patrix + economics   68

The Ten Commandments of The American Religion
It’s a fickle and false religion, used to replace the ideologies we (a country of immigrants) escaped. Random high priests lurk all over the Internet, ready to pounce. Below are the Ten Commandments of the American Religion, as I see them.
UnitedStates  rules  economics  war  pb  Freakonomics_Blog  America  congress  FDA  homes  religion  voting 
october 2011 by patrix
Find Out What Percent You Are (For Real) [Occupy Wall Street]
We gave you our highly unscientific quiz for figuring out what percent you are. But the eggheaded calculator jockeys at the Wall Street Journal did it for real. Just go here enter in your household income. More »
Occupy_Wall_Street  Economics  Wall_Street_Journal  from google
october 2011 by patrix
No Logo: Brands and Chains in the Age of Mobile Internet
It’s no coincidence that the rise of the American chain restaurant coincides pretty neatly with the automobile’s shift from an aristocratic toy to a mass means of transportation.  As society grew more mobile, a novel problem arose: As you found yourself routinely passing through areas you didn’t know intimately, how could you know where to grab a decent bite? Standardized franchise restaurants—by adapting the assembly line methods of Henry Ford, appropriately enough—provided the answer. What they might lack in quality, they made up for in consistency: Anywhere the internal combustion engine might take you, you could Look for the Golden Arches (or some other easily recognizable logo) and know exactly what you were going to find. The chain was unlikely to be the best casual dining in town, but you at least knew you weren’t going to be surprised with something epically awful. That was a particular risk for roadside restaurants catering primarily to travelers rather than locals: If you don’t expect to do much repeat business, there’s not much percentage in spending time and effort raising the quality of your food much above the level of “palatable.” The national chain, by contrast, had an incentive to ensure that local managers didn’t injure the reputation of the overall brand. A customer might not ever set foot in a particular McDonalds a second time, but a chain has to be concerned with whether her experience makes it likely she’ll visit any McDonalds again.

Now,  Brad Plumer reports, there’s research suggesting that online review sites like Yelp are cutting into chains’ bottom line by providing an alternative solution to the information problem. The combination of peer-produced online reviews (which cover local diners along with the big-city restaurants) and mobile, location-aware Internet devices has made it incredibly easy  to figure out where you can find the nearest restaurants with good reputations, wherever you might be. Under conditions of uncertainty, the chain represents a rational maximin strategy. As ubiquitous connectivity and peer-production of information reduce that uncertainty, the chain becomes an unnecessary hedge.

Yet it’s not just chain restaurants that have thrived by using standardization and branding to solve a consumer information problem: Branding and marketing generally often serve much the same function. Frequently, generic or store-branded products (soda, cereal, ibuprofen) are literally chemically identical to the more recognizable name-brand product, and only cheaper because they haven’t been saddled with the overhead of a costly marketing campaign designed to signal quality. (Think of the traditional argument for the evolution of peacock feathers: To survive while paying the high overhead cost of such a gaudy display signals genetic fitness.)

Imagine, then, what effect it might have if, five or ten years hence, augmented reality using sophisticated image recognition were as ubiquitous as Internet-enabled phones are becoming in the developed world. Imagine that, for nearly any product consumers encountered, some kind of aggregate rating—based on whatever criteria the individual has determined are most important—would simply appear, with minimal effort. Simply looking at an aisle of products—or even passing shops on the street—I might effortlessly learn which were deemed most satisfactory by people with tastes similar to mine. My incentive to take the time to rank products would be provided by my desire to give the system a basis for determining which other user’s rankings were most likely to be relevant for me. (Think here of Netflix recommendations or other type of social filtering, where contributing ratings enables the system to make better predictions about what I am likely to enjoy.)
With such information more directly available, marketing would become far less relevant to the buyer—and a far less worthwhile investment for the producer. Products, of course, would still need to be distinguished in some way, but a seller with a superior product would be far better able to compete without investing in a costly national marketing campaign. Advertising might be initially important in raising awareness about a new product and building an initial pool of reviews, but its salience would rapidly diminish.
That’s one way things might go, at least. The picture is a bit complicated because today we often “consume” the brand, and not just the product itself. That is a company like Nike might invest a great deal in slick marketing partly in order to create a series of public associations with their logo, so that part of what I’m buying when I purchase their sneakers is what (I hope) the Swoosh signals about the sort of person I am—or how I see myself, at any rate. But this seems like a major consideration in a relatively limited number of product areas, such as clothing (precisely because it’s displayed on the person). If that’s right, the “Yelp Effect” in world where augmented reality technology has been widely adopted could dramatically diminish the broader cultural prominence of corporate logos and brands.
Art_&_Culture  Economics  Sociology  Tech_and_Tech_Policy  from google
october 2011 by patrix
The Stream Map of the World
For most of the last decade, Israeli soldiers have been making the transition back to civilian life after their compulsory military service  by going on a drug-dazed recovery trip to India, where an invisible stream of modern global culture runs from the beaches of Goa to the mountains of Himachal Pradesh in the north.  While most of the Israelis eventually return home after a year or so, many have stayed as permanent expat stewards of the stream. The Israeli military stream is changing course these days, and starting to flow through Thailand, where the same pattern of drug-use and conflict with the locals is being repeated.

