Do Immigrants Harm Societies?

The immigrants do not harm societies.  They benefit them by creating jobs, demands for products, and mobilize economic activities.  But the critics of the immigrants may disagree.  In their views, immigrants replace jobs for the locals, hence creating unemployment and put stress on the economy.  Anti-immigrants also believe that immigrants increase crime rates, lower standard of living, and drive down the housing value.

To dispel these claims against the immigrants, their contribution to societies must be examined empirically and with evidenced-based case studies.  The immigrants may create a short-term unemployment, but in the long-run they create employment by driving up the demands for products they buy from their earnings; they take jobs that are considered menial for the locals, hence creating management positions to manage the general labor force.  So, instead of driving down the wages, as the critics for the immigrants would argue, they actually create competitive wages.

The immigrants create vibrant communities.  They create a positively competitive environment where locals strive to excel socially and economically.

To read more about the impacts of immigrants on communities, please click on the link below.  Giovanni Peri at the University of California, Davis conducted a thorough and evidence-based study to dispel the myths we have about the immigrants.

http://www.migrationpolicy.org/pubs/Peri-June2010.pdf

Courtesy: Migration Policy Institute

If I Rise: a brilliant and inspirational theme song from 127 Hours

Danny Boyle's 127 Hours is an inspirational movie based on true events. But it is inspirational in a way that one can be inspired to admire his/her everyday surroundings, people he/she loves, things he/she does. And all these do not have to be after effects of a particular moment or a momentary lapse of reasons. We need to be who we are every moment in our lives; love the ones we do unconditionally.

127 Hours is not a movie about a loss. It's about gaining every bit of who we are when we confront the precipice of no return. It's a movie that tells us not to fear the precipice but to confront it. It's a movie about who we love; who we forget to love; how we forget to love; when we forget to love. And then somehow finding an absolution. This movie tells us this much.

The song "If I rise" is a fitting tribute to a brilliant movie and an unforgettable cast. Here's the beautiful song by Dido -- If I rise.

Creative Destruction: a theory at work

Joseph Schumpeter, the famed Austrian economist, in discussing capitalism’s market power illustrated the consequences of such power – “creative destruction” of the smaller firms by the larger ones.  This phenomenon occurs due to the economy of scale, meaning larger firms leverage the power and innovation of technology, human resources, and other forces to establish cost-efficient production operations.  In doing that, larger firms are able to reduce their marginal costs below the prices, thus setting up a direct or indirect monopoly in the market.   Unable to compete, smaller firms are eventually forced to leave the market.

Carvajal and Castle (2009) article in The New York Times illustrates such a remarkable case.  Please follow the link below to read the full story.

http://www.nytimes.com/2009/05/06/business/global/06smithfield.html?_r=1&pagewanted=all

Courtesy: The New York Times

Mac Air: a new air apparent

Someone with a last name Jordon ruled the air.  And a distinct image of him soaring through the air has become a worldwide logo, know as Air Jordon.  His days of flying through the air have long gone.  His logo still lives on.  But there’s a new kid in town now – another air apparent possibly, Mac Air.  It’s a new 11-inch razor thin mac notebook creating a lot of buzz this Holiday season.

Here’s a review of the new Mac Air from The Washington Post.

Courtesy: The Washington Post

3D Technology: it's here!

The electronic stores like Best Buy have got a new facelift.  Its walls now adorn with a new generation of TV -- 3D TV.  The viewing cubicles now have oversized 3D TVs instead of just 720p or1080p TVs.  The 3D TVs are much slimmer and more powerful with some more than 1 to 3 million contrast ratios, a resolution that offers ultra-clear images.  3D TV requiress specialized requirements like 3D glasses and compatible movies and programming.  While it is still in its infancy, the 3D TVs are catching on fast and who knows what the personal entertainment would look like by next Christmas.

