Driving to and from NYC, I have been listening to Part 2 of “America and the New Global Economy,” a Teaching Company course. Interesting in every way, the professor, Timothy Taylor, combines a general economic overview with great specific stories as he guides the listener through China, India, the Middle East, Africa and Latin America. Professor Taylor suggests that we should picture mushrooms rather than yeast when thinking of economic growth.Read More
On September 27, I questioned whether anyone could develop a better measure of well-being than the GDP even when Dr. Stiglitz’s commission suggested the possibility.Read More
Perhaps confirming the challenge, several lists of state happiness levels were recently publicized. The 2008 Gallup-Healthways Well-Being Index had Utah as 1, California 9, New York 35 and West Virginia last, at 50. http://www.ahiphiwire.org/WellBeing/Display.aspx?doc_code=RWBStateRanks
By contrast, an article published in Science (12/17/09) tells us not to live in New York or California if we want to be happy. Instead, the results say move to Louisiana!
Happily, they both agree that the people living in Hawaii tend to be the happiest in the country.
Any implications here for changing GDP?
Yesterday I saw “Up in the Air”, the new George Clooney movie that has been called a comedy. As Ryan Bingham, Clooney was a “transition specialist”. Firms hired his employer to “fire” people. Excellent in many ways, the movie was about technology, romance, detachment, and relationships. Also, it was about this recession.Read More
Joe Morgenstern said it best in his Wall Street Journal review:
“When I saw ‘Up in the Air’ at its first public screening at the Telluride Film Festival last summer, I was startled by the eloquence of those vignettes, and admired the director for portraying working-class Americans without a trace of glib pity or condescension. I had no inkling of what is now public knowledge, that the interviewees were real people who had lost real jobs; they’d been invited by Jason Reitman and his colleagues to talk about their experiences on camera.”
Through “Up in the Air”, the unemployment statistics become very real. For November, there were 15 million unemployed and 165,346 individuals fired through 1797 “mass layoff actions”.
Listening to a wonderful Radio Lab (WNYC 10/09/09) podcast on Numbers, I started to think about a comment about what you can learn from a gas pump. $1.40? Maybe a teenager with little to spend. $10.04? Probably a cash payment but the attendant did not turn off the equipment fast enough. $60.00? A person with a credit card and a large gas tank.Read More
Indeed, prices tell a story, provide information, and serve as incentives and disincentives. When prices are set by government, they lose their ability to convey information and affect behavior.
Maybe we can call prices messengers?