Tuesday, October 13, 2009

Obama fails to win Nobel prize in economics - MarketWatch

MarketWatch First Take: Obama fails to win Nobel prize in economics - MarketWatch: "While few observers think Obama has done anything for world peace in the nearly nine months he's been in office, the same clearly can't be said for economics.

The president has worked tirelessly since even before his inauguration to wrest control of the U.S. economy from failed free markets, and the evil CEOs who profit from them, and to turn it over to wise, fair and benevolent bureaucrats."

Dang. Well, maybe next year.


Beth said...

lol! I've been wondering if Elinor Ostrum's work factored into your _Privatopia_ book . . . she deals with tragedy of the commons stuff, right? I've read Privatopia of course but I confess I don't remember everyone you cited. :)

Fred Pilot said...

Ostrom's work has major implications for state authorized and local government mandated private local government, which has been a top down effort to force community instead of allowing it to develop organically among neighbors. Ostrom's work may help us answer the question why so many decline to accept the authority of mandatory (versus voluntary)HOAs, participate in their governance and timely pay assessments. This too is a tragedy of the commons: there is often no real common interest in so-called common interest developments.

Here's a pertinent excerpt on her work from today's Wash Post at http://www.washingtonpost.com/wp-dyn/content/article/2009/10/12/AR2009101201487.html?wprss=rss_business

Ostrom has studied the "tragedy of the commons," the notion that if a town has a common pasture on which everyone can graze sheep, the land will be overgrazed, making it less useful for everyone. Ostrom found that in a wide range of such settings -- such as shared fisheries, forests and water supplies -- people form voluntary arrangements to govern use and prevent overharvesting. That applies, she has found, even in the absence of a powerful centralized authority.

"She challenges the top-down approach, the centralized approach to development," said Paul Dragos Aligica, a former student of Ostrom's who is now a senior research fellow at the Mercatus Center at George Mason University.