People Stay in Communities After Jobs Disappear

Surprisingly (to economists, anyway), even though these communities remain decimated, many people have still refused to leave them. Autor, Dorn and Hanson find that it was only foreign-born workers and native workers ages 25 to 39 who were likely to leave. Everyone else basically stayed, even if the economic rug was pulled out from under them. It contradicts the standard economic model, which says people will rationally move to where better opportunities present themselves. Why did so many p...

 Consider the Longevity of the Knowledge You Consume

While most of us focus on consuming information that we won’t care about next month, let alone next year, Buffett focused on knowledge and companies that change very, very slowly or not at all. And because the information he was learning changed slowly he could compound his knowledge over time. And as Schroeder notes, Buffett has been in business for a long time, giving him incredible opportunities to create a cumulative base of knowledge. Expiring information is sexy but it’s not knowle...

 Accidental Inventions

To begin with, often you just don’t know change is coming. Even if you’re personally involved, you may be looking the wrong way at the time, like young William Perkin of London in 1856. Around then, everybody wits looking for benzene rings and chemistry was the flavor of the month, and Perkin, a chemist, was trying to be the young science hero who would save the great British empire by discovering the way to make artificial quinine chemically. You see, our administration and army chaps we...