Here's a video from The Washington Post about 3D technology.

 http://www.washingtonpost.com/wp-dyn/content/video/2010/08/16/VI2010081603065.html

Source: The Washington Post

The Theory of Social Business: to be (governed) or not to be (governed)

Here’re some thoughts on social business that Dr. Yunus is promoting in Bangladesh.  On his recent visit in Germany, he argued against government involvement in social business to prevent misuse of, say, government tax cuts by individuals or groups.  I believe he's invoking Ronald Coase's theory, only without the government involvement.   According to Coase, in a perfect world, firms work together to resolve transactions cost issues to the point where the transaction cost would be zero.  In reality, he also argues, transaction costs are not always zero.  Therefore, government intervention must be needed to resolve the transaction cost dispute when firms alone cannot resolve it.   

In Bangladesh, Grameen Bank’s success is largely augmented because GB is the only sustainable model.  In other words, there is hardly any competition.  But also it invokes the idea of monopoly, an economic inefficiency.  But long-standing corruption and lack of reform policies from government enabled GB to create such an impact on micro-lending business.  At the same time, GB has built an enormous empire in Bangladesh by establishing a number of other small- and social-business subsidiaries, like Grameen Knitwear and Grameen Fisheries.

But massive corruption in South Asia may bring opposing thoughts to the theory of Dr. Yunus’ social business model without government intervention.  For example, in light of the recent corruptions in its micro-lending sector in India, it could be argued that government actions could mitigate corruption.  It does not have to be just tax incentives.

Dr. Yunus has a strong pro-entrprenuership stance without government invention.  For countries like Bangladesh, India, and Pakistan government intervention or lack thereof is a double-edged sword.

The link to Dr. Yunus' comments on social business follows:

http://muhammadyunus.org/Yunus-Centre-Highlights/prof-yunus-against-govts-in-social-business/

Technology As We See IT

This week's technology snippets focus on the following topics:

Snippet # 1
The Washington Post, November 1, 2010

Topic:
Net-neutrality

Link:
http://www.washingtonpost.com/wp-dyn/content/article/2010/10/29/AR2010102905957.html


Description:
With a looming power shift in Congress, the debate over net-neutrality is heating up.  No one knows what the outcome of the election will be.  But every one is concerned about slow economy, joblessness, and housing woe.  Once again, people seek change to recover from the sluggish state of the economy. 

Reshuffling decades old telecommunication law poses a risk, both politically and economically.  It’s hard to predict what impact the net-neutrality will have on economy.  Taking away a free-market model in favor of a state-controlled policy does not seem logical because it removes competition. 
On the other hand, government accountability to control malpractices by the large organizations could enhance public trust and equal distribution of technology.
Either way, net-neutrality is a two-edged sword, not easy to handle but it must be disarmed from the grip of political quagmire and corporate power.  

Why do I like it:
I like it because it raises an issue from the business point of view which raises questions on the feasibility of net-neutrality.

Snippet # 2
CNN, November 2, 2010

Topic:
Social networking

Link:
http://www.cnn.com/2010/TECH/social.media/11/02/facebook.breakups/index.html?hpt=T2

Description:
The privacy is out the door – sounds like a cliché.  But this CNN report shows that the social networking sites like Facebook now use data based on their social traffic site to predict the break-up pattern.  Who knows what else they know.  But we cannot just blame Facebook.  We need to be vigilant about sharing and using personal data on the web.  Instead of posting actual date of birth why not making up one.  But the point of this article is that social networking sites now have incredible amount of personal information stored at their disposal.  And they will manipulate these data to their advantage. 

Why do I like it:
I like this article because it shows how nonchalant users can be about using personal information on the web.

Snippet # 3
The Washington Post, November 2, 2010

Topic:
Food and energy

Link:
http://www.washingtonpost.com/wp-dyn/content/story/2010/11/01/ST2010110106534.html?sid=ST2010110106534

Description:
The Buddhist philosophy preaches empowerment of human lives and nature.  This article, based on a new trend in China, focuses on the Buddhist philosophy in restoring balance of nature and nurture.  A group of young and affluent professionals are leaving their comfortable jobs for farming to harvest organic food.   Concerned about the quality of food, these Chinese professionals are poised to grow food naturally, free of pesticides and other artificial chemicals.  This trend is a stark contrast in a nation where industrialization and manufacturing are rampant in every conceivable city.  Farming is now considered a taboo.  

Why do I like it:
I like this article because of the novel intentions adopted by the affluent and young generation in China to restore nature’s balance by harvesting organic food.