Drops in Consumer Confidence

In an article from WSJ, a drop in the consumer confidence index, possible reasons for the drop, and expectations are discussed.  

Looking at possible reasons, "Paul Dales, senior U.S. economist at Capital Economics, said high equity values, rising home prices, and falling gasoline costs indicate that 'confidence should be rising not falling.' He expects the index to rebound before long."  Since the expectations contradicted the drop in consumer confidence, a possible reason in the article is indicated by consumers having a less positive assessment on the job market.  The article also indicates that the drop in confidence has raised questions about consumer spending going forward (in other words, what is to be expected?).   

Based on this article: drop in consumer confidence, the numbers provided, possible reasons, expectations, and the article's link to the labor market, what are your comments?

Potential ideas for conversation could be your personal outlook based on the numbers, was this "unexpected" really unexpected, possibly what you think about influences from international economics at the moment and it's influence on consumer confidence, expectations in the labor market, etc.

http://online.wsj.com/articles/september-u-s-consumer-confidence-unexpectedly-drops-1412086973

People at Risk of Losing Their Health Subsidies

Recently, the Obama Administration has notified hundreds of thousands individuals who signed-up for health care plans with HealthCare.gov that they could potentially lose some or all of their health subsidies if they they do not provide additional information that correlates with IRS data. With a Tuesday deadline, these individuals also face the risk of also owing the government for receiving subsidies they were not eligible for. Most of the documentation issues regard data-matching problems on incomes and citizenship/ immigration status.

Thoughts?

Should the government be blamed for these problems due to the difficulties and technical problems that the Affordable Health Care Act website has?


http://online.wsj.com/articles/hundreds-of-thousands-face-health-law-subsidy-deadline-1412006417

UN Gender Equality Meeting - Boys Only!

Iceland has recently announced a U.N. conference on women and gender equality, however, only men will be involved in this specific conference.  The purpose of this is to start truly getting men involved in the gender equality issue, which has proved quite a challenge, since many women's rights activists are women themselves.  Thinking in terms of our last class, I began to think about externalities regarding the gender pay gap.  While the numbers representing the gender pay gap are highly debated, assuming its existence, if workers (male and female) earned wholly equal wages for the same position I envision a positive externality increasing competition in the work place, leading to higher economic production.

First, do you think this is an effective measure taken by the UN to start involving men in the gender equality push?

And

Second, do you agree with my hypothesized positive external outcome, or do you see wage equality resulting in a different outcome?  Would this even be an externality?

Article from NYT:

http://www.nytimes.com/aponline/2014/09/29/world/europe/ap-un-united-nations-iceland.html?ref=world

Prohibiting On-Campus Smoking

Currently, the University System of Georgia which is made up of 31 public colleges and universities is prohibiting on-campus smoking. According to the Board of Regents, the plan for restricting smoking will be up to each university president to decide. Therefore, students who disobey the new restriction will not be subject to criminal prosecution, but some sort of school punishment. With the restriction going into effect in October, several students are openly doubting the administration and enforcement of the new rule by universities. They believe that the ban will "be ignored and defied."

Is prohibiting on-campus smoking a good idea?

Will colleges in Georgia effectively enforce the new rule?


http://www.nytimes.com/2014/09/29/us/georgia-colleges-prohibiting-tobacco-but-questions-about-enforcement-linger.html

Hong Kong Protests

A couple of good sources on the  protests:



Hong Kong Protests Expose Generational, Economic Divide - WSJ



and footage from a drone to give you a sense of the size of the protest:



 http://www.zerohedge.com/news/2014-09-29/stunning-drone-clip-reveals-massive-size-hong-kong-protest



I thought the generational divide in Hong Kong was interesting especially since I think you can see the same divide throughout the west.   This all is a bit scary, don't you think?

Pro-Democracy Protests in Hong Kong

Hong Kong has recently experienced a large (tens of thousands of people strong) protest demanding for a law allowing residents to vote.  Currently the Chief Executive in Hong Kong is appointed by a committee of approximately 1,200 pro-Beijing members, without any regard to a majority popular vote.  Furthermore, police started using tear gas and pepper spray on the protesters, although, the protestors were offensively attempting to gain ground against the police.  This reminded me two main things.  First, the Arab Spring movement across many dictatorial regimes in the Middle East. While, second; a negative external market failure, in Hong Kong, caused by the protest.

