Quotulatiousness

November 6, 2018

An alternative explanation for the population explosion of the “land whales”

Filed under: Britain, Food, Health, History — Tags: , , — Nicholas @ 03:00

Tim Worstall suggests that the real reason for our collective expanding waistlines isn’t evil capitalist exploiters pushing us to eat unhealthy fast food:

We don’t, for example, eat more than our forefathers did. Sure, we can all play games with how much people lie on those self-reported surveys about calorie intake. True, to make sense of it being lies we’d have to assume that people lie more now than they used to. So, instead, let’s look at official guidance. In WW1 the aim was, for the Army, to stuff some 4,300 calories a day into each frontline soldier out there in the trenches. Something they largely achieved too. In WWII rationing peeps started to worry that diets of less than 2,900 calories a day would lead to weight loss. Today official guidance is that 2,500 a day for men, 2,000 for women. Well, that’s the last one I recall at least.

I suspect that people actually do lie more on self-reporting surveys of that kind than they once did, if only because we’ve had several decades of prissy lecturing about what we should consume … the temptation to shade the answers in the “right” direction I’m sure plays some part, but not enough to explain the obesity crisis. If you doubt that this happens, remember that a significant number of people vote for the party they expect to win rather than the party that best represents their interests or desires. Sucking up to teacher is a very common psychological trait.

However, back to the swelling obesity numbers:

Actually, 40 years ago is about when central heating became a commonplace in Britain. Anyone of my maturity in years – which includes G. Monbiot – and even those from thoroughly upper middle class backgrounds – both me and G. Monbiot – will recall ice on the inside of bedroom windows in winter. Houses simply were not fully heated throughout. Actually, pretty much the entire country was in what we’d now call fuel poverty. That fuel poverty that we have standards for these days, you should be able to heat the entire house to such and such a temperature on less than 10% of income. A standard which just about no one pre-1950 reached, few pre-1970 did.

America had that heating rather earlier than we did. Americans also became land whales that little bit earlier than we did. Anecdata I know but a move to the US in 1981 was marked with an observation of how warm Americans kept their houses in winter.

We do actually spend quite a lot on all this public health stuff these days. It might be worth someone doing a little study of correlations. Different nations became lardbuckets at different times. Different nations adopted central heating as a commonplace at different times. Why don’t we go see what the correlation between those two is?

After all, the idea that mammals use some significant portion of their energy intake for body temperature regulation isn’t exactly fringe science, is it?

October 16, 2018

Fast food outlets cluster in poorer areas – because they’re low-margin businesses

Filed under: Business, Food, Health — Tags: , , — Nicholas @ 03:00

Tim Worstall debunks the “fast food restaurants are preying on the poor” myth:

Contrary to the musings of Rod Liddle in the Sunday Times there is a cause and effect going on over the placings of fast food restaurants or outlets in British towns. The provision of burnt chicken and maybemeatburgers to the hoi polloi is a hugely competitive business. This means that it is also low margin. So, where do you put the places that are in a low margin line of business?

[…] this is about clustering of those nosh joints. Why are they in the poor areas? Well, for the same reason the poor are in the poor areas. They’re cheap. This being rather the defining point about poor people, they look for cheap places to live. The two are therefore synonymous, poor and cheap. And what is it we’ve just said about nosh? That it’s a low margin business. Therefore purveyors of the deep fried and battered saveloy – that joy of the ages – are going to be clustered in the poor part of town where they can afford the rents.

And that’s our cause and effect. Some poor people are poor because they’re, or have been, ill. They’re in the cheap part of town because they’re poor. Fried gut shops are in poor areas because they don’t make much money therefore they’re in the poor part of town. Absolutely any analysis of the phenomenon which doesn’t account for this is wrong. And no analysis done by anyone does take account of it – therefore all current analyses of the point are indeed wrong.

