Published on 25 Feb 2015
If price controls have negative consequences, why do governments enact them? Let’s revisit our example of President Nixon’s wage and price controls in the 1970s. These price controls were popular, as is demonstrated by Nixon being re-elected after they went into effect. The public didn’t think that the price controls were to blame for things such as long lines at the fuel pump. Without knowledge of the economics behind price controls, the public blamed foreign oil cartels and oil companies for the shortages.
In this video we’ll also address questions such as: do price controls — like rent controlled apartments and the minimum wage — help the poor? Are there better ways to help the poor? If so, what are they? Let’s find out.
August 3, 2015
July 14, 2015
Published on 7 Jul 2015
Al Stewart – Time Passages 1979
It was late in December, the sky turned to snow
All round the day was going down slow
Night like a river beginning to flow
I felt the beat of my mind go
Drifting into time passages
Years go falling in the fading light
Buy me a ticket on the last train home tonight
Well I’m not the kind to live in the past
The years run too short and the days too fast
The things you lean on are the things that don’t last
Well it’s just now and then my line gets cast into these
There’s something back here that you left behind
Oh time passages
Buy me a ticket on the last train home tonight
Hear the echoes and feel yourself starting to turn
Don’t know why you should feel
That there’s something to learn
It’s just a game that you play
Well the picture is changing
Now you’re part of a crowd
They’re laughing at something
And the music’s loud
A girl comes towards you
You once used to know
You reach out your hand
But you’re all alone, in these
I know you’re in there, you’re just out of sight
Buy me a ticket on the last train home tonight
July 9, 2015
Published on 25 Feb 2015
Suppose there is a mild winter on the West Coast and a harsh winter on the East Coast. As a result of the weather, people on East Coast will demand more home heating oil, bidding up the price. Under the price system, entrepreneurs will be incentivized to take oil from where it has lower value on West Coast to where it has higher value on the East Coast. But when price controls are in place, even though the demand is still there from the East Coast, there is no signal of a higher price, eliminating the incentive for entrepreneurs to transport oil from west to east. In fact, this happened in the 1970s, resulting in oil going to lower valued uses on the West Coast while many people on the East Coast didn’t have enough oil to heat their homes. In this video, we’ll look at a diagram to visualize this misallocation of resources.
July 5, 2015
While I don’t think I ever saw an episode of the British sitcom The Good Life, I’ve read a fair bit about it in passing, as it is one of the mass media touchstones used by Dominic Sandbrook in his series of hefty tomes about British life from the 60s onwards. In short, a middle-aged couple bail on their middle-class lives and try to set up a self-sufficient lifestyle on their (fully paid-off) house in the suburbs. The interaction between the couple and their still-living-the-middle-class-life next-door neighbours provides much of the humour for the show. Based on that, I must heartily agree with David Thompson’s explanation of the show:
… Tom and Barbara’s experiment in “self-sufficiency” wasn’t particularly self-sufficient. They don’t prevail in the end, not on their own terms or in accord with their stated principles, and their inability to do so is the primary source of story lines. Practically every week the couple’s survival is dependent on the neighbours’ car, the neighbours’ chequebook, the neighbours’ unpaid labour, a convoluted favour of some kind. And of course they’re dependent on the “petty” bourgeois social infrastructure maintained by all those people who haven’t adopted a similarly perilous ‘ecological’ lifestyle. The Goods’ “non-greedy alternative” to bourgeois life is only remotely possible because of their own previous bourgeois habits — a paid-off mortgage, a comfortable low-crime neighbourhood with lots of nearby greenery, and well-heeled neighbours who are forever on tap when crises loom, i.e., weekly.
To seize on The Good Life as an affirmation of eco-noodling and a “non-greedy alternative” to modern life is therefore unconvincing, to say the least. The Goods only survive, and then just barely, because of their genuinely self-supporting neighbours — the use of Jerry’s car and chequebook being a running gag throughout. And insofar as the series has a feel-good tone, it has little to do with championing ‘green’ lifestyles or “self-sufficiency.” It’s much more about the fact that, despite Tom and Barbara’s dramas, bad choices and continual mooching, and despite Margo’s imperious snobbery, on which so much of the comedy hinges, the neighbours remain friends. If anything, the terribly bourgeois Margo and Jerry are the more plausible moral heroes, given all that they have to put up with and how often they, not Tom’s principles, save the day.
