Quotulatiousness

December 17, 2015

QotD: American exceptionalism

Filed under: Liberty, Quotations, USA — Tags: , , — Nicholas @ 01:00

Tom Tancredo is a five-term former U.S. congressman from Colorado. In some ways, he’s the right wing’s answer to former Democratic governor Dick Lamm, offering swift, unconventional, unexpected, solutions to socio-economic, and political problems. Following 9/11, he proposed threatening the Muslem world — should there ever be another such attack — to reduce Mecca to a sheet of glass.

Like all conservatives, his notions are often what libertarians would consider unethical, but they are often thought-provoking, as well. Tancredo’s latest idea seems reasonable, at first, but it has some serious problems that he either doesn’t foresee or doesn’t care about.

His suggestion, reported in the December 4th edition of Breitbart online, is to organize “citizen militias” across the country, trained and armed against events like those that just happened in Paris and San Bernardino. What could possibly be wrong with that? Isn’t it what the Constitution’s Bill of Rights’ Second Amendment was written to encourage?

Well, yes it is, if the British Army (or any other army) were coming at us over the hill. The fact is, Islamic terrorism (or any other terrorism) is not an army coming at us over the hill kind of problem. On the contrary, it is a W.A.S.P. kind of problem, and you can find out exactly what that means by reading Eric Frank Russell’s prophetic novel about asymmetrical warfare of the same name. If you haven’t read it, until you do, allow me to explain that terrorism is a diffuse threat, a tactical will-o-the-wisp, that flits off when you bat at it with a big, heavy, rolled-up army. The government is unable to deal with it, because it’s like exterminating mosquitos with hand grenades.

The way to counter a diffuse threat is with a diffuse defense. We all know (at least we do if you’re reading this) that central planning is an utter failure in the marketplace; mistakes get magnified, bad guesses punish millions, People end up homeless, naked, and starving. That, despite what Republicans and Democrats claim to the contrary, is why the Soviets collapsed and why Vlad Putin won’t be able to restore them.

And yet, if each of us just pays attention to his own little part of the market, free of any interference from others, especially government, the vast, destructive waves of central planning settle into millions of tiny, survivable ripples. Society becomes peaceful, prosperous, and productive. That’s the great, “mysterious” secret of American wealth and success, of “American exceptionalism”, and to the extent it becomes compromised, people and civilization will suffer accordingly.

L. Neil Smith, “Remember Who Was First”, Libertarian Enterprise, 2015-11-06.

October 23, 2015

QotD: “Ever wonder why on earth anyone thought socialism would work?”

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

No, seriously: Ever wonder why? “From each according to his ability, to each according to his need” sounds very fine, but by the time socialism rolled around, this idea had been tried, and fallen apart, in multiple communes. Moreover, sponging, shirking relatives had been observed in families from the dawn of history. The universal desire to work less than needed had long been countered by some variant on the biblical rule that “he who does not work, does not eat.” Why, then, did people want to throw out the profit motive and have the government run everything?

Conservatives and libertarians who ask themselves this question generally assume that socialists must have been naïve pointy-heads who didn’t understand that socialism would run into incentive problems. And of course, as in any sizeable movement, there were just such naïve pointy-heads. Even if I’m no expert on the history of socialist thought, the reading I have done suggests that the movement itself was not actually this naïve; there were people who understood that, as economists like to say, “incentives matter.” They thought that socialist economies would perform better despite the incentive problem because of various efficiencies: streamlining overhead, creating massive economies of scale, eliminating “wasteful competition,” and the many-splendored production enhancements possible through “scientific planning.”

In hindsight, this sounds ridiculous, because we know that socialized economies failed on a massive, almost unprecedented scale. Scientific planning proved inferior to the invisible hand of the market, scale turned out to have diseconomies as well as economies, and administrative overhead was not, to put it lightly, reduced. But before socialism was tried, this all seemed plausible.

