Quotulatiousness

November 21, 2020

Schwebebahn: Why Wuppertal’s Trains Are Much Cooler Than Yours

Filed under: Economics, Germany, History, Railways — Tags: , , — Nicholas @ 02:00

The Tim Traveller
Published 12 Apr 2018

Wuppertal has possibly the world’s most badass public transport: a 120-year-old swingin’ suspension railway. But the question is: why? When everyone else was busy building trams and undergrounds, what made Wuppertal say “NOPE”, and build this instead?

***
Tom Scott Video:
https://www.youtube.com/watch?v=F4KZL…

Kaiserwagen photo:
By Own work – JuergenG, CC BY-SA 3.0, https://commons.wikimedia.org/w/index…

From the comments:

The Tim Traveller
10 months ago
Hi all – just a quick note on this video: I think a few people are mishearing me at 0:43 where I say this is “the world’s oldest suspension railway… it’s also one of the world’s only suspension railways”. I did not call it “the world’s only suspension railway” — there are others, including one not too far away from here at DĂĽsseldorf Airport, another in Memphis, US, and some more in Japan. TLDR: it’s the oldest one but not the only one. Thank you for your attention 🙂

November 20, 2020

The political danger if the “chumps” unite

Filed under: Economics, Education, Politics, USA — Tags: , , , — Nicholas @ 03:00

In City Journal, James B. Meigs describes what he calls the “Chump Effect” in American politics:

Senator Elizabeth Warren speaking at the Iowa Democrats Hall of Fame Celebration in Cedar Rapids, Iowa, on 9 June, 2019.
Photo by Lorie Shaull via Wikimedia Commons.

Last January, a small but telling exchange took place at an Elizabeth Warren campaign event in Grimes, Iowa. At the time, Warren was attracting support from the Democratic Party’s left flank, with her bulging portfolio of progressive proposals. “Warren Has a Plan for That” read her campaign T-shirts. The biggest buzz surrounded her $1.25 trillion plan to pay off student-loan debt for most Americans.

A man approached Warren with a question. “My daughter is getting out of school. I’ve saved all my money [so that] she doesn’t have any student loans. Am I going to get my money back?”

“Of course not,” Warren replied.

“So you’re going to pay for people who didn’t save any money, and those of us who did the right thing get screwed?”

A video of the exchange went viral. It summed up the frustration many feel over the way progressive policies so often benefit select groups, while subtly undermining others. Saving money to send your children to college used to be considered a hallmark of middle-class responsibility. By subsidizing people who run up large debts, Warren’s policy would penalize those who took that responsibility seriously. “You’re laughing at me,” the man said, when Warren seemed to wave off his concerns. “That’s exactly what you’re doing. We did the right thing and we get screwed.”

That father was expressing an emotion growing more common these days: he felt like a chump. Feeling like a chump doesn’t just mean being upset that your taxes are rising or annoyed that you’re missing out on some windfall. It’s more visceral than that. People feel like chumps when they believe that they’ve played a game by the rules, only to discover that the game is rigged. Not only are they losing, they realize, but their good sportsmanship is being exploited. The players flouting the rules are the ones who get the trophy. Like that Iowa dad, the chumps of modern America feel that the life choices they’re most proud of — working hard, taking care of their families, being good citizens — aren’t just undervalued, but scorned.

The word “chump” probably derives from an ancient Norse term for a stump or large chunk of wood. The modern word “blockhead” comes to mind, which — no coincidence — was Lucy’s favorite label for the too-trusting Charlie Brown in the Peanuts comic strip. Lucy never tired of snatching away the football; Charlie fell for it every time. We all know the feeling: when you’re inching forward in the freeway exit lane, say, and another driver flies past and swerves onto the ramp at the last second; when your child has to complete her college-entrance exams within a designated time period, but your neighbor’s child gets twice as long because of a suddenly diagnosed “learning disability”; when you pay extra to have your pet travel in the airplane’s cargo hold but the yipping poodle across the aisle, an “emotional-support animal,” gets to ride on its owner’s lap for free. You didn’t know that you could get an emotional-support card just by claiming an anxiety disorder and paying a fee to an online agency? What are you — a chump?

November 17, 2020

“We are so well off here in the United States that our poverty line begins 31 times above the global average. Thirty. One. Times.”

