Oct 19, 2010

Model your life

Each reductionist perspective would generate similarity of our lives, because each one reduces our world into those basic concepts and building blocks. Producer/consumer paradigm, Organization/Agent paradigm, Evolution/Adaption paradigm, supply/demand/conflict/equilibrium paradigm, Structure/Interpretation paradigm, etc. – I have subscribed to each one of them during different stages of my professional career and I still use them from time to time to try to both understand the ontology and solve daily problems.

Oct 5, 2010

The structural problem with U.S. economy

The key problem is the improved producivity in India and China. Under the current foreign exchange framework (which is global in scope) and the monetary and fiscal regime (that are local in each bloc), there inevitably will be an imbalance when productivity level are getting closer. Basically, the majority of the U.S. and EU labor force will be “priced” out by Indian, Brazillian and Chinese counterparts. The solution is not fiscal stimulus but looser immigration control, which allows the inflow of higher caliber population to move into the U.S. in order to sustain the productivity advantage and at the same time, smaller government and less fiscal intervention. Elimination of minimum wage and union monopoly on wage would also help.