Counterparties

By Felix Salmon
September 20, 2010
Reformed Broker

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“If you pledge to not drive on campus, Stanford will actually pay you! $250!” — Paddy Hirsch

NYT photog captures a bike salmon in his natural habitat, for a post on The Cyclist-Pedestrian Wars — Spokes

Why exercise won’t make you thin — Guardian

Park Slope Food Coop grosses $6,500/sqft/year: “so much money that it deposits its cash every 2 hrs for security reasons” — Fortune

In which Paul Jackson moves one step closer to Total World Domination: HousingWire to Acquire REO Insider — PR Newswire

Divilians vs Tradebots — Reformed Broker

I’m late to this chart, but it’s fantastic — Economix

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Comments
7 comments so far

Guardian link not working.

Posted by EricVincent | Report as abusive

Berkshire Hathaway Vice-Chairman billionaire Charles Munger to peasants: “Suck it in and cope, buddy. Suck it in and cope.”

Any questions on the lack of aggregate demand? Although I suppose we should thank Munger for letting the cat out of the bag on what elite policy really is.

http://www.correntewire.com/berkshire_ha thaway_vice_chairman_billionaire_charles _munger_peasants_suck_it_and_cope_buddy_ suck_it_

Posted by lambertstrether | Report as abusive

Worth remembering in re the Cyclist-Pedestrian Wars: we pedestrians always have the right of way. Tell your friends. Bike messengers here in town never seem to be a problem, for all that they obey other traffic regulations primarily in the breach. It’s hipsters and the other nonpros whom I see run down kids and little old ladies. Though I grant, even this nonpro population mainly seems to have the innate ability to recognize that I by contrast plan to welcome it to the sidewalk with my elbow.

Posted by wcw | Report as abusive

EricVincent –

Here it is:
http://www.guardian.co.uk/lifeandstyle/2 010/sep/19/exercise-dieting-public-healt h

lambertstrether –
Wise words. Somehow I think Munger, who grew up during the depression is not that impressed with this recession. Too, I think the our competitors (e.g. China and Japan) have endured orders of magnitude more suck that we have. Do you want to know what a Chinese motivational speech sounds like?

Drink for the cup of bitterness.

Posted by DanHess | Report as abusive

The tax benefits to a food Co-op are enormous.

Let’s look:
(1) If these same customers were paid as workers in high-income New York, they might be shelling out at a marginal rate of up to 50%. Not to mention employer-related taxes.

(2) Shareholder profits which would normally be double-taxed at maybe 65% percent aren’t taxed at all. Why? Instead of ‘profits’ you have low prices to shoppers.

The IRS would love a piece of this action but what can they do? Is it barter? I think probably not because there isn’t a direct exchange of goods and services. You just get a club membership which has undefined value. Are you gonna start taxing frathouses for having chore lists?

Grocery stores are already pushing work onto shoppers in terms of self-checkouts and self-bagging, and giving shoppers a lower price as a result.

This is what happens when you tax economic activity.

Posted by DanHess | Report as abusive

DH, the tax subsidy for a coop is a rounding error on its business. If that were not so, poorly run coops would never and nowhere go out of business, and yet what the 60s bequeathed us were bushels of coops that failed in the 70s.

It would be fine policy to rewrite the tax laws to capture such quacks-like-a-duck activity. The big win would not, of course, be in the credit union/food coop space. The big wins would be in the charitable/foundation world, and of homeowner rental yield. DanHess, I hope you will be first in line to sign up to end these naked distortions of economic activity.

Posted by wcw | Report as abusive

@WCW –

If I had my way, it would all be Pigouvian taxes for revenue. Basically hit the things that take away from the commons.

* Gradually I would ratched up to big oil taxes (not gas taxes but upstream even of agriculture and chemical etc).
* Land taxes (a variant of real estate taxes, focusing on the scarce portion of real estate)
* Water taxes where water is scarce
* Tax on imports from currency manipulating nations

There is something here for everyone to hate, Repubs and Dems alike.

I suppose a consumption tax would fall into this category as well.

Every economic purist should be for Pigouvian taxes because they are fair and they maximize overall wellbeing and minimize the negative externalities we impose on each other.

Posted by DanHess | Report as abusive
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