Pay-to-quit, regulators
RWL #345
Greetings from the Last Homely House! I finally got out on the paddleboard this week for my first paddle of the spring. It was a lovely evening paddle, and I had the opportunity to watch the sun set as I was coming back. I love the days when the water is like glass.
With the spring semester officially behind me, I have moved operations to the LHH. My students are starting their internships in three consecutive waves, with wave two starting today, and wave three next Monday - wave one was last week. I’m already planning site visits, though I have to let you know that things are not looking good for the Adventure Van. I had to bring her into the shop this morning because, as I was making my three hour drive down to Rhode Island, the AC went out, and then (luckily) when I got back, the starter started to fail. The wife is thinking it is time for me to let her go. As I write this, I am waiting to her back from the shop about repair costs. That will be the deciding factor. The Blue Book says she’s worth about $1,000, so it’s hard to put too much more than that into her.
On the plus side, the summer course is going well. The students take an exam every weekend because we’re covering about three weeks worth of material each week. I just graded the first exam and they did very well as a group. They also wrote essays on the Surgery Center of Oklahoma, a cash-only ambulatory surgery center (see this podcast: https://www.econtalk.org/keith-smith-on-free-market-health-care/ ). I am publishing all of my lectures to YouTube along with the slide decks as I mentioned last week, and I have the link again below in case you missed it. Feel free to share with anyone who might be interested. I figure if I’ve made them, I may as well share them.
Anyway, here are the links. See you Sunday with a new essay. As usual, willing good for all of you!
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Read
What: HBR, How a “Pay-to-Quit” Strategy Can Reveal Your Most Motivated Employees
https://hbr.org/2023/05/how-a-pay-to-quit-strategy-can-reveal-your-most-motivated-employees
Why: I first heard about pay-to-quit programs in the context of Zappos, which the article mentions. The idea is you offer a class of employees a modest amount of money if they agree to resign. The idea is to get people who are only marginally committed to your organization (quiet quitters and similar ilk) to identify themselves and self-select out. In the long run, offering them a modest payout probably saves a lot more money than letting them stay and steal your oxygen. Fun short article with suggestions on how to implement.
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What: WSJ, Federal Officials Trade Stock in Companies Their Agencies Oversee
Why: It’s also obvious that if you are a regulator, you have access to a lot of insider information. Insider information can help you make a tidy profit. The WSJ has done some investigative reporting on stock trading by regulators and whether they trade the stocks of companies they regulate, creating a potential conflict of interest. Here’s the infographic they developed:
Of course not everyone inside of an agency has real decision making authority, but one thing I had bashed into my head during every Federal Government annual ethics briefing was to avoid the appearance of impropriety. Looks like we’ve got some work to do in the Executive Branch.
Another issue is regulatory capture. Regulatory capture refers to when a government agent tasked with regulating an industry comes under the influence of the industry. When a regulator is captured, they tend to use their power to favor industry insiders. One way that they become captured is by having their personal fortunes tied up in the industry.
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Watch
What: Frankly Fukuyama, Why Ukraine Will Win: Interview with Gen. Ben Hodges (33 min)
Why: Gen (Retired) Hodges is a retired Army general and formerly former Commander of US Forces Europe. He argues that Ukraine can win the war and provides some analysis as to why he thinks so.
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What: US Healthcare Systems course lectures
https://www.youtube.com/playlist?list=PL7N8MpxkX1b3n27DfOUpvad2nwB4O5bY5
Why: As I mentioned last week, I am posting the lectures I am recording for my summer class, US Healthcare Systems, to YouTube for free. I added three more as of this morning, so you can now watch six of the 14 lectures that will eventually be published.
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Listen
What: As We Work, Why Your Side Hustle May Actually Be Good for Your Main Job (20 min)
Why: The first half of the show focuses on new research that shows having a side hustle can make people feel more empowered in their day jobs. I think this is interesting. I think it is likely that having a side hustle also helps you grow skills and abilities that could contribute to your day job as well.
Here’s a WSJ summary of the research: https://www.wsj.com/articles/how-a-side-hustle-can-boost-your-job-performance-11635533208?st=cpo7vfm0bw5byfq&reflink=desktopwebshare_permalink