Megan McArdle, “Will Ebola Be Good for the CDC?”, Bloomberg View, 2014-10-20.

October 22, 2015

QotD: The historical triumph of public health

Filed under: Bureaucracy, Government, Health, History, Quotations — Tags: , — Nicholas @ 01:00

… the great public health achievements between roughly 1850 and 1960. Doctors and public health experts were given extraordinarily broad powers by the government, and they used them to eliminate the scourges that had made cities into pestholes from time immemorial. They built gleaming sewers and water treatment plants to wipe out virulent water-borne pathogens that used to regularly claim thousands of lives. Contact-tracing and quarantine of airborne and sexually transmitted diseases turned former plagues like smallpox and syphilis into tragic but sporadic outbreaks. Changes in building codes helped beat back mass killers like tuberculosis. Poison control cut down on both accidental and deliberate deaths. The Pure Food and Drug Act, and similar ordinances in other countries, reduced foodborne illness, and also, the casual acquisition of opiate or cocaine addictions through patent medicines. Malarial swamps were drained. Environmental toxins were identified and banned. Then they went and invented antibiotics and vaccines and vaccination laws, and suddenly surgery was as safe as a long-haul flight, TB was curable, and childhood illnesses that used to kill hundreds of people every year were a quaint footnote in your 10th-grade history textbook.

Having seen public experts work these miracles through the heavy hand of the state, people understandably concluded we could use miracles in other areas. They had a metaphor, so to speak. The metaphor wasn’t very good, as is often the case, but it took a while to find out that you couldn’t solve a problem in your steel supply chain with the same system that was so good at tracing cholera outbreaks to tainted pumps.

[…]

This is an overreaction to a terrible failure, for two reasons. First, big bureaucracies fail all the time, especially in the face of novel threats. A large institution is like a battleship: hard to sink, but also hard to turn. Public health experts of earlier eras made grave mistakes, like dumping London’s untreated sewage into the Thames; public health experts of the future will too. The more important question is whether they correct themselves, as it seems to me the CDC is now doing.

The second is that this is not your grandfather’s public health system. Public health experts were, in a way, too successful; they beat back our infectious disease load to the point where most of us have never had anything more serious than Human papillomavirus or a bad case of the flu. This left them without that much to do. So they reinvented themselves as the overseers of everything that might make us unhealthy, from French Fries to work stress.

As with the steel mills, these problems are not necessarily amenable to the organizational tools used to tackle tuberculosis. The more the public and private health system are focused on these problems, the less optimized they will be for fighting the war against infectious disease. It is less surprising to find that they didn’t know how to respond to a novel infectious disease than it would have been to discover that they botched a new campaign against texting and driving.

Megan McArdle, “Will Ebola Be Good for the CDC?”, Bloomberg View, 2014-10-20.

October 1, 2015

“Siege economics”

Filed under: Britain, Economics, History, WW2 — Tags: , , , — Nicholas @ 04:00

Paul T. Horgan explains why socialist politicians love “siege economics”:

Labour loves siege economies, really adores them. It allows full throated socialism to operate, enabling properly-selected and correctly-motivated state officials to mediate on every commercial transaction between individuals and entities, all in the name of necessity. This is Pitt’s ‘creed of slaves’, using controls to dictate how much can be sold to whom and if it can be sold at all.

Socialists love these economic dictatorships where the function of money as a storage of value and provider of price information is destroyed, where maximum wages and profits are imposed through penal taxation. State ownership of commerce is a given.

Socialists swoon at the thought of regulating demand by rationing supplies to all but a favoured few; it means there is no need for an economic strategy. No need for an interest rate policy if no amount of borrowed money can buy anything. Official inflation is perpetually low when prices are under statutory regulation, despite the inevitable shortages and consequent rise of the black market and the crime of hoarding newly-scarce everyday goods, which requires more Peoples’ Commissars to detect and punish.