This pattern of movement among young Israelis is an example of what I’ve started calling a stream. A stream is not a migration pattern, travel in the usual sense, or a consequence of specific kinds of work that require travel (such as seafaring or diplomacy). It is a sort of slow, life-long communal nomadism, enabled by globalization and a sense of shared transnational social identity within a small population.

I’ve been getting increasingly curious about such streams. I have come to believe that though small in terms of absolute numbers (my estimate is between 20-25 million worldwide), the stream citizenry of the world shapes the course of globalization. In fact, it would not be unreasonable to say that streams provide the indirect staffing for the processes of modern technology-driven globalization. They are therefore a distinctly modern phenomenon, not to be confused with earlier mobile populations they may partly resemble.

Stream Citizenship

Stream citizens are not global citizens (a vacuous high-modernist concept that is as culturally anemic as the UN). Their social identities are far narrower and richer. They are (undeclared) stream citizens, whose identities derive from their slow journey across the world.

But the individualist, existential notion of nomadism that I wrote about in On Being an Illegible Person does not apply. In particular, stream citizens are not necessarily nomadic in literal ways (such as living out of cars, boats or mobile homes). They may buy or rent property, accumulate material possessions, and so forth.

Streams are highly sociable collectives, not individuals. The stream itself may be illegible on a map of nation-states, but individuals within it are fairly legible at least to fellow citizens within the same stream. In this sense, streams are like David Hackett Fischer’s folkways. Unlike folkways, streams use geographic movement to structure themselves internally. You could also apply the John Hagel model in The Power of Pull and think of traditional folkways as “stock” folkways and streams as “flow” folkways. The running example in the book (global surfer culture) is not quite a stream, however.

The argument for a distinct new construct, the stream, is not based on a single clear criterion that separates it from other kinds of population movements. Instead, we have a distinctive pattern of deviations from other kinds of population movements.

I have a few examples in mind (such as the Israeli one), but to avoid the dangers of over-fitting, I’ll characterize the idea of the stream via a dozen abstract features, and follow it up with a very primitive and sketchy “world stream map,” without trying to describe specific streams in these abstract terms.

