Published on 3 Aug 2015
It’s time for the chair of wisdom again. This time Indy answers to particular questions – which took us a bit to research – about the Boy Scouts during World War 1 and the many theories about the sinking of the Lusitania and wether it was carrying ammunitions or not.
August 4, 2015
Boy Scouts during WW1 And The Lusitania Sinking Myths I OUT OF THE TRENCHES
Comments Off on Boy Scouts during WW1 And The Lusitania Sinking Myths I OUT OF THE TRENCHES
Alex Tabarrok explains the “Happy Meal fallacy”
Another post from last month that I’m just getting around to linking:
Some restaurants offer burgers without fries and a drink. These restaurants cater to low-income people who enjoy fries and drinks but can’t always afford them. To rectify this sad situation a presidential candidate proposes The Happy Meal Act. Under the Act, burgers must be sold with fries and a drink. “Burgers by themselves are not a complete, nutritious meal,” the politician argues, concluding with the uplifting campaign slogan, “Everyone deserves a Happy Meal!”
But will the Happy Meal Act make people happy? If burgers must come with fries and a drink, restaurants will increase the price of a “burger.” Even though everyone likes fries and a drink they may not like the added benefits by as much as the increase in the price of the meal. Indeed, this must the case since consumers could have bought the meal before the Act but chose not to. Requiring firms to sell benefits that customers value less than their cost makes both firms and customers worse off.
The Happy Meal Fallacy is fairly obvious when it comes to happy meals but now let’s consider the debate over the gig economy and the hiring of employees versus contractors. Employees are entitled to benefits that contractors are not. Thus the standard conclusion is that classifying workers as contractors “is great for employers but potentially terrible for workers.” Wrong. Employees get their wages with fries and a drink while contractors get wages only. Would a law requiring firms to provide all workers with fries and a drink help workers?
If firms are required to provide benefits to contractors they will lower the contractor wage. But how do we know the extra benefits aren’t worth the reduction in wages? If the extra benefits were worth more to workers than they cost firms, firms would have eagerly provided these benefits as a way of increasing profits. Firms can profit whenever buyers are willing to pay more for a product than its cost. Benefits are a product that workers buy from firms.
Comments Off on Alex Tabarrok explains the “Happy Meal fallacy”
Tallahassee does the right thing about its red light camera system
Last month, Randall Holcombe reported on a sensible decision by the Tallahassee, Florida city government when it was discovered that its red light camera program had achieved the stated goal:
Five years ago my hometown of Tallahassee, Florida contracted with Xerox to set up 19 red light cameras at seven busy intersections in town. The contract had the city pay Xerox about $87,000 a month to operate the cameras, and charged drivers a fine of $142 for being caught on camera running a red light.
When the program was established, city officials claimed that the cameras were installed for safety reasons, to deter drivers from running red lights, not to raise revenue. If we take them at their word, the program worked. Red light violations have fallen more than 90% since the program began. The program has been so successful that the city is not taking in sufficient revenues from fining violators to pay Xerox the fees for operating them.
You can guess the ending of this story. The city has announced that when the contract with Xerox expires in August, it will not be renewed and the red light camera program will end. Here is a program that has been a huge success by the city’s stated criterion, so the city is terminating it.
I see two possible explanations for this. One is that governments tend to terminate successful programs and continue the unsuccessful ones. The other is that the city officials who originally stated that the motivation for installing the cameras was to deter red light violations, and not the revenue generated from fines, were lying. I’m not ruling out the possibility that both explanations are correct.
Other municipalities presented with the same set of facts went in another direction: reducing the amber light time to increase the number of cars that could be caught on camera violating the law. That this had nothing to do with increasing public safety on the roads — in fact, probably increased the danger around traffic lights in the case of drivers braking suddenly to avoid entering the intersection as soon as the light turned yellow — but it did do a fine job of increasing the fines that could be collected (who cares about the safety of drivers and pedestrians when municipal revenue is at stake?).
Comments Off on Tallahassee does the right thing about its red light camera system
Byzantine Empire: Justinian and Theodora – II: The Reforms of Justinian – Extra History
Published on 27 Jun 2015
Justinian wanted to restore the glory of Rome, but many obstacles stood in his way. He brought on talented advisors to help him reform the tax system, the law code, and the military might of the empire. With them he made great strides, but these advisors had very human flaws. His tax collector, John the Cappadocian, centralized tax collection and crushed corruption in his agents, greatly increasing the revenue to the empire – but he also skimmed money off the top to feed his private corruption. Meanwhile, a lawyer named Tribonian took centuries of confusing and even conflicting legal precedents and resolved them into a single code, the Corpus Juris Civilis, which remains the foundation of modern law today. He even made a textbook for students to learn from. But he was also a practicing pagan during an era when Justinian was trying to crack down on pagan rituals. And last, Justinian’s chief military commander Belisarius helped the Empire recover its military glory. He defeated the Sassanid Persians in the Battle of Dara, crushing a force of 50,000 men with only 25,000 of his own through clever strategy: he dug a trench to halt their infantry’s advance, then baited the Persian cavalry into overextending and sprang a surprise attack on them with Hun mercenaries. Although Belisarius seems to have been an upstanding person, his personal historian Procopius tainted even his clean record. Procopius wrote glowing official histories of the reign of Justinian, but his long lost secret history depicted Justinian as a literal headless demon and Theodora as a debauched monster.
Comments Off on Byzantine Empire: Justinian and Theodora – II: The Reforms of Justinian – Extra History
QotD: The Truth-Seeker
The man who boasts that he habitually tells the truth is simply a man with no respect for it. It is not a thing to be thrown about loosely, like small change; it is something to be cherished and hoarded, and disbursed only when absolutely necessary. The smallest atom of truth represents some man’s bitter toil and agony; for every ponderable chunk of it there is a brave truth-seeker’s grave upon some lonely ash-dump and a soul roasting in hell.
H.L. Mencken, “Types of Men 10: The Truth-Seeker”, Prejudices, Third Series, 1922.
Comments Off on QotD: The Truth-Seeker
