Quotulatiousness

June 4, 2024

How Wall Street billionaires are reacting to the verdict against Trump

Filed under: Business, Law, Media, Politics, USA — Tags: , , , , — Nicholas @ 05:00

Under normal circumstances, you might think that Trump would find doors closed to him among the big-money folks on Wall Street after his trial ended with 34 guilty verdicts … yet the opposite is reported to be happening and his campaign is being inundated with big financial donations:

My quite strong suspicion is that Leticia James and Alvin Bragg have caused alarm by targeting business records and real estate valuations in corporate borrowing, things that everyone shares in finance, insurance, and real estate, for criminalization and destructive litigation. My bet is that capital is turning hard against lawfare, seeking to disincentivize and punish an attack on the basics of corporate business. People in business are horrified by a flamethrower of a prosecution over old business records.

So Bloomberg’s interpretation is that Wall Street is standing with Trump despite the verdict, but my bet is that Wall Street, Silicon Valley, and other business interests are turning against Democrats because of the verdict — because Democratic prosecutors in New York (and especially Manhattan), America’s financial capital, are doing things like turning seven year-old business record misdemeanors into a long list of Frankenstein felonies.

That interpretation makes capital’s support for Trump self-interested rather than morally outraged, though not over Bloomberg’s explanation of lower taxes, as people who keep business records turn against the party that bizarrely overcriminalizes the handling of business records when the target becomes politically unfashionable. If capital turns against the Democratic Party — if the ATM machine stops spitting out campaign funding — the moment becomes pretty significant, and Alvin Bragg becomes the dog who caught the car.

June 3, 2024

QotD: Economic feedback

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

Well, now I think about it, most feedback is annoying.

Economics is full of it — as are other economic systems — and humans find it so annoying they have devised various means of shutting it down, and then become puzzled and do crazy stuff when the system goes out of control.

Take price controls. They deliberately shut down feedback. The idea is “people need to eat and the essentials should be cheap”. We went tons of rounds on this in the seventies in Portugal. It was FUN — not — and responsible for empty grocery shelves and problems getting the essentials. Because when cooking oil was dirt cheap by price control, everyone who had ridden this pony before (with bread, with toilet paper, with …) would buy everything in the grocery shelves. Meanwhile, because it was impossible for merchants to make a profit on the thing, they didn’t stock it. Which was okay, because the factories that made it couldn’t afford to at that price, so they stopped. And all the way down the line.

This is because what the idiot politicians were shutting down was the feedback. Prices are many things — and sometimes annoying when you really want a good pair of noise-cancelling headphones but your bank account is crying, to use a totally random example — but MOSTLY? They’re information. They’re feedback.

Because, yes, people work for profit, and profit — things that Warren and Sanders will never get — is not dirty, it’s what people live on, when prices go up — meaning there’s more demand than supply — people go “hey, you can make a profit in this” and start making more, until the supply and demand match, and you can’t make as much money, so people wander off to do other stuff.

You shut down the signal, and things go insane. You keep it shut down long enough while handing down lists of things that the government wants you to make, and vast famines sweep the land but you have a surplus of size 35 shoes for the left foot only. Because the directive handed the factory made that the easiest thing to do.

But it is not just in economics (though eh, everything is a branch of economics, as my reading in my 30s informed me. Which means that’s probably when I started going insane) that humans love shutting down feedback.

The truth is we don’t like reality very much, and are more or less perpetually at war with it.

We have this image of how things should be, and because we imagine it so clearly we think it’s a moral imperative.

Sarah Hoyt, “Shutting Off Feedback or How We Got Into This Fine Mess”, According to Hoyt, 2019-11-04.

May 27, 2024

“Product recommendations broke Google, and ate the Internet in the process”

Filed under: Business, Economics, Media, Technology — Tags: , , , , — Nicholas @ 04:00

Ted Gioia says the algorithms are broken and we need a way to get out of the online hellscape our techbro overlords have created for us:

Have you tried to get information on a product or service from Google recently? Good luck with that.

