Early retirement?

Interesting piece in AccountancyLive, noting that the Supreme Court in the UK has ruled in favor of mandatory retirement at 65 and, in the case at hand, allowing a law firm to retire one of its partners. Continue reading

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Investing versus spending

I rant to my students about the stupidity of government accounting, which fails to distinguish spending on today versus spending on tomorrow. We call the latter investing and it is what we do to make tomorrow possible. Sound investments pay for themselves by making a better future. So now comes another example of silly decision making. Continue reading

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Beautiful Souls

The NY Times Book Review today talked about a book called Beautiful Souls by Eyal Press and, in particular, about a Swiss policeman who broke the Swiss law by allowing Jewish refugees to cross the border. It struck me as I read the review that we have a tendency to focus on the people who did bad and to not pay enough attention to those who did good. The book, so the review says, talks about a number of people who decided to stand against the tide — and about the price they paid (in this world — my addition).  Where do we fit the gospel into a tragedy like the Holocaust? And what was it that was different about the heroes — in Germany, in Poland, in modern-day Israel where slaughtering Palestinians seems to be OK, in Africa, and on and on. When asked, the Swiss policemen Paul Grunninger apparently said, “I could not do anything else.” I wonder at times like these whether “Christ in us” can perhaps apply to people who may not have said the right words that we seem to think necessary to be a Christian. Maybe we should recognize Christians by their deeds rather than their professions? Maybe we should acknowledge that God can choose to work through many different people? Maybe we in the church are just a tiny, little, bit arrogant when we think that WE are the only hands doing God’s work. Maybe?!

Michael
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Add some friction to the mix

An excellent economic article written by a psychologist in this morning’s New York Times  in which Professor Schwartz argues a perfectly efficient world is one that is friction free. Becoming more efficient is a primary goal of business. On the other hand, it is those little frictions that cause us to pause, to think, and perhaps to behave more appropriately. Continue reading

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Undeserved welfare?

Kevin Drum at Mother Jones has a fascinating analysis this morning showing that the vast, vast bulk of so-called welfare goes to the elderly (Social Security & Medicare primarily) and the disabled (Medicaid etc). Very, very little falls into the hands of the able-bodied. The whole article is well-worth a read. Paul Krugman adds another astonishing statistic: Apparently 40% plus of people on Social Security and/or Medicare claim that “they have not used a government program!” Amazing.

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Financial transparency?

I teach not-for-profit accounting and each semester my students and I work through the annual reports of selected organizations. This year, given the financial difficulties that have been reported, I decided to do the Dallas Symphony. A visit to GuideStar reveals that it has their “gold star” for transparency BUT . . . Continue reading

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Urban sprawl

The Economist had a fascinating piece recently about how cities in China, lacking sufficient property taxes, were forced to sell land to developers to finance public works for existing housing. With loose rights to property in China, this would typically take the form of forcing peasants off the land that they were farming. The article noted that recently the peasants had revolted against this practice. Revolting? Continue reading

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The games we play!

I have been at pains for years now to explain to all who will listen the difference between budget and actual when it comes to government spending. Now from the New York Times   (January 30th, 2012) comes the fascinating revelation that the Pentagon has slashed its budget by $259 billion. But as the Times points out, all that it has done is to slash its BUDGET! Continue reading

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Economics in the news

A number of items caught my eye this past week and will be the basis of some blogging in the next few days. Thomas Edsall’s Age of Austerity makes the case that Americans will have to begin to choose. My problem is that there would not have been a discipline of economics without an assumption of scarcity. If everything is in infinite abundance, then why bother with economics? Continue reading

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Exporters and Importers

See an excellent analysis by Kevin Drum of Mother Jones December 9th, 2011 of why the EuroCrisis is all about exporters and importers and not about budget deficits. Until those in power understand the difference and act on the real problem, we are likely to see an ongoing crisis. Continue reading

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