There are also other factors to consider, including the fact that poor people are less likely to have the ability or facilities to prepare their own meals (or the habit of cooking for themselves), so the easy availability of high-calorie fast food or snacks is rather important to them. When you’re hungry and don’t have a fridge or freezer full of food at home, a burger or fried chicken has a much stronger appeal than it does to more wealthy folks with well-stocked pantries. If you’ve been raised on high-fat/high-salt foods, the “healthier” alternatives may not appeal, as they also are less flavourful than their fast food options.

October 2, 2018

Costs of Inflation: Financial Intermediation Failure

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

Marginal Revolution University
Published on 7 Feb 2017

In the previous video, we learned that inflation can add noise to price signals resulting in some costly mistakes from price confusion and money illusion. Now, we’ll look at how it can interfere with long-term contracting with financial intermediaries.

Let’s say you want to take out a big loan, such as a mortgage on a house. The financial intermediary (in this case, a commercial bank) is going to charge you an interest rate as their profit for loaning you the money. In this situation, inflation has the potential to work against you or it can work against the bank.

If the bank charges you a nominal interest rate (i.e., the interest rate on paper before taking inflation into account) of 5% and inflation climbs unexpectedly to 10% for the year, the real interest rate (nominal minus inflation) falls to -5%. The bank actually loses money. However, if inflation has been higher and banks are charging 15% for mortgages and inflation rates fall unexpectedly to 3%, you’re stuck paying a real interest rate of 12%!

The above scenarios are similar to what actually happened in the United States in the 1960s and 1970s. Inflation was low in the 60s. But then in 70s, inflation rates climbed up unexpectedly. People that purchased a home in the 60s lucked out with low interest rates on their mortgages coupled with higher inflation, and many were able to pay off the loans more quickly than expected. But anyone that purchased a higher interest rate mortgage in the 70s only saw inflation fall back down. It was good for the banks and a costly choice for the homeowners. They were saddled with a high-interest mortgage while lower inflation meant a lower increase in wages.

It’s not that the people buying homes in the 1960s were smarter than those in the 70s. As we’ve noted in previous videos, inflation can be very difficult to predict. When banks expect that inflation might be 10% in the coming years, they will generally adjust their nominal interest rates in order to achieve the desired real interest rate. This relationship between real and nominal interest rates and inflation is known as the Fisher effect, after economist Irving Fisher.

We can see the Fisher effect in the data for nominal interest rates on U.S. mortgages from the 1960s through today. As inflation rates rise, nominal interest rates try to keep up. And as the inflation rates fall, nominal interest rates trail behind.

Now, if inflation rates are both high and volatile, lending and borrowing gets scary for both sides. Long-term contracts like mortgages become more costly for everyone with much higher risk, so it happens less. This is damaging for an economy. Coordinating saving and investment is an important function of the market. If high and volatile inflation is making that inefficient and less common, total wealth declines.

Up next, we’ll explore why governments create inflation in the first place.

September 7, 2018

QotD: Government distortion of the housing market

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

Behind the veneer of free-market governance is a deep expanse of government involvement in massive areas of the economy, such as the housing market and health care. People don’t make decisions on housing and health-care concerns every day, but when they do, they would benefit from the information that markets provide about whether they can afford a large house or whether a particular drug is worth the price. Government distortion of these key markets has scrambled these signals.

An annual congressional report, “Estimates of Federal Tax Expenditures,” gives insight into how Washington manipulates supply and demand in these sectors. Consider house prices. This year, Washington will pay homeowners $99 billion in forgone taxes to borrow money to purchase or refinance a house or to sell that house and reap the profit. Americans will buy or sell about $600 billion worth of houses this year. Government subsidy, then, represents nearly one-sixth of this market. The federal government also provides a guarantee for most mortgages, thanks to Fannie Mae and Freddie Mac, the two government-supported mortgage companies that benefited for decades from an implicit government guarantee before they got an explicit guarantee during the 2008 financial crisis.

