Quotulatiousness

February 17, 2015

The bet between Julian Simon and Paul R. Erlich

Filed under: Economics — Tags: , — Nicholas @ 04:00

Aaron Tao remembers one of the more amusing stories from the career of economist Julian Simon:

February 12 marks the birthday of the late economist Julian Simon (1932–1998). On this special occasion, I wish to bring attention to this thinker whose work I feel has not been fully appreciated. The implications of his controversial but time-tested ideas certainly deserve greater attention in academia and society at large.

Simon is perhaps best known for his famous wager against ecologist Paul R. Ehrlich, author of the notorious best-seller The Population Bomb.

In line with classical Malthusian theory, Ehrlich predicted that human population growth would result in overconsumption, resource shortages, and global famine — in short, an apocalyptic scenario for humanity. Simon optimistically countered Ehrlich’s claim and argued that the human condition and our overall welfare would flourish thanks to efficient markets, technological innovation, and people’s collective ingenuity. Both men agreed to put their money where their mouth is.

They agreed that rising prices of raw materials would indicate that these commodities were becoming more scarce, and this became the premise of The Bet. The metals chromium, copper, nickel, tin, and tungsten were chosen as measures of resource scarcity by Ehrlich’s team. Ehrlich and his Malthusian colleagues invested a total of $1,000 (in 1980 prices) on the five metals ($200 each). The terms of the wager were simple: If by the end of the period from September 29, 1980, to September 29, 1990, the inflation-adjusted prices of the metals rose, then Simon would pay Ehrlich the combined difference, and vice versa if the prices fell.

Here’s the final outcome as summarized by Wired:

    Between 1980 and 1990, the world’s population grew by more than 800 million, the largest increase in one decade in all of history. But by September 1990, without a single exception, the price of each of Ehrlich’s selected metals had fallen, and in some cases had dropped through the floor. Chrome, which had sold for $3.90 a pound in 1980, was down to $3.70 in 1990. Tin, which was $8.72 a pound in 1980, was down to $3.88 a decade later.

    Which is how it came to pass that in October 1990, Paul Ehrlich mailed Julian Simon a check for $576.07.

    A more perfect resolution of the Ehrlich-Simon debate could not be imagined.

Looking back on this high-profile debate, it is important to realize that Simon did not win because he was a savvier investor or had special knowledge about economic trends. Rather, Simon’s ideas were shown to be more empirically, intellectually, and morally sound. A distinguishing hallmark of Simon’s work was that he held a sincere conviction that human imagination was the ultimate renewable resource that can create a better world

May 23, 2014

QotD: Futurologists

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

Futurologists are almost always wrong. Indeed, Clive James invented a word – “Hermie” – to denote an inaccurate prediction by a futurologist. This was an ironic tribute to the cold war strategist and, in later life, pop futurologist Herman Kahn. It was slightly unfair, because Kahn made so many fairly obvious predictions – mobile phones and the like – that it was inevitable quite a few would be right.

Even poppier was Alvin Toffler, with his 1970 book Future Shock, which suggested that the pace of technological change would cause psychological breakdown and social paralysis, not an obvious feature of the Facebook generation. Most inaccurate of all was Paul R Ehrlich who, in The Population Bomb, predicted that hundreds of millions would die of starvation in the 1970s. Hunger, in fact, has since declined quite rapidly.

Perhaps the most significant inaccuracy concerned artificial intelligence (AI). In 1956 the polymath Herbert Simon predicted that “machines will be capable, within 20 years, of doing any work a man can do” and in 1967 the cognitive scientist Marvin Minsky announced that “within a generation … the problem of creating ‘artificial intelligence’ will substantially be solved”. Yet, in spite of all the hype and the dizzying increases in the power and speed of computers, we are nowhere near creating a thinking machine.

Bryan Appleyard, “Why futurologists are always wrong – and why we should be sceptical of techno-utopians: From predicting AI within 20 years to mass-starvation in the 1970s, those who foretell the future often come close to doomsday preachers”, New Statesman, 2014-04-10.

