Mexico: China’s Hub in the Americas?

Mexico works to become China’s hub in Latin America.  President Enrique Pena Nieto traveld to China for the Asia-Pacfic Economic Cooperation summit.  He explained the benefits Mexico offers for investment.  He wants investors to turn the country into a logistics platform for the Mexican market and other countries in North and South America.

Mexico’s industry is wary of Chinese imports that compete with low prices.  Pena Nieto pointed out that Mexico is looking for a partner not an importer of low quality and inexpensive products.

Mexico would like to sign agreements to help create jobs and resources to help overcome inequality and poverty in the country.

Mexico Wants Business Partners Everywhere

Nothing Like a Game Dame for the NBA

David Zirin writes: Ccongressional shields and anti-trust exemptions enable pro sports to operate in a constitution-free zone, without the customary rights accorded in labor law. You get drafted to your city of work, a salary cap determines what you can make, and, arbitrarily, you can be deemed not old enough to work.

wages are artificially capped, with the supposed business geniuses that own NBA franchises protected from their own checkbooks like over-caffeinated teenagers. It does not change an accepted narrative that trickles down into the main vein of US life: that the bosses always know and do what’s best.

Michele Roberts took a blowtorch to this narrative, saying, “I don’t know of any space other than the world of sports where there’s this notion that we will artificially deflate what someone’s able to make, just because. It’s incredibly un-American. My DNA is offended by it.”

She also said that the current revenue split, where 50 percent goes to ownership, was ridiculous and would change when the players opt out of the current CBA a CBA that shifted billions of dollars in wealth from players to owners and renegotiates in 2017.

Game Dame

Net Neutrality?

Tim Wu, who ran a complelling race for Lieutenant Governor in NY and is a professor at Columbia Law School, writes:  A neutral network might be designed without legal prodding – as in the original internet.   In an ideal world, either competition or enlightened self-interest might drive carriers to design neutral networks.

The problem now is favoritsim by the carriers to certain subscribers.  If there were no favoritism and if the carriers were not allowed to use the information that flowed through the wires, cables and ether, they would have to be subscription based.  Companies like Verizon are now.  Google of course is not. Europeans are more sensitive to privacy issues than people in the US.  NSA and Edward Snowden have made this issue more prominent.

Preisdent Obama has come out for net neutrality.  Under this concept, the internet would be treated like a utility.

Net Neutrality

Corruption in Iran

Sooner rather than later, Iran will open up to the Western worlld.  The following reports on economic problems in the country  that particulary impact women and children.

If Iranian President Hassan Rouhani were to battle poverty as he said he would, he must address the corruption that resulted from efforts to evade sanctions.

The Statistical Center of Iran released a report last month showing the average expediture for an  urban household is about 10,925,000 rials ($336), much lower than 25 million rials ($780) estimated by independent economists..

Thirty-six years after the “anti-capitalist” revolution, Islamic leaders have failed to ensure the fair distribution of wealth and equality of opportunity. In Iran, 7 million people now live in absolute poverty and their food security is at risk. At the other end, 5 million are superich with wealth comparable to that of the richest Americans, as Labor Minister Ali Rabiee has put it.

Fighting poverty has been a focal point for President Hassan Rouhani since he took office last summer. In his Oct. 22 speech in the northwestern city of Zanjan, the president reiterated there was “no evil worse than unemployment and poverty.”

Officials predict that unemployment will become a major issue in a few years when about 4 million unskilled university graduates join the 4 million unemployed.  According to the latest data available, in the last fiscal year, almost one-fourth (24%) of Iranian households did not have even one employed member. The figure was 10% back in 1992-93, indicating that many families have lost a reliable income source since 21 years ago.

In the past year, measures taken by Rouhani’s economic team have helped curb inflation and end two years of negative growth, but observers believe the moderate president will face grave challenges in reducing poverty as the lucrative parts of the economy are mainly controlled by either the government or semi-private entities that have close links with power circles.

So far, Rouhani has adopted a three-part policy to assist the most vulnerable population in the short run, earn the trust of the private sector in the middle term and achieve sustainable economic development in the long run, with each requiring a separate strategy.   Iranian Economy

Lining Up for Food Supplies in Teheran

 

War on Women?