Do you think this "pro-democratic," protest has similar roots to the Arab Spring uprisings?

Could the protests in Hong Kong lead to negative consequences for their economy? OR

Perhaps, maybe a surge for democracy is heading toward China?  Thoughts?

http://online.wsj.com/articles/hong-kongs-pro-democracy-protesters-face-off-against-police-1411876944?mod=WSJ_hp_RightTopStories

Obama Criticizes International Response to Ebola Crisis

In response to the recent Ebola epidemic in West Africa, President Obama argued that the world is not doing enough to combat the crisis at a United Nations meeting last week. He went on to say that the current international response is not enough and that more commitment by individual nations is necessary. Since last week, President Obama has increased the U.S. effort by dispatching approximately 3,000 military personnel to West Africa to assist in treatment aid. Moreover, the World Bank has donated a total of $400 million to the cause to this date. As of right now, there has been 6,263 confirmed cases of Ebola with 2,917 of them being deaths.

Is Obama right in asking for more international commitment to the Ebola Crisis? What else can be done?

Captain Citrus

Although orange juice has been known as a great source of Vitamin C, health conscious Americans have turned away from the breakfast staple due to its high sugar content. According to the U.S. Department of Agriculture, per capita orange juice consumption fallen from 5.8 gallons per person in 1996 to 3.2 gallons in 2012. In order to combat the falling demand of orange juice, an agency that is funded by taxes on Florida-grown oranges, the Florida Department of Citrus, has enlisted the help of Marvel Entertainment to revamp its mascot. The agency hopes that the improved mascot, Captain Citrus, will increase orange juice demand as it appears next to the rest of Marvel’s popular Avengers characters.

Will Captain Citrus be enough to turn orange-juice sales after experiencing a small crop season that was tarnished by a deadly tree disease?

How much of an effect has the White House healthier food initiative had on orange juice sales as it promotes dietary awareness?

http://online.wsj.com/articles/orange-juice-searches-for-a-fresher-image-1411766713

Are The Economics Of Healthcare Getting You Sick?

 This is an interesting article on the profitability of our current healthcare delivery model.  Thoughts?





Are The Economics Of Healthcare Getting You Sick?

The Magic Number That Could End the Ebola Epidemic - Bloomberg

 A mix of positive and negative externalities in this one.



The Magic Number That Could End the Ebola Epidemic - Bloomberg

Detroit's Leaders Reclaim Authority

For the last 18 months, Detroit has been overseen by an emergency manager, Kevyn D. Orr. Mr. Orr, a lawyer from Maryland, was brought in by Governor Snyder to reconstruct Detroit’s financial situation. With the approval of Governor Snyder, Mr. Orr prepared the official documents that declared Detroit’s bankruptcy last June.

As of yesterday, Detroit’s mayor and City Council regained most of their political power. In relinquishing most of his authority back to Detroit’s leaders, Mr. Orr will continue to have authority on all issues related to the bankruptcy. Currently, the city is waiting for a decision from a federal bankruptcy judge about Detroit’s plan to erase more than $7 billion in debt and invest in $1.5 billion in improvements.

Ultimately, does having Detroit’s leaders regain power bring optimism for Detroit’s future?

How do you think the federal bankruptcy judge will act (for or against Detroit’s plan)?

http://www.nytimes.com/2014/09/26/us/detroits-leaders-regain-some-power.html?module=Search&mabReward=relbias%3Ar%2C%7B%222%22%3A%22RI%3A13%22%7D

Bunches of positive externalities in this story

and some negative ones as well.  Thoughts?



Are Bees Back Up on Their Knees? - NYTimes.com

Why aren't the British middle-classes staging a revolution?

This is a fascinating opinion piece in the Telegraph, a British newspaper.   The writer is a lifestyle columnist who says the biggest lifestyle issue for his reader is the erosion of the social contract between Britons of all income levels.  A social contract (my phrase not his) is a joint utility function for a society.  How do you respond to his arguments?