July 2, 2015
While other literary novelists tended to steer clear of such contentious territory, the writers of cheap thrillers had no such inhibitions. In Pamela Kettle’s hilariously bad The Day of the Women (1969), a feminist political party, IMPULSE, wins the 1975 general election and inaugurates a reign of terror. “A female Prime Minister … human stud farms run by women … mass rallies at Buckingham Palace to celebrate the day of the dominating woman”: all were signs of “high-heeled fascism, a dictatorship of unbridled power lust”, according to the paperback blurb. The master of this kind of thing, though, was the pulp science-fiction writer Edmund Cooper, whose views on women’s liberation were full-bodies, to say the least. In an interview with Science Fiction Monthly in 1975, he commented that men were right to be suspicious of high-flying career women, because “most women are going to get themselves impregnated and piss off shortly after they’ve mastered the job and got themselves a decent salary”. He was in favour of “equal competition”, though, because then “they’ll see that they can’t make it. We have had free education in this country for a great many years, but where are the good female mathematicians? Where are the good female scientists? Where are the female Beethovens? They’ve gone back home to wash the dishes and produce children.”
These views shone through in his books: in Five to Twelve (1968), for example, twenty-first-century Britain is run entirely by women, with men reduced to “chattels”, not only few in number but physically dwarfed by their Amazonian mistresses. This terrible situation, we discover, is all down to the Pill, which liberated women from their own biology and made them “both in the literal and in the metaphorical sense, impregnable”. One man, a “troubador” with the bizarre name of Dion Quern, tries to resist, but, like Orwell’s Winston Smith, he meets a tragic conclusion. In Who Needs Men?, meanwhile, twenty-fifth-century Britain is again dominated by women, lesbian orgies are all the rage and Nelson’s Column has been renamed Germaine’s Needle. The plot follows the adventures of Rura Alexandra, “Madam Exterminator”, who is leading the effort to wipe out the last men hiding in the Scottish Highlands. But even she is vulnerable to the most dangerous weapon of all — love — as she falls for her opponent, Diarmid MacDiarmid, “the last remaining rebel chieftain”.
Dominic Sandbrook, State of Emergency — The way we were: Britain 1970-1974, 2010.
June 29, 2015
Published on 25 Feb 2015
Price ceilings result in five major unintended consequences, and in this video we cover two of them. Using the supply and demand curve, we show how price ceilings lead to a shortage of goods and to low quality goods. Prices are signals that indicate to suppliers how much is being demanded, but when prices are kept artificially low with price ceilings, suppliers have no way of knowing how many goods they should produce and sell, leading to a shortage of goods. Quality also decreases under price controls. Do you ever wonder why the quality of customer service at Starbucks is generally better than at the DMV? The answer lies in incentives and price ceilings. We’ll discuss further in this video.
June 27, 2015
Published on 25 Feb 2015
In 1971, President Nixon, in an effort to control inflation, declared price increases illegal. Because prices couldn’t increase, they began hitting a ceiling. With a price ceiling, buyers are unable to signal their increased demand by bidding prices up, and suppliers have no incentive to increase quantity supplied because they can’t raise the price.
What results when the quantity demanded exceeds the quantity supplied? A shortage! In the 1970s, for example, buyers began to signal their demand for gasoline by waiting in long lines, if they even had access to gasoline at all. As you’ll recall from the previous section on the price system, prices help coordinate global economic activity. And with price controls in place, the economy became far less coordinated. Join us as we look at real-world examples of price controls and the grave effects these regulations have on trade and industry.
April 3, 2015
The gap between Americans raised before World War II and after was huge in a way that’s difficult to recall for those of us who came of age after the ’60s. Greatest Generation parents who might have grown up without on-demand indoor plumbing and survived the Depression and fighting in Europe, the Pacific, North Africa, and Korea came from a different planet than the one on which they raised their kids. To their credit, they bequeathed to the baby boomers a world that was still full of major problems but one that was much richer and full of opportunities. And to their credit, the boomers (of which I’m a very late example, having been born in 1963) readily went about using new opportunities and freedoms (expressive, sexual, educational, economic) to build the world they wanted to live in.
