Quotulatiousness

August 5, 2017

At least someone on the left is willing to find fault with Venezuela’s leadership

Filed under: Americas, Politics — Tags: , , — Nicholas @ 03:00

Of course, when I say “find fault”, I mean “criticize for not being even more horrible“:

Ken Livingstone, a former mayor of London, has blamed the turmoil in Venezuela on the unwillingness of the former president, Hugo Chávez, to execute “oligarchs” after he came to power.

Livingstone, who is suspended from the Labour party, also blamed the economic crisis in the country on the government’s failure to take his advice on investment in infrastructure, which he said would have reduced the Latin American state’s dependence on oil.

The former mayor, a longtime supporter of the late president Chávez and his successor Nicolás Maduro, said the socialist leader’s enemies wanted to restore their power.

“One of the things that Chávez did when he came to power, he didn’t kill all the oligarchs. There was about 200 families who controlled about 80% of the wealth in Venezuela,” Livingstone told Talk Radio.

“He allowed them to live, to carry on. I suspect a lot of them are using their power and control over imports and exports to make it difficult and to undermine Maduro.” When pressed, Livingstone said he was “not in favour of killing anyone”.

Livingstone visited Venezuela during his time in office as mayor of London, striking a cut-price oil deal with Maduro to supply Transport for London. The Labour leader, Jeremy Corbyn, has also regularly expressed his admiration for Chávez, saying in 2013 he was “an inspiration to all of us fighting back against austerity and neoliberal economics in Europe”.

What are binary numbers? – James May’s Q&A (Ep 11100) – Head Squeeze

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

Published on 5 Jul 2013

James May asks “What are binary numbers, and why does my computer need them?

Watch James getting confused here: http://youtu.be/8Kjf5x-1-_s

Binary: http://mathworld.wolfram.com/Binary.html

Counting in base 10: http://mae.ucdavis.edu/dsouza/Classes/ECS15-W13/counting.pdf

QotD: Harley-Davidson bikes

Filed under: Humour, Quotations — Tags: , — Nicholas @ 01:00

One thing I resent about motorcycles, especially Harleys, is that they make the heavens tremble as if before the approach of a God. But the “god” in question sometimes turns out to be a greasy, 50 year old, biker with a prison record, a meth problem and a history of wife abuse. Unless of course he is one of those boomer executives who have taken to riding Harleys, in which case you can scratch the meth problem.

Grant at This Blog Sits…

Originally posted to the old blog, 2004-09-14.

August 4, 2017

Harry Potter and the Economic Segregation of Muggles

Filed under: Books, Economics, Liberty, Media — Tags: , , , — Nicholas @ 06:00

Published on 3 Aug 2017

Harry Potter contains a ton of incredible lessons about society, authoritarianism, and the power of love and individualism in the face of people who would exclude others based on group identity. But something people don’t think about as much are some of the economic lessons that we can draw from a world segregated into wizards and muggles.

On this episode of Out of Frame, we take a look at what the world might look like if magic and non-magic people were actually allowed to trade and interact with each other without the Ministry of Magic obliviating and arresting people for it.

For a transcript of this episode and more engaging content, visit:
www.FEE.org

The recent machine gun purchase is a great example of how broken our defence procurement system

Filed under: Cancon, Military, Weapons — Tags: , , , , — Nicholas @ 05:00

About a week ago, the Department of National Defence announced they were purchasing some new machine guns for the Canadian Army. The new weapon is an improved version of the C6 General Purpose Machine Gun (GPMG) currently in service. The Ottawa Citizen gave the basic information on the deal in this article:

Canadian C6 GPMG. (DND photo)

The Canadian government will purchase 1148 new C6A1 FLEX General Purpose Machine Guns from Colt Canada, Defence Minister Harjit Sajjan announced Wednesday.

The current C6 machine guns were procured over 30 years ago. Some have been removed from service due to wear and tear and others are reaching the end of their service life, according to the Canadian military.

