Okay, it's only December 26th (going on 27th) but since everyone is making their new year resolutions, I figure it's time for mine too before I totally forget about it. A new year, a new beginning, a better tomorrow....
In 2007 I resolve to:
1. Beat the STI Index
2. Run (at least) twice a week and skate once a week
3. Join a club/regular activity
4. Lose 5kg (I probably put on 5kg this Christmas/new year heheh)
5. Present a paper at an international conference
6. Pick up a new hobby
7. Travel somewhere I've never been before
8. Improve my golf (that's probably the toughest one)
9. Blog at least once a week
10. Win some money at poker!!!
Tuesday, December 26, 2006
Monday, December 25, 2006
Happiness and economics
If you are looking for a good read this Christmas, check out the article "Happiness and economics" on page 33 of this weeks Economist double-issue. Basically its a rather Freakonomics-like breakdown of what drives people in today's economy and the endless chase of happiness.
Perhaps it will provide some insight and soul searching for the past year and give some guidance for the year(s) ahead. We all want to be happy don't we? =)
I was tempted to paste the entire article here but I guess I will be sued for copyright infringement, so here's an excerpt:
To clamber up the pecking order, some people slave away nights and weekends at the office. They gain in rank at the expense of their free time. But in making that sacrifice they also hurt anyone else who shares their aspirations: they too must give up their weekends to keep up. Mr Frank reckons that many people would like to work less, if only others slackened off also. But such bargains cannot be struck unilaterally. On the contrary, people compete in costly “arms races”, knowing that if they do not work harder, they will lose their standing to someone who does.
These races are motivated by more than just prestige. As Fred Hirsch argued in his 1977 book, “The Social Limits to Growth”, many good things in life are “positional”. You can enjoy them only if others don't. Sometimes, a quick car, fine suit or attractive house is not enough. One must have the fastest car, finest suit or priciest house.
Think of the scramble for schools, Mr Frank says. Only 10% of kids can go to the top 10% of schools. In many countries, wherever the schools are good, the houses will be expensive. Thus parents who want the best education for their child must overwork to afford a house in a good school district. In doing so, however, they raise the bar for everyone else.
Is mutual disarmament possible? Not without government help, Mr Frank and Lord Layard argue. The exchequer should tax earned income heavily enough to deter one-upmanship, they say.
Despite appearances, this is not a naked example of punitive redistribution—the fiscal politics of envy. Mr Frank and Lord Layard do not want to level the social order. Their aim is much more conservative than that. Their taxes would leave the pecking order intact and envy undiminished. But people would be deterred from acting on the green-eyed monster. The problem these economists want to tackle is not inequality per se. It is that people don't know their place and scramble vainly to improve it. Carlyle, who thought man should content himself with being the worthy follower of worthy superiors, would no doubt have approved.
I especially like the part about progressive tax. Given the huge influx of super wealthy into Singapore to "escape" higher taxes in their home countries, no wonder people are complaining about a new "elite" class here that are totally out of touch with the rest of society.
Perhaps it will provide some insight and soul searching for the past year and give some guidance for the year(s) ahead. We all want to be happy don't we? =)
I was tempted to paste the entire article here but I guess I will be sued for copyright infringement, so here's an excerpt:
To clamber up the pecking order, some people slave away nights and weekends at the office. They gain in rank at the expense of their free time. But in making that sacrifice they also hurt anyone else who shares their aspirations: they too must give up their weekends to keep up. Mr Frank reckons that many people would like to work less, if only others slackened off also. But such bargains cannot be struck unilaterally. On the contrary, people compete in costly “arms races”, knowing that if they do not work harder, they will lose their standing to someone who does.
These races are motivated by more than just prestige. As Fred Hirsch argued in his 1977 book, “The Social Limits to Growth”, many good things in life are “positional”. You can enjoy them only if others don't. Sometimes, a quick car, fine suit or attractive house is not enough. One must have the fastest car, finest suit or priciest house.
Think of the scramble for schools, Mr Frank says. Only 10% of kids can go to the top 10% of schools. In many countries, wherever the schools are good, the houses will be expensive. Thus parents who want the best education for their child must overwork to afford a house in a good school district. In doing so, however, they raise the bar for everyone else.
Is mutual disarmament possible? Not without government help, Mr Frank and Lord Layard argue. The exchequer should tax earned income heavily enough to deter one-upmanship, they say.
Despite appearances, this is not a naked example of punitive redistribution—the fiscal politics of envy. Mr Frank and Lord Layard do not want to level the social order. Their aim is much more conservative than that. Their taxes would leave the pecking order intact and envy undiminished. But people would be deterred from acting on the green-eyed monster. The problem these economists want to tackle is not inequality per se. It is that people don't know their place and scramble vainly to improve it. Carlyle, who thought man should content himself with being the worthy follower of worthy superiors, would no doubt have approved.
I especially like the part about progressive tax. Given the huge influx of super wealthy into Singapore to "escape" higher taxes in their home countries, no wonder people are complaining about a new "elite" class here that are totally out of touch with the rest of society.
Sunday, December 24, 2006
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