Filed under: Cancon, Economics, Liberty, USA — Tags: , , — Nicholas @ 03:00

Alyssa Ahlgren ponders the fact that we North Americans take our unprecedented-in-human-history prosperity very much for granted:

I’m sitting in a small coffee shop near Nokomis trying to think of what to write about. I scroll through my newsfeed on my phone looking at the latest headlines of Democratic candidates calling for policies to “fix” the so-called injustices of capitalism. I put my phone down and continue to look around.

I see people talking freely, working on their MacBooks, ordering food they get in an instant, seeing cars go by outside, and it dawned on me. We live in the most privileged time in the most prosperous nation and we’ve become completely blind to it. Vehicles, food, technology, freedom to associate with whom we choose.

These things are so ingrained in our American way of life we don’t give them a second thought. We are so well off here in the United States that our poverty line begins 31 times above the global average. Thirty. One. Times. Virtually no one in the United States is considered poor by global standards. Yet, in a time where we can order a product off Amazon with one click and have it at our doorstep the next day, we are unappreciative, unsatisfied, and ungrateful.

Our unappreciation is evident as the popularity of socialist policies among my generation continues to grow. Democratic Congresswoman Alexandria Ocasio-Cortez recently said to Newsweek talking about the millennial generation, “An entire generation, which is now becoming one of the largest electorates in America, came of age and never saw American prosperity.”

Never saw American prosperity. Let that sink in. When I first read that statement, I thought to myself, that was quite literally the most entitled and factually illiterate thing I’ve ever heard in my 26 years on this earth. Now, I’m not attributing Miss Ocasio-Cortez’s words to outright dishonesty. I do think she whole-heartedly believes the words she said to be true. Many young people agree with her, which is entirely misguided. My generation is being indoctrinated by a mainstream narrative to actually believe we have never seen prosperity. I know this first hand, I went to college, let’s just say I didn’t have the popular opinion, but I digress.

Let me lay down some universal truths really quick. The United States of America has lifted more people out of abject poverty, spread more freedom and democracy, and has created more innovation in technology and medicine than any other nation in human history. Not only that but our citizenry continually breaks world records with charitable donations, the rags to riches story is not only possible in America but not uncommon, we have the strongest purchasing power on earth, and we encompass 25 percent of the world’s GDP. The list goes on.

November 12, 2020

QotD: It’s impossible to plan the economy

Filed under: Britain, Economics, Government, Quotations — Tags: , , — Nicholas @ 01:00

So, government is this all knowing, all seeing, entity which can plan, in detail, what should be produced, by whom, where, at what price. That’s what we need to be true if we are to have an interventionist government which tries to plan the economy.

Government is so ill-equipped to judge the future that it sold €6 billion’s worth of property off for ÂŁ1.6 billion – that’s what we need to be true for that ÂŁ4.5 billion loss, no? This is not a world in which we can trust government to plan our economy, is it?

And which government exists in reality? Well, the complaint is that second. And the people complaining are largely those who insist that we should act as if we’ve government of the first type. No, they don’t note the discord in that logic either. Governments aren’t very good at economic decisions therefore governments must make more economic decisions for us all. If you can manage to believe that you too can join the Labour Party.

Tim Worstall, “That Ministry Of Defence Housing Deal Proves It’s Impossible To Plan The Economy”, Continental Telegraph, 2018-07-13.

November 10, 2020

The amazing mental gymnastics that lead to the US Supreme Court’s unanimous decision in Wickard v. Filburn in 1942

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

Antony Davies and James R. Harrigan explain how a farmer growing wheat on his own land to feed his own cattle somehow transmogrified into an interstate commerce activity that could be regulated by the federal government:

Panorama of the west facade of United States Supreme Court Building at dusk in Washington, D.C., 10 October, 2011.
Photo by Joe Ravi via Wikimedia Commons.

… who ended up being tasked with deciding what Article One, Section Eight actually meant? Herein lies the wrinkle that enables all manner of constitutional mischief in the United States. The institution that ended up deciding what the federal government is empowered to do is itself a branch of the federal government. And it should come as no surprise that when push comes to shove, the Supreme Court routinely finds in favor of empowering the federal government.

This sort of mischief flowered fully in the decade following ratification of the 21st Amendment. In 1942, the Supreme Court decided a case, Wickard v. Filburn, in which farmer Roscoe Filburn ran afoul of a federal law that limited how much wheat he was allowed to grow.