“Product recommendations broke Google,” declares tech journalist John Herrman, “and ate the Internet in the process.”

That sounds like an extreme claim. But it’s painfully true. If you doubt it, just try finding something — anything! — on the dominant search engine.

No matter what you search for, you end up in a polluted swamp of misleading links. The more you scroll, the more garbage you see:

  • Bogus product reviews
  • Fake articles that are really advertisements
  • Consumer guides that are just infomercials in disguise
  • Hucksters pretending to be experts
  • And every scam you can imagine (and some that never existed before) empowered by deepfakes or AI or some other innovative new tech

The Google algorithm deliberately makes it difficult to find reliable information. That’s because there’s more money made from promoting garbage, and forcing users to scroll through oceans of crap.

So why should Google offer a quick, easy answer to anything?

Everybody is now playing the same dirty game.

Even (previously) respected media outlets have launched their own recommendation programs as a way to monetize captured clients (= you and me). Everybody from Associated Press to Rolling Stone is doing it, and who can blame them?

Silicon Valley sets the dirty rules and everybody else just plays the game.

Welcome to the exciting world of algorithms. They were supposed to serve us, but now they control us—for the benefit of companies who impose them on every sphere of our lives.

And you can’t opt out.

For example, when I listen to music on a streaming platform, the algorithm takes over as soon as I stop intervening—insisting I listen to what it imposes on me. Where’s the switch to turn it off?

I can’t find it.

That option should be required by law. At a minimum, I should be allowed to opt out of the algorithm. Even better, they shouldn’t force the algorithm on me unless I opt in to begin with.

If this tech really aimed to serve me, opting in and opting out would be an obvious part of the system. The fact that I don’t get to choose tells you the real situation: These algorithms are not for our benefit.

Do you expect the coming wave of AI to be any different?

[…]

The shills who want us to lick the (virtual) boots of the algorithms keep using the word progress. That’s another warning sign.

I don’t think that word progress means what they think it means.

If it makes our lives worse, it isn’t progress. If it forces me into servitude, it isn’t progress. If it gets worse over time — much worse! — it isn’t progress.

All the spin and lobbying dollars in the world can’t change that.

So that’s why I became a conscientious objector in the world of algorithms. They give more unwanted advice than any person in history, even your mom.

At least mom has your best interests at heart. Can we say the same for Silicon Valley?

May 26, 2024

“Naked ‘gobbledygook sandwiches’ got past peer review, and the expert reviewers didn’t so much as blink”

Jo Nova on the state of play in the (scientifically disastrous) replication crisis and the ethics-free “churnals” that publish junk science:

Proving that unpaid anonymous review is worth every cent, the 217 year old Wiley science publisher “peer reviewed” 11,300 papers that were fake, and didn’t even notice. It’s not just a scam, it’s an industry. Naked “gobbledygook sandwiches” got past peer review, and the expert reviewers didn’t so much as blink.

Big Government and Big Money has captured science and strangled it. The more money they pour in, the worse it gets. John Wiley and Sons is a US $2 billion dollar machine, but they got used by criminal gangs to launder fake “science” as something real.

Things are so bad, fake scientists pay professional cheating services who use AI to create papers and torture the words so they look “original”. Thus a paper on “breast cancer” becomes a discovery about “bosom peril” and a “naïve Bayes” classifier became a “gullible Bayes”. An ant colony was labeled an “underground creepy crawly state”.

And what do we make of the flag to clamor ratio? Well, old fashioned scientists might call it “signal to noise”. The nonsense never ends.

A “random forest” is not always the same thing as an “irregular backwoods” or an “arbitrary timberland” — especially if you’re writing a paper on machine learning and decision trees.

The most shocking thing is that no human brain even ran a late-night Friday-eye over the words before they passed the hallowed peer review and entered the sacred halls of scientific literature. Even a wine-soaked third year undergrad on work experience would surely have raised an eyebrow when local average energy became “territorial normal vitality”. And when a random value became an “irregular esteem”. Let me just generate some irregular esteem for you in Python?