Ordinary people who are forced to commit economic crimes just for everyday survival are easier to dominate as their guilt promotes a constant fear of the State and denunciation by their neighbours and friends. Control a person’s economics and you control the person, and socialism is all about the control. And Labour loves to run people’s lives by occupying the commanding heights of the economy to maximise dependency and promote clientelism in the electorate.

This explains why Labour were in their element when Churchill left Atlee, Morrison and Bevin to run the civilian economy while Britain’s greatest warlord used all his energies to create and focus a a domestic military machine and a global coalition to destroy fascism. It is ironic, given modern socialist rhetoric, that the greatest anti-fascist in human history was a Conservative. Perhaps leftists still feel guilt over their fellow travellers’ 1930s pacifism.

September 30, 2015

QotD: Self-government and the scale problem

Filed under: Europe, France, Government, Greece, History, Quotations — Tags: , , — Nicholas @ 01:00

The pioneering political thinkers of the West — Greeks, mostly Athenian, including the sublime Aristotle — devoted much thought to this question of scale. Their consensus was that a state of more than about five thousand people (plus slaves, of course) was essentially unmanageable, at least by its citizens. Large empires or alliances of states might attempt to guarantee the freedom and independence of these small states (or might not), but the hard fact was that above around five thousand souls, the participation of the citizen in his own government ceases to be reality, and becomes rather a pious (or impious) myth.

Skip forward to 1789, the year of the French Revolution. As I have written elsewhere, perhaps the most permanent effect of that Revolution was the transformation of local government across France. Overnight, the seemingly timeless boundaries of 60,000 French parishes, each governed in its own unique way — were erased and replaced with 36,000 “communes,” governed identically and now under central direction from Paris.

This model was copied, across most of Europe, for even those national politicians who did not share in the ideals of the Revolution were attracted by the prospect of central power. France has mostly preserved her revolutionary communes, of a piece in land area, though now a city such as Paris is a single commune with more than two million people. In other countries, these small districts were merged and merged again, into ever larger territorial units, ever more bureaucratic and ever more subject to central direction.

[…]

According to me — and I have mulled this at length, with my own feeble mental powers — the Greeks were right. Five thousand is near the top end of a population that can attempt genuine self-government, deciding for themselves what they will and will not put up with, inside their own little domains. In huge conurbations, I would say that is about the maximum size for a self-governing urban borough or ward, necessarily small in area. Outside, rural districts would be rather larger, and there the question of maximum acreage comes into view, balanced against the minimum population to make any formal government necessary.

Boundaries are important. Above the parish or ward, the county seems to be the next higher natural level of government, for the resolution of issues that cross parish boundaries. But at all levels, attention should be given to geography. The boundaries of the jurisdiction should correspond as closely as possible to natural landmarks, and elevations of land, such that e.g. riparian responsibilities can be assigned to the visibly appropriate jurisdiction.

What has all this got to do with the environmental management of the planet? Everything. Where people can see the cause and effect of their actions, problems such as pollution will be tackled, and beauties such as birdsong will not be sacrificed. If the problems aren’t tackled, and the blight spills into another jurisdiction, penalties may be imposed from a higher level, but first give people the chance and the power to solve their own problems at source. Give them ownership, and stable rule by law — not by central planning which rewrites laws for its own convenience.

David Warren, “Five thousand max”, Essays in Idleness, 2015-06-19.

September 21, 2015

Command and Control Solutions

Published on 18 Mar 2015

What happened to the cleanliness of your clothes after the U.S. Department of Energy issued new washing machine requirements? The requirements — which require washers to use 21% less energy — mean that washers actually clean clothes less than they used to. Is “command and control” an efficient way to achieve the desired outcome (which is less pollution)? Rather than a standard requirement, such as the Department of Energy issued, a tax on electricity would provide users with greater flexibility in their washing—and would prompt people to purchase machines that use energy more efficiently and keep their clothes clean.

Are there times when a command and control solution to a problem makes the most sense? We look at the eradication of smallpox as one example.

