Quotulatiousness

April 14, 2014

In defence of limited corporate liability

Filed under: Business, Law, Liberty, USA — Tags: , , — Nicholas @ 10:47

The RSS feed that used to track Megan McArdle’s posts at Bloomberg View has been on the fritz for a couple of weeks, so I missed this article when it was posted earlier this month:

The argument for unlimited liability isn’t just a libertarian evergreen; it’s also something you occasionally hear from the far left, because it would basically make the corporate form untenable. Imagine, if you would, that by buying and holding the share of a firm for 10 minutes, you thereby subjected yourself to seizure of all your goods to satisfy potential lawsuit judgments — even if those judgments involved behavior that involved no legal liability at the time of the acts.

Not possible? That’s basically what happened with asbestos liability. Firms that had had no legal liability under the doctrines of the times in which the asbestos was sold or used suddenly found themselves driven into bankruptcy by massive settlements. Moreover, after the first wave of lawsuits exhausted the funds available to pay asbestos claims, plaintiffs’ lawyers started pushing to expand the number of pockets that could be dipped into.

A company that had never manufactured asbestos could be sued and have to spend hundreds of millions of dollars on lawsuits and settlements because it had once bought a company with an insulation division that had formerly manufactured asbestos — even though it had immediately sold off that division in the process of completing the merger. Insurers could be forced to pay out for the whole of a company’s liability if they had sold a company insurance for even a year between the time a company started making or using asbestos and the time that the plaintiff discovered the harm. And “harm” wasn’t limited to getting sick; you could sue for the emotional distress of worrying that you might get sick.

Kind of hard to imagine becoming a shareholder under those circumstances, isn’t it? Maybe you’d better put your money in the bank — a small, privately held bank, of course. Commerce would look something like it did in medieval Italy, where all economic activity was basically organized by the family or the partnership.

Growth would have to be financed by debt or by retained earnings. That’s how British firms financed expansion in the early days of the Industrial Revolution. It’s how small businesses tend to finance expansion now.

The traditional libertarian answer is “insurance”, but that’s a non-starter as well.

To which I answer: What insurance company?

Insurers are also corporations, and their owners get the same valuable shield from liability that everyone else gets from the corporate form. They may have shareholders, or they may be mutually held by their policy holders, but either way, someone is getting protection from lawsuit by the same laws that protect General Motors Co. This sort of liability shield is vital for any large aggregation of capital requiring lots of contributors — which is basically the definition of an insurance company.

Queen’s student goes looking for racism, doesn’t find it, declares it’s happening anyway

Filed under: Cancon, Politics, Religion — Tags: , , , , — Nicholas @ 08:44

Your source of all sorts of odd news, the Daily Mail has this little gem from up the lake in Kingston, Ontario:

A Canadian college student recently conducted a social experiment to see if people treated her differently if she wore a hijab — a traditional Muslim veil that covers a woman’s head and chest — and what she discovered was a bit unexpected.

Anisa Rawhani, a third-year student at Queens University in Ontario, wore the traditional Muslim garb for 18 days in January as she worked at the university’s library, visited stores and restaurants near the campus and as she did volunteer work with local children.

According to Rawhani — who conducted the experiment to see if people in her community were racist towards minority groups — she noticed that people actually treated her more kindly and with more respect than when she didn’t wear the hijab.

Rawhani, who is not Muslim, wrote about her experience wearing traditional Muslim clothing in the March edition of the Queen’s Journal, where she works as a copy editor — the article is titled ‘Overt to Covert.’

Fortunately, as the Queen’s Journal account makes clear, she was able to get a clear explanation of the phenomenon from a professor:

Leandre Fabrigar, an associate professor in the department of psychology at Queen’s, cited “impression management” as a possible explanation for my experience.

He explained that often individuals who harbour biases, but fear social disapproval, will publicly act respectfully towards minorities. “Impression management is when [someone] very strategically, and usually quite deliberatively, tries to manage the impressions that others have of [them],” he said.

Impression management is focused on manipulating others’ perception of the self, but there are more genuine reasons why someone would be kinder towards minorities. Fabrigar said that sometimes individuals realize that they harbour biases, or other unwanted influences on their behaviour. Then, when interacting with members of minority groups, they experience an internal conflict between their negative biases and the egalitarian values that they believe in.

