Category Archives: Economics

Markets, money, business, and economic thinking.

Day One Wrap Up

Wow, this first and last full day of the conference has been absolutely amazing, in many ways. I’ll blog specifics about each session tomorrow when I’ve had time to soak everything in and review my notes, so let’s call this a short man-on-the-street account of the day. I’m writing this as I upload pictures but the open wireless access point I’m on has a very weak signal so it’s making it a little hard to work. I took about thirty pictures, and many of them came out well so I’m happy with that. They are up now but as of yet uncaptioned. So how was the day?

It got started with me waking up naturally, which was good because I had accidentally set my alarm for PM instead of AM, and if I had been late I never would have lived it down. I walked to the bank, which was close enough to be comfortable but farther than I thought. A walk is a good way to start the morning. There was a “breakfast” with various fruits and light food available, and though I was hungry for something a little more substantial it held me. I found Scott and Iram at a good seat right in the middle of the conference room.

The first session consisteted of Bob McTeer, Rose and Milton Friedman, and Alan Greenspan who joined in over a video link. Greenspan gave a glowing introduction to Milton and it was one of the most sincere speeches I’ve ever heard him give, very conversational and comfortable. (Contrast his reports to congress.) Greenspan stayed in on the conversation that followed for a bit before signing off.

The first session on education dealt with choice in schools and vouchers. I thought it was one of the more productive sessions of the day. After that was lunch where I ended up at a table with Iram, Scott, Steven Landsburg, another fine gentleman from Rochester whose name escapes me, and Tyler Cowen. Our conversations sort of fragmented till I heard the word “blog” from across the table and tried to get their attention for a minute asking if any of them had one. Finally I ended up calling out one of their names and I discovered Tyler blogs at Marginal Revolution, whose name I love, and at The Volokh Conspiracy (less frequently). The conversation that followed was very interesting and ranged from how blogs are changing the way people interact with writing to controlling spam, two topics I find myself coming back to again and again.

The second session is one I’m going to have to think about a lot more. The presenters from PERC (I have no idea what that acronym stands for) basically argued for free market enviromentalism, or that the best way to solve economic problems is by exposing the elements to the open market and letting those forces work things out. The idea was pushed several times that the ideas of socialism and command economies took the better part of a century to defeat, and millions died as a result of that debate not being resolved to the extent that it was clear what choice was the best way to run a country. It follows that the socialist ideas being pushed by many enviromentalists could have a similar effect today. They seemed very serious about what they spoke of, and I respect that. It’s easy to forget that these economic decisions have profound effects on the world.

The third session was, to me, mostly not terribly interesting so I won’t write about it here. After it was done though I did a picture with Milton Friedman.

In the fourth session the topics didn’t seem to mesh like they had in previous sessions but they were all interesting. It got started off with Tyler who I had met earlier (picture) who discussed economics and art, which I’ll write more about later, followed by a paper comparing Capitalism and Freedom and Free to Choose and finally a presentation by Gregory Chow that quite frankly I’m still not sure what to think of but I’ll talk more about all that tomorrow.

After it was all said and done I enjoyed it all but part of me wished there had been more debate or confrontation on the ideas that had been presented. I was reminded of Joi’s complaints of traditional conferences and how the paper presentation model isn’t really that great for taking advantage of the great minds gathered in one spot for this occasion. Dinner, however, proved interesting.

I sat with Scott at the table with Tyler Cowen, Pete Boettke, Greg Chow, and one or two others I couldn’t name. Just a few feet away at the next table were Rose and Milton Friedman sitting with Bob McTeer, Harvery Rosenblum, Ben Benanke, and another Nobel prize winner Gary Becker. At the end of his speech Becker posed a question to Milton Friedman concerning competitive supplies of currency, to which Friedman responded he had no good answer at the moment. However at some point Gregory Chow jumped in (and got a microphone) and it turned into a minature debate between the three which I found quite enjoyable. It went for a bit and it was obvious that some people were getting quite annoyed, though whether it was with Chow himself or Chow’s views (China isn’t as bad as it seems, state run enterprises can work if there’s competition) I don’t quite know. Personally I could have watched them go all night, as it was extremely entertaining and informative, but President McTeer cut things off and the night finished up. Please excuse any typos, I’ll edit this entry and post more about the indvidual sessions tomorrow.

