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The Madera Tribune

Economists win big one for the rich

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webmaster | 10/15/13

Three Americans have won the Nobel Prize for economics, and it seems as though they certainly deserve it. According to The Associated Press, the new Noble laureates have done much to shed light on how and why we spend our money, or for that matter, how and why we don’t spend it.

Eugene Fama of Chicago University, for example, revealed that modern financial markets absorb information so fast, individual investors have about as much chance as a tray of ice cubes in Death Valley in August of making any money. Professional investors do better, of course, as long as they can convince ordinary people to give them money to play with. Sometimes those pros make mistakes, being only human, and cause massive depressions, but what the heck — a depression now and then builds character among the poor.

Personally, I don’t pay much attention to professional economists. I do keep an eye on our cat, though. Mrs. Doud will go to the store and load up on cat food, and that night when I open up a can to give it to the cat, the entire economy waits to see what will happen. If the cat likes the cat food, the prices of houses will go up. The well-known Case-Shiller index of home prices shows this is so. (The index is not as well known as Miley Cyrus and her twerk dance, but you have to keep these things in perspective.) Robert Shiller of Yale, another of the Nobel winners, helped come up with the index, and it basically says this: “If the cat ain’t happy, ain’t nobody happy.”

The third Nobel laureate, Lars Peter Hansen, also is from Chicago, and also has done a lot to make the rich richer.

The three will get richer themselves, divvying up $1.2 million in prize money. I suggest that after they pay their taxes and their tithing they should stock up on whatever brand of food their cats like. That will be an investment which always will pay off.


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