Quotulatiousness

June 5, 2020

Toronto radio station to be required to denounce itself in Canadian Content “Struggle session”

Filed under: Cancon, Media — Tags: , , , , , — Nicholas @ 05:00

Wikipedia defines a “Struggle session” as “a form of public humiliation and torture that was used by the Communist Party of China (CPC) at various times in the Mao era, particularly years immediately before and after the establishment of the People’s Republic of China and during the Cultural Revolution. The aim of a struggle session was to shape public opinion and humiliate, persecute, or execute political rivals and those deemed class enemies.” It seems that Canada is becoming just a bit more like China (whose “basic dictatorship” has been publicly admired by our Prime Minstrel), as Toronto’s CFRB has been found in violation of the whims of the Canadian Broadcast Standards Council:

The Canadian Broadcast Standards Council has ruled that a news broadcast that jokingly criticized Canadian content violates the Canadian Association of Broadcasters’ (CAB) Code of Ethics and the Radio Television Digital News Association of Canada’s (RTDNA) Code of Journalistic Ethics. The complaint arose from a December 2019 broadcast on Toronto radio station CFRB. David McKee used his lead-in to a report on a possible Netflix tax to state “the libraries of streaming services like Netflix, Disney+ could soon have more of a Canadian flavour that nobody watches or wants if the federal government gets its way.”

That comment was too much for one listener, who filed a complaint with the CBSC, arguing that “Canadian Content is important, and Mr McKee seems to forget that he is part of a Canadian Content Broadcaster. His opinions should be kept off of the regular news sections and limited to a specific commentary section if he is so transfixed on being a commentator.”

The CBSC agreed, taking aim at the words “nobody watches or wants”, which it concluded constituted inserting personal opinion into the broadcast […]

As a penalty, CFRB must now broadcast that it breached the ethics standards on several broadcasts. While few will likely take notice, Canadians should take notice of the regulatory policing of the line between news and commentary on a radio broadcast. Indeed, one wonders if there would be a similar outcome if the broadcaster had expressed support for Canadian content.

Moreover, the Broadcast and Telecommunications Legislative Review Panel, which Canadian Heritage Minister Steven Guilbeault plans to implement, recommended extending Canada’s broadcast regulatory framework to the Internet, including sites and services that aggregate the news.

April 29, 2020

QotD: “Ethical” ways to prevent scientific progress

Filed under: Bureaucracy, Health, Politics, Quotations, Science — Tags: , , , — Nicholas @ 01:00

The stigmatization of science is also jeopardizing the progress of science itself. Today anyone who wants to do research on human beings, even an interview on political opinions or a questionnaire about irregular verbs, must prove to a committee that he or she is not Josef Mengele. Though research subjects obviously must be protected from exploitation and harm, the institutional-review bureaucracy has swollen far beyond this mission. Its critics have pointed out that it has become a menace to free speech, a weapon that fanatics can use to shut up people whose opinions they don’t like, and a red-tape dispenser that bogs down research while failing to protect, and sometimes harming, patients and research subjects. Jonathan Moss, a medical researcher who had developed a new class of drugs and was drafted into chairing the research-review board at the University of Chicago, said in a convocation address, “I ask you to consider three medical miracles we take for granted: X-rays, cardiac catheterization, and general anesthesia. I contend all three would be stillborn if we tried to deliver them in 2005.” The same observation has been made about insulin, burn treatments, and other lifesavers.

The hobbling of research is not just a symptom of bureaucratic mission creep. It is actually rationalized by many bioethicists. These theoreticians think up reasons that informed and consenting adults should be forbidden to take part in treatments that help them and others while harming no one. They use nebulous rubrics like “dignity,” “sacredness,” and “social justice.” They try to sow panic about advances in biomedical research with far-fetched analogies to nuclear weapons and Nazi atrocities, science-fiction dystopias like Brave New World and Gattaca, and freak-show scenarios like armies of cloned Hitlers, people selling their eyeballs on eBay, and warehouses of zombies to supply people with spare organs. The University of Oxford philosopher Julian Savulescu has exposed the low standards of reasoning behind these arguments and has pointed out why “bioethical” obstructionism can be unethical: “To delay by 1 year the development of a treatment that cures a lethal disease that kills 100,000 people per year is to be responsible for the deaths of those 100,000 people, even if you never see them.”

Steven Pinker, “The Intellectual War on Science”, Chronicle of Higher Education, 2018-02-13.

