Bowling alone and for peanuts too:

In 1964, “bowling legend” Don Carter was the first athlete in any sport to receive a $1 million endorsement deal ($7.6 million today). In return, bowling manufacturing company Ebonite got the rights to release the bowler’s signature model ball. At the time, the offer was 200x what professional golfer Arnold Palmer got for his endorsement with Wilson, and 100x what football star Joe Namath got from his deal with Schick razor. Additionally, Carter was already making $100,000 ($750,000) per year through tournaments, exhibitions, television appearances, and other endorsements, including Miller, Viceroys, and Wonder Bread.

…Of the 300 bowlers who competed in PBA events during the 2012-2013 season, a select few did surprisingly well. The average yearly salary of the top ten competitors was just below $155,000, with Sean Rash topping the list at $248,317. Even so, in the 1960s, top bowlers made twice as much as top football stars — today, as the highest grossing professional bowler in the world, Sean Rash makes significantly less than a rookie NFL player’s minimum base salary of $375,000.

In 1982, the bowler ranked 20th on the PBA’s money list made $51,690; today, the bowler ranked 20th earns $26,645.

The article, by Zachary Crockett, suggests numerous hypotheses for the economic decline of bowling, but ultimately the answer is not clear to me.  I would suggest the null of “non-bowling is better and now it is better yet.”  A more subtle point is that perhaps bowling had Baumol’s “cost disease,” but under some assumptions about elasticities a cost disease sector can shrink rather than ballooning as a share of gdp.

For the pointer I thank Mike Donohoo.

Total outstanding mortgage loans rose more than 30 percent and new mortgage growth clocked in at 111 percent in the past year. Since June 2012, outstanding mortgage loans have grown at an annualized rate of 30 percent. Predictably, that’s pushed prices higher and higher.

In urban China, the average price per square foot of a home has risen to $171, compared to $132 in the U.S. In first-tier cities such as Beijing and Shenzhen, prices have increased by about 25 percent in the past year. A 100-city index compiled by SouFun Holdings Ltd. surged by a worrisome 14 percent in the last year. Developers are buying up land in some prime areas that would need to sell for $15,000 per square meter just to break even.

That is from Christopher Balding, there is more at the link.  Might as much as 70% of Chinese household wealth be in housing?  Here is some follow-up analysis.

Here is more from Erik Hurst discussing his new research:

On average, lower-skilled men in their 20s increased “leisure time” by about four hours per week between the early 2000s and 2015. All of us face the same time endowment, so if leisure time is increasing, something else is decreasing. The decline in time spent working facilitated the increase in leisure time for lower-skilled men. The way I measure leisure time is pretty broad; it includes participating in hobbies and hanging out with friends, exercising and watching TV, sleeping, playing games, reading, and so on.

Of that four-hours-per-week increase in leisure, three of those hours were spent playing video games! The average young, lower-skilled, nonemployed man in 2014 spent about two hours per day on video games. That is the average. Twenty-five percent reported playing at least three hours per day. About 10 percent reported playing for six hours per day. The life of these nonworking, lower-skilled young men looks like what my son wishes his life was like now: not in school, not at work, and lots of video games.

How do we know technology is causing the decline in employment for these young men? As of now, I don’t know for sure. But there are suggestive signs in the data that these young, low-skilled men are making some choice to stay home. If we go to surveys that track subjective well-being—surveys that ask people to assess their overall level of happiness—lower-skilled young men in 2014 reported being much happier on average than did lower-skilled men in the early 2000s. This increase in happiness is despite their employment rate falling by 10 percentage points and the increased propensity to be living in their parents’ basement.

It’s hard to distinguish “push” unemployment that is made more pleasant by video games from “pull” unemployment created by video games. I’m not even sure that distinction matters very much, at least if we aren’t talking about banning video games to increase employment. If elderly people started playing a lot of video games (as soon they will) would we worry that this was making retirement too much fun?

I’d be interested in knowing how much video games have displaced television. I watch more television than my kids, who play more video games. It’s not obvious that this is to their detriment.