May 7, 2014

David Harsanyi – The climate change debate is over

Filed under: Environment, Media, Politics — Tags: , , , — Nicholas @ 09:45

At The Federalist, David Harsanyi says the debate is over and the environmentalists have lost:

The truth is that even if Americans believed that scientists had seer-like abilities and the models were accurate, they would still be hesitant to embrace 19th century technology because they simply can’t afford it. Though I suspect most people instinctively understand that the environment has gotten better by almost every measure over the past 40 years, climate change activists ignore the massive benefits of carbon emitting fuels and technology that helps us become more productive and increasingly efficient.

Now, you can try and guilt trip everyone into compliance. You can batter them with distressing hypothetical scenarios. You can “educate” them on the issue from kindergarten onward, you can mainstream an array of Luddite ideas, you can browbeat society so they never utter a word of skepticism, but we still want to drive our cars everywhere. This is probably why over-the-top warnings and preposterous analogies have hit peak levels of absurdity.

And that’s saying something. Dr. John Holdren, Obama’s Science Czar, who was on media call for the National Climate Assessment release, once predicted global warming could cause the deaths of 1 billion people by 2020 and that sea levels would rise by 13 feet by the end of the century (not to mention, he co-authored a book with Paul Ehrlich in which he explained that “population-control laws, even including laws requiring compulsory abortion, could be sustained under the existing Constitution…”). Malthusians never admit they’re wrong, they simply push the apocalypse out a couple of decades. I just don’t think people believe them anymore.

Yes, when asked, Americans perfunctorily tell pollsters that climate change matters to them. A recent Pew Research Center poll found that 40 percent of Americans believe that climate change is a major threat. A Gallup poll survey found that around third of Americans personally worry about climate change. But when they’re not asked specifically about global warming, voters never bring the topic up. They’re most important concerns are the economy, jobs and debt. Though there is always strong support for the abstract idea of environmental regulation and “clean energy,” but when it comes some concrete policy it is nearly always unpopular. Few people want to stop the Keystone XL Pipeline. Few people support new emissions regulations. And I doubt another scaremongery study will change that reality.

April 26, 2014

We’re not “running out of resources”

Filed under: Economics, Environment, Technology — Tags: , , — Nicholas @ 10:00

In the Wall Street Journal, Matt Ridley explains that claims that we’re running out of this or that resource are almost always bogus:

How many times have you heard that we humans are “using up” the world’s resources, “running out” of oil, “reaching the limits” of the atmosphere’s capacity to cope with pollution or “approaching the carrying capacity” of the land’s ability to support a greater population? The assumption behind all such statements is that there is a fixed amount of stuff — metals, oil, clean air, land — and that we risk exhausting it through our consumption.

[…]

But here’s a peculiar feature of human history: We burst through such limits again and again. After all, as a Saudi oil minister once said, the Stone Age didn’t end for lack of stone. Ecologists call this “niche construction” — that people (and indeed some other animals) can create new opportunities for themselves by making their habitats more productive in some way. Agriculture is the classic example of niche construction: We stopped relying on nature’s bounty and substituted an artificial and much larger bounty.

Economists call the same phenomenon innovation. What frustrates them about ecologists is the latter’s tendency to think in terms of static limits. Ecologists can’t seem to see that when whale oil starts to run out, petroleum is discovered, or that when farm yields flatten, fertilizer comes along, or that when glass fiber is invented, demand for copper falls.

That frustration is heartily reciprocated. Ecologists think that economists espouse a sort of superstitious magic called “markets” or “prices” to avoid confronting the reality of limits to growth. The easiest way to raise a cheer in a conference of ecologists is to make a rude joke about economists.

[…]

In 1972, the ecologist Paul Ehrlich of Stanford University came up with a simple formula called IPAT, which stated that the impact of humankind was equal to population multiplied by affluence multiplied again by technology. In other words, the damage done to Earth increases the more people there are, the richer they get and the more technology they have.

