Politics

I am not a fan of politics, but every society, every group or even charities have their own politics. In the economics term, each individual/social group has different objectives and this creates a wrestle among different parties. Holy places like Christian Churches have different politics, I have seen Elders voted against pastors and pastors voted against Elders. This is sad cruel reality.
Small ethical groups in Moncton have politics too. I am involved in a small group and I observe a major turnover of the decision board. In modern Western developed democratic societies, people have rights to vote in order to determine who runs the show. The outcome of election, usually, is directly or indirectly determined by their capital campaign, i.e. politics. Elections are not likely to be efficient in an economist's viewpoint. Elections are costly and political turnovers create negative externalities. I love reading some articles published by Ronald Wintrobe who studies dictatorial environments. A dictator rules using two operands: Love and Power. A caring, intelligent dictator may outperform a democratic political power. Did I hear anyone say Fidel Castro?

Best Gift: Bankruptcy protection?

The Fairchild Television News reported that 80,000 people in Ontario will be filing for bankruptcy protection directly or indirectly because of Boxing Day Shopping. Thanks to the ever evolving credit industry. Americans are exposed to credit risks and challenges everyday. Ever since I bought a house, I receive different type of pre-approved credit applications at least two or three times a week. Thousands of Canadians live on payday advances and visas.

Spending habits are very different in Asia, especially like China and Japan. My parents have taught me not to spend more than I earn and I should save for the future. In macroeconomics, what determines over performance of a nation? Should we use income (GDP) or the standard of living? Think deeply, which one is a healthier economy: Japan or USA? Japanese save a lot while Americans spend a lot. Do you agree that you will rather live in an economy where you consistently spend more than you make? Yes, Americans still rule.

A tale of two cities: Moncton Vs Dieppe

I was reading the Times and transcript at Wendy's and there was a paragraph on the development of Greater Moncton, which consists of the cities of Moncton, Dieppe and Riverview. I am getting more and more interested in urban development and regional growth disparity. According to this article, the city of Moncton fails to build a new convention center and the re-development project of downtown Moncton is delayed. On the other hand, the city of Dieppe has built a new downtown core and even kids can tell the differences.
I go pass the new Dieppe City Hall at least once a week (Thanks to Simply for Life). That area is noticeably different from when I first come. The buildings are artistic and it is a positive externality. The development is progressing in Dieppe, but not noticeable in Moncton. This is not healthy. It is harmful (at least in the economic sense) to the whole community if the three cities cannot cooperate (e.g. water utility). They need each other to survive and building each other is key to success of this region. Can someone propose the merging of the three cities and only one mayor will be elected? Just follow the footsteps of Toronto... but we don't want a dancing Mel Lastman, who is the first mayor of the merged Toronto mayor.
P.S. I was wandering at Toronto's Yorkdale shopping center during the first Christmas after Mel Lastman was elected. There was a big stage in the middle of the mall with a sign that reads, “Unless you are Mel Lastman, get off the stage!" Funny? For some reasons, I suddenly recall our naked King David dancing when he returned to his palace...

Rogers School of Business?

I switch to Rogers Home Phone today! My old phone company was Aliant Canada and the reason I switched was the bundling discount Rogers offers and the bonus portable DVD it offers. This brings up my monthly Roger Invoice to close to $200. Being a sports fan, I subscribe digital TV, sport theme packs as well as a Chinese TV network on top of my high speed internet. While the competition between Aliant (Bell) and Rogers are fierce, Rogers is my preferred choice because of the number of sports channel it offers. Bob McCown, host of the Prime Time with Rogers Sportsnet and the Fan 590, once critiqued Mr. Ted Rogers (Owner of the Rogers communication) in his show which aired on Rogers Sportsnet. Bob was not happy with the renaming of the old Sky Dome, home of the Toronto Blue Jays baseball club, to the Rogers Center. He was arguing that why didn't everything just name after Rogers, who in a sense was his boss? We need a new school of business here in ABU, how about a Rogers School of Business in Atlantic Baptist University?

Bundling is a common practice to discourage competitions. If you buy more than one product, you receive a bundling discount. Even though it sounds like a win-win situation for the bundling firm and the customers, it is not. By committing to bundling, customers help to lower competition level in the long run. Price is more likely to go up and the biggest winner is the bundling firm. Ever since I bundled my service to Rogers with a two year commitment, all services has gone up 2 to 5 dollars a month. There was one time that the total jump was close to $20 because of the number of services I am using. And yet, I cannot oppose or switch to other companies because of the two year commitment that I signed. The Giant corporations can always squeeze money from customers. Isn't that the rich will always get richer?
No wonders why there are people having time to design the following website: http://www.ihaterogers.ca/

Door Crushers...

