Tag Archives: philosophy

Paul Krugman’s Nobel Prize

I was trying to explain “The New Trade Theory” and doing a poor job of it. Fortunately, Krugman does a good job simplifying it here.

The new trade theory starts with the observation that while this explains a lot of world trade, it also misses a lot. France and Germany sell lots of stuff to each other, even though they have similar climates and resources; so do the United States and Canada. What’s that about?
The answer is that there are many goods that aren’t like wheat or bananas, but are instead like wide-bodied jet aircraft. There are only a few places in which wide-bodied jets are produced, because of the enormous economies of scale – you only want a couple of factories worldwide. Those factories have to be somewhere, and those countries that get the factories export jets, while everyone else imports them.

There’s more details in the article.

The Art of Happiness

I’m reading a book “The Art of Happiness” by Howard Cutler. He’s a psychiatrist who spent time talking with the Dalai Lama. Here’s an interesting quote about what a psycologically happy person is:

Well, I would regard a compassionate, warm, kindhearted person as healthy. If you maintain a feeling of compassion, loving kindness, then something automatically opens your inner door. Through that, you can communicate much more easily with other people. And that feeling of warmth creates a kind of openness. You’ll find that all human beings are just like you, so you’ll be able to relate to them more easily.