Distinct social identity: Streams possess a unique and distinct social identity, unlike more inchoate movements that may share some of the features of streams.  Unlike rite-of-passage travel patterns though (such as “karma-trekkers”), they tend not to have named, brand-like identities. Instead, they have unmistakeable, but implicit identities.
Partial subsumption: Streams subsume the lives of their citizens more strongly than more diffuse population movements, but less strongly than focused intentional communities like the global surfing community. There is a great deal more variety and individual variation. In particular, there is no solidarity around grand ideologies in the sense of Benedict Anderson’s Imagined Communities.  In this, streams differ from nation-states, even though they provide something of an alternative organizational scheme. Not only is the subsumption at about a middling level at any given point in time, it varies in intensity throughout life, being particularly weak early and late in life.
Voluntary slowness: a stream is a pattern of movement where individual movements take place over years or decades, spanning entire development life stages. Unlike a decade-long limbo state imposed by (say) waiting for an American green card, which has individuals impatient to get the process over with and “settle down” in either a new home, or return to an old one, stream citizens don’t experience their state as a limbo state. They are always “home.” Being a relatively new phenomenon, there are no streams that are life-encompassing as yet. But I believe those will emerge — distinctive cradle-t0-grave geographic journeys.
Exclusionary communality: streams provide a great deal of social support to those who are eligible to join and choose to do so, but are highly exclusionary with respect to very traditional variables like race, ethnicity and gender. The exclusionary nature of streams is not self-adopted, but a consequence of the fact that streams pass through multiple host cultures.  A shared social identity in one host culture may splinter in another, while distinct ones may be conflated in unwanted ways.  So only relatively tightly-circumscribed social identities can survive these forces intact. I am really tempted to illustrate this particular point with examples, but I’ll leave it as an abstraction.
Distinct economic identity: unlike commercial travel that is part of broader economic activity (such as sea-faring), or non-commercial travel (such as tourism), streams tend to be at least partially self-sustaining within every host culture that they pass through. This partial self-sustainability often involves patterns of global commercial activity that lends money a different meaning within the stream. So even though streams don’t issue currencies, and merely borrow the economic apparatus of their host cultures, the money behaves in very different ways while it is circulating within the stream.
Non-tribal: Streams are not completely self-sufficient though, in the sense of segmentary tribes.  This is a crucial distinction from nomads or barbarians in the classical sense. They do not seek to form bonds of mechanical solidarity with other streams. Instead they seek to form fairly strong bonds of organic solidarity (mutual interdependence) with host cultures.
Vorticity: Streams contain higher-tempo patterns of travel among the waypoints, especially to old “home” bases, due to obligations and attachments inherited from pre-stream home cultures.
Partial self-absorption: stream citizens are not very interested in the host cultures they pass through except to the extent of maintaining economic and practical relationships. There is no sense of being on the periphery, looking on with longing at the action at the center. There is no oppressive sense of being trapped in a diaspora-ghetto.
Relative poverty: unlike the global jet-setting (think Davos) elite, streams are generally impoverished. In fact a great deal of the motivation for living in a stream is to leverage limited means. But this does not mean we are only talking about lifestyle-designing Internet marketers in Bali. We are also talking about migrant labor from Asia to the Middle East that starts with a “let me save money working in construction in Dubai for a few years” motivation, but ends up extending to a whole lifetime.
High adaptability: Unlike nomads who carry their lives around with them, creating tiny shells of reassuring familiarity around themselves, stream citizens behave more like hermit crabs. They cobble together the necessities of life — shelter, income, patterns of diet and exercise — from whatever is around them. Stream citizens eat Chinese food in China and Thai food in Thailand, not because they are particularly curious about local cuisines, but because the sustainability of the stream lifestyle is based in part on such adaptation. Nostalgia is weak for stream citizens, as is the faraway-home/near-exotic sense of alienation from surrounding. Stream citizens are both home and abroad at the same time.
Direct connection to globalization: In a sense, the notion of “stream” I am trying to construct is a generalization of the Internet-enabled lifestyle designer, which I think is much too narrow. But streams are definitely a modern phenomenon, and owe their capacity for stable existence to some connection with the infrastructure of globalization. The Internet is the major one for the creative class, but anything from container shipping to the Chimerica manufacturing trade to the globalized high-rise construciton industry qualifies.

Lack of an arrival dynamic: this is perhaps the most important feature. There is no sense of anticipation of an “arrival” event  such as getting an American green card, after which “real” life can begin. There is a wherever you go, there you are indifference to rootedness. This psychological shift is the central individual act. By abandoning arrival-based frames, stream citizens free themselves from yearning for geographically rooted forms of social identity.

The Scale and Impact of Streams

In terms of sheer numbers, global migration does not seem to be a very powerful force. In World 3.0, Pankaj Ghemawat notes that only about 3% of the world’s population comprises first-generation immigrants. Over 90% of the world’s population will never leave their home country.

As a small subset of global migration and travel, the total population of stream citizenry is unlikely to exceed about 0.3% of the world population by my estimate[…]
Culture  Economics  Globalization  Technology  from google
october 2011 by patrix
Rent vs. Buy Index
Trulia's Q1 2011 Rent vs. Buy Index provides guidance to help you make a smart decision on whether it is better to rent or buy in each of America's 50 largest cities by population. The Rent:Buy Ratio is calculated by using the median list price compared with the median rent on two-bedroom apartments, condos and townhomes listed on Trulia.com.