Why aren't the British middle-classes staging a revolution? - Telegraph

Double Irish and a Dutch Sandwich

United States based companies are becoming more and more efficient at evading the (somewhat) hefty 35% corporate tax rate.  This article specifically mentions how Apple and other tech companies can enormously lower their taxed profits (from intellectual property created in the U.S.) by establishing subsidiary firms in Ireland.  Unfortunately the author doesn't go into more specifics about this strategy, however, it's one that Apple pioneered and one that many other multinational technology firms followed.  It's extremely complex, however, I'll offer a consolidated explanation. 

This tax evading strategy is known as a "double Irish with a Dutch sandwich," where multinational firms establish two Irish subsidiary firms (the bread); one located in Ireland and one based in Ireland, yet located in a tax haven such as the Cayman Islands, which is given certain intellectual property rights (mainly specific to technology firms).  Next, a Dutch subsidiary (due to hospitable tax laws in the Netherlands), is established (meat of the "sandwich") and profits are then routed through (in order) the Irish, Dutch, and end in the Irish based subsidiary located in the Cayman Islands.  The end result is a much lower corporate tax levied on these multinational parent companies.  

Similar strategies used by U.S. multinational corporations take place in Switzerland and Luxembourg.  

Do you think this strategy (and others like it) should be allowable or is it a blatant disregard for law?

Should the U.S. lower the corporate tax rate to provide a disincentive for this strategy or make stricter policy to simply outlaw it? 

Politics and Climate Change

Gail Collins has a great piece about climate change in the Times today (click here to go to it)



She says:



There was a time, children, when the parties worked together on
climate-change issues. No more. Only 3 percent of current Republican
members of Congress have been willing to go on record as accepting the
fact that people are causing global warming. That, at least, was the
calculation by PolitiFact, which found a grand total of eight Republican
nondeniers in the House and Senate. That includes Representative
Michael Grimm of New York, who while laudably open-minded on this
subject, is also under indictment for perjury and tax fraud. So we may
be pushing 2 percent in January......In Congress, Republican environmentalists appear to be terrified of what
should be the most basic environmental issue possible. Whitehouse
blames the Supreme Court’s decisions on campaign finance, which gave the
energy barons carte blanche when it comes to spending on election
campaigns. It’s certainly true that there’s no way to tick off
megadonors like the fabled Koch brothers faster than to suggest the
globe is warming.

 

 So, between the externalities and the political failures, Louisiana, Florida, and other areas are seeping away.

A Great Lakes Plan

On Wednesday, the Obama administration shared its concern towards the protection of the Great Lakes from the recent growth of invasive species and toxic algal blooms that pose a threat to the region’s drinking water. Some of the suspected causes of the toxins are runoffs from over fertilization, malfunctioning septic systems and livestock pens. The EPA Great Lakes Regional Director hopes for $300 million a year through 2020 to assist in the effort of cleaning the Great Lakes.

While it is currently being discussed on how best to reduce the toxins, how much government involvement should be taken to reduce these externalities? 

http://online.wsj.com/articles/federal-officials-outline-great-lakes-strategy-1411581647?KEYWORDS=great+lakes+plan

Comcast & TWC Merger

As you all may have heard the buzz since February, Comcast and Time Warner Cable are aggressively pursing a merger in which Comcast would acquire TWC, effectively making Comcast the largest provider of both pay-tv and broadband internet services.  The merger has to be approved by the Federal Communications Commission and the Department of Justice.

The DOJ commonly uses the Herfindahl-Hirschman Index where 1500-2500 points indicates a moderately concentrated market, while above 2500 index points indicates a highly concentrated market.  Early estimates indicate the merger would push the pay-tv service market from 1,815 to 2,454 points (24.54% market share), and the broadband internet from 1,455 to 2,130 points (21.30% market share).  Furthermore, the FCC Chairman has recently argued that the broadband internet market is not competitive.  Last, a few large businesses have issued conditional support to the merger, however, Comcast is playing hardball against these companies, and has staunchly responded to their critics.

