16 April 2009

Is the Financial Sector a Utility?

I am a fervent believer in free markets. More specifically I believe that they, much like Democracy, are flawed but vastly superior to any alternative. As various elements in the world decry the current financial crisis as an indictment of the flaws of capitalism, I wait patiently for them to suggest the proven alternative.

Despite this, I am left wondering if the financial sector is an exception to the wisdom of free markets.

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28 March 2009

A Different Kind of Stimulus – Rewarding Our Troops

President Obama has been struggling to sell America on the efficacy of his stimulus plan. While we are looking for “shovel ready” projects to which to direct our stimulus dollar, why not look at our troops? Increased spending and benefits to soldiers would be a public good and morally rewarding.

Is spending money on benefits for soldiers less appealing than spending it on bailing out banks?

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17 March 2009

AIG and Populist Rage

Populist rage is all the…well…rage. Everyone right now is outraged over how much people get paid to do their job poorly, or how much more some people have than everyone else. Now of course you can make arguments that the income distribution of modern society is counter-productive, but one key question is:

Why Do We Care RIGHT NOW?

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25 January 2009

Protectionism: A Prisoner’s Dilemma?

In game theory there is a “game” called the “Prisoner’s Dilemma”. The details of the game are that two players have been arrested. If they cooperate and neither “rats” on the other they will both go free, if one “rats” on the other then the one gets off light and the other one gets a stiff penalty. If they both turn on each other they both get a moderate penalty. In common usage, the basic idea is a situation where each of the parties would be best off if neither of them participated, but much worse off if they don’t participate and the other party does. Is Protectionism an example of such a “game?”

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