I'm glad we made the economically-wise decision to buy our first house last year.
housing  rental  unitedstates  preferences  economics  upb 
january 2011 by patrix
After Three Months, Only 35 Subscriptions
Newsday, the Long Island daily that the Dolans bought for $650 million, put its web site, newsday.com, behind a pay wall. The paper was one of the first non-business newspapers to take the plunge by putting up a pay wall,
advertising  economics  journalism  newspaper 
january 2010 by patrix
The Man Who Predicts The Medals
"Single-party regimes, traditionally Communist regimes, do much better than their democratic peers."
economics  olympics  from delicious
january 2010 by patrix
The Henry Ford of Heart Surgery
Dr. Shetty, who entered the limelight in the early 1990s as Mother Teresa's cardiac surgeon, offers cutting-edge medical care in India at a fraction of what it costs elsewhere in the world. His flagship heart hospital charges $2,000, on average, for open-heart surgery, compared with hospitals in the U.S. that are paid between $20,000 and $100,000, depending on the complexity of the surgery.
economics  healthcare  india  medicine  nefa 
november 2009 by patrix
The dark side of Dubai
Dubai was meant to be a Middle-Eastern Shangri-La, a glittering monument to Arab enterprise and western capitalism. But as hard times arrive in the city state that rose from the desert sands, an uglier story is emerging
culture  globalization  dubai  economics  business  development  politics  nefa 
april 2009 by patrix
With Finance Disgraced, Which Career Will Be King?
Big shifts in the flow of talent can ripple through the nation and the economy for decades with lasting effect.
jobs  economy  recession  career  finance  economics  school  nefa  fordesipundit 
april 2009 by patrix
A Global Retreat As Economies Dry Up
"As World Trade Plummets, Bustling Ports Stand Idle And Foreign Workers Track Back Home." Is it really that dire?
nefa  fordesipundit  economy  economics  globalization  immigration  asia 
march 2009 by patrix
How the Crash Will Reshape America
What fate will the coming years hold for New York, Charlotte, Detroit, Las Vegas? Will the suburbs be ineffably changed? Which cities and regions can come back strong? And which will never come back at all?
nefa  politics  economics  usa  newurbanism  fordesipundit 
march 2009 by patrix
Recipe for Disaster: The Formula That Killed Wall Street
In the mid-'80s, Wall Street turned to the quants—brainy financial engineers—to invent new ways to boost profits. Their methods for minting money worked brilliantly... until one of them devastated the global economy.
nefa  wired  economics  economy  business  money  finance  mathematics  fordesipundit 
march 2009 by patrix
Why Is Her Paycheck Smaller?
Nearly every occupation has the gap — the seemingly unbridgeable chasm between the size of the paycheck brought home by a woman and the larger one earned by a man doing the same job.
nefa  economics  visualization  money  gender  feminism  fordesipundit  wagegap 
march 2009 by patrix
Yes, They Could. So They Did
The biggest fan of India on the NYT Columnist Team
economics  india  environment  energy  Innovation  fordesipundit 
february 2009 by patrix
Charles declares Mumbai shanty town model for the world
The Mumbai shanty town featured in the film Slumdog Millionaire offers a better model than does western architecture for ways to house a booming urban population in the developing world
nefa  fordesipundit  india  economics  mumbai  sustainability  poverty 
february 2009 by patrix
Porn industry seeks federal bailout
Another major American industry is asking for assistance as the global financial crisis continues. And why not? Everyone needs a lift.
nefa  politics  economics  porn  fordesipundit  bailout 
january 2009 by patrix
A Big Sum of Small Differences
Individual Americans Cause -- and Could Cure -- Most of U.S. Emissions Problem
nefa  sustainability  economics  environment  energy  behavior  climatechange  fordesipundit 
january 2009 by patrix
The Next World Order - NYTimes.com
CHINA and India are in a struggle for a top rung on the ladder of world power, but their approaches to the state and to power could not be more different.
nefa  politics  development  india  economics  china  fordesipundit 
january 2009 by patrix
China to Overtake U.S. Economy
Will its takeover over the U.S. economy really matter?
economics  china  unitedstates  economy  economicgrowth  nefa  wealth 
august 2008 by patrix
The Folly of Obama’s Tax Plan
Senator Obama’s proposed ‘tax cuts for the middle class’ are actually marginal rate hikes in disguise.
taxes  obama  politics  economics  nefa 
august 2008 by patrix
The Heart of the Economic Mess
