Resist, rebel, and remain: the nation deserves and demands a second chance – John Van Reenen

MIT Sloan Professor John Van Reenen

From Vox

Members of Parliament will vote on Prime Minister’s Theresa May’s Brexit deal to on 11 December. Without hesitation, they should vote it down.

More and more people have realised that Brexit was built on a fantasy that we could keep all the benefits of being in the European club without paying any of the membership fees – what leading Brexiter Boris Johnson called the ‘Have Your Cake and Eat It Strategy’. Well, it turns out that having a cake after you have already eaten it once is not so tasty after all. Theresa May has brought back an unpalatable deal that no one likes because it crystallises the reality of what leaving the European Union (EU) actually means. To get easy access to European markets you have to play by the rules of the club – and once a country leaves the club, it no longer gets a vote on what those rules are. So much for taking back control.

The argument for remaining in the EU is fundamentally moral and political, not economic. However, it is important for lawmakers to know that Brexit will make their constituents poorer. Whereas the wealthier can ride this out, it is families on middle incomes and the less well off who will feel the financial pain most sharply. The economics of Brexit are very simple. Being outside the EU inevitably means higher costs of doing business with our nearest neighbours – so there will be less trade, and less trade will make us poorer. The more distant a relationship we have with the EU, the bigger will be our pay cut. This will be hugely painful if there is a disorderly ‘No Deal’; it will hurt to a lesser degree with a softer approach. The formal amounts that the UK pays into the EU disappear in the rounding error compared with these economic losses. (The section at the end of this blog goes into the gory economic details for the truly dedicated reader).

Oh, why EU?

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The math on why the Trump administration’s fuel standards report is seriously flawed – Christopher Knittel

Christopher Knittel, George P. Schultz Professor and Professor of Applied Economics, MIT Sloan

From San Francisco Chronicle 

Fuel economy standards are an important way for the U.S. to combat climate change. However, a 2018 study conducted by the Trump administration proposes hitting the pause button on regulations, potentially leaving billions of dollars in benefits on the table.

This is a significant change from the Obama administration, which ramped up prior fuel economy standards. That administration mandated the fleet-wide fuel economy of passenger vehicles and light trucks to reach 54.5 miles per gallon by 2025. The federal government’s cost-benefit analysis, completed in January 2017, concluded that this was technologically feasible and that benefits exceeded costs by over US$90 billion.

The current administration challenges that conclusion and recommends freezing standards at model year 2020 levels through 2025. Their analysis finds that the costs exceed the benefits by over $170 billion – a difference of over $260 billion from the previous report.

Who is right? The answer matters, because fuel economy standards are the last remaining major federal regulation to fight greenhouse gas emissions. The current administration has eliminated other regulations related to clean power and is promoting coal consumption. If the Obama administration’s analysis is correct, then pausing fuel standards will cost the economy money and impact the environment. If the Trump analysis is correct, then this may be the right call. There is a lot at stake.

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2019: A new year calls for new questions – Hal Gregersen

Hal Gregersen, Executive Director of the MIT Leadership Center

Hal Gregersen, Executive Director of the MIT Leadership Center

From Psychology Today

The New Year is right around the corner and individuals and organizations alike are churning out new goals in a mass ritualized frenzy. The problem is that both on a company-wide level and on a personal level many of these new benchmarks will never be reached.

Ask yourself this: Did you really lose 10 pounds last year? Did you grow your business by 5 percent each quarter? So instead of making a list of brutal stretch goals and then beating yourself up for not achieving them, here’s a better plan for 2019. Ditch the goals and get to work on a list of compelling questions. Yes, questions.

Questions have a curious power to unlock new and positive behavior changes in every part of our lives. They can open up new directions for progress no matter what we are struggling with. My interviews with more than 200 of the world’s most creative leaders—including well-known business executives such as Jeff Bezos at Amazon, Marc Benioff at Salesforce.

Debbie Stirling at GoldieBlox, and Tony Hsieh from Zappos—show that when you are operating at the edge of uncertainty, trying to figure out a better question is a far more productive way forward than trying to figure out a better answer. The right questions can surface a false assumption and give us the energy to do something about it. My research has shown that the best questions, in whatever setting, turn out to have some fundamental things in common.

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These 5 “productive” habits are doing your brain more harm than good – Tara Swart

MIT Sloan Senior Lecturer Tara Swart

From Fast Company

It’s probably no surprise to you that exercise, nutrition, and caffeine can have a significant impact on your brain health. You’ve probably read many articles giving you advice on how they can help your mind. You might even have adopted a habit or two.

But while certain practices seem productive in theory, they’re more likely to hamper your brain function rather than boost it. Here are 5 of those common habits, and what you can do instead:

URBAN JOGGING OR CITY CYCLING

Whenever I see joggers on city pavements, I want to stop them and tell them to stay away from the roadside and head to the gym. This is because although cardiovascular exercise is a great way to boost alertness, mood, and learning, inhaling polluted air means you may cancel out much of the benefit. Particulate matter from car exhaust is terrible for the brain–it can lead to neuroinflammation and cognitive decline.

When you inhale polluted air, it reduces levels of BDNF in the brain. BDNF is a protein that enhances brain plasticity–which improves cognition and memory performance. One study looked at BDNF levels among cyclists who rode in heavy traffic and found that the exercise led to no increase in BDNF at all.

The best alternative for urban dwellers is to head to an indoor gym–but if you don’t want to give up your outdoor run, download an air-quality app and check your route before a ride or a run. There are lots to choose from, including Air Matters, Air Visual App, and Breezometer. You can also just avoid major roads altogether, and jog on woodland trails or in park interiors instead, away from traffic and fumes.

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Learning can lead to more constructive competition: MIT seeks to enhance relationships with Chinese business school faculty – Alan White

IFF Conference Dean’s Panel, Left to Right: He Gao, Deputy Dean, Yunnan; Guoqing Chen, EMC Chair Professor and Former Executive Associate Dean, Tsinghua; Jun Lu, Dean, Lingnan; Jacob Cohen, Senior Associate Dean, MIT Sloan; Xiongwen Lu, Dean, Fudan; Stuart Krusell, Senior Director, MIT Sloan Global Programs.

Groundbreaking Conference Recently Held in Beijing

As new tariffs take hold and a cooling breeze settles over U.S.-China relations, MIT is seeking to build a better and stronger relationship with their counterparts at Chinese business schools by growing our unique and innovative program, the MIT/China Management Education Program—part of the International Fellows Faculty.

On November 12, 2018, Tsinghua University hosted the International Faculty Fellows (IFF) Conference in Beijing for the first time in the program’s history. The conference brought fellows from Global Programs’ partner schools together with industry leaders, alumni, and faculty to discuss the future of Chinese management education, as well as, the latest trends in curriculum development, publishing, and research.

MIT/Sloan did not create this program as a “teach the teachers” program, but a guiding principle of the IFF Program is that the Chinese Faculty would come to MIT as colleagues; they would learn from us, and we would learn from them.

Through the IFF Program, more than 400 faculty from around the world have spent a semester at MIT Sloan.   “In this collaboration, we felt that it was important to share knowledge,” said former Dean Lester Thurow who was an early proponent of the program.  “We never said this is what you should do.   We’ve always said, this is how we do it here at MIT, take that knowledge and apply it in your own way to your own challenges.   And China has done just that.”

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