Want to Win Olympic Medals? Fix Your Economy First

Steven Perlberg of Business Insider quotes a private research note by ConvergEx's Nick Colas on the correlation between Olympic success and economic strength. "The Winter Olympics are a useful backdrop for case studies on the relationship between athletic performance and economic progress in emerging markets around the world," writes Colas. "We’ve analyzed the medal count by country since the inaugural Winter Games in 1924, and indeed the results show that athletes rarely make it to the podium until their respective countries experience economic progress and stability."  A few case studies from Colas's note:

  • Japan’s Winter Olympic performance history tells a post-WWII recovery story.  The country competed in three Winter Games (1928, 1932 and 1936) before it won its first medal – silver – in 1956.  Japanese athletes didn’t earn any additional medals until the 1972 games, which the country hosted, and have been consistently making an appearance on the podium since 1980.  Japan won its first medal when it was taking off as an emerging economy and getting its economic act together following WWII.  Industrialism in the country picked up rapidly following the war, and the Olympic medal consistency coincided with the consumption boom in the 1980s. 

How to Save Time Hunting for a Parking Spot, South Korea Edition

Our recent podcast "Parking Is Hell" explored the high costs of free parking. Transportation scholar Donald Shoup described one study, from L.A.:

We made 240 observations. When you add it up, the average time it took to space was only three minutes, that’s two and a half times around the block, which doesn’t seem like very much. It’s about half a mile hunting for parking. But when you add up all the people who are parking in Westwood Village, if they had the same average that we had, that adds up to 3,600 vehicle miles of travel a day. That’s the distance across the U.S., and that’s just in the 15-block area of Westwood. If you add it up for a year, that’s equal to 36 trips around the Earth or four trips to the moon hunting for underpriced curb parking in a little 15-block area. 

In South Korea, an oil company has started a campaign to reduce parking search time. The HERE campaign states that South Korean drivers wander 500 meters everyday for parking spots; by cleverly installing a balloon that indicates exactly where open spots are, it reduces search time for drivers.

FREAK-est Links

1. Drew Brees criticized for not tipping enough for takeout. (HT: Steve Schwinger)

2. The People’s Daily Online Public Opinion Monitoring Center: where the Chinese government collects data on Chinese public opinion.

3. The women of the "Opt-Out Revolution" are ready to lean in.

4. In South Korea, where 93 percent of students graduate from high school, "rock star" teachers earn millions.5. Is Boeing buying back old 747s to drive demand for new ones?

There Ain't No Such Thing as a Free Lunch: South Korea Edition

You’ve heard it before, if not from Milton Friedman, then surely from a proselytizing grandparent or a macro econ professor: There ain’t no such thing as a free lunch (TANSTAAFL). Of course, that's not exactly true. Some 31 million low-income public school children in the U.S. get just that every year: a free or reduced lunch.

As Western countries tighten their belts and look to reduce social welfare spending, the city council in Seoul, South Korea is considering expanding free lunches beyond just the "proven" underprivileged, to all 810,000 of Seoul's elementary and middle school students at a cost of $378 million annually.