February 10, 2014
The difference between money and wealth
At Ace of Spades HQ, Monty gives an introduction to Say’s Law:
Jean-Baptiste Say, an 18th-century economist and follower of Adam Smith, recognized one of the most fundamental laws in all economics: the entirely common-sense observation that consumption requires production. This axiom is called Say’s Law of Markets.
However, this axiom is often mis-stated as “production creates its own demand”. This is incorrect — production is necessary for consumption to take place, but production anticipates demand, it does not cause it. Production is speculative in this sense. The simple act of producing some good or service does not, in and of itself, create demand for that good or service. (This is true even for basic commodities.)
What Say’s Law really says is that production is the source of wealth. Market-driven production creates value and provides choice to consumers. Inventors and innovators bring new products to market, and as consumers are exposed to these new products, demand rises with the utility or desirability of these new products. New markets are opened by innovators who are able to tap into needs and wants that consumers didn’t even know they had until a new product or service is offered.
And he explains why money is not wealth:
So what is “wealth”, really? (I could write a whole book on the difference between “wealth” and “money”, but I’ll try to boil it down.) Wealth is options. Wealth is choice. Wealth is variety. Wealth is agency — being able to do what you want to do when you want to do it. Wealth is surfeit — having more than the essentials of life. It is comfort, leisure, ease — or at least the agency and option (those words again) to avail oneself of leisure. Simply put, wealth is stored value that can be drawn down in various ways, only some of which involve the exchange of money for goods and services. And how is wealth created? Through production, because production must necessarily precede consumption.
Money correlates with wealth because money is a medium of exchange and a store of value. Rich people have a lot of money because they are wealthy, not the other way around. Wealth allows us to buy a bigger house or better car or nicer furniture. It pays for a nice dinner for two at an upscale restaurant. Note well: wealth buys these things, not money per se. Consumption is the draw-down of wealth, not the simple expenditure of money.
Money is the oil in the machine of an economy, but money is not in and of itself wealth. If I am stranded on a desert island with a thousand gold coins, I am just as poor as if I were a homeless vagrant living in an alleyway somewhere, because I cannot exchange my gold for things I want or need. It does not give me options or variety or comfort. My gold facilitates neither production nor consumption absent a market mechanism that makes use of it.
A “Dumb” parody that Starbucks finds unamusing
I am not a lawyer, but it seems to me that this “parody” of a Starbucks shop is too similar to the real thing and that it would be easy for someone to think they were buying “the real thing” at this store:
A store labeled as “Dumb Starbucks,” using the Starbucks corporate logo and bearing an almost identical look to an actual Starbucks, opened up in Los Feliz on Friday, according to employees.
It was open until about 6 p.m. Saturday and drinks were free as part of what a barista called a “grand opening.”
The coffee shop reopened again Sunday morning and coffee was again free. Dozens of people could be seen waiting in line to get in.
Messages left with people associated with “Dumb Starbucks” seeking comment have not been returned. Messages left with Starbucks Corporation have also not been returned.
The menu was limited.
On Sunday, there still was no business license or health code rating posted in the establishment. The baristas said they were hired from Craigslist.
Despite the popularity, customers seemed confused about what exactly was going on.
“I saw online that there was a Dumb Starbucks sign. One of my friends posted about it, and I live across the street, so I just walked over,” Jonathan Brown told KPCC. He described it as “weirdly off-kilter,” with everything looking like a regular Starbucks except for the word “dumb” in front of it.
Their “FAQ” posting shows that they’re aware that this ploy may not be lawyer-proof:
Update, 11 February: The prank is revealed to be the work of Nathan Fielder.
Mr Fielder appeared in person at the store to make the announcement, where he said there are plans to open a second outlet in Brooklyn, New York.
There had been widespread speculation that the store, which uses Starbucks’ trademarks, was a publicity stunt.
Starbucks said they were aware of the store but denied any affiliation.
“We are evaluating next steps and while we appreciate the humour, they cannot use our name, which is a protected trademark,” a Starbucks spokesperson said in a statement.
