Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

Saturday, May 25, 2013

Boundaries

“Teenagers with mental distress come mostly from families near the boundaries between socio-economic classes ..not families who live squarely in one class or another.”   [Center for Disease Control]
This report caught my attention. I grew up in a fairly affluent, upper-middle class neighborhood ..but belonged to an income class that was closer to the bottom of the socio-economic scale. The result of a divorce settlement that kept us in a nice place but with just enough money to eat ..if we stuck with Taco Bell and beef jerky. We basically relied on the charity of sympathetic neighbors to get by. We we’re definitely living near the vicinity of different class boundaries. I was forbidden from hanging out with kids in families from my income class (according to my mom it didn’t reflect well in the neighborhood I was in) while kids in my neighborhood were discouraged from hanging out with me by their parents ..out of fear I'd become another  ‘dependent’. Now I’m not looking to assign blame here or anything. There are more than enough reasons for the ‘distress’ I felt. I was definitely a major contributor. But this article resonates. It wasn’t until I got the hell out of Dodge that my depression cleared. Economic class is a largely unspoken source of discrimination in the U.S.

Sunday, May 12, 2013

Unfettered and alive

“Mothers and fathers throughout the land / Don't criticize what you can’t understand / Your sons and your daughters are beyond your command / The old road is rapidly aging / Please get out of the new one if you can’t lend a hand / For the times they are a-changing.” 
The way I see it, I have every reason to feel optimistic. Young people are revitalizing the land. Men and women in equal measure. And they’re not doing it the same way as before. I see something different. More like a fusion of local culture with global ideas. Using modern technology. Bringing together communities of like-minded people faster and less fettered than before. Whether or not this is sustainable is too soon to tell. At present I’d say it’s inexplicable. More like life according to Lao Tzu: “The way that can be spoken is not the way / Nameless is the origin of heaven and earth.” Even in Tijuana, young entrepreneurs and artists are reclaiming the streets ..giving wide berth to the adverse conditions bestowed by prior generations. They have more in common with their counterparts in Mexico City, Los Angeles and other metropolises. In L.A, tech firms founded by women are replenishing the city. Unimpeded by the Bay Area’s male-dominated programmer culture, they’re using their expertise in retail, entertainment, advertising and media to build digital companies whose products and services are aimed at other women. I suppose if you’re stuck in prior ways of doing things you won’t have as much reason to feel optimistic.

Sunday, January 6, 2013

Decision making

Decisions are mostly intuitive, logical explanations
catch-up milliseconds later ~ Robert Sapolsky [ link ]

Thursday, August 11, 2011

Dr Gene


Dr Gene tells me that the U.S. debt-debate is a red-herring. “It’s a distraction from what’s really happening to the economy,” he says. “The S&P didn’t downgrade our credit rating because of the level of the debt ..it was in response to political gridlock. We’ve had federal deficits throughout history ..especially during wartime ..and the markets didn’t suffer because of it.” He believes that the debt-level is modest and probably even necessary given current economic conditions. So, what’s the problem..? “I believe it’s really bad timing on the part of republicans to be asserting political ideology right now ..that and the President failing to assert his powers of office. He could have easily raised the federal debt in time to meet it’s obligations. The 14th amendment allows him to do that without approval from congress. You see. Bill ..it’s not the size of the debt, it’s the government not making payment on the debt that shakes up foreign investors, S&P and the folks on Wall Street.”

Sunday, August 7, 2011

Sovereignty for sale


They say the worst thing you can do in an economic crises is panic. However, it’s kinda’ hard not to when I’m sitting here with a sliding sensation in my gut, like the wheels of my car have lost traction on an icy road. Only I’m not in a car, I’m sitting at my desk. They say that the world’s largest communist country, China, has now become the world’s biggest creditor. This, in turn, gives them the right to demand the U.S. surrender it’s military and social programs that are putting the value of their biggest asset at risk .. U.S. Treasury bonds and other dollar-backed securities. I think it’s time for me to make an appointment to see Dr. Gene.