November 25, 2019

How to Be an Epicurean

Filed under: Books, History, Liberty — Tags: , , , , , — Nicholas @ 03:00

In City Journal, Michael Gibson reviews a recent book on Epicureanism by Catherine Wilson:

The Atomic Age had its anxieties, but Hugh Hefner believed he had a good diversion. “We aren’t a family magazine,” he announced in the first issue of Playboy in 1953. “We enjoy mixing up cocktails, an hors d’oeuvres or two, putting a little mood music on the phonograph, and inviting in a female acquaintance for a quiet discussion on Picasso, Nietzsche, jazz, sex.” By the 1960s, the music had grown louder, the colors more lurid, the conversations steamier. When Hefner died in 2017, he was considered either a hero of hedonism or an object lesson in the period’s squalid obsessions. Run a Google search today on Hefner, and you’ll often find the word “Epicurean” to describe him. Is this fair to Epicurus, the man who set forth the philosophy starting in 306 BC?

Marble bust of Epicurus. Roman copy of Greek original, 3rd century BC/2nd century BC. On display in the British Museum, London.
Photo by ChrisO via Wikimedia Commons.

For 23 centuries now, Epicureans have struggled mightily against variations of the Hefner caricature. If pleasure is the highest good, the goal of the best life, must we all strive to live in pajamas, smoking a pipe in a decadent Hollywood Hills estate? Though he didn’t live in a mansion off Sunset Boulevard, at the end of the fourth century BC, at the age of 32, the philosopher Epicurus founded the Garden, a school removed from Athens’s monuments of power and politics. An inscription at the entrance read: “Stranger, here you will do well to stay; here our highest good is pleasure.” (In Chicago, Hefner’s door bore an inscription: Si Non Oscillas, Noli Tintinnare, or “If you don’t swing, don’t ring.”)

Leading life in a modern Garden is the subject of Catherine Wilson’s latest book, How to Be an Epicurean: The Ancient Art of Living Well. There was always an air of Peter Pan-like anarchy at the Playboy Mansion, but as Wilson shows us, life in the Garden was quite different. Her book is a spirited tour and defense of Epicurean philosophy, as reconstructed by the fragments Epicurus left behind in tattered papyrus and as set forth in the epic poem De Rerum Natura, “On the Nature of Things,” by the Roman poet Lucretius.

What did these pleasure-seekers believe? They start with the elementary particles, atoms — tiny, colorless, without smell, shaped this way and that, indestructible, reshuffling themselves infinitely into all the marvelous forms we see, including ourselves. Their forms get swept away by time, only to recombine again into something new — possibly another universe. Blurred in this haze of metaphysics, most atoms fall straight downward into the void, but a few swerve, and from these deviations arise our free will and all that we see. At the California Institute of Technology, physicist Richard Feynman began his lectures by wondering what single sentence would be passed on to future generations, if, in a cataclysm, all scientific knowledge was destroyed. His answer: “The atomic hypothesis that all things are made of atoms.”

With the Epicureans, we have a historical test of Feynman’s thought. The world is made of nothing more than atoms in the void, but where did that take the ancient Greeks and Romans who believed it? Wilson begins with these basic building blocks because she asserts that mistaken beliefs about nature are the source of our deepest fears and hang-ups: death, punishment in an afterlife, failure in this one, lust for power, greed, jealousy, unrequited love, and status-jockeying. “Epicurean philosophy might be said to be based on the notion of the limit,” Wilson writes. By understanding the atom and the void, by knowing that the soul is mortal and the gods indifferent, that all things pass and are forgotten, we might then liberate ourselves from the grinding weight of superstition and the vanity of ambition and pursue pleasure without guilt.

March 30, 2019

QotD: Organic spices are a racket

Filed under: Bureaucracy, Business, Environment, Food, Health, Quotations, USA — Tags: , , — Nicholas @ 01:00

There’s a whole other piece to be written about organic spices, but the short version is that demanding organic spices is never going to be good for the farmers growing them. The U.S. standards for organic products amounts to ridiculously expensive and oftentimes unnecessary practices for small farmers who just don’t have the resources to do it. There are plenty of ways to arrive at ethical treatment of animals and land that are not part of our complicated organic laws. And that’s not to mention the people who demand organic products but will also freak out at the sight of a bug or won’t buy something that’s even a little bit misshapen or with a tiny brown spot on it. You can have pesticides or you can have pests.

