The Big Picture

The Global Trade Slowdown: Cyclical or Structural?
Empathy, Neurochemistry, and the Dramatic Arc
ISIS May Be Losing a Lifeline
Wal-Mart’s Plan to Boost Pay, State by State
Youth Labor Force Participation Falls, but with Good Reason
10 Wednesday AM Reads
Dilbert: Beating the Average

The Global Trade Slowdown: Cyclical or Structural?

Posted: 26 Feb 2015 02:00 AM PST

Empathy, Neurochemistry, and the Dramatic Arc

Posted: 25 Feb 2015 05:00 PM PST

Narratives — specifically, the classic dramatic arc as outlined by German playwright Gustav Freytag — can evoke powerful responses, leading the brain to release the neurochemicals cortisol and oxytocin.

Paul Zak: Empathy, Neurochemistry, and the Dramatic Arc

The emotionally charged story recounted at the beginning Dr. Paul Zak’s film—of a terminally ill two-year-old named Ben and his father—offers a simple yet remarkable case study in how the human brain responds to effective storytelling. As part of his study, Dr. Zak, a founding pioneer in the emerging field of neuroeconomics, closely monitored the neural activity of hundreds of people who viewed Ben’s story. What he discovered is that even the simplest narrative, if it is highly engaging and follows the classic dramatic arc outlined by the German playwright Gustav Freytag, can evoke powerful empathic responses associated with specific neurochemicals, namely cortisol and oxytocin. Those brain responses, in turn, can translate readily into concrete action—in the case of Dr. Zak’s study subjects, generous donations to charity and even monetary gifts to fellow participants. By contrast, stories that fail to follow the dramatic arc of rising action/climax/denouement—no matter how outwardly happy or pleasant those stories may be—elicit little if any emotional or chemical response, and correspond to a similar absence of action. Dr. Zak’s conclusions hold profound implications for the role of storytelling in a vast range of professional and public milieus.

ISIS May Be Losing a Lifeline

Posted: 25 Feb 2015 01:00 PM PST

Source: Washington Post

Wal-Mart’s Plan to Boost Pay, State by State

Posted: 25 Feb 2015 12:00 PM PST

Regarding yesterday’s discussion on Wal-Mart’s pay raise, check out this informative map from the WSJ:

Source: WSJ

Youth Labor Force Participation Falls, but with Good Reason

Posted: 25 Feb 2015 08:30 AM PST

Labor Force Participation Rate: 1955-2014

Labor Force Participation Rate

In School to Population Ratio: 16-24

NEET to Population Ratio: 16-24

Source: Federal Reserve Bank of St. Louis

10 Wednesday AM Reads

Posted: 25 Feb 2015 04:00 AM PST

This morning’s train reads were prepared with a heavy heart, but no worries, we still have you covered:

• The Nasdaq is doing the most bullish thing a market can do (MarketWatch) but see As FTSE Hits a 15 year Record, Beneath the Surface . . . (Moneybeat)
• Climbing the Great Wall of Worry in China (Market Anthropology)
• The Winners Curse: Too Big to Succeed? (SSRN)
• The active fund management model is not fit for purpose (FT) see also Yes, the World Is Out to Get Active Managers (BV)
• The Entrant’s Guide to The Automobile Industry (Asymco)