Heather Wilhelm writes: If you follow the antics of modern “feminism”—or even if you desperately try to ignore them—you’ve probably witnessed the following sad and wacky spectacle: Every week or so, certain clusters of cloistered, college-educated, first-world women will dredge the darker realms of the Internet for some new form of oppression to call their own.

It was refreshing, then, to see many of America’s much-touted, reproduction-obsessed, faux “War on Women” candidates—most notably Colorado’s Mark Udall and Texas’s Wendy Davis—lose handily in Tuesday’s elections. Equally refreshing was recent news out of Australia, in which the country’s foreign minister, Julie Bishop, told an audience that “feminist” is “not a term that I find particularly useful these days.”  Bishop sees herself, apparently, as a person, not a walking “lady part” grievance machine.“I’m a female politician, I’m a female foreign minister,” Bishop said. “Get over it.”

The bulk of modern feminists probably won’t approve.  Monsters, apparently, are everywhere. “Sexism is not just something that occasionally rears its ugly head,” as feminist writer Jessica Valenti recently warned in the Guardian. “It exists every day in every space.”

Yikes! As a woman who occupies various and sundry spaces on this madcap, whirling sphere, I was certainly surprised to learn this.

“What part of feminism,” asked Clementine Ford, a Melbourne-based feminist and writer, did foreign minister Bishop “find so unappealing?”  The nagging suspicion that most hard-core feminists would happily karate-kick you from behind in a dark alley if you disagree with them. It also could be the repeated public “rage spirals.”

There’s a more serious problem, however: For modern feminists, facts don’t seem to matter, and manufactured crises are all part of a day’s work. As some very real oppression of women unfolds around the globe, today’s Western feminists are busy constructing entire narratives out of false “epidemics”—widespread, sinister “street harassment” is the latest of many—that crumble upon closer examination.

I guess this makes sense, when you think about it: If the “oppression” of American women were to entirely disappear, a whole host of laptop scribblers would face the daunting task of selling “think pieces” about something else, and the only other thing they tend to know about is fusty, boring old Marxist economics. Who, aside from the people who pretended to get beyond Page 2 of Thomas Piketty’s book attacking capitalism, wants to read about that? There’s a delicate economy in the balance here, people—and, no doubt, large piles of unpaid student loans.

So the show must go on. Dilemmas must be concocted, and hackles must be raised. However, judging by the peculiar, stringent waft of its latest narratives, modern feminism might face an interesting test in the coming years—and it could fail that test by seriously misunderstanding what women really want.

Many women, in short, want husbands. A stable marriage is usually the best economic arrangement for all parties involved. The Democrats aren’t alone in getting this.  Desperate to appeal to left-leaning single ladies, the College Republican National Committee recently ran a cringe-worthy ad that compared choosing a candidate to buying a wedding dress.

While this week’s election results suggest that the left’s “War on Women” narrative is sputtering, the progressive dedication to curating the single, female demographic will continue to grow. With that comes a subtle vested interest in keeping more single ladies, well, single. Who needs a husband, after all, when you’ve got Uncle Sam?\

War on Women?

Oil Prices and Governance

As oil prices plummet, consumers are delighted. Oil producers retrench.

OPEC is scrambling to gain control of the market again and meets at the end of November.  Countries desperate to boost prices, like Venezuela and Russia, are also the least democratic. Oil revenue is used to pay off a powerful elite or pay expensive subsidies to the poor. Neither tactic works well over time.

Norway’s example is of a society that decided to secure its own power and position vis  a vis the big oil companies.  Norway is the world’s fifth largest exporter,  They have tried to distribute money fairly and leave an economy for the future which is not oil-based.  Fighting a tendency to have personal favoritism in government is particularly important for oil rich countries.  High levels of trust and transparency are essential.  These stand out in a country like Norway when oil prices fall.

Falling Oil Prices

The Lagarde List in Greece

During the worst of the economic crisis in Greece, Christine Lagarde, former French Finance Minister, gave a list of 2,000 Greek tax evaders who had Swiss bank accounts.  Government officials in Greece claim to have lost the CD the list came on, and then lost the USB drive they copied it on to.  They dragged their heels for months.

In the fall of 2012, a Greek journalist got hold of the list and published it.  Fifty police officers were sent out to arrest the journalist and not the tax evaders.

Corruption has plagued Greece and helped precipitate the economic crisis.  A handful of super-rich, well-connected people own practically all the country’s TV, radio and newspapers.  They also control major banks, as well as oil, shipping and construction businesses.  Tough for the press and independent citizens to go up against.

