SuperFreakonomics---Uncomfortable to Read and discuss in mixed company...

I am reading SuperFreakonomics right now...There are sections of the book that are uncomfortable to talk about in mixed company or with students. andI will not be discussing several of the premises with students (you will have to read it to find out).  Many "Professional" Economists are panning this book for a variety of reasons.  They consider it to be "economics lite".  I am enjoying most of it, though.   It raises many questions about generally accepted "facts" or circumstances and just asks people to look at problems through a different lense.  This is what I find attractive about studying economics---it truely is a discipline that asks you to question everything. 

Something I did not know before reading SuperFreakonomics:

 "Today, when you admire old New York brownstones and their elegant stoops, rising from street level to the second-story parlor, keep in mind this was a design necessity, allowing a homeowner to rise above the sea of horse manure"

Small, I know, but it is something I always wonder about when I watch Law and Order and othe shows/movies filmed in New York City.

The Values Question...What Choice Would You Make???

A most excellent opinion piece today in the New York Times by David Brooks.  It makes no judgements about the merits or demerits of healthcare reform but it's inevitable impact on the future of the US economy/society.  I especially like his use of a basic economic concept we learn in class the first day---Trade-offs that result in opportunity costs.  This paragraph strikes me as illustrative of this important concept:

"Reform would make us a more decent society, but also a less vibrant one. It would ease the anxiety of millions at the cost of future growth. It would heal a wound in the social fabric while piling another expensive and untouchable promise on top of the many such promises we’ve already made. America would be a less youthful, ragged and unforgiving nation, and a more middle-aged, civilized and sedate one.We all have to decide what we want at this moment in history, vitality or security..."

What choice would you make?

Watch Unemployment Increase Before Your Eyes...

Thanks to Mario Garza for this link...Nice Adobe Flash graphic that shows couty by county the change in the Unemployment Rate in the US.  It only goes to September when the rate was "only 8.5%.  SCARRY but worth a look...

Advice From Grandma

Excellent article by Thomas Friedman.  I dont always agree with him and I am uncomfortable with his apparent fascination with authoritarian power as a tool to get major policies implemented.  Perhaps I am misreading him in that respect.  Regardless, this column hits on many of the things I think and include in my lectures.  The final paragraph sums it up for me:

"The standard answer is that we need better leaders. The real answer is that we need better citizens. We need citizens who will convey to their leaders that they are ready to sacrifice, even pay, yes, higher taxes, and will not punish politicians who ask them to do the hard things. Otherwise, folks, we’re in trouble. A great power that can only produce suboptimal responses to its biggest challenges will, in time, fade from being a great power — no matter how much imagination it generates."

I would not be adverse to paying more in taxes IF I thought for a minute that 30% to 50% (I am not alone) of it would not be wasted as I believe it is right now.  I want a politician that will show ME some restraint BEFORE they ask me to pay more taxes.  Is that asking too much?

"Man Bites Dog" Front Page Story in New York Times...FINALLY!!

An EXCELLENT front page article in todays New York Times on the National Debt and the potential financial ticking time bomb it is.  If you have taken AP Macroeconomics or are taking it now, the MOST of the discussion will be familar to you.  This issue is not, in my opinion, taken seriously enough by the public.  Both political parties are party to this problem so there is enough blame to go around.  We will not be able to grow our way out of the debt, at least not in the next 5 to 10 years. I believe we will have tepid economic growth because we have reached the end of your last significant Aggregate Supply shock (1990's to early 2000's).  This is the last time we had a increase in our productive capacity due to the leaps in technology, communication, transportation, fiber optic cable,, etc that vastly increased our productivity.  We seem to have milked that for all it is worth.  We will have marginal increases in productive capacity but not enough to sustain the increase in population and the need to create 150,000 plus jobs a month to keep up with new entrants into the job market.  WHERE IS THAT NEW POSITIVE AGGREGATE SUPPLY SHOCK GOING TO COME FROM?  Opinions???

The Lexus and the Olive Tree...

A picture is worth a thousand words!  A woman taking a break from very labor intensive work to talk on her cell phone.  Who is she talking to?  Friends, family, checking the latest world market price for the good they are harvesting, or all of these?  It reminds me of Thomas Friedman's book "The Lexus and the Olive Tree" and the emergence of technology and how it clashes (or complements(?) ) with traditional economies as they exist today.   Is this good for developing countries or does it theaten the "ways" of traditional societies that sociologists/anthropoligists decry? Would substituting Capital for Labor improve their lives/culture/way of life or make it worse?  Are we qualified to even ponder the question because we look at it through the prism of our "Western-orientated" lense? 

Economic explaination of the Tuition "Crisis" in California---Complete with Supply and Demand Graph Illustration---Life is GOOD!!!

Click on the Title above to go to article...

The National Debt is NOT a big issue and should have no influence on Stimulus Debate...

Paul Krugman suggests that the US National Debt is not excessive (not desirable, but not excessive) relative to other countries and should not be the over-riding consideration in considering a NEW fiscal stimulus bill...Perhaps he is correct considering the experience of other countries who have a MUCH higher Debt-to-GDP ratio...

Which Industries Spend More as a Percentage of Sales on Reseach and Development?

The healthcare industry, as a whole, puts a larger percentage (in terms of total sales) of capital back into research and development than just about every other major industry.  This is an area where the U.S. still maintains a Comparative Advantage (and HERE) relative to the rest of the world.  Are we (politicians/policy-makers/industry) doing enough to make sure it stays this way?... 

From the Department of Odd Marketing...

This restaurant just opened in Keller, Tx.  It is only blocks away from our administration building where we go for most of our staff development.  I am guessing this will be our default place to go to lunch.  It will complement our general sense of feeling for the training we recieve....:)

Which Administrations Are The Most Prolific Deficit Spenders?? Guess Again...

Aid: What Really Works?

Aid: What Really Works?

The Difficulty of Economic Forecasting When Politics Is Involved...

My New Passion---Supporting Rwandan Women Through Entrepreneurship and Social Enterprise...

Last week Mr. Patty's Central Impact group, aided by Karen Kelly (a terrific and supportive parent/activist), put on a great forum with representatives of CARE INTERNATIONAL as guest speakers. I was moved by the message of improving the lives of people in developing countries through market principles and micorfinancing. I did a little research and found a wonderful non-profit group that is putting market principles to work and improving lives through entrepreneurship and social enterprise. I bought one of their products and now I am on fire to do what I can to support this group and the work they do. They are VERY committed to transparency and it you visit their site you will see a plethora of disclosures, tax forms, and business plans. Please visit IndegoAfrica.org and take a look. If you are moved to buy anything, I dont think you will be disappointed...

JWAC Recruitment Video...

This video is courtesy of Crosstimbers Community Church in Argyle. The Central chapter of the D/FW World Affairs Council (Junior World Affairs Council) used it as a recruitment tool for our organization. I think it is powerful and worth a look.