Intelligence in the Internet Age

Stefanie Olsen:

Take Diego Valderrama, an economist with the Federal Reserve Bank in San Francisco. If he were an economist 40 years ago, he may have used a paper, pencil and slide rule to figure out and chart by hand how the local economy might change with a 1 percent boost in taxes. But because he’s a thoroughly modern guy, he uses knowledge of the C++ programming language to create mathematical algorithms to compute answers and produce elaborate projections on the impact of macroeconomic changes to work forces or consumer consumption.
Does that mean he’s not as bright as an economist from the 1950s? Is he smarter? The answer is probably “no” on both counts. He traded one skill for another. Computer skills make him far more efficient and allow him to present more accurate–more intelligent–information. And without them, he’d have a tough time doing his job. But drop him into the Federal Reserve 40 years ago, and a lack of skill with the slide rule could put an equal crimp on his career.

Airline Bankruptcies

The Boyd Group:

Their problems were that they got caught in the headlights by fuel prices that went up a lot faster than they could adjust to quickly. True, both were in the process of getting their labor costs down – something that American, Continental, and United have already done. When jet-A went to over $2 a gallon, the immediate need was to conserve cash while labor and other cost reductions were achieved.
Lots of “experts” go into diatribes about how these legacy carriers have unsupportable cost structures and route systems, dating from the days of regulation in the 1970s. Sounds great, but it is more nonsense. It’s missed by these grand prognosticators – most of whom have never worked within the airline industry – that if oil had stayed right where it was at the beginning of last year, as most of us expected, these filings would not have taken place.

Vikings to Announce a New Stadium Deal

Brandt Williams:

On Tuesday officials from the Minnesota Vikings and Anoka County will formally announce that they have reached an agreement for a new football stadium. The $675 million, retractable-roof stadium would be built on a 700-acre site in Blaine. The total cost of the project, with roads and other infrastructure, could be as much as $790 million. The Vikings are expected to contribute up to $280 million with the rest of the funding to come from Anoka County and state taxpayers.

I wonder if any NFC North team actually needs a new stadium, given the dreadful outlook this fall. Perhaps they will all finish 3-13? Beyond that, I’m sure we can use this money in much better ways, than by subsidizing the rich.

“Obeying Orders” More on Yahoo Helping the Chinese Government Put a Reporter in Jail

Washington Post Editorial Page:

This is not merely an abstract business ethics issue: Yahoo’s behavior in China could have real consequences for U.S. foreign policy. Over the past two decades, many have argued — ourselves included — that despite China’s authoritarian and sometimes openly hostile government, it is nevertheless right to encourage American companies to work there. Their very presence has been thought to make the society more open, if not necessarily more democratic. If that is no longer the case — if, in fact, American companies are helping China become more authoritarian, more hostile and more of an obstacle to U.S. goals of democracy promotion around the world — then it is time to rethink the rules under which they operate.

WSJ Reader Comments: Customer Service & Sears

Hampton P. Wansley writing in the Wall Street Journal, relates his recent experience shopping at Sears.

I visited a Sears store last week for a washer, dryer and microwave. The salesman couldn’t give details about specifications on the machines. A microwave was priced at $119; the salesman said that was wrong price and that it should be $148. I had a terrible conversation with the credit people from the home office. They tried to sell me disability insurance. I said I didn’t need it as I hadn’t purchased anything. Finally, I ended up buying a Sears long-distance phone card and paid cash. After ringing up the sale, they said card wasn’t good until 24 hours had transpired. What a horrible shopping experience. It took over two hours. Sears lost $960 in sales. I went to Home Depot the same day and bought a washer, dryer and microwave for the new home. The transaction took 35 minutes and all the goods were delivered the next day. Mr. Lampert: you’ve got a very serious problem.

Changing US Foreign Policy in the Pacifc

Edward Cody surveys US policy in the Western Pacific:

The rise of China as a regional force has shaken assumptions that had governed this vast region since the end of World War II, including that of uncontested U.S. naval and air power from California to the Chinese coast. With those days soon to end, senior officers said, the U.S. military in Asia is retooling to reflect new war-making technology, better prepare for military crises and counter any future threat from the emergent Chinese navy and air force.

Water Wars: The State of the San Joaquin River

As the water wars arrive in Wisconsin, it’s useful to take a look at what has happened in other parts of the United States. Juliana Barbassa does just that in California’s Ansel Adams Wilderness Area:

It begins as fresh snowmelt, streaming from Mount Ritter’s gray granite faces into Thousand Island Lake, a bouldered mirror. The clear blue water spills out through a narrow canyon, and the San Joaquin River is born.

When conservationist and mountaineer John Muir first explored these upper reaches, the narrow gorge barely contained the power of the living river, which carried the continent’s southernmost salmon run, sustained Indian tribes and set the rhythm of life in the valley below with floods and droughts.

“Certainly this Joaquin Canyon is the most remarkable in many ways of all I have entered,” Muir wrote in 1873.