Society

Hadas: Economists need more psychological abuse

11 Oct 2017

Insights from the study of the mind helped Richard Thaler win the Nobel Prize in economics. The dismal science would benefit from more thoughtful analysis. Rules of thumb could help with investments, statistics would become less alien, while ethics could illuminate big decisions.

Review: Dani Rodrik gives economists a better name

6 Oct 2017

The mildly iconoclastic Harvard professor’s “Straight Talk on Trade” runs through several controversial claims, from praise of diversity in economic models to support for curbs on capital flows and unfair trade. His humility is admirable, even if his pessimism may be overdone.

Economic odds stacked against Catalonia breakaway

6 Oct 2017

On paper, independence looks viable for a wealthy region with GDP roughly the same as Finland’s. In reality, divorcing Spain would trigger harmful disputes over tax and debt. A Catalan central bank would lack the reserves to maintain confidence outside the euro zone.

Catalan banks fairly punished for wrong reason

4 Oct 2017

The prospect of Catalan independence has hit Barcelona-based lenders CaixaBank and Sabadell. A schism from Spain and the EU could trigger deposit runs and losses, but the risk of that is low. Stagnant interest rates and weak profitability are a bigger threat than self-rule.

Las Vegas tragedy strikes a U.S. inured to outrage

2 Oct 2017

Casino stocks fell and gunmakers’ jumped after the worst shooting in U.S. history left at least 50 dead. Horrific as it is, the incident is unlikely to impact gun laws, markets, political debate or voters’ minds. A deeply divided country will find it hard to mount a response.

Catalonia crisis is painful distraction for Spain

2 Oct 2017

Despite violent police intervention, the region’s vote to leave Spain is unlikely to trigger a breakup of the country. Yet the political unrest has damaged an already weak government and could strain public finances. Spain’s recovering economy needs a bigger political discount.

Equifax can’t even oust its failed CEO effectively

26 Sep 2017

Rick Smith is "retiring," as the euphemism goes, after a massive cyber attack and fumbled response - and with little financial penalty. The interim management plan makes clear the board hadn't planned succession adequately either. Equifax needs regime change at every level.

Cox: Donald Trump is failing America’s gun lobby

13 Sep 2017

The candidate's campaign messaging echoed the National Rifle Association's efforts to sow fear and sell weapons. Trump promised to "come through for" the NRA, which backed him. But a profit warning from Smith & Wesson’s parent and other signs suggest he’s not delivering.

Hadas: EU single economy eases way for separatism

13 Sep 2017

Catalan and Scottish nationalism have bubbled up recently. Besides sentiment, the European Union has played a part. The super-national single market not only provides economic protection, but opens up a new vision of sovereignty. It’s the same idea Brexit fans have rejected.

Hadas: Good companies don’t have to self-harm

6 Sep 2017

Alphabet Chairman Eric Schmidt may be justified in not wanting to subsidise research critical of the web giant. Even so, powerful companies have serious social responsibilities. They can do better by expanding their mission, moderating greed and helping where they have hurt.

Bell Pottinger falls victim to PR disruption

5 Sep 2017

The UK public relations firm is in meltdown after a divisive South African campaign. The rise of online media makes it harder to justify big fees and spurs forays into far-flung markets. The result in this case is a warning to an industry that has so far shrugged off media woes.

Hadas: Economists aren’t as sexist as economics

29 Aug 2017

Insulting comments about women economists on an online forum have shocked the profession. The problem exists in other fields. The difference here is the dismissive attitude embedded in a discipline that tends to ignore cooperation and the care work usually done by women.

Hadas: Corporate do-gooders are due a revival

23 Aug 2017

Paternalistic companies planted the seeds of government welfare programmes. Their ideas now seem out of date. But the rise of the left-behind, and the kind of social rifts shown in Charlottesville, show the need for more active, personal and short-term costly interventions.

Market shows faith in U.S. institutions, not Trump

16 Aug 2017

The president disbanded his advisory councils after a raft of CEOs quit. They are the latest to abandon a leader who has been defied by Congress, courts and the military. These bodies will be crucial in ensuring the nation’s stability. Investors so far appear confident they will.

FDA crackdown on cigarettes a rare win for science

28 Jul 2017

The U.S. watchdog wants to lower nicotine levels in a hit to Big Tobacco, whose shares plunged. The agency says long-term use kills half of smokers. It’s a departure from Team Trump’s rejection of facts in climate change. The FDA is the odd regulator defying corporate interests.

Hadas: What Brexit forecasters got wrong

26 Jul 2017

The UK government’s pre-referendum forecasts about what leaving the EU would mean were gloomy, but not dark enough. What they missed: British inflexibility, the damage from unlinking trade, the challenge of migration and the lingering costs of national self-humiliation.

U.S. colleges may need to start on M&A course

25 Jul 2017

After tripling in real terms since the early 1970s, tuition costs are now rising only a hair faster than CPI. Cost cuts won't offset flagging enrollment, the result of a stronger job market and demographic shifts. Merging could help, especially for small private schools.

BBC stars will gain from radical pay transparency

19 Jul 2017

The UK public broadcaster has named everyone who earns more than 150,000 pounds a year. The main conclusion is that valuing TV presenters is guesswork. As with chief executives of listed companies, disclosing compensation will just enable them to demand even higher wages.

Guest view: Culture can’t be bank-reform casualty

18 Jul 2017

Moves to relax U.S., UK and European regulation and supervision necessitate still greater attention on the important issues of institutional conduct, argues William Rhodes, a former Citigroup executive and co-chair of the G30’s steering committee on bank culture and governance.

SoundCloud flags music’s lopsided digital revival

7 Jul 2017

The German streaming service is cutting 40 percent of staff, according to reports, after Spotify shelved a possible purchase last year. With most of the returns from the industry’s digital renaissance going to labels, streamers have yet to prove they have an independent future.