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on a discounted npv basis using its supercreditor powers especially wage garnishment and tax refund intercepts there is no statute of limitations on student loans and even bankruptcy discharge is difficult the 37 billion treasury profit for fy2012 is after allowing for estimated credit losses in the 5 billion range check out the rest and the comments here comments off on new insights on student loans posted in jeff internships labor force leverage and the prisoner s dilemma posted on april 25 2012 by jly comments off on internships labor force leverage and the prisoner s dilemma an interesting article on internships appeared in slate recently that echoed my earlier post on this topic here s a sample internships save firms roughly 600 million every year reports ross perlin in intern nation how to earn nothing and learn little in the brave new economy in a recession stricken market employers have little trouble finding bright young things willing to exchange free labor for a foot in the door think of it as a version of the prisoner s dilemma if the intern age population collectively refused to work without pay subsequent conditions would favor all workers but it takes only a few defectors to make unpaid internships intensely profitable for the people involved for the companies that get free labor and the interns who get a leg up in the job market some people have raised the provocative idea that we should require a period of volunteer national service for all young people apparently we already do just not for the public good but rather corporation benefit h t alpg comments off on internships labor force leverage and the prisoner s dilemma posted in law monkey study very revealing posted on april 12 2012 by jly comments off on monkey study very revealing apparently getting on the wrong end of monkey social culture has important genetic implications monkey 1 you are not of the caliber of monkey for us monkey 2 seriously comments off on monkey study very revealing posted in jeff freakonomics and the power of the presidency posted on april 7 2012 by jly comments off on freakonomics and the power of the presidency stephens dubner and levitt provide their take on the power of the president in their most recent podcast here s a glimpse the episode begins with this simple heretical question does the president of the united states really matter as much as we believe and on which dimensions in this new episode you ll hear men from both sides of the aisle donald rumsfeld and austan goolsbee agree quite heartily at least on the topic of the president s influence on the economy you ll also hear steve levitt talk about how president obama let him down also justin wolfers and bernadette meyler talk about how the president s actual influence can be measured the conversations with rumsfeld are particularly interesting they then ask two economists a law professor and a business professor about the power of the presidency i guess all of the political scientists were busy that day comments off on freakonomics and the power of the presidency posted in jeff on the internship situation posted on march 18 2012 by jly comments off on on the internship situation i ve recently come across two articles in the new york times that speak to internship programs and class issues a response in the ethicist provides a nice backdrop on the legality of internships or lack there of in some situations the fair labor standards act requires employers to pay everyone not just official employees but anyone whom they suffer or permit to work purely educational positions are exempt from this requirement but to qualify an internship has to exist for the exclusive benefit of the intern it can t help the employer in any way in fact it s a bonus if it actually impedes the employer s operations plenty of internships that violate employment law might still benefit the intern of course by giving her an inside track in a competitive field even crummy internships have some value a firsthand glimpse of the mailroom may not be the stuff of dreams but it s more informative than no glimpse whatsoever ethicist columnist ariel kaminar then goes on to comment on the underlying class issue that s why whether an individual internship is fun or awful the system as a whole is unethical it reserves those foot in the door opportunities for people who can afford to go without a paycheck that only entrenches the advantages that children of privilege already enjoy further tilting an uneven playing field and it undermines paid employees who have the same interest you do in making sure every worker is fairly compensated you can check out the rest of the reply here also commenting on the internship situation is charles murray to say that murray s work is controversial would be an understatement however he may have found common ground with critics in his op ed article narrowing the new class divide in it he outlines a number of proposals to narrow the divide between the rich an not so rich one of them involves internships for one thing we should get rid of unpaid internships the children of the new upper class hardly ever get real jobs during summer vacation instead they get internships at places like the brookings institution the american enterprise institute where i work or a senator s office it amounts to career assistance for rich smart children those from the middle and working class struggling to pay for college can t afford to work for free internships pave the way for children to move seamlessly from their privileged upbringings to privileged careers without ever holding a job that is boring or physically demanding so let the labor unions win this one if you are not a religious organization and have more than 10 employees the minimum wage law should apply to anyone who shows up for work every day you can find the rest of his proposed reforms here comments off on on the internship situation posted in jeff jason fried on office and work posted on march 11 2012 by jly comments off on jason fried on office and work c0 founder of 37 signals jason fried provides an interesting ted talk on the office environment and productivity comments off on jason fried on office and work posted in andy jeff please please win meow meow meow posted on march 9 2012 by abwhitford comments off on please please win meow meow meow it s major league soccer opening weekend comments off on please please win meow meow meow posted in andy pop culture on career lotteries plan b s and declining reasonable opportunities posted on february 27 2012 by jly comments off on on career lotteries plan b s and declining reasonable opportunities office space is not really about the mailroom per se but it s a great movie the ny times sunday magazine carries an intriguing story by adam davidson why are harvard graduates in the mailroom of course the idea is that the company mailroom is where one goes from low on the ladder to eventually get a shot at big dreams of success this theme is made famous by film and tv but i ve never known anyone who actually worked in one probably because i ve never really lived in a big city such as la or nyc he discusses that which is often not discussed in friendly company employment represents a distinct set of opportunities choices risks and rewards and that s just the start of it there are a number of professions in which workers are paid in part with a figurative lottery ticket the worker accepts a lower paying job in exchange for a slim