Fifty Things That Made the Modern Economy

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This book is an interesting read coming straight off the back of Human Origins. The book starts out by explaining the impact the invention of the plow had on humanity -- it asserts that farmers being able to produce substantially more than they needed for their own subsistence was a driving factor in the creation of both other specializations (by freeing people up from farming), but also a more unequal society (as it allowed a ruling class to live off resources produced by others). This is an interesting assertion to me. Next the book moves on to observing that with all innovations there is a winner and a loser. An early example is the phonograph -- before the invention of recorded media there was a market for quite-good-but-not-great performers to entertain people. Once there was an ability to record great performers, the earning capacity of the great performers went way up but the earning capacity of the not-quite-great performers went down. So while society overall might benefit from innovation, it is not true that all participants in the market benefit at the time of the innovation. The book then starts walking through a series of inventions. Each is presented as…

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Reactive economies?

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The other day while in Costco (for the foreigners, think Bunnings or some other hardware warehouse, but for food), I was graced with this conversation at the checkout, between two Costco employees: e1: Where the hell is e3? e2: Oh, we didn't meet our sales target yesterday, so they cut hours today. e1: So he's not coming in at all? e2: Nup Apparently Costco works out their staffing based on a "budget for the day" which takes into account todays sales target, expected customer load, and whatever they have to "make up" from previous missed targets. While there is nothing wrong with that, it must suck to be an employee in that environment. I can't imagine not knowing how much work I would have day to day. I used to be a casual, but our rosters were fairly static and worked out weeks in advance. I guess that Australia is headed down this path with the new industrial relations laws as well. That's not why I finally got around to writing this though. It occurred to me this morning that being able to lay off people instantly based on a micro assessment of the economy must also lead to very…

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