Economist’s make a distinction between normal goods and inferior goods. Normal goods are the type that you buy more of as you get richer (such as four course meals at the Ritz Carlton) and inferior goods are those that you buy less of as your income increases (think Ramen noodles). So, are kids normal goods or inferior goods? As people get richer do they choose to have more or fewer kids?

Freakonomics concludes that no matter how you look at it, whether by country, or by history, and controlling for factors such as the advent of contraceptives; it is clear that children are an inferior good. You can read their analysis over here.

Source: Freakonomics

The idea that the Fed’s QE2 program has caused a rise in commodity prices has gained a lot of traction in recent times. Marc Chandler on The Street argues otherwise. He notes that commodities are not homogenous and argues that monetary policy is too blunt a tool to explain the different price changes in various commodity indices. Chandler also contends that significant investment actors such as pension funds would not invest in commodities in lieu of corporate bonds or other more traditional investment vehicles. Finally he suggests that a depreciated dollar caused by the Fed’s unprecedented policies is not causing the higher prices seen at home. He cites the unstable correlation between commodity prices and fluctuations in currency values as evidence for that argument. Read his entire article here.

Source: The Street

In this article Bill Ridgers discusses some of the strange things that affect the types of decisions we make. Some interesting points include:

• There is evidence to suggest that we make better decisions if we have really full bladders
• Judges are more likely to grant a pardon to an individual if they have just eaten a full meal, rather than if they are at the end of their sessions.
• What an interviewer is holding can affect how well the interview progresses. If an interviewer is holding a heavy clipboard then they are likely to view the job applicant as having more gravitas. If they are holding a lighter clipboard then they’re more likely to view the job candidate as flaky.
• Sitting on a hard chair while negotiating the price of a car will make you negotiate harder.
• You’re more likely to associate a person with warmth if you’re holding a warm drink in your hand when you meet them instead of a cold drink.
• Sleep deprivation makes you more of a risk taker

Read the article for more.

Source: Intelligent Life Magazine

Via: Freakonomics

Freakonomics contributor Justin Wolfers argues that it’s been five years since the recession began. In his report he also finds that it’ll be 2013 before America’s per capita income returns to its level in 2006.

Source: Freakonomics

One strange fact about North Korea is that the country has a chain of restaurants around the world serving traditional North Korean cuisine made and served by North Korean citizens. People aren’t sure about the motivation behind these restaurants with some suggesting that it is an important source of foreign exchange while others argue that it is a product of Kim Jong Il’s ego. Whatever the reason, Sebastian Strangio from the Atlantic magazine recently published this piece on a North Korean restaurant in Cambodia. Some highlights include:

• The restaurant was full even on a Wednesday night
• “Sweet meat” is a North Korean euphemism for dog
• The waitresses perform song sand dances every night. ABBA’s Dancing Queen is one of them
• The North Korean staff live in quarters above the restaurant and don’t seem to have much freedom to leave
• In the wake of the Middle East uprisings, North Korean workers abroad were prevented from returning home in case they spread the revolutionary ideas
• To be allowed to work at the restaurant, the worker’s entire family history is checked, going back to their grandparents.
• Only the tallest and prettiest girls are allowed to work at the restaurants
• North Korean agents are on site all the time to make sure that nobody defects. The families of the workers are held hostage by the regime

You can read more over here.

Source: The Atlantic

Mashable found that in the immediate wake of the Anthony Weiner story, congress members cut the number of tweets they sent by almost 30%. Mashable produced an infographic that includes a graph comparing the timeline of the scandal to the flow of Congressional tweets among other things. You can see it over here.

Source: Mashable

Expert Insight is a new business that aims to create a market for personal advice from experienced professionals. Experts sign up with the site, put down the rate they’ll charge for an hour of their time (a few keep this amount private), and then buyers are able to find them. If they agree to the price then they’re given the experts’ email address and set up a Skype style video conversation with them. The site is currently dominated by Chess Masters, Poker Champions, Economists and Sports Coaches. Slate’s Annie Lowrey notes that while some experts such as Nobel Laureate Gary Becker charge up to $5000 for an hour of their time, many people pay far more in tuition at universities. At least on Expert Insight they are not constrained by a course syllabus and do not have to share their time with other students. At any rate some experts can be had for as little as $100 an hour. Thus far the site has more people selling their time than those buying it. Read more of Slate’s coverage on the new service here, and you can try it out for yourself here.

Source: Expert Insight

Via: Slate

(*Minimum purchase of two required)

The Austrian government has decided to sell of two of its peaks to the highest bidder. Buyers have until 8^th July to place their bids. Read more over here.

Update: In the face of public outcry the Austrians have suspended the auction of the mountains. It could be rescheduled but under different terms that might restrict the eligible bidders to only those who are Austrian citizens.

Original Source: BBC News

Updated Source: BBC News

In this article, all the newspaper articles reporting on the grim job outlook for college graduates and the decreasing value of a college education are called into question. It’s become common to read these kinds of articles, so it’s nice to see someone with a more optimistic attitude. The stories of college graduates given in the article is especially interesting, considering they were once used to show that graduates are no longer finding good jobs so easily and now they’ve become successful in various career fields.

Source: The New Republic

Via: Economix Blog

Already ruling the skies with the ground breaking double deckered A380; Airbus has revealed that they’re not done innovating. By 2050 they want to see an aircraft made with a flexible membrane that can become transparent, giving passengers panoramic views of their surroundings as they travel to their destinations. Also included in the vision are holographic pop up displays, in-flight entertainment powered by the heat of the passengers and an ‘Interactive Zone’ where passengers can play virtual golf. Click here to read about other features such as a ‘Vitalizing Zone’ and a ‘Smart Tech’ area.

Source: Daily Mail