Many ecologists still subscribe to this doctrine, which has attained the status of holy writ in ecology. But the past 40 years haven’t been kind to it. In many respects, greater affluence and new technology have led to less human impact on the planet, not more. Richer people with new technologies tend not to collect firewood and bushmeat from natural forests; instead, they use electricity and farmed chicken — both of which need much less land. In 2006, Mr. Ausubel calculated that no country with a GDP per head greater than $4,600 has a falling stock of forest (in density as well as in acreage).

July 10, 2013

Next up on our agenda of things to panic about is “peak water”

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

sp!ked editor Rob Lyons explains that “peak water” just isn’t something to worry too much about:

Disappointed by the failure of the peak-oil disaster to come to fruition, our doom-mongering, Malthusian friends have alighted on other scary narratives to confirm their suspicions of humanity as a rapacious blight on the planet. Their latest is ‘peak water’.

On the face of it, peak water is a boneheaded concept on a planet where two thirds of the surface is covered in, er, water. According to the US Geological Survey, there are 332 million cubic miles of water on Earth. What we tend to need, however, is not sea water but fresh water, of which there is much less: nearer 2.5 million cubic miles. And much of that is too deep underground to be accessed. Surface water in rivers and lakes is a small fraction of overall fresh water: 22,339 cubic miles. Handily, though, natural processes cause sea water to evaporate and form clouds, which then dump their contents on to land — so in most populated parts of the world there is currently sufficient water to supply our needs in an endlessly renewable way. As for the future, it is clear there is no shortage of H2O on the planet. What we really have is a shortage of cheap energy and the necessary technology to take advantage of the salinated stuff.

The ‘peak water’ theorists focus on groundwater supplies that are either being used faster than they are replenished, or supplies that are not replenished at all: so-called ‘fossil water’. According to leading environmentalist Lester Brown, writing in the Guardian last weekend, the rapid exhaustion of these supplies in some parts of the world is leading to the decline of food production. And at a time of fast-growing populations, this apparently promises disaster for these countries.

But often, the problem is a political rather than a practical one. [. . .]

In reality, all of the fixes that apply to peak oil also apply to peak water. New technology may make water desalination far cheaper than it is now, a claim being made for new water filtration methods based on nanotechnology. Better use of water in irrigation, through careful management of when and how water is applied to crops, could cut usage dramatically — something that is already happening in dry countries such as Israel and Australia and in parts of the US. Current uses of water, like flush toilets, may be superseded in places where water is in high demand. Through civil engineering projects, water can be shifted from places where it is plentiful to places where it is needed most, something societies have been doing for thousands of years.

November 8, 2012

The Swiss children of Malthus

Filed under: Environment, Europe, Politics — Tags: , , , , , — Nicholas @ 08:59

In sp!ked, Patrick Hayes points out the odd way that Malthusians and xenophobic far-right political groups converge:

For greens, the ends will always justify the means when it comes to saving the planet. In the UK, they have opportunistically latched themselves on to left-wing movements to try to gain purchase with a broader public. But, as Swiss campaign group Ecology and Population (EcoPop) has demonstrated, in an attempt to pursue their Malthusian goals, greens can be equally happy tapping into the anti-immigrant rhetoric of the far right.

In a stunt last week, members of EcoPop carried dozens of cardboard boxes into the Swiss chancellery which contained 120,700 certified signatures calling for immigration into Switzerland to be capped at 0.2 per cent of the resident population. Under Swiss law, this means that a referendum will now be held on the proposal. Such a move trumps even the efforts of the far-right Swiss People’s Party, which has long lobbied for greater immigration controls.

But these greens aren’t mobilising for an immigration clampdown with banners claiming ‘keep the darkies out’ as right-wing groups have done in the past. Nor are they using dodgy, discredited scientific arguments to justify racial superiority, wielding books like Madison Grant’s The Passing of The Great Race for evidence.

No, instead EcoPop delivers its demands for immigration curbs carrying a banner asking: ‘How many people can the Earth tolerate?’ The group’s members use the (equally dodgy and discredited) Malthusian science of population growth and babble on about our ‘finite planet’. And they have reportedly been strongly influenced by the theories of US Malthusian Paul Ehrlich, author of The Population Bomb.

