Amazing article about the economics of the NBA lockout by Malcolm Gladwell. Just one thing I want to get off my chest about the whole lockout situation – I’m gonna be ticked off if the season is delayed or cancelled. The players deserve as much money as they can get because they’re the ones who make the brand and product what it is. It’s not their fault if idiotic owners are duped into ‘over-paying’ – This comment from Rashard Lewis summarizes it,

Talk to the owner. He gave me the deal. When it comes to contracts, the players aren’t sitting there negotiating that contract. I’m sitting at home and my agent calls me, saying, ‘I got a max on the table.’ I’m not going to sit there and say, ‘Naw, that’s too much. Go out there and negotiate $20 or $30 [million] less.’

The other interesting portion of Gladwell’s piece is the conclusion about how the wealthy act now versus just a couple of decades ago,

One of the great forgotten facts about the United States is that not very long ago the wealthy weren’t all that wealthy. Up until the 1960s, the gap between rich and poor in the United States was relatively narrow. In fact, in that era marginal tax rates in the highest income bracket were in excess of 90 percent. For every dollar you made above $250,000, you gave the government 90 cents. Today — with good reason — we regard tax rates that high as punitive and economically self-defeating. It is worth noting, though, that in the social and political commentary of the 1950s and 1960s there is scant evidence of wealthy people complaining about their situation. They paid their taxes and went about their business. Perhaps they saw the logic of the government’s policy: There was a huge debt from World War II to be paid off, and interstates, public universities, and other public infrastructure projects to be built for the children of the baby boom. Or perhaps they were simply bashful. Wealth, after all, is as often the gift of good fortune as it is of design. For whatever reason, the wealthy of that era could have pushed for a world that more closely conformed to their self-interest and they chose not to. Today the wealthy have no such qualms. We have moved from a country of relative economic equality to a place where the gap between rich and poor is exceeded by only Singapore and Hong Kong. The rich have gone from being grateful for what they have to pushing for everything they can get. They have mastered the arts of whining and predation, without regard to logic or shame. In the end, this is the lesson of the NBA lockout. A man buys a basketball team as insurance on a real estate project, flips the franchise to a Russian billionaire when he wins the deal, and then — as both parties happily count their winnings — what lesson are we asked to draw? The players are greedy.