Quotulatiousness

November 20, 2014

“The Piketty Gang ride in, a hollerin’ an’ a whoopin’ and take all the money from Scrooge McDuck”

Filed under: Economics, Media — Tags: , , , — Nicholas @ 12:30

At Forbes, Tim Worstall explains why — despite the headlines — Piketty didn’t actually change economics:

That optimal taxation theory really rests on two things that we’re pretty sure are true. The first being that Laffer Curve thing. No, this doesn’t mean that all tax cuts pay for themselves. Rather, that it’s possible for tax rates to be so high that they actually reduce the amount of tax revenue being collected. A nice example of this is the latest rise in New York’s cigarette tax: less money in total is now being raised even though the tax rate has risen. Given that our primary purpose in taxing is to get the money we need to run the government that we must have (as ever, my opinion being that we might want to have less government, and thus lower taxes, than we currently do but that’s another matter) having a tax over the revenue maximising rate just isn’t sensible.

The second pillar is that we know that different taxes destroy different amounts of economic activity for the same revenue collected. As above, we want to gain revenue but obviously we also want it at the least cost. That means getting as much of it as we can from the low deadweight costs taxes and as little of it as we can manage from the high cost ones. We also know how the spectrum looks. At the lowest deadweight costs we have repeated taxes on real property (say, a land value tax), then taxes upon consumption (VAT or sales taxes) then on incomes and highest of all, upon corporates and capital. There’s one off the spectrum, transactions taxes like the financial transactions tax, but that’s so silly that no one serious is suggesting it.

So, standard and general theory insists that we shouldn’t be taxing corporates and capital at all if we can manage it and also that we don’t want to have very high taxes rates on anything.

So, if for political (or even emotional) reasons you think that we really should be gouging the rich then you’re going to have to go find yourself some new economic theories. And that, I think, is really what is going on here with Piketty and the gang (slightly catchy that, isn’t it? The Piketty Gang ride in, a hollerin’ an’ a whoopin’ and take all the money from Scrooge McDuck?). They want to find a reason to tax wealth, something conventionally contraindicated, and they want to have very high income tax rates, something also contraindicated by conventional theory. So, rather than try to overturn that conventional theory they’re bypassing it. Ignoring it even and just bringing up the idea of inequality instead to see if that will convince people.

Chimpanzee sexual behaviour and what it says about humans

Filed under: Science — Tags: , — Nicholas @ 07:20

Tia Ghose discusses some recent findings on the sexual aggression of male chimpanzees and (given that humans are closely related to chimps) looks for parallels in human behaviour:

Male chimpanzees that wage a campaign of sustained aggression against females sire more offspring than their less violent counterparts, new research finds.

The results suggest that such nasty behavior from males evolved because it gave the meanest males a reproductive advantage, said study co-author Ian Gilby, a primatologist at Arizona State University in Phoenix.

This chimpanzee behavior could also provide some insight into the roots of sexual aggression in men.

“It is possible that in our early ancestors there may have been an adaptive value to male aggression against females,” Gilby said.

[…]

Though the findings are in chimpanzees, they lend credence to the notion that male sexual aggression in humans may have some genetic or evolutionary basis, Gilby said.

On the other hand, drawing parallels can be perilous. Humans diverged from chimpanzees at least 7 million years ago, and the human mating system looks very different from chimps’ violent, multi-male, multi-female system. Humans form pair bonds and have varied and complex mating strategies and behaviors. And most men aren’t brutes to their partners.

“We definitely don’t mean to say this excuses or fully explains violence in this way in humans,” Gilby said.

The study’s findings may provide fodder for a long-standing debate in evolutionary biology about whether rape and sexual aggression are evolutionarily advantageous in humans, said William McKibbin, an evolutionary psychologist at the University of Michigan–Flint, who was not involved in the study. No studies in humans have ever shown that rape increases reproductive success, he added.

Fortunately, T-shirts aren’t as permanent as tattoos

Filed under: Humour, Japan — Tags: , — Nicholas @ 00:03

If you’re of a skeptical turn, you may have wondered just what your friend’s new tattoo really says in Chinese, or Russian, or whatever script their tattoo artist just inked into their skin. My suspicion is that at least a significant proportion of the new ‘tats are the equivalent of these Japanese discount store shirts with random English words:

Reddit user k-popstar recently moved to Japan to teach English. Over the last few months he has been wandering into various discount stores and taking photos of shirts with random English words on them. I have to admit, that potato one is pretty sweet!

japanese-discount-store-t-shirts-with-random-english-words-12

japanese-discount-store-shirts-with-random-english-words-6

japanese-discount-store-shirts-with-random-english-words-17

That second one is almost poetic. If I knew what “thirstry” was.