Do you think this merger would allow for Comcast to monopolize?

Would this merger bring about a positive or negative outcome for us as consumers?

Article: 

Also, I admittedly found the merger HHI estimates on wikipedia so I'm slightly skeptical, however, they don't seem too far off. 

Obama Pressures China to Curb Global Warming

On Tuesday, President Obama urged China to make similar moves in the reduction of greenhouse-gas emission. Although the United Nations Climate Summit addressed more than 100 world leaders on the issue of climate change, Obama was largely focused on China’s participation. Currently, the United States and China are the biggest contributors to pollution in the world. After proposing regulations on American power plants last June and preparing ambitious new emission targets for 2050, Obama hopes that the Chinese will also make a pledge to curb global warming.

Should President Obama have pressured more countries rather than just China to cut greenhouse-gas emissions? Will Obama’s efforts in reducing greenhouse-gas emissions be effective without the cooperation of more countries (such as Russia, Australia, and India) around the world?

How concerned should we be with the possibility of global warning?

How will these actions affect the coal industry and the U.S. economy?

http://www.nytimes.com/2014/09/24/world/asia/obama-at-un-climate-summit-calls-for-vast-international-effort.html?_r=0

Dads against daughters dating democrats

From a bumper sticker:



 



 This is a fast read over at Vox about political polarization and its impacts on both Congress and society.  Has political polarization led to more social distance?  Or do we just agree not to talk politics with friends with different views?



Read more at:

Here's how many Republicans don't want their kids to marry Democrats - Vox

Justification for U.S. Airstrikes in Syria and Iraq

Legal or Something Else?

In the beginning of class this evening we briefly discussed how the United States is carrying out an airstrike campaign in Syria and Iraq against the Islamic State of Iraq and Syria (ISIS), while justifying their actions by saying there was an imminent threat of attack.  In a recent development, the U.S. has announced that the bombings have extended to the al Qaeda group known as Khorasan.  While the legal basis of the attacks are slightly questionable the article (below) says:

"Senior administration officials said the airstrikes against Khorasan fall within the president's legal basis for striking Islamic State because the group is "an extension of the threat posed by al Qaeda and their associated forces."

Furthermore, the deputy national security advisor Ben Rhodes states that "[Khorasan] had very clear and concrete ambitions to launch external operations against the United States or Europe…" As far as effectiveness of these strikes go, there has been early indications over twitter and jihadist websites that Khorasan leader Muhsin al Fadhli has been killed. 

My questions for you are: 

• Do you think these airstrikes are enough to subdue the threat? 
• Do you agree with the legal basis of this attack based on the evidence discussed by U.S. officials?

http://online.wsj.com/articles/al-qaeda-groups-islamic-state-both-targeted-in-syria-by-u-s-strikes-1411453187

Railways Reshaping Crude Market?

Although pipelines are still the primary carrier of oil pumped in North America, “crude by rail” is growing as an alternative. In 2008, railroad revenues for transferring crude oil were $25.8 million. By 2013, revenues skyrocketed to $2.15 billion. Currently, about 20% of the total oil pumped in the U.S. is being transferred by rails

Even though it may cost more to ship oil by trains than through pipelines, railroads have the benefit of flexibility by being able to deliver oil to more areas. Another benefit is that it has a lower capital expense. On the other hand, a disadvantage of using railways is the possibility of oil-train derailments which cause eruptions. Additionally, environmental factors are a source of concern with the use of more railways.

Can railways reshape the crude oil market or should pipelines continue to be the primary means of transporting oil?

Can federal regulations help reduce the danger and environmental damages of trains or do these potential costs far exceed the potential benefits?

http://online.wsj.com/articles/dangers-aside-railways-reshape-crude-market-1411353150?KEYWORDS=railways

When Humans Lose Control of Government - The Atlantic

 Government is not a market.  It is an alternative form of production which is founded on the need for collective action. 


