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Research on market solutions to today's problems, along with economics and technology news. It's like Fark for capitalists.



 



There are plenty of jobs available, but not enough skilled workers to fill them

Thu, 09 Feb 2012 13:47:01 CST

A whole lot of the chatter we hear about the "decline of manufacturing" in America is utterly wrong. Total manufacturing output is huge, both in volume and dollar terms. But we're producing more with fewer people, because machines are doing more work, and more of the work is technically sophisticated. The idea of being a dummy turning a wrench and taking home a fat paycheck was illusory at best, and the day of high pay for low-skilled work is gone. But a lot of commentators (and probably a lot of parents, too) are far too dismissive of blue-collar work. Modern manufacturing work isn't for idiots, and not for the lazy.



Cities as economic catalysts

Thu, 09 Feb 2012 13:47:01 CST




Des Moines gets a special Foursquare badge

Thu, 09 Feb 2012 13:47:01 CST







When people take "The Onion" literally

Thu, 09 Feb 2012 13:47:01 CST







Des Moines-area river flood stages are rising

Thu, 09 Feb 2012 13:47:01 CST




About that Chrysler Super Bowl ad...

Wed, 08 Feb 2012 13:04:01 CST

The Chrysler ad voiced by Clint Eastwood was good television, no doubt. It's a powerful and emotional spot. But something about it still doesn't sit well, even after a few days of consideration. Yes, the bailouts of GM and Chrysler have turned out pretty well for those two companies. More than $60 billion in government cash infusions will do that sort of thing. But what about everybody else? What about the erosion of the wall between the government and private industry that lingered with the government's continued ownership of minority stakes in both GM and Chrysler? What about the bondholders who were sent straight to third-class treatment behind the government and the UAW when the government and GM agreed to restructure ownership of the company in bankruptcy? What about the shareholders and workers of Ford, Toyota, Honda, Hyundai, and other companies that also build their cars in America, but without bailout funds? Why should Ford have to compete with massive subsidies backing the other two of the Big Detroit Three? What makes Toyota's plant in Indiana, Honda's plant in Ohio, or Hyundai's plant in Alabama any less "American" than similar facilities in Detroit? Subsidizing the poor choices that built up at GM and Chrysler only served to punish the companies that had gotten by on their own. And, to take it a step beyond, why should people in any other American industry have to subsidize just a handful of participants in the automotive industry -- just because it's well-known and politically important? It's not as though a non-bailout world would have meant the end of the automotive industry in Michigan: Had a more natural process taken place, the valuable assets of the companies would have been acquired by others. One thing about what that would have meant: The acquiring companies would, most likely, have been better-managed than the bankrupt companies, and would have been better at putting those resources to work than the management of the bankrupt companies. Don't misinterpret this, of course: Nobody should revel in bankruptices. They hurt a lot of people, and they should be avoided whenever possible. But if they're inevitable -- as they apparently were at GM and Chrysler -- an intervention like the one the Federal government undertook on our behalf can create very visible results, but it hid the damage done to others. It's easy to wave a flag and say "Look at how well Chrysler and GM have done since the bailouts!" It's harder (but no less important) to ask what sacrifices were made by others to make it happen.