Perhaps the issue is that video games like slot machines are so enticing that young people discount the future too heavily or don’t recognize the future cost of not being in the workforce. Maybe. Perhaps what we really need is a 3D, virtual reality, total sensory simulation, awesome video game that is so expensive that it encourages people to work.

Overall, the video game worry is a bit too reminiscent of the Dungeons and Dragons panic, or the earlier panics that books and radio were ruining children’s minds, for me to jump on board.

Friday assorted links

by on September 16, 2016 at 11:50 am in Uncategorized | Permalink

Senior figures in the EU believe that Britain will give up on Brexit if they make negotiations as tough as possible, the Telegraph understands.

British officials are fighting to stop Europe adopting a no-compromise position in talks in the hope that the UK will change its mind about leaving the bloc.

This belief is fuelling the hardline message on issues like freedom of movement that have emerged from Berlin, Paris and Brussels in recent weeks.

More than five senior EU figures interviewed by the Telegraph this week expressed doubts that Britain would go through with Brexit when confronted by the “reality of the bureaucratic nightmare” and the “insane act of economic self-harm”, as they referred to Brexit.

One senior British official involved in the set up for the coming negotiations said the EU elite “seem to think the game is to make us change our minds”.

This stance has left officials fighting to explain to European leaders how “dangerous” a game they were playing, and how “unlikely” it was to succeed.

Here is the full story.  Speculative of course, but don’t forget this bit:

“Perhaps there was a time when this could not have got nasty,” said one source close to Mr Verhofstadt, “but when the Brexit minister calls the chief negotiator ‘Satan’ what response, really, does Britain expect?”

Do they really spell “fuelling” with two l’s?

I can think of a few candidate theories:

1. His views are the right views, more or less, and American voters recognized this.

2. A quite significant percentage of America is very directly racist.  I don’t mean statistical discrimination here, I mean “downright racist.”

3. Give Ray Fair (NYT) his Nobel Prize right here and now, economic conditions truly predict election results at the national level.

4. The “third term Party fatigue” effect is stronger in national elections than we had thought.

5. Hillary Clinton is a weaker candidate than many people had thought.  Maybe so, but that has to be unpacked a bit more.  I would try “the Democratic national establishment doesn’t understand why much of America trusts it so little, so it keeps on doing and saying unpopular things.  Those things include elevating some candidates and also encouraging them to take particular stances.”

6. As Robert D. Putnam suggested, ethnic diversity can lower the quality of governance, and this is one step along that path toward greater fractiousness.  This may blend into racism, but much of it is simply “fear of being in the losing coalition.”  The common claim that the electorate is more polarized than before fits into this.  You might try Ezra Klein’s podcast with Arlie Hochschild.

7. America is not ready for a woman president.  Or maybe it has to be a different kind of woman president, noting that Hillary, while she has passed through many filters, has not passed through the “truly popular with normal voters filter” in the same way that say Thatcher and Merkel did.  And no, New York isn’t normal, sorry people.

8. The Democrats have plenty of policy proposals, but only the Republicans are running on ideas.  And very often an idea beats no idea, even if the idea on the table is a bad one.

I don’t agree with #1, and while #4 sounds like a plausible part of the story to me, as a truly major explanation I find it hard to square with Obama’s continuing popularity.  #3 kicks in but as a dominant force, it seems hard to elevate when median household income just grew at 5.2%, inflation is low, there is no major war, gas prices are low, and asset prices are high.

On #2, I see #5 as a more convincing statement of related ideas, while admitting #2 is a factor.  How well the Democrats do in the Senate might give us some bead on the relative import of #5.

Overall I am seeing a lot of room for #5 and #6 and #7 and #8.  Presumably 5, 6, and 8 are hard for many Democrats to admit, and I genuinely wonder how their thoughts run in the quiet of their homes.  Some are plugging hard for an extreme version of #2, but, as long as we are considering matters of prejudice, I find the gender bias of #7 easier to swallow.  We did after all just elect Obama for two terms in a row, and we have never ever had a woman president or even a serious contender before.

If, I wish to stress that word if.  But that he is still in the running, and making it close, is reason enough to ponder these questions.

