Tokyo and tech through the eyes of a split pea

Risk management

Bubble Generation pointed out a slew of good articles, two in particular from the Economist. The first is Risk management for the masses, by “Irrational Exuberance” author Robert Shiller. Accounts on how technology seems to be increasing the inequality gap. Here’s an interesting “solution”:

It will also be possible to create for individuals contracts that provide incentives for them to advance their own individual careers. These would be analogous to the kind of contracts that venture-capital firms draw up for the management of young companies. An individual may then go forth and develop a highly risky personal career, acquiring specialised skills that also have a small probability of being extremely important but carry as well a risk of becoming useless. Such individual contracts could be a breathtakingly important stimulus for our economy, if they free people from career risks and allow them to be more adventurous in all aspects of their careers. We may then expect to see an explosion of individual creativity and diversity.

This actually reminds me of a neat “financial aid package” that was pointed out to me last year: My Rich Uncle. I like how investors have an added incentive to get you a job, though they may push for something higher-paying that you may not enjoy as much. Great example on direct intellectual investment, showing clear diversion from a pure manufacturing mentality.

Economist also has a ditto on running a mafia business.