Caitlin PenzeyMoog, “Salt grinders are bullshit, and other lessons from growing up in the spice trade”, The A.V. Club, 2017-04-06.

July 26, 2018

Isaac Asimov – Laws of Robotics – Extra Sci Fi – #2

Filed under: History, Media — Tags: , , , , — Nicholas @ 04:00

Extra Credits
Published on 24 Jul 2018

Asimov is famous for coining the Three Laws of Robotics, but to him they weren’t the “answer” to how robots could be used in the future — they were an intentional reflection of humanity’s potential failings.

July 6, 2018

QotD: “Afflict the comfortable and comfort the afflicted”

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

And there we have it in a nutshell. “Afflict the comfortable and comfort the afflicted.” That phrase, it should be pointed out, is not what “they” say it’s a journalist’s duty to do. That phrase was satirical, uttered by the fictional Irish bartender “Mr. Dooley,” the 1893 creation of Chicago Evening Post humorist Finley Peter Dunne. It was not intended to be taken seriously. Here’s the phrase in its original context: “Th’ newspaper does ivrything f’r us. It runs th’ polis foorce an’ th’ banks, commands th’ milishy, controls th’ ligislachure, baptizes th’ young, marries th’ foolish, comforts th’ afflicted, afflicts th’ comfortable, buries th’ dead an’ roasts thim aftherward.”

It was a satire of newspapers, not a how-to manual for journalists. Yet that is exactly what Jackman — and, I would wager, the majority of his crusading colleagues — has turned it into. And let’s just ruminate for a moment on what that means. Afflict (“cause pain or suffering to”) the comfortable (“those who are free from worry or pain”). In other words, give pain to those who don’t have it. What a motto, what a career description. Forget the five Ws, forget just telling the truth. Journalists are here to give pain to those they feel are too pain-free. And of course the press takes it upon itself to determine just who is comfortable enough to deserve affliction. Now, make no mistake, in an active situation on the street, the police do, absolutely, wield the power. They have a license to take lives, and they have the muscle of the state behind them. That said, can we really call inner-city beat cops “the comfortable”? Are we talking the Rockefellers here? Are we claiming that your typical parking-ticket scribe is a caviar-eating, yacht-racing, Fabergé-egg-collecting one-percenter?

That’s why those who elect themselves the rainmakers and the pain bringers are so dangerous — we are at the mercy of their judgment regarding who among us needs the misery they have decided they must inflict.

David Cole, “Afflicting the Comfortable”, Taki’s Magazine, 2016-10-06.

May 2, 2018

QotD: Islam and the “golden rule”

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

Let’s examine the ethical basis of our civilization. All of our politics and ethics are based upon a unitary ethic that is best formulated in the Golden Rule:

    Treat others as you would be treated.

The basis of this rule is the recognition that at one level, we are all the same. We are not all equal. Any game of sports will show that we do not have equal abilities. But everyone wants to be treated as a human being. In particular, we all want to be equal under the law and be treated as social equals. On the basis of the Golden Rule — the equality of human beings — we have created democracy, ended slavery and treat women and men as political equals. So the Golden Rule is a unitary ethic. All people are to be treated the same. All religions have some version of the Golden Rule except Islam.

FP: So how is Islam different in this context?

Warner: The term “human being” has no meaning inside of Islam. There is no such thing as humanity, only the duality of the believer and unbeliever. Look at the ethical statements found in the Hadith. A Muslim should not lie, cheat, kill or steal from other Muslims. But a Muslim may lie, deceive or kill an unbeliever if it advances Islam.

There is no such thing as a universal statement of ethics in Islam. Muslims are to be treated one way and unbelievers another way. The closest Islam comes to a universal statement of ethics is that the entire world must submit to Islam. After Mohammed became a prophet, he never treated an unbeliever the same as a Muslim. Islam denies the truth of the Golden Rule.

By the way, this dualistic ethic is the basis for jihad. The ethical system sets up the unbeliever as less than human and therefore, it is easy to kill, harm or deceive the unbeliever.

Now mind you, unbelievers have frequently failed at applying the Golden Rule, but we can be judged and condemned on its basis. We do fall short, but it is our ideal.

There have been other dualistic cultures. The KKK comes to mind. But the KKK is a simplistic dualism. The KKK member hates all black people at all times; there is only one choice. This is very straightforward and easy to see.

