A lot of outrage, including threats of physical violence, has been directed at executives of the American International Group and other financial-services firms. The executives are perceived as having triggered the world wide economic crisis by their reliance on subprime mortgage–backed securities and on credit default swaps (something few people understand even after hearing them explained).
The U.S defense budget, always outsized, has become even more bloated in recent years. In the past eight years military spending has nearly doubled, with much of the increase devoted to financing the wars in Afghanistan and Iraq. A year ago Joseph Stiglitz of Columbia University and Linda Bilmes of Harvard predicted that the Iraq war could cost the U.S. $3 trillion.
North is North, and South is South, and never the twain shall meet. Well, actually, they do. In a globalized world, people move freely, carrying ideas and practices with them, and some of the resulting meetings and mergers can be surprising, even bracing.
Despite an economic emergency and a popular president, notions of bi partisan cooperation on Capitol Hill collapsed after about a week. The advantages of political partisanship remain extremely compelling.
Travel anywhere in the wealthy world—to North America, Europe or the Middle East—and you will soon find people from the Philippines. You may not actually see them, because many work in menial or invisible jobs, often in hotels and restaurants—positions where travelers scarcely notice them.
Dan Price, owner and chief executive officer of Gravity Payments, has cut his salary and given each of his employees a $70,000 wage. This move raises the salaries for more than half of the 120-person staff at his credit card processing company in Seattle. Many business leaders have criticized his move. Rush Limbaugh called it socialist, predicting the company would fail. Tim Kane, an economist at the conservative Hoover Institute at Stanford University, said, “It will reduce turnover, increase morale, and help him build an even greater company.” The day after the new wage plan was made public, Price received letters from 3,500 job applicants, and Gravity signed up several new clients (New York Times, April 19).