economics

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

Geekonomic News 2/13/2012

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Record unemployment for youth in America – as in worse in 60 years.  Oddly (or impressively) many are positive, which may actually help them weather this.  However unless there are some changes, the impact of the economic stupidity of the last decade is going to last a generation.

Politically, and by "politicially" I mean "usually talked about by people with no clue," entitlements are often controversial and usually associated with urban areas.  The reality is quite different.

– Steven Savage

New Regulations, Wall Street Bonuses, And The Economy

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Even if you're not the economic type, at least skim this article on how Wall Street is adjusting to new regulations and new realities.  It's an interesting overview of what's going on, and codifies a few trends I've been wondering about (roughly, I think Wall Street really is in a kind of existential crisis and people don't fully get the impact of new regulation).

My favorite money quote:

“If you’re a smart Ph.D. from MIT, you’d never go to Wall Street now,” says a hedge-fund executive. “You’d go to Silicon Valley. There’s at least a prospect for a huge gain. You’d have the potential to be the next Mark Zuckerberg. It looks like he has a lot more fun.”

Awesome.  Come on over guys, I know a great few restauraunts to take you to while you go and make a real, productive business.  Also, I could use another roommate.

– Steven Savage