Blogging the Milt Friedman Conference

I knew I kept the economics category around for a good reason. Tonight through Friday I’m going to be in Dallas because I was invited to the “Legacy of Milton and Rose Friedman’s Free to Choose” conference here at the Dallas Federal Reserve Bank. Internet access during the conference is probably not going to happen, as it’s unlikely I’ll be able catch anything wireless or just plug into the wall somewhere, so I can’t promise live-blogging of the sessions, but I can pick up a few access points here where I’m staying so I’ll try to catch up every night. I’m very excited about the oppurtunity to meet Milton Friedman, who was very influential in my early studies. His influence is undeniable, and I’m honored to be here.

The drive was long but in good company with my old friend Iram in the passenger seat. We discussed a lot of current issues, Plato’s Republic which she is also studying, and how our economic viewpoints have changed in the two years since we won the Houston and district-level Fed Challenge competition. I dropped her and her mother at their relative’s house, and made my way back by the Bank where Scott Roman, my former teacher/coach and now head of education for the Dallas Fed, lives and also where I’m crashing. It was a little tricky getting here, but now that I am the exhastion from the drive is starting to catch up with me and I think it’s time for some sleep. Breakfast at 9 tomorrow. Planning to take lots of pictures.

Next Semester

I just finished registering for all my classes and I’m pretty happy with how it’s turned out. I don’t have an amazing Monday–Thursday schedule like I did this semester, but the classes should be quite good. Here’s what I ended up with:

  • 3332: Philosophy of Language
  • 1336: U.S. and Texas Constitutions and Politics — Introduction to the constitutions and politics of the United States and Texas, emphasizing constitutional structure, federalism, separation of powers, limited government, public opinion, elections, and civil liberties. Taught by A. Little, who I had this semester for Politics of the Greek Theatre and was great.
  • 3310: Introduction to Political Theory — Recurring themes and problems in the study of politics; draws upon classical and modern works. Taught by the inimitable R. Lence, who is a very colorful character and a fantastic teacher.
  • 3319: Politics of Social Policy — Public policy initiatives in areas of civil rights, welfare, education, human resources, and housing, including criteria for evaluating proper impact. Taught by R. Lineberry, who I haven’t had yet but is one of the “theorists” of the Political Science department.
  • Jazz Band and Lab — Haven’t finalized all this yet because I haven’t heard back from the director about the times.

You’ll notice there are no economics classes there. This is more a result of the classes I’ve taken than a result of changing interests. I still love economics, in fact I’m going to be interning at the Dallas Fed this summer, but the classes and department seem mediocre. Moreover I’ve been wooed by the Political Science department, as my educational experience with their professors and classes have been outstanding.

In further changes for next semester I’ve decided I’m going to start a notes blog. What I really need is some sort of rich-text document management system, but I can make the blogging paradigm fit my needs. Classes can become categories; everything will be searchable, dated, archived, accessible from anywhere, and support various meta-data. What I’ve been doing so far is a combination of text files and folders, and frankly it’s weak. I haven’t decided yet rather I’m going to make it public or not, but even if I do it probably wouldn’t make sense to anyone but me.

Piece of Cake

The mid-term on ethics was actually pretty easy, and the extra day or two of reading certainly didn’t hurt at all. It is really one of my favorite classes right now, and the professor has a really interesting British accent that seems to keep me quite interested in what he’s saying, or maybe I’m just dreaming. Of course living in Houston I should have a cinch on ethics, since our corporate community has it in bounds.

Over the past 3 hours I have caught up on more email than I thought possible. My inbox no longer runneth over. I have a strangely satisfied feeling that feels like I’ve done something, because email is not just a set of communication, but my inboxes (I have one address for business and one for pleasure) represent a set of things to do, of items screaming for attention in their unassuming way.

This was all done in what I believe to be the most perfect coffee house I have encountered so far: Outlets and ethernet ports every 4 feet and wireless so you don’t need to plug in, a friend who works there, very reasonable prices, good music, and some of the best bread I have ever tasted in my life. Well Sarah’s done with work now so I’m off.

For those that were asking, it’s called Kraftsmen and is at 4100 Montrose, 77006. It’s the place with the giant chessboard and the British telephone booth. Put another way, it’s inbetween the Black Lab and Cezanne’s and the Montrose Public Library. I also found out that they validate parking so that’s a plus.

