Why airlines are always going bankrupt. “Airlines are the classic example of an “empty core” industry: an industry that is structurally incapable of reaching competitive equilibrium.” The piece argues that the sector can be profitable or competitive, but not both, […]
Autonomous cars are going to clog the roads. “Autonomous vehicles are the centrifugal water pump of the roads.” The piece argues that self-driving will make traffic tolerable enough to overuse, unless we start charging for road access before AVs become […]
High risk, low reward municipal spending cuts. “Eliminating IT positions at Austin Energy or the airport does not save you a dime in the general fund and therefore does not free up any money to prevent cuts to parks, social […]
Why ATMs didn’t kill bank teller jobs, but the iPhone did. “ATMs did not reduce bank teller employment. But they miss the second half of the story, which is that another technology did. And that technology was the iPhone.” The […]