These subsidies have fired the growth of the housing industry. Between 1975 and 1979, the U.S. Treasury paid out $102.6 billion in mortgage-interest breaks in today’s dollars. Between 2015 and 2019, the Treasury will pay out $419.8 billion in such tax favoritism — a more than fourfold rise, nearly ten times the population increase. The hike is particularly extraordinary, considering that in the late 1970s, the annual interest rate on a mortgage was 9 percent, twice what it is today. Taking today’s lower rates into account, Washington has increased the mortgage subsidy more than eightfold.

It’s no surprise that mortgage debt has soared, to $9.5 trillion, from $2.6 trillion in inflation-adjusted dollars in 1981. Back then, mortgage debt constituted 31 percent of our nation’s GDP. Today, it makes up nearly 53 percent. [Dierdre] McCloskey, who thinks that free markets are generally healthy, acknowledges that “there are examples of the price signal not coming through.” The mortgage-interest deduction is “a silly idea,” she says, yet “very hard to change.”

Indeed, government subsidy is a critical factor in whether families can afford to purchase a home, and what kind of home, how large, and in what zip code. The home-mortgage deduction, then, helps determine how people live — yet we barely notice. Few of us consider how the government shapes one of the biggest decisions we’ll ever make, or how the U.S. government’s presence in the housing market maintains the value of our homes.

Nicole Gelinas, “Fake Capitalism: It’s not free markets that have failed us but government distortion of them”, City Journal, 2016-11-06.

August 2, 2018

Manufacturing the Engineered Wood Floor Joists

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

Bob Vila
Published on 30 Mar 2015

Bob visits the Willamette I-Joist Mill in Woodburn, OR, before returning to Yonkers where the crew is assembling the second floor walls with structural insulated panels.

July 31, 2018

A gruesome experiment in determining the actual need for social housing

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

Tim Worstall discusses an aspect of the terrible Grenfell Tower fire in London that I hadn’t considered:

The fire at Grenfell Tower in London, 14 June 2017.
Photo by Natalie Oxford via Wikimedia Commons

That the Grenfell Tower fire was a tragedy is obvious. That lessons need to be learned is equally so. At which point, OK, which lessons would we like to learn? One that would be useful is to work out how much of social housing in London – for that’s what the evidence allows us to estimate – is illegally sublet. Or, as we might also put it, how much social housing in London is not actually needed as social housing?

For sublets are, by their nature, at something close to market rents, the difference between those and the social rents being pocketed by those doing the renting out.

No, we don’t know and that might be just because we’ve not been paying the detailed attention required. But it’s also something we tend to think will have been glossed over in investigations into the events. Something that perhaps should not have been glossed over – if indeed it has.

[…] The thought that a place, in the centre of London, where we could house – safely perhaps this time – several hundred people not be used to house several hundred people? We have a housing shortage or not?

However, it’s the insight into that larger question that interests. We know that some amount of social (and or council) housing in London is illegally sublet. The very fact that it is shows that it’s not needed. Those who are paying the landlord a reduced rent clearly don’t need the property as they’re not living in it. Those paying the near market rents don’t need social housing as they’re paying near market rents. Thus subletting shows that the entire structure of – at least in that instance – the social rent isn’t necessary.

So, how prevalent is it? We know that some of it occurred at Grenfell. We’ve all admitted it, clearly, for we’ve not insisted that only those on the tenants’ listing are those who should be granted aid for having had their home burned down. So, we know there’s some. So, how much?

It’s unlikely that we’ve as much information on this concerning any other building in the country. Thus this is an excellent place to actually conduct such research.

June 8, 2018

The spiritual and aesthetic brutality of Brutalist architecture

Filed under: Architecture, Britain, Government, History — Tags: , , , — Nicholas @ 03:00

In City Journal, Catesby Leigh looks at (and shudders at) some of the best-known examples of Brutalist architecture in the UK:

World War II left Britain in urgent need of rebuilding. The Blitz destroyed 200,000 homes and left another quarter-million uninhabitable. In the severely overcrowded urban slums, often blighted by industrial pollution, families lived without indoor plumbing, and they shared outdoor privies with neighbors. Others found shelter in temporary prefabricated homes produced by the aviation industry. In 1946, the government legislated the creation of new towns that, along with extensions of existing ones, would eventually be home to more than 2 million Britons. Aside from the new towns, a multitude of urban renewal and greenfield-development schemes emerged during the economically vigorous 1950s and 1960s. Housing “estates” erected by city and other local councils, mainly for lower-income residents, sprang up at a vertiginous rate, along with new office buildings, civic centers, shopping centers, parking garages, schools, hospitals, factories, and university buildings. Some 1.5 million prewar homes were demolished in the three decades following the war. Old urban centers were transformed: “Post-war Birmingham rebuilt itself in austere raw concrete, like Kuwait and Hanover and Manila,” Christopher Beanland enthuses in Concrete Concept: Brutalist Buildings Around the World. But by the late 1960s, it was obvious that most Englishmen weren’t keen on the idea of Birmingham looking like Kuwait and Hanover and Manila.

[…]

Park Hill, half-abandoned council housing estate, Sheffield, England
Photo via Wikimedia Commons

Many of the buildings that Harwood’s book covers make you wonder whether it is really about architecture at all. Consider Park Hill (1961), a huge council-housing estate containing nearly 1,000 duplexes and single-level flats that partially replaced a demolished slum overlooking downtown Sheffield — a crime-ridden precinct that, for all its problems, had housed a resilient community. Laid out as four long, interconnected slabs inflected so as to form an utterly antiurban, vermiculated footprint, Park Hill owed an enormous debt to the Unité d’habitation. At every third story, it featured elevated open-air “streets” or “decks” — the Corbusian fetish of the day — that ran indoors and out, connecting the slabs. As at the Unité, the imagery was nakedly industrial, with the apartments stashed in a “bottle-rack” grid of concrete that soon assumed a depressingly drab tincture and also proved prone to spalling. A ruthless rationalism likewise asserted itself in the level height maintained throughout the complex, which ranged from four to 13 stories, despite the irregular, sloping site. Park Hill was less a work of architecture than a huge, strange contraption inflicted on the urban skyline. Visual amenity, such as it was, came in the form of soft-hued brick within the concrete grid.

A typical deck in the Park Hill Flats, Sheffield.
Photo via Wikimedia Commons.

As with many postwar housing projects, Park Hill offered practical amenities that residents had never before enjoyed: indoor plumbing, hot water, mechanical heating, even a sophisticated garbage-disposal system. Harwood mentions that, Britain’s many council-housing catastrophes notwithstanding, Park Hill “stood firm.” This is not true. By 1979, less than 20 years after its completion, Park Hill was an urban basket case — riddled with graffiti, terrorized by hooligans, afflicted with irruptions of black mold and the terrible stench resulting from waste-disposal blockages. Deserted decks and stairways provided criminals with multiple escape routes.

[…]

Local journalist Peter Tuffrey’s Sheffield Flats, Park Hill and Hyde Park: Hope, Eyesore, Heritage — whose title might seem to play ironically off Harwood’s but for the fact that the book appeared two years earlier — allows us to study a map and old photographs of the slum that Park Hill and Hyde Park supplanted. What we see are blocks, courts, and alleys teeming with row houses and low-rise tenements — streetscapes displaying a human scale, much solid construction, and considerable dereliction, all to be swept away by the desolation of the Corbusian superblocks.

Harwood doesn’t trouble herself with the Hulme Crescents (1972), another assemblage of concrete slabs on the vermiculated, “streets-in-the-sky” plan that rose from the blank slate of a demolished Manchester working-class district where 90,000 people once lived — “the human engine-room of the Industrial Revolution,” as Lynsey Hanley calls it in her largely autobiographical and often engrossing Estates: An Intimate History. The Crescents, designed to house more than 13,000, were conceived in emulation of Bath, the gorgeous Georgian city. Things didn’t work out that way.