Modern government is organized on “clear law,” the false premise that by
making laws detailed enough to take in all possible circumstances, we
can avoid human error. And so over the last few decades, law has gotten
ever more granular. But all that regulatory detail, like sediment in a
harbor, makes it hard to get anywhere......What’s the alternative? Put humans back in charge. Law should generally
be an open framework, mainly principles and goals, leaving room for
responsible people to make decisions and be held accountable for
results. Law based on principles leaves room for the decision-maker
always to act on this question: What’s the right thing to do here?



 But can we have principle-based law in an era where political beliefs are so polarized?



When Humans Lose Control of Government - The Atlantic

Paul Krugman On The GOP Paul Ryan And Poverty - Business Insider

Whose money is it anyway?  





Paul Krugman On The GOP Paul Ryan And Poverty - Business Insider

Big demonstration: don't expect action on the climate though

 We will be talking about market and political failures in tonight's class.  This little blog entry contains both concepts.  A bunch of people (between 300,000 and 500,000) demonstrated in New York this weekend demanding political action on climate change, an issue that almost embodies market failure.  What will be the outcome?



[H]olding large rallies doesn’t always result in political change. It is
by organizing at the district level, walking neighborhoods, and putting
pressure on those running for Congress that we would get real
legislative change. Some activists are such purists that they sniff at
giving political contributions. Likewise, disinvestment from oil and
gas companies is a great symbolic gesture but it doesn’t stop global
warming.





NYC Climate Demo: Top 5 Massive Rallies that had no Effect | Informed Comment

The iphone 6

Over the weekend, Apple sold over ten million iphone 6's. Apple was pleased to announce that the iphone not only outperformed the iphone 5 first weekend sales by over 1 million units, but the iphone 6 sales were above Apple's expectations. The excitement over the iphone 6 is its increased screen size, which finally will help apple compete with other big screen phones. Many are skeptical though about how effective apple's new iphone is as a big screen phone compared to other similar phones from competitors. Regardless, Apple is very optimistic about the continued success of the iphone 6. It could be a very scary holiday season for HTC, Samsung, and LG.

Discussion points:
- Do you think the iphone 6 is now the superior big screen phone? Or are people just buying this phone because "its an iphone"?
- Do you think iphone sales will continue to soar? Or will sales slow down now that the first weekend hype is over?

An article for those who want more info: http://www.nytimes.com/2014/09/23/technology/apple-sells-10-million-new-iphones-in-first-weekend.html?ref=business

Why Poor Students Struggle

I know I'm not "supposed to post" or whatever but I thought that this article was extremely timely since Kalamazoo College was just ranked 12th nationally in enrolling PELL grant-eligible students (or students from below the poverty line.) But, as we all have seen, there has been a fair amount of racial and especially socioeconomic friction on campus in the past few years. How do poor students adjust differently in a high achieving college like Kalamazoo? What can Kalamazoo do to help them not feel isolated? Check it out: http://www.nytimes.com/2014/09/22/opinion/why-poor-students-struggle.html?src=me&module=Ribbon&version=origin&region=Header&action=click&contentCollection=Most%20Emailed&pgtype=article

The Legality of Unexpected Costs

Read and Learn:  http://www.nytimes.com/2014/09/21/us/drive-by-doctoring-surprise-medical-bills.html?src=me

A growing trend in the medical field is hiring out-of-network consultations.  These consultations, usually held by the doctor and not the patient can rack up extraordinary costs.  One man was charged over $116,000 for a a doctor that he never consulted with in person but was consulted by his doctor.  Insurance companies are currently paying most of these hidden fees but question the legality of the practice.  The trouble appears to be in the negotiation of the contract and the lack of time to shop around for surgeries.  This prevents consumers from always having full information about the service they will be receiving.

Should hospitals be able to charge patients for a consultation that the patient was not aware was happening simply because a waiver was signed or is this a case of using misleading information to encourage a consumer to purchase a different service than was expected?

The College Market Isn't Competitive

http://www.nytimes.com/2014/09/21/upshot/why-federal-college-ratings-wont-rein-in-tuition.html?ref=us&abt=0002&abg=1

The Obama administration is working on a program that would provide more information on the prices, graduation rates and other information for potential college students.  The program aims to help lower the tuition cost by allowing students to choose the college that best fits their needs in terms of pricing and academic stress.  However many are doubtful that the program will have any effect.  This is because most college students attend public universities who do not act in a competitive market.  There is price discrimination because many of the institutions charge out of state students a higher price than in state students, limiting the competitiveness of the market.