Most Americans can no longer maintain their standard of living. And the core problem isn't the housing crisis or rising oil and food prices.
usa  recession  politics  money  economy  economics  debt  earnings  policy  nefa 
august 2008 by patrix
A Long Wait at the Gate to Greatness
China, the drumbeat goes, is poised to become the 800-pound gorilla of the international system, ready to dominate the 21st century the way the United States dominated the 20th. Except that it's not.
china  economics  politics  culture  government  demographics  environment  predictions  nefa 
july 2008 by patrix
How Much Does It Cost You in Wages if You Sound Black?
Blacks who “sound black” earn salaries that are 10 percent lower than blacks who do not “sound black,” even after controlling for measures of intelligence, experience in the work force, and other factors that influence how much people earn.
black  discrimination  economics  income  research  nefa 
july 2008 by patrix
Googling the Welfare State
Swedish social democracy, and its concomitant hostility to entrepreneurship and overly generous network of financial benefits for immigrants and asylum seekers, is a significant contributor to high unemployment rates.
google  sweden  welfarestate  economics  nefa 
june 2008 by patrix
Cognitive Dissonance
Almost half of the economists in the latest Wall Street Journal forecasting survey decided against answering a question on which presidential candidate offers the most responsible fiscal policies.
mccain  economics  Politics  election  NEFA 
may 2008 by patrix
Gas May Finally Cost Too Much
Highway traffic is falling as pump prices climb. Are Americans rethinking their auto addiction?
gas  traffic  transportation  oil  economics  cars  NEFA 
april 2008 by patrix
Home Prices Drop Most in Areas with Long Commute
The ones with short commutes are faring better than places with long drives into the city.
housing  economics  Planning  realestate  sprawl  Transportation  UrbanPlanning  NEFA 
april 2008 by patrix
Renters squeezed by lack of affordable housing
In the Stamford area, a breadwinner needs to earn more than $30 an hour to afford the rent of a typical two-bedroom apartment
economics  urban  poverty  housing  rent  NEFA 
september 2007 by patrix
Mechanisms and Impacts of Gender Peer Effects at School
Our results suggest that an increase in the proportion of girls [in school] leads to a significant improvement in students' cognitive outcomes.
economics  gender  NEFA  education 
august 2007 by patrix
Buy Low, Divorce High
Economist Gary Becker showed that couples experiencing any unexpected, drastic rise in net worth are at risk of divorce.
economics  realestate  divorce  marriage  relationships  NEFA 
august 2007 by patrix
Democratic Debate Spawns Weird Economics
Economic policy is one issue I strong disagree with Democrats on.
economics  politics  democrats  elections  NEFA  opinion  president 
august 2007 by patrix
Harry Potter Economics
Why are the Weasleys poor? Why would any wizard be? Anything they need, except scarce magical objects, can be obtained by ordering a house elf to do it, or casting a spell, or, in a pinch, making objects like dinner, or a house, assemble themselves
economics  harrypotter  magic  books  NEFA 
july 2007 by patrix
Why Black Kids Do Worse in School than White Kids
They [Fryer & Levitt] found that while black children lagged their white counterparts at three, there was little difference in mental function at age one.
education  economics  race  children  development  poverty  NEFA 
july 2007 by patrix
Constitutional Conservatism on the Campaign Trail
When asked why so many people are eager to spread his message on their own without being paid for it, unlike the other campaigns, Paul just shrugs and says, “It just might be that Freedom is popular.”
conservative  constitution  economics  elections  unitedstates  ronpaul  NEFA 
july 2007 by patrix
How much is an immigrant's life worth, exactly?
How do you justify a border fence? Why is it OK to consign millions of unskilled Mexicans to lives of desperate poverty? I'm told it's because Americans should care more about their countrymen than about a bunch of foreigners. OK, but how much more?
economics  ethics  poverty  immigration  NEFA 
june 2007 by patrix
Is One Kid Enough?
Additional children seem to make mothers less happy than mothers with only one child
society  psychology  economics  NEFA 
april 2007 by patrix
In the Real World of Work and Wages, Trickle-Down Theories Don’t Hold Up
trickle-down theory, which is supported neither by theory nor evidence, continues to stand in the way. This theory is ripe for abandonment.
economics  finance  NEFA 
april 2007 by patrix

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