If there was such a thing as scientific stand-up comedy, we could get plenty of material, not by asking ChatGPT to be funny, but by asking it to cheat. Where else could you talk about a mean square mistake?

Wiley — a mega publisher of science articles has admitted that 19 journals are so worthless, thanks to potential fraud, that they have to close them down. And the industry is now developing AI tools to catch the AI fakes (makes you feel all warm inside?)

Fake studies have flooded the publishers of top scientific journals, leading to thousands of retractions and millions of dollars in lost revenue. The biggest hit has come to Wiley, a 217-year-old publisher based in Hoboken, N.J., which Tuesday will announce that it is closing 19 journals, some of which were infected by large-scale research fraud.

In the past two years, Wiley has retracted more than 11,300 papers that appeared compromised, according to a spokesperson, and closed four journals. It isn’t alone: At least two other publishers have retracted hundreds of suspect papers each. Several others have pulled smaller clusters of bad papers.

Although this large-scale fraud represents a small percentage of submissions to journals, it threatens the legitimacy of the nearly $30 billion academic publishing industry and the credibility of science as a whole.

May 20, 2024

QotD: “Selfless” public servants

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

WARNING: If you’re an elected government official or if you’re attached to idealistic notions about such officials, do not read this commentary. It will offend you.

Ideally, government in a democratic republic reflects the will of the people, or at least that of the majority. Citizens vote for candidates whom they believe will best promote the general welfare. Victorious candidates, after pledging to uphold the Constitution, go to state capitals or to Washington, D.C., to do The People’s business — to undertake all the good and worthy activities that citizens in their private capacities cannot perform.

Sure, every now and then crooks and demagogues win office, but these are not the norm. Our system of regular, aboveboard democratic elections ensures that officials who do not effectively carry out The People’s business are thrown from office and replaced by more reliable public servants.

Trouble is, it’s not true. It’s a sham. Despite being called “the Honorable”, the typical politician is certainly no more honorable than the typical dentist, auto mechanic, Wal-Mart regional manager or any other private citizen.

Despite being referred to as “public servants”, politicians serve, first and foremost, their own personal political ambitions and they do so by pandering to narrow special interest groups.

Don Boudreaux, “Base Closings”, Pittsburgh Tribune-Review, 2005-03-18.

May 16, 2024

The replication crisis and the steady decline in social trust

Theodore Dalrymple on the depressing unreliability — and sometimes outright fraudulence — of far too high a proportion of what gets published in scientific journals:

Until quite recently — I cannot put an exact date on it — I assumed that everything published in scientific journals was, if not true, at least not deliberately untrue. Scientists might make mistakes, but they did not cheat, plagiarise, falsify, or make up their results. For many years as I opened a medical journal, the possibility simply that it contained fraud did not occur to me. Cases such as those of the Piltdown Man, a hoax in which bone fragments found in the Piltdown gravel pit were claimed to be those of the missing link between ape and man, were famous because they were dramatic but above all because they were rare, or assumed to be such.

Such naivety is no longer possible: instances of dishonesty have become much more frequent, or at least much more publicised. Whether the real incidence of scientific fraud has increased is difficult to say. There is probably no way to estimate the incidence of such fraud in the past by which a proper comparison can be made.

There are, of course, good reasons why scientific fraud should have increased. The number of practising scientists has exploded; they are in fierce competition with one another; their careers depend to a large extent on their productivity as measured by publication. The difference between what is ethical and unethical has blurred. They cite themselves, they recycle their work, they pay for publication, they attach their names to pieces of work they have played no part in performing and whose reports they have not even read, and so forth. As new algorithms are developed to measure their performance, they find new ways to play the game or to deceive. And all this is not even counting commercial pressures.

Furthermore, the general level of trust in society has declined. Are our politicians worse than they used to be, as it seems to everyone above a certain age, or is it that we simply know more about them because the channels of communication are so much wider? At any rate, trust in authority of most kinds has declined. Where once we were inclined to say, “It must be true because I read it in a newspaper”, we are now inclined to say, “It must be untrue because I read it in a newspaper”.