Notes: The Future: User-Centered Design Goes Mainstream

These are a day late and a little short but I thought I should put them up anyway.

Parrish: Strong claims: power, justice, and change. Aim to strengthen and not quash these principles. Limiting concerns to blogs. Many questions regarding accessibility. Blog tool developers have made many efforts to keep their tools flexible. Celebrate those efforts and use it as a starting point. Other barriers to access: technical, socio-economic, political. If all barriers were gone, would anyone publish anything. Continue reading Notes: The Future: User-Centered Design Goes Mainstream

Notes: The Future: User-Centered Design Goes Mainstream

These are the notes I took, it’s a cross between transcription, commentary, summary, and BS. Hope they’re helpful if you were in another panel or would just like to review what you heard. Leave comments if you got a different impression of the talk or disagree with something I wrote.

Molly Steenson – Professor, GirlWonder.com
Marc Rettig – Professor
Jesse James Garrett – adaptive path; Elements of User Experience

Definition: Throwing away the assumption that you know your users and starting by using techniques of observation, interviewing, and co-designing to create better interfaces.

Marc: Design a vase. Design a way for people to enjoy flowers. A shift from the desginer focusing on the object, and more towards the effects. Understand, then make something that fits.

Jesse: Not existence but rather that it has taken so long for the idea to catch on, new yet obvious thing. Design culture has been so focused on the properties of the object rather than how it actually works. Companies are so turned in on themselves is an amazing revelation.

Marc: Design for the Real World. Industrial designers from 50s and 60s.

Molly: Why has it taken so long to take hold?

Jesse: Increasing complexity of consumer products. As a result, more products that have been brought to Marcet and have failed for reasons the producer couldn’t comprehend.

Marc: It’s stayed in the design camps, just in the last 4-5 years has it been talked about in business circles.

Molly: Will it have an effect? Continue reading Notes: The Future: User-Centered Design Goes Mainstream

Launder Money

Yes it’s true, this evening I laundered about $22. And my wallet. I had a washing mishap not all that long ago, and you’d think I would have learned my lesson by now. The only thing I was terribly worried about in the wallet was my Free Software Foundation membership card/CD. It’s actually a bootable distribution in the shape of a business card and was quite cool. (I’m member #246.) It looks like everything is going to be fine though, even the Sudanese dinars and the “One Free Kiss” card from the Renaissance Festival seemed to have not gotten too mangled.

Reason for War

While browsing around I stumbled on this post which I think makes some very interesting points in terms of the implications for the dollar. Check it out and my response is below. If it wasn’t on LiveJournal I would trackback, but lacking that:

That’s very thorough. I think you have some excellent points, but I think you dismiss fiat money too quickly. It isn’t backed by nothing, it’s backed by all of the goods and services produced in the US. Those goods and services are currently about a quarter of the world’s total, which is far ahead from the second best, Japan.

People put money in America for the very reasons you stated, and it will stay there for those reasons. Without major changes the euro’s future is not bright because (a) they’re trying to take what was a very smart economic union and turn it into some sort of political union, which anyone familiar with European politics will tell you won’t work and (b) they are currently having problems with their unified monetary policy being an ill fit for all involved. The EU does not have the market transparency and labor flexibility that the US has, and probably never will because of deeply ingrained cultural and language issues.

Cookie Price Differences Explained

Well after much Googling, I found two definitive sources that say there are price differences in cookies. I found an article (word document, view as HTML) from the Wall Street Journal that talks about a price war in Michigan between neighbooring councils that had prices at $2.50 and $3.

Girls are told that if customers ask about the price difference, they should explain the economic factors at play — that the Metro council serves four times as many members as its “sister” council, and runs three more camps. Michigan Metro says its troops receive a profit of at least 45 cents on each box sold; in Macomb County, the minimum is 32 cents.

Oh that’s wonderful. Item 9 on this Girl Scout FAQ confirms that prices are set indivdually by over 300 councils.

Such scenarios have been repeated in other parts of the country, as many of the nation’s 330 Girl Scout councils go through their annual pricing debate. Officials say they can’t adopt the simple solution—setting one national price—because their parent organization, Girl Scouts USA, follows the Sherman Act, which prohibits price fixing.

