Category Archives: Quote

Beyond Consumer Culture

Asides, Quote

[P]sychological evidence suggests that is is close relationships, a meaningful life, economic security, and health that contribute most to well-being. While there are marked improvements in happiness when people at low levels of income earn more (as their economic security improves and their range of opportunities grows), as incomes increase this extra earning power converts less effectively into increased happiness. In part, this may stem from people’s tendency to habituate to the consumption level they are exposed to. Goods that were once perceived as luxuries can over time be seen as entitlements or event necessities.

By the 1960s, for instance, the Japanese already viewed a fan, a washingmachine, and electric rice cookers as essential goods for a satisfactory living standard. In due course, a car, an air conditioner, and a color television were added to the list of “essentials.” And in the United States, 83 percent of people saw clothes dryers as a necessity in 2006. Even products around only a short time quickly become viewed as necessities. Half of Americans now think they must have a mobile phone, and one third of them see a high-speed Internet connection as essential.

Emphasis mine. From the State of the World 2010: Transforming Cultures. They also have a nice, WordPress-powered blog. (A necessity.) You can see the context of the quote in Google Books.

Irrational Finance

Quote

Two excerpts from Rational Irrationality: The real reason that capitalism is so crash-prone.

What boosts a firm’s stock price, and the boss’s standing, is a rapid expansion in revenues and market share. Privately, he may harbor reservations about a particular business line, such as subprime securitization. But, once his peers have entered the field, and are making money, his firm has little choice except to join them. C.E.O.s certainly don’t have much personal incentive to exercise caution. Most of them receive compensation packages loaded with stock options, which reward them for delivering extraordinary growth rather than maintaining product quality and protecting their firm’s reputation.

Here is another on financial innovation, which made me think of my bank post:

Limiting the development of those securities would stifle innovation, the financial industry contends. But that’s precisely the point. “The goal is not to have the most advanced financial system, but a financial system that is reasonably advanced but robust,” Viral V. Acharya and Matthew Richardson, two economists at N.Y.U.’s Stern School of Business, wrote in a recent paper. “That’s no different from what we seek in other areas of human activity. We don’t use the most advanced aircraft to move millions of people around the world. We use reasonably advanced aircrafts whose designs have proved to be reliable.”

Original Indiana Jones

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For the first time in his life Rahn met someone even more obsessed with finding the Grail than he was. Indeed, so confident was Himmler of finding the Grail that he’d already prepared a castle – Wewelsburg in Westphalia – for its arrival. In the basement, surrounded by busts of prominent Nazis, was an empty plinth where the Grail would go.

The original Indiana Jones: Otto Rahn and the temple of doom. Truth is stranger than fiction.

Optimism Tax

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Around 1:00 am on Halloween, I hailed a cab with a friend. “Drive around to the front of this building. Can ya leave the meter running while I go inside to tell our friends that we’ve left? Thanks, man… I appreciate it.”

A few minutes later, the cabbie told my friend to run inside and get me because he was in a hurry and had someone waiting.

— John “Halcyon” Styn beginning a story on the Optimism Tax, which I paid today in the form of a GPS, some sunglasses, and an original PalmPilot. “[A] small price to pay to be able to continue trusting people.”