Economists continue to debate the extent to which free markets are truly efficient.
It seems to me that two things are certain:
free markets are remarkably efficient at …
1. accumulating wealth, and
2. consolidating power.
Beyond that, it seems to me that free markets are not that efficient at all.
With all the volatility in the stock market lately it is a good time to remind ourselves that “the market” is not the same as “the economy.” The best that I can tell — at least as of the last few years — “the market” has contracted to a relatively small group of:
This tight-knit circle trades amongst itself with very little relevance to what we think of as “the economy.” In contrast to this closed group, the economy is the vast sum of the creation and delivery of the goods and services we want and need.
It seems to me that the Dow Jones Industrial Average and S&P 500 bears little connection to these things these days.
Don’t be afraid. Now is the time to be bold. If you don’t like the economy, let’s go out and make one of our own.
Long term contracts and petty fees are everwhere.
When we moved to Princeton last year we signed up for Poland Springs water delivery. (Poland Springs is owned by that bottled water juggernaut, Nestle Waters.) They offered an inflexible monthly service plan of 4 bottles per month for $32.96, which was the best deal in their array of undesirable options. You can skip a delivery, but not a payment.
When the first bill arrived I was surprised to find a $2.00 fee for an Oil Surcharge. What? This is nothing more than a price hike disguised as a fee, hiding behind rising fuel prices. They are in the delivery business. Fuel charges are integral to their cost of doing business and should therefore be integrated into the price.
My biggest disappointment came when I set out to cancel the service due to a pending move to North Carolina. …
Geography has made us neighbors, history has made us friends, economics has made us partners, and necessity has made us allies.
— President Robert F. Kennedy on US / Canada relations.
The US President’s first foreign trip is highly symbolic. Yesterday President Obama reinforced a long standing tradition and made Canada the destination for his first foreign trip. President Bush’s first foreign trip was to Mexico. US / Canada relations were strained throughout his entire term. Presidents Jimmy Carter and Gerald Ford never visited Canada at all.
Granted, this trip was more than a pit stop than an extended visit. He arrived in the morning to meet with Prime Minister Stephen Harper, ate through a working lunch, held a joint news conference, met briefly at the airport with the leader of Canada’s opposition party, and was back home in the White House in time for dinner.
Even though he only had time to pop in for a quick chat, I am glad that my native country is back at the top of the list for our new US President.
When the news broke today that a crane had fallen in New York City I immediately went to the web in search of video footage. CNN was my first stop. As expected, they had a video clip at the top of the page.
The next two minutes were a stunning realization of all that is wrong with the current attempts to monetize online video. The clip was 75 seconds long. In order to watch the clip I had to endure a 30 second pre-roll advertisement . . . for VIAGRA! …
If it weren’t for the rocks in its bed, the stream would have no song.
— Carl Perkins, Rockabilly pioneer
I have been hesitant to post this quote because of its inclination towards banality. I mean, come on, how corny is “the stream would have no song?” But there is an underlying wisdom to this rockabilly adage. We do not grow if we are not challenged.
Lately I have been intrigued by the idea of what makes people interesting.
Books must be read as deliberately and reservedly as they are written.
— Henry David Thoreau, Walden
I have always been a deliberate reader. When I stumbled across this quote while reading Walden so many years ago, it simply gave me permission to enjoy the pace at which I read. Good writing is more than just conveying ideas or recounting a story. Good writing creates a mood, and images, and evokes emotions — and these cannot be digested while speed reading.
One of my favorite writers is Pat Conroy, and my favorite book of his is Prince of Tides. When I read this poetic prose I am drawn in to the rich and colorful images Conroy is able to create. Every sentence feels like a sculpture carefully crafted.