Friday, December 11, 2009

The Economy I

Moral: Wherein the comment of "it's the economy, stupid" may be seen as stupid in itself. What are those 'things economic' about which we need to speak?


As the index in the title implies, this'll take a while, just like with the consumer, as we'll be looking at things in depth and from a first principles perspective. Some of these things will be roles and resources. But, first, a few musings are in order.

Earlier, an issue of The Atlantic offered several gems, one related to China's growing role and the other to Paul as CEO. There are some other articles from that same issue that relate to the theme.

For one, given that we're hearing about fiction in finance in a public forum, we have to give a nod to the old, bearded guy, namely Marx, he who never left. Hitchens, in his article, suggests that Marx did not believe in 'the economy' as an organism. Many might be surprised to note that their own concept assumes such; do we not like to attach human meaning to collectives, beyond that of the players, to wit our legal proclivity to award the corporation with personhood?

So which is it? The abstracted view of game theory or a more biologically oriented metaphor that applies here? Well, we'll be showing that it's a little of each.

Aside: Wiki has a nice overview which we'll be getting back to from time to time. As John Cassidy in the New Yorker wrote, Marx's "books will be worth reading as long as capitalism endures."

As well as look at what this thing is, we'll need to address: whose economy is it? Capitalists (fat cats, etc.)? The best and brightest? Game players? Bankers? Consumer? Oh yes, that final as this class is given a debt load of gigantic proportions and of no generational limit.

So, we can skip 'the economy' and talk things economic, like money and a whole bunch of other things.

Another article is titled Macroegonomics (needs no explanation) with the images of Alan and Big Ben figuring prominently. This is worth the read to get another overview of the recent problem. Of course, remember that instability is not a priori bad. In fact, some types of flight manage to exploit the dynamics. It's the 'ego' in the gab standard that may be the underlying problem.

04/27/2010 -- Need to add the political set of truths, such as cat and mouse.

01/27/2010 -- Yet, the notion persists. What is one to do?

12/24/2009 -- Economy II.

12/15/2009 -- Requiem for the dollar (WSJ) and responses.

Modified: 09/27/2010

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