The last section of the book containing the said chapters is both thought-provoking and insightful. These chapters cover the course of decline of LTCM (Long-Term Capital Management) from its heady days of exponentially growing profits, customer base and stock prices. This section of the book encapsulates the systemic causes that precipitate financial crises and stock…
Category: Economics
Compare and Contrast: Kurt Vonnegut’s Harrison Bergeron and the propaganda of the welfare state
Kurt Vonnegut’s Harrison Bergeron is a critique of overstated equality. As members of civil society we all agree upon the value of equal rights and equal opportunities. But when equality is taken too seriously, it can have counterproductive effects. All of us have experienced inequality of power, fortune and endowments in our personal and social…
Select Summary of Berkshire Hathaway Annual Reports
Berkshire Hathaway uses debt quite sparingly. Even when it does borrow, the company tries to structure its loans on a long-term fixed-rate basis. Adopting a conservative approach, the company will rather reject interesting opportunities than over-leverage its balance sheet. While this policy may have moderated the profits over the years it is the most prudent…
Differences between Bretton Woods world trade regime and the current world trade system governed by the World Trade Organization
The Bretton Woods system was the result of a grand financial conference at the culmination of the Second World War. The participants were delegates drawn from 44 Allied countries that were in coalition against the defeated Axis powers. The main purpose of the conference was to organize and regulate the international monetary and financial systems,…
According to Rodrik, why is national democracy incompatible with deep globalization?
There are several contradictions between the concepts of democracy and unfettered globalization. Professor Dani Rodrik’s work on the subject is about elucidating these contradictions which is at the centre of many political debates today. One of main reasons why deep globalization is antagonistic to national democracy is the undue power wielded by international capital. For…
How coherent was the National government’s response to mass unemployment after 1931 in Britain?
The interwar years were some of the most turbulent in the history of Britain. Given the strong trade and diplomatic links between Britain and the rest of Europe and North America, the former’s economic stability depended on several external factors. The Great Depression that struck the United States in 1929 had repercussions across Europe. The…
Sewing for Millionaires: Rawlings’ operations in Costa Rica
In your opinion, is Rawlings exploiting its Costa Rican employees? Explain your answer. In my opinion, I don’t think Rawlings’ operations in Costa Rica are exploitative. The very nature of capitalist enterprise is such that cost efficiency is a major driver of business. To criticize Rawlings for doing what it is legally mandated to do…
Should the USA lower, raise, or maintain its corporate tax rates?
Taxes are always a contentious issue in American politics. The two leading parties in the country have their own views on taxes. The Republicans are mostly in favor of tax cuts for businesses, whereas the Democrats generally favor proportionately high taxes for the rich. In my personal opinion I support a progressive tax regime that…
Article Review – A Universal Healthcare System: Is It Right for the United States? By Marleise Rashford
Abstract The prevailing healthcare system in the United States has drawn many criticisms – from healthcare professionals and citizens alike. The American system fares badly compared to nationalized public health systems of Western Europe. Even in terms of overall costs, the American model is more expensive, which is significantly inflated by bureaucracy costs. All comparative…
‘Two Cheers for Materialism’ by James Twitchell & ‘Profiles in Splurging’ by Randall Patterson : A combined overview
In “Two Cheers for Materialism,” James Twitchell posits that “We live through things, we create ourselves through things and we change ourselves by changing our things.” When we look at this claim by the author, it sounds like a veiled criticism of a materialist culture. But through numerous apt examples and nuanced explanations, Twitchell comes…