[This Commentary originally appeared in the September 21, 1989 issue of The Mendon-Honeoye Falls-Lima Sentinel.]

Part Two – A Living Example of the Risk-Return Tradeoff

This is the second of two commentaries aimed at exploring a novel approach to determining our nations’ true standing in the world economy. Last week we looked at the risk-return tradeoff, the idea that risky investments are more likely to have higher returns (and larger losses) than safer investments.

Earlier this year, a Siberian valley explodes suddenly. The cause – a leaky gas pipeline. Low safety standards lead to a faulty job. People die. Property is destroyed.

You read about it all the time. Not-so-old bridges collapse, sending trainloads of passengers plummeting to an early demise. Third World ferries, overloaded with holiday travelers, capsize again and again. Athens and Frankfurt sport airports which appear to openly invite terrorists.

Across the globe, we see examples of why we are happy to be Americans. Not only do Continue Reading “Can America Compete? (Part II)”