Why isn't Wall Street in jail?

This weekend I was watching one of my favorite cable programs, Real Time with Bill Maher, and was fascinated by his guest, Matt Taibbi, who had recently published an article in Rolling Stone Magazine. I went to my computer and found the article online.

Wow! I am planning to use it in the Money and Banking class I teach next month! So many questions are raised about moral hazzard, private incentives and of course regulation of the banking industry.

After reading this article, I find that being pro-regulation is not enough. Where do we find effective regulators who will not be seduced by those private incentives?

Is it more understandable why Elizabeth Warren is reluctant to be "vetted" for the top job at the new Consumer Financial Protection Bureau?

Do we all have a price? What is it?

America Still #1 in manufacturing!

As I was reading the online news from my home state, Delaware, I noticed this strange headline. I found it difficult to believe that the US remains the world's top manufacturer. My perception was that most manufacturing jobs had been outsourced to countries with lower labor costs. At the end of this article it is apparent that China is quickly gaining on us and we will not hold this position much longer.

For my Economics students this article addresses comparative advantage. It also reitierates the need for US workers to enhance their human capital. To compete in the new US labor market, workers will need more technical skills and basic education to allow them to be flexible and meet the demands of the business sector.

I particularly liked the analogy of this change to the change which occurred when we moved from a laobr based agricultural economy to an industrial economy. Big agriculture is still here in the US, but it is far less labor intense, utilizing technology and science to produce great output with less labor.

As we navigate the changing economic landscape in the US, let's not forget that education and experience will be out gateways to success.