thought seriously about closing it altogether but refrained from doing so because on occasion it has enabled long-lost friends to find me. [Read more…]
TED talks are well known to policy wonks and geeks. I find many of them quite interesting and have linked to them. But while many people know of them, not so many know that the audience at TED conferences tend to be the well-heeled because it is for members only and the cost of attending can be quite high. [Read more…]
I do not directly trade in stocks although like anyone with a retirement account, someone is trading on the stock market with my savings. My lack of interest may be related to my lack of interest in gambling generally and to my lack of a desire to make more money. I have a job that pays me enough for my needs and that is enough. My main interest in the financial world is more on the macro side, to understand how it impacts the political and social worlds. But the recent global financial turmoil has resulted in me learning more about the world of high finance than I ever wanted. [Read more…]
One of the problems of capitalism (at least I see it as a problem) is that its only fiduciary duty is to the shareholders. In other words, its business practices have to have the prime purpose of maximizing the returns to its investors, consistent with the existing laws. This makes sense, in a narrow way. After all, the shareholders are the ones who provide the money and in any large public company, they will constitute a varied group that has diverse interests. The only thing that they can be guaranteed to have in common is the desire for a good return on their investments. [Read more…]
Whenever I travel on work, as I did last weekend for a conference, the peculiarities of the pricing of items associated with hotels and airlines strike home.
Like a lot of people, I was annoyed when airlines started charging extra for meals, checking baggage, and so on when they used to be ‘free’ (i.e., already included in the ticket price). But after some thought, I think that this new policy makes sense. The practice of bundling everything into one price was introduced at the dawn of airline travel but that was a different time. After all, when we travel long distance by train or bus we do not expect to get meals as part of the ticket price. Why should air travel be different? [Read more…]
All those governments in Europe who thought that it was a great idea to combat the recession by imposing drastic austerity measures and balancing their budgets by squeezing the poor, labor, and middle classes are taking well-deserved drubbings. Yesterday, the governments of France and Greece joined that of the Netherlands, Spain, Portugal, and Denmark in getting kicked out of office. [Read more…]
One of the mysteries of governmental responses to the current financial crises in the US and Europe has been the call for more austerity and belt tightening, even at the risk of social turmoil. One would think that the natural tendency for policy makers fighting a depressed economy is for increased government spending to stimulate employment and growth. And yet we hear endless blathering about the importance of balancing budgets and closing deficits, by which is meant cutting social programs that benefit the majority rather than cutting spending on defense or raising taxes on the wealthy. [Read more…]