Edward Hadas

Apple’s many magic tricks

By Edward Hadas
April 30, 2014

Apple is in the news for borrowing $12 billion this week, even though it has $151 billion of cash on its balance sheet. The financial legerdemain will keep the technology giant’s tax bill down. It also is suitable for a company whose business model has long looked more like a magic act than a traditional corporate drama.

Inheritance can be less unequal

By Edward Hadas
April 23, 2014

The children of the poor tend to end up poor. The children of the elite seem pre-ordained to inherit a good part of their parents’ status and income. Is that just?

Don’t bother with share-based pay

By Edward Hadas
April 16, 2014

Coca-Cola’s plan to give generous awards of shares to executives has angered some of its shareholders. They have good reason to complain about the potential transfer of about 15 percent of the company to the top 1 percent of its staff. But Coke is only pushing the already bad idea of share-based pay to a foolish extreme.

When credit is too much of a good thing

By Edward Hadas
April 9, 2014

What does credit do after it has finished the job it was designed for? The supply of credit ought to stop at funding productive activity. But the reality is different. Surplus credit fuels dangerous asset price inflation and funds profligate governments. As leverage increases, so too does the risk of crisis and recession.

Wealth buys less lifestyle, more power

By Edward Hadas
April 2, 2014

Many serious people think economic inequality in the United States and other developed economies should be a hot political topic. But the general public hardly cares. There is a bad reason behind lack of public interest.