"To be against disruption is to be pro the status quo. And to be pro the status quo means however the world is today that is as good as it’s ever going to get. The disruption argument is that things can become much better. Products can be much better, businesses can be much better, opportunities for people can be much better."
Marc Andreessen | @pmarca @a16z #economics #disruption
Baumol's Cost Disease | @pmarca @a16z @bhorowitz | #economics #education →
Baumol’s cost disease (also known as the Baumol Effect) is a phenomenon described by William J. Baumol and William G. Bowen in the 1960s. It involves a rise of salaries in jobs that have experienced no increase of labor productivity in response to rising salaries in other jobs which did experience such labor productivity growth. This seemingly goes against the theory in classical economics that wages are closely tied to labor productivity changes.
Belly-Up Brazil? by Gene Frieda
- Project Syndicate →
An salient argument for one side of a call markets have yet to resolve:
SAO PAULO – After years of impressive growth, Brazil’s economic prospects appear increasingly dim. Since the World Cup ended in July, economic activity has plummeted, inflationary pressures have intensified, and consumer and business confidence have collapsed, leading many economists to slash their growth forecasts for this year. So just how sick is Brazil’s economy, and how will its malaise affect the outcome of the presidential election in October?