This is the first Christmas that I don't have any family members beside me. The experience is not as bad as I thought because friends invited me over to their Christmas dinners. This is the first boxing sales that I have the choice to go and buy whatever I want.

Since stores are closed on Boxing Day, boxing sales officially started today which is the twenty-seventh. I geared up myself yesterday night, hoping to get a LCD TV from Future Shop for $399. This is one of the door crusher promotions and I am informed that they will have at least 10 per store. I set my alarm clock at 5:30am because the store opens at 6am today. Well, after hard fought battle with my dream, I got to the future shop at 7am and the TVs were gone. I decided to buy some other door crusher items and I got a digital camera, some memory cards, a DVD recorder, a wireless router, and some accessory items. That costs a big fortune. Even worse, shopping is addictive and I spent like a thousand-naire the whole day. I got a pair of skates, a helmet, Christmas lights, cards and Christmas decorations. At the end of the day, I become a hundred-naire.

Having a giant sales event once a year helps stores to clear their unwanted inventories. Sales can be viewed as a type of price discrimination. This is far from perfect price discrimination, which is the most profitable for stores and most efficient for the society. When price discrimination is not feasible at all, take-it or leave-it pricing generates the most revenue for the stores. Take-it or leave-it pricing means there are no sales promotions and everyone, no matters who they are, always pay one identical price: Just take it or leave it.

Today, I experience the basic problem of economics: Wants are unlimited but resources are scarce. It is time for me to refocus myself and free myself from the shopping bugs... Casinos has some gambling prevention programs that forbid voluntary gambling addicts from entering the gaming facilities; should shopping malls introduce similar programs to discourage shop addicts from entering? Just a thought...

Boxing week sale on, but close on boxing day!

My first Christmas alone in the Maritimes is actually not too bad. Church friends, local Chinese friends invited me for Christmas dinner and I actually had to reject some invitations.
I was hoping to get some bargain during the boxing week sales. Last year, when I was in Toronto over Christmas, I could even shop on the Christmas Day and shops were open for the crash of Boxing Day. In Moncton, however, only some gas stations, convenient stores and most Chinese restaurants were open on the Christmas Day. I had a hard time even getting a hot coffee.
I find it is strange to hear that Moncton shops are closed on Boxing Day, but it is even stranger to know shops are also closed on the 24th of December in Halifax. There is no Sunday shopping in Nova Scotia, but as an economist, this is not a very good policy to promote regional prosperity.
Some Christians oppose Sunday Shopping. I certainly understand the reason behind this is the day we celebrate the ascending of Jesus Christ. We are supposed to go worship on Sundays and not go shopping on Sundays. Frankly, I do not see a conflict between the two. Isn't it in the bible that Jesus tells the Samarian Lady that we shall worship anytime, anywhere in spirit and in truth? Let's think again, can we conclude Sunday shoppers are not Christ followers?

John 4:21-23
Jesus saith unto her, Woman, believe me, the hour cometh, when ye shall neither in this mountain, nor yet at Jerusalem, worship the Father. Ye worship ye know not what: we know what we worship: for salvation is of the Jews. But the hour cometh, and now is, when the true worshippers shall worship the Father in spirit and in truth: for the Father seeketh such to worship him.

Happy Birthday Song

I was at our church's service on Christmas Eve. I was shocked to hear the Happy Birthday Song because I had never heard it in the public. To my understanding, this song is copyrighted until 2030. (See http://www.unhappybirthday.com/)
Copyrights are created to protect intellectual properties, but they are not ex post efficient. Once the initial production is completed, the most efficient allocation is to give everyone who wants it to have a copy. However, copyrights law maybe ex ante efficient, giving researchers/producers incentive to perform research and development. Without these regulations, initial production may not even take place.

First Peter 1:16 Because it is written, Be ye holy; for I am holy.