The NFL’s first openly gay draft candidate and the Vikings’ image problem
It’s likely to be a very tense day in the public relations office of the Minnesota Vikings, after Missouri defensive lineman Michael Sam came out … and the jokes started about the only team in the league that wouldn’t draft him. At The Viking Age, Dan Zinski rounds up the first crop of jokes and rumours:
News broke late Sunday afternoon of former Missouri defensive lineman and current NFL draft prospect Michael Sam’s decision to come out as a gay man. Immediately the jabs started appearing on Twitter, the great social media instant pop culture temperature gauge.
“Well, I know the Vikings won’t be drafting Michael Sam,” tweeted @dbaby_23.
“I’m going to go out on a limb and say Michael Sam will not be drafted by the Vikings,” tweeted @ChrisJamesMMA.
“100000 dollars says the vikings dont draft michael sam,” tweeted @sports_scene.
“I bet Michael Sam would make a great special teams player for the vikings!” tweeted @MattesonTrevor.
“well you know the Vikings aren’t gonna draft Michael Sam,” tweeted @Miyag_e.
And on and on in that vein.
Endless jokes about how the Vikings will never draft Michael Sam because they have an openly homophobic coach on their staff.
Completely unfair jokes, because Mike Priefer, even if he thinks the things Chris Kluwe says he thinks, doesn’t speak for the team. He only speaks for himself.
But still, it’s out there. It’s in people’s minds. The Vikings are guilty of homophobia, if only by association.
A willing association with a man whose public image is, justly or unjustly, that of a bigot.
The timing couldn’t be much worse for the Vikings: they had an ongoing investigation into Chris Kluwe’s accusations against Mike Priefer, but they also had a new coaching staff being hired. They couldn’t just part company with Priefer while the investigation was underway for fear of being sued for wrongful dismissal. If the investigation sustains Kluwe’s side of the story, the team can discipline or dismiss Priefer with a clear conscience (assuming that the investigation isn’t a whitewash from the start), but if they clear Priefer of any wrongdoing, they’ll probably take an even worse beating in the court of public opinion … at least until the next NFL scandal comes up.
The media attention on the story of the first openly gay NFL player (assuming he’ll be drafted, that is) won’t be over quickly. The Vikings can only hope that their share of the attention will quickly diminish.
Putin’s homophobia is making the case to allow same-sex marriage
The Russian leader’s anti-homosexual agenda is making converts of people like Telegraph columnist Cristina Odone who had been strongly against allowing same-sex marriage:
Vladimir Putin has succeeded where Peter Tatchell failed. I loathe the Russian president and admire the gay rights campaigner, but it is Putin that has made me rethink my view of gay marriage.
I have written before about my fear that legalising gay marriage would affect the special status of marriage as a sacred institution. I have argued that once gay people could demand to be married, believers who refused to open their churches or even church halls to the ceremony would be punished. But Putin’s homophobic measures have changed my mind. If I oppose gay marriage I may be seen as condoning his anti-gay campaign. I couldn’t live with that.
Russia’s anti-gay laws and practices are odious. Last summer, the Duma passed a law to “protect children from information that can bring harm to their health and wellbeing”. The legislation can stamp out any organisation seen as pro-gay and fine it up to 1 million roubles; foreigners can be arrested for 15 days and deported from the country. (Note: circulating Nazi propaganda carries a fine of up to 2,000 roubles: Russian parliamentarians regard non-traditional relations as far more pernicious.)
The new law is easy to manipulate, allowing for example the authorities to shut down a helpline for LGBT teenagers, the Children-404 project: by providing sympathetic advice to isolated, bullied, ostracised, depressed and sometimes suicidal LGBT teenagers, the group is guilty of propaganda
February 9, 2014
“A car is a mini network … and right now there’s no security implemented”
Driving your car anywhere soon? Got anti-hacking gear installed?
Spanish hackers have been showing off their latest car-hacking creation; a circuit board using untraceable, off-the-shelf parts worth $20 that can give wireless access to the car’s controls while it’s on the road.