September 9, 2015

QotD: The iSocialist

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

Every ideology needs to believe in its inevitability. Religions get their inevitability from prophecies; secular ideologies get theirs from the modernist fallacy.

The modernist fallacy says that history is moving on an inevitable track toward their ideology. Resistance is futile, you will be liberalized. Marxism predicted the inevitable breakdown of capitalism. Obama keeps talking about being “on the right side of history” as if history, like a university history curriculum, has a right side and a wrong side. All everyone has to do is grab a sign and march “Forward!” to the future.

The bad economics and sociology around which the left builds its Socialist sand castles assume that technological progress will mean improved control. Capitalism with its mass production convinced budding Socialists that the entire world could be run like a giant factory under technocrats who would use industrial techniques to control the economic production of mankind in line with their ideals.

The USSR and moribund European economies broke that theory into a million little pieces.

The dot com revolution with its databases and subtle tools for manipulating individuals on a collective basis led to a Facebook Socialism that crowdsources its culture wars and “nudges” everyone into better habits, lower body masses and conveniently available death panels.

The iSocialist, like his industrial predecessor, assumes that technology gives superintelligent leftists better tools for controlling everything. The planned economy failed in the twentieth because the tools of propaganda posters, quotas and gulags were too crude. This time he is certain that it will work.

Daniel Greenfield, “Science is for Stupid People”, Sultan Knish, 2014-09-30.

August 20, 2015

How Buildings Learn – Stewart Brand – 4 of 6 – “Unreal Estate”

Filed under: Architecture, Randomness, Technology — Tags: , , , , — Nicholas @ 03:00

Published on 10 Jun 2012

This six-part, three-hour, BBC TV series aired in 1997. I presented and co-wrote the series; it was directed by James Muncie, with music by Brian Eno.

The series was based on my 1994 book, HOW BUILDINGS LEARN: What Happens After They’re Built. The book is still selling well and is used as a text in some college courses. Most of the 27 reviews on Amazon treat it as a book about system and software design, which tells me that architects are not as alert as computer people. But I knew that; that’s part of why I wrote the book.

Anybody is welcome to use anything from this series in any way they like. Please don’t bug me with requests for permission. Hack away. Do credit the BBC, who put considerable time and talent into the project.

Historic note: this was one of the first television productions made entirely in digital— shot digital, edited digital. The project wound up with not enough money, so digital was the workaround. The camera was so small that we seldom had to ask permission to shoot; everybody thought we were tourists. No film or sound crew. Everything technical on site was done by editors, writers, directors. That’s why the sound is a little sketchy, but there’s also some direct perception in the filming that is unusual.

August 10, 2015

Price Controls and Communism

Published on 25 Feb 2015

What happens when the prices of all goods are controlled? Under communism, or a command economy, this is exactly what occurs. As a result, all of the effects of price controls become amplified: there are even more shortages or surpluses of goods, lower product quality, longer lines and more search costs, more losses in gains from trade, and more misallocation of resources. As we have seen, universal price controls destroy market coordination and create a system of planned chaos in which it becomes more difficult for consumers to get the goods and services they want and need.

August 3, 2015

QotD: The impossibility of central planning

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

Knowledge is local in the economic system, meaning that the centre of that system can never actually access all of the required information — most certainly not in anything like a reasonable timescale — to be able to plan effectively.

Unsaid but implied is the idea that, given the tossers who get elected to do the planning, a central planning system wouldn’t work even if the planners themselves worked as hard as they could. But the real killer point is that we simply don’t know what it is that we’re trying to plan.

What actually is the algorithm? What is it that we’re trying to optimise with our plan for the economy? Tractor production has rather gone out of favour as a measure of human happiness, so what actually is it that we’re going to try and maximise the output of?

The standard answer is that we want to maximise human utility, which can descend into a form of madness where economists try to measure utility, although the concept is sound enough. But what the buggery is that? What blend of shiny-shiny, bling, housing, hip-hop concerts and smoked salmon actually maximises human utility as a whole?