Christmas Shopping

Moncton is the Hub City of the Maritimes. Because of its geographical advantages, it is a major shopping district. The three biggest shopping centers are the Champlain Place, the Trinity Power Center and the highfield square in downtown Moncton. This is the time of the year that I don't really want to go shopping because of the volume of people floating around.
Among the three shopping areas, the Trinity Power Center, in my opininon, is the most powerful. It is the newest shopping center in Moncton. Even though it offers out-door shopping, it provides a variety of big outlet stores as well as COSTCO. The theme of the mighty Trinity Center is clear, and the target customers are those who live around Moncton. It is well-managed.
The Champlain Place, I believe, is the biggest shopping center in the Maritimes square footage-wise. I really like their most recent radio commerical because it clearly specifies the major advantage of Champlain (indoor shopping) over Trinity. Even though Champlain has lost quite a few of shops recently (Bata, Bombay, Future Shop...), new franchises are coming in.
I was reading an article published by a free newspaper in Moncton about Highfield square, which I don't really think is shopper-friendly. It is located in downtown Moncton, but the only shop one can clearly remember is the Hudson Bay. The article was praising Highfield square for its offering of high-speed Internet for customers. It sounds like they want shoppers to bring their laptops when they want around so that they can look for Internet prices, which is likely to be more competitive than the stores. Interesting decision, isn't it?

I am what I am

Sidney Crosby in his RBK commerical says, "I am what I am." I like hockey, but not as much as baseball. I find Sidney's statment offensive because this is God who once said, "I AM THAT I AM."

Exodus 3:14-15 And God said unto Moses, I AM THAT I AM: and he said, Thus shalt thou say unto the children of Israel, I AM hath sent me unto you. And God said moreover unto Moses, Thus shalt thou say unto the children of Israel, the LORD God of your fathers, the God of Abraham, the God of Isaac, and the God of Jacob, hath sent me unto you: this is my name for ever, and this is my memorial unto all generations.

I have no doubt with Sidney's talent and I believe that he is going to be one of the elite players in hockey, but I will be surprised if his influence on hockey can surpass Mr. Wayne Grezky. I am not saying this is impossible, but saying that it is unlikely. God wants humans to humble before Him and Himself has set a great example in Jesus. Isn't it a great world when every man has lowliness in their mind and each esteem other better than themselves?

Phillipians 2:3-5 Let nothing be done through strife or vainglory; but in lowliness of mind let each esteem other better than themselves. Look not every man on his own things, but every man also on the things of others. Let this mind be in you, which was also in Christ Jesus.

Freer than Free!

A Canadian communication company has a new commercial and it emphasis that their cell phones are freer than free. New clients can receive a $50 billing credit on top of the free cell phone as long as they sign a three year contract. Therefore, they are freer than free.
In the economist's view point, the customers are exchanging their rights to use other company's product in exchange for the free hardware and $50. Given the fact that cell phone bills are paid by the minutes and the profit margin is comparative high, the communication company is still the final winner.
In today's business world, there are no free lunches. To my understanding, free means the rights to choose. I feel this commercial is politically incorrect. Even though new customers are given a free cell phone and some credits on their bills, they have to forgive the rights to choose other companies. This is not freer at all.
There is a myth about freedom in Christianity. A lot of non-Christians think that Christ-followers are giving up their freedom when they join a "church". This is not true. When someone turns to Christ, he or she is freed from sin. In other words, one gains freedom that one do not enjoy. Some used-to be alcoholics can choose not to drink, some used-to-be gamblers can choose not to bet, some used-to-be-smokers can choose not to smoke after they turn themselves into Christ. They have more freedom now, Hallelujah!

Matthew 16:19
"And I will give unto thee the keys of the kingdom of heaven: and whatsoever thou shalt bind on earth shall be bound in heaven: and whatsoever thou shalt loose on earth shall be loosed in heaven. "

Do adults need Gifts?

I was listening to a local radio show. The host was inviting debates whether adults should exchange gifts during the holiday season. The host argued only kids could be surprised by gifts while adults should be able to purchase things whenever they need. The primary, if not sole, advantage of exchanging gifts among adults is that this promote expenditure and hence, speed up economic growth.
As an economist, I agree shopping can stir up our economy. As a Christian, I don't agree the principle that adult does not need gift. What is the greatest gift of all time? The greatest gift ever is that God died on the cross for us and took away our sins. Who can receive this gift? Only those who are born again, which means they need to be mature enough to commit themselves to Christ. This gift is for any adults and most importantly, it is free. We are all sinners and we need this gift from God!

John 3:16
For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.

A new blog

I am starting a new blog! I will try a more relaxed approach this time and blog things I particularly like. Nothing is going to be objective and everything is open to discussions. It is challenging to be both an economist and a Christian. Can economics and Christianity beliefs be integrated? If the answer is yes, how?
I don't believe in having a balance between these two schools of thought because when you do so, you will lose them both. Instead, I think economic theory should be built based on the foundation of faith. This way, we can use the economic tools created by God to glorify Him!

Luke 11:33
No man, when he hath lighted a candle, putteth it in a secret place, neither under a bushel, but on a candlestick, that they which come in may see the light.