The device, which will be shown off at next month’s Black Hat Asia hacking conference, uses the Controller Area Network (CAN) ports car manufacturers build into their engines for computer-system checks. Once assembled, the smartphone-sized device can be plugged in under some vehicles, or inside the bonnet of other models, and give the hackers remote access to control systems.
“A car is a mini network,” security researcher Alberto Garcia Illera told Forbes. “And right now there’s no security implemented.”
Illera and fellow security researcher Javier Vazquez-Vidal said that they had tested the CAN Hacking Tool (CHT) successfully on four popular makes of cars and had been able to apply the emergency brakes while the car was in motion, affect the steering, turn off the headlights, or set off the car alarm.
The device currently only works via Bluetooth, but the team says that they will have a GSM version ready by the time the conference starts. This would allow remote control of a target car from much greater distances, and more technical details of the CHT will be given out at the conference.
Democracy and the media
Nigel Davies looks at the uncritical admiration of the form of democracy (while actively ignoring the actual practice) among Western media people:
It is interesting to look around the world at the moment and identify the failures of democracy, and to be amused by the Western media’s complete incomprehension of what is going on and why.
Time and time again you get headlines about how people should stand back and accept the ‘democratically elected government’, despite the fact that the democratic result was a fairly evil dictator keen on persecution, mass murder, civil war and ethnic cleansing.
This is because most ignorant Western journalists believe as an absolute truth that ‘democracy’ is a good thing, despite all the evidence that democracy is as bad, or even worse, than any other form of government. (Interestingly many non-western journalists treat democracy with considerable scepticism, which baffles Western journalists even more.)
Just to be clear Robespiere, Napoleon III, Mussolini and Adolf Hitler were in some form ‘democratically elected’ leaders, and every Communist dictator, ever, has regularly received about 97% of the popular vote in their countries.
[…]
Which brings us to unofficial one party states, like South Africa, where there is a popular vote which means virtually nothing. People get a say, but there is no chance of removing the party which — very largely through its dreadful economic and social policies — has kept the vast majority of the voters ignorant and poor (while flooding them with propaganda suggesting that result is an outside conspiracy, and only the people’s party can save them …) Actually some of you might recognise this more directly as being Mugabe’s very blunt approach, but the principal is the same when adopted by more weasely worded one party statists (for whom too many Western journalists have a romanticised and highly inaccurate perspective).
Most African (and many Asian and Middle Eastern … and Eastern European) ‘nations’ that pretend to democracy, are effectively one party states where the ‘opposition’ is never really going to be allowed to get anywhere.
A current example he points to is Egypt:
I am not just talking about people like Hitler who managed to manipulate 25-30% of the vote to dominate a chaotic parliament long enough to change all the rules and entrench their power. (Though that appears to be the default result for 90-95% of all Republics throughout all history, so perhaps it is worthy of some reflection.) No, I am more interested in places where a genuine majority of the population vote repeatedly for a leader who every educated and thinking (not the same thing unfortunately) person knows will lead them to disaster.
Effectively what we are talking about here is popularistic appeals to the ignorant peasantry who make up the majority of the population.
Egypt recently elected the Muslim Brotherhood. This was done by the majority votes of the ignorant peasants in the rural areas, and against the wishes of practically anyone who could be classed as educated, literate, liberal, or with an understanding of rule of law, or role of commerce and legal rights in a modern society. Ie: the traditional appeal to the ignorant to grab control of the ‘means of production’ and ‘distribute it more fairly’ — which always leads to the same results of poverty and persecution whether you call it a Fascist state (Nazi Germany) Communist state (People’s Republic), Theocratic state (Muslim republic, Hindu republic, North Korea), or just a kleptocracy.
Naturally the Western journalists believe the Muslim Brotherhood should be left to develop its ‘democratic’ course.