Monday, December 27, 2010

Conspiracy theory

It was the intention of the Bush administration to raise unemployment and drive more middle-class citizens to lower economic classes. They felt it was necessary to get middle-class Americans to accept lower wages. Lower wages mean lower prices and greater demand for American-made products, which helps balance the trade deficit. Reduced purchasing power also means less tolerance for high-priced foreign oil, which helps domestic oil companies expand their operations into coastal waters as well as wildlife sanctuaries. Furthermore, they figured it would discourage fanatics from developing renewable energy sources. A larger class of low paid workers creates greater competition for low-paying jobs. Greater competition for low-paying jobs is how you get the job market to deal with immigration. Fear of foreign workers helps Republicans enact tougher immigration laws ..like denying immigrants any chance of citizenship, which also goes for their American-born, college-educated children ..as well as those serving in the military. Another advantage of the politics of fear is that it helps Republicans win elections. That’s probably what helped Republicans gain control of Congress. Records show that the more support there is for republican issues in congress ..the more cutbacks you can expect to see in public education (especially in the form of federal grants and student aid). Cutbacks such as these deny middle-class access to higher education. What was their intention ..? To create a larger pool of low-cost labor. These advantages are short-term however, and the cycle will turn. When the disparity becomes so great that higher education becomes a luxury only the wealthy can afford, they might as well shut down the state universities ..there aren’t enough wealthy students to go around. When the GOP cuts all ties with the Latino community, and their efforts at stemming immigration fail (because it’s like trying to stop water) ..they’ll have succeeded in creating a larger population of democratic voters. And when support from the rural Midwest farmer collapses because they haven’t kept their promise to repeal the estate tax ..the cycle will come full circle.

Thursday, December 9, 2010

The advantages of ADD


The kind of focused attention ordinarily required in a classroom is not always helpful overcoming obstacles outside the classroom. A wider focus of attention, which is usually associated with ADD, is actually more adaptive according to neuroscientists John Kounios and Mark Beeman [link]. And from what I’ve seen, I believe it ..! They found that when students are more open to distraction, they do better navigating a computer-simulated labyrinth than when they are focused and blocking out distractions (as seen on an fMRI). Students actually see and hear more .. finding their way faster by heuristic than by analytic reasoning. In other words, in many situations, discovering relationships between vague and loosely connected information is more advantageous than step-by-step analysis.

Thursday, April 22, 2010

In praise of the homemaker

“The triumph of man was due entirely to the female of our species.” ~ Harold Klawans, MD

I wonder when 'child rearing' was relegated to a lesser role than tax-preparer. Maybe we need a new word for it. I’m proposing ‘director of development’ and I am putting it up there with medical doctor and other workers in the helping professions. I mean, the farther I went in life, the more I realized how essential motherhood is to the vitality and continuity of the human species. The mother’s heartbeat is the first language we learn. Outside the womb, the mother’s voice shapes the formation of language centers in the brain. Neuroscience informs us that the development of the brain takes place mostly outside the womb. The role of child rearing is to nurture this development. Messages conveyed by speech, touch and human interaction actually guide the growth of nerve-pathways to their destination. Without this, the human species would have become extinct a long time ago. We have to shake-off the stereotype that child rearing is somehow an unproductive activity .. little more than a burdensome ‘maternity leave’ in the workplace. Otherwise, we treat our own children like second-class citizens.

Wednesday, November 25, 2009

Crazy Charlie

I’m lying on the roof, looking up at the stars ..when I get a get a call from Charlie who's underneath a bridge .. in a tent community by the L.A. River. It’s a place he knows well, which concerns me because it’s probably the first place they’ll look for him. “Nah” he says “..it’s terra incognita.” I try Googling it with no luck. It’s like wild kingdom down there. He spends his time sitting in squalor behind a wall of cattails .. reading and repairing his bicycle ..while freeway traffic rushes by overhead. His new lady friend ‘Musgrove’ prepares coffee while he plans his next destination. I tell him he sounds awfully comfortable for a man on the run. He says it’s OK, people down there come and go ..no one really knows who you are ..but everyone takes care of each other. He tells me there’s a string of communities like this running up and down the river. Some really reek ..but others are almost picturesque. He says he wants to go to one where, he hears ..elderberry and willow trees grow wild ..and you can watch the egrets nest. I tell him he ought to write a travel guide to the swamps and waterways that run below the city of L.A. They’re sort of a blank spot that most people either miss ..or glimpse from an overpass ..then instantly forget.