So the fact that Rawhani didn’t encounter overt forms of discrimination actually proves that the people she was interacting with in her Islamic disguise are hugely bigoted, hate-filled wretches who just don’t want to show it. Cool, got it, thanks.

SpaceX to test hover capability on next launch

Filed under: Space, Technology — Tags: , , , — Nicholas @ 08:25

In The Register, Brid-Aine Parnell explains what will be different about the next SpaceX launch to resupply the ISS:

NASA has said that SpaceX’s latest cargoship launch to the International Space Station will go ahead, despite a critical computer outage on the station, allowing the firm to test the craft’s hovering abilities.

[…]

The booster rocket that’s blasting the Dragon supply capsule into space is going to attempt to make a hovering soft landing after it’s disengaged and dropped back to Earth.

The spruced-up Falcon 9 has its own landing legs, which Elon Musk’s space tech company hopes will eventually make for precise set-downs on the surface of alien worlds. For this test though, the rocket will still be coming down over the ocean, just in case.

The launch is already a month late with its nearly 5,000 pounds of supplies and payloads, including VEGGIE, a new unit capable of growing salad vegetables for the ‘nauts to munch on. The ship was delayed from March after a ground-based radar system at Cape Canaveral was damaged.

You can tell it’s really Spring in Toronto

Filed under: Cancon — Tags: , , — Nicholas @ 08:10

The weather forecast for today and tonight contains a little bit of everything:

Update: The rest of the story:

With spring now well over three weeks old, the snow tires are off, the yard work has begun, and the boots and parkas are already at the back of the closet

However, winter weather is expected to make a comeback on Tuesday, as much of the province will see a major swing in temperatures and a mixed bag of precipitation.

Temperatures are expected to plummet from a high of 21 C on Monday to a low of -7 C on Tuesday night, with the potential for freezing rain and snow.

Ahead of winter’s reappearance, it will be a warm day for parts of southern Ontario on Monday as temperatures may reach the mid-twenties mark.

Environment Canada has once again issued a “special weather statement”, which they seem to do every other day recently. It’s not a storm warning or even a storm watch, but just a “hey, there’ll be some weather!” kind of thing. A communication tailored to the fact that weather is now treated like celebrity news in a lot of media markets.

QotD: Collard’s Law

Filed under: Bureaucracy, Humour, Quotations — Tags: — Nicholas @ 07:08

Given enough funding and little accountability, any organisation tends to look like a shit copy of the public sector.

Lewis Collard, in a comment on ESR’s Google+ post, 2014-04-13

Canada’s potential influence in East Asia

Filed under: Cancon, China, History — Tags: , , — Nicholas @ 00:01

In The Diplomat, Anthony V. Rinna looks at Canada’s rather history of diplomatic and cultural exchanges with China:

Canadian Prime Minister Stephen Harper has noticeably changed his stance toward China. Previously, the Conservative prime minister maintained a hard line against the PRC based on what he perceived as a poor human rights record. That position has softened over recent years. This seems to be part of a broader strategy aimed at transforming Canada, traditionally Atlanticist in its political leanings, into a leading actor in the Asia-Pacific. Specifically there is ample opportunity for Canada and China to enter into a symbiotic energy relationship. China of course desperately needs energy, and wants a diverse base of suppliers. Canada, in turn, is a major energy producer and exporter and would find a very willing customer in China.

Among the Western democracies, Canada has something of a history as a catalyst vis-à-vis the West’s relations with China. Canadian Prime Minister Pierre Trudeau was the first Western leader to open up to China, starting in 1970 when Canada officially recognized the government in Beijing as the legitimate government of the land (and the stage had been set for this by Trudeau’s predecessor, John Diefenbaker). Although Hugh Stevens of TransPacific Connections attributes Canada’s renewed interest in strengthening ties with China in part to following the lead of the U.S. “pivot” toward Asia, Canada has the potential to again be a leader and innovator in its own right. Canada’s own unthreatening position can only help.

