Adding Anti-Trust to Monetary Policy: The Case of Groceries

Monetary inflation is a complex phenomenon. Not only can its causes be several; it can make it more difficult to distinguish immediate and medium-term economic conditions from more long term, or structural changes impacting our species economically.  Of the former, the relationship between inflation and whether the markets are competitive or oligarchic (or even monopolies) can be better understood, and this in term can put us in a better position to assess the impact of longer-term changes, such as those stemming from the huge increase in the population of human beings since before the industrial age. The price of food (i.e., groceries) is a case in point. Specifically, the impact from presumably temporary shocks during the Covid pandemic should be distinguished from the impact of oligopolistic markets in keeping prices high, and of the increase in human mouths more generally (and longer term) representing increased demand for foodstuff in on a relatively fixed planet.

The full essay is at "Anti-Trust and Monetary Policy."

Major Cracks in Human Resources and Management in the American Grocery Industry Exposed during the Coronavirus Pandemic

For a certain personality-type, character, or mentality, it is easy to blame other people while remaining silent on one’s own mistakes (and mentality). This approach can be particularly harmful during a pandemic, for one’s own mistakes could be passing on the infectious illness. Such mistakes include refusing to maintain a physical distance from other people in public places and retail stores. As noxious as the blaming is, a more significant anthropological point may be that as a social and habitual animal, the human being may not be mentally advanced enough to keep a distance from other such animals even for self-preservation. I don’t think the instinctual urge for socializing exhausts the explanation, for the failure (and even refusal) to respect others enough to keep at a distance even when they ask surely involves weakness that manifests psychologically beyond merely having a bad attitude. Not even the artificial organizational-management systems our species has established are a match for the toxicity of a weakness that is even just passively aggressive toward other people. I contend that American management is susceptable to an even more severe weakness; one that foists organizational power as a club even on customers. 

The full essay is at "Human Resources and Management in the American Grocery Industry."

Hedge Fund Set to Hack Nestlé Up: A Case of Sensationalistic Over-Kill

Does the fact that an earnings-per-share figure has not meaningfully improved over, say, five years justify an overhaul pushed by a hedge-fund activist investor?  Put another way, is a steady earnings-per-share tantamount to failure? Especially for an established company, steady numbers do not evince bad performance. An airline would only foolishly fire a pilot for not climbing once having attained a cruising altitude. Maintaining such an altitude during a flight is hardly a reason to turn a plane around or set it in a radically different direction. 

Dan Loeb of Third Point. Relax, Dan, Nestle is not on a nose-dive.

The full essay is at "Hedge Fund Activist."