The dualism of Islam is more deceitful and offers two choices on how to treat the unbeliever. The unbeliever can be treated nicely, in the same way a farmer treats his cattle well. So Islam can be “nice”, but in no case is the unbeliever a “brother” or a friend. In fact, there are some 14 verses of the Koran that are emphatic — a Muslim is never a friend to the unbeliever. A Muslim may be “friendly,” but he is never an actual friend. And the degree to which a Muslim is actually a true friend is the degree to which he is not a Muslim, but a hypocrite.

Bill Warner, interviewed by Jamie Glazov in “The Study of Political Islam”, FrontPage Magazine, 2007-02-05.

April 19, 2018

QotD: The Epicurean view of the soul

Filed under: Greece, History, Quotations, Religion — Tags: , , , — Nicholas @ 01:00

The purpose of the 37 volumes of his On Nature is to free us from the fear of death and therefore from the control of priests and from the internal fears of the religion that Plato and his followers had in mind. Epicurus says:

    …[W]e must recognise generally that the soul is a corporeal thing, composed of fine particles, dispersed all over the frame….

    …[T]he rest of the frame, whether the whole of it survives or only a part, no longer has sensation, when once those atoms have departed…. Moreover, once the whole frame is broken up, the soul is scattered and has no longer the same powers as before, nor the same notions; hence it does not possess sentience either.

The atoms that comprise the soul are immortal. They are passed on from being to being like the torch in one of the Athenian races. But the larger structure of atoms that is the soul of any one individual is itself mortal. Once we are dead, our atoms are recycled. Since there is nothing but atoms moving in the void, we as individuals are annihilated. After death, there is nothing; and because of that, death is nothing. Epicurus says:

    Death is nothing to us; for that which has been dissolved into its elements experiences no sensations, and that which has no sensations is nothing to us.

After two thousand years of Christian spiritual hegemony, this may seem to many of us a gloomy doctrine. For Epicurus and his followers, however, it was a removal of the greatest barrier to happiness as they conceived it. That barrier was fear of endless punishment for the alleged sin of seeking their own happiness in life.

It may be, Lucretius says, that beating down religion is impious and the entry to a life of crime. Much rather, it is religion which has brought forth criminal and impious deeds. He lived before the most notable acts of religious mania. But he was poet enough to know the psychology of enthusiasm. In Book One of his poem, he produces one of the most striking of all denunciations of religion. He describes how, at the beginning of the Trojan War, the priests tell Agamemnon that a good passage across the Aegean required the sacrifice of his daughter. So a young girl was dragged to the altar for her throat to be cut by her own father.

    Tantum religio potuit suadere malorum he concludes — “Such are the evils to which religion leads”

He says later, in Book Three:

    Some wear out their lives for the sake of a statue or a name. Religion and its resulting fear of death can induce one man to violate honour, another to break the bonds of friendship, and to overthrow all natural feeling. It has induced men to betray their country or their parents for the sake of avoiding hellfire. For just as children tremble and fear all in the darkness, so we in the light of day often fear what is no more real. This terror must be dispersed, not by rays of sunshine nor by the bright shafts of daylight, but by the sight and understanding of nature.

It is Epicurus, he says, who brought us into this light of understanding. Do not fear the priests. Do not fear death. Pay no attention to dreams or omens. These latter have a natural explanation. The former have neither a divine nature nor a prophetic power, but they are the result of images that impact on us.

Follow the ethical teachings of Epicurus, and be happy.

None of this means, by the way, that Epicurus and his followers were atheists. They did accept the existence of gods, and were willing outwardly to conform to whatever cults were established. They only denied that the gods were immaterial, and that the gods had any interest in human affairs. Confronted with evidence for any supernatural event, they were content with insisting on a natural cause, whether or not they were able to think of one that convinced.

Sean Gabb, “Epicurus: Father of the Enlightenment”, speaking to the 6/20 Club in London, 2007-09-06.

September 11, 2017

QotD: Does inequality matter?

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

The central problem with the book, however, is an ethical one. Piketty does not reflect on why inequality by itself would be bad. To be sure, it’s irritating that a super rich woman buys a $40,000 watch. The purchase is ethically objectionable. She should be giving her income in excess of an ample level of 2 cars, say, not 20; 2 houses, not 7; 1 yacht, not 5 — to effective charities. Andrew Carnegie enunciated in 1889 the principle that “a man who dies thus rich dies disgraced.” Carnegie gave away his entire fortune. (Well, he gave it at death, after enjoying a castle in his native Scotland and a few other baubles.) But the fact that many rich people act in a disgraceful fashion does not automatically imply that the government should intervene to stop it. People act disgracefully in all sorts of ways. If our rulers were assigned the task in a fallen world of keeping us all wholly ethical, the government would bring all our lives under its fatherly tutelage, a nightmare achieved approximately before 1989 in East Germany and now in North Korea.