Lagarde's List

Testosterone and Greed

To keep libidos active after menopause, some women take testossterione.  It turns out that this may make them greedier.

Joe Pinsker wrires:  Results of a study done by researchers at the University of Lausanne ecently published in The Leadership Quarterly suggest that  people with high levels of testosterone were more likely to behave greedily.

There’s already a thorough body of research on how power contorts morality and reason. Power, it’s theorized, turns people selfish because it makes them feel entitled and emotionally detached. It can make them view others as less worthy, which is of course compounded by the finding that power can increase bias. Given also that power makes people feel immune to bad consequences, it makes sense that some of those in power do so many awful things.

Hormones are a less-scrutinized variable in moral decision making. High levels of testosterone have been linked to diminished generosity and empathy, but the connections between testosterone and corruption—defined by Lausanne’s researchers as ignoring social norms for personal gain at others’ expense—hadn’t been sketched until this study.

To trace this relationship, researchers designed two experiments—both variants of what’s called “the dictator game”—that culled subjects from a Swiss university. In the first setup, subjects were randomly assigned to be leaders or followers. Each leader was solely responsible for deciding how to distribute prize money given to the group. For example, leaders at one point chose between “$100 for me; $70 for you,” “$90 for me; $90 for you,” and “$150 for me; $10 for you.” These numbers were selected such that the more the leader chose the receive, the less his or her followers would get. The leaders with more power—that is, with more followers or more distribution choices—behaved more greedily.

The second experiment was more ambitious. Weeks before subjects were assigned leader/follower roles, they filled out a survey about the fairest way to distribute the money. The vast majority of people agreed that the “$100 for me; $70 for you” arrangement was fair—which allowed the researchers to declare that picking “$150 for me; $10 for you” would be violating a norm that everyone agreed on. Subjects also had their mouths swabbed to measure testosterone levels.

During the experiments, once subjects had been named either leaders or followers, they were frequently reminded of the survey results, making them aware of what their peers expected of them. When leaders’ power over a situation was relatively low, roughly half of them stayed true to the social norms they helped develop; this dropped to 19 percent when they were given more power. Also, the greediest behavior was linked to high baseline levels of testosterone.

Susan Case, a professor of organizational behavior at Case Western notes that the average age of the subjects is about 21 years—an age too collegiate to use in generalizing about the corporate world.

From the Lausanne study, it’s not clear whether testosterone levels control corrupt behavior, or whether high levels of it are linked to the presence of some other physiological feature that does.

David Mayer, a management professor at the University of Michigan, points out that this research is similar, in spirit, to fMRI studies indicating which parts of the brain light up when a certain decision is made.

Indeed, what can be done to make business executives more likely to act with the public good in mind?  Iit appears the best way to curb selfish behavior is to turn away from hormones and toward oneself. “Being self-aware … actually reduces people’s tendency to morally disengage from the tasks they are doing and act with greater integrity,” says Fordham University’s Kyle Emich. Specifically, Emich recommends installing mirrors in the offices of the powerful—”so people are forced to look at themselves,” he says.

Testosterone and Greed

Hillary Clinton Flubs a Line

Hillary Clinton’s gaffe does not take her out of the running for President of the US in 2016.  But it shows a weakness.  Joe Biden, another candidate, utters innocent gaffes. He may be dyslexic.  This hardly disqualifies a decent man, with broad foreiign policy experience from running.  In our opinion, the press should lay off his small errors.

Mrs. Clinton’s gaffe about businesses not originating jobs was more sinister.  She seemed to be groping for a phrase some of her political competition uses.  She missed the mark.

A Yale University economiist concluded a decade ago that 2.2 percent of the total present value of social returns to innovation are captured by innovators (although profits to these innovators start out somewhat higher and then decrease rapidly over time.  In other words, nearly 98 percent of the value of technological innovations accrues to consumers (through lower prices and increased productivity) rather than to the inventors themselves.

People who make jobs, enterpeneurs and business people, are to be sure doing this in a country that makes it possible by supporting creativity, risk-taking and effort.  We lead the world in this quality, which is rare and  valuable.  Look at a state like Texas today.  Because it supports this spirit, jobs are plentiful and people are profiting across the board.

Class warfare is not a useful possture from which to improve the economy and create jobs and train people to fill them.

Hillary Cinton Gaffe