EcoPop bends over backwards to claim that it is not singling out particular races when advocating its policies. According to the BBC, it claims to be ‘opposed to all forms of xenophobia and racism’. But, the group says, ‘Switzerland must limit immigration to avoid urbanisation and to preserve agricultural land’.

You could almost believe that EcoPop is just a bunch of backward-thinking NIMBYish Luddites wanting to stop a flood of immigrants from destroying what it sees as a rural idyll — until you see what the group has tacked on to its proposed referendum for immigration caps. EcoPop slipped an additional clause into the referendum calling for a tenth of all foreign aid to be used ‘for birth-control measures abroad’. (It’s highly questionable how many people would have signed a petition for that alone.)

So it’s not enough to keep foreigners out of Switzerland, then, it’s also necessary to keep them from breeding too much in their own countries as well. And the fact that most of the aid will go towards stopping poor black and brown families from breeding too much suggests that if they’re not intentionally being racist, then EcoPop’s members should really think very hard about how they come across.

August 24, 2012

The new Malthusian miserabilism

Filed under: Britain, Environment, Food, History — Tags: , , , — Nicholas @ 10:18

Brendan O’Neill on the once-again popular theories of Reverend Thomas Malthus:

Malthusianism is back in vogue. Not only in theatres in Sloane Square, but across the opinion-forming spectrum. Last year, the human population hit seven billion, giving rise to a boom in handwringing commentary. BBC reporters tell us that ‘uncontrolled population growth threatens to undermine efforts to save the planet’. The Guardian’s environment reporters are forever warning of the dangers of our ‘rapidly growing global population’. Then there’s much-loved celebs like David Attenborough, who recently signed up to the population-panic group the Optimum Population Trust (OPT) and frequently declares: ‘I’ve never seen a problem that wouldn’t be easier to solve with fewer people.’

The New Malthusians are getting cockier. At the UN Rio+20 Earth summit earlier this year, 105 respectable institutions, including Britain’s increasingly Malthusian Royal Society, urged the international powers-that-be to look beyond the ‘ethical sensitivities’ around the population issue and ‘confront rising global population’. All those wailing babies mean we are now ‘living beyond the planet’s means’, they declared. The Bill and Melinda Gates Foundation is pumping millions of dollars into the distribution of birth-control tools in the developing world. Well-off westerners can now even offset their carbon emissions by helping to prevent the birth of babies in less fortunate places. A website called Pop Offsets, launched by the OPT, allows you to work out how much carbon you emit in your daily life and then tells you how many births you must help to prevent in order to offset that carbon. You make a financial contribution to a reproductive charity; that charity encourages a woman somewhere not to have more kids; and, hey presto, your personal emissions are cancelled out by your contribution to the non-creation of resource-demanding babies. The Guardian’s report on this initiative was illustrated with a photo of babies, 12 of them, just lying there like the problematic drains on nature.

Malthusianism is so ingrained in the outlook of greens and other trendies that people can fantasise about loads of human beings dying off without anyone batting an eyelid. Population panic-merchants often claim that the ‘carrying capacity’ of the planet is two billion human beings, so at least five billion less than at present. In a discussion on Radio 3’s super-respectable Nightwaves a couple of years ago, the psychologist and writer Sue Blackmore declared: ‘For the planet’s sake, I hope we have bird flu or some other thing that will reduce the population, because otherwise we’re doomed.’ There were no complaints to the BBC: the idea that humans are a problem in need of a solution is widespread in respectable ­circles.

May 26, 2012

Reason.tv interviews Robert Zubrin

Filed under: Economics, Environment, Liberty — Tags: , , , , , — Nicholas @ 10:01

“We have never been in danger of running out of resources,” says Dr. Robert Zubrin, “but we have encountered considerable dangers from people who say we are running out of resources and who say that human activities need to be constrained.”

In his latest book, Merchants of Despair: Radical Environmentalists, Criminal Pseudo-Scientists, and the Fatal Cult of Antihumanism, Zubrin documents the history of dystopian environmentalism, from economic impairment inflicted by current global warming policies to the Malthusian concern over population growth. “Just think how much poorer we would be today if the world would have had half as many people in the 19th century as it actually did. You can get rid of Thomas Edison or Louis Pasteur, take your pick.”

