Economics and Social Policy – XLI

Welcome to the January 1, 2008 edition of economics and social policy.

Sammy Benoit presents Keep Congress Out of My Toilet posted at YID With LID.

Isn’t that where Congress’ approval ratings already are? I believe that P.J. O’Rourke has noted previously that the law of unintended consequences is the one Congress always passes. It’s not like Congress excels in cost benefit analysis. Or even bothers to ask the question. After all, when you’re busy saving the planet, who has time to think things through?

Michael Carlin presents The Divine Right of Corporations posted at The Future of Science, saying, "Consumers must beware the cult of the market. Market choices must be made fully aware of their moral effects."

Every once in a while, it’s good to read something like this. I considered dropping the piece, mostly because anybody who doesn’t understand payments to capital isn’t likely to be able to shed any light on any economic questions.

The most laughable part (of several) is the notion that corporations are big supporters of the free market. They’re not – most are busy trying to get the government to subvert the market for their personal gain. And just as a curiosity item – if it’s immoral to purchase the products produced in ‘sweatshops’, how do we expect those people to eat? After all, the ‘sweatshop’ job was likely the best available alternative. Granted, there are certainly situations where employers abuse employees. Not surprisingly, the Chinese are probably the worst offenders in this regard. After all, they’re officially a socialist country, and the Communist Party holds all positions of power and influence. The dominant system in China is, in fact, not the market, but political patronage, perks, fiddles, and corruption, lightly salted with some capitalism around the edges.

Charles H. Green presents European Fish, the Commons, and Business posted at Trust Matters

The problem with the fisheries (the commons), is that there’s no clear ownership interest. Without clear ownership interest, there’s no incentive to invest or develop the fish stock, so everything is pointed to short term gain. The problem is only exacerbated when rights are allocated based on political whim.

I’m not sure that I buy the extension of this model to the subprime mortgage problem. In this case, the borrowers seem to be every bit as culpable as the lenders. Overall, an interesting piece.

Roger Haeske presents Gifts For Tea Party Contributions To Ron Paul posted at Raw Food Diet, Bodyweight Fitness and Peak Performance Living.

I’m not a huge Ron Paul fan, but I must admit that he should be taken seriously in the Republican Primary given his ability to raise money. The whole debate thing is somewhat troubling – I certainly understand the need to cut the minor candidates (as much as I like Duncan Hunter, he should have dropped out a while ago), but the fundraising should suggest that Paul get another cut. That said, Ron Paul is not going to be President. There just isn’t much of constituency for a radical reduction in the size and scope of government in this country.

Niharika presents Next-gen Investing: 40+ Web 2.0 Tools, Networks and Mashups for Amateur and Professional Traders posted at Currency Trading.net.

A linkfest.

Matthew Paulson presents How I Learned To Stop Being So Greedy and Become a Giver posted at American Consumer News.

Good advice in the classic Christian cycle of save – invest – give.

Sagar presents Comparison: Major Presidential Candidates on Monetary Policy and the USD posted at Currency Trading.net.

A quick snapshot of the candidate’s economic positions. It’s not really focused on monetary policy or the dollar. Surprisingly, all of the candidates appear to favor eliminating poverty, as well as improving education and healthcare. Whether any of their policies, if enacted, would actually do those things is a completely different question.

Value Seeker presents Stock Investing Vs. Stock Trading - Stock Investment Resource: Stock Market Investing Tips posted at Stock Investing.

Ahhh, the old trader v investor conundrum. If you seek to become a trader / speculator, keep in mind that almost no one consistently beats the market’s risk adjusted rate of return. The vast majority of folks are better served by mutual funds or a diversified long-term portfolio. If you do take up trading, don’t put more at risk than you can afford to lose.

Wenchypoo presents The Faulty Food Stamp Challenge—Eating for $1 per Person per Day posted at Wisdom From Wenchypoo's Mental Wastebasket.

Won’t this ever go away? Tom Blumer from Bizzyblog has been flogging the Food Stamp Challenge nonsense for a while now. However, just like a B-movie monster, the thing just won’t die.


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