Quotulatiousness

October 29, 2013

Poverty in America

Filed under: Economics, USA — Tags: , , , — Nicholas @ 10:40

Zero Hedge recently went on a tear about “soaring poverty in America”, compiling a list of 29 items which “proved” the case. Tim Worstall indulges in a bit of fisking over the mythical claims:

    2. New numbers have just been released, and they show that the number of public school students in this country that are homeless is at an all-time record high. It is hard to believe, but right now 1.2 million students that attend public schools in America are homeless.

No, I’m afraid not. In fact, this isn’t possible in the slightest. The numbers for homelessness are here.

    In January 2012, 633,782 people were homeless on a single night in the United States. Most (62 percent) were homeless as individuals and 38 percent were homeless as persons in families.

At any one time we have 630,000 homeless people. We cannot therefore have twice that number of children alone being homeless at any one time. This is not one of the mathematical possibilities that this universe offers us.

What is actually being said in the original number is that over the course of a a year 1.2 million children will suffer one or more incidents of homelessness. We can still think that this is appalling, that it shouldn’t happen and that we ought to be doing more about it. But it is not true that “right now 1.2 million students that attend public schools are homeless”.

    3. When I was growing up, it seemed like almost everyone was from a middle class home. But now that has all changed. One recent study discovered that nearly half of all public students in the United States come from low income homes.

Well, if you grow up in a middle class area then of course those you grow up with are likely to be middle class. But that nearly half of students coming from low income homes is indeed true. But it’s extremely uninteresting that it is. Here’s the definition of low income they are using:

    To be crystal clear, the researchers were not analyzing poverty rates per se. Rather, they tracked at the percentage of children in each state who received free or reduced school lunches, which are only available to students whose families earn below 185 percent of the poverty line. For a family of four, that amounted to about $41,000 in 2011.

As it happens, median household income is around two times that federal poverty line. So, 185% of the federal poverty line is going to be pretty close to the median household income. Median household income being the amount that 50% of households get more than and 50% get less than. So, yes, we would pretty much expect that 50% of children are coming from low income families. Because it’s only in Lake Woebegon that all the children are above average. This is a statistical artifact of the measure they are using as low income, nothing else.

And, of course, the traditional mis-measurement of poverty in the US compared to pretty much every other western country:

    6. According to the U.S. Census Bureau, approximately one out of every six Americans is now living in poverty. The number of Americans living in poverty is now at a level not seen since the 1960s.

No, this is not true, as I’ve pointed out in these pages many a time. Many, many, many, many times in fact.

The 15% in poverty measure is the number of people who would be in poverty if we didn’t help them by giving them money, food, housing and health care. It is not the number living in poverty. It is the number in poverty before we help them out of poverty. And as to the comparison with the 1960s, in the 1960s it really was the number in poverty after we helped, now it’s the number before we help.

As to why this is when we calculate the number below the poverty line we look only at cash incomes. This includes any actual money that people might be given to alleviate their poverty. In 1960s America pretty much the only poverty alleviation that was done was to give money to poor people (“welfare”). Today we give very little money directly. But we spend a vastly greater amount in giving people things. Medicaid, Section 8 housing vouchers, SNAP (or food stamps). We also give aid to the low paid through the tax system, with the EITC. However, we do not count all of those things, nor the EITC through the tax system, in our calculation of the number below the poverty line. So, since the 1960s the US measure of poverty has changed. From being one of people who are indeed living in poverty after whatever help they get to one of the number of people who would be in poverty before any help that they get.

When we correct for this the US poverty rate is significantly lower now than it was in the 60s. One estimate is that it is about half the 60s number.

What happens when you challenge hackers to investigate you?

Filed under: Law, Technology — Tags: , , , , — Nicholas @ 09:13

Adam Penenberg had himself investigated in the late 1990s and wrote that up for Forbes. This time around, he asked Nick Percoco to do the same thing, and was quite weirded out by the experience:

It’s my first class of the semester at New York University. I’m discussing the evils of plagiarism and falsifying sources with 11 graduate journalism students when, without warning, my computer freezes. I fruitlessly tap on the keyboard as my laptop takes on a life of its own and reboots. Seconds later the screen flashes a message. To receive the four-digit code I need to unlock it I’ll have to dial a number with a 312 area code. Then my iPhone, set on vibrate and sitting idly on the table, beeps madly.