Quite often now I look at a blog called Retraction Watch which, since 2010, has been devoted to tracing and encouraging retraction of flawed scientific papers, often flawed for discreditable reasons. Such reasons are various and include research performed on subjects who have not given proper consent. This is not the same as saying that the results of such research are false, however, and raises the question of whether it is ethical to cite results that have been obtained unethically. Whether it is or not, we have all benefited enormously from past research that would now be considered unethical.

One common problem with research is its reproducibility, or lack of it. This is particularly severe in the case of psychology, but it is common in medicine too.

February 28, 2024

The rise of the “Pretendian” is an inevitable consequence of academia’s ultra-woke culture

Filed under: Bureaucracy, Cancon, Education, Media, Politics, USA — Tags: , , , , , , — Nicholas @ 05:00

Freddie deBoer summarizes why we’ve seen a vast increase in the number of Pretendians in western academia, but especially in Canada and the United States (and we can be almost certain that there are a lot more who haven’t yet been revealed, because the incentives to pretend are so enticing):

“The Pretendians”, a CBC documentary – https://www.cbc.ca/passionateeye/episodes/the-pretendians

  1. Certain jobs in academia are highly prized
  2. There are far more applicants than openings for those jobs and so competition for them is incredibly fierce
  3. Representing yourself as a member of an underrepresented minority significantly improves your odds of getting such a job, and in certain fields representing yourself as a person of indigenous descent improves those odds dramatically
  4. Indigenous identity is easy to fake and difficult to disprove, and the cost of accusing someone else of faking it, in academia, can be very high indeed
  5. Most crucially of all, the social culture of academia strongly prohibits speaking frankly about these facts

Jay Caspian Kang’s new piece on the “Pretendian” crisis in academia is deeply researched and compulsively readable, and read it you should. But fundamentally everything you need to know about the problem is in the numbered list above. You’ve created a fiercely competitive process in which a segment of people are given a very large advantage, there are few if any objective markers that can disprove that someone is a member of that segment, and you’ve declared it offensive to question whether someone really is a member of that segment, outside of very specific scenarios. (When I was in academia people spoke very darkly about the concept of ever questioning someone’s indigenous identity, called it the act of a colonizer, etc etc.) The obvious question is … what did you think was going to happen? Humanities and social sciences departments have, through the conditions described above, rung the dinner bell for people pretending to have indigenous heritage. They now act shocked when such people show up. I find it disingenuous and untoward. This behavior is the product of the incentives that you yourself built. Of course it’s a stain on the integrity of the fakes. But you made it inevitable that this would happen. Reap what you sow.

February 7, 2024

A disturbing proportion of scientific publishing is … bullshit

Tim Worstall on a few of the more upsetting details of how much we’ve been able depend on truth and testability in the scientific community and how badly that’s been undermined in recent years:

The Observer tells us that science itself is becoming polluted by journal mills. Fools — intellectual thieves perhaps — are publishing nonsense in scientific journals, this then pollutes the conclusions reached by people surveying science to see what’s what.

This is true and is a problem. But it’s what people publish as supposedly real science that is the real problem here, not just those obvious cases they’re complaining about:

    The startling rise in the publication of sham science papers has its roots in China, where young doctors and scientists seeking promotion were required to have published scientific papers. Shadow organisations – known as “paper mills” – began to supply fabricated work for publication in journals there.

    The practice has since spread to India, Iran, Russia, former Soviet Union states and eastern Europe, with paper mills supplying ­fabricated studies to more and more journals as increasing numbers of young ­scientists try to boost their careers by claiming false research experience. In some cases, journal editors have been bribed to accept articles, while paper mills have managed to establish their own agents as guest editors who then allow reams of ­falsified work to be published.

Indeed, an actual and real problem:

    The products of paper mills often look like regular articles but are based on templates in which names of genes or diseases are slotted in at random among fictitious tables and figures. Worryingly, these articles can then get incorporated into large databases used by those working on drug discovery.

