Tuesday, October 7, 2014

IMF sees no return to economic growth; EU's anti-extremist tech meeting; Maximizers and satisficers

1 IMF sees no return to economic growth (Larry Elliott in The Guardian) The International Monetary Fund (IMF) has cut its global growth forecasts for 2014 and 2015 and warned that the world economy may never return to the pace of expansion seen before the financial crisis.

In its flagship half-yearly world economic outlook (WEO), the IMF said the failure of countries to recover strongly from the worst recession of the postwar era meant there was a risk of stagnation or persistently weak activity.

The IMF said it expected global growth to be 3.3% in 2014, 0.4 points lower than it was predicting in the April WEO and 0.1 points down on interim forecasts made in July. A pick-up in the rate of expansion to 3.8% is forecast for 2015, down from 3.9% in the April WEO and 4% in July. But the IMF highlighted the risk that its predictions would once again be too optimistic.


2 EU’s anti-extremist tech meeting (David Lee on BBC) A "private" dinner has been planned between tech firms and government officials from across the EU. The purpose of the meeting is to discuss ways to tackle online extremism, including better cooperation between the EU and key sites. Twitter, Google, Microsoft and Facebook will all be attending.

Governments are becoming increasingly concerned over how social media is being used as a recruitment tool by radical Islamist groups. The meeting will be attended by ministers from the 28 EU member states, members of the European Commission and representatives from the technology companies.

The European Commission said: "There is strong interest from the European union and the ministers of interior to enhance the dialogue with major companies from the internet industry on issues of mutual concerns related to online radicalisation."

It is learnt that this is the second time since July that the firms have been called in to discuss possible measures. However a notable absence at the meeting will be Ask.fm, a social network believed to have been extensively used as a recruitment tool for radical Islamist groups. The site's new owners said: "Ask.fm has not been invited. If we had known about it, we would have attended for sure."


3 Maximizers and satisficers (Elizabeth Bernstein in The Wall Street Journal) Psychology researchers have studied how people make decisions and concluded there are two basic styles. “Maximizers” like to take their time and weigh a wide range of options—sometimes every possible one—before choosing. “Satisficers” would rather be fast than thorough; they prefer to quickly choose the option that fills the minimum criteria (the word “satisfice” blends “satisfy” and “suffice”).

“Maximizers are people who want the very best. Satisficers are people who want good enough,” says Barry Schwartz, a professor of psychology at Swarthmore College in Pennsylvania and author of “The Paradox of Choice.”

In a study published in 2006 in the journal Psychological Science, Dr. Schwartz and colleagues followed 548 job-seeking college seniors at 11 schools from October through their graduation in June. Across the board, they found that the maximizers landed better jobs. Their starting salaries were, on average, 20% higher than those of the satisficers, but they felt worse about their jobs.

“The maximizer is kicking himself because he can’t examine every option and at some point had to just pick something,” Dr. Schwartz says. “Maximizers make good decisions and end up feeling bad about them. Satisficers make good decisions and end up feeling good.” Dr. Schwartz says he found nothing to suggest that either maximizers or satisficers make bad decisions more often.

Satisficers also have high standards, but they are happier than maximizers, he says. Maximizers tend to be more depressed and to report a lower satisfaction with life, his research found. The older you are, the less likely you are to be a maximizer—which helps explain why studies show people get happier as they get older. “One of the things that life teaches you is that ‘good enough’ is almost always good enough,” Dr. Schwartz says. “You learn that you can get satisfaction out of perfectly wonderful but not perfect outcomes.”

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