The presentation I'm giving at Higher Learning Commission annual conference 2015:
Boeing is learning a hard lesson in what micro-economists call the "theory of the firm". Theory of the firm is the branch of econ that explores the question of "why do corporations exist?" and "why do they vary in size?". First, from the LA Times (much more at the linked article itself): The airliner is … Continue reading Boeing Learns a Lesson In Theory of the Firm – Outsourcing Isn’t Always Profitable
Girl Normal nails it with this post: The Cure Is Worse Than the Disease... It's interesting that the U.S. is one of the very few developed countries (I think New Zealand is the only other) where advertising of prescription drugs is legal. Of course health care costs in the U.S. are waaay higher than any … Continue reading If Drug Ads Were Honest…
From a Republican Vice-Presidential candidate: Too much cannot be said against the men of wealth who sacrifice everything to getting wealth. There is not in the world a more ignoble character than the mere money-getting American, insensible to every duty, regardless of every principle, bent only on amassing a fortune, and putting his fortune only … Continue reading The more things change…
From Naked Capitalism (Yves Smith) (emphases are mine): the blind pursuit of “maximizing shareholder value” is not all it is cracked up to be: The recent productivity report received much attention. But I did not see anyone point out that the spread between nonfarm corporate prices and unit labor cost was 5.25%, the widest spread … Continue reading The Way to Maximize Corporate Profits is not to try to Maximize Profits
Well, actually it likely wouldn't save the whales. But, abolishing patents would likely re-invigorate the economy, revive competition, lower costs (particularly healthcare costs), and speed up innovation. Levine and Boldrin help lay out the case against patents in this piece. An excerpt ( I recommend following the link): Abolishing so-called intellectual "property" (IP) won't solve … Continue reading Save the Whales! Abolish Patents!
Angry Bear explains how mistaken thinking in the US business community from 1960's onward set the stage for the loss of world-wide economic and technology leadership in many industries. A fable: The Guitar Player who sold his gear or, Bruce Henderson vs. Gordon Moore ~ Angry Bear. I spent much of my career from the … Continue reading Angry Bear explains how US businesses failed in the late 20th century