Category: economics

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Time and money

In the English-speaking world, most people will be familiar with the expression “time is money”. In times of working for money as pay, rather than growing your own crops, we calculate hourly, monthly or yearly salaries. Time is a habitual point of reference in production systems and calculations of economic growth. Inflation and depreciation speak to value over time, just as investment and returns accrue over time. For comparisons of different investments the chosen horizon becomes a decisive factor. Of course, in the long run we are all dead, but in the meantime time matters a lot, doesn’t it? Take out a loan and you realize how much time will matter, suddenly. Now, let’s turn around the causality, Money is time or can be buy time with money? For many processes this seems to be the case. With money you can buy time off working, or pay somebody to do work instead of doing the work yourself. You can “win time” or gain more free time this way. However, towards the end of your life, money might no longer suffice to buy you time before death even with lots of disposable income or cash. From a philosophy of science perspective, we might even question the concept of time-linked causality altogether. The relationship between time and money gets even more interesting if. we take intergenerational considerations into account like inheritance and environmental heritage. … and “the times are a changing”.  

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Premium for silence

People are willing to pay a premium on housing prices for a more silent environment. In the study Enrico Moretti & Harrison Wheeler (2025) estimate that the construction of a silencing wall near a noisy traffic junction or road will increase prices for every decibel of noise reduction by about 3%. Distances closer to the noise shields get higher increases and this mechanism works even up to 400 meters away from the isolation. The investment in decibel noise reductions (not statistical noise) meets a willingness to pay a premium on housing prices. Investment in positive environmental effects (silence) have an obvious marketable premium value. This is most likely just the obverse effect that noise nearby housing is penalized and part of the social mechanism of gentrification. Housing prices and rental costs are known to be powerful drivers of gentrification as well.

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State capitalism

It is the 2025-12-17 edition of the Wall Street Journal (WSJ) that touts President Trump’s governance as “state capitalism”. Through a listing of recent state interference into the functioning of the economy, the branding of this as state capitalism by the capitalist-owned press is without precedent. The President’s office has obliged NVIDIA to pay 25% of revenue from its China business on advanced semi-conductors to the Trump-run government. We might call this a kind of kick-back or blackmailing, if you want to expand or keep your business with a specific client. Major institutions like the Central Bank (Federal Reserve in the USA) are tackled to follow state orders rather than keep an eye on their independent assessment of facts about the economy. Nomination of governor positions have been subject to persistent interference from the president’s office rather than the government taking a moderating role of divergent interests, competences and lobbying.
The medium and long-term inefficiencies of an “at-will economy” have several examples, many in South American economies. The US economy is moving South in several respects, with the loss of the value of the $ compared to the €, maybe even devaluation is used as a strategic economic weapon. (Image: Ballroom in Chateau Vaux-le-Vicompte, France)

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БЪЛГАРИЯ Bulgaria

The expectations of the entry of Bulgaria into the EURO-Zone are high towards the end of 2025. On the 1st of January 2026 we have new coins circulating in the Euro-countries. The addition of a country to the European currency yields insights into this country’s own cultural heritage. Piece by piece we learn, if we want to, to take a closer look into the more and more obsolete practice to handle currency in form of coins.
I cherish some of the coins with specific meaning to me (see image below, city of Trier, Willy Brandt, Chalk coast on Baltic sea). My small collection of coins from Greece allow me to refresh my Greek alphabet, words and historical landmarks of democracy. The circulation of Euro-coins with Bulgarian inscriptions in the Cyrillic alphabet will broaden our horizon again. Beyond the national features, we cherish the regional or federal organization in some countries, that feature their regional hotspots within this European cultural heritage. With a highly mobile Bulgarian population, not only within the EU, we shall soon see more Eastern Euro-coins with Cyrillic letters in our pockets and collections. … can’t wait for it … Ukraine in 202x, maybe 203x. 

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Sustainability in computing

As the huge size of data centres become visible for everybody we begin to question the sustainability of computing infrastructures as well. The need for energy and water resources (for cooling) grow in line with the growth of data centers, the whole issue of input of resources and global trade has to be re-assessed. Based on European trade data, we know that computer software is heavily imported from the US, whereas we import the hardware to run the software in even higher shares from China. In view of the AI boom, this risks to worsen the European trade balance in the coming years. European digital sovereignty suffers as well, if we do not act upon it (compare Figure 8 in Eurostat report).
An easy fix is the shift to more computing-efficient software, which does not need or rely on more processor and memory imports from China for the hardware and imports of services like operating systems or office software from the US.
Just changing to Linux and OpenOffice lets you keep your hardware for several more years. Sustainability in computing isn’t hard to do. It is just a matter of determination. We can do it, if we really want to do it. The more rare earths become rare and more expensive, the larger the amount of people and businesses, who shall think twice about this.
European Digital sovereignty can work as a driver of sustainability in computing as well.

rainbow in front of clouds Brussels Central 2025

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Bulimia Capitalism

Each time a wave and speculative bubble in the economy is building up or even bursting there are thousands of people who become drawn into chaos. Let us quickly review: Oil bubbles in the 70s, financial crisis and  subprime lending in housing markets, 1st internet bubble and the year 2000 bugs, AI excesses in 2025. These boom and bust cycles resemble the medical and psychological patterns of a bulimia nervosa. The overly optimistic outlook for AI companies’ future profits and shifts in the size of office space needed for companies announce bulimic behavior when at the same time vomiting by the same companies occurs with regard to investments in nuclear energy plants even in the sites like Fukushima in Japan or Three Mile Island in the USA. Bulimia Capitalism seems to be eating its own children. The upcoming year 2026 will be full of revelations in this respect. (Image: collection of about a hundred barbies exposed on a flea market in Brussels on 5 levels).