I’m being hacked — and only have myself to blame.

Two months earlier I challenged Nicholas Percoco, senior vice president of SpiderLabs, the advanced research and ethical hacking team at Trustwave, to perform a personal “pen-test,” industry-speak for “penetration test.” The idea grew out of a cover story I wrote for Forbes some 14 years earlier, when I retained a private detective to investigate me, starting with just my byline. In a week he pulled up an astonishing amount of information, everything from my social security number and mother’s maiden name to long distance phone records, including who I called and for how long, my rent, bank accounts, stock holdings, and utility bills.

[…]

A decade and a half later, and given the recent Edward Snowden-fueled brouhaha over the National Security Agency’s snooping on Americans, I wondered how much had changed. Today, about 250 million Americans are on the Internet, and spend an average of 23 hours a week online and texting, with 27 percent of that engaged in social media. Like most people, I’m on the Internet, in some fashion, most of my waking hours, if not through a computer then via a tablet or smart phone.

With so much of my life reduced to microscopic bits and bytes bouncing around in a netherworld of digital data, how much could Nick Percoco and a determined team of hackers find out about me? Worse, how much damage could they potentially cause?

What I learned is that virtually all of us are vulnerable to electronic eavesdropping and are easy hack targets. Most of us have adopted the credo “security by obscurity,” but all it takes is a person or persons with enough patience and know-how to pierce anyone’s privacy — and, if they choose, to wreak havoc on your finances and destroy your reputation.

H/T to Terry Teachout for the link.

Obamacare’s technical issues

Filed under: Government, Technology, USA — Tags: , , , — Nicholas @ 07:48

A comment at Marginal Revolution deservedly has been promoted to being a guest post, discussing the scale of the problems with the Obamacare software:

The real problems are with the back end of the software. When you try to get a quote for health insurance, the system has to connect to computers at the IRS, the VA, Medicaid/CHIP, various state agencies, Treasury, and HHS. They also have to connect to all the health plan carriers to get pre-subsidy pricing. All of these queries receive data that is then fed into the online calculator to give you a price. If any of these queries fails, the whole transaction fails.

Most of these systems are old legacy systems with their own unique data formats. Some have been around since the 1960′s, and the people who wrote the code that runs on them are long gone. If one of these old crappy systems takes too long to respond, the transaction times out.

[…]

When you even contemplate bringing an old legacy system into a large-scale web project, you should do load testing on that system as part of the feasibility process before you ever write a line of production code, because if those old servers can’t handle the load, your whole project is dead in the water if you are forced to rely on them. There are no easy fixes for the fact that a 30 year old mainframe can not handle thousands of simultaneous queries. And upgrading all the back-end systems is a bigger job than the web site itself. Some of those systems are still there because attempts to upgrade them failed in the past. Too much legacy software, too many other co-reliant systems, etc. So if they aren’t going to handle the job, you need a completely different design for your public portal.

A lot of focus has been on the front-end code, because that’s the code that we can inspect, and it’s the code that lots of amateur web programmers are familiar with, so everyone’s got an opinion. And sure, it’s horribly written in many places. But in systems like this the problems that keep you up at night are almost always in the back-end integration.

The root problem was horrific management. The end result is a system built incorrectly and shipped without doing the kind of testing that sound engineering practices call for. These aren’t ‘mistakes’, they are the result of gross negligence, ignorance, and the violation of engineering best practices at just about every step of the way.

