Janus’ Musings

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Posts Tagged ‘Economics

Creative Destruction?

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Whatever happened to the concept of “Creative Destruction” in what’s happening in Wall Street? What happened to the concept of not Governments interfering in the market? As Nancy Pelosi put it well, what this is doing is privatizing profits while nationalizing losses. Shameful!

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Written by janusmusings

September 17, 2008 at 1:30 pm

Posted in USA

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GDP per person

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Very perceptive piece in the Economist on measuring GDP v/s GDP per person. I remember this from my EMBA class – that even though it looks like Japan is having a bad time with its economy, even if Japan does 0% growth in GDP on GDP per person basis they would have still grown (due to declining population):

Once you accept that growth in GDP per head is the best way to measure economic performance, the standard definition of a recession—a decline in realGDP over some period (eg, two consecutive quarters or year on year)—also seems flawed. For example, zero GDP growth in Japan, where the population is declining, would still leave the average citizen better off. But in America, the average person would be worse off. A better definition of recession, surely, is a fall in average income per person. On this basis, America has been in recession since the fourth quarter of last year when its GDP rose by an annualised 0.6%, implying that real income per head fell by 0.4%.

Written by janusmusings

March 22, 2008 at 10:14 am

Globalization

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“What’s in a name? That which we call a rose
By any other name would smell as sweet.”
Romeo and Juliet (II, ii, 1-2)

NYT has an article on how globalization is bringing in rose growers in Kenya much needed jobs and money.

Look at the global economy one way and Buyaki earns the equivalent of seven bunches of roses for a month’s labor. That smacks of exploitation. Look at it another and she has a job she’d never have had until globalization came along.

The article ends on sad point – given the recent violence in Kenya:

But life has been hard recently. Kenya’s many tribes have long flocked to the Rift Valley for economic opportunity. So when a disputed election sparked ethnic violence, the local toll was heavy.

Longonot was shut down; Luo employees fled to the west and have not returned; a camp down the road houses about 1,300 refugee Luos in tents.

This violence reflects many things, among them how critical African job-creation is. “These clashes are really about poverty. If people have money, they care less who’s ruling,” Julius Njuguna, a manager, told me.

Think again: roses, refugees and righting African wrongs are linked. A rose that’s a social tool can smell as sweet.

Written by janusmusings

March 20, 2008 at 12:50 am

Posted in Trade

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