    Others are more bizarre and include research unrelated to a journal’s field, making it clear that no peer review has taken place in relation to that article. An example is a paper on Marxist ideology that appeared in the journal Computational and Mathematical Methods in Medicine. Others are distinctive because of the strange language they use, including references to “bosom peril” rather than breast cancer and “Parkinson’s ailment” rather Parkinson’s disease.

Quite. But the problem is worse, much, much, worse.

Let us turn to something we all can agree is of some importance. Those critical minerals things. We all agree that we’re going to be using more of them in the future. Largely because the whole renewables thing is changing the minerals we use to power the world. We’re — to some extent, perhaps enough, perhaps not enough — moving from using fossil fuels to power the world to using rare earths, silicon, copper and so on to power the world. How much there is, how much useable, of those minerals is important. Because that’s what we’re doing, we’re changing which minerals — from fossil to metallic elements — we use to power the world.

Those estimates of how much there is out there are therefore important. The European Union, for example, has innumerable reports and task forces working on the basis that there’s not that much out there and therefore we’ve got to recycle everything. One of those foundational blocks of the circular economy is that we’ve got to do it anyway. Because there’s simply not enough to be able to power society without the circular economy.

This argument is nads*. The circular economy might be desirable for other reasons. At least in part it’s very sensible too – if it’s cheaper to recycle than to dig up new then of course we should recycle. But that we must recycle, regardless of the cost, because otherwise supply will vanish is that nads*.

But, folk will and do say, if we look at the actual science here we are short of these minerals and metals. Therefore etc. But it’s the science that has become infected. Wrongly infected, infested even.

Here’s the Royal Society of Chemistry and their periodic table. You need to click around a bit to see this but they have hafnium supply risk as “unknown”. That’s at least an advance from their previous insistence that it was at high supply risk. It isn’t, there’s more hafnium out there than we can shake a stick at. At current consumption rates — and assuming no recycling at all which, with hafnium, isn’t all that odd an idea — we’re going to run out sometime around the expected date for the heat death of the universe. No, not run out of the universe’s hafnium, run out of what we’ve got in the lithosphere of our own Earth. To a reasonable and rough measure the entirety of Cornwall is 0.01% hafnium. We happily mine for gold at 0.0001% concentrations and we use less hafnium annually than we do gold.

The RSC also says that gallium and germanium have a high supply risk. Can you guess which bodily part(s) such a claim should be associated with? For gallium we already have a thousand year supply booked to pass through the plants we normally use to extract our gallium for us. For germanium I — although someone competent could be a preference — could build you a plant to supply 2 to 4% of global annual germanium demand/supply. Take about 6 months and cost $10 million even at government contracting rates to do it too. The raw material would be fly ash from coal burning and there’s no shortage of that — hundreds of such plants could be constructed that is.

The idea that humanity is, in anything like the likely timespan of our species, going to run short in absolute terms of Hf, Ga or Ge is just the utmost nads*

But the American Chemistry Society says the same thing:


    * As ever, we are polite around here. Therefore we use the English euphemism “nads”, a shortening of “nadgers”, for the real meaning of “bollocks”.

January 30, 2024

The foul “nudgers” are at it again at Cambridge

Filed under: Britain, Education, Health, Wine — Tags: , , , — Nicholas @ 05:00

Christopher Gage reports on a recent fun-reducing experiment by paid psychological meddlers at Cambridge University:

“Wineglass” by quinn.anya is licensed under CC BY-SA 2.0 .

Researchers found they could “nudge” people into drinking less wine when they denied the unsuspecting blighters a large 250ml measure.

Last summer, these wholly well-adjusted people convinced 21 Cambridgeshire pubs and restaurants to offer only small or medium glasses of wine. The result left the boffins breathless. But sadly, not in the medical sense of the word.

When denied a large, vivifying glass of wine, the subjects drank eight percent less than usual, and the pubs didn’t lose any money — smaller measures cost more. Puritans: two. Oenophiles: nil.