The inevitable result of letting the Muslim Brotherhood rewrite the constitution and entrench their powers while introducing a Muslim republic with proper Sharia laws, would be a particularly nasty form of dictatorship. Like Nazi Germany or Soviet Russia, future votes would have been ‘controlled’ and eventually pointless. So the intervention of the military to throw them out and try and redo the democratic project was necessary, and possibly the only (very slim) hope of making it work. However, like Fiji, it may be only the start of many interventions to stop backsliding, until the military and people give up in disgust and settle down to exactly the sort of dictatorship which, more or less, kept things together and slowly moving forward under their previous dictators.
Video QotD: Sherlock Holmes on Canada
H/T to James Lileks for the clip.
Decoding “Rickspeak” at the Vikings’ Arctic Blast charity event
At the Daily Norseman Ted Glover has a mission. Part of it is to cover the Vikings on and off the field, during the pre-season, regular season, and (when the stars align correctly) the playoffs. He has another task during the off-season that may be his most critical contribution to Vikings fans: he translates the specially encoded verbiage of Vikings General Manager Rick Spielman into everyday English:
Rick Spielman spoke to the press up at Arctic Blast, and, as is my civic duty, I must break down Rickspeak and translate. Thanks to Master Tesfatsion of the Strib on getting some good notes.
And yes, I just wanted to write ‘Master Tesfatsion’, because I still maintain that’s the coolest beat writer name in Vikings history. Anyway, on to Rickspeak.
In short Rickspeak is GM Rick Spielman showing us his black belt in verbal judo, and it’s a nuanced way of speaking. You have to read between the lines to really get at what Spielman means, and that’s where I come in — I do the between the lines reading** to let you know what Spielman actually meant.***
**Obviously, that’s impossible. I don’t know how to read.
***Again, impossible. If I could read minds I would use it to take over the world, much like an evil James Bond villain. And no one wants that.
Here are a few key bits of translation:
Rick Said: …the team’s annual goal is to compile at least 10 draft selections. “We have eight right now and a lot of that [movement] doesn’t happen until you’re on the clock,” Spielman said on Saturday during the 19th annual Arctic Blast snowmobile rally to benefit the Vikings Children’s Fund. “Heck, last year they pulled me out of a press conference to go get [Cordarrelle] Patterson because you never know. But I really, really think we’re going to do a lot of movement in the draft.”
Rick Meant: 10 picks is cool, and nothing really starts moving until draft day, but I’m stirring the pot just by opening my grocery hole to the press. When I have dopes like Dan Snyder and whoever is running that sitcom we call the Cleveland Browns, I’m pretty sure I can talk them into anything. Remember trading back one spot the year everyone knew we were going to draft Matt Kalil…and still drafting Matt Kalil? Cleveland…HAHAHAHAHAHAHAHAHA.
Rick Said: Spielman thinks the Vikings have a lot of flexibility with the eighth overall pick and plans to be aggressive in the draft with the idea of trading down for more picks, or up for a certain player.
“Everything is a possibility; we’re in February,” Spielman said.
Rick Meant: I might move up. I might move down. I might move laterally. You say to yourself that’s impossible because you can’t move laterally, but when we’re sitting with three number 8 picks in the first round, your mind is going to be blown. AND YOU WILL WORSHIP THE GROUND THAT I WALK ON!
February 8, 2014
GuildMag Issue 10: Frozen Tales
Click the GuildMag logo to start reading this issue
The latest issue of GuildMag has just been published. Go to read the ultimate guide to the Shiverpeaks (couldn’t we have featured somewhere warm this time, Ollannach? I feel like I’m already living in the Shiverpeaks!)
What happened to charities that actually concentrate on charitable works, rather than lobbying?
James Delingpole on the remarkable community of interest between charitable organizations (partly funded by governments) and the government agencies they lobby:
“To compel a man to furnish contributions of money for the propagation of opinions which he disbelieves and abhors is sinful and tyrannical”. Thomas Jefferson, 1779.
One of the curses of modern life is the plethora of “charitable” lobbying groups demanding that the government take more regulatory action in areas where most of us believe the state has no business interfering.
