Category Archives: Money and risk

Corporate governance reform – By what right?

This past week Massachusetts Senator Elizabeth Warren, clearly the most persistent and articulate advocate in this generation for the reform of corporate governance and social responsibility, has outlined in a recent Wall Street Journal opinion (behind a paywall) a series of proposals that both need to be taken seriously and will undoubtedly raise fierce opposition from the business community. Matthew Yglesias… Read more »

Rain events, the sand pile effect and climate change

I spent a lot of grandmother-visiting time in my youth, and went to university for a time, in the far-northern Michigan town of Houghton, located on the Keweenaw Peninsula protruding like a thumb into Lake Superior. This place regularly gets over 200 inches of “lake effect” snowfall each winter, but it has rarely been hit with up to seven inches… Read more »

Humpty Dumpty words: socialism and capitalism – part 2

In Part One of this series, I dissected the “socialism” versus “capitalism” labels to demonstrate that four major governmental programs with long-standing conservative support are “community” endeavors, and lean more toward a classically-socialist approach than a classically-capitalist one, even though conservatives detest the “S” word. In this second part of the series, I will do a deeper dive into a… Read more »

Humpty Dumpty words: socialism and capitalism – part 1

I wrote in a post back in March about the concept of “Humpty Dumpty words,” a reference to Lewis Carroll’s Through the Looking Glass, where Humpty Dumpty engages Alice (of Wonderland fame) in a “war of words” in which he gets to define the meanings. [1] This is what I see in the voluminous writing happening as we speak on… Read more »

Money is choice

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Several recent posts in this blog have been focused on the idea of human volition (or “choice,” or “free will”). [1] While there is more ground to cover on the biological foundations of this perception, we can say at this point that we all (including the most strict of “determinists” who philosophically deny that free will exists) live our lives… Read more »

Non-profit organizations and expanded political power

I wrote recently about how “creative accounting shenanigans” can enable people to get rich while avoiding taxes using 501(c)(3) not-for-profit organizations in ways outside of their intended purpose. Now we learn that the IRS has decided to reduce regulations on a related form of not-for-profit entity called a 501(c)(4), making it much easier to hide millions of dollars of “dark… Read more »

Non-profit accounting for fun and profit

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I had an accounting professor many years ago who would teach the various “creative accounting” shenanigans that clever accountants could use to cover up nefarious business practices. However, he would always precede the lecture with the disclaimer, “Only those of you planning to become auditors should listen to this. The rest of you, close your ears.” I hereby give you… Read more »

Is Iowa government decentralization a fantasy?

Note: This is a cross-post of a story that first ran yesterday in the great Iowa blog Bleeding Heartland. I have lived in Iowa for almost 20 years of my life in total, over several tenures, and for the life of me, I still can’t understand why the voters of the state allow the degree of governmental centralization that exists… Read more »

Four economic “games” and higher employee wages

There is a lot of talk this summer about why wages in many industries seem stubbornly resistant to rising, even though we are nearly at full employment, and especially in places like central Iowa. [1] In this post, I will take a different whack at the problem through the lens of economic game theory and probability. In short, we appear… Read more »

The math of changing your mind – part 2

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A recent post looked at the concept of Markov chains to help us see the process by which people change allegiance from one restaurant to another, or one political position to another. This post follows up with some of the math behind Markov chains and gives you access to a spreadsheet to let you experiment with the concept. If any… Read more »