“Almost immediately, the estate’s infrastructure began to suffer from the same problems that beset Park Hill and Broadwater Farm [a troubled north London estate]: leaky roof membranes, infestations of vermin and insects, uncontrollable damp, deserted walkways, and an endemic feeling of isolation,” Hanley notes. “The flats were so expensive to warm that many tenants never turned the central heating on, and communal areas were so difficult to maintain that the [city] council could not cope. When a small child died after falling off the top-floor ‘access deck’ of one of the Crescents in 1974, families decamped to the outskirts, belatedly following the rest of old Hulme.” The Crescents’ descent into chaos did make it possible for an anarchic punk scene to flourish in an upper-level hangout known as The Kitchen. The party ended with the estate’s demolition during the 1990s.

[…]

Still, the folly of concentrating lower-income populations in tall buildings eludes her, just as it eluded the Tory government that, in 1956, introduced hugely generous subsidies for the construction of high-rises, relative to row houses and semidetached houses. Not only are tall buildings much more expensive to build and maintain than houses; they were not even essential to achieving the residential densities that postwar planners sought. Tall buildings are highly artificial and complex structures housing temperamental machines, like elevators, that require a heightened degree of maintenance, often by highly paid technicians rather than handymen with toolboxes and stepladders, as Hanley observes. Tall buildings also require an elevated degree of social discipline, as well as security features like intercom systems, closed-circuit TV, and doormen or concierges. The tower blocks and high-rise slabs at the Barbican Estate, the carefully developed, elaborately landscaped, intensely picturesque Brutalist “bankers’ commune” in the City of London, have been very successful. The appropriate synecdoche for the Barbican’s low-end counterparts, however, might well be a broken-down elevator littered with trash, defaced by graffiti, and reeking of urine.

April 13, 2018

QotD: Reynolds’ Law

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

The government decides to try to increase the middle class by subsidizing things that middle class people have: If middle-class people go to college and own homes, then surely if more people go to college and own homes, we’ll have more middle-class people. But homeownership and college aren’t causes of middle-class status, they’re markers for possessing the kinds of traits — self-discipline, the ability to defer gratification, etc. — that let you enter, and stay, in the middle class. Subsidizing the markers doesn’t produce the traits; if anything, it undermines them.

Glenn Reynolds, Instapundit.com, 2010-09-23.

April 1, 2018

QotD: Modularity

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

I was able to repair my sewer system because everything in it was modular. The pipe leading out of the house was made up of identical sections of fired clay pipe put together like legos. They were made of durable stuff, and they were installed to work using gravity alone. They worked for over one hundred years despite the efforts of dozens of people to screw them up in the interim. If they were a unitary system of some sort, and they failed, I would have been forced to replace them as a unitary system. To translate, that would have meant moving into a cardboard box behind a strip mall dumpster.

I could fix the broken components, and leave the others alone. Don’t underestimate the importance of this concept. In housing, everyone desires everything to be unitary, and wants it to be brand new forever. I can’t fix a modern house. I’m a dolt, but that’s not why I can’t fix it. In general, everything to do with a modern house can be replaced, but it can’t be fixed. If your hardwood strip flooring is worn, you can sand it and refinish it and get another fifty years out of it. If someone puts a coal out on your Pergo floor, you can lump it, or you can replace it. It’s sold as permanent. In real life, “permanent” really means “disposable.” The word “sustainable” is similar. It really means “in need of massive, permanent subsidy.”

Sippican, “You May Not Believe This, But ‘Weapons-Grade Nuts’ Is the Name of My Psychedelic Furs Tribute Band. But I Digress”, Sippican Cottage, 2016-03-16.

March 6, 2018

Real estate reality may finally be changing minds in Silicon Valley

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

I’ve never lived in Silicon Valley, and my one vist there was over 25 years ago — but even then, I thought the real estate market was far higher than it should have been. The sale of a tiny house in Sunnyvale (for $2 million or $2,358 per square foot) is symbolic of real estate values all around the area, as the stories get told of new employees living in their cars because even on six-figure salaries, they can’t afford to buy or even rent near where they work. Iowahawk linked to a New York Times article which shows that some movers and shakers acknowledge that Silicon Valley has a serious problem:

February 8, 2018

The revenge of the return of the bride of rent control

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

Megan McArdle on the unexpected return of one of the very worst economic policies known to mankind, or as our beloved Prime Minister would insist “peoplekind”:

According to the Wall Street Journal, rent control seems to be making a retro comeback. Most forms of intelligent life could be forgiven for asking why.