With each council individually incorporated as a nonprofit organization, Girl Scout officials say the law, originally designed to rein in robber barons, could apply to them as well. “In being good citizens, we choose to abide by the spirit of the law,” says Girl Scouts USA spokeswoman Ellen Ach. At a national meeting of council leaders last month in San Diego, Girl Scouts USA officials reiterated their position that prices shouldn’t be discussed among local councils.

So there’s a legal reason for the price differences, but I think it’s highly unlikely that the Girl Scouts of America would be prosecuted under the Sherman Antitrust Act, though personally I think the prices are a bit high. It’s supply and demand, and I think people would buy more at a lower price. They are also outpacing inflation: my simple calculations using the GDP Implicit Price Deflator, which is Greenspan’s favorite measure of inflation, gives me that if a box of Girl Scout cookies was $2.50 in 1996 it should be about $2.80 now, give or take a few cents. There haven’t been any changes in quality I know of, they have a great distribution model, and I don’t see why their costs would have gone up at all to justify that sort of price increase. Just my two dollars and fifty cents…

Spaghetti Supper

Every year the High School for the Performing and Visual Arts, where I studied jazz and classical saxophone for four years, puts on a fund-raising extravaganza called the “Spaghetti Supper.” It features performances from all of the music groups, from the orchestra to the big band. You can go enjoy the music for free, or you can support the school and get some decent food for just a couple of dollars and enjoy the music. The first performances start at 5:15 today, and they go all the way till about 8 or 9. Also at any given moment there are two or three groups performing. HSPVA is located at 4001 Stanford, 77081.

Record Streak Broken

My sinuses do not get along with the rest of my body.

I seem to have contracted what I can only hope is a common cold, with all the symptoms to be expected with such a malady. Now beyond the normal yuckiness, this is espescially a bummer (technical term) because I haven’t gotten sick in a while. Not a while like my Dad, who is remarkably healthy, but long in Matt-time, about 3-4 months. This might not seem significant but if you’ve known me for a while you know that sometimes I’m liable to get sick a lot for extended periods of time. I credit my run of healthiness at least in part to my health-nut former economics teacher, who showed me the wisdom in good living. Overall I’m not too worried about this; I can judge these things pretty well by now and I should be able to get this out of the way pretty soon. Or at least I better–I’m too busy not to! Maybe that’s why I haven’t gotten sick lately, I just haven’t had time.

Hardware Work

It’s strange how tides can change so quickly in my business. I thought my plate was full with three seperate websites in various stages of development, but within the last 48 hours I’ve been contacted by four other clients looking for very traditional consulting work. The “going back to my roots” comment in the cloud post might be turning out truer than I expected. How I got my start in the computer business was six or seven years ago building computers from parts and selling them with razor-thin margins–and really good support. Now all I need to do is start turning a profit . . . 😉

Camera!

Well I am delighted to say that, thanks to some lobbying from my mother and the graciousness of Annette at Best Buy, I have been issued a replacement for my broken P71. Now this is by no means a testament to their superior service; if this camera ever breaks I’m sending it to Sony, not Best Buy. Their replacement plans can be very useful, but I’m not going to waste my money again on a so-called service plan. All in all though I’m just incredibly grateful to have my camera back. I can’t wait to start taking pictures again! 🙂

Cordless MouseMan Optical Mouse

It’s the Mercedes of mice, the one with everything you could ever want in a pointing device. With each item I review here in the Toys section I like to say a little about why in the world I would buy this particular item over all the other available. My personal philosophy is that I spend a lot (perhaps too much) time at a desk and on the computer every day, and I do a lot of work there that earns money, so it’s in my best economic interests to make the environment as comfortable and productive as possible. To this end I tend to spend a little more on interface devices, the things that you actually use to interact with the computer. So, following that logic, the mouse, keyboard, monitor, and chair are four of the most important things about my computer to me. So on to the mouse itself . . .

Is This Thing On?

This is a test entry:

The dog’s bone was tougher than the mystery in episode 14 of “Babylon 5”.
“Charlie’s Angels” was ‘pretty darn’ cool.
So there’s a 4-way intersection with a hundred dollar bill in the middle of it. ‘Yeah?’ “Yes.”
“The way to a man’s heart is through his stomach.”