Wednesday, October 21, 2009

The crapshoot

The headline says: “The pace of foreclosures is slowing down in California” ..and it makes me feel good to think that more people are able to afford homes and, by extension ..the economy is getting better. Reading on, however, it turns out I’m wrong. Just as many people are in default as ever .. but fewer of them are going the distance to foreclosure. That’s good news. I tell myself it’s because banks are learning that it’s better to let people stay in their homes ..they lose money auctioning off foreclosed property. I used to tell people, facing foreclosure, always go to the bargaining table ..bankers are reasonable people ..right ? Well, it didn’t always work out that way and now I’m finding out I was seriously mistaken. Banks don’t act reasonably ..they are not good business people ..they’re order takers. And they are not learning anything new (as I had hoped). It says here that the only reason they’re showing leniency now is because they’re afraid if they don’t ..the government will change the rules and allow homeowners to protect their property in bankruptcy court. Now I’m reading where Bank of America insists they can sell foreclosed properties profitably. Since this runs counter to my beliefs, I look back at the article ..and shake my head. My mistake .. Bank of America didn’t say they could sell foreclosed properties profitably .. they said they could sell them more efficiently. Now, I feel a sliding sensation I sometimes get while reading about the economy ..like the wheels of my car aren’t firmly on the road. I’m sitting at my computer but I have this feeling I’m in a sideways drift. Like everything I know is wrong ..or at least suspect. Now I’m wondering how often I misinterpret what I read. Now I’m wondering how often I misread what other people are telling me. Now I’m wondering how often other people misread what I say ..and think I’m deranged. I remember somebody once told me that communication is a probabilistic event. Like a crapshoot. Now I’m wondering whether or not I should read ‘The Glass Bead Game’ by Hesse. Now I’m asking myself what the hell that has got to do with anything.

Wednesday, September 16, 2009

A most lucid explanation

If I understand what he’s saying correctly ..the current economic crises can be traced back to the Reagan Administration. In 1980 they deregulated the Savings and Loan industry ..which put the business of making home loans in the hands of amateurs. Then, in 1987 ..the Reagan Administration had to bail out the Savings and Loan industry when it collapsed under the weight of it’s own incompetence (and unbridled greed). The Federal government allowed the Savings and Loans to package questionable loans, and sell them as stocks ..or mortgage-backed securities. It was mortgage-backed securities that helped make the housing slump of 2006–2007 ..go global in 2008 ..and wipe out investment houses from Bear Stearns to Deutsche Industriebank

Saturday, August 15, 2009

Grand Junction

Written in response to an article in the LA Times ~~> microcosm

I wonder how the patient-doctor ratio in Grand Junction compares with Los Angeles. I suspect it’s lower, meaning there are more doctors to go around. That’s probably why they are able to collectively agree on a pricing strategy that benefits all. One of the major factors contributing to healthcare costs in this country is a shortage of doctors. Medical schools don’t admit and graduate a sufficient supply, even though there are more than enough qualified candidates. I believe they do this purposely in order to keep the profession lucrative.

Friday, November 21, 2008

Fire update

Helicopters routinely hover then pass. Still smells like someone had a campfire in my backyard. Mark and Amanda are home after spending the week in Santa Cruz ..she’s expecting and didn’t want to share the air she was inhaling around here. It’s all right now .. our homes were spared. It’s been a hectic week though .. I had roommates who were made homeless by the fire. They’re taken care of .. I’m surprised how quickly that went. They told me that insurance companies subscribe to the ‘broken window’ theory of economics (?) .. the faster they get a neighborhood restored .. the fewer claims they get for theft and vandalism later. I can already hear the sound of hammers pounding ..and a new cycle of teardown and regrowth begins (my way of putting it philosophically).

Saturday, October 25, 2008

Wheel inside a wheel

I’m still upset about my conversation with Jim yesterday. I need some reassurance, so ..I call my friend Marty; a financial planner in Laguna Beach. He sounds really shook. He tells me that he’s having panic attacks and trouble sleeping at night. Three years ago, about the height of the real estate market ..he was afraid the bubble was going to burst ..so he sold his ranch in Trabuco Canyon and moved to a small apartment in town. He put the money he made into the stock market. Now he’s watching his investments evaporate ..and says it feels like he stepped off a cliff ..and he’s still falling. I guess he didn’t see it coming ..but then ..who did. Worst part of it is, he says, his clients call him everyday going: “Marty, I can’t take it anymore ..cash me out.” I tell him to hang-in there ..ride it out (surfing term) ..it can only get better. He says he’s gotta’ go now and put dinner ..or his head ..in the oven. The poor guy feels worse than I do. I conclude that it doesn’t matter which party is in power ..the markets are like a cycle inside a cycle inside a cycle. Government has about as much chance of harnessing that as they do the weather.

Friday, October 24, 2008

Jim

Jim is furious with me. The closer it gets to election day, the more black and white our thinking becomes. He knows I’m independent ..but socially progressive. To him that’s socialism. Then, like a drop of ink in clear water ..everything turns color. Over the phone, he blames the democrats in congress for the financial mess we’re in. Nothing specific comes to mind so I ask him to explain. Annoyed, he shouts: “you know ..social programs like Fannie Mae”. Being from another generation, it seems like they’ve been around forever ..I Google them and find out they were created in the 1960’s ..and I’m thinking Johnson administration, great society and entitlement programs ..maybe he’s right ..but then, no ..that can’t be ..goes back too far. I go: “Jim, that was forty years ago ..property values have been going up ever since ..what happened ?” He goes: “We have a democratic congress again.” I still don’t see the connection ..so I figure it’s my turn to make up some shit: “Tell you what I think, Jim ..it’s the republican administration’s fault ..they made it easier for banks to make risky loans .. by allowing investment firms (like Lehman Bros.) to buy them and re-sell them in the stock market (I figure, kind of like Fannie Mae ..it let’s the banks off the hook). Silence. “Jim, I think there’s plenty of blame to go around ..” More silence. I’ve crossed the line into irredeemable territory. We end the conversation politely ..but he’s not too pleased with me. I think I need to get one of those books by Dale Carnegie.

