Sunder’s List: Productivity

Roundup: S&P -0.39%, Dow +0.25%, Nasdaq -0.50%, Gold $1,252.30, London +0.20%, Germany +0.26%, France +0.19%. At pixel: Nikkei -0.89%, Hang Seng -0.44%

em flows

By number of trades, NSE is #1 in the world. (AjayShah)

Social spending went up from a low of 10.5% in 2003-04 to 18% by 2008-09. The numbers show that, if this is populism, it’s been going on for a decade now. The flip side to the higher social expenditure, unfortunately, is lower capital spending. (LiveMint)

Analysts’ forecasts were less reliable in falling markets than in rising ones, even after making allowances for increased volatility in such times. Ironically, this is when investors pay more attention to analysts’ opinions. (NBER)

All technological and managerial progress kills old jobs and creates new ones. To focus only the lost jobs is a recipe for staying poor, something demonstrated by the Luddites in the 19th century. The creation of textile machinery in Britain caused massive job losses in traditional handlooms. So, the Luddites smashed textile factories in an idealistic effort to protect jobs. They didn’t realize that by stalling the industrial revolution — which ultimately raised living standards tenfold — they were actually keeping people poor. (ET)


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