Economics/Geekonomics

The Letter Heard Round The World

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If you haven’t seen this bouncing around the internet, here you go: a very public letter of resignation from Goldman-Sachs from Greg Smith, one of their executive directors.  You can guess by the fact this is very public he wasn’t happy, and essentially sites a declining culture focused on quick profits over relationships and dehumanizing to clients.

So my guess is that you don’t feel you have to read it because you’re nodding vigorously.  Still, take the time to go through it.

I’ve followed some pushback, but most of it is assuming he was disgruntled – but few disgruntled people tell off a company that large (and to an extent an entire industry) over a low bonus or a lack of promotion.  If that was the case, we’d see a lot more of it.

Curious where Mr. Smith goes next and if this letter will produce any actions or penetrate further into public conciousness.  Certainly there’s concern over financial regulation – and I’m wondering just how badly he’s screwed Goldman-Sachs.

– Steven Savage

 

Finally, Some Good Economic News

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When a site called Layoff Watch says the economic news seems positive, you pay attention.  This is a nice, quick analysis that helps give some perspective on what’s going on.

Now my take on this is that we’ve seen a recovery not so much from effort as a kind of  rebalancing.  Yes, things are better, but we’ve got long-term issues, structural problems, questionable home inventory, and more.  This is positive, but not something to do your happy dance for.

If you’re able to leverage this improving situation, then leverage the hell out of it because I don’t know if it’ll improve or last.  Make those connections, get that job, make that move, and make the most of it to stabilize things for the future.

– Steven Savage

3/9/2011: Gambling Isn’t The Solution

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This is more Geekonomic and Economic than anything else, but Salon.com has a great look at why gambling isn’t the solution to economic problems.  There’s a lot to digest here, and some good comments.

If you consider it, gambling really does hollow out an economy.  It attracts money but does not generate wealth, innovation, goods, etc.  It also appears to force local economies into a kind of supportive overspecialization.  It’s not something, no matter your opinons on gambling, that’s a cure-all.

I bring this up because it applies to a number of issues:

  • Places trying to boost their economies with gambling may fail short term and long term – and fail spectacularly.  You may want to remember that if gambling is coming to your area.
  • If you’re relocating, you may want to scope out the gambling scene considering how popular it is – if your future town is looking for a quick fix, you may want to  look for a different future town.
  • This is an excellent, excellent reminder that there are businesses that create and generate and those that just take money in.

– Steven Savage