A careful reader might, and should, ask where the federal government’s right to legislate the wheat market is to be found — because the word “wheat” is nowhere to be found in the Constitution. Be that as it may, the federal government’s aim was clear enough. It was to keep the price of wheat high enough for farmers to remain profitable. The Agricultural Adjustment Act of 1938 put an upper limit on how much wheat farmers were allowed to grow, which would serve to keep prices high by limiting supply.

Roscoe Filburn had grown 12 more acres of wheat than the law allowed. But not only did he not sell the excess wheat outside of his home state, but he also didn’t sell it at all. He used the wheat from those 12 acres to feed his cattle. Filburn was very clearly not engaging in commerce, let alone interstate commerce, yet the Supreme Court found (unanimously) that because Congress had the authority to regulate interstate commerce, Congress also had the authority to prohibit Filburn from growing those 12 acres of wheat for his own use. The Supreme Court’s “reasoning”?

Had Filburn not fed his cattle that excess wheat, he would have been forced to purchase wheat on the open market. And even if he purchased wheat that was grown within his home state, doing so would have made less wheat available within his home state for other wheat buyers. Consequently, some wheat buyers within his home state would then have had to buy wheat from outside the state. Therefore, Filburn’s non-commercial activity was, according to the Supreme Court, interstate commerce.

The mental gymnastics that went into this ruling made just about any activity interstate commerce by definition. Since Wickard, any time Congress has wanted to exercise power not authorized by the Constitution, lawmakers have simply had to make an argument that links whatever they want to accomplish to interstate commerce. Why? Because they know they can get away with it.

QotD: The Smartphone, the Eater-of-Gadgets

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

I’ve been thinking for some time now that the smartphone has achieved a kind of singularity, becoming a black hole that sucks all portable electronics into itself. PDAs – absorbed. Music players – consumed. Handset GPSes – eaten. Travel-alarm clocks, not to mention ordinary watches – subsumed. Calculators – history. E-readers under serious pressure, and surviving only because e-paper displays have lower battery drain and are a bit larger. Compasses – munched. Pocket flashlights – crunched. Fobs for keyless locks – being scarfed down as we speak, though not gone yet.

[…]

But in an entertaining inversion, one device of the future actually works on smartphones now. Because I thought it would be funny, I searched for “tricorder” in the Android market. For those of you who have been living in a hole since 1965, a tricorder is a fictional gadget from the Star Trek universe, an all-purpose sensor package carried by planetary survey parties. I expected a geek joke, a fancy mock-up with mildly impressive visuals and no actual function. I was utterly gobsmacked to discover instead that I had an arguably real tricorder in my hand.

Consider. My Nexus One includes a GPS, an accelerometer, a microphone, and a magnetometer. That is, sensors for location, magnetic field, gravitational fields, and acoustic energy. Hook a bit of visualization and spectral analysis to these sensors, and bugger me with a chainsaw if you don’t have a tricorder. A quad- or quintcorder, actually.

And these sensors are already completely stock on smartphones because sensor electronics is like any other kind; amortized over a large enough production run, their incremental cost approaches epsilon because most of their content is actually design information (cue the shade of Bucky Fuller talking about ephemeralization). Which in turn points at the fundamental reason the smartphone is Eater-of-Gadgets; because, as the tricorder app deftly illustrates, the sum of a computer and a bunch of sensors costing epsilon is so synergistically powerful that it can emulate not just real single-purpose gadgets but gadgets that previously existed only as science fiction!

[…]

I specified “personal” radios because radios have something in common with personal computers; their main design constraints are actually constraints on a peripheral stage. For a computer you’ll be using for hours at a time you really want a full-sized hard keyboard and a display bigger than a smartphone’s; for a really good radio, the kind you supply sound for a party with, you need speakers with resonant cavities that won’t fit in a smartphone enclosure.

Digital cameras are another diagnostic case. The low-end camera with small lenses is already looking like a goner; the survivors will be DSLRs and more generally those with precision optics too large and too expensive to fit in a phone case.

These two examples suggest Raymond’s Rule of Smartphone Subsumption: if neither the physics nor the ergonomics of a gadget’s function require peripherals larger than will fit in a smartphone case, the smartphone will eat it!

Eric S. Raymond, “Smartphone, the Eater-of-Gadgets”, Armed and Dangerous, 2010-07-16.

