Economics
Good Will Hinton Interviews David Batstone of Not For Sale
by Will Hinton ()
Listen in as I interview David Batstone of Right Reality and the Not For Sale Campaign.
David and I discuss the problem of modern day slavery, what people can do to fight this problem, and the issue of ethical business practices. read more »
Good Will Hinton Interviews David Houle About The Shift Age
by Will Hinton ()
Listen in as I interview David Houle futurist and author of the book The Shift Age.
David and I discuss future trends including the democratization of information and media, why the traditional definition of "recession" is irrelevant, peak oil, alternative energy, the end of the age of "unlimited", and David's hope for the future.
"We will survive collectively or die individually"
"We should try to be the parents of our future rather than the offspring of our past" read more »
Good Will Hinton Interviews Bill Strickland about "Make the Impossible Possible"
by Will Hinton ()
Listen in to my interview with Bill Strickland, CEO of the Manchester Bidwell Corporation in Pittsburgh, Pennsylvania. Manchester Bidwell is an arts and job training organization in inner city Pittsburgh that Bill started in 1968.
Bill has a new book out, Make The Impossible Possible that I highly recommend. In light of my conversation with Andy Crouch earlier this week, I would say that Bill is a leading expert on "culture making". Every city needs a "Bill Strickland" who eschews conventional wisdom and just goes about the business of helping people and treating those who are often ignored with tremendous respect. read more »
Rep. Charles Rangel and Rent Control: Total Hypocrisy on Affordable Housing
by Will Hinton ()
In last week's New York Times, I found a fascinating article about Congressman Charles Rangel and newly released information about his home in New York. I was particularly interested because Rangel's home actually consists of four rent stabilized apartments in Harlem.
As many of you may not know what rent control and rent stabilization is, here is a quick primer. From Wikipedia: "Rent control refers to laws or ordinances that set price controls on the renting of residential housing. It functions as a price ceiling." Actually the original premise of rent control is founded upon good intentions; the idea being that in a city we should be able to provide a stock of affordable housing for lower income families. If only good intentions won the day!
So let's consider a number of things. How likely is it that Congressman Charles Rangel heads a low income family? Well, according to the NYTimes article, his net worth is somewhere between $566k and $1.2 million. Not Bill Gates worthy but certainly not low income. How did Rangel come to acquire not just one rent-stabilized apartment, but FOUR? Certainly there is some sort of income requirements in order to qualify for rent stabilized apartments? Nope. Actually there isn't. So how does one acquire one of these coveted apartments? According to my friends that live in New York City, there are three ways that one acquires a rent stabilized apartment: inheritance, by knowing someone, or by paying what is referred to as "key money" (which, while illegal, is not uncommon). And so how likely is it that low income families acquire rent stabilized apartments through these means? Almost never. read more »
David Brooks on The Great Seduction
by Will Hinton ()If you read nothing else this week, read David Brook's column today in the New York Times: The Great Seduction.
The loosening of financial inhibition has meant more options for the well-educated but more temptation and chaos for the most vulnerable. Social norms, the invisible threads that guide behavior, have deteriorated. Over the past years, Americans have been more socially conscious about protecting the environment and inhaling tobacco. They have become less socially conscious about money and debt. read more »
Carbon Ration Cards?
by Will Hinton ()I read today about a proposed plan in the UK that would require all adults to carry a carbon ration card.
"Under the scheme, everyone would be given an annual carbon allowance to use when buying oil, gas, electricity and flights. Anyone who exceeds their entitlement would have to buy top-up credits from individuals who haven't used up their allowance. The amount paid would be driven by market forces and the deal done through a specialist company."I absolutely agree that strong measures are going to have to be taken regarding energy consumption and stewardship of the Earth. But if there was ever a plan tailor-made for graft, corruption, and influence-peddling, this is it. I'm not sure how this plan uses "market forces" particularly since market forces will not determine what the initial carbon "entitlement" will be.
