John Kay

John analyses the myths and realities of timezones and summer time – and supports moves in the British Parliament to move to Central European Time.

Faced with the choice of over a hundred 100 jams, I reduced the number of alternatives to 30 or so, and then … well, I finally walked out of the shop without having bought any jam at all. People are overwhelmed by variety of choice.

Activities that are good in themselves are good for the economy, and activities that are bad in themselves are bad for the economy. The only intelligible meaning of “benefit to the economy” is the contribution – direct or indirect – the activity makes to the welfare of ordinary citizens.

Bookreview: Uncommon Sense: economic insights, from marriage to terrorism by Gary Becker and Richard Posner

The benefit of road improvements is principally the reduced time and strain on private motorists, not the economic advantages to road transport operators: that lesson should influence the way we plan our road networks. Fast roads for light traffic are much cheaper to build than superhighways.

If you want a book on economics to take to the beach, you are spoiled for choice at the airport bookstall. What you will find falls into three categories: Thump books, microeconomics books with little economics and the macroeconomic story-teller.

The Whiz Kids’ capacity for analysis far exceeded their knowledge of the world to which it was applied.

Three simple rules – pay less, diversify more, and be contrarian – will serve almost everyone well who invests.

To choose appropriate models you need to understand both the maths and the business environment. Media industries and financial institutions have both been unsuccessful in marrying these two skills.

The practical man must build out, step-by-step from the current situation – the science of muddling through.