The usual suspects cooked up this obscene waste of time and money. Professor Dame Theresa Marteau, director of the behaviour and health research unit at Cambridge University, boasts lurid form in control freakery.

Her previous studies read like an almanac of neurotic impulses. The mad mullah dreams of shrinking plates and sinking sodas. This finger-wagger-in-chief obsesses with the vinous, porcine masses and what they may slip into their faces when she’s not looking. Marteau chillingly laments that large wine glasses “increase the pleasure of drinking wine”.

The fundamentally nosey swear these are the first murmurs of Utopia. Next, they’ll bend boozing regulations into a truncheon to batter the gastronomic swine over its head. They don’t stop. First, they shrink the large glass. Then, the medium glass affects as the large. What happens next? Take a wild guess.

This is not the work of some rogue Colonel Kurtz. One Daily Telegraph writer seized on the study. Employing the presumptuous “we” beloved of oppressive minds, they offered tips to help us drink less, assuming we drink large wines only because we are weak-willed effigies desperate for professional helpers to show us what’s best for us.

Advocates of “nudging” drive themselves senseless over this psychological thimblerig. The potential to correct “undesirable” behaviour proves too great to resist. They are a species of featherless biped with which I share nothing but the right to a trial before a jury of my peers.

As I write, I’ve just returned from a five-mile jaunt with 33 pounds strapped to my back. Loading a bag with weights burns double the calories. Therefore, whatever I do after that trek is my business alone. On my desk is a large glass of Portuguese red blend. Beside that soul-tingling measure sits a smouldering, hand-rolled, menthol-tipped cigarette.

Why strangers stake their mental well-being on what others put into their bodies, I will never know. Why they wish I’d sit here choking on sparkling water and its vegetable equivalent — celery — I’ve not the foggiest of insights. All I do know, friends, is that I am not the one in dire need of a few sessions with a psychoanalyst. My professional advice: Seven letters. Vulgar slang. A phrasal verb rhyming with “duck cough”.

January 21, 2024

QotD: The life-cycle of bureaucracies

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

… a large bureaucracy will, in approximately 100 percent of cases, become extremely wasteful, and essentially corrupt. It will perpetuate the “problem” that it was founded to solve, and at its most creative, invent new and quite imaginative evils. It will become a vested interest — an “economic player” in its own right — and spread, like a cancer, well beyond the flesh it first inhabited. Any attempt to restrain it will then engender new bureaucracies. The idea of a “humane” bureaucracy is a contradiction of terms. There is no such thing.

Gentle reader must understand that I am not speaking only of “guvmint”, but of bureaucracy, at large. The thing is not necessarily a government department. Any big corporation will quickly show symptoms. The only difference between “public” and “private” is in longevity. A private bureaucracy will kill its host, but thanks to the power of taxation, a public bureaucracy can be long sustained. It is also backed by law and police action, which even today is more effective than mere pointless rules and regulations. The latter, however, are more nimble in expansion, and prepare the ground for law — the full spiritual stasis.

David Warren, “Austrian schoolboy”, Essays in Idleness, 2019-09-17.

November 10, 2023

QotD: Economic distortions of slavery in the Antebellum South

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

This notion that slavery somehow benefited the entire economy is a surprisingly common one and I want to briefly refute it. This is related to the ridiculously bad academic study (discussed here) that slave-harvested cotton accounted for nearly half of the US’s economic activity, when in fact the number was well under 10%. I assume that activists in support of reparations are using this argument to make the case that all Americans, not just slaveholders, benefited from slavery. But this simply is not the case.

At the end of the day, economies grow and become wealthier as labor and capital are employed more productively. Slavery does exactly the opposite.

Slaves are far less productive than free laborers. They have no incentive to do any more work than the absolute minimum to avoid punishment, and have zero incentive (and a number of disincentives) to use their brain to perform tasks more intelligently. So every slave is a potentially productive worker converted into an unproductive one. Thus, every dollar of capital invested in a slave was a dollar invested in reducing worker productivity.

