SUMMARY

  • The Parable Of The Broken Window
  • Betting Against Disaster
  • New Theories For Sluggish Wage Growth

It’s a little-known fact that I hold the world record for the 800-meter run. The record book says the mark was set by David Rudisha of Kenya in 2012, but that is incorrect.

One day during grade school many years ago, a group of my friends decided to play baseball in the schoolyard. School policy required the use of a rubber ball on such occasions, but we decided to use a real baseball that afternoon. During my turn at bat, I made unexpectedly solid contact with a pitch, sending it screaming through a second-story window. And immediately thereafter, I set the world record for 800 meters, the approximate distance between the playground and my home.

The recent U.S. weather disasters got me thinking about broken windows. This has been a particularly bad month for unfortunate events, but according to the AON Global Climate and Catastrophe Report, worldwide weather-related economic losses have been elevated for several years now.




Source: AON
Economists have been working overtime recently to account for the impact of hurricanes Harvey and Irma. Damage assessments are still being completed, but estimates are nearing $200 billion in property and business losses.