Do you think that providing more information to the consumer's will aid in a student's choice of education, or are the flaws in the market too large to be overcome merely by information?

An Alternative to the Inheritance Tax

The juicy details:  http://www.nytimes.com/2014/09/20/your-money/estate-planning/parents-the-children-will-be-fine-spend-their-inheritance-now.html?ref=business&_r=0

According to a recent study, 86% of adults between 59 and 96 plan on leaving an inheritance to their kids but only 44% of kids between 40 and 60 expect to receive one.  Further there are only 2.4% of kids who expected to receive while their parents did not plan to give.  This means that most adults, who likely are financially stable, are not expecting to receive an inheritance when their parents die.  While not an overwhelming majority, there is still significant feeling that parents would be better off spending their money in their retirement than to leave it for their descendants.  The author thinks that the parents should be utility-maximizing in the strictest sense, and put their money toward their individual happiness not that of their family and community.  This exemplifies two different methods of thinking: the individual vs. the community.

Does the author's idea of spending all of one's money represent the second fundamental theory of welfare economics?  Can resources be reallocated through spending (as compared to a high inheritance tax) and would this eventually lead to an efficient use of resources?

Just a Few More Credit Cards Stolen...

The details:  http://bits.blogs.nytimes.com/2014/09/18/home-depot-says-data-from-56-million-cards-taken-in-breach/?ref=business

Home Depot recently announced that over 56 million cardholders information was lost in a breach to their system.  To add to the damage it was several months before Home Depot was even aware of the issue and began to act to resolve it.  This is the largest single breach of a corporation and it follows the recent scandals involving other big name companies such as Target and UPS.  The exponential increase in stolen credit card information can be extremely worrisome for consumers.  It has been estimated that theft malware has affected over 1000 companies in the United States and this number continues to grow.

 Is this new method of cyber-attacks here to stay or will companies learn to adjust and be able to install better security to protect their client's information?
Will the increase in illegal activity provide any persuasion to consumers to move back towards cash and away from credit card companies or is the easy use of plastic money too tempting? 
What other possible shifts in consumer habits do you see arising from the prevalence of these attacks?

The Scots have spoken...

The results are in and it looks like the United Kingdom shall remain united. Yesterday, the pro Scottish independence movement lost to the "no" independence movement 44.7% to 55.3%, which was a much more decisive victory than pre vote polls predicted. While James Cameron, the British Prime Minister, can breath a sigh of relief, he is also facing some backlash from fellow conservative party members over some of the promises made to Scotland about greater autonomy should they vote to remain in the United Kingdom. There is also now some uncertainty in the British government about military bases in Scotland that would be forced to close should Scotland ever decide to secede from the United Kingdom in the future.

There is much to discuss here:
- Are you surprised by the result of this vote? Why or why not?
- Do you think England will give Scotland greater autonomy as promised during the election?
- Do you think the Scotland will try and declare independence in the future?

Here's an article for reference: http://www.nytimes.com/2014/09/20/world/europe/scotland-independence-vote-no.html?_r=0

Louisiana's Coast Is Sinking - Business Insider

I've read several stories over the past couple of months about beach erosion up and down the east coast.  This story is about Louisiana.  I thought the juxtaposition of reality versus fantasy was interesting.  The map on the right takes into account non-walkable land.  What should the map of Louisiana look like?



 

Louisiana's Coast Is Sinking - Business Insider

The Ziosk: A flop or the future of restaurants?