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Socio-technological obsolescence

The standard literature or AI-sytems will give you a definition of on technological obsolescence, which specifies that obsolescence does not mean that a device is broken, but that it is outdated. In computers this might be due to hardware no longer supporting newer, more resource demanding software, or newer software insisting on the use of other hardware. The seemingly rapid innovation cycles in smartphones, cars or robots might justify such technological obsolescence, but the real advances like shifts from 3G to 4G to the newer 5G mobile frequency standards have taken place rather slowly due to provider coverage of sufficiently large, particularly rural areas.
Therefore, the technological obsolescence has to be enlarged as a concept to socio-technological obsolescence as the societal, legal and economic boundaries of technological innovations have to be taken into account as well. Provisions for health concerns or CO2 saving circularity, i.e. reuse of resources have to be taken into account as part of a precautionary principle.
Computer screens have asked us to move from square designs to wide screens (watch videos) to smartphones’ standards of long formats. My 20 years old square screen has been doing a reasonable job throughout these periods, though not for serious games.
The socio-technological obsolescence relies on a “socio-technical prestige score” of products, like for luxury brands in other industries, where fashions drive obsolescence more than technology.
(Image: Robotic arm made by Kuka writes on paper sheet at Frankfurt book fair 2017)

 

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MD-11 crash

Some analysts have followed the acquisition of McDonnell Douglas by Boing as a merger of 2 big aircraft constructors in 1997. The merger meant that the construction of 200 MD-11 trijet aircrafts was discontinued a few years later in 2001. They have still been flying around as cargo airplanes and 50+ were still in use in 2025 by UPS and FedEx combined. The recommendation by Boeing is to stop using the planes and run more extensive technical checks before reuse. The aviation authority will have to comment on the safety as well, since the death of 14 persons on board remains a high toll for potential negligence of timely revisions or too few regular controls. Failure times of components necessitate check-ups, even if they are deemed expensive. Boeing has a difficult reputation in this field due to its lack of timely reaction in the two 737-Max cases. The precautionary principle probably could have saved lives also in this case. However, before jumping to conclusions we need to follow the analyses of this crash of the MD-11 more closely.
(Image: Corpo Coletivo by Lygia Clark 1970 performed in Berlin Neue Nationalgalerie 2025).

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Robotics Hype 2026

Towards the end of 2025, it is common practice to look back on the last 12 months to summarize a year and to contribute to the “collective memory” of the year. From a “society and technology” perspective we shall not be surprised if such summaries will be full of images and praise of AI and robotics. However, large parts of the innovations that shall be declared to have marked 2025 were already around 10 years ago. It is just the timing for the new momentum and the creation of a hype around these technologies that is really remarkable (compare WSJ 2025-11-24 p 1-2 by Konrad Putzier).
It is true, playing around with robotics was reserved to universities, research institutes and some big players in industry. The public and financial markets showed little interest in these “nerdy” fields of applications. Although we were hardly able to compete with our chess computers, Watson solving math problems for us including the steps for us to follow. Video, image and textual support was provided by specialized applications already at high levels and in multilingual versions. In 2025 these techniques have enhanced with machine learning and neural network programming reaching higher speed and being able to use ever larger data sets as input.
But there are areas where the hype is coming to an end. How about all the artificial reality (AR), virtual reality (VR) applications? Many have seized to exist. Have you visited or invested in “Second Life” platforms? Opened a shop in the VR-world? Bitcoins have lost 7% of their value between 1.1.2025 and 24.11.2025 and they suffer still from high volatility rather than an uninterrupted rise.
War has fuelled the rise of shares in 2025 and “dual-use” technology benefits as well. AI has been driven by, and drives both trends.
In sum, it is much less the technological innovations in 2025 that are astonishing, but the political economy of how to orchestrate a sensational hype around the technologies.
(Image Hannover Industry Fair 2016-3-14).

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Telework Challenge

There is a seminal trend that many employees prefer to have a choice to work on the premises of the employer or remote from home. This flexibility has become a major element of collective bargaining on work and time in larger companies in order to clarify rights and obligations.
In France it is about 1 in 5 of employees who do telework one day per month (1 in 6 in Nouvelle Aquitaine). The higher up in the hierarchy a person is, the more likely s/he is to do telework. Higher levels of educational attainment and seniority in a company also improve the access to and use of telework. There are still many employees who would like to do telework in their jobs, which technically could be done remotely, but who cannot do it (1 in 3). Most of those are denied the possibility by their employers.
Data from a survey in Germany from 2014 showed that before Covid-19 men were worked more often remotely than did women (Lott & Abendroth, 2019). The latest figures from France 2024 show that women have overtaken men as remote workers (Askenazy et al. 2025). As working from home has become more a part of the “standard employment relationship” today, the fears of loosing out on career opportunities due working from home seems to play less of a role nowadays, probably for both gender. Compared to 2014 the costs of equipment and availability and ease of installation of fast internet have become more affordable and might push the spread of telework even further.
The data from France show a strong positive correlation of remote work and commuting distance to work. Hence, long commuting distances “drive” more people into telework, which makes a lot of ecological sense, too.