Notice that in Piketty’s tale the rest of us fall only relatively behind the ravenous capitalists. The focus on relative wealth or income or consumption is one serious problem in the book. Piketty’s vision of apocalypse leaves room for the rest of us to do very well indeed — rather non-apocalyptically — as in fact since 1800 we have. What is worrying Piketty is that the rich might possibly get richer, even though the poor get richer, too. His worry is purely about difference, about a vague feeling of envy raised to a theoretical and ethical proposition.

But our real concern should be with raising up the poor to a condition of dignity, a level at which they can function in a democratic society and lead full lives. It doesn’t matter ethically whether the poor have the same number of diamond bracelets and Porsche automobiles as do owners of hedge funds. But it does indeed matter whether they have the same opportunities to vote or to learn to read or to have a roof over their heads.

Adam Smith once described the Scottish idea as “allowing every man to pursue his own interest his own way, upon the liberal plan of equality, liberty and justice.” It would be a good thing, of course, if a free and rich society following Smithian liberalism produced a Pikettyan equality. In fact, it largely has, by the only ethically relevant standard of basic human rights and basic comforts. Introducing liberalism in Hong Kong and Norway and France, for instance, has regularly led to an astounding betterment and to a real equality of outcome — with the poor acquiring automobiles and hot-and-cold water at the tap that were denied in earlier times even to the rich, and acquiring political rights and social dignity that were denied in earlier times to everyone except the rich.

Deirdre N. McCloskey, “How Piketty Misses the Point”, Cato Policy Report, 2015-07.

December 1, 2016

Rolling Stone calls out the Washington Post for shoddy journalism

Filed under: Media, Politics, Russia, USA — Tags: , , , , — Nicholas @ 08:21

Pot, I’d like to introduce you to Kettle. Kettle, please meet Pot.

However, that’s not to say that Rolling Stone is wrong about this:

Last week, a technology reporter for the Washington Post named Craig Timberg ran an incredible story. It has no analog that I can think of in modern times. Headlined “Russian propaganda effort helped spread ‘fake news’ during election, experts say,” the piece promotes the work of a shadowy group that smears some 200 alternative news outlets as either knowing or unwitting agents of a foreign power, including popular sites like Truthdig and Naked Capitalism.

The thrust of Timberg’s astonishingly lazy report is that a Russian intelligence operation of some kind was behind the publication of a “hurricane” of false news reports during the election season, in particular stories harmful to Hillary Clinton. The piece referenced those 200 websites as “routine peddlers of Russian propaganda.”

The piece relied on what it claimed were “two teams of independent researchers,” but the citing of a report by the longtime anticommunist Foreign Policy Research Institute was really window dressing.

The meat of the story relied on a report by unnamed analysts from a single mysterious “organization” called PropOrNot – we don’t know if it’s one person or, as it claims, over 30 – a “group” that seems to have been in existence for just a few months.

It was PropOrNot’s report that identified what it calls “the list” of 200 offending sites. Outlets as diverse as AntiWar.com, LewRockwell.com and the Ron Paul Institute were described as either knowingly directed by Russian intelligence, or “useful idiots” who unwittingly did the bidding of foreign masters.

Forget that the Post offered no information about the “PropOrNot” group beyond that they were “a collection of researchers with foreign policy, military and technology backgrounds.”

Forget also that the group offered zero concrete evidence of coordination with Russian intelligence agencies, even offering this remarkable disclaimer about its analytic methods:

“Please note that our criteria are behavioral. … For purposes of this definition it does not matter … whether they even knew they were echoing Russian propaganda at any particular point: If they meet these criteria, they are at the very least acting as bona-fide ‘useful idiots’ of the Russian intelligence services, and are worthy of further scrutiny.”

What this apparently means is that if you published material that meets their definition of being “useful” to the Russian state, you could be put on the “list,” and “warrant further scrutiny.”