Almost every day you read in the papers that some apparently grassroots movement, supposedly speaking for all of us, thinks more should be done to stop us drinking, smoking, eating sugar or salt, make us less sexist, force us to spend more on foreign aid or environmental issues. But if that wasn’t annoying enough, here’s the worst thing of all: we’re paying for these unrepresentative, mostly left-leaning lobby groups with our taxes.
This is the message of Chris Snowdon’s report for the Institute of Economic Affairs, The Sock Doctrine [PDF] — the third in his trilogy of broadsides against the lavishly state-funded “fake charities” industry. By 2007, he noted, a quarter of the UK’s 170,000 charities were receiving money from the state and approximately 27,000 received at least 75 per cent of their income from the state. If you share these charities’ predominantly liberal-Left-leaning aims you probably won’t mind so much. But if you don’t, you might be inclined to believe, as Fraser Nelson argued in these pages last year, that “Britain’s charities are nurturing a colourful, talented and efficient anti-Tory alliance.”
But, of course, there are opposing charitable organizations equally dependent on government funding and spending disproportional time and effort lobbying for their pet causes?
Well the problem is that they’re almost non-existent. The reason for this was identified in 1985 by US researchers James T. Bennett and Thomas J. DiLorenzo:
“Virtually without exception, the recipients of government grants and contracts advocate greater governmental control over and intervention in the private sector, greater limitations on rights of private property, more planning by government, income redistribution, and political rather than private decision making. Most of the tax dollars used for political advocacy are obtained by groups that are on the left of the political spectrum.”
New Viking stadium “seat licenses” a good reason to watch the game on TV
Perhaps I misunderstand the economic argument here, but I’d always had a pretty basic notion about buying season tickets or individual game tickets for most professional sports. You either bought a season ticket package for x number of games (up to the full season of home games) or you bought a single ticket for a particular game. Over the years, I’ve bought tickets to individual Viking games in Buffalo and Detroit where the purchase was simple and straightforward … I paid the fee and received a ticket. Nice and simple. Apparently that sort of stone-age arrangement is long in the past: at least in Minnesota, you need to buy a “seat license” in order to then buy season tickets. The Daily Norseman‘s Ted Glover explains:
In an effort to raise $100 million of their portion of money for the new stadium, the Vikings released their ‘stadium builder’s plan’ for folks that want season tickets.
What’s a stadium builder’s plan? Well, it’s a one time fee that allows to you get season tickets … and you’ll also have to pay for those. Basically, the better the seat, the more cabbage you’re going to have to cough up. For example, if you want a season ticket in the ‘Valhalla Club’, your one time seat license fee will be $9,500, plus the cost of season tickets.
Damn, son.
The Vikings will have SBL’s for approximately 75% of the seats in the stadium, and the farther away you get from the field, the cheaper they are. The cheapest SBL is $500, and you have two payment options, 3 years with no interest, or 8 years with an as yet TBD interest charge.
On the one hand, I approve of the idea that the fans should pay more of the cost of building a new stadium rather than non-football fans among the state’s taxpayers. On the other hand, the prices seem incredibly steep for a mere “license”. You can get a virtual look at what you’ll be licensing a tiny bit of:
However, in an effort to relieve the sticker shock of said licenses, they released a virtual tour of what the new stadium will look like. And it’s pretty damn cool.
So, grab your checkbook. And your ankles.
QotD: The defence ministry
The problem of the Ministry of Defence is that in peace time the three armed forces have no one on whom to vent their warlike instincts except the cabinet or each other.
