Quartz talks about the benefits of free trade

Here is what Quartz says would happen if the world split into two separate trading blocs.

2.2%: Expected decline in global trade growth in 2022, according to the World Trade Organization

5%: How much global GDP would drop if countries split into two economic trading blocs

1%: Fall in US GDP if this split happened

7%: Decline in GDP for developing nations under the arrangement

43: Countries that Apple sources materials from to build the iPhone

25-30%: Global supply of palladium, a material used in iPhones, that Russia produces

The West Mimics Mao, Takes a Green Leap Forward

My takeaway is "Look before you leap".

Not everyone is enthused about how governments are pushing green energy.

"One of the essential lessons from China’s Great Leap Forward is that catastrophic failures inevitably follow from politicians’ insistence on ignoring reason, logic, truth and economics. Europe’s current energy crisis, California’s continuing power outages and Sri Lanka’s food shortages are all warning signs. The Green Leap Forward has set humanity on a fast track to another man-made catastrophe." WSJ, Sept. 2022

Another opinion in today's WSJ bemoans the proclivity of Telsa batteries to overheat and catch fire. Who knew?

Success at Work Is Warped by Your Co-Workers’ Salaries

Design your compensation scheme carefully.

"It was as if simply knowing how the market valued talent made them want to be entirely different people at work. These players couldn’t resist the incentives 'to produce whatever the boss is measuring and rewarding,' as Mr. Card wrote in an email, even if those bosses were measuring and rewarding the wrong numbers." WSJ, Sept. 2022

Electric-Car Demand Pushes Lithium Prices to Records

Driven by a surge in Chinese electric-vehicles sales, the sharp rise in a key commodity for batteries could slow adoption of EVs globally. WSJ, Sept. 2022

Questions

1. How would an increase in the number of EVs affect the equilibrium price and quantity of lithium?
2. How would an increase in the price of lithium affect the equilibrium price and quantity of cars?

A Plan is not a Strategy

Roger Martin hosts a HBR video lecture discussing the differences between planning and strategy.

Elasticities

 From Wikipedia:

Are TSA checkpoints worth the expense?

Kriston Capps reports: "Using the same formula* as the researchers (and some similar assumptions), I estimated the same costs for airport pre-boarding security. TSA checkpoints have an annual cost per life saved of $667,000,000—two-thirds of one billion dollars."

Why does the government require screenings if the cost per life saved is so high?

Can you think of other policies the government could impose that would save lives at a lower cost? Why doesn't the government impose those policies?