As a bit of background, the US in the early 19th century had a resource profile opposite from the old country. In Europe, labor was over-abundant and land and resources like timber were scarce. In the US, land and resources were plentiful but labor was scarce. For landowners, it was really hard to get farm labor because everyone who came over here would quickly quit their job and headed out to the edge of settlement and grabbed some land to cultivate for themselves.

In this environment the market was sending pretty clear pricing signals — that it was simply not a good use of scarce labor resources to grow low margin crops on huge plantations requiring scores or hundreds of laborers. Slave-owners circumvented this pricing signal by finding workers they could force to work for free. Force was used to apply high-value labor to lower-value tasks. This does not create prosperity, it destroys it.

As a result, whereas $1000 invested in the North likely improved worker productivity, $1000 invested in the South destroyed it. The North poured capital into future prosperity. The South poured it into supporting a dead-end feudal plantation economy. As a result the south was impoverished for a century, really until northern companies began investing in the South after WWII. If slavery really made for so much of an abundance of opportunities, then why did very few immigrants in the 19th century go to the South? They went to the industrial northeast or (as did my grandparents) to the midwest. The US in the 19th century was prosperous despite slavery in the south, not because of it.

Warren Meyer, “Slavery Made the US Less Prosperous, Not More So”, Coyote Blog, 2019-07-12.

October 11, 2023

QotD: A rational army would run away …

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

It is a thousand years ago somewhere in Europe; you are one of a line of ten thousand men with spears. Coming at you are another ten thousand men with spears, on horseback. You do a very fast cost-benefit calculation.

    If all of us plant our spears and hold them steady, with luck we can break their charge; some of us will die but most of us will live. If we run, horses run faster than we do. I should stand.

Oops.

I made a mistake; I said “we”. I don’t control the other men. If everybody else stands and I run, I will not be the one of the ones who gets killed; with 10,000 men in the line, whether I run has very little effect on whether we stop their charge. If everybody else runs I had better run too, since otherwise I’m dead.

Everybody makes the same calculation. We all run, most of us die.

Welcome to the dark side of rationality.

This is one example of what economists call market failure — a situation where individual rationality does not lead to group rationality. Each person correctly calculates how it is in his interest to act and everyone is worse off as a result.

David D. Friedman, “Making Economics Fun: Part I”, David Friedman’s Substack, 2023-04-02.

September 30, 2023

QotD: Incentives matter, college student edition

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

I have been accused of disliking college students. Guilty as charged. I regard them the way I do the Diversity. I like certain individuals just fine, but as a whole, when it comes to interacting with them as a group, I’m Bartleby the Scrivener: “I would prefer not to”.

Which is an odd position for someone who spent as long as I did toiling in the groves of academe to take, I realize. So let me explain: As with the Vibrancy, I dislike their behavior – intensely. But I don’t blame them for acting that way. If you want to know what’s wrong with our entire Postmodern, homo economicus way of looking at the world, there you go. I don’t blame them, because they have every rational incentive to behave that way, and none not to (indeed, acting other than they do comes with a considerable cost).

College kids don’t read, don’t study, don’t do anything other than attempt, insofar as possible, to regurgitate lectures word-for-word on the “exam”, after which they promptly forget everything. Once more, with feeling: I do not blame them for this, since pretty much everything they “learn” is so worthless, it’s antimatter education. I’m not joking when I say it’s all just Social Justice Mad Libs: “The [group] was oppressed by Whitey through [adjective] [adjective] [noun], and that’s why Pale Penis People are evil.”

For example, I taught for a few semesters at a college that tried very hard to run “African-American” versions of core classes as a marketing stunt. There was “US History to 1865”, for example, and, in parallel, “African-American History to 1865.” Leaving aside the fact that you could cover the whole fucking course in about five minutes – “there sure was a lot of slavery back then!” – even the faculty, all of whom were of course raving SJWs, laughed at the sheer pointlessness of it. “US to 1865” was already nothing but “Negroes and Lesbians save the Republic!”, or vice versa, depending on whether or not the prof teaching the course this semester was the Angry Black Feminist Marxist, or the Angry Marxist Feminist Lesbian.