The Fallacy of Corporate Taxes
by Will Hinton ()I just looked through Drudge Report to see if there was anything new this weekend and found this report about a new tax proposal in California:
California state lawmakers are considering an unusual idea to solve the state's huge budget shortfall: Tax pornography.
The idea was proposed by a state assemblyman, and would impose a 25 percent tax on the production and sales of pornographic videos -- the vast majority of which are made in southern California.
It is unknown, however, how seriously lawmakers will take the idea or how the porn business would deal with the new tax. It is likely, though, that porm-makers would simply pass the cost along to consumers by making pornographic materials more expensive. read more »
A Little Perspective
by Will Hinton ()
Foreign Oil Dependency and Political Lunacy
by Will Hinton ()If you are like me, you are probably starting to feel some angst over the continuing rise is gas prices. My wife and I are discussing the idea of selling our cars to get more fuel efficient ones. I may even get a Vespa.
A large factor that is driving my concern is the growing realization that our government doesn't have a clue about what a real energy policy should look like. Unfortunately it appears that both parties simply want to demogogue and attempt to buy votes. read more »
Hillary Clinton: "OPEC Can No Longer Be A Cartel"
by Will Hinton ()Not that many politicians are innocent when it comes to demagoguery and "saying whatever it takes to win". But I did find Hillary Clinton's remarks about OPEC particularly over the top.
"We’re going to go right at OPEC. They can no longer be a cartel, a monopoly that get together once every couple of months in some conference room in some plush place in the world, they decide how much oil they’re going to produce and what price they’re going to put it at."
Um, last I checked, counties can do anything they damn well please regarding the exporting of their natural resources. I also don't recall hearing about any sort of "World Constitution" that would regulate things like this.
Next thing you know, Hillary is going to call for the abolition of the law of supply and demand. Go ahead girl, knock yourself out.
How To Lie With Statistics: Government-style
by Will Hinton ()I'm reading this article in the New York Times about various economic pressures such as the continued housing slump and concerns over inflation when I came to this paragraph:
The latest inflation report appears to corroborate a broader trend of higher prices across the economy. Last week, the Labor Department reported elevated readings for consumer prices. The consumer price index was up 4.3 percent last month from a year ago, up from a 4.1 percent increase in December. read more »Gasoline Prices: Where Are the Real Environmentalists?
by Will Hinton ()Today the International Herald Tribune reported on gasoline price increases:
Gasoline prices, which for months lagged the big run-up in the price of oil, are suddenly rising quickly, with some experts fearing they could hit $4 a gallon by spring. Diesel is hitting new records daily and oil closed at an all-time high on Tuesday of $100.88 a barrel.
The increases could not come at a worse time for the economy. With growth slowing, high energy prices that were once easily absorbed by consumers are now more likely to act as a drag on household budgets, leaving people with less money to spend elsewhere. These costs could exacerbate the nation's economic woes, piling a fresh energy shock on top of the turmoil in credit and housing. read more »
Greed, Tragedy, and Myths of the Subprime Crash
by Will Hinton ()
I read an excellent piece at Rod Dreher's blog yesterday about the housing crash. The media is looking for easy targets to turn into villains as well as creating tragic heroes as part of this story. But the truth is much more complicated as evidenced by a friend of Dreher commenting on a recent ABC News piece: read more »
The Economic Stimulus Package: A Political Solution for An Economic Problem
by Will Hinton ()
Today Congressional leaders announced an agreement with the White House for an ecomomic stimulus package that would provide for rebate checks for American families.
House Speaker Nancy Pelosi, D-California, said at a Capitol Hill news conference.
"Tens of millions Americans will have a check in the mail. It is there to strengthen the middle class, to create jobs and to turn this economy around."
House Minority Leader John Boehner, R-Ohio, said,
"I'm looking for quick action in the House. I hope that the Senate will follow quickly so that we can put this money in the hands of middle-income Americans as soon as possible."Hubris, thy name is Congress. read more »
Government interference with the market IMPROVES innovation - what say you Will?
by Expat Teacher ()I was reading my local paper and came across this article about broadband access and cost in Japan versus the US.