While Canada’s relationship with China is largely based on trade and investment, military relations between Canada and China continue to develop apace, well beyond the conventional placement of military attachés at each country’s respective embassies in Beijing and Ottawa. In March 2012, then-Canadian Chief of Staff General Walter Natyncyk participated in a high-level visit to China and met with top brass from the People’s Liberation Army. In August 2013, Robert Nicholson, who had become Canada’s Minister of Defence only a month earlier, held talks with his Chinese counterpart Chang Wanquan on deepening Sino-Canadian military cooperation.

[…]

Canada has used its position to ease Asia-Pacific tensions in the past, for instance during the South China Sea Dialogues in the mid-1990s. James Manicom of the Centre for International Governance Innovation argues that the Track II-style of Canadian involvement in the 1990s may no longer be appropriate or effective given the rise in regional tensions. Nevertheless, as Canada’s military engagement with China increases, this still leaves the possibility of Canada playing a role in soothing regional tensions on an official level.

Ottawa has positive relations with the other states with territorial interests and disputes in the South China Sea. For instance, 49 percent of Indonesians say they have a positive view of Canada (and only 16 percent express a negative view). In line with its progressive stance toward China in the 1970s, Canada also recognized Vietnam diplomatically toward the end of the U.S.-led Vietnam War (whereas the U.S. only normalized relations with that country late in the administration of President Bill Clinton). Thus, Canada may be in a position to assist not only as a third node in a Canada-China-U.S. strategic triangle, but also to use its own diplomatic clout hand-in-hand with its growing military ties to China to work between China, the U.S. and U.S. partners in the region, many of whom have called for American assistance in counterbalancing China.

April 13, 2014

Ephemeral apps and the NSA

Filed under: Business, Media, Technology — Tags: , , — Nicholas @ 11:21

Bruce Schneier on the rising popularity of apps that only leave your content visible briefly and then automatically removes it:

Ephemeral messaging apps such as Snapchat, Wickr and Frankly, all of which advertise that your photo, message or update will only be accessible for a short period, are on the rise. Snapchat and Frankly, for example, claim they permanently delete messages, photos and videos after 10 seconds. After that, there’s no record.

This notion is especially popular with young people, and these apps are an antidote to sites such as Facebook where everything you post lasts forever unless you take it down—and taking it down is no guarantee that it isn’t still available.

These ephemeral apps are the first concerted push against the permanence of Internet conversation. We started losing ephemeral conversation when computers began to mediate our communications. Computers naturally produce conversation records, and that data was often saved and archived.

[…]

At best, the data is recorded, used, saved and then deliberately deleted. At worst, the ephemeral nature is faked. While the apps make the posts, texts or messages unavailable to users quickly, they probably don’t erase them off their systems immediately. They certainly don’t erase them from their backup tapes, if they end up there.

The companies offering these apps might very well analyze their content and make that information available to advertisers. We don’t know how much metadata is saved. In SnapChat, users can see the metadata even though they can’t see the content and what it’s used for. And if the government demanded copies of those conversations — either through a secret NSA demand or a more normal legal process involving an employer or school — the companies would have no choice but to hand them over.

Even worse, if the FBI or NSA demanded that American companies secretly store those conversations and not tell their users, breaking their promise of deletion, the companies would have no choice but to comply.

That last bit isn’t just paranoia.

Japan does not understand how it is perceived overseas

Filed under: Government, History, Japan — Tags: , , — Nicholas @ 11:02

In The Diplomat, Robert Dujarric explains some of the odd behaviour of some Japanese politicians in dealing with and talking about other nations:

… why are outsiders so worried about Japanese militarism?

First, there is the “sheep in wolf’s clothing” posture of the Abe Cabinet. In barely more than a year it has engaged in an endless stream of symbolic or verbal provocations: pilgrimages to Yasukuni, participation at Takeshima Day rites, Abe-appointed NHK governors denying wartime sexual slavery and the Nanjing Massacre, discussions about revisiting the Kono Statement, and a convoluted speech by Deputy Premier Taro Aso on learning from the Fuehrer.