Zubrin sat down with Reason Magazine Editor Matt Welch to discuss his book, the difference between practical and ideological environmentalism, and how U.S. foreign aid policy encourages population control.

May 17, 2012

Defining “sustainability”

Filed under: Economics, Environment, Government, Politics — Tags: , , , , , — Nicholas @ 08:44

Ben Pile explains what is really meant by the term “sustainability” and the real agenda of those who argue for it:

Another reason might be that the concepts of ‘global’ and ‘sustainability’ are at best nebulous. To what extent are ‘global problems’ really global? And to what extent can making and doing things ‘sustainably’ really address problems such as poverty and inequality? Poverty is not, in fact, a problem of too much exploitation of natural resources, but too little. And poverty is not a global problem, but a categorically local one, in which a population is isolated from the rest of the world.

We can only account for poverty and inequality in the terms preferred by environmentalists if we accept the limits-to-growth thesis and the zero-sum game that flows from it. In other words, that there are limits on what we can take from the planet and we can only solve poverty if we divide those limited resources more equitably. Such an argument for reducing and redistributing resources has the reactionary consequence of displacing the argument for creating more wealth.

But to date, the arguments that there exist limits to growth, an optimum relationship between people and the planet, and that industrial society is ‘unsustainable’, have not found support in reality. The neo-Malthusians’ predictions in the Sixties and Seventies were contradicted by growth in population and wealth. And now there is a growing recognition that the phenomenon most emphasised by environmentalists — climate change — has been overstated. [. . .]

‘Sustainability’ is not about delivering ‘what we want’ at all but, on the contrary, mediating our desires, both material and political. Accordingly, the object of the Rio meeting is not as much about finding a ‘sustainable’ relationship between humanity and the natural world as it is about finding a secure basis for the political establishment. The agenda for the Rio +20 conference is the discussion of ‘decent jobs, energy, sustainable cities, food security and sustainable agriculture, water, oceans and disaster readiness’. Again, noble aims, perhaps. But is the provision of life’s essentials, and the creation of opportunities for jobs and the design of cities, really a job for special forms of politics and supranational organisations?

The idea that there are too many people, or that the natural world is so fragile that these things are too difficult for normal, democratic politics to deliver, flies in the face of facts. It would be easier to take environmentalists and the UN’s environmental programmes more seriously if millions of people were marching under banners calling for ‘lower living standards’ and ‘less democracy’. Instead, just a tiny elite speaks for the sustainability agenda, and only a small section of that elite is allowed to debate what it even means to be ‘sustainable’. We are being asked to take at face value their claims to be serving the ‘common good’. But there is no difference between the constitutions of benevolent dictatorships and tyrannies.

Sustainability is a fickle concept. And its proponents are promiscuous with scientific evidence and ignorant of the context and the development of the sustainability agenda, believing it to be simply a matter of ‘science’ rather than politics. The truth of ‘sustainability’, and the meeting at Rio next month, is that it is not our relationship with the natural world that it wishes to control, but human desires, autonomy and sovereignty. That is why, in 1993, the Club of Rome published its report, The First Global Revolution, written by the club’s founder and president, Alexander King and Bertrand Schneider. The authors determined that, in order to overcome political failures, it was necessary to locate ‘a common enemy against whom we can unite’. But in fighting this enemy — ‘global warming, water shortages, famine and the like’ — the authors warned that we must not ‘mistake symptoms for causes’. ‘All these dangers are caused by human intervention in natural processes, and it is only through changed attitudes and behaviour that they can be overcome. The real enemy then is humanity itself.’

October 29, 2011

More on Malthus

Filed under: Books, Economics, History, Media — Tags: , , , — Nicholas @ 10:57

Tim Harford poses and answers some common questions about the much-talked-about 7-billionth birth:

There will be 7bn of us come Halloween? You’re kidding.

Someone at the UNPFA has a sense of humour, it seems. This is a terrifying prospect to some and cheery for others, while most of us find it irrelevant. Halloween seems appropriate.

