No not the drug in this case (although you shouldn't mess with that either) but the pop (or soda).
Jail for Coke recipe thief
Friday, May 25, 2007
Wednesday, May 23, 2007
One Atmosphere, One Market?
On Singer:
I was worried at first where Singer was going with his policy recommendations. Knowing some of Singer's other beliefs (that everyone making over marginal utility, i.e. the median income, should give all excess to developing nations) I was curious as to what Singer would suggest to solve the global warming crisis. His suggestion was reasonable, establish a global carbon trading scheme based on per capita emissions. While such a policy would be difficult to implement globally, I feel it is optimal for three reasons.
1) A carbon trading scheme would incorporate market forces into remedying the current problem of social costs not being equal to private costs. As the Butler piece said, one way of rectifying pollution is to assign private property rights. The private property helps equalize the difference between the previously mentioned social and private costs. With the atmosphere this is a difficult task. A carbon trading scheme would implement so form of property rights through the use of quotas. Note, that this is an indirect method, though it is the most feasible. Accordingly, flaws will still exist and social vs private costs will not be fully equalized.
2) Carbon trading is probably the cheapest yet most effective way to help the environment. I say probably because the full effects of climate change have not yet been documented (and won't be until after the fact). This plan directly targets the negative externality, that is CO2, and minimizes spill over effects. That keeps costs low and forces firms and states to reduce CO2 and not necessarily industrial production, but rather those industries that are least efficient. I would much rather have a non zero sum game that forces all players to develop and innovate than wait and try to minimizes the global effect from climate change.
3) Such a system is the only practical solution for dealing with global warming. There are two possibilities in regards to human instigated global climate change:
a) we are causing it
b) we aren't causing it/it's not really happening
If b is true and we implement a trading system, what have we lost? Increased amounts of CO2 in the air. In essence, we have minimalized a pollutant. The pay off may not be that great to some, but consider the alternatives. We do nothing and global warming is in fact caused by humans. We are now forced to pay the costs of adapting to the new situation (To say nothing of the potential spillover effects in disease, agriculture, and insurance). The other possibility is that we implement a far more bureaucratic and draconian system. No matter what the circumstances, carbon trading seems to be the best option.
(On a side note, it is commonly said that countries who trade together, fight less. If so, I wonder what effect carbon trading would have on international diplomacy.)
I was worried at first where Singer was going with his policy recommendations. Knowing some of Singer's other beliefs (that everyone making over marginal utility, i.e. the median income, should give all excess to developing nations) I was curious as to what Singer would suggest to solve the global warming crisis. His suggestion was reasonable, establish a global carbon trading scheme based on per capita emissions. While such a policy would be difficult to implement globally, I feel it is optimal for three reasons.
1) A carbon trading scheme would incorporate market forces into remedying the current problem of social costs not being equal to private costs. As the Butler piece said, one way of rectifying pollution is to assign private property rights. The private property helps equalize the difference between the previously mentioned social and private costs. With the atmosphere this is a difficult task. A carbon trading scheme would implement so form of property rights through the use of quotas. Note, that this is an indirect method, though it is the most feasible. Accordingly, flaws will still exist and social vs private costs will not be fully equalized.
2) Carbon trading is probably the cheapest yet most effective way to help the environment. I say probably because the full effects of climate change have not yet been documented (and won't be until after the fact). This plan directly targets the negative externality, that is CO2, and minimizes spill over effects. That keeps costs low and forces firms and states to reduce CO2 and not necessarily industrial production, but rather those industries that are least efficient. I would much rather have a non zero sum game that forces all players to develop and innovate than wait and try to minimizes the global effect from climate change.
3) Such a system is the only practical solution for dealing with global warming. There are two possibilities in regards to human instigated global climate change:
a) we are causing it
b) we aren't causing it/it's not really happening
If b is true and we implement a trading system, what have we lost? Increased amounts of CO2 in the air. In essence, we have minimalized a pollutant. The pay off may not be that great to some, but consider the alternatives. We do nothing and global warming is in fact caused by humans. We are now forced to pay the costs of adapting to the new situation (To say nothing of the potential spillover effects in disease, agriculture, and insurance). The other possibility is that we implement a far more bureaucratic and draconian system. No matter what the circumstances, carbon trading seems to be the best option.
(On a side note, it is commonly said that countries who trade together, fight less. If so, I wonder what effect carbon trading would have on international diplomacy.)