Serial experimentation with this policy has repeatedly shown the same result. Initially, tenants rejoice, and rent control looks like a victory for the poor over the landlord class. But the stifling of price signals leads to problems. Rent control starts by producing some sort of redistribution, because the people with low rents at the time that controls are imposed tend to be relatively low-income.

But then incomes rise, and rents don’t. People with higher incomes have more resources to pursue access to artificially cheap real estate: friends who work for management companies, “key fees” or simply incomes that promise landlords they won’t have to worry about collecting the rent. (One of my favorite New York City stories involves an acquaintance who made $175,000 a year, and applied for a rent-controlled apartment. He asked the women taking the application if his income was going to be a problem; she looked at the application and said, “No, I think that ought to be high enough.”)

So the promise of economic justice erodes over time, as lucky insiders come to dominate rent-controlled apartments, especially because having gotten their hands on an absurdly cheap apartment, said elites are loathe to move and free up space for others.

The longer the rent-control policies remain, the more these imbalances grow. The gap between the rent that is charged, and the rent that could be charged in a competitive market, widens. Deprived of the ability to make a profit, landlords skimp on maintenance and refuse to build new housing. If you loosen the law to incentivize renovation, or new building, this only creates new forms of dysfunction: discrimination against tenants who might stay longer than a few years (limiting the ability to raise rents); a decontrolled market that has to absorb all of the excess demand created by locking up so much of the housing market in rent-controlled leases that rarely turn over; even landlords who renovate too often, the better to raise the rent. This arrangement is very good for the people who happen to have gotten their hands on a rent-controlled apartment, and very bad for everyone else, especially newcomers to the city.

January 27, 2018

Econ Duel: Rent or Buy?

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

Marginal Revolution University
Published on 13 Sep 2016

Owning a home is a huge part of the American Dream. But is the dream of home ownership really all it’s cracked up to be?

In this new Econ Duel from Marginal Revolution University, Professors Tyler Cowen and Alex Tabarrok weigh in on the issue. Each representing a side of the home ownership debate, the two professors ask what’s smarter — to rent, or to buy?

On the “buy” side, Tyler Cowen shares the tax advantages of buying a home as well as the effect home ownership has on one’s stability and savings regimen. Does buying a home force us into better savings habits?

Against those arguments, we have Alex Tabarrok, coming down on the “rent” side of the equation.

Among other points, he talks about the real beneficiary of tax breaks (hint: It may not be you!). Along with that, Alex tackles the trials and tribulations of home-buying, in places like San Francisco, New York, or Boston, where a combination of scarce building permits and increased demand drive up home prices. Plus, doesn’t owning a home — and committing a 20% down payment — break the diversification rule of good investing?

All that said, though, here’s the real question that matters — which side are YOU on? Watch and let us know in the comments!

November 16, 2017

Housing woes in the downtown core

Filed under: Britain, Humour — Tags: , , — Nicholas @ 03:00

A timely and clearly heartfelt plea by Eleanor Shaw that only needs a brief preface from Colby Cosh:

All I want are the same things my parents wanted – a good job, a loving partner and a two-bedroom live/work space with balcony in a nice area of the world’s third-richest city.

It’s easy for the Gen Xers and Baby Boomers. To them, with low property prices in areas considered ‘undesirable’ at the time and interest rates between five and 15 per cent, getting a mortgage was easy.

But for us, those opportunities have gone. To live anywhere in London, even somewhere unsexy, is prohibitively expensive. All the nice houses are already owned by older people with better jobs, a situation surely unique in the history of the world.

And it’s not just London. In all the other cool cities around the UK – Edinburgh, Bristol, Manchester – stylish city-centre properties suitable for fashionable twentysomethings are priced far, far beyond our reach.