I discovered this new technology over the summer during my internship. The Ziosk is essentially a tablet that is at one's table at a restaurant. This tablet allows customers to order drinks, appetizers, meals, play games, and pay one's bill. The Ziosk has already been tested in several large and mid sized restaurant chains such as Chili's, Olive Garden, and Abuelo's Mexican restaurants. In a recent update, Darden, the owner of Olive Garden, said that the tablets have increased add-on sales, table turns, tip size and resulted in a 60 percent pay-at-the-table rate, all of which has generated additional revenue. Basically, these tablets have the potential to not only pay for themselves, but generate additional revenue for the restaurants that use them. Several mid sized chains have already entered into partnerships with Ziosk and Austen Mulinder, the CEO of Ziosk, expects his company to have grown six fold by the end of the year. 

Topics for Discussion:

- Do you think Ziosk is the future of restaurants? Or will Ziosk end up fizzling out?

- How could Ziosk permanently change the dining industry?

- As a customer, how would you feel about using a tablet at your table for ordering, paying the bill, and playing games? 

Here's an article about the Ziosk: http://www.bizjournals.com/dallas/news/2014/09/04/ziosk-inks-deal-to-bring-tabletop-tablets-to-all.html

Also, here is a link to the Ziosk website for those interested in learning more: http://www.ziosk.com/

Are Politics Invading Think Tanks?

http://www.nytimes.com/2014/09/18/us/politics/house-proposal-would-require-think-tanks-to-disclose-foreign-funding.html?ref=us

It was resently discovered that many think tanks are receiving funding from foreign governments and entities.  In a worried state, the House of Representatives is considering a bill which would force scholars to share if they have received any international support.  This would include the case when the support is only linked to the scholar and not their recommendations. 

The government is worried that foreign investors may try and push their own agendas onto the U.S. through the think tanks.  There is already a similar law in place for any support received from domestic government sources and lawmakers feel that this would help provide transparency into the perspective behind the scholars ideas. 

Do you believe that think tanks should have increased financial transparency to help lawmakers understand their motives or is this an invasion of privacy that may lead to the rejection of sound ideas simply on the basis that they were sponsored by an enemy of the U.S.?  Do you feel that there may be any major change to the sponsorships of think tanks and further to the creation of technology if foreign governments know that they will no longer remain anonymous?

Mesa feels organic to me

People who live in cities other than in suburbs or rural areas tend to be more liberal and vote democrat than in other places.  Researchers looked for American's most conservative city and decided it was Mesa Arizona.  (see link below).  Doesn't it seem that these cities are all described in terms of organic society with government as the heart center?  And yet, the outcomes in Mesa seem mechanistic to me in many ways.  Comments ?



Mesa, Arizona, Is America's Most Conservative City - POLITICO Magazine

Off-field turmoil in the NFL

Earlier today, Jonathan Dwyer of the Arizona Cardinals was arrested in a domestic abuse investigation. Dwyer has now joined the growing list of NFL stars coming under fire due to allegations of domestic abuse. Ray Rice, Adrian Peterson, and Greg Hardy of the Carolina Panther's have all been accused and, in some cases, found guilty of some form of domestic abuse. Ray Rice has come under fire after a video of him punching his fiance in an elevator. Adrian Peterson is being investigated on child abuse charges after he was accused of disciplining his child with a tree branch (aka a switch). The result of these charges have been suspensions, loss of sponsorships, and loss of endorsements. These suspensions have been highly debated. Many women's rights groups, fans, and sponsors believe that these suspensions are not enough and that the NFL needs to work harder to prevent domestic abuse among its players as well as impose harsher and swifter penalties on those accused. On the other hand, there are those that believe that the NFL is being too hard on these accused players. 

Here are a few questions for you:

- Do you think these suspensions are fair? Why or why not? 

- What is the economic impact, if any, of all the recent off field player drama on the NFL.

- How do you feel about the current NFL policy on dealing with the misbehavior of players off the field?

Here's a New York Times article on the matter: http://www.nytimes.com/2014/09/18/sports/football/nfl.html?hp&action=click&pgtype=Homepage&version=HpSumSmallMediaHigh&module=second-column-region&region=top-news&WT.nav=top-news

Guns in School (For Security Reasons)

For public goods and services to be effective they need to be supplied with certain resources.  Road construction workers need asphalt and paint and public schools need AR-15's and armored vehicles.  The Department of Defense 1033 Program allows the transfer of excess and outdated military weapons to be used by public schools for security programs and to protect our children. However, with many of the donated items not even being used, the program is being called into question and the issue of the appropriate level of government funding and support to a public service is being debated.