Second, many Japanese politicians don’t know how the rest of the world thinks. A telling example was the prime minister giving a thumbs up from the cockpit of Japanese Air Self Defense jet with tail number 731. That prompted memories of Imperial Japanese Army Unit 731, which performed gruesome experiments on Chinese, other Asians, Russians and some Westerners (and whose leaders received a “get out of jail card” courtesy of the United States). Yet the premier either didn’t notice the markings or didn’t realize what the impact would be, and then failed to fire his entire advance team afterwards. The “731 photo-op” was not unique. Aso’s trip to Yasukuni just after attending the inauguration of President Park Geun-hye of South Korea was another.

Third, Japan has an excellent but minute corps of diplomats and bureaucrats who excel at interaction with foreigners. Beyond this, though, most of its officialdom, including many in the Foreign Ministry, have not received the necessary training to, as the American expression goes, “make friends and influence people” overseas. The root causes lie in the inward-looking education system. Unfortunately, the government is blind to the requirement to provide extensive multi-year “remedial education” to the graduates it hires to ensure they are capable of functioning in a non-Japanese setting.

Also, Japan’s is a “closed shop.” Most Japanese who grew up overseas or have a parent from another country end up working for foreign companies or governments. Those best suited for interacting between Japan and the world are lost to the Japanese state.

Fourth, most Japanese officials view outsiders who criticize the LDP as hostile to Japan as a nation, which is generally not true. During a recent session with a Japanese diplomat, I mentioned a Western journalist in Tokyo. This reporter, whom I would describe as an open-minded left-winger, is neither a supporter of historical revisionism nor of Koizumi-Takenaka economics. Anyone who cares to read his prose will also notice a deep empathy for the Japanese people, an outstanding knowledge of the country, and a passion for Japanese culture. My Japanese interlocutor, however, saw him as a foe.

Reason.tv – Glenn Reynolds on the Future of Higher Education

Filed under: Books, Economics, Education, Media — Tags: , — Nicholas @ 10:48

Published on 10 Apr 2014

“It’s kind of a weird thing that’s happened with American society — this idea that you have to have a college degree to be a respectable member of the middle class,” says Glenn Reynolds, professor of law at the University of Tennessee and purveyor of the popular Instapundit blog. Reynolds’ latest work, The New School: How the Information Age Will Save American Education From Itself, looks at the higher education bubble and how parents, students, and educators can remake the education system.

Reynolds sat down with Reason TV‘s Alexis Garcia to discuss why Americans are spending more for a college education and how students are responding to increasing tuition costs. “Given how expensive it is to go to college, there has to be a return sufficient to make it worth the time and especially the money,” Reynolds states. “You’re seeing declining enrollment in some schools and you’re seeing much more price resistance on the part of both parents and students.”

The discussion also includes Reynolds’ take on school choice, the upcoming elections, the current state of the blogosphere, and whether or not both political parties are necessary. Nearly a decade after Reynolds published An Army of Davids: How Markets and Technology Empower Ordinary People to Beat Big Media, Big Government, and Other Goliaths, the blogfather still remains optimistic about technology’s ability to empower the individual and inspire grassroots movements.

QotD: Politicians

Filed under: Humour, Politics, Quotations — Tags: , , — Nicholas @ 09:24

Being an MP is a vast subsidized ego-trip. It’s a job that needs no qualifications, it has no compulsory hours of work, no performance standards, and provides a warm room, a telephone and subsidized meals to a bunch of self-important windbags and busybodies who suddenly find people taking them seriously because they’ve go the letters ‘MP’ after the their name.

Jonathan Lynn, “Yes Minister Series: Quotes from the dialogue”, JonathanLynn.com

April 12, 2014

The Baaaa-studs 2009 – Extreme LED Sheep Art

Filed under: Britain, Humour, Technology — Tags: — Nicholas @ 15:38

Charles Stross solves the GOP’s 2016 candidate dilemma

Filed under: Humour, Politics, Russia, USA — Tags: , , — Nicholas @ 09:40

No really:

Now, it occurs to me that the Republican Party over in the USA have a bit of a problem coming up in 2016, namely who to run against Barack Obama’s successor. Whoever they are. (Hilary is looking a little old and Al’s cardboard has mildew.) But the RNC isn’t in good shape. They don’t have anybody out front with the charisma of the Gipper (dead or alive), or the good ole’ boy appeal of George W. Bush: just a bunch of old white guys in dark suits who’re obsessed with the size of their wallets and the contents of every woman’s uterus, or vice versa. Guys who make Karl Rove look like Johnny Depp.