[…]

The government must act now to build affordable properties for millennials, and support us during our tough first decade in the capital as we work our way up in our careers until we have cleared our debts and are pulling in seven figures.

Then, and only then, can we sell our London homes to developers and move to massive houses in the country.

November 7, 2017

Le Corbusier

Theodore Dalrymple could never be called a fan of Le Corbusier’s architecture:

The French fascist architect Charles-Édouard Jeanneret, better known as Le Corbusier, was another of this charmless ilk, though cleaner than Brecht (a Marxist, the latter’s decision not to wash was his tribute, albeit not a very flattering one, to the proletariat). Jeanneret’s inhumanity, his rage against humans, is evident in his architecture and in his writings. He felt the level of affection and concern for them that most people feel for cockroaches.

Like Hitler, Jeanneret wanted to be an artist, and, as with Hitler, the world would have been a better place if he had achieved his ambition. Had he been merely an artist, one could have avoided his productions if one so wished; but the buildings that he and his myriad acolytes have built unavoidably scour the retina of the viewer and cause a decline in the pleasure of his existence.

One of Jeanneret’s buildings can devastate a landscape or destroy an ancient townscape once and for all, with a finality that is quite without appeal; as for his city planning, it was of a childish inhumanity and rank amateurism that would have been mildly amusing had it remained purely theoretical and had no one taken it seriously.

A book has just been published — Le Corbusier: The Dishonest Architect, by Malcolm Millais — that reads like the indictment of a serial killer who can offer no defense (except, possibly, a psychiatric one). The author shares with me an aesthetic detestation of Jeanneret, and also of his casual but deeply vicious totalitarianism; but, unlike me, the author both has a scholarly knowledge of his subject’s life and writings, of which the perusal of only a few has more than sufficed for me, and is a highly qualified structural engineer. Mr. Millais is able to prove not only that Jeanneret was a liar, cheat, thief, and plagiarist in the most literal sense of the words, a criminal as well as being personally unpleasant on many occasions, but that he was technically grossly ignorant and incompetent, indeed laughably so. His roofs leaked, his materials deteriorated. He never grasped the elementary principles of engineering. All his ideas were gimcrack at best, and often far worse than merely bad. To commission a building from Jeanneret was to tie a ball and chain around one’s own ankle, committing oneself to endless, Sisyphean bills for alteration and maintenance, as well as to a dishonest estimate of what the building would cost to build in the first place. A house by Jeanneret was not so much a machine for living in (to quote the most famous of his many fatuous dicta) as a machine for generating costs and for moving out of. In the name of functionality, Jeanneret built what did not work; in the name of mass production, everything he used had to be individually fashioned. Having no human qualities himself, and lacking all imagination, he did not even understand that shade in a hot climate was desirable, indeed essential.

October 23, 2017

QotD: Cargo cult economics

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

Once upon a time, government officials decided it would help them keep their jobs if they could claim they had expanded the middle class. Unfortunately, none of them really understood economics or even the historical factors that led to the emergence of the middle class in the first place. But they did know two things: middle class people tended to own their own homes, and they sent their kids to college.

So in true cargo cult fashion, they decided to increase the middle class by promoting these markers of being middle class. They threw the Federal government strongly behind promoting home ownership and college education. A large part of this effort entailed offering easy debt financing for housing and education. Because the whole point was to add poorer people to the middle class, there was a strong push to strip away traditional underwriting criteria for these loans (e.g., down payments, credit history, actual income to pay debt, etc.)

We know what happened in the housing market. The government promoted home ownership with easy loans, and made these loans a favorite investment by giving them a preferential treatment in the capital requirements for banks. And then the bubble burst, with the government taking the blame for the bubble. Just kidding, the government blamed private lenders for their lax underwriting standards, conveniently forgetting that every President since Reagan had encouraged such laxity (they called it something else, like “giving access to the poor”, but it means the same thing).

Warren Meyer, “Cargo Cult Social Engineering”, Coyote Blog, 2012-11-28.

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