November 9, 2020

Maine conducts brave and daring experiment with an $18 per hour minimum wage

Filed under: Business, Economics, Politics, USA — Tags: , — Nicholas @ 03:00

It’s a bold move, says Jon Miltimore, let’s see if it pays off:

While Florida, which on Tuesday passed a $15 an hour minimum wage referendum, was the only state to have the minimum wage on the ballot in 2020, some localities also voted on the issue.

One of those cities was Portland, the largest city in Maine. The referendum sought to increase the minimum wage from $12 an hour to $15 by 2024. The measure also mandated that workers receive time and a half during a civil emergency (like, say, a pandemic).

Despite opposition from the city’s mayor, seven members of the city council, and dozens of Portland businesses, the measure passed with 60 percent of the vote. That means as early as next month the minimum wage will be $18 an hour, since Maine has declared a civil emergency. (The time-and-a-half will kick in on the $12 minimum wage.)

Businesses already ravaged by stay-at-home orders from the coronavirus have expressed worry about how they will manage to stay in the black.

“In the last 7 months business has dropped from 30 to 50 percent and food costs have skyrocketed. This added increase on a business already depressed due to the pandemic is tough,” one Portland business owner who declined to speak on camera told WCSH, an NBC-affiliate. “We may have to either cut employee hours or cut back on business hours.”

Cutting employee hours is just one of the ways employers negatively respond to laws that artificially raise the price of labor. Other responses include cutting other forms of compensation, such as health care or 401k benefits, replacing workers with robots, and simply assigning employees to do more work.

These are hardly the only unintended consequences. For example, economists David Neumark and William Wascher found that higher minimum wages decrease the number of teens enrolled in high school because they encourage high-skilled teens to drop out; this in turn displaces low-skilled workers.

November 8, 2020

QotD: Tribal and post-tribal economies

… it was a problem of permitting, by and large. Portugal isn’t as bad, mind, nowhere near but in the seventies a lot of places were designated “green belts” everywhere, so that to build on them (and you had to build on them, or you were stymied in growth) you had to know who to bribe, and of course have the money to do it. This isn’t the only reason why favelas end up housing even the middle class. There’s a ton of other reasons, including but not limited to land ownership and property rights, and a shit-ton of stuff. But permitting is part of it.

This is because people don’t view their public posts as something they do to make society better/serve society or even do a job, but as a way to enrich themselves/benefit their friends/make it easier to make money in the future.

Everything, from truly shoddy workmanship to rushed, corner/cutting work, to outright corruption comes from viewing a job not as something you take pride in and work to do your best at, but from viewing a job as an opportunity to enrich yourself and your family while doing as little work as humanly possible. In fact in some societies, this is viewed as a duty. As someone in comments cited there are places in Africa where locals can’t run a shop, because all their relatives near and distant will expect to be given merchandise for free … or even money out of the till.

A lot of this is because the idea of the individual as independent of the tribe and the family is a very new thing in most of the world. We kind of have a head start on it because we are/are descended from those who left family and tribe behind.

[…]

Also in most of the world working for money is vaguely shameful. Particularly so if you’re working for someone else. […] And even here not only does that attitude persist, but it’s trying to make itself normal. Particularly in politics.

So, take pride in what you do, and do the best job you can. It’s not just important for you, it’s a building block of society. Do the best you can, and control as much as you can, so maybe you will have just reward which is an incentive to do better.

This way is civilization built. This way do things actually improve.

Sarah Hoyt, “BUILD!”, According to Hoyt, 2018-07-25.

November 7, 2020

Misunderstanding what is meant by “mineral reserves”

Filed under: Economics, Environment — Tags: , , , — Nicholas @ 05:00

It seems to happen almost as regularly as Old Faithful, as someone blows a virtual gasket over the reserves of this or that mineral “running out” in x number of years. Tim Worstall explains why this is a silly misunderstanding of what the term “mineral reserves” actually means:

“Aerial view of a small mine near Mt Isa Queensland.” by denisbin is licensed under CC BY-ND 2.0

It’s not exactly unusual to see some environmental type running around screaming because mineral reserves are about to run out. The Club of Rome report, the EU’s “circular economy” ideas, Blueprint for Survival, they’re all based upon the idea that said reserves are going to run out.

They look at the usual listing (USGS, here) and note that at the current rate of usage reserves will run out in 30 to 50 years. Entirely correct they are too. It’s the next step which is such drivelling idiocy. For the claim then becomes that we will run out of those metals, those minerals, when the reserves do. This being idiot bollocks.