Even selling the USS Forrestal for $1 was a win for the US Navy

Filed under: Economics, Environment, Military, USA — Tags: , , , , — Nicholas @ 07:21

Several people have commented about the headlines proclaiming that the very first supercarrier had been sold for a princely sum of $1, but Strategy Page explains why even that token dollar was better than all the other options:

The U.S. Navy recently sold a decommissioned (in 1993) aircraft carrier (USS Forrestal) for scrap. The ship yard that will take the Forrestal apart (All Star Metals of Texas) paid the navy one cent ($.01) for the ship. That’s because this was the best deal the navy could get. That’s because it will cost many millions to take the ship apart in a legal fashion (being careful to avoid releasing any real or imagined harmful substances into the environment). The other alternative was to sink the Forrestal at sea. But this requires partial disassembly (to remove anything that could or might pollute the ocean), that would be even more expensive.

[…]

Since the 1990s, sending warships to the scrap yard has not been considered a viable alternative. It’s all about pollution, bad press, and cost. That was because of the experience with the largest warship to be scrapped to date, the 45,000 ton carrier USS Coral Sea. This ship took until 2000 (seven years) to be broken up. Thus, the new ecologically correct process was not only expensive but it took a long time. Then the navy discovered that the cost of scrapping a nuclear powered carrier like the USS Enterprise would be close to a billion dollars. This was largely the result of a lot more environmental and safety regulations. With so many navy ships (especially nuclear subs) being broken up in the 1990s, and all these new regulations arriving, the cost of disposing of these ships skyrocketed. This was especially true with carriers.

So for over a decade the navy just tied up retired ships and waited for some better solution to appear. That never happened. In fact, the situation has gotten worse. The navy only has one ship scrapping facility (Brownsville, Texas), so only one carrier at a time can be dismantled. Using official estimates of the time required to dismantle each of the biggest ships, it’ll take seven decades to get rid of the surviving conventionally powered carriers. Note also that the conventional carrier in the absolute worst shape, the USS John F Kennedy, is the one being officially retained in category B reserve (but only until Congress forgets all about her, of course). Name recognition really does count.

It gets worse. With the really vast number of single hull tankers being scrapped and large numbers of old, smaller-capacity container ships laid up and likely to be offered for scrap fairly soon, the market for difficult-to-scrap naval ships is going to shrivel and the price for scrap steel will drop. Efforts to get the navy to include the costs of disposal in the budget for lifetime costs has never caught on and now it’s obvious why not. The real nightmare begins with the first nuclear powered carrier (the 93,000 ton USS Enterprise), which began the decommissioning process in late 2012 (with the lengthy removal of all classified or reusable equipment). The cost of dismantling this ship (and disposing of radioactive components) may be close to $2 billion.

Colby Cosh on IQ

Filed under: Japan, Science — Tags: , , , — Nicholas @ 00:01

In his latest Maclean’s column, Colby Cosh talks about the odd evolutionary advantages that accrue as you get further from the equator:

A new study in the biometric journal Intelligence presents surprising data from Japan that reveal that IQ, imputed from standardized tests given to a large random sample of Japanese 14-year-olds, varies strongly and persistently with latitude. The Japanese are usually thought of — even by themselves — as being quite homogenous ethnically; the myth of the sturdy, super-cohesive “Yamato race” has not yet been entirely obtruded out of existence. But it turns out that the mean IQs of students in Japanese prefectures apparently vary from north to south by two-thirds of a standard deviation — a spread almost as large as the “race gaps” in cognitive performance which trouble education scholars in multicultural countries like ours. Sun-drenched Okinawans, as a group, do not test as well as the snowbound citizens of Akita.

It is an article of liberal faith that IQ is a bogus tool cooked up by white supremacists to justify imperialism and slavery. I am happy to nod along, but the monsters who developed IQ tests certainly never planned on creating strife between the two ends of Honshu Island. Kenya Kura’s study demonstrates the usual statistical connections between IQ and social outcomes, including physical height, income, and divorce and homicide rates. IQ may be a phony racist artifact, but if shoe size predicted life success as well as those stupid little logic puzzles do, every middle-class parent you know would have one of those Brannock foot-measuring thingies mounted proudly on the wall. That is why IQ persists in the top drawer of the psychometrics toolbox.

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