Thursday, May 17, 2007
This just in....
Reports now indicate that Wolfolitz will resign this June. Hmm, what British Prime Minister steps down at around the same time.....
A bet
In light of recent insider information, I am going to go out on a limb here and bet that Tony Blair will be the next President of the World Bank. I don't know about you, but I am excited about more years of Blair in the public eye. I need my daily does of Centre-left British Politicians with cool hair.
Tuesday, May 15, 2007
On Wolf + The Corporation
The corporation is an interesting creature. While absolutely necessary for modern capitalism, it remains one of the free market's starkest opponent. When judging the value of the modern corporation, it is first necessary to note that each and every corporation is different. Business methods, objectives, products, and leadership all differentiate one corporation from another. So when criticizing the multinational corporation, it is important necessary to be as specific and directed as possible. It is also important to recognize that within a single corporation, different companies and branches can exist.
I based on what I said above, I don't think it's fair to say that the corporation as a whole is a bad thing. Furthermore, I don't think corporations as a whole are responsible for the current state of the developing world. I do think that overall corporations role has been extremely positive to the economic growth of the developing nations.
One of the dangers from the Left's criticism of corporations as a threat to the globe is that it homogenizes the various firms out there. By doing so, they lump the good with the bad, and assign both a moral equivalence when one definitely does not exist.
Having said all that, I feel that anyone with a true pro-market stance must approach multinationals with the same skepticism reserved for the state. Too often, individuals sympathetic to capitalism feel the need to identify with companies. However, being probusiness undermines markets. Companies have it in their interest to fix the rules of the game (through the legislative process) so that competition is minimized or outright eliminated. Any policy supported by the business community should be examined closely. One must ask who this policy favors, whether it enables more or less competition, and if said policy enables economic liberty.
I think the most valid criticism launched against large sized corporations is their role within the legislative process. TRIPS, $90 billion dollars in corporate welfare, the CAP, and other policies are all anti-market, but pro-business. These policies were crafted because of corporate influence. Imagine then, that if companies can get significant policies enacted in the developed world, then the degree of influence exerted over small, static economies must be greater.
But like Wolf said, this is an unfortunate side effect from democracy. Instead of wide reaching reform minimizing lobbying power, greater activism is needer on the part of other sectors of society, especially the free-market element. But this is a matter for another post.
I based on what I said above, I don't think it's fair to say that the corporation as a whole is a bad thing. Furthermore, I don't think corporations as a whole are responsible for the current state of the developing world. I do think that overall corporations role has been extremely positive to the economic growth of the developing nations.
One of the dangers from the Left's criticism of corporations as a threat to the globe is that it homogenizes the various firms out there. By doing so, they lump the good with the bad, and assign both a moral equivalence when one definitely does not exist.
Having said all that, I feel that anyone with a true pro-market stance must approach multinationals with the same skepticism reserved for the state. Too often, individuals sympathetic to capitalism feel the need to identify with companies. However, being probusiness undermines markets. Companies have it in their interest to fix the rules of the game (through the legislative process) so that competition is minimized or outright eliminated. Any policy supported by the business community should be examined closely. One must ask who this policy favors, whether it enables more or less competition, and if said policy enables economic liberty.
I think the most valid criticism launched against large sized corporations is their role within the legislative process. TRIPS, $90 billion dollars in corporate welfare, the CAP, and other policies are all anti-market, but pro-business. These policies were crafted because of corporate influence. Imagine then, that if companies can get significant policies enacted in the developed world, then the degree of influence exerted over small, static economies must be greater.
But like Wolf said, this is an unfortunate side effect from democracy. Instead of wide reaching reform minimizing lobbying power, greater activism is needer on the part of other sectors of society, especially the free-market element. But this is a matter for another post.
Vermont = Tax haven?
Who Knew?
Green Mountain Tax Haven
http://www.projo.com/opinion/editorials/content/ED_vermont11_05-11-07_SK57N65.1cc1b18.html
Green Mountain Tax Haven
http://www.projo.com/opinion/editorials/content/ED_vermont11_05-11-07_SK57N65.1cc1b18.html
Thursday, May 10, 2007
Where to spend those dollars?
A quick post, on where China's is spending it's windfall.
Consequences of Abdication
More to explore with this in a later post.
Consequences of Abdication
More to explore with this in a later post.
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