Tuesday, August 09, 2011

A Baha'i Economics Blog

Just in time for yet another self-inflicted financial apocalypse there is a new blog on the scene talking about economics from a Baha'i point of view. I hope you'll take some time to visit this blog called The Fruit Tree. Here's a taste of the author's most recent post:

A couple of months ago one of the economics blogs I follow opened up a sounding board for its readers to answer the question: What’s the most important problem the US faces? There were some interesting opinions, but the most remarkable thing I noticed was the variety of topics that people brought up. Debt, unemployment, technological change, war, the erosion of manufacturing, climate change, ideological narrow-mindedness — these were among the many explanations for what’s wrong with America right now.

My view on this is that nearly every major problem the US faces right now can be traced back to a single phenomenon: coordination failures. “Coordination failures” is a term used by economists and political scientists (known by many other labels) that simply means that it’s relatively hard for large numbers of people, each with a relatively small stake in a decision, to coordinate into one political voice; while it’s relatively easy for a small groups of people, each with a relatively large stake in a decision, to coordinate into a political voice. The result is that the outcome of important decisions are often skewed towards the interests of the few, even though that outcome is not the optimal one in terms of maximizing the well-being of all the stakeholders.