Jonathan Lynn, “Yes Minister Series: Quotes from the dialogue”, JonathanLynn.com
The utopian bubble of elite university students
Jonah Goldberg on the “ideal” lifestyle of students at elite universities:
There’s a certain kind of elite student who takes himself very, very seriously. Raised on a suite of educational TV shows and books that insist he is the most special person in the world — studies confirm that Generation Y is the most egocentric and self-regarding generation in our history — he is away from home for the first time, enjoying his first experience of freedom from his parents. Those same parents are paying for his education, which he considers his birthright. Shelter is provided for him. Janitors and maids clean up after him. Security guards protect him. Cooks shop for him and prepare his food. The health center provides him medical care and condoms aplenty. Administrators slave away at finding new ways for him to have fun in his free time. He drinks with abandon when he wants to, and the consequences of his bacchanalia are usually somewhere between mild and nonexistent. Sex is as abundant as it is varied. If he does not espouse any noticeably conservative or Christian attitudes, his every utterance in the classroom is celebrated as a “valuable perspective.” All that is demanded of him is that he pursue his interests and, perhaps, “find himself” along the way. His ethical training amounts to a prohibition on bruising the overripe self-esteem of another person, particularly a person in good standing with the Coalition of the Oppressed (blacks, Latinos, Muslims, women, gays, lesbians, transsexuals, et al.). Such offenses are dubbed hate crimes and are punished in a style perfected in Lenin’s utopia: through the politicized psychiatry known as “sensitivity training.”
But even as this sensitivity is being cultivated, the student is stuffed to the gills with cant about the corruption of “the system,” i.e., the real world just outside the gates of his educational Shangri-La. He is taught that it is brave to be “subversive” and cowardly to be “conformist.” Administrators encourage kitschy reenactments of 1960s radicalism by celebrating protest as part of a well-rounded education — so long as the students are protesting approved targets, those being the iniquities of “the system.” There is much Orwellian muchness to it all, since these play-acting protests and purportedly rebellious denunciations of the status quo are in fact the height of conformity.
But it is a comfortable conformity, and this student — who in all likelihood will go into a profession at the pinnacle of the commanding heights of our culture — looks at this Potemkin world and thinks it is the way things are supposed to be. He feels freer than he ever has or ever will again, but that freedom is illusory. He is, in fact, a dependent: All his fundamental needs are met and paid for by others. This is what the political theorists call positive liberty — when someone else gives you a whole pile of stuff so you can be “free” to do whatever you want.
February 7, 2014
Hackers, “technologists”, … and girls
An interesting post by Susan Sons illustrating some of the reasons women do not become hackers in the same proportion that men do:
Looking around at the hackers I know, the great ones started before puberty. Even if they lacked computers, they were taking apart alarm clocks, repairing pencil sharpeners or tinkering with ham radios. Some of them built pumpkin launchers or LEGO trains. I started coding when I was six years old, sitting in my father’s basement office, on the machine he used to track inventory for his repair service. After a summer of determined trial and error, I’d managed to make some gorillas throw things other than exploding bananas. It felt like victory!
[…]
Twelve-year-old girls today don’t generally get to have the experiences that I did. Parents are warned to keep kids off the computer lest they get lured away by child molesters or worse — become fat! That goes doubly for girls, who then grow up to be liberal arts majors. Then, in their late teens or early twenties, someone who feels the gender skew in technology communities is a problem drags them to a LUG meeting or an IRC channel. Shockingly, this doesn’t turn the young women into hackers.
Why does anyone, anywhere, think this will work? Start with a young woman who’s already formed her identity. Dump her in a situation that operates on different social scripts than she’s accustomed to, full of people talking about a subject she doesn’t yet understand. Then tell her the community is hostile toward women and therefore doesn’t have enough of them, all while showing her off like a prize poodle so you can feel good about recruiting a female. This is a recipe for failure.
[…]
I’ve never had a problem with old-school hackers. These guys treat me like one of them, rather than “the woman in the group”, and many are old enough to remember when they worked on teams that were about one third women, and no one thought that strange. Of course, the key word here is “old” (sorry guys). Most of the programmers I like are closer to my father’s age than mine.
The new breed of open-source programmer isn’t like the old. They’ve changed the rules in ways that have put a spotlight on my sex for the first time in my 18 years in this community.
When we call a man a “technologist”, we mean he’s a programmer, system administrator, electrical engineer or something like that. The same used to be true when we called a woman a “technologist”. However, according to the new breed, a female technologist might also be a graphic designer or someone who tweets for a living. Now, I’m glad that there are social media people out there — it means I can ignore that end of things — but putting them next to programmers makes being a “woman in tech” feel a lot like the Programmer Special Olympics.