November 30, 2016

Minnesota’s generous (hidden) gift to six government-appointed MFSA officials

Filed under: Football, Government, Sports, USA — Tags: , , , , , — Nicholas @ 04:00

Minnesota taxpayers contributed nearly half of the costs to build the new stadium that the Minnesota Vikings call home (“one of the largest public subsidies ever given to a sports facility”). The state government appointed a six-person board to negotiate the state’s share of the costs. Now, it comes to light that those six people get free luxury suite tickets to not only Viking home games, but every event held at the stadium:

Six government appointees, including the son of a vice president, who negotiated how much public money would be spent building the Minnesota Vikings’ new football stadium get free access to luxury boxes for all events in the stadium.

Which, you know, might call into question how hard they really negotiated for the taxpayers on that one.

The Minneapolis Star-Tribune reports that the six members of the Minnesota Sports Facilities Authority (MSFA), the quasi-government agency created in 2012 to oversee the public subsidies for the building of U.S. Bank Stadium, get free tickets to two lower-level luxury suites for all events held there. Even though taxpayers covered more than half of the cost of the $1.1 billion stadium, which opened earlier this year, the public is being kept in the dark about who occupies those 36 seats and the adjoining luxury suites during Vikings home games and other events.

The team claims that the suites are used for “marketing purposes,” but the Star-Tribune‘s investigation found that family and friends of the board members are usually in attendance too.

Maybe the best part of the story is the moment when two members of the MSFA board (chairwoman Michele Kelm-Helgen and executive director Ted Mondale) try to justify their sweet, free, and secret perk by arguing that they “work long hours on game days and spent long nights negotiating on behalf of taxpayers during construction of the building, so having friends and family there is reasonable.”

[…]

For anyone who isn’t part of this special cadre of insiders getting special access to the suites for free would have to shell out more than $20,000 for season tickets in similar suites at the stadium. Since the six members of the MSFA board also have access to the suites for all other events at the stadium, the actual value of their seats is in excess of that figure.

The whole thing raises ethical questions since public officials in Minnesota are not allowed to receive gifts, including special privileges or access not otherwise available to the general public. That gift ban has a loophole allowing public officials to accept such special freebies if it’s part of their official duties.

As I wrote back in 2012:

As you’ll know if you’ve read the blog for any length of time, I’m a big fan of the Minnesota Vikings, despite never having lived there or even visited the state. I’d be very upset if they became the L.A. Vikings. But I also totally sympathize with Minnesotans who don’t want their taxes being used to give corporate welfare to the billionaire owner of the football club. Pouring money into facilities for professional sports teams is one of the very worst ways to use tax dollars, as the lads at Reason.tv explain:

November 24, 2016

Solutions to Moral Hazard

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

Published on 23 Sep 2015

What are some solutions to moral hazard? We could try to make information less asymmetric — meaning both parties have similar information, making it harder for one party to exploit the other. We could also try to reduce the incentive of the agent to exploit their information advantage. Online ratings and reviews on Yelp, Angie’s List, or Amazon, for instance, incorporate both of these solutions. The reviews give you more information about a product or service and close the information gap between buyers and sellers. In addition, sellers’ incentives change, as they now have to think about their reputation. They likely won’t want to exploit you if they know it will result in a negative online review.

What are some other approaches to modifying the incentives of those with an information advantage? One approach is to split the diagnosis of a problem from the actual work that needs to be done — for instance, home inspectors don’t fix the problems they identify during their inspection. Another approach is to alter the payment structure to change incentives. For instance, a lawyer is less likely to run up their hours when payment is contingent on winning your case as opposed to the number of hours they work on the case. Ethics also plays a role. Doctors swear to the Hippocratic Oath, which provides them an incentive to not exploit their information advantage. As you can see, there are many solutions to addressing moral hazard.

November 16, 2016

Moral Hazard

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

Published on 23 Sep 2015

Imagine you take your car in to the shop for routine service and the mechanic says you need a number of repairs. Do you really need them? The mechanic certainly knows more about car repair than you do, but it’s hard to tell whether he’s correct or even telling the truth. You certainly don’t want to pay for repairs you don’t need. Sometimes, when one party has an information advantage, they may have an incentive to exploit the other party. This type of exploitation is called moral hazard, and can happen in many situations — a taxi driver who takes the “long route” to get a higher fare from a tourist, for example. In this video, we cover moral hazard and what is known as the principal-agent problem.