Monday, September 1, 2008

Letter to the editor

The Los Angeles Times printed my letter today. It's a response to an article written by economist Dan Ariely, titled ‘Deconstructing confidence’ [link].

Letter:  Dr. Ariely, If exposure to uncontrollable events leads to helplessness ..I’m not sure government regulation is the proper antidote. It seems like this would reduce our sense of control even further. I agree that we’ve experienced an alarming sequence of disasters over the last decade. But, I also believe it’s the experience of overcoming events like these that bolsters confidence ..not relying on ‘government planners’ to circumnavigate them for us. Besides, no one is ever going to eliminate unpredictable events and setbacks. The best we can do is prepare for them by fostering a sense of resilience. That seems like a far better antidote to feelings of helplessness than government regulation.

Tuesday, August 26, 2008

Deconstructing

Another newspaper article caught my attention [link]. Dr. Ariely, a noted economist, cites a landmark study in behavioral science to support his call for more government regulation. While I’m neither for nor against regulation ~ he chose to misinterpret a study I’m familiar with ~ and I need something to write about ~ so bear with me ~ there's a point here somewhere. In 1965, researchers discovered that lab animals, who experience a sequence of uncontrollable events, do not learn future tasks as well as their peers with no such experience. They called this condition ‘learned helplessness’. So now, according to Dr. Ariely, learned helplessness is the reason why Americans are not responding realistically to current economic conditions. Over the last decade, we’ve experienced too many uncontrollable shocks ..things like the Internet crash and the housing collapse. What we need now are more ‘government planners’ to circumvent these things for us. I don’t know, for some reason this doesn’t sound like the proper antidote ~ and ~ pay attention ~ because here's where Dr. Ariely parts ways with the scientific community: the investigators originally working on learned helplessness, discovered that it mimics depression ..and began looking for ways to alleviate it. They found that it takes only a few successes, in situations that people previously considered insurmountable, to restore confidence ..and foster a sense of resilience to future setbacks. Since I don’t think we’re going to eliminate setbacks anytime soon, resilience seems like a far better antidote to feelings of helplessness than government regulation.

Monday, August 11, 2008

Rio Bravo

The war on drugs is claiming more lives than the war in Iraq. In the last eighteen months, 4,000 people have been killed across the US-Mexican border .. I’m talking innocent men, women and children .. many of them shot dead with US supplied weapons. There are so many gun shipments headed that way; they’ve begun calling the Rio Grande the Iron River. It’s enough to supply an army ..and balance the trade deficit. In my opinion, drug traffickers have the upper hand .. they follow the laws of nature and principles of economics ..which trump the laws of US legislators every time. High priced intoxicants head north while high-powered weapons move south to ensure the supply chain. US Border States are wide open for gunrunners. We build toll bridges, fences, guard towers ..patrol them with thousand and thousands of border guards .. yet we've accomplished little to stop another force of nature ..human migration. It’s like trying to package water. So, I guess this means we’ll kill 4,000 more people next year in another senseless war.

Wednesday, July 16, 2008

Shoot out

When I hear about innocent people getting gunned down on the streets of a border-town (see Ciudad Juarez) ..I don’t immediately think of ‘those damn drug traffickers’ ..I think of the US legislators who persist in keeping drug laws on the books ..making smuggling a high risk venture ..commanding high prices for it’s contraband .. enriching drug lords so they can afford private armies to protect their ‘illicit’ enterprise .. and out-gun local law enforcement officials in charge of fighting this fruitless war on drugs. I don’t think it’s the bullet that kills ..it’s a chain of command that begins at the head.

Monday, January 15, 2007

Fortune teller

My sister Cindy is a financial whiz ..she can play the numbers and predict the future of global markets the way other people play the ponies. She’s a master numerologist and has been known to make her devotees a ton of money. You could say that she delivers the goods in a clam shell. A natural born explorer, wherever she goes, adventure and intrigue are bound to follow. She knows how to make ‘em smile ..even while kicking their ass on the tennis court. I ought to know ..the ass was frequently my own.