In the late ’60s and a good chunk of the ’70s, youth-oriented pop music was central to that project. Whatever you might think of the Beatles’ music, their very existence — and their constant self-recreations — made everything seem possible. They were far from alone as pop music maguses, too.
Simply by talking with major pop figures, Rolling Stone could be a vital and compelling magazine because it served as something like a boomer conversation pit. Over time, however, music stopped playing the same sort of vital role in generational conversations — don’t get me wrong, it’s still a part of it all. But as the mainstream in every area of life splintered and recombined into a million different subspecies, no single form of cultural expression matters so much to so many people anymore.
That’s a good thing for the culture and the country (and the planet, really), but Rolling Stone has been looking for a replacement core identity for decades now. The magazine that once published New Journalism masterpieces about David Cassidy and stardom, Patty Hearst’s rescuers, and “Charlie Simpson’s Apocalypse” had trouble figuring out how to deal with a world in which pop and movie stars were less interesting than ever (and more disciplined in terms of talking with the press) and in which men and women of good faith might actually disagree over complicated aesthetic and ideological matters. There has been a lot of good writing and reporting over the years, but there’s no question, I think, that the magazine is chasing trends and insights rather than creating them.
In a world in which pop culture — especially youth-oriented pop culture — allows a thousand flowers to bloom in a way that was unimaginable even 40 years ago, Rolling Stone can no longer get by simply by talking with Patti Smith or John Lennon or Bob Dylan for 25,000 words at a time. It might have reinvented itself as a clubhouse where people who love music or movies or whatever could get together to argue over politics, economics, and policy. That could indeed be interesting, especially in a world where large chunks of young Americans are going right, left, and especially libertarian. Just as there is no longer one dominant mode of music, there is no longer one dominant mode of politics.
But the people at the helm of Rolling Stone cannot seemingly even acknowledge that anyone who might disagree with them on, say, the effects of minimum wage laws on the poor, is worth a second thought. All they can do, out of a sense of liberal guilt, is publish radical calls to arm that they must know are ridiculous. Sadly, a magazine that was once required reading for anyone who wanted to know what the younger generation cared about is now a pedantic, insecure, and ultimately ineffective tool of Democratic Party groupthink.
Nick Gillespie, “Rolling Stone‘s Sad ‘5 Economic Reforms Millennials Should Be Fighting For'”, Hit and Run, 2014-01-04
February 5, 2015
By way of Ghost of a Flea, an interesting look at one of the pivotal men in music from the late 60s onward:
Uploaded on 28 Feb 2011
In the ‘Interview with a Legend’ series RØDE Microphones’ founder and director Peter Freedman hosts an intimate discussion with icons from all areas of the audio industry including Engineers, Producers, Musicians, Artists and Entrepreneurs.
A musical pioneer in the truest sense, Alan Parsons is one of the most revered engineers and producers in history.
Alan talks candidly to Peter about how hearing Sgt Peppers was a defining moment in his life and career, setting him on the path to Abbey Road Studios where he would play an integral role in such timeless recordings as The Beatles’ infamous Let It Be rooftop performance and Pink Floyd’s masterpiece Dark Side of the Moon.
He goes on to discuss the incredibly influential Alan Parsons Project, and the future of recording.
January 31, 2015
January 1, 2015
In the Washington Post, Stephen Moore recounts the tale of the most famous napkin in US economic history:
It was 40 years ago this month that two of President Gerald Ford’s top White House advisers, Dick Cheney and Don Rumsfeld, gathered for a steak dinner at the Two Continents restaurant in Washington with Wall Street Journal editorial writer Jude Wanniski and Arthur Laffer, former chief economist at the Office of Management and Budget. The United States was in the grip of a gut-wrenching recession, and Laffer lectured to his dinner companions that the federal government’s 70 percent marginal tax rates were an economic toll booth slowing growth to a crawl.
To punctuate his point, he grabbed a pen and a cloth cocktail napkin and drew a chart showing that when tax rates get too high, they penalize work and investment and can actually lead to revenue losses for the government. Four years later, that napkin became immortalized as “the Laffer Curve” in an article Wanniski wrote for the Public Interest magazine. (Wanniski would later grouse only half-jokingly that he should have called it the Wanniski Curve.)