And so it occurred to me (after my fifth pint of IPA) to spin my speculative political satire around the fact that there is only one man on the global political scene today who has what it takes to be a plausible Republican candidate for President Of The United States at the next presidential election.

This man:

Vladimir Putin riding a bear

Vladimir Vladimirovitch Putin.

Let me enumerate the ways in which this man makes sense as a candidate. He’s only 62 years old—not as youthful as Barack Obama, but still well within the age range for POTUS. He has proven experience of leading an aggressive, declining, former military superpower bristling with nuclear weapons and suffering from eating disorders and a tendency to binge on breakaway republics when nobody is looking. As a former KGB Colonel he understands the needs of the security state like no US president before him, except possibly George H. W. Bush (a former Director of the CIA); he’s exactly the right man to be in charge of the NSA, post-Snowden. As a Russian he clearly likes his tea, so he’ll go down well with that wing of the party. Nobody can accuse him of being soft on terrorism, or communism, or gay rights. Nobody can question his virile, macho manhood either, not with his state-run press agency circulating photographs of him bareback-riding a bear. He’s an instinctive authoritarian, a daddy figure, totally in love with god, guts, and guns — and if anyone says otherwise he’ll put powdered Polonium in their soup.

Oh, but it gets better…

QotD: Canada’s “small country” syndrome

Filed under: Cancon, Europe, France, Quotations — Tags: , , — Nicholas @ 09:23

It’s been a decade since Robert Fulford popularized the term: “The Longest Undefended Neurosis in the World.” It’s about as accurate a description of Canada-US relations as has ever been offered. The eagerness which, even at this late date, we lap up any mention of Canada on US media is oddly pathetic. This is the sort of behaviour typically seen in small bankrupt countries. Any mention of Portugal outside of Portugal is almost immediately reported on the state broadcaster. There is a strange cloying quality about such reports. A desperate yelling: “Hey we used to be important!”

It’s a small country thing. When a big country thinks this way you get French-style arrogance: “Hey we still are important, it’s that you lot aren’t clever enough to realize that blindingly obvious fact.”

Today Rob Ford is probably the most famous Canadian in history, save William Shatner. Neither men’s careers has done much to change international perceptions of Canada. We’re boring and probably polite. From time to time we kill seals and moose, though not necessarily in that order. As a general rule we avoid doing evil things. Short of carpet bombing a small country, which is well beyond our military capabilities, nothing we do will change these perceptions. We could annex Buffalo, something within our military capabilities, but I suspect most Americans would probably be grateful. They might throw in Rochester as a parting gift.

Richard Anderson, “Talking With Americans About Canadians”, The Gods of the Copybook Headings, 2014-04-10

Under-the-table money in college sports

Filed under: Football, Sports, USA — Tags: , , , , — Nicholas @ 08:58

As I’ve said before, I don’t follow US college football — which is why the pre-draft churn of names and teams in NFL coverage moves me very little — so my knowledge of how the NCAA organizes and manages team sports is pretty low. I do know that a lot of university student athletes are given scholarships with many nasty strings attached which force them into emphasizing the sport over their education. The scholarships are tied to team performance, so that what should be a great opportunity for a kid to earn a degree that otherwise would be out-of-reach effectively turns into four years of indentured servitude, followed by non-graduation. The students are also forbidden to earn money from activities related to their sport (signing autographs for a fee or selling an old game jersey can get you thrown out of school). Gregg Easterbrook regularly points out that some “powerhouse” football schools have terrible graduation rates for their students: the players are used up and discarded and nobody cares that they leave college no better off — and in many cases much worse-off — than when they started.

That’s one of the reasons I’m fascinated with the drive to introduce unions at the college level: even if the students don’t end up with a salary, they should at least be able to count on their scholarship to keep them attending class regardless of the whims of their coaches.

However, if the allegations in this story are true, the situation is even murkier than I’d been lead to believe:

The Bag Man excuses himself to make a call outside, on his “other phone,” to arrange delivery of $500 in cash to a visiting recruit. The player is rated No. 1 at his position nationally and on his way into town. We’re sitting in a popular restaurant near campus almost a week before National Signing Day, talking about how to arrange cash payments for amateur athletes.

