After looking at the data Veronique de Rugy asked: where is this much discussed austerity?

• Spain, the United Kingdom, France and Greece are widely believed to have implemented severe austerity measures.
• Yet their spending is still higher than pre-recession levels.
• In fact, France and the UK didn’t cut spending at all.
• While Italy did cut spending between 2009 and 2010 it increased it by more than what was cut in 2011.
• Countries have raised taxes more than they have cut spending.

To read a further discussion about how in an age of economic woes, flat spending might be a sign of austerity, why raising taxes is a bad idea, what successful reform actually looks like, and what European countries need to do, click here.

Source: National Review

Via: Marginal Revolution

The Economist looked at the quirkier side of CEO’s and business performance:

• According to one expert, a male CEO with two wives is ideal. He has to pay alimony which creates an incentive for him to work hard. However three wives is a negative sign because that many divorces suggest reckless behaviour.
• Single bosses have more volatile returns than married ones.
• Managers who have a greater ownership in the firms they run take fewer holidays.

To read many more quirky and interesting relationships, and more details about each of the ones described above, click here.

Source: The Economist

Via: Freakonomics

After a while in France Karen Le Billon picked up on an interesting trend: French people don’t snack. Highlights of her article include:

• Studies suggest that North American children have three meals a day and snack thrice a day.
• French children on the other hand have four square meals a day and don’t snack.
• French ads for snacks on television carry a warning similar to those on cigarette packs, informing people that snacking in between meals can be dangerous for one’s health.
• French strollers don’t have cup-holders. Nor do cars for that matter.
• While France is renowned for its café culture, most of the people having meals at the cafes are tourist. French people will either be seen walking around or sitting down for a cup of espresso.
• In the rare occasions that French people do snack they eat things such as fruit and yogurt. They are looked down upon when they do this.

To read more about what the French words for snacking reveal about France’s snacking culture, some of the clear advantages this has for parents, how this relates to Dominique Strauss-Kahn and the controversy about snacking in France’s school system, click here.

Source: Babble

Via: Marginal Revolution

As the Eurozone crisis continues to sputter on Suzanne Daley and Nicholas Kulish reported on how Europe’s “lost generation” is dealing with the continent’s economic woes.

• While those that are a part of the Euro-Area have always had the opportunity to work in other countries, the comforts of home and language considerations meant that not many did.
• This is now changing with the Euro-Crisis causing the economies of several countries such as Greece and Italy to stall.
• Germany has already benefitted a lot from the Euro. The currency has stayed low, helping German exporters, and as the strongest economy in the Eurozone the interest rates on its debt have also been low, allowing it to borrow at low rates. Now these skilled immigrants are heading to Germany for jobs.
• If the Eurozone growth crisis doesn’t end soon then these people will begin to settle and establish families in Germany, reducing the likelihood that they will ever return.
• Engineers can make twice as much in Germany as they can in Spain.
• Spaniards are often surprised at how formal the workplace is in Germany, and how direct and quiet Germans can be. Spontaneous hallway conversations about work are discouraged, and instead employees are told to schedule meetings.

To read more about population growth in Germany, why “welcoming culture” has become a part of the vocabulary for Germans, the country’s experience with integrating minorities from other countries, where most of Germany’s immigrants come from, why Germany is referred to as El Dorado by some, how taxes compare, and why the situation currently benefits both countries, click here.

Source: New York Times

Via: Marginal Revolution

Making it easier to access pistols and knives is the latest trend in fashion reports Matt Richtel:

• The rise of laws more conducive to concealed guns has led to a new line of clothing that helps people to better conceal the weapons they are carrying.
• In contrast to the previous look that included camouflage markings similar to those used by the military, the more recent trend is for normal looking clothes to have compartments that can hide weapons.
• Some innovations include a vest where the gun owner can pretend to warm their hands in their pockets but in reality grip onto a firearm in high-tension situations.
• Under Armour has developed a line of weapon-concealing vests that wick moisture away, ensuring that there’s no danger of rust building on the guns.
• Wearers of this fashion say that it maximizes uncertainty – those with ill intentions can never know if the people around them are armed if they look to be sporting common clothing.

To read more and find links where you can buy some of this clothing, what science has to say about “maximum uncertainty”, why you should dress for the weapon and not for fashion, what makes Illinois an exception, and what some of the other clothing innovations are, click here.

Source: New York Times

Via: Marginal Revolution

Students at University of California, Riverside, have thought of an innovative way to deal with the problem of rising tuitions reports The Economist: charge students for their education rather than their parents. Highlights of the plan include:

• Under their plan public universities would offer free education in return for a contractual agreement by the students to pay 5% of their salary for the first 20 years to the university.
• This would put the university at more risk since its revenue stream would be more uncertain although the students believe that it would double the amount of money coming into the system.
• This would mean that higher-income students would subsidize lower-income ones through their future earnings. However the current system already has higher-income parents subsidize lower income ones.
• This might encourage universities to drive resources towards higher income disciplines and away from those such as philosophy.
• Another concern is that if the policy is not implemented across all universities then those who know they’ll have high salaries will have an incentive to go to universities that charge an up-front tuition, leaving the low-income students to study at the universities that require bond agreements.

To read more about how why this system might be more equitable, but also ways that it might not be, how our idyllic vision of university doesn’t really exist, and the numbers that demonstrate just how concerning the tuition problem has become click here.

Source: The Economist

Via: Freakonomics

From the days of hyperinflation that saw the distribution of 100 trillion dollar bills that weren’t enough to buy a loaf of bread, Zimbabwe has come a long way. Crucial to its economic recovery was its decision to peg its currency to the US dollar. However this has led to its own problems writes Lydia Polgreen:

• In Zimbabwe $1 goes a really long way, and most purchases require change in nickels, dimes, quarters, and pennies.
• However while it’s relatively easy to ship US dollar bills across from the United States, it’s too difficult to send over coins which are heavy.
• Other countries deal with this by minting their own coins and promising that their coins are worth the same value in the pegged currency. However after Zimbabwe’s experience with hyper-inflation during which the life-savings of many people were wiped out, nobody trusts money issued by Zimbabwe’s government.
• Some have resorted to using South African coins but even those are in short supply and the fact that its value fluctuates relative to the US dollar makes it difficult to determine how much each South African coin is worth in US currency.
• A barter economy of sorts has risen where cashiers sell thing such as 5 cent aspirins to make up full dollar amounts so that coins don’t have to be given out.

To read other creative ways that people have dealt with the problem, as well as why $2 bills are popular, why some $1 bills have turned black, what the American Federal Reserve has to say about the problem, why Zimbabweans approach the problem with humour, and the examples of various people affected by the problem click here.

Source: New York Times

Via: Marginal Revolution

10% of America’s workforce now regularly works from home write Nicholas Bloom, James Liang, John Roberts and Zhichun Jenny Ying. What effect does this have on productivity? Their research suggestes:

• Over a 9 month period there was a 12% increase in performance for those who opted to work from home.
• 8.5% of that was due to people working more minutes because they took fewer breaks and fewer sick days.
• 3.5% of that performance boost was due to more productive use of time, likely due to a quieter environment.
• Those who worked from home also reported higher job satisfaction, and their attrition rate fell by 50%.
• There were no negative consequences for those left over in the office.

To read the entire report, its methodology, some more conclusions, some limitations of the study, and what this might mean for businesses, click here.

Source: Stanford (.pdf)

Via: Chris Blattman