The new C6A1 FLEX (flexible) is designed to be carried by soldiers or attached to vehicles such as the new Tactical Armoured Patrol Vehicle. The new machine gun will feature a durable polymer butt stock instead of the current wooden style, according to the Canadian Forces. Additionally, soldiers will be able to attach pointing devices and optical sighting systems to the new weapon to help increase their operational effectiveness.

Sounds good, right? Not so fast:

On the face of it this is a good news story. The C6, a 7.62-mm is a fully-automatic, air-cooled, gas- and spring-operated medium machine gun that is well liked by the troops of the many western nations which use some version of this weapon. Based on the Fabrique Nationale (FN) MAG it has been used by more than 80 countries, and is made under licence in several countries, most notably the USA where it is known as the M240. It is many ways the standard machine gun, used by all our allies.

A closer look suggests that this announcement reveals everything that is wrong with Canadian defence procurement.

For our $32.1 million we get 1148 new C6A1 machine guns (with cleaning and repair kits, spare parts and carrying slings), 13 jobs which it seems reasonable to assume are for the length of the contract, i.e. two years, and a production line including engineering validation and certifications. Or perhaps more accurately, Colt Canada gets a production line at the Colt Canada plant.

Even if we accept that the implied a cost of nearly $28,000 per weapon should be informed by the fact that about one-quarter of the contract cost goes toward setting up a production line it still means that each weapon is costing almost $21,000 each.

The price of the equivalent US weapon, the M240, is somewhere between $6,600 US and $9,200 US depending on which model is being purchased. This means that, at current exchange rates, if we were to purchase the weapons from FN’s U.S.plant they would cost us about $10,000 each, in Canadian dollars. This in turn suggests that we would save at least $12,628,000. If you assume that in this case we don’t have to buy Colt Canada a new production line it works out to a savings of almost $20 million dollars.

This is the real cost of those 13 jobs for 2 years, over $750,000 for each job per year.

One would think that jobs that cost taxpayers $750,000 per year would raise questions.

Questions like; do we need to make our own machine guns, especially when we consider that they are almost universally available from a number of our allies and that we have the proven ability to maintain them ourselves?

So, it’s not just that we can’t buy ships or fighter aircraft at a competitive price — because our politicians are addicted to using military spending for partisan purposes — we can’t even buy a slight variant on a bog-standard infantry support weapon without paying through the nose.

H/T to MILNEWS.ca for the link (perhaps we should consider changing that standard section heading from “What’s Canada Buying?” to “What’s Canada subsidizing in the form of procurement?” or “What’s Canada being robbed blind over now?”)

The Battle of Passchendaele – Mutiny in the German Navy I THE GREAT WAR Week 158

Filed under: Britain, Europe, Germany, History, Military, WW1 — Tags: , , — Nicholas @ 04:00

Published on 3 Aug 2017

Douglas Haig had been busy since the Battle of Arras came to an end. He amassed huge artillery concentration, got his hands on the new British Mark IV tanks and had a cunning plan that even involved a naval landing along the Belgian coast. And the opening of the battle was definitely more promising than the Battle of the Somme one year earlier. In Germany, a small naval mutiny is put down at the same time.

G.J. Meyer – A World Undone: http://bit.ly/WorldUndoneWW1

Short memories and willing self-deception over Venezuela

Filed under: Americas, Economics, Media, Politics — Tags: , , , , , — Nicholas @ 03:00

In the Los Angeles Times, James Kirchick took the pundits to task for their adulation of Venezuela’s government as it plunged deliberately into a humanitarian disaster:

Shaded relief map of Venezuela, 1993 (via Wikimedia)

On Sunday, Venezuelan President Nicolas Maduro claimed victory in a referendum designed to rewrite the country’s constitution and confer on him dictatorial powers. The sham vote, boycotted by the opposition, was but the latest stage in the “Bolivarian Revolution” launched by Maduro’s predecessor, the late Hugo Chavez. First elected in 1998 on a wave of popular goodwill, Chavez’s legacy is one of utter devastation.

Thanks to Chavismo’s vast social welfare schemes (initially buoyed by high oil prices), cronyism and corruption, a country that once boasted massive budget surpluses is today the world’s most indebted. Contraction in per capita GDP is so severe that “Venezuela’s economic catastrophe dwarfs any in the history of the U.S., Western Europe or the rest of Latin America” according to Ricardo Hausmann, former chief economist of the Inter-American Development Bank. Transparency International lists Venezuela as the only country in the Americas among the world’s 10 most corrupt.

Socialist economic policies — price controls, factory nationalizations, government takeovers of food distribution and the like — have real human costs. Eighty percent of Venezuelan bakeries don’t have flour. Eleven percent of children under 5 are malnourished, infant mortality has increased by 30% and maternal mortality is up 66%. The Maduro regime has met protests against its misrule with violence. More than 100 people have died in anti-government demonstrations and thousands have been arrested. Loyal police officers are rewarded with rolls of toilet paper.

The list of Western leftists who once sang the Venezuelan government’s praises is long, and Naomi Klein figures near the top.

In 2004, she signed a petition headlined, “We would vote for Hugo Chavez.” Three years later, she lauded Venezuela as a place where “citizens had renewed their faith in the power of democracy to improve their lives.” In her 2007 book, The Shock Doctrine, she portrayed capitalism as a sort of global conspiracy that instigates financial crises and exploits poor countries in the wake of natural disasters. But Klein declared that Venezuela had been rendered immune to the “shocks” administered by free market fundamentalists thanks to Chavez’s “21st Century Socialism,” which had created “a zone of relative economic calm and predictability.”

Chavez’s untimely death from cancer in 2013 saw an outpouring of grief from the global left. The caudillo “demonstrated that it is possible to resist the neo-liberal dogma that holds sway over much of humanity,” wrote British journalist Owen Jones. “I mourn a great hero to the majority of his people,” said Oliver Stone, who would go on to replace Chavez with Vladimir Putin as the object of his twisted affection.

Experimental Lightweight Browning High Power

Filed under: Britain, Cancon, History, Military, USA, Weapons — Tags: , , , — Nicholas @ 02:00

Published on 3 May 2017

One of the handguns that resulted from the post-WW2 interest in standardizing arms among the future members of NATO was a lightweight version of the Canadian produced Browning High Power. Experiments began in 1947 to create first a lightened slide by milling out unnecessary material, and then additionally with the use of machined and cast aluminum alloy frames. The first major batch of guns consisted of six with milled alloy frames, with two each going to the Canadian, American, and British militaries for testing.

This would reveal that the guns were in general quite serviceable, except that the locking blocks tended to distort their mounting holes in the alloy frames under extended firing. The cast frames were generally unsuccessful, suffering from substantial durability problems. The program was cancelled in 1951 by the Canadian military, and the last United States interest was in 1952. The example in today’s video is one of the two milled frame guns sent to the US for testing.

QotD: Shakespeare’s sonnets

Filed under: Books, Britain, History, Quotations — Tags: , , — Nicholas @ 01:00

The Sonnets were published late in Shakespeare’s career (1609) — by a clever and unscrupulous man. His name was Thomas Thorpe. He ran what was for the times a unique publishing business, playing games with “copyright” that were often unconscionable but, usually, this side of the law. He owned neither a printing press, nor a bookstall — two things that defined contemporary booksellers — subcontracting everything in his slippery way. Indeed, I would go beyond other observers, and describe him as a blackguard; and I think Will Shakespeare would agree with me. Though Shakespeare would add, “A witty and diverting blackguard.”

He collected these sonnets, quite certainly by Shakespeare, but written at much different times and for quite various occasions, from whatever well-oiled sources. Thorpe had a fine poetic ear, and knew what he was doing. He arranged the collection he’d amassed in the sequence we have inherited — 154 sonnets that seem to read consecutively, with “A Lover’s Complaint” tacked on as their envoi — then sold them as if this had been the author’s intention.

We have sonnets not later than 1591, interspersed with others 1607 or later. In one case (Sonnet 145), we have what I think is a love poem Shakespeare wrote about age eighteen, to a girl he was wooing: one Anne Hathaway. (She was twenty-seven.) It is crawling with puns, for instance on her name, and stylistically naïve, but has been placed within the “Dark Lady” sonnets (127 to 152) in a mildly plausible way. It hardly belongs there.

Indeed, once one sees this it becomes apparent, surveying the whole course, that there is rather more than one “Dark Lady” in the Sonnets, and that like most red-blooded men, our Will noticed quite a number of interesting women over his years. But Thorpe has folded them all into one for dramatic effect.

David Warren, “Dark gentleman of the Sonnets”, Essays in Idleness, 2015-05-11.

August 3, 2017

I’d name this Ontario county, but apparently it’s been trademarked so others couldn’t “tarnish” the name

Filed under: Cancon, Government, Law — Tags: , , , — Nicholas @ 09:57

Trademarks. Is there nothing they can’t make worse?

It’s stunning how often trademarks that never should have been granted get granted — leading to all sorts of bad outcomes. One area that sees far too many bad trademarks involves trademarking geographic areas, with the holder of the mark often then trying to lock out local businesses from using the name of the locations in which they reside. If ever there were a trademark type that everyone ought to agree should be rejected, it’s one based purely on geography.

Entirely too many of these slip through. For example, one Canadian man managed to get a trademark on the name of the county in which he resides, with the stated aim not of using it in commerce, but rather protecting that name’s reputation.

    Michael Stinson caused a stir among government officials in Haliburton County last week when they learned he had successfully trademarked the name Haliburton. Stinson says he never intended to deceive or harm anyone, and explains that he trademarked the name so others couldn’t “tarnish” the name of the community.

Now, the Canadian government’s site is pretty clear in stating that this sort of geographic trademark is flatly not allowed, but somehow Stinson got it through anyway. Way to go, Ministry of Innovation, Science and Economic Development. As for Stinson, his claim for why he applied for the trademark is neither the purpose of trademarks generally nor is it apparently the actual reason why he got this specific trademark.

    Haliburton County’s chief administrative officer, Mike Rutter, says he’s not sure how the trademark could have been allowed. Rutter says he first became aware of the issue when the county’s chamber of commerce started receiving complaints.

    “We received a call from our local chamber of commerce that Mr. Stinson was attending businesses and advising people that they would owe him money if they were using the name Haliburton,” Rutter says.

If true, this would seem to me that Stinson is a bully, attempting to extort local businesses with a trademark that never should have been approved by the Canadian government. This is the damage that can be done by trademark offices not following their own damned rules and not adhering to the purpose of trademark laws to begin with. Stinson appears to be rather slimy, but it’s worth focusing on the fact that he couldn’t be doing any of this is had the Canadian trademark office bothered to do its damned job.

Words & Numbers: Is UBI Better Than Welfare?

Filed under: Economics, Government — Tags: , , , , — Nicholas @ 03:00

Published on 2 Aug 2017

A viewer recently asked us what Words & Numbers thought of Universal Basic Income.

Antony Davies likes the idea of it, provided it’s done well, but doesn’t think it could ever possibly be done well. But what about a theoretical UBI? If we could actually figure out how to implement that well, would that work? And why wouldn’t that work in the real world? This week on Words and Numbers, Antony and James R. Harrigan tackle the issue that’s getting a lot of attention in Silicon Valley.

Not the Nine O’Clock News – Monty Python worshipers

Filed under: Britain, Humour, Religion — Tags: , , , , — Nicholas @ 02:00

Published on 21 Jan 2009

A sketch from the british series Not the nine o’clock news commenting on the controversy created by the Monty Python’s film – Life of Brian.