The full story can be read at: 
http://online.wsj.com/articles/federal-program-supplies-surplus-military-gear-to-schools-1410884584

Public schools are government funded, which means that the government is responsible for providing them with resources.  Citizens are extremely divided on the issue, some stating that the government needs to be so involved as to provide security weapons to keep kids safe while others argue that this is more intervention than is called for.  This exemplifies the debates that commonly occur between different political typologies.

Is the program necessary or is it over-the-top?
What difficulties are being faced between the two parties understanding each other and reaching a compromise/conclusion?

Self interest needs a bit of government to succeed.....

I can't resist.  Check out http://gawker.com/ayn-rands-capitalist-paradise-is-now-a-greedy-land-grab-1627574870

Drought, Oprah, and the first fundamental theorem

Pareto efficiency at work in Montecito California:

 In January, there was no rain. In February, Mosby announced that Montecito would begin rationing water. Part of the moratorium: a stop to the building of new homes—and heavens!— no new swimming pools. Residents with existing pools or spas were forbidden to empty and refill them with town water.

For the most part, residents have embraced the restrictions, allowing Montecito to cut its water usage by 48 percent and leaving vast aprons of yellowed lawns as evidence. A second five-acre property owned by Oprah—across the street from her estate—has gone to seed. Though a former water hog, Oprah is no longer. “She is the poster child for us,” gushed Mosby in an interview. “She’s doing her part.”

The article points out, however, that Oprah has her own sources of water on her property.  But anyone who uses too much water can pay a fine.  


In May, 837 defiant—or careless—residents coughed up $532,000 in penalties, or a collective overage of about 13 million gallons of town water. The beachfront Biltmore Four Seasons was whacked with a penalty of $48,000 for using about one million gallons over its allotment in April, while a nearby private home sucked up a $30,000 fine for the month for guzzling an extra 750,000 gallons. The district receives about 30 appeals a week. Those who do not pay their bills receive shut off notices— and about 400 were sent out in the last year. The Montecito Water District, which is particularly discreet about its patrons, admits it will rake in close to $4 million in fines this year.

Read more: http://www.politico.com/magazine/story/2014/08/california-drought-lifestyles-of-the-rich-and-parched-110305.html#ixzz3DZQCzqht

So.....is this competition at work?  a market failure? Are you, sitting here in Kalamazoo Michigan affected by this? 

An independent Scotland?

In just a few days, Scottish voters will be faced with a huge and important decision that could drastically impact the future of Scotland: Should Scotland leave the United Kingdom and become an independent nation? Pre election polls show that the result is too close to call as of right now. David Cameron, the U.K. Prime Minister, has urged Scots to vote against the separation. Cameron said that Scottish independence could bring economic risks to Scotland and that a separation from the U.K. would be final. On the other hand, Alex Salmond, the First Minister of Scotland, believes that Scotland is in a great position to become an independent nation. 
"Scotland, with just 1% of the European Union's population, has around 20% of its fish stocks, a quarter of Europe's renewable energy potential and around 60% of the EU's conventional oil reserves," Mr. Salmond said. "Those huge resources, coupled with our massive human talents, means no country has ever been so well placed economically to become independent."
Scots will hit the polls Thursday to make this historic decision. The world will be watching.

My questions for all of you:
- Do you think Scotland should leave the United Kingdom? Why or why not?
- How could Scottish independence affect the United States and the rest of the world economically and geopolitically? 

Here's an article from the Wall Street Journal on the topic: http://online.wsj.com/articles/leaders-differ-on-what-independence-would-mean-to-scotland-1410800712?KEYWORDS=scotland

Also, for those who don't really like reading news articles, I have provided a link to a video of John Oliver from HBO's Last Week Tonight talking about the issue. This video may not be as informative as an actual news article, but I thought it was kind of funny. Just a warning, this show is from HBO so there may be some foul language, just a heads up. https://www.youtube.com/watch?v=-YkLPxQp_y0