“Nah, there’s no way we’re landing him, but you still have to do it,” he says. “It looks good. It’s good for down the road. Same reason my wife reads Yelp. These kids talk to each other. It’s a waste of money, but they’re doing the same thing to our guys right now in [rival school’s town]. Cost of business.”

Technically, this conversation never happened, because I won’t reveal this man’s name or the player’s, or even the town I visited. Accordingly, all the other conversations I had with different bag men representing different SEC programs over a two-month span surrounding National Signing Day didn’t happen either.

Even when I asked for and received proof — in this case a phone call I watched him make to a number I independently verified, then a meeting in which I witnessed cash handed to an active SEC football player — it’s just cash changing hands. When things are done correctly, there’s no proof more substantial than one man’s word over another. That allows for plausible deniability, which is good enough for the coaches, administrators, conference officials, and network executives. And the man I officially didn’t speak with was emphatic that no one really understands how often and how well it almost always works.

[…]

This is the arrangement in high-stakes college football, though of course not every player is paid for. Providing cash and benefits to players is not a scandal or a scheme, merely a function. And when you start listening to the stories, you understand the function can never be stopped.

“Last week I got a call. We’ve got this JUCO transfer that had just got here. And he’s country poor. The [graduate assistant] calls me and tells me he’s watching the AFC Championship Game alone in the lobby of the Union because he doesn’t have a TV. Says he never owned one. Now, you can buy a Walmart TV for $50. What kid in college doesn’t have a TV? So I don’t give him any money. I just go dig out in my garage and find one of those old Vizios from five years back and leave it for him at the desk. I don’t view what I do as a crime, and I don’t give a shit if someone else does, honestly.”

“If we could take a vote for these kids to make a real salary every season, I would vote for it. $40,000 or something. Goes back to mama, buys them a car, lets them go live like normal people after they work their asses off for us. But let’s be honest, that ain’t gonna stop all this. If everyone gets $40,000, someone would still be trying to give ’em 40 extra on the side.”

This is how you become a college football bag man.

Political religion

Filed under: Politics, Religion, USA — Tags: , , , — Nicholas @ 08:19

In the most recent Goldberg File “news”letter, Jonah Goldberg discusses what serves some non-religious groups as an effective religion-replacement:

… I read some reviews of Jody Bottum’s new book (which I’ve now ordered). In, An Anxious Age: The Post Protestant Ethic and the Spirit of America, Bottum argues that today’s liberal elites are the same liberal elites that we’ve always had. They come from the ranks of mainline Protestants that have run this country for generations (with some fellow-travelling Jews and Catholics, to be sure). But there’s a hitch. They champion a

    social gospel, without the gospel. For all of them, the sole proof of redemption is the holding of a proper sense of social ills. The only available confidence about their salvation, as something superadded to experience, is the self-esteem that comes with feeling they oppose the social evils of bigotry and power and the groupthink of the mob.

This strikes me as pretty close to exactly right. They’re still elitist moralizers but without the religious doctrine. In place of religious experience, they take their spiritual sustenance from self-satisfaction, often smug self-satisfaction.

One problem with most (but not all) political religions is that they tend to convince themselves that their one true faith is simply the Truth. Marxists believed in “scientific socialism” and all that jazz. Liberalism is still convinced that it is the sole legitimate worldview of the “reality-based community.”

There’s a second problem with political religions, though. When reality stops cooperating with the faith, someone must get the blame, and it can never be the faith itself. And this is where the hunt for heretics within and without begins.

Think about what connects so many of the controversies today: Mozilla’s defenestration of Brendan Eich, Brandeis’ disinviting of Ayaan Hirsi Ali, the IRS scandal, Hobby Lobby, Sisters of Mercy, the notion climate skeptics should be put in cages, the obsession with the Koch brothers, not to mention the metronomic succession of assclownery on college campuses. They’re all about either the hunting of heretics and dissidents or the desire to force adherence to the One True Faith.

It’s worth noting that the increase in these sorts of incidents is not necessarily a sign of liberalism’s strength. They’re arguably the result of a crisis of confidence.

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