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The Economics of Piracy

Friday, March 4th, 2011

pirate-ship.jpg
(photo credit: paulhami)

Sometimes it’s true: the best way to deal with a bully is to ignore him. But everyone’s got to have a back-up plan, and it looks like the U.S. is getting fed up with the Somali pirate industry.

  • Back in 1801, when pirates still wore stockings, Thomas Jefferson decided to end America’s policy of paying off pirates for safe passage through the Mediterranean. The Tripoli-based scoundrels demanded bigger fees, but all they got was a war with the U.S.
  • Today may be another turning point; Somalian pirates have been a menace to shipping companies for years, but never before have they been so violent. The recent murder of four vacationing Americans raises the question of just how much the U.S. is willing to take to avoid a major conflict with an ugly enemy.
  • The U.S. is hesitant to take military action against the pirates because it’s just too big a job for an army that’s already stretched thin. The ocean is immense, piracy has roots throughout the “failed state” of Somalia, and there is no other viable economy to replace piracy with once it’s eliminated.

Facts & Figures

  • The average ransom for a captured ship is $5 million
  • The average amount of time hostages spend in captivity is 6 months
  • The “red zone” occupied by predatory Somalian ships is bigger than 1 million square miles of ocean

Best Quote

“Of course, I do not know what the U.S. will do in response to this latest atrocity. But Jefferson advocated an armed response and eventually war against Tripoli for far less provocation.” – Frank Lambert, professor at Purdue and an expert on the Barbary pirates

What do you think?

What company could come up with a profitable pirate-control product?

Get to it!

Check out the damage done as of the end of February 2011 in this New York Times infographic. The red numbers show number of vessels currently occupied by Somali pirates, and the white numbers show the number of civilians held hostage on each.

nytimes-pirates-graphic.jpg
(credit: Bill Marsh and Scott Garapolo/The New York Times)

North Carolina Schools Attempt to Modernize Educational Integration

Friday, March 4th, 2011

little-rock-school-integration.jpg
(photo credit: The U.S. Army)

The Wake County school system has led the nation in fighting educational inequality for forty years. But a series of challenges have forced leaders to be creative when it comes to integration that pleases parents.

  • The system’s race-based attempt at integration was deemed unconstitutional in 2001, so it switched to school assignment based on socioeconomic status (wealth and income). But keeping schools balanced between high- and low-income families meant students were frequently bumped from school to school.
  • In 2009, a new conservative school board decided that students should be sent to the schools closest to their homes, ensuring that the racial and economic barriers in the broader community would be repeated at school. The decision sparked outrage throughout the country.
  • As a compromise (and a nod to the results-oriented business community), a new proposal suggests that students be permanently assigned to schools based on achievement. That way, no student is forced into a low-achieving school simply because of their race, class, or location, and school shuffling will be kept to a minimum.

Facts & Figures

  • Under the current integration plan, each school has 40% of students qualifying for free lunch and 60% who do not qualify
  • Under the new proposal, each school would have 70% of students at grade level or higher, and 30% performing below their grade level

Best Quote

“What’s the use of living in a gated community if my kids go to school and get poor all over them?” – Stephen Colbert, Fake News Reporter

What do you think?

How will students be labeled as high or low-achieving? And what happens if a low-achieving first-grader becomes a highly successful third grader?

Get to it!

Does educational inequality get you riled up? Make a statement.

Who Owns Facebook?

Friday, March 4th, 2011

who-owns-facebook.jpg

i.e., Who’s profiting from your news feed addiction?

Facebook isn’t publicly-traded, which means you can’t buy stock in the company on any stock market. But it seems to have found plenty of well-heeled investors without reaching out to the great unwashed masses (i.e., us).

Who Owns Facebook?

Friday, March 4th, 2011

who-owns-facebook.jpg

i.e., Who’s profiting from your news feed addiction?

Facebook isn’t publicly-traded, which means you can’t buy stock in the company on any stock market. But it seems to have found plenty of well-heeled investors without reaching out to the great unwashed masses (i.e., us).

As Seen on the Web… Money, Health, and One Crazy Statistician

Thursday, March 3rd, 2011

Seriously, we’ve never been so excited to watch someone talk about statistics.

In just four minutes, learn everything you need to know about the relationship between income and lifespan, and how the wildly the world has changed since 1810. Very cool.

The Government Says Your Life Is Worth Saving…

Thursday, March 3rd, 2011

“WASHINGTON — As the players here remake the nation’s vast regulatory system, they have been grappling with a subject that is more the province of poets and philosophers than bureaucrats: what is the value of a human life?

The answer determines how much spending the government should require to prevent a single death.

To protests from business and praise from unions, environmentalists and consumer groups, one agency after another has ratcheted up the price of life, justifying tougher — and more costly — standards.

The Environmental Protection Agency set the value of a life at $9.1 million last year in proposing tighter restrictions on air pollution. The agency used numbers as low as $6.8 million during the George W. Bush administration.”

What do you think?

How much is YOUR life worth? (We’re not just talking about your net worth, either!)

“Last In, First Out” Rule Could Make Some Schools Nearly Teacherless!

Thursday, March 3rd, 2011

“Some of New York City’s 1,600 schools would lose more than half their teachers while others would lose none under Mayor Michael Bloomberg’s plan to lay off 4,600 teachers if the last-in, first-out policy is not changed.

…

Under the last-in, first-out policy, schools that are new, have grown heavily in recent years or are situated in high-poverty neighborhoods would be hit the hardest. Columbia Secondary School on West 123rd Street would lose 14 of its 20 teachers, or 70%.”

What do you think?

How would you handle teacher layoffs? Is there any way to balance the city budget without cutting public school jobs?

Strategies for Change: An Introduction

Thursday, March 3rd, 2011

Welcome to our new series, showing you how the changes you want to see in the world actually happen!

Check out our other SfC shorts:

Strategies for Change, Part 1: Activism
Strategies for Change, Part 2: Advocacy
Strategies for Change, Part 3: Direct Service
 Strategies for Change, Part 4: Education

How do your values influence your spending?

Thursday, March 3rd, 2011

A lot of different things can influence how you spend your money – your account balance, your blood sugar level, the weather. But one of the most important and overlooked factors is your personal set of values. That’s right. Values.

Take this quick quiz and see how you stack up against others (who may have similar values to yours) when it comes to how you spend your money.

Now look at your last bank or credit card statement. What portion of your money goes to experiences? How about material objects? What kind of experiences and objects do you tend to spend the most money on?

Used Mobile Phones More Valuable Than You Might Think

Wednesday, March 2nd, 2011

“More companies are jumping into the business of refurbishing and reselling the used cellphones and other electronic gadgets clogging Americans’ drawers and closets.

Within a few years, the used market could account for a fifth of all cellphone sales in the U.S., says Stephen Manning, chief executive of ReCellular Inc., one of the largest U.S.-based cellphone refurbishers.”

What do you think?

What do you usually do with old cell phones and other electronic items?

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