This is a statistical projection, and statistical projections don’t have a sense of humour.

But they do have margins of error. The UNPFA doesn’t even know whether the seven billionth person will be born in 2011. Even the UK is currently relying on 10-year old census data. There are places in the world where the data are decades old and we’re just guessing at the population. Still, such celebrations — if they are celebrations — do pass the time.

[. . .]

So Malthus was wrong?

Even Robert Malthus realised that there was such a thing as birth control. His more excitable successors, such as Paul Ehrlich, author in 1968 of The Population Bomb, have been fairly thoroughly rebutted by subsequent events. Dan Gardner, author of the fascinating Future Babble, summarises Ehrlich’s three scenarios for the 1980s as “everybody dies” (starvation-triggered nuclear war), “every third human dies” (starvation-triggered virus) and in the optimistic scenario “a billion people still die of starvation”.

October 28, 2011

Malthus provides “cover” for racism

Filed under: Books, History, Media — Tags: , , , , , — Nicholas @ 09:02

Tim Black explores why Thomas Malthus’ ideas have never been more popular than they are today:

Lisping, reclusive and reviled by the working class of his day, the Reverend Thomas Malthus (1766-1834) — the man behind the idea that the ‘lower orders of society’ breed too quickly — would probably be surprised by his current popularity. Because that’s what he is today: popular. Commentators, activists and academics positively fall over themselves in the rush to say, ‘you know what, that Malthus had a point. There are too many people and, what’s more, they are consuming far too much.’

Earlier this summer, a columnist for Time magazine was in no doubt as to the pastor’s relevance. The global population is ‘ever larger, ever hungrier’, he noted, ‘food prices are near historic highs’ and ‘every report of drought or flooding raises fears of global shortages’. ‘Taking a look around us today’, he continued, ‘it would be easy to conclude that Malthus was prescient’. Writing in the British weekly, the New Statesman, wildlife lover Sir David Attenborough was similarly convinced: ‘The fundamental truth that Malthus proclaimed remains the truth: there cannot be more people on this Earth than can be fed.’ Not to be outdone, the liberal-left’s favourite broadsheet, the Guardian, also suggested that Malthus may have been right after all: ‘[His] arguments were part of the inspiration for Charles Darwin’s theory of evolution, and they have validity in the natural world. On the savannah, in the rainforests, and across the tundra, animal populations explode when times are good, and crash when food reserves are exhausted. Is homo sapiens an exception?’ The melancholy tone whispered its answer in the negative. Writing in the New York Times, Paul Krugman was less coy: ‘Malthus was right!’ shouted the headline.

Given the encomia that are currently coming the way of Malthus you may well wonder what exactly it was that he was meant to be right about. To find the answer to this it is worth actually taking a look at the work, first published in 1798, on which his supposed prescience is based: An Essay on the Principle of Population. It makes for surprising reading.

October 1, 2009

Back to the ’70s . . . it’s the return of the Population Bomb!

Filed under: Environment — Tags: , , — Nicholas @ 12:41

Ronald Bailey addresses the most recent outbreak of Globally Terminal Malthusianism from the Wall Street Journal‘s Paul B. Farrell:

Every so often, the overpopulation meme erupts into public discourse and imminent doom is declared again. A particularly overwrought example of the overpopulation meme and its alleged problems appeared recently in the Wall Street Journal’s MarketWatch in a piece by regular financial columnist Paul B. Farrell.

Farrell asserts that overpopulation is “the biggest time-bomb for Obama, America, capitalism, the world.” Bigger than global warming, poverty, or peak oil. Overpopulation will end capitalism and maybe even destroy modern civilization. As evidence, Farrell cites what he calls neo-Malthusian biologist Jared Diamond’s 12-factor equation of population doom.

It turns out that Farrell is wrong or misleading about the environmental and human effects of all 12 factors he cites. Let’s take them one by one.

But, in the same way that bad news always crowds out good news for headline space or television minutes, looming disaster stories will always attract attention . . . especially when they’re wrong.

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