Such sings a song by Seattle rock band Pearl Jam: "It's evolution, baby..." Nowadays, the topic is getting a little bit trite, since this year we are celebrating Charles Darwin's 200th birthday and the 150th anniversary of the first publication of his most (in)famous book, The Origin of the Species; as well, world famous biologist Richard Dawkins has been campaining for evolution (and against intelligent design or creation) in the past few years.
I am a strong believer, and had always had had a hard time putting together evolution and creation, and I think that I've finally accomplished it. Here I must take a pause to thank my brother David for hours of illustrative discussion. So the necessary question is how?
As Economics Nobel laurate, Bob Aumann would say, human experience reality on several planes, each orthogonal to each other. Science is one of those planes, Religion is another. What we experience in science is basically not what we experience through religion. Each has is well delimited space. Science should not even attempt to ask itself about the ontology and axiology of things; it should not try to ask the question: "Does God exist?" It is outside its field of study. As well, Religion and Philosophy should not ask themselves for the scientific proof of things. Mixing pears and apples is not intellectualy honest. Here is where Dawkins erres, what AlvinPlantinga would call "The Dawkins Confusion".
Evolution and Creation are compatible. Evolution (despite its many flaws) is the best scientific model we have to explain the way the different species came to be. Creation is a matter of faith. So we shouldn't sit down to endless discussions of whether we evolved or came from Adam, each in its own field are good explanations.
viernes, 27 de febrero de 2009
martes, 24 de febrero de 2009
Mexico...dear old Mexico
For more on Mexico being a failed State, check
http://online.wsj.com/article/SB1235181025360
and for those of you that understand Spanish...someone standing up to say the truth about Mexican monopolies
http://www.youtube.com/watch?v=yCdOktxWMe0
Enjoy!
http://online.wsj.com/article/SB1235181025360
and for those of you that understand Spanish...someone standing up to say the truth about Mexican monopolies
http://www.youtube.com/watch?v=yCdOktxWMe0
Enjoy!
Institutions and baseball
What do political institutions have in common with baseball?
Basically nothing...Nevertheless, baseball is a good example of how institutions though existing might not operate correctly. MLB is one of the largest buisnesses in the US; and it is one of the most corrupted ones as well.
I was heartbroken when a steroid consuming player such as Barry Bonds broke Hank Aaron's historical record of 755 career home runs. Nonetheless, I figured that a 'clean' player such as alex Rodríguez was just on track to break Bonds' newly instituted record. I was mistaken. Rodríguez is not clean, he's consumed performance enhancing products as well.
And what does the MLB have to say? Not much. Bonds' record stands, Rodríguez keeps on playing... Players that consume illegal substances should be punished for their actions.
Many times we complain about corruption in governmental instances, but what about out sports leagues?
Basically nothing...Nevertheless, baseball is a good example of how institutions though existing might not operate correctly. MLB is one of the largest buisnesses in the US; and it is one of the most corrupted ones as well.
I was heartbroken when a steroid consuming player such as Barry Bonds broke Hank Aaron's historical record of 755 career home runs. Nonetheless, I figured that a 'clean' player such as alex Rodríguez was just on track to break Bonds' newly instituted record. I was mistaken. Rodríguez is not clean, he's consumed performance enhancing products as well.
And what does the MLB have to say? Not much. Bonds' record stands, Rodríguez keeps on playing... Players that consume illegal substances should be punished for their actions.
Many times we complain about corruption in governmental instances, but what about out sports leagues?
viernes, 20 de febrero de 2009
Dubai
Doubts arise around Dubai's financial strength...
check this out:
http://www.nytimes.com/2009/02/12/world/middleeast/12dubai.html?pagewanted=1&_r=2&em
you're in for a shocker!
check this out:
http://www.nytimes.com/2009/02/12/world/middleeast/12dubai.html?pagewanted=1&_r=2&em
you're in for a shocker!
miércoles, 18 de febrero de 2009
domingo, 15 de febrero de 2009
Incentives...it's all about incentives
The title of this post is pretty self-explanatory. Why do we do what we do? Why do criminals choose the non-legal way? Why do politicians give benefits to interest groups? Why are politicians corrupt? Why do bankers give subprime mortgages?
INCENTIVES... its the ever present answer to why do peolpe do things, according to the economic theory. Because benefits from doing something are higher than the costs, just that easy.
So if we want to achieve better outcomes, we've got to start thinking how to give better incenctives to decision takers. We've got to look how is it going to be that the best public policy decisions will be taken. Better institutions is probably the way out.
INCENTIVES... its the ever present answer to why do peolpe do things, according to the economic theory. Because benefits from doing something are higher than the costs, just that easy.