For a mineral reserve is, as best colloquial language can put it, the stuff we’ve prepared for use in the next few decades. Like, say, 30 to 50 years. That we’re going to run out of what we’ve got prepared isn’t a problem. For we’ve an entire industry, mining, whose job to to go prepare some more for us to use.

[…] A mineral reserve is something created by the mining company. Created by measuring, testing, test extracting and proving that the mineral can be processed, using current technology, at current prices, and produce a profit. Proving that this is not just dirt but is in fact ore.

Mineral reserves are things we humans make, not things that exist.

November 6, 2020

The World’s Most Recycled Material

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

Practical Engineering
Published 6 Aug 2020

Exploring the complexities that go into the creation and application of asphalt concrete.
Use code 80PRACTICAL to get $80 off with purchase, including free shipping on your first box https://bit.ly/30sYo7c Go to HelloFresh.com for more details.

Of all the ubiquitous things in our environment, roads are probably one of the least noticed. Our roads see tremendous volumes of traffic and withstand considerable variations in weather and climate, and they do it on a pretty tight budget. That’s really only possible because of all the scientists, engineers, contractors, and public works crews keeping up with this simple but incredible material called asphalt.

-Patreon: http://patreon.com/PracticalEngineering
-Website: http://practical.engineering

Writing/Editing/Production: Grady Hillhouse
Editing and Direction Help: Wesley Crump

This video is sponsored by HelloFresh.

November 5, 2020

QotD: The idiocy of tariffs

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

The entire point of trade, the very purpose of it, is to gain access to the imports. Those things which Johnny Foreigner makes cheaper or better than we do. To tax ourselves because he makes things cheaper or better than we do is simple idiocy. […] Over and above this stupidity there’s the depressing point that trade and trade protection really is a spiral. Here we’ve got the two largest economies on the planet tripping over themselves to punish their own citizenry for their temerity in buying foreign. And as we can see, it is a tit for tat spiral. A little bit of sabre rattling, a response, a larger amount of shouting, a response, then truly impoverishing levels of rock throwing into own harbours and off we go into making our own people less wealthy.

The true sadness here being that the spiral works the other way too. But hugely, vastly, more slowly. GATT was founded in 1947, it became, the process was transferred to, the WTO and it has taken them since then, that two generations, to reduce tariff levels to where they’re not really all that important in trade matters. Something that is being undone in just a couple of months of foolishness. GATT being something of a response to the economic demolition work done by Smoot Hawley of course.

Trade protection does spiral up and spiral down, the sadness being that here’s an asymmetry to the process. The reductions that make us richer take very much longer than the nonsenses that impoverish.

Tim Worstall, “The China, US, Trade War – It’s All Mutual On The Way Down As Well As Up”, Continental Telegraph, 2018-07-11.

November 3, 2020

QotD: Water pricing

Filed under: Asia, Economics, Environment, Government, Quotations — Tags: , , — Nicholas @ 01:00

Near all freshwater availability problems come from the fact that farmers get it cheap or for free, diverting it from much more valuable uses like keeping people alive if they drink it. This is true in California – we’ve actually cases of farmers using $400 of water to grow $100 of alfalfa – as it is in Pakistan. There are cases of people growing water hungry crops in near drought areas just because they get that water too cheaply.

[…]

Gaining revenue with which to build dams is useful, it most certainly is. But that’s not the only function of pricing. The cash to increase supply, great, but the very fact of charging will reduce demand. And we should be charging what it costs to produce the water too. So charges should cover 100% of the costs of the dams, not just 25%.

It’s entirely possible that charging that full cost will mean that no farmers want the water. OK, then we shouldn’t build the dam, should we? For if the value of the water – measured by what people will pay – is less than the cost of its provision, then that’s value destroying, providing the water. The dam makes us all poorer, therefore we shouldn’t build it.

The point here being – and it’s an important one – that prices affect both supply and demand. They’re what brings them into balance even. So, yes, charge for water, but not just so that we can pay to increase supply, also so that we, merely by charging, reduce demand.

Tim Worstall, “Pakistan’s Chief Justice Almost Right – Charge For Water, Not For Dams, But To Charge For Water”, Continental Telegraph, 2017-07-17.