Thursday assorted links

by on September 15, 2016 at 1:50 pm in Uncategorized | Permalink

Globalization goes national

by on September 15, 2016 at 11:47 am in Uncategorized | Permalink

That is my latest Bloomberg column, and it address the common charge that globalization is over or has peaked.  Global trade has in fact slowed down a great deal.  But we are seeing a new kind of globalization, only inside the borders of the larger emerging economies, which often are not yet mature nation-states with complete economic integration.  Here is one excerpt:

India also is seeing its different states and regions being tied together through migration, trade, and investment. You can see this in the food: tandoori chicken and dosas have become national standards, available throughout the country, and less closely associated with their particular regions of origin. Hindi is becoming more of a national lingua franca, and the Internet makes it possible to broadcast the same messages to the entire country at relatively low cost. Many these “globalizing” developments have spread expertise and capital from the more developed southern and western parts of India to the poorer eastern and landlocked regions. Labor, in turn, has migrated from the poorer states to the wealthier cities.

Significant barriers remain; for example, Indian trucks must pass through numerous checkpoints to carry goods around the country. Logistics costs remain high, at about 13 percent of gross domestic product. Fortunately, the recent move to a national goods-and-services tax will lower some of the state-level taxes on internal trade. Keep in mind that India’s most populous states would be among the larger nations in the world. So if Uttar Pradesh (over 200 million people) and Bihar (over 100 million people) have closer economic relations, it is a major advance in trade relations and resembles globalization in its economic consequences.

Here is the close:

But a lot of today’s globalization-by-any-other-name is, counterintuitively, taking the form of nation-building. And just as we got both good and bad sides of globalization, so will this process of nation-building be a mixed bag. It may, for example, sometimes include too much nationalism. Nonetheless, these stronger and better integrated political units probably will grow in wealth and economic sophistication, and in due time that will give us more globalization yet.

Much of the piece deals with China, do read the whole thing.

Anti-Surge Pricing

by on September 15, 2016 at 11:23 am in Economics | Permalink

ikea
From Imgur. Hat tip: Alex at LBRY.

Charting Charts Chart

by on September 15, 2016 at 7:24 am in Economics, Education | Permalink

charting

From Priceonomics which notes:

In our sample of Times pieces, we only found one chart used outside the Business section before 1990….By the late 2000s, charts had become central to the journalism at the Times. The newspaper had a team of graphics reporters infusing the paper with innovative visualizations. For the Times web edition, those data visualizations were often interactive.

…The New York Times cemented their prioritization of visual journalism when they launched the data-driven news site the Upshot in 2014. The Upshot’s original team of fifteen included three full-time graphic journalists.

Computers are the obvious driving factor. Data analysis and visualization are powerful tools. I would guess that data IQ has been increasing ala the Flynn effect.

The Wi-Fi kiosks were designed to replace phone booths and allow users to consult maps, maybe check the weather or charge their phones. But they have also attracted people who linger for hours, sometimes drinking and doing drugs and, sometimes, boldly watching pornography on the sidewalks.

Now, yielding to complaints, the operators of the kiosks, LinkNYC network, are shutting off their internet browsers.

That is from Patrick McGheehan at the NYT.

Mexico fact of the day

by on September 15, 2016 at 12:28 am in Current Affairs, Economics | Permalink

Thus far, the only part of the currency universe that has responded consistently to the Trump phenomenon is the Mexican peso.

Not surprisingly, given the threat his policies pose to Mexican trade, Mr Trump’s poll fortunes have been inversely correlated to those of the peso. “That could stretch to a wider group of trade-sensitive currencies,” says Mr Juckes.

The peso has fallen almost 8 per cent against the dollar in the last six months, making it the worst-performing emerging market currency.

That is from Roger Blitz at the FT.  Some of that movement of course may have come from the humiliation of the incumbent government, rather than the prospect of a Trump presidency per se.

And as the U.S. election becomes a tighter race, American equity prices do not seem massively perturbed.  The worry from last week seemed to be more about Fed tightening than anything else.

A good sentence to ponder

by on September 14, 2016 at 7:07 pm in History, Music, The Arts | Permalink

Bach heard the St. Matthew Passion four times at most.

That is George Chien, from the September/October issue of Fanfare.