So if we want to achieve better outcomes, we've got to start thinking how to give better incenctives to decision takers. We've got to look how is it going to be that the best public policy decisions will be taken. Better institutions is probably the way out.
martes, 10 de febrero de 2009
The financial crisis
As an economist, people have often asked me why is the financial crisis ocurring. The answer, in the end, is pretty simple. Let's reduce the problem to a single person. When one has too many debts, so that they are impossible to pay and one continues to get more indebted to be able to pay the last debt, so that one is everyday more indebted, eventually the people or banks who we owe money will realize we cannot pay them back. This is known as a Ponzi scheme, such named in honor of Carlo Ponzi, an Italian immigrant who was the one who originated such schemes. Any pyramid scheme in the end is a Ponzi scheme...if you know who Bernie Madoff is, you know the granddaddy of all Ponzi schemes...at least on a micro level.
On the macro level the biggest Ponzi scheme has just recently fell before our eyes. The US was mantaining (yes the US as a country, as a whole) a level of debt towards the whole world that it couldn't pay. The debt became bigger, and bigger, and credit in the US was ever flowing: credit cards, second and third mortgages, financial plans to pay new cars; and the debt got bigger, and the world (China, Mexico, Japan, etc.) continued to lend money to those people that had several mortgages and 5 credit cards (a Visa, a Mastercard, an American Express, a Diner's club, and your local department store credit card) rocketing to the limit.
The Ponzi scheme fell: the debt became unpayable,big banks declared bankrupcy...and credit crunched, and the worst crisis since the Great Depression hit the world. Incentives were ill aligned: banks pushed credit, and people wanted to consume more...so it was, human nature.
Should there be more regulation? Personally I don't think its the way to go, better regulation rather than more is probably the answer.
Will we get out? How and when will we get out? Now those are the difficult questions.
On the macro level the biggest Ponzi scheme has just recently fell before our eyes. The US was mantaining (yes the US as a country, as a whole) a level of debt towards the whole world that it couldn't pay. The debt became bigger, and bigger, and credit in the US was ever flowing: credit cards, second and third mortgages, financial plans to pay new cars; and the debt got bigger, and the world (China, Mexico, Japan, etc.) continued to lend money to those people that had several mortgages and 5 credit cards (a Visa, a Mastercard, an American Express, a Diner's club, and your local department store credit card) rocketing to the limit.
The Ponzi scheme fell: the debt became unpayable,big banks declared bankrupcy...and credit crunched, and the worst crisis since the Great Depression hit the world. Incentives were ill aligned: banks pushed credit, and people wanted to consume more...so it was, human nature.
Should there be more regulation? Personally I don't think its the way to go, better regulation rather than more is probably the answer.
Will we get out? How and when will we get out? Now those are the difficult questions.
jueves, 5 de febrero de 2009
Or are you sad?
Sadness, as is happiness, is a subjective state of mind, triggered I believe by oneself. You make yourself miserable, circumstances don't. Although adversity may be knocking on your door, you can choose the way you face it.
Have you ever thought your situation couldn't be worse? Dear reader, if you are reading this post it means you have access to Internet, and hence to communication and to electricity; and probably to running water, three daily meals, a roof, transportation, clothing, etc. Many people in Pakistan or in Ghana don't have access to these privileges of the modern world.
So if you lost your job, your significant other, crashed your car, are sick, etc. there is probably someone who is faring worse than you are.
Lance Armstrong chose to face his testicular cancer, and after he overcame it, he became the most winning ever cyclist of the Tour de France. Micheal Jordan was told he could never play basketball. Barack Obama is the son of a Kenyan immigrant.
Wath this video, it may inspire you
http://www.clarin.com/shared/v8.1/swf/fullscreen_video.html?archivo=http://videosfla.uigc.net/2008/07/29/rp.
Take advantage of every minute. Live your life. take joy in your children, your marriage, your income, your religion, your health (or lack there of); don't take anything too seriously.
Have you ever thought your situation couldn't be worse? Dear reader, if you are reading this post it means you have access to Internet, and hence to communication and to electricity; and probably to running water, three daily meals, a roof, transportation, clothing, etc. Many people in Pakistan or in Ghana don't have access to these privileges of the modern world.
So if you lost your job, your significant other, crashed your car, are sick, etc. there is probably someone who is faring worse than you are.
Lance Armstrong chose to face his testicular cancer, and after he overcame it, he became the most winning ever cyclist of the Tour de France. Micheal Jordan was told he could never play basketball. Barack Obama is the son of a Kenyan immigrant.
Wath this video, it may inspire you
http://www.clarin.com/shared/v8.1/swf/fullscreen_video.html?archivo=http://videosfla.uigc.net/2008/07/29/rp.
Take advantage of every minute. Live your life. take joy in your children, your marriage, your income, your religion, your health (or lack there of); don't take anything too seriously.
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