There simply isn’t a technology that has come anywhere close to arriving in the hands of actual users as fast as the smartphone and mobile internet. The next closest competitor is the mobile phone itself. All others running distant third and behind.
Our problem is that we know technological revolutions produce growth. Yet economic growth is limp at best, meagre perhaps a better description. So, there’s something wrong here. Either our basic understandings about how growth occurs are wrong and we [are] loathe to agree to that. Not because too much is bound up in that understanding but because too much of it makes sense. The other explanation is that we’re counting wrong.
[…]
We know that we’ve not quite got new products and their falling prices in our estimates of inflation quite correctly. They tend to enter the inflation indices after their first major price falls, meaning that inflation is always overstated. Given that the number we really look at is real growth – nominal growth minus inflation – this means we are consistently underestimating real growth.
[…]
The more we dig into this the more convinced I am that our only real economic problem at present is counting. Everything makes sense if we are counting output and inflation incorrectly, under-estimating the first, over- the second. If we are doing that – and we know that we are, only not quite to what extent – then all other economