Quotulatiousness

March 18, 2012

Reason.tv: Why The Future Is Better Than You Think

Filed under: Economics, Health, History, Liberty, Technology — Tags: , , — Nicholas @ 14:06

The ever-expanding role for women in the military

Filed under: Bureaucracy, Economics, Education, History, Military, Technology — Tags: , , , , — Nicholas @ 11:22

An interesting article at Strategy Page:

The growing number of women in the military is largely driven by the need for people with scarce skills. Since most (over 80 percent) of military jobs have little, or nothing, to do with combat, if you can’t find enough qualified men, you can recruit women. This is especially true in the West, where females tend to be better educated than males. Thus women comprise about ten percent of the troops in Western armed forces. In the United States this is 15 percent for active duty troops, and 18 percent for the reserves. Civilian contractors, who are taking back some of the military jobs they performed for thousands of years, have an even higher percentage of females.

All this reflects growing female participation in the post-agricultural economy. We tend to forget that as recently as the 19th century, 90 percent of humanity were engaged in agriculture. It had been that way for thousands of years. With industrialization, women began to stay at home with the kids, and no longer work the same jobs (as they did in agriculture) with their husbands. But in the last sixty years, women have returned to their traditional place in the economy.

[. . .]

This current trend in using women and contractors are actually a return to the past, when many of the “non-combat” troops were civilians. Another problem is the shrinking proportion of troops who actually fight. A century ago, most armies comprised over 80 percent fighters and the rest “camp followers (support troops) in uniform.” Today the ratio is reversed, and therein resides a major problem. Way back in the day, the support troops were called “camp followers,” and they took care of supply, support, medical care, maintenance and “entertainment” (that’s where the term “camp follower” got a bad name). The majority of these people were men, and some of them were armed, mainly for defending the camp if the combat troops got beat real bad and needed somewhere to retreat to.

[. . .]

One of the great revolutions in military operations in this century has been in the enormous increase in support troops. This came after a sharp drop in the proportion of camp followers in the 18th and 19th centuries. Before that it was common for an army on the march to consist of 10-20 percent soldiers and the rest camp followers. There was a reason for this. Armies “in the field” were camping out and living rough could be unhealthy and arduous if you didn’t have a lot of servants along to take care of the camping equipment and help out with the chores. Generals usually had to allow a lot of camp followers in order to get the soldiers to go along with the idea of campaigning.

Only the most disciplined armies could do away with all those camp followers and get the troops to do their own housekeeping. The Romans had such an army, with less than half the “troops” being camp followers. But the Romans system was not re-invented until the 18th century, when many European armies trained their troops to do their own chores in the field, just as the Romans had. In the 19th century, steamships and railroads came along and made supplying the troops even less labor intensive, and more dependent on civilian support “troops.” The widespread introduction of conscription in the 19th century also made it possible to get your “camp followers” cheap by drafting them and putting them in uniform.

Measuring the effectiveness of your charity organization by how they allocate their spending

Filed under: Bureaucracy, Economics — Tags: , — Nicholas @ 11:06

Tim Harford’s weekend magazine column:

You’re a generous person, I can tell. But how much do you think about the effectiveness of your charitable donations? One handy way to size up a charity is to pay attention to how much money it spends on overheads such as administration and fundraising, rather than frontline do-gooding. There’s only one small problem: this ready reckoner is enormously misleading.

For people who think about the effectiveness of charities, this insight is not news. Givewell, a charity that evaluates the effectiveness of other charities, complained five years ago about the “pervasive attitude that nonprofits need to get all their money right to the needy, and do all their administration on the cheap”. Dean Karlan, an economics professor and co-author of More Than Good Intentions, analysed Givewell’s recommendations and found that outstanding charities tended to spend more money, not less, on administration and fundraising.

Caroline Fiennes, author of a new book, It Ain’t What You Give, It’s The Way That You Give It, explains that fundraising costs tend to be determined by donors — who can generous or stingy, ignorant of the cause or conscious of it. Meanwhile, administration costs could include efficient logistics, accounting or purchasing systems — plus paying for rigorous evaluation.

March 17, 2012

P.J. O’Rourke on the Cato-Koch shootout

Filed under: Economics, Liberty, Politics, USA — Tags: , , — Nicholas @ 11:59

His latest column is on the infighting over control of the libertarian Cato Institute:

The Koch brothers’ motive seems clear, to the extent there’s clarity in human motivation. They want to rid the Oval Office of a pest and Congress of the pestilence’s plague-carriers. In their battle against statist disease, the Kochs seem to regard Cato’s individualism as too individualistic. They want a more collective effort to cure collectivism.

Current Cato board chairman Bob Levy met with David Koch and some of Koch’s political advisers last November. According to Levy, “They said that a principal goal was to defeat Barack Obama. The way David put it was, ‘We would like you to provide intellectual ammunition that we can then use at Americans for Prosperity and our allied organizations.’ AFP and others would apply Cato’s work to advance their electoral goals.”

Of course, if David Koch had bothered to read the Cato trove of books, articles, policy analysis, and research on the Obama administration’s bunk and boners, he would have found six-shooter ammunition enough to burst through the swinging doors of the Electoral Goals Saloon and make every sarsaparilla-drinking tenderfoot in the Democratic party dance.

[. . .]

And Cato couldn’t be involved in partisan politics. Everyone there is a libertarian. You might as well command your cat to bring you your pajamas as tell a bunch of libertarians to get on the same political platform. I know these people. Ron Paul is a bien-pensant by comparison. Cato scholars prize contentious thought. Get in a debate with one and you’ll find out he doesn’t even agree with himself.

[. . .]

It can be said, with some justice, that libertarians apply only one measure to every issue. But what a sublime yardstick it is. Libertarians ask, about each thing they encounter in public life, “Does this promote the liberty, responsibility, and dignity of the individual?” Libertarianism can have political implications, but politics is, by definition, mass action. And libertarians don’t believe in the masses. They believe in the individuals huddled in those masses. A pure libertarian is opposed to politics down to the soles of his shoes (or, libertarians being libertarians, down to the bottom of his sandals worn with socks). Libertarianism is contra-political, an emetic dose to be given to politics. As we’ve seen lately, all politics needs one sometimes.

H/T to Walter Olson for the link.

March 16, 2012

Copyright MathTM

Filed under: Economics, Media, Technology — Tags: , , , — Nicholas @ 13:38

Now remember kids: always buy your movies and other entertainment items legally. You’ll get this kind of experience:

And here’s the reason you pay for a legal copy, rather than being one of those evil pirates:

Update, 21 March: The actual numbers — “by an actual Copyright Mathematician” — behind the Copyright MathTM video.

One symptom, but lots of different causes

Filed under: Britain, Economics, History, India — Tags: , , , , — Nicholas @ 08:41

Tim Worstall responds to a simplistic definition of poverty:

What we then want to know is why do some individuals have a shortage of money? At which point we enter a forest of different explanations.

By far the largest cause of poverty is that people live in societies ruled by people variously ignorant, stupid or evil. N Korean poverty I would ascribe to that last. The early Soviets, I am sure along with Socialists of the time, really did think that planning would be more efficient, create more wealth. The evil came later, it was ignorance at first.

[. . .]

And, yes, really, there is also that culture of poverty that Ms. Ehrenreich wants to insist does not exist. Choices over drugs, booze, delayed gratification, marriage, children, education, all have their effects on poverty or not poverty.

Sure, poverty is indeed the lack of money. But there are different reasons for different people at different times about why they lack money. Given these different reasons therefore different solutions have to be applied. Our Down’s Syndrome lad does simply need a transfer of resources, of wealth, from others in the society to him.

But that is not to say that the cure for all poverty is such a transfer: poverty in India is going to be better alleviated by the continuing destruction of Nehru’s extentions of the Licence Raj, poverty among some others in the UK is going to be best addressed by a change in the behaviour of those individuals.

March 14, 2012

The culture of Goldman Sachs

Filed under: Economics, History, Humour, USA — Tags: , — Nicholas @ 11:31

Joshua M. Brown responds to the “why I’m leaving x” meme, specifically about Goldman Sachs variants:

The “culture” of Goldman Sachs was, is and always will be about making money, often at the expense of a client. Do you even know where the term “wirehouse” originally came from? Let me help you out with that. In the 1920’s, there was no CNBC or internet — there was only news delivered by wire and cable, stock market news and prices included. The “wirehouse” firms like Goldman would transmit stock and bond prices to their far-flung offices around the country from Wall Street where the action was taking place. It is a peculiar and yet telling fact of history that during the Crash of 1929, not a single major Wall Street brokerage firm went under. Wanna know why? Because when the sell-off began, they dumped all their holdings prior to wiring the news out to the rest of the investing public and their clientele across the country. Sound familiar, motherfucker? THAT is your firm’s culture, going back a hundred and fifty years.

Deal with it or leave and open an Etsy store.

March 12, 2012

GM: the re-Volting face of corporatism

Redmond Weissenberger on the decline of GM from world-class manufacturer to crony capitalist shell:

General Motors was once the Jewel in the crown of American Capitalism. By many, it was considered the greatest manufacturing company in America, if not the world. The company was destroyed by the insidious nature of the Neo-National Socialism that has infected the USA for well on 80 years now, when the merger of state and corporate power that swept across Europe was aped first by Hoover and then by FDR in the disastrous New Deal. The unions that were encouraged to eat away at GM from the inside were bailed out and the US Federal government took a 25% ownership in company. In the 2009 deal to “restructure” GM, the bondholders were wiped out, and the Unions were given a free pass to continue their destructive behaviors.

Built by what is now a de facto state-owned corporation, the Volt was the child of the green-washed brains of the Obama administration. The Volt was built for no-one, but a vision of the perfect, “New eco-Socialist Man”. Who is buying the Volt? According to Bill Visnic, senior editor of Edmunds.com, “The Volt appeals to an affluent, progressive demographic” General Motors itself stated that the average income of a Volt buyer is $175,000 a year. This trend does of course line up with the type of individual who has been at the forefront of the environmental movement since day one. A rarefied elite, righteously indignant, statist in nature, ready to have the government force eco-correct behavior on all who inhabit the land. The classic example is Prince Philip, Duke of Edinburgh, who once opined that “In the event that I am reincarnated, I would like to return as a deadly virus, to contribute something to solving overpopulation”.

The Volt is a very good example of what happens when the means of production falls into the hands of the State. The system of profit and loss that can only operate when prices are set by the private owners of the materials and the means of production. The Chevy Volt can only exist within the sphere of the state wherein there is no rational economic calculation possible.

[. . .]

It is estimated by Tom Gantert that the Volt has received up to $3 Billion in Local, State and Federal Subsidies. And if you believe that GM has indeed sold 6,000 Volts, then the total subsidy per car can be estimated anywhere from $50,000 to $250,000. All of this for a mid-sized 4 door sedan that retails for $39,828 (eligible for a $7,500 federal rebate of course).

QotD: Corporate income tax rates

Filed under: Cancon, Economics, Quotations — Tags: , — Nicholas @ 00:05

If you assume that there’s no behavioural response, then each percentage point added to the federal CIT will generate roughly $2b in new revenues. So you’d conclude that the January 1, 2012 reduction in the CIT rate from 16.5% to 15% would reduce revenues by about $3b, and increasing the federal rate from 16.5% back to (say) 24% would increase CIT revenues by some $15b — almost one per cent of GDP.

This is the the sort of answer ‘static analysis’ gives. In a world in which multinationals file 57,000-page tax returns, one can only marvel at the faith in human nature among those who would make policy based on the belief that the only behavioural change on the part of corporations to an increase in CIT rates will be to put larger numbers on the cheques they send to the Receiver-General.

Stephen Gordon, “How much new revenue will be generated by an increase in federal corporate taxes?”, Worthwhile Canadian Initiative, 2012-03-11

March 10, 2012

Canadian Conservatives: “You are not that party”

Filed under: Cancon, Economics, Government, Liberty — Tags: , , , , , — Nicholas @ 12:27

Andrew Coyne’s presentation to the Manning Centre conference in Ottawa:

What I believe in are a set of principles having to do with the freedom of the individual, the usefulness but not infallibility of markets, and the legitimate but limited role of the state. There are, in brief, a few things we need government to do, based on well-established criteria on which there is a high degree of expert consensus. The task is simply to get government to stick to those things, rather than waste scarce resources on things that could be done as well or better by other means: that is, government should only do what only government can do.

As I say, these ideas are not novel, or controversial. Indeed, you would find support for them, to a greater or lesser degree, across the political spectrum.

Nevertheless, there was a party, once, that believed in these things, to a somewhat greater extent than the other parties. That party called itself conservative, whether with a small or a large C, so I suppose you could call the things it believed conservatism. But you are no longer that party.

For example, that party favoured balanced budgets. But you are not that party. In fact, you boast of how your decision to add $150-billion to the national debt saved the economy.

That party favoured cutting or at least controlling spending, after the massive spree of the Liberals’ last years. But you are not that party. In fact, you boast of how you have increased spending by 7% per year — $37-billion in one year!

That party favoured a simpler, flatter tax system, that left people free to decide how to spend, save or invest their money for themselves. But you are not that party. In fact, you boast of the many gimmicks and gew-gaws with which you have festooned the tax code.

That party favoured abolishing corporate welfare. But you are not that party. In fact you boast of the handouts you make, often accompanied by ministers or indeed MPs bearing outsized novelty cheques. In some cases, you even put the Conservative logo on them.

The story of the last decade is how the rock-ribbed small-c conservatives of the old Reform Party were tamed, neutered, and blinkered into becoming a blue-painted Liberal Party. It worked, in the sense of getting their hands on the levers of power, but their souls were tainted, corrupted, and eventually disposed of in the process.

March 9, 2012

The US Navy’s “east of Suez” moment

Filed under: Economics, Military, Technology, USA — Tags: , , , — Nicholas @ 00:01

“Sir Humphrey” on the looming crisis of the United States Navy:

There has been a lot of attention paid in some quarters this week to the allegations that the UK may shift back to STOVL rather than CTOL F-35. Humphrey has no intention on commenting on these particular reports — to his mind they are part of the wider PR12 process, which has seen, and will doubtless continue to see, a plethora of leaks of selected texts designed to push one case, denigrate another and continue the endless routine of tribal warfare between the services and their capbadges. All will be revealed in late March, so there is little point in speculating much before this point.

What has been of more interest though has been the reporting on the F-35 and also the wider perception that the US Navy is about to take a very significant hit in surface fleet numbers over the next 2-3 years. According to documents released there will be the loss of roughly 20 escorts from cruisers to frigates, paid off into reserve. This represents almost 20% of the USN, and is likely to see the reduction in size to barely 80 escorts within the next 2-3 years.

This is a very significant reduction — it’s effectively the paying off of the equivalent of the entire RN surface flotilla without replacement. On current plans by 2015, then USN is going to have barely 60 Arleigh Burke class destroyers, and around 20 Ticonderoga class cruisers — both designs which date back to the late 1970s – early 1980s in concept, even if the interiors have been significantly updated in equipment since then.

[. . .]

The USN is now struggling to keep pace with the fact that its escort fleet is aging, that it has multiple carriers which require replacement at some point in the near future, and that its SSN fleet is also going to need updating soon as well. This must also be set against the reality that hundreds of billions of dollars’ worth of cuts are inbound to the US defence budget, and that all three services have old and obsolescent equipment requiring replacement. It is hard to see how the US will be able to maintain its three services in their current levels of capability for much longer, and the worry is that a lot will have to give.

Humphrey is increasingly of the opinion that we are witnessing the USA’s ‘east of Suez moment’ at which the US is faced with the same strategic challenges that all empires are faced with. The legions will be recalled from Europe soon, and this is going to leave a major series of security and other challenges that need to be filled. A future blog article is planned to look at the impact of the USN cuts, and what the impact may be on the RN and other navies.

For those unfamiliar with the phrase in the title, it was in 1968 that the British government under Harold Wilson formally accepted that Britain could no longer maintain its military establishments in the furthest-flung corners of the former empire and announced the withdrawal of almost all forces from “east of Suez”. That was when the military (and economic) overstretch could no longer be maintained.

March 8, 2012

Woolley: We need power tools (and cars) for girls

Filed under: Economics, Randomness, Technology, Tools — Tags: , , , , — Nicholas @ 11:59

Over at the Worthwhile Canadian Initiative blog, Frances Woolley marks International Women’s Day:

Goods are becoming ever more specialized. Everything from baby diapers to multivitamins is now dispensed in gender- and age-appropriate models. Yes, it makes sense to have his and hers jeans. But gender appropriate soft-drinks? Does the average guy’s masculinity really need to be bolstered by buying Coke Zero instead of Diet Coke?

The profitability of his and hers products is partly due to price discrimination. The local hair salon charges women more than men because women are prepared to pay $50 or $60 to get their hair cut. Men asked to pay that price would just walk across the road to the barber shop that charges $15 for a short back-and-sides.

[. . .]

Second, gender differentiated power tools. I have small hands. My palm sander doesn’t fit into my palm — it’s more like a two-handed sander. I’d love to get a new drill, but most have such a large grip that I can barely hold them. It’s not just a gender issue — men’s hands come in all sorts of different sizes, too. How can women be expected to share equally in home repair duties when every power tool is the wrong size for their hands?

Finally, I’d like to see more cars built with features that appeal to women. I’ve heard — but I don’t know if this is true — that as soon as a particular model of car is perceived as being “girly,” men won’t buy it. Since men still constitute the majority of car buyers, sales collapse. I’ve heard this offered as an explanation of the lack of cars like the Smart car — two person vehicles that use hardly any gas, and are easy to drive and park on city streets. Smart cars are just too cute, and cute=girly, and girly is the automotive kiss of death. But what is the cost of this pursuit of masculinity?

Sweatshops and Apple

Filed under: China, Economics, Technology — Tags: , , , , — Nicholas @ 11:15

Sam Bowman points out the economic factors which many western critics miss when they slag Apple for working conditions in the factories where iPhones and iPads are assembled:

Like sweatshop workers in China and elsewhere, Foxconn employees endure long hours, low pay and dangerous working environments, but do so because there is no better alternative. In fact, jobs in sweatshops (and Foxconn factories) tend to be massively in demand, because the alternative is worse. It’s not uncommon for a new employee’s first action being to sign up their relatives to the waiting list for new job openings.

It’s easy to recoil from seen evils, while ignoring unseen alternatives that are even worse. No one in the West will ever have to put up with such bad conditions.

If wages and conditions in Apple’s hometown of Cupertino, CA, were as bad, nobody would work there. That people do so in China is because they have no better alternative. China’s economy is growing quickly, but much of it is still grindingly poor, and difficult to do business in. It’s poverty that makes China’s factories such unpleasant places to work in.

[. . .]

It’s no surprise that China is still very poor compared to neighbouring countries like Japan, South Korea, Taiwan and Singapore. Forty years of brutal socialism under Mao’s Communist state halted China’s development, and decimated institutions crucial for wealth creation, like strong civil society and the rule of law.

The exception, of course, is Hong Kong, where conditions and wages are much better than on mainland China — not because of a bigger government, but because of greater wealth caused by freer markets.

March 7, 2012

“The EU’s definition of a free society is where people do the authorities’ bidding voluntarily”

Filed under: Economics, Europe, Government, Liberty — Tags: , , , , — Nicholas @ 11:24

George Jonas who “imbibed too many Molotov-cocktails in his youth” on the European project:

The news comes on a day when market analysts observe “a sea of red.” European bourses are down 1.5%, China’s growth target is lowered from 8% to 7.5%, and the Greek government’s contingent liabilities are likely to exceed a trillion euros. While Europe’s debts are going through the roof, Viviane Reding has her eye glued to the glass ceiling. The European Commissioner for Justice doesn’t like what she sees.

“The European Commission is considering introducing mandatory quotas for female members on corporate boards,” reports Germany’s Suddeutsche Zeitung. The meticulous newspaper leaves no doubt about the reason. “Pleas for companies to voluntarily introduce such quotas themselves produced no effect.”

The EU’s definition of a free society is where people do the authorities’ bidding voluntarily. The EU is socialist, of course, not communist. Socialists consider an intermediate stage of voluntary compliance essential before turning to coercion.

Communists find this a hoot. They say it’s hypocritical and a waste of time. It’s hard to disagree with them. Communists are always nasty, but not always wrong.

Update: Of course, with their top-down, we-know-best approach, it’s no surprise that they were totally astonished when people interpreted their latest pro-expansion video a bit less positively than they expected:

H/T to the Adam Smith Institute blog for the video:

Critics of the EU are often accused of being “Little Englanders”. In the light of rhetoric like this from the EU it’s clear that the mindset behind the EU itself is little more than Little Englanderism writ large across the continent — still preoccupied with keeping out scary foreigners and closing Europe off from alien cultures. If the EU is offering an insular Europe that demonizes and builds walls against foreigners, I would turn it down. There’s a whole world out there to trade and engage with.

Veterans Affairs to face disproportionally big cuts in federal budget

Filed under: Bureaucracy, Cancon, Economics, Military — Tags: , , , , , — Nicholas @ 10:32

That’s what Sean Bruyea thinks. Here’s his piece in the Globe & Mail:

Prime Minister Stephen Harper calls enlisting in the military the “highest form of public service.” Why then is Veterans Affairs, the department which cares for the Canadian Forces when its members are injured, facing the largest proportional cuts of any other public-service department?

The budget axe has been looming over all federal departments. The current “strategic and operational review” is a euphemism for reigning in a federal public service that is out of control. In the last 10 years, the core public service has grown by 34 per cent (versus 12 per cent at Veterans Affairs) and total government program expenses have swelled by 84 per cent (versus 67 per cent at Veterans Affairs).

Perhaps most galling for Canadians who have passed through two recessions in two decades and have seen no real growth in their earnings, public service salaries have increased by 22 per cent over and above inflation.

Few could credibly argue against the need for Ottawa to be managed better.

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