QotD: Improved quality of life doesn’t always show up in GDP figures

Filed under: Business, Economics, Quotations, Technology — Tags: , , , , — Nicholas @ 01:00

We economists marvel, too, but we also wonder how free apps fit into GDP. They do have their long-run downside, as we forget how to read maps and plot routes ourselves. (Anybody out there remember how to work a slide rule? No? That’s not a loss for computation but it does mean lower average numeracy.) But in the short run they save billions of hours in wrong turns not taken and trillions of cells of stomach lining no longer eaten up by travel anxiety. Not to mention their entertainment value.

But hardly any of that very big upside shows up in GDP. In one respect, in fact, GDP goes down. I used to buy maps, including travel atlases. I’m unlikely to do that anymore. Maps purchased by consumers are a “final good or service” and thus do enter into GDP. Maps I interact with online but don’t pay for aren’t GDP. So well-being has gone up — a lot — as a result of Google Maps. But GDP may well have gone down.

In fact, apps do produce some GDP. Google sustains itself in part by selling ads, including to retailers and restaurants looking to pay for prominent mention on its map display. Its ad revenue is an intermediate input into GDP. Many of the entities buying Google ads are in the business of selling “final goods or services” and if they’re money-making, the prices of their goods have to cover the cost of their ads. So by that circuitous route the “value” of the apps does end up in GDP.

But what’s the relationship between what advertisers pay for my eyeballs and the value of the app to me? The two are not completely unrelated. The more I use the app the more I’m likely to buy the advertised products, presumably. But in practice, the probability of my buying is pretty small while my benefit from the app is pretty big. How strange that miracle apps can change our lives but not our GDP.

William Watson, “How using Google Maps on your summer road trip messes with the GDP”, Financial Post, 2017-07-18.

August 2, 2017

Ontario has scared off foreign home-buyers, but bureaucratic delays still make housing more expensive

Filed under: Bureaucracy, Business, Cancon, Economics — Tags: , , , , — Nicholas @ 04:00

Josef Filipowicz and Steve Lafleur explain why Ontario’s recent crack-down on foreign home-buyers in the Greater Toronto Area still leaves one of the biggest barriers to affordable housing untouched:

The Ontario Legislature in Queen’s Park, Toronto. (via Wikimedia)

According to a recent announcement from Queen’s Park, 4.7 per cent of properties purchased in Ontario’s Greater Golden Horseshoe (between April 24 and May 26) were acquired by foreign individuals or corporations. This in the wake of the raft of measures announced in April including a 15 per cent “Non-Resident Speculation Tax” ostensibly aimed at improving housing affordability.

It’s difficult to say how this portion of the housing market — foreign buyers — ultimately impacts the cost of buying or renting in Canada’s biggest urban region, and it’s far too soon to estimate the effects of the myriad of policy changes the Ontario government is introducing. But what we do know is that the laws of supply and demand apply to housing, and it’s hard to believe that a small percentage of buyers are responsible for the massive appreciation of housing prices in the GTA over the past decade. Rather than focus on a small tranche of buyers, we should focus on ensuring that regulations don’t prevent the supply of new housing from meeting demand.

[…]

So what’s preventing cities in the Greater Golden Horseshoe from issuing more building permits?

In short, red tape at city hall. Between 2014 and 2016, Fraser Institute researchers surveyed hundreds of homebuilders across Canada to better understand how government regulation affects their ability to obtain permits. In the Greater Golden Horseshoe, it typically takes one-and-a-half years to obtain a permit in this region, and per-unit costs to comply with regulation amount to almost $50,000. Approval timelines can also be affected by the need to rezone property. Approximately two-thirds of new homes in the region require this procedure, which adds 4.3 months (on average) before builders can obtain permits.

Another deterrent to more supply is local opposition to new homes. Survey results show that council and community groups in Toronto, King Township and Oakville are more likely to resist the addition of new units in their neighbourhoods, effectively preventing newcomers from moving in.

