Thursday, June 09, 2016

Public company costs

The SEC is complaining that companies aren't going public, and their investors would do better if there was more regulation.
That these things were written without irony shows how unmoored our discussion of corporate governance has gotten from reality. Clearly, the poor investors of Uber, Airbnb, and Snapchat must be slapping their foreheads, saying “THAT’s why success has eluded us! We need more SEC oversight!”


Tuesday, June 07, 2016

GDP considered not useful

“We know less about the sources of value in the economy than we did 25 years ago,” wrote economists Erik Brynjolfsson and Adam Saunders in a 2009 article. “We see the influence of the information age everywhere, except in the GDP statistics. More people than ever are using Wikipedia, Facebook, Craigslist, Pandora, Hulu and Google. Thousands of new information goods and services are introduced each year. Yet, according to the official GDP statistics, the information sector (software, publishing, motion picture and sound recording, broadcasting, telecom, and information and data processing services) is about the same share of the economy as it was 25 years ago - about 4%. How is this possible? Don’t we have access to more information than ever before?”


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