I really need to read Steven Levitt's NBER papers.

Business 584 (Business in a Global Society) is taught by a post-Marxist Dane who has accepted Capitalism (or seems that way). Dr. Partum's a strict formalist when it comes to papers; I suspect that he is a formidable logician on paper, but when it comes to teaching a class on Society, he can't organize people to save his career. ;)

He presented the following idea of a changing social contract between Business and Society (the new encompasses the old):

EnvironmentCapital Goods/ServicesPollution
Quality of WorkforceLaborJobs/IncomeDiscrimination/Poverty
Composition of WorkforceMaterialsDividends/Interest
Rule of LawProperty RightsEconomic EfficiencyTrust & Convenience

I added the bold line because not all business externalities are socially negative. We use Brands because we trust the company to not jeopardize their Brand development by selling me a lousy product. The knowledge that Brand equity loss is almost always greater than cost savings by skimping on product lowers transaction costs which means that Trust is efficient.

Next time I talk with him, I'll make some Marx/Hegel analytical puns, see if he appreciates them. ;)

Pessimists of America have approved the following New Year Countdown:

  Is it over yet?
  Is it over yet?
  Is it over yet?