H/T to Coyote Blog for the link.

Are you as smart as a Neanderthal parent?

Filed under: Randomness — Tags: , , , — Nicholas @ 00:02

In The Federalist, Rachel Lu says that Neanderthals were better at parenting than modern humans:

Is it just me, or has the world gone completely crazy when it comes to childrearing?

You know what I’m talking about. Once upon a time, people expected to get married in early adulthood and have kids at reasonable intervals. Parents stayed married and paid the bills, while kids played in front yards and freely opened sidewalk lemonade stands. Children fit naturally into the rhythm of American life.

Nowadays, we treat children like a deathly plague, unless of course you’ve decided you want one. Then they become a luxury good worth tens or even hundreds of thousands. Once acquired, they must be treated like prize poodles, feted and protected at every turn.

The traditional family model has largely been put through the shredder, much to the detriment of children. We try to make up for this by hovering over our kids every second, and sending the police after parents who still think it’s fine to take their grandparents’ more laid-back, “let the kids play” approach.

In other words, our ideas about family are a huge, hairy mess. It’s strange we would have so much trouble figuring out a thing that’s been done since Neanderthal times. Then again, maybe that’s the real problem. Unlike Neanderthals, we’re obsessed with figuring out how to do this. We’ve fought tooth and nail to free ourselves from the natural implications of our biology and, as a reward, we now have to plan every detail of family formation. There’s no taking comfort in “the done thing” anymore. Parenthood today is all about doing it right.

QotD: Obama’s negotiation skills

Filed under: Politics, Quotations, USA — Tags: , , , , — Nicholas @ 00:01

[President Obama] said he would take executive action on immigration by year’s end unless Republicans passed a bill. It’s certainly a bold negotiating tactic: You can do what I want, or I’ll go ahead and do what I want anyway. This is how you “negotiate” with a seven-year old, not a Senate Majority Leader.

I’m not sure that isn’t what Obama thinks he’s doing, and I’m sure many of my left-leaning readers are chuckling right now at the comparison. But Mitch McConnell is not a seven year old; he’s an adult, and he just won an election in which voters repudiated Obama and his party. (Temporarily, I am sure, but just the same: As someone once said, “Elections have consequences.”) McConnell is not the proverbial Tea Party extremist who won’t negotiate; he’s an establishment guy, known as a strategist and a tactician, not an ideologue (which is why the Tea Party isn’t that fond of him). In short, he’s someone who can make deals. Responding to McConnell’s rather gracious remarks about finding common goals by announcing that you know what the American public wants, and you’re going to give it to them no matter what their elected representatives say, seems curiously brash. It might chill the atmosphere today when he sits down with congressional leaders.

I wonder if Obama even knows how to negotiate with Republicans. It’s not as if he has a long, distinguished record of passing legislation in a mixed environment. His later years in the Illinois State Senate enjoyed a solid Democratic majority, and he jumped into the U.S. Senate at a propitious time. Soon after he arrived came the wave of 2006, when Democrats controlled both houses of congress by comfortable margins, and Senator Obama was far too junior to be negotiating with the White House. Then came the financial crisis, and another wave, and Obama spent the first two years of his presidency in a happy situation where he could get things done without needing the support of the opposition. He didn’t even negotiate with his own party; the Senate negotiated his health care bill, and Nancy Pelosi whipped it through the House.

Post 2010, of course, he also hasn’t had much practice negotiating. I’m not interested in another tedious argument about who did what to whom; whatever the cause and whoever’s fault it may be, the fact remains that the president has spent the last four years in a stalemate: Neither party can leave, and neither party can win.

It’s a little late in the president’s career to learn the fine art of making deals with people who fundamentally disagree with you, but might be willing to work on whatever small goals you might share. I suspect it feels more comfortable to go along with the strategy that has worked decently well over the last four years: hold your ground, complain about Republican intransigence, and hope that Republican legislators give you another opportunity to play long-suffering adult in the room.

Megan McArdle, “Does Obama Even Know How to Negotiate?”, Bloomberg View, 2014-11-07.

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