“Oh, I don’t know, but… but people do things in the world. I saw pictures of New York and I thought”—she pointed at the giant buildings beyond the streaks of rain on the cab window—”I thought, somebody built those buildings—he didn’t just sit and whine that the kitchen was filthy and the roof leaking and the plumbing clogged and it’s a goddamn world and . . . Mr. Taggart”—she jerked her head in a shudder and looked straight at him—”we were stinking poor and not giving a damn about it. That’s what I couldn’t take—that they didn’t really give a damn. Not enough to lift a finger. Not enough to empty the garbage pail. And the woman next door saying it was my duty to help them, saying it made no difference what became of me or of her or of any of us, because what could anybody do anyway!” [Atlas Shrugged. Part 1. Chapter IX: The Sacred and the Profane. Ayn Rand. 1957]
Category: Books, essays and others
Suppose a fence can be produced by using either one high skilled worker or by using three low skilled workers. If the wage of high skilled workers is $38 per day, and that of a low skilled worker is $13 per day, the firm employs the high skilled worker because costs would be less and profts higher ($38 versus $39). The high skilled worker would soon recognize that one of the ways to increase his wealth would be to advocate a minimum wage of, say, $20 per day in the fencing industry… After the enactment of the minimum wage laws, the high skilled worker can now demand any wage up to $60 per day … and retain employment. Prior to the enactment of the minimum wage of $20 per day, a demand of $60 per day would have cost the high skilled worker his job. Thus the effect of the minimum wage is to price the high skilled worker’s competition out of the market. [Walter Williams. The State Against Blacks. 1982]
Veblen introduced some interesting ideas in The Theory of the Leisure Class. My professor seems to insist that Veblen was an early pioneer in the field of signalling.
Although Veblen drove his ideas to the extreme to bring in absurd implications that I simply will not buy, there are specific arguments that I find attractive and readily agreeable. This is one of them:
The same pervading canon of vicarious leisure is also visibly present in the exterior details of devout observances and need only be pointed out in order to become obvious to all beholders. All ritual has a notable tendency to reduce itself to a rehearsal of formulas. This development of formula is most noticeable in the maturer cults, which have at the same time a more austere, ornate, and severe priestly life and garb; but it is perceptible also in the forms and methods of worships of the newer and fresher sects, whose tastes in respect of priests, vestments, and sanctuaries are less exacting. The rehearsal of the service (the term ”service” carries a suggestion significant for the point in question) grows more perfunctory as the cult gains in age and consistency, and this perfunctoriness of the rehearsal is very pleasing to the correct devout taste. And with a good reason, for the fact of its being perfunctory goes to say pointedly that the master for whom it is performed is exalted above the vulgar need of actually proficuous service on the part of his servants. They are unprofitable servants, and there is an honorific implication for their master in their remaining unprofitable. It is needless to point out the close analogy at this point between the priestly office and the office of the footman. It is pleasing to our sense of what is fitting in these matters, in either case, to recognize in the obvious perfunctoriness of the service that it is a pro forma execution only. There should be no show of agility or of dexterous manipulation in the execution of the priestly office, such as might suggest a capacity for the turning off the work. [The Theory of the Leisure Class. Chapter 6: Pecuniary Canons of Taste. Thorstein Veblen. 1899]
As a side note, I am beginning to understand why a Veblen good is called a Veblen good. It all begins with this book.
As a boy back in Malaysia in the early 1990s, there were several publications that colored my life. I do not pretend that I comprehended what I read then but I can vividly recall how I loved those pictures, graphs and tables. My father purchased it and I was simply an excited but confused free rider. I was unsure what I was reading, or really, looking at. More likely than not, I was excited about the editorial cartoons.
Nevertheless, my early exposure to these publications probably have a hand in slowly prodding me into the realm of economics. These publications, among others, were The Economist, Fortune, Asia Inc. and the Far Eastern Economic Review.
The Far Eastern Economic Review — popularly known as the FEER — was probably the number one regional publication for quite awhile in Asia or specifically, in Southeast Asia and East Asia excluding Japan. But the Asian Financial Crisis and subsequent years were harsh for the publication. In mid-2000s, it had to restructure. I remember that it closed down for awhile but Dow Jones came to the rescue. Dow Jones put some life into the FEER.
It appears now that even Dow Jones cannot save the FEER from death. Reports have it that Dow Jones will close the FEER:
Dow Jones on Tuesday announced the closure of Far Eastern Economic Review, a 63-year-old current affairs magazine about Asia, as Rupert Murdoch’s News Corporation steps up the restructuring of its businesses in the region.
The company said Feer, based in Hong Kong, would shut down in December as part of a reorganisation to focus on its core products and key markets in Asia, including India, China and Japan. [Far Eastern Economic Review to close. Financial Times. Justine Lau. September 22 2009]
To be perfectly honest, I do not read the FEER any longer.
The last time I had my hands on the FEER was in early 2009. It happened by pure accident; I was waiting for a person and then I thought I spotted a brand that I recognized. I was ecstatic for a moment until I unfortunately discovered that it was not as exciting as it used to be. The closure of the FEER therefore will not affect me too much.
I also do not like the cover. I prefer the old yellowish strip along with the color of black and white so prominently displayed on the front cover. As it appears now, it seems too Harvardish. Yes, I can be that shallow.
Nevertheless, the loss of the FEER will mark an end of an era.
I do however hope that some knight in shining armor will come to the rescue. The FEER is an Asian heritage. It will be most shameful to lose it. It is especially shameful to lose a publication that so deftly fought against the illiberal governments of Southeast Asia. In times when liberalism was a bad word, the FEER was a torchbearer.
If no knight appears, then I fear, I will have to say, thank you for the memories, FEER. And goodbye. Whatever happens, you know that you carved a place in my heart.