Apparently, "Broadband service [in Japan] is eight to 30 times as fast as in the United States -- and considerably cheaper. Japan has the world's fastest Internet connections, delivering more data at a lower cost than anywhere else, recent studies show."
How did this happen? Well, two things contributed to this rapid improvement in internet infrastructure. read more »
The Results of Professional Journalism: Economic Ignorance
by Will Hinton ()Generally when I read an article from the AP wire, I expect a piece that sticks to the facts. I found one Friday about housing in NYC that could not be more wrong.
According to Citi Habitats, a Manhattan rental brokerage firm, rental rates have risen in Manhattan to $2,000 a month for a studio apartment. Where this story gets interesting is the explanation for the steep rising in housing costs.
The report reflects that "we're the center of everything," said Citi Habitats spokesman Christopher Dente. "There's a lot of relocation—thousands of people are coming in." read more »
House Passes Gasoline Gouging Bill and Proves that They Are Ignorant About Economics
by Will Hinton ()Yesterday, the House passed a bill that would make gasoline price gouging a federal offense. How does the House of Representatives, in their infinite wisdom, define gouging?
(1) IN GENERAL- It shall be unlawful for any person to sell crude oil, gasoline, natural gas, or petroleum distillates at a price that--(A) is unconscionably excessive; or
(B) indicates the seller is taking unfair advantage unusual market conditions (whether real or perceived) or the circumstances of an emergency to increase prices unreasonably.
So who defines "unconscionably excessive"? Since when was there anyone in Congress with a full understanding of the economics of gasoline and the entire supply chain to be able to definitively state what the price of gasoline should be?
This is exceeding foolish legislation that ignores the basics laws of economics. The law of supply and demand dictates that prices must rise when demand rises. This is a basic economic fact that isn't open to interpretation.
As a result there is a fairly obvious solution to rising gasoline prices - STOP DRIVING. The great irony here is that while there is much talk about decreasing our dependency upon oil, this bill ensures that we will continue our dependency upon oil. Those clamoring for more hybrid cars and a more "green" energy policy should be calling for higher gas prices if they were honest. A corrollary to the law of supply and demand is that increased prices will create a decrease in demand. Isn't that what we want???
6% commission? Really? For what?
by Expat Teacher ()I know this isn't the usual topic for GWH, but it does indirectly hit on economics, so maybe it is fair fodder. Otherwise, just consider this a light Sunday afternoon topic to throw around...Mrs. Expat Teacher and I are seriously looking to buy a place here in DC and we've been to plenty of open houses and even viewed some new condo construction, but I've avoided getting a real estate agent since the MLS listings are now available via ReMax. I can just contact the seller directly. If I use a real estate agent, the seller pays a 6% commission on the sale, usually split 3% between the buyer and seller agent. read more »
Butterfly Effects in the Market
by Marc Porlier ()In Ray Bradbury's classic sci-fi short story, A Sound of Thunder, an entrepreneur has created a business called Time Safari, Inc. Customers pay to travel back in time to hunt dinosaurs. Great care is taken not to cause a time paradox. The hunters must remain on hi-tech pathways that don't touch any of the flora or fauna. The hunters must remove the bullets from their trophies and never, never, never step off the paths. Well, of course, that's exactly what happens in the story. A man named Eckels steps off the path, kills a butterfly, and when his party returns to the present, everyone is speaking in Old English and, in place of the democratic leader who was in power before they left, a Hitleresque despot name Deutscher has won the election. read more »
Equal pay?
by Kate ()My husband sent me an email saying that he "owed" me and citing this article.
This reminded me of a favorite cartoon from the WSJ editorial page. Visually, it was very simple, a woman at a kitchen table with a list of figures and an infant in a high chair. She is looking up at a man suited up and with a briefcase, presumably her husband. She said, "I've just figured how much I am worth as a housewife. The only trouble is that it's more than you earn." In our case, considering that we had six children and I home schooled them, we knew it was true. read more »
