Archive for the ‘Financial Markets’ Category

People on third base claiming they hit a triple, or marginal product theory at work…not!

July 3rd, 2015

One of the less defensible assumptions of microeconomics is that people get paid their “marginal product,” i.e., their wage equals the value of the output they produce. Thus, according to the theory, if the last worker hired is being paid an hourly wage less than the value of the firm’s output per hour, if would… Read more

Why is it so hard to regulate the banks? It’s less the complexity than the political power.

May 31st, 2015

Give a read to this incisive analysis by Adam Davidson on the challenge of regulating banks. It’s deceptively hard to write about this world as clearly as Davidson does here (I tried to do so in Chapter 7 of The Reconnection Agenda; not sure how well I succeeded). I think his conclusion is unduly pessimistic,… Read more