The hidden logic of life
The hidden logic of life is the latest book by Tim Harford writer of another entertaining book titled "The Economist camouflaged," which started from the question of why we pay for a coffee at Starbacks triple that in a bar (and we will The question here someday).
Let's see what this is about his latest book:
When the price of Coca-Cola goes up, people drink more PEPS i. It is logical. And for the same reason, when the laws were tightened and the penalties are higher, crime decreases, as logical as a worker with incentives in return for results, will seek more. These changes in behavior can be explained on the basis of economic theories, and not because they have to do with the money but because the economy is the study of rational behavior and rational people respond to the compensation and incentives. When the costs or benefits of something change, people change their behavior. But could move this simple theory to all areas of our lives? Sex, society, war, love, racism, labor relations, politics or the game around with what we live every day to Tim Harford has a logic based on the most basic economic principles.
Both books as interviews with Tim are recommended, as you had for over a year and that begins:
Bad idea to point out Tim Harford to have fallen into the temptation to buy a huge television to see the World Cup. "Sure, the price will go down very much after the last match-sentence. From an economic point of view, what we need to get is that a friend buy one, see the matches at home and just make spending at the end of the championship. "
In his tenure in Madrid a few days ago, also made some interesting comments. And I emphasize this question in The Economist, as it is an issue that we have tried hundreds of times in the area of comments.
¿Our parents lived better than us?
When I was a kid, my parents and I never went to restaurants. Do not spend a vacation abroad until I was 12 years. Once, when I was 6 or 7 years, I asked for Christmas a spacecraft. It was quite expensive, about 19 pounds. At home we had a problem with central heating and my father sat me on his knees and told me: "Maybe you do not have your ship because you have to fix the heating."
Finally got that gift, but he would not have had that conversation with me if the heat had not been a problem. Now, for middle-class parents who went to a good college is inconceivable not to go out to dinner or not being able to afford a gift. I do not feel comfortable with the idea that young people's lives today is tougher. We are richer for what were our parents, what happens is that we spend more. It is true that there is a problem with housing, but was eventually resolved itself. Moreover, in Spain doing something we should do in the UK: to build houses.
And posts to ask about recurring themes, attentive to the question:
Prices have fallen, but buying a house in Spain is still expensive. A person who is not 'mounted on the dollar' would you offset rent, mortgage and spend their euros to spend on living life?
It is interesting to note the different traditions of purchase or rental. In the UK we like to buy, as in Spain, and I think this is negative. In Europe, the economies with more tradition of hiring labor markets are more healthy. The same thing happens in the United States. You live rent free. If you rent you can accept a job that might not accept if you have a house. I do not like giving advice, but I would not buy you more flexibility and, as prices are falling, you must think that there is no hurry to buy a flat.
It is a view, the less interesting. For now, I promise to read the book and you comment on that because I thought it (the previous perished me interesting and entertaining although a bit low).
What they surely did not reflect that book is what we are witnessing these days, a year ago barely knew the term "subprime mortgage" seemed somewhat among minority banking specialist and we could not even imagine where it would arrive. It seemed a temporary crisis but we talked, for example, that the investment banking is facing its biggest crisis in 30 years.
The turbulence experienced by the financial markets are the biggest threat to investment banking in the past 30 years, on top of other recent crises such as that of the dotcoms, the black Monday of 1987, the bankruptcy of the LTCM fund or the Asian crisis and Russia of the late nineties. This is one of the conclusions that emerges from a report compiled by Morgan Stanley and Oliver Wyman.
Although, of course, we are talking about future crises those who were unable to see the problems now What makes us think that they are going to get it right this time?.
As part of the casualties of the day, today we have three new low.
Not even a day passes without the real estate crisis leaves the market littered with corpses. Two real estate Valencia (Encoval and Temple) and a consultant to the industry group i have joined the group of those who declare suspension of payments. On Monday the group did Lábaro, the biggest victim, along with the Valencian Llanera, which so far has claimed the crisis of the brick.
One thing is certain, those who are alive, they will do so with strength and health and enviable opportunities.
The good news of the day is that low unemployment in 14,356 people (0.6%). It is a seasonal decline, but it's a drop, which is the important thing.
Written by Carlos Lopez on April 2, 2008 with 222 reviews
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