This was the first real post-World War II intellectual challenge to the reigning orthodoxy of Keynesian economics, which preached that when the economy is growing too slowly, the government should stimulate demand for products with surges in spending. The Laffer model countered that the primary problem is rarely demand — after all, poor nations have plenty of demand — but rather the impediments, in the form of heavy taxes and regulatory burdens, to producing goods and services.
Solid supporting evidence came during the Reagan years. President Ronald Reagan adopted the Laffer Curve message, telling Americans that when 70 to 80 cents of an extra dollar earned goes to the government, it’s understandable that people wonder: Why keep working? He recalled that as an actor in Hollywood, he would stop making movies in a given year once he hit Uncle Sam’s confiscatory tax rates.
When Reagan left the White House in 1989, the highest tax rate had been slashed from 70 percent in 1981 to 28 percent. (Even liberal senators such as Ted Kennedy and Howard Metzenbaum voted for those low rates.) And contrary to the claims of voodoo, the government’s budget numbers show that tax receipts expanded from $517 billion in 1980 to $909 billion in 1988 — close to a 75 percent change (25 percent after inflation). Economist Larry Lindsey has documented from IRS data that tax collections from the rich surged much faster than that.
November 30, 2014
I managed to miss the initial controversy about a typographical hoax that might not have been so hoax-y:
According to the website of the Independent newspaper, LEGO UK has verified the 1970s ‘letter to parents’ that was widely tweeted last weekend and almost as widely dismissed as fake. Business as usual in the Twittersphere — but there are some lessons here about dating type.
‘The urge to create is equally strong in all children. Boys and girls.’ It’s a sentiment from the 1970s that’s never been more relevant. Or was it?
Those of us who produce or handle documents for a living will often glance at an example and have an immediate opinion on whether it’s real or fake. That first instinct is worth holding on to, because it comes from the brain’s evolved ability to reach a quick conclusion from a whole bunch of subtle clues before your conscious awareness catches up. It’s OK to be inside the nearest cave getting your breath back when you start asking yourself what kind of snake.
But sometimes you will flinch at shadows. Why did this document strike us as wrong when it wasn’t?
First, because the type is badly set in exactly the way early consumer DTP apps, and word processor apps to this day (notably Microsoft Word), set type badly — at least without the intervention of skilled users. I started typesetting on an Atari ST, the poor man’s Mac, in 1987. The first desktop publishing program for that platform was newly released, running under Digital Research’s GEM operating system. It came with a version of Times New Roman, and almost nothing else. Me and badly set Times have history.
In the LEGO document, the kerning of the headline is lumpy and the word spacing excessive. The ‘T’ seems out of alignment with the left margin, even after allowing for a lack of optical adjustment. The paragraph indent on the body text has been applied from the start, contrary to modern British typesetting practice; the first line should be full-out. The leading (vertical space between lines of text) is not quite enough for comfort, more appropriate to a dense newspaper column than this short blurb.
There’s also an error in the copy: ‘dolls houses’ needs an apostrophe. Either before or after the last letter of ‘dolls’ would be fine, depending on whether you think you mean a house for a doll or a house for dolls. But it definitely needs to be possessive.
It wasn’t just that the type looked careless. It was that it stank of the careless use of tools that shouldn’t have been available to its creators.
November 8, 2014
From this week’s Goldberg File email newsletter [Update: it’s now online]:
In Men in Dark Times Hannah Arendt says, “Storytelling reveals meaning without committing the error of defining it … it brings about consent and reconciliation with things as they really are.”
This, naturally, brings to mind that great episode of the Brady Bunch “Adios, Johnny Bravo.” This YouTube video summarizes the tale expertly, but since you might be at work and are reluctant to get caught watching Brady Bunch videos (again) at the office, I will summarize. Greg Brady, scion of House Brady, is offered a contract from a record label. At first he is reluctant to sign on because he’s a loyal member of his family band. But the record producers convince him that he owes it to himself to be all he can be. They want him to become the new smash-hit sensation “Johnny Bravo.”
The role of Johnny Bravo comes complete with a sensational matador-themed costume and a rented gaggle of winsome young ladies ready to tear it off on command (very much like the job of senior editor here at National Review). The producers promise that he won’t simply be in the Top 20, he’ll be the Top 20. “Just sit back, relax, and enjoy the ride,” they tell him. It would be a tempting offer for any young man.