As befits one honoured to write for El Reg, my desire for shiny-shiny is reasonable while my demand for bling, zero. I live and work in two separate countries, so my housing consumption is higher than many; smoked salmon is merely an interesting treat; and hip hop (in concerts or otherwise) provides me with negative utility. That mixture will be different for each and every one of us: I’m sure we could find several hip-hop fans among the commentards who enjoy jiggin’ wiv da beat.

In fact there are 65 million different mixtures of what contributes to human utility, in a country of 65 million humans. Don’t forget that as prices change, then so does each and every one of those utility functions. They also change as technology changes: what rational planner would have predicted the success of the iPhone back in 2007?

So, in theory, we don’t and cannot know what the hell we’re trying to plan.

Tim Worstall, “Gov’t control? Hah! It’s IMPOSSIBLE to have a successful command economy”, The Register, 2014-08-13.

July 20, 2015

Price Floors: The Minimum Wage

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

Published on 25 Feb 2015

Price floors, when prices are kept artificially high, lead to several consequences that hurt the consumer. In this video, we take a look at the minimum wage as an example of a price floor. Using the supply and demand curve and real world examples, we show how price floors create surpluses (such as a surplus in labor, or unemployment) as well as deadweight loss.

July 15, 2015

Price Ceilings: Rent Controls

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

Published on 25 Feb 2015

Rent controls are a type of price ceiling. We’ll use our diagram to show how rent controls create shortages by reducing the supply of apartments available on the market. Rent controls also result in reduced product quality, since they reduce the returns to landlords from renting apartments. Landlords respond by cutting costs or performing less maintenance, leading to lower quality. There are search costs associated with rent controls, and they also lead to a misallocation of resources since apartments are not allocated to renters who value them the most.

July 9, 2015

Price Ceilings: Misallocation of Resources

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

Published on 25 Feb 2015

Suppose there is a mild winter on the West Coast and a harsh winter on the East Coast. As a result of the weather, people on East Coast will demand more home heating oil, bidding up the price. Under the price system, entrepreneurs will be incentivized to take oil from where it has lower value on West Coast to where it has higher value on the East Coast. But when price controls are in place, even though the demand is still there from the East Coast, there is no signal of a higher price, eliminating the incentive for entrepreneurs to transport oil from west to east. In fact, this happened in the 1970s, resulting in oil going to lower valued uses on the West Coast while many people on the East Coast didn’t have enough oil to heat their homes. In this video, we’ll look at a diagram to visualize this misallocation of resources.

July 6, 2015

Price Ceilings: Deadweight Loss

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

Published on 25 Feb 2015

In this video, we explore the fourth unintended consequence of price ceilings: deadweight loss. When prices are controlled, the mutually profitable gains from free trade cannot be fully realized, creating deadweight loss. With price controls, less trading occurs and both buyers and sellers miss out on the mutually profitable gains that could have occurred. We’ll show how to calculate deadweight loss using our example of a price ceiling on gasoline.

June 27, 2015

Price Ceilings: The US Economy Flounders in the 1970s

Published on 25 Feb 2015

In 1971, President Nixon, in an effort to control inflation, declared price increases illegal. Because prices couldn’t increase, they began hitting a ceiling. With a price ceiling, buyers are unable to signal their increased demand by bidding prices up, and suppliers have no incentive to increase quantity supplied because they can’t raise the price.

What results when the quantity demanded exceeds the quantity supplied? A shortage! In the 1970s, for example, buyers began to signal their demand for gasoline by waiting in long lines, if they even had access to gasoline at all. As you’ll recall from the previous section on the price system, prices help coordinate global economic activity. And with price controls in place, the economy became far less coordinated. Join us as we look at real-world examples of price controls and the grave effects these regulations have on trade and industry.

« Newer PostsOlder Posts »

Powered by WordPress