One of the driving memes of these endeavors is that motive and incentive are at least as important as data to understanding an economy, both at the micro (especially) and the macro level. Comes an extensive piece which deals with such in the context of The Great Enabler, the Nobel Prize in Economics (which, actually, it isn't really). Economics isn't any more "scientific" than…Continue
One of the hallmarks, if not raison d'etre, of microeconomics aka The Corporate Perspective, is that macroeconomics is just the sum of all those homo economici maximizing their use of land, labor, and capital. Such argument has been used for centuries to justify all sorts of zero-sum gaming and short-term decision making. Keynes is the most well known but not first to recognize that the welfare of The Tribe amounted to more than the sum of each member's wealth. Arguing against the macro…Continue
The giant sequoia lives into the thousands of years; ring analysis of all trees shows some wider and some narrower, resulting from level of water, sun, and soil nutrients. More food, thicker rings. Nevertheless, tree growth can be viewed as monotonic increasing in perpetuity. More or less. The same is true of many natural processes.
Unfortunately, the same is not true of human processes, since, unlike trees, we (well, some few of us) control the supporting environment. Sometimes, in…Continue
Another in the line of missives centered on The Tyranny of Average Cost™ was percolating in my lower brain stem, but not yet putting fingers to keyboard, when what should I see, not tiny reindeer, but this Debbie Downer report on Apple.
Back in the beginning, even before some readers were yet born, Apple was the computer company for the rest of us. An IBM/PC cost in the neighborhood of…Continue
Regular reader may recall my observation on the folly of Amazon's business model: it's an order of magnitude cheaper to ship by rail than by air. All this building of stores, sorry Fulfillment Centers, was perfect evidence that Bezos sees the problem, but finds the most expensive way to solve it.
Now, of course, Amazon is going into the brick and mortar business. There must be great angst among the pundit class!! Betrayed by Jeff!!
The reason, of course, is it's cheaper…