but real chance of a large future payday and then this system is unfair and arbitrary and often takes advantage of many people who don t really have a shot at the big prize but it is far preferable to the parts of our economy where there are no big prizes waiting that mailroom clerk at warner brothers may make less than a post office clerk maybe even half as much but the latter has less chance of a significant promotion workers in retail sales clerical settings low skill manufacturing and other fields tend to have loose uncommitted bonds to their industries and their employers have even looser commitments to them these jobs don t offer a bright future precisely because they don t require a huge amount of skill and therefore there s no need to do much merit sorting that last part may yield some ire in people i don t think that he means that people in these jobs don t work hard or have skill but rather that such jobs are readily available if you dislike a particular job then you can quit it and find a similar one quickly hence there is less personal investment and accordingly little long term opportunity payoff even if it s just a lottery or at least that used to be the case now such jobs have become more scarce but even more scarce are the jobs that used to populate america the solid plan b jobs although i find that an odd way to portray them i ll let davidson explain but part of the american post world war ii economic miracle was that most people didn t have to choose between a high stakes lottery job or a lousy dead end one steelworkers midlevel corporate executives shopkeepers and plumbers were all able to make a decent amount from the start of their careers with steady but never spectacular raises throughout these two tiers actually supported each other strivers were able to dream bigger because they had a solid plan b new york city and los angeles are buoyed by teachers store owners arts administrators and others who came to town to make it big in film or music or publishing eventually gave up on that dream and ended up doing fine in another field i don t think that davidson is in any way denigrating these good careers that are rapidly disappearing but rather sees them as an excellent opportunities for people who go for it be it to become famous or rich through business building and don t make it his point seems to be that without such fall back positions people are less inclined to take significant chances and foster innovation thus the economy finds itself in a self perpetuating downward spiral we become a nation of lottery players and the people who serve those players some eventual winners and some losers their coffee or ring up their merchandise at the store you can check out the rest of the story here comments off on on career lotteries plan b s and declining reasonable opportunities posted in uncategorized electing scientists posted on february 16 2012 by jly comments off on electing scientists the times has an interesting story today about the relative lack of scientists in america s elected offices especially the executive among the 435 members of the house for example there are one physicist one chemist one microbiologist six engineers and nearly two dozen representatives with medical training the case of doctors and the body politic is telling everyone knows roughly what doctors do and so those with medical backgrounds escape the anti intellectual charge of irrelevance often thrown at those in the hard sciences witness senator bill frist gov howard dean and even ron paul continue reading comments off on electing scientists posted in uncategorized the gatsby curve posted on january 16 2012 by jly comments off on the gatsby curve paul krugman relays some of the work of his colleague alan krueger on inequality and social mobility with the graph below first a little context on the horizontal axis is the gini coefficient a measure of inequality on the vertical axis is the intergenerational elasticity of income how much a 1 percent rise in your father s income affects your expected income the higher this number the lower is social mobility what would daisy buchanan say i m guessing that the movie version will be a disappointment check out more here and here comments off on the gatsby curve posted in jeff new year help study provides key for losing weight posted on january 6 2012 by jly comments off on new year help study provides key for losing weight the situationists blog details an interesting study on losing weight that has little to do with counting calories or carbs per se apparently it s all in your head here s an excerpt continue reading comments off on new year help study provides key for losing weight posted in jeff what if members of congress performed an occupy wall street protest posted on december 30 2011 by jly comments off on what if members of congress performed an occupy wall street protest according to this graphic from mother jones the turnout wouldn t be that great for a 99 movement at least if we assume that the top 10 have loyalties upward h t buzzfeed comments off on what if members of congress performed an occupy wall street protest posted in uncategorized louis ck a new business model posted on december 15 2011 by jly comments off on louis ck a new business model comedian and actor louis ck made news recently by passing big corporate america and selling a recent stand up performance video directly to fans for 5 a download his video was not encrypted and he relies on the fans to pay for the download rather than getting free pirated versions it s a strategy reminiscent of the approach used by the band radio head some years ago they basically allowed a technically free download but asked downloaders to pay what they felt was a fair price both experiments seem to have gone well but critics point out that such approaches may have limitations for instance both louis ck and radio head are established acts and enjoyed the ability to market their product rather cheaply time will tell if these experiments have an impact on the entertainment industry you can check out the louis ck offering here caution his material is decidedly r rated comments off on louis ck a new business model posted in jeff law pop culture how professions rate surprises posted on december 14 2011 by jly comments off on how professions rate surprises some of these gallup poll results outlined in the ny times may surprise you but most seem pretty predictable continue reading comments off on how professions rate surprises posted in jeff the judge and the sec posted on december 4 2011 by jly comments off on the judge and the sec see the article in the atlantic wire here a money quote from the judge in much of the world propaganda reigns and truth is confined to secretive fearful whispers even in our nation apologists for suppressing or obscuring the truth may always be found but the s e c of all agencies has a duty inherent in its statutory mission to see that the truth emerges and if fails to do so this court must not in the name of deference or convenience grant judicial enforcement to the agency s contrivances comments off on the judge and the sec posted in jeff law policy politics on unconscious effects in decisions posted on november 30 2011 by jly comments off on on unconscious effects in decisions a recently posted paper on ssrn caught my eye unconscious influences on judicial decision making the illusion of objectivity by john irwin and daniel real here s a...
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