November 17, 2015

QotD: The meaning of the word “professional”

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

We fell into a debate on the meaning of the word “professional,” which was promptly decided by rank. “Professional” turned out to mean an operation that proceeds smoothly; that is impersonal; that is free of temporal distractions and unnecessary costs; and in which everyone does what he’s told without thinking. (This last is called “teamwork.”) It is product-oriented, and the important thing is that the product should preserve market share, while remaining profitable. Let the philosophers decide whether it were any good. The product should rather be, in itself, smooth and mechanically predictable: anything warmly human in the packaging to be carefully faked by the experts in a professional advertising agency. Costs and benefits should be enumerable, and transparent to management at every stage. “Quality,” by contrast, “is purely subjective” — a question of fashion, for those specialists in hype.

“This is a business, not an art form,” I was told. (To be fair, this boss would himself have preferred to be an artist; but the art form would have been acting, and so he played his rôle.)

Now, ethics do come into this. A company that is flourishing will have clear “policies.” A lot of money could be lost if the company were caught cheating, on taxes or whatever; and secrets, as we know, can only be kept between two people if one of them is dead. Therefore, various “options” that might further streamline a profitable operation must be rejected on sight, as adding unconscionably to risk. But ethics cannot extend to any background worldview, that is agnostic on the fundamental human virtues, and thus essentially exploitative and sleazy.

As I have long observed, ethics are for people who have no morals.

I think “professionalism” came in, to the marketplace, about when craft standards were going out. It was discovered that a mass market had come into being, as a consequence of the technological innovations of some Industrial Revolution. Products were no longer made for specific buyers, but for demographic groups to purchase “off the shelf.” Souls could now be counted in the Gogolian manner, as “consumers” in terms of heads, eye-balls, little feet, &c. Broad-franchise representative democracy was a parallel development, and finally, the principles of marketing could be applied across the board. Far from consideration as an immortal soul, the individual could now be denominated as a capricious cypher: a one or else a zero at the “cashpoint.”

David Warren, “On managing”, Essays in Idleness, 2014-11-22.

August 15, 2015

Science in the media – from “statistical irregularities” to outright fraud

Filed under: Media, Science — Tags: , , , — Nicholas @ 02:00

In The Atlantic, Bourree Lam looks at the state of published science and how scientists can begin to address the problems of bad data, statistical sleight-of-hand, and actual fraud:

In May, the journal Science retracted a much-talked-about study suggesting that gay canvassers might cause same-sex marriage opponents to change their opinion, after an independent statistical analysis revealed irregularities in its data. The retraction joined a string of science scandals, ranging from Andrew Wakefield’s infamous study linking a childhood vaccine and autism to the allegations that Marc Hauser, once a star psychology professor at Harvard, fabricated data for research on animal cognition. By one estimate, from 2001 to 2010, the annual rate of retractions by academic journals increased by a factor of 11 (adjusting for increases in published literature, and excluding articles by repeat offenders). This surge raises an obvious question: Are retractions increasing because errors and other misdeeds are becoming more common, or because research is now scrutinized more closely? Helpfully, some scientists have taken to conducting studies of retracted studies, and their work sheds new light on the situation.

“Retractions are born of many mothers,” write Ivan Oransky and Adam Marcus, the co-founders of the blog Retraction Watch, which has logged thousands of retractions in the past five years. A study in the Proceedings of the National Academy of Sciences reviewed 2,047 retractions of biomedical and life-sciences articles and found that just 21.3 percent stemmed from straightforward error, while 67.4 percent resulted from misconduct, including fraud or suspected fraud (43.4 percent) and plagiarism (9.8 percent).

Surveys of scientists have tried to gauge the extent of undiscovered misconduct. According to a 2009 meta-analysis of these surveys, about 2 percent of scientists admitted to having fabricated, falsified, or modified data or results at least once, and as many as a third confessed “a variety of other questionable research practices including ‘dropping data points based on a gut feeling,’ and ‘changing the design, methodology or results of a study in response to pressures from a funding source’”.

As for why these practices are so prevalent, many scientists blame increased competition for academic jobs and research funding, combined with a “publish or perish” culture. Because journals are more likely to accept studies reporting “positive” results (those that support, rather than refute, a hypothesis), researchers may have an incentive to “cook” or “mine” their data to generate a positive finding. Such publication bias is not in itself news — back in 1987, a study found that, compared with research trials that went unpublished, those that were published were three times as likely to have positive results. But the bias does seem to be getting stronger: a more recent study of 4,600 research papers found that from 1990 to 2007, the proportion of positive results grew by 22 percent.

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