Newmark's Door

"Overqualified Yet Underprepared, Graduates Face 'Unique Paradox': Study"

A McKinsey study finds, "While the young people are qualified—even overqualified, in many cases—to enter the workplace, most of them feel ill-suited to tackle the harsh realities of an evolving job market."

One thing that might help is for schools to offer a lot more career information: "career day" on steroids.

Another thing would be to tell students, as I have for some years, that they need to think of themselves not as potential employees looking for jobs, but as independent small businessmen and women, as, yes, entrepreneurs. (With one major exception--if they plan to work for the government. But that's likely to change in the near future.) Just like small business people do, they need to periodically assess competitive opportunities and threats, and their strengths and weaknesses. Don't take my word for it--a presentation by billionaire Reid Hoffman makes the point very nicely. 

"The Biggest Retirement Myth Ever Told"

As usual, some history is useful when appraising current crises.

The notion that these challenges are new -- that there was some golden era when Americans were prepared to kick up their feet and enjoy retirement in financial security -- is a myth. By some measures, retirees are in a better position today than at any other time in modern history.

"Intel for investors: What’s going on behind closed doors in Washington"

Wasteful rent-seeking enters a new domain.

(Link via my older daughter.)

Why not pool private savings into a state-run investment fund?

Glenn Reynolds explains why.

 

"U.S. needs a better disaster plan"

Amen to an op-ed in the Los Angeles Times:

Although climate change may be making the occurrence of major storms and floods more frequent, poor planning and bad development decisions are making disasters more expensive.

The government does not and should not dictate where people can live, own property or operate businesses. But policymakers could reduce the cost of disasters by investing more in natural-hazard mitigation and by implementing measures to discourage development of at-risk areas. Our research estimates that if the government pursued these policies, it could save some $40 billion over the next decade.

Part of the problem with current disaster relief policy is that because taxpayers often foot much of the bill, homeowners, developers and local governments have little incentive to avoid building or rebuilding in areas that are at risk. Although the government can — and should — continue to offer services for disaster victims, it must also change its approach to aid, offering it with an aim of reducing future disaster losses.

"Craigslist Takes Upstart Competitors to Court"

Interesting economics question meets an interesting legal question.

"Congressional influence as a determinant of subprime lending"

Another fine example of government, not in theory, but in actual practice, aka crony capitalism.

"Explaining the Value Premium"

Well, maybe. :-)

As Bill Simmons recently noted in the context of NBA player evaluation:  “Fans always gravitate toward unlimited potential over known commodities.”  And that’s why — in a nutshell — the value premium persists. 

"What would a poverty map of India look like?"

The south and the north are doing relatively well. (Link via Marginal Revolution.)

The truth, the whole truth, and nothing but the truth

From "Interview with Robert E. Lucas, Jr.," 6/1/93:

Region: What subjects do you think are on the economics frontier in the 1990s?

Lucas: In economic policy, the frontier never changes. The issue is always mercantilism and government intervention vs. laissez faire and free markets. 

Nearly twenty years later, that's still absolutely right.