Homo Economicus
Heard 'Round the World
As my high school friends began inquiring about my safety, I had a novel realization that I was a proud Bostonian. I have lived in the city for almost three years. I’ve savored the food, cheered for the teams, and complained about the weather. But it took a tragedy for me to become fully conscious of my identity as a Bostonian.
The Soul of Economics
Capitalist economics has celebrated peace since its inception in the publication of The Wealth of Nations. While Adam Smith is primarily known for his stance against government intrusion in markets, he was also a strong opponent of government involvement in imperialist conquest. During a period when nearly 70 percent of Great Britain’s non-interest expenditure was spent on a military arms race against other European imperial powers, Smith recognized that the military, “however honorable, however useful, however necessary… produces nothing for which an equal quantity of services can afterwards be procured.” In particular, Smith argued that the benefits of British monopoly in North America are not properly compensated by its cost of subduing the American colonies. The merchants are the overwhelming benefactors of imperial colonies, although British taxpayers ended up paying for military spending. At a time when Great Britain’s commercial oligarchy oppressed the American people with force, Smith laid down an economic case for self-determination.
Irresponsible Divestment
First, the group was factually incorrect to call for Harvard to “sever financial ties” with gun manufacturers because Harvard has no financial ties to gun manufacturers. The morally dubious fund in question is iShares Russell 2000 Index Fund, an index fund that tracks the performance of 2,000 small-cap American companies indiscriminately. According to the prospectus of the exchange-trade fund, HMC is not a stakeholder of Smith & Wesson until it chooses to redeem its share in the ETF, a process that HMC is not qualified to do. The most that the group can claim is that Harvard’s endowment “gains exposure to Smith & Wesson’s price movement.” Also, even if Harvard owns stock in a company, it does not mean that Harvard’s money is supporting the company’s operations. Since Smith & Wesson is unlikely to raise capital in the future, both the ownership of the stock and price of the stock are irrelevant to the company’s daily operation. Claiming that Harvard’s money will “support the manufacture and production of assault weapons” is vast hyperbole and shows the group’s lack of understanding of the investment process.
Keep the Brightest at Home
The Immigration Innovation Act of 2013, unveiled on the same day that President Obama proposed a framework for comprehensive immigration reform, aims to increase the number of work visas given to foreign nationals with advanced degrees from 65,000 to 115,000. It also exempts holders of advanced degrees in science, technology, engineering, and mathematics from the annual cap on green cards.