Update, 3 August: Mission accomplished. Toronto home sales plummeted 40 percent in July.

Some troubling early signs from Finland’s UBI experiment

Filed under: Economics, Europe, Government — Tags: , , , — Nicholas @ 03:00

Dan Mitchell says we can’t draw definite conclusions from these early (anecdotal) points, but that it may point toward UBI (universal basic income) not being the panacea it’s been touted to be:

Map of Finland (Suomen kartta) by Oona Räisänen. Boundaries, rivers, roads, and railroads are based on a 1996 CIA map, with revisions. (via Wikimedia)

The New York Times published an in-depth preview of Finland’s experiment late last year. Here’s a description of the problem that Finnish policymakers want to solve.

    … this city has…thousands of skilled engineers in need of work. Many were laid off by Nokia… While entrepreneurs are eager to put these people to work, the rules of Finland’s generous social safety net effectively discourage this. Jobless people generally cannot earn additional income while collecting unemployment benefits or they risk losing that assistance. For laid-off workers from Nokia, simply collecting a guaranteed unemployment check often presents a better financial proposition than taking a leap with a start-up.

For anyone who has studied the impact of redistribution programs on incentives to work, this hardly comes as a surprise.

Indeed, the story has both data and anecdotes to illustrate how the Finnish welfare state is subsidizing idleness.

    In the five years after suffering a job loss, a Finnish family of four that is eligible for housing assistance receives average benefits equal to 73 percent of previous wages, according to data from the Organization for Economic Cooperation and Development. That is nearly triple the level in the United States. … the social safety net … appears to be impeding the reinvigoration of the economy by discouraging unemployed people from working part time. … Mr. Saloranta has his eyes on a former Nokia employee who is masterly at developing prototypes. He only needs him part time. He could pay 2,000 euros a month (about $2,090). Yet this potential hire is bringing home more than that via his unemployment benefits. “It’s more profitable for him to just wait at home for some ideal job,” Mr. Saloranta complains.

So the Finnish government wants to see if a basic income can solve this problem.

    … the Finnish government is exploring how to change that calculus, initiating an experiment in a form of social welfare: universal basic income. Early next year, the government plans to randomly select roughly 2,000 unemployed people — from white-collar coders to blue-collar construction workers. It will give them benefits automatically, absent bureaucratic hassle and minus penalties for amassing extra income. The government is eager to see what happens next. Will more people pursue jobs or start businesses? How many will stop working and squander their money on vodka? Will those liberated from the time-sucking entanglements of the unemployment system use their freedom to gain education, setting themselves up for promising new careers? … The answers — to be determined over a two-year trial — could shape social welfare policy far beyond Nordic terrain.

The results from this experiment will help answer some big questions.

    … basic income confronts fundamental disagreements about human reality. If people are released from fears that — absent work — they risk finding themselves sleeping outdoors, will they devolve into freeloaders? “Some people think basic income will solve every problem under the sun, and some people think it’s from the hand of Satan and will destroy our work ethic,” says Olli Kangas, who oversees research at Kela, a Finnish government agency that administers many social welfare programs. “I’m hoping we can create some knowledge on this issue.” … Finland’s concerns are pragmatic. The government has no interest in freeing wage earners to write poetry. It is eager to generate more jobs.

As I noted above, this New York Times report was from late last year. It was a preview of Finland’s experiment.

[…]

Maybe I’m reading between the lines, but it sounds like they are worried that the results ultimately will show that a basic income discourages labor supply.

Which reinforces my concerns about the entire concept.

Yes, the current system is bad for both poor people and taxpayers. But why would anyone think that we’ll get better results if we give generous handouts to everyone?

So if we replace all those handouts with one big universal handout, is there any reason to expect that somehow people will be more likely to find jobs and contribute to the economy?

Again, we need to wait another year or two before we have comprehensive data from Finland. But I’m skeptical that we’ll get a favorable outcome.

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