Severian, “College Kids”, Rotten Chestnuts, 2020-12-12.

August 29, 2023

QotD: Private versus public decision-making

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

Those who wish to turn ever-more decision-making power over to government – and, hence, to take such power from individuals operating in their private spheres (including, but not limited to, private markets) – believe this bizarre notion: when Jones has the power to spend Smith’s money and to order Smith about, Smith’s welfare is improved compared to when the power to spend Smith’s money and to determine how Smith will act is reserved to Smith, with Jones’s authority confined to his – Jones’s – own business.

In private-property markets each individual has the power to say “no”, and when each individual says “yes”, that individual spends only his or her own money. Also, in private-property markets each individual’s choices are significant: if Smith chooses to buy a new car, Smith gets the new car that he chooses; if Smith chooses not to buy a new car, Smith gets no new car.

These basic features of private-property markets, along with a handful of other features that are embodied in the common law, ensure not that markets operate “perfectly”, but that the market process is always in action to generally improve the operation and outcomes of markets.

The political marketplace is nearly the exact opposite. In the political marketplace, Jones spends Smith’s money, and Smith has no real power to say no. Nor [are] Smith’s choices ever genuinely significant (unless, of course, Smith becomes one of the relatively small percentage of people who succeed in grabbing hold of political power).

If a malevolent all-powerful being were intent on designing a market that is destined to abuse the vast bulk of people, that devil could do no better than to impose on his victims majoritarian politics largely unconstrained by constitutional rules. This devil – being, of course, ill-mannered, and evilly-intentioned – would seek to destroy private-property markets.

Don Boudreaux, “Bonus Quotation of the Day…”, Café Hayek, 2019-07-31.

August 13, 2023

“It makes [Canada] look like some cheap, politically petty little kleptocracy run by a collection of self-serving narcissists”

Filed under: Bureaucracy, Cancon, Government, Media — Tags: , , , , — Nicholas @ 03:00

Canada became a parody of itself so slowly that the legacy media barely even noticed:

There was a time when politicians steered very carefully around saying anything that could be construed as an attempt to influence a decision by one of Canada’s independent agencies.

Honest, there was.

There was also a time when, should a politician so much as nod or wink publicly to indicate a preferred outcome by, say, the office of the Commissioner for Competition, the nation’s leading media organizations would see this as a big story. Sixteen dollar orange juice big. Heads would roll.

Seriously, there was.

The reasons people like Francois-Phillipe Champagne, Minister of Innovation, Science and Economic Development are supposed to keep their yaps shut are pretty straightforward. Businesses, citizens, consumers, and investors need to know the processes at law enforcement agencies and regulators — such as the Competition Bureau and the CRTC respectively — are independent of the sordid manipulations of partisanship. They need to be able to trust that the rules are clear, their application is consistent and that they can have faith that the institution involved views matters before it in an objective fashion.

It’s Rule of Law 101 stuff and messing with it makes Canada look like something less than a first world country. It makes us look like some cheap, politically petty little kleptocracy run by a collection of self-serving narcissists.

Shortly after the CBC, the Canadian Association of Broadcasters and News Media Canada filed a complaint with the Competition Bureau over Meta’s decision to no longer carry news in Canada, Champagne seized the opportunity to show Big Tech who their daddy is.

“I am determined to use every tool at our disposal to ensure that Canadians can have access to reliable news — across all platforms,” Champagne posted on X (the platform formerly known as Twitter). “I fully support the complaint made to the Competition Bureau by Cnd media groups against Meta in their effort to promote a free & independent press.”

I don’t expect that many readers have hung around with cabinet appointees. But I have, and I’ve been one. And I can tell you that most of them — particularly the ones whose conditions of appointment mean they serve “at pleasure” as Competition Commissioner Matthew Boswell does — pay attention when the minister through whom their agency reports to Parliament, says anything, let alone things like that.

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