After much soul-searching, Greg agrees to become Johnny Bravo. That is, until he finds out that the producers don’t much care about his musical talent. Through the wizardry of music production — long before the advent of AutoTune — they twist his vocal stylings to what the market wants, not what Greg’s muse has on offer. “That’s not the way I sound!” Greg protests.
The producer retorts, “You? Now c’mon baby, don’t get caught up on an ego trip. I mean who cares how you sound? We’re after the sound.”
If you don’t care about my sound, what do you need me for? Greg asks.
“Because you fit the suit,” another producer responds.
Putting the O in BravO
Forgive me for committing the error of defining my meaning. But Barack Obama fits the suit.
In my USA Today column this week, I argued that Barack Obama is indisputably good at one thing: Getting elected president of the United States.
That’s it. He’s not good at being president of the United States. He’s not good at being the head of his party. He’s not good at diplomacy or public policy or managing large bureaucracies. He has no new ideas. But man did he fit the suit, metaphorically speaking.
I realize this runs against the grain of a lot of right-wing thinking — that Obama is really a secret Muslim-Marxist radical biding his time to seize the means of production and impose sharia. Well, the clock is running out on that theory.
I have no doubt that Obama’s more left-wing in his heart than he is in his speeches and public priorities. But my basic point is that Obama doesn’t realize that his electoral success was a function of the media age we are in. He fit the part. He said the right words. He was an anti-George W. Bush when lots of people desperately wanted an anti-George W. Bush. He was black, cool, and eggheady in just the right way. Voting for Obama made lots of people feel good about themselves — which is a terrible reason to vote for anybody. Media elites and average Americans alike were seduced because they wanted to be seduced.
They — starting with Obama himself — believed the hype. And he still does.
He’s like modern-day Johnny Bravo lip-synching an auto-tuned song about “keeping it real” and he thinks he’s actually keeping it real. He goes around talking about how much he hates talking points and sound-bites, how much he loathes cynicism and ideology. And yet, he does all this in talking points and sound-bites packed like verbal clown cars with ideology and cynicism.
From the early days of Rush, with their original drummer (John Rutsey):
October 16, 2014
Peter Bebergal discusses some of the occult influences of Progressive Rock at Boing Boing:
At a recent gallery show of his artwork, Roger Dean — best known for his lush and fantastical album covers for Yes in the 1970s — was enjoying the crowd when a man approached him and held out his hand to shake. “Mr. Dean, your work has changed my life,” he said, “I have gleaned so many amazing, mystical secrets from looking at your album covers, can you tell me sort of what you meant by it.” Dean, ever polite, tried to let the man down easily. “I didn’t mean anything at all. It was just a good — looking album cover.” His superfan, disillusioned, and possibly embarrassed, now turned nemesis, “Well, what do you know?” he angrily spat, “You’re just the artist!” Despite his protestations, Dean might have taken some responsibility for contributing to casting a wide mystical net over an entire subgenre of music, known sometimes derogatorily as progressive rock. You are unlikely to find a prog-rocker who refers to their own music in those terms, but the term serves as a way to describe a movement in rock, one steering a massive ship away from the siren call of blues-based rock that had so long dominated popular music, toward a more English tradition of what Greg Lake of the supergroup Emerson, Lake and Palmer (ELP) described as “troubadour, medieval storytelling.” Rock would inherit this mantle proudly, looking toward the mythology of the past — often heavily informed by occult images — to construct the sound of the future.
Psychedelic rock bands set the course, but in the 1970s, a new wave of bands looked beyond the drugginess of psychedelia to classical music as the true guide. Coupled with the instruments of the future — particularly Moog synthesizers — progressive rock crafted rock suites, with some songs clocking twenty minutes or more. Dean’s paintings were otherworldly landscapes of floating islands and boulders, or stone structures rising up like trees. Largely unpopulated, save for the occasional butterfly/dragon hybrid, there were no aliens, elves, or wizards. His worlds might be long-dead civilizations, like the lifeless plains of Mars haunted by the once-thriving Martian societies in Ray Bradbury’s Martian Chronicles, or future lands where people have taken to hibernating in the inexplicable constructions of their cities, endlessly waiting. Dean had perfected the merging of science fiction with mysticism, invoking the imagination of prog-rock listeners who were convinced there was some story or greater truth behind his art, and spent hours listening and poring over the album covers, meant to coexist in an ideological way.