October 31, 2020

Modern Halloween costumes show us how wealthy we have become

Filed under: Cancon, Economics, History, Media, USA — Tags: , , , , , , — Nicholas @ 03:00

Richard Lorenc looks back at the “costumes” for Halloween from the 1970s and 1980s to help illustrate how much our general economic picture has improved since those dark days:

While my husband and I were recently struggling to figure out our costumes for this Halloween (and we still don’t have any idea), he pulled up some old commercials on YouTube. The off-the-shelf options that trick or treaters had were, in a word, pitiful.

Basically, costume makers thought it was ok to make a front-only plastic mask (in any color, really) of a character and top it off with a plastic smock featuring an illustration of said character with either its name or the name of the show or movie it comes from. There was no attempt to dress in the character’s actual attire. If you wanted that, you’d either have to know a professional costumer or cobble together something from your closet.

Take a look for yourself at just how costume-poor we used to be:

Obviously, every costume is an opportunity to generate interest in a brand or franchise, and slapping on a logo is an easy way to get a name out there, but these costumes truly heralded a dark time for Halloween. Some may even argue that it demonstrated crass consumerism at its worst, with cynical companies taking the easiest route to grabbing a couple of bucks from desperate parents.

The truth of the tragedy of terrible old Halloween costumes has to do with a simple idea: specialization.

[…]

The next time you compare our screen-accurate store-bought costumes of Darth Vader and Mr. Incredible to those of yesteryear, remember that we enjoy them today not because previous generations didn’t care for accurate costuming, but because growing trade across the globe has generated so much wealth for each of us that we can now demand things we may have only imagined previously.

I only realized as I got ready to schedule this post that it was an article I’d blogged a couple of years back, but the point of the story is still relevant even in our pandemic-wracked economy of 2020.

October 22, 2020

When England “Londonized”

Filed under: Britain, Economics, Europe, Health, History — Tags: , , , , — Nicholas @ 05:00

In the latest Age of Invention newsletter, Anton Howes looks at changes in urbanization in England from the Middle Ages onward and the astonishing growth of London in particular:

John Norden’s map of London in 1593. There is only one bridge across the Thames, but parts of Southwark on the south bank of the river have been developed.
Wikimedia Commons.

We must thus imagine pre-modern England as a land of tens of thousands of teeny tiny villages, each having no more than a couple of hundred people, which were in turn served by hundreds of slightly larger market towns of no more than a few hundred inhabitants, and with only a handful of regional centres of more than a few thousand people. By the 1550s, the country’s population had still not recovered to its pre-Black Death peak, and still only about 4% of the population lived in cities. London alone accounted for about half of that, with approximately 50-70,000 people (about five times the size of its closest rival, Norwich). So after a couple of centuries of recovery, London was only a little past its medieval peak.

But over the following century and a half, things began to change. At first glance, England’s continued population growth was unremarkable. By 1700, its overall population had finally reached and even surpassed the medieval 5 million barrier, despite the ravages of civil war. This was, perhaps, to be expected, with a little additional agricultural productivity allowing it to surpass the previous record. But the composition of that population had changed radically, largely thanks to the extraordinary growth of London. England’s overall population had not only recovered, but now 16% of them lived in cities of over 5,000 inhabitants — over two thirds of whom lived in London alone. Rather than simply urbanise, England londonised. By 1700, the city was nineteen times the size of second-place Norwich — even though Norwich’s population had more or less tripled.

London had, by 1700, thus risen from obscurity to become one of the largest cities in Europe. At an estimated 575,000 people, it was rivalled in Europe only by Paris and Constantinople, both of which had been massive for centuries. And although by modern standards it was still rather small, it could at least now be comfortably called a city — more or less on par with the populations of modern-day Glasgow or Baltimore or Milwaukee.

During that crucial century and a half then, London almost single-handedly began to urbanise the country. Its eighteenth-century growth was to consolidate its international position, such that by 1800 the city was approaching a million inhabitants, and from the 1820s through to the 1910s was the largest city in the world. In the mid-nineteenth century England also finally overtook Holland in terms of urbanisation rates, as various other cities also came into their own. But this was all just the continuation of the trend. London’s growth from 1550 to 1700 is the phenomenon that I think needs explaining — an achievement made all the more impressive considering how many of its inhabitants were dropping dead.

Throughout that period, urban death rates were so high that it required waves upon waves of newcomers from the countryside to simply keep the population level, let alone increase it. London was ridden with disease, crime, and filth. Not to mention the occasional mass death event. The city lost over 30,000 souls — almost of a fifth of its population — in the plague of 1603 (which was apparently exacerbated by many thousands of people failing to social distance for the coronation of James I), followed by the loss of a fifth again — 41,000 deaths — in the plague of 1625, and another 100,000 deaths — by now almost a quarter of the city’s population — in 1665. And yet, between 1550 and 1700 its population still managed to increase roughly tenfold.

I’ve been hard-pressed to find an earlier, similarly rapid rise to the half-a-million mark that was not just a recovery to a pre-disaster population or simply the result of an empire’s seat of government being moved. Chang’an, Constantinople, Ctesiphon, Agra, Edo, for example — all owed their initial, massive populations to an administrative change (often accompanied by a degree of forcible relocation), and all then grew fairly gradually up to or beyond half a million. As for a very long-term capital like Rome, it seems to have taken about three or four centuries to achieve the increases that London managed in just one and a half (though bear in mind just how rough and ready our estimates of ancient city populations are — our growth guesstimate for Rome is almost entirely based on the fact that the water supply system roughly doubled every century before its supposed peak). The rapidity of London’s rise from obscurity may thus have been unprecedented in human history — and was certainly up there with the fastest growers — though we’ll likely never know for sure.

But how? I can think of a multitude of factors that may have helped it along, but I find that each of them — even when considered altogether — aren’t quite satisfactory.

Carbon taxes may be the most efficient way to address GHG emissions, but no government has implemented them properly

I was persuaded by the economic arguments in favour of a carbon tax to address the externaly of greenhouse gas emissions, but I’ve long been skeptical that governments would actually implement them in a way to minimize economic distortion. A report from the Fraser Institute this week shows I was right to be doubtful, as none of the 31 OECD countries in the study have managed to introduce some form of carbon pricing without political “tinkering” … rather than replacing inefficient regulations, taxes and mandates with the carbon tax, they’ve generally just added carbon pricing on top of existing rules, making the carbon pricing scheme merely another tax grab that fails to achieve the stated goals:

Most economists consider human-made greenhouse gas (GHG) emissions an unintended negative externality of production and consumption. A negative externality occurs when the effects of producing or consuming goods and services impose costs on a third party which are not reflected in the prices charged for said goods and services. In the context of GHG emissions, this negative externality is calculated using the “social cost of carbon,” which is the future damage to society (adjusted to present value) of one additional tonne of carbon emitted to the atmosphere today.

Governments have a wide variety of policy alternatives to address the negative externality of emissions depending on the degree and depth of the policy intervention. They can either mandate individuals and firms to change their behaviour through com­mand-and-control regulations, grant subsidies and tax credits to foster cleaner energy sources, or use market-based mechanisms to correct the misalignment of incentives. It is widely acknowledged that carbon pricing, one of these market tools, is the most cost-effective policy to reduce emissions, as it relies on price signals and trade to provide flex­ibility to economic agents as to where and how emissions mitigation occurs.

[…]

This report includes thirty-one high-income OECD countries, where each country has either implemented a carbon tax, an ETS [emissions trading system], or a combination of both pricing mechan­isms. Carbon taxes are being implemented in 14 of them whereas 25 of these countries have their emissions covered by an ETS. Our analysis finds that, on average, 74 percent of carbon tax revenues in high-income OECD countries go directly into their general budget with no earmarking for any specific expenditure, while 12 percent are ring-fenced for environmental spending, and only 14 percent for revenue-recycling measures. This means that most governments are using carbon taxes as a revenue-raising tool rather than a mechanism to internalize the negative externalities of emissions in a cost-effective man­ner. Additionally, the vast majority of ETS revenues are being used to artificially acceler­ate the use of renewable energy sources, infrastructure, and technology.

The study also finds that no high-income OECD country has used carbon pricing to repeal emission-related regulations, but instead have introduced new ones following the adoption of the carbon tax or the ETS. Emissions caps, mandated fuel standards, technology-based standards, and renewable power mandates are just some examples of these regulations that undermine the cost-effectiveness of carbon pricing mechanisms. The majority of high-income OECD countries have a combination of support schemes for renewable energy sources, carbon pricing tools, and command-and-control regulations.

Overall, no high-income OECD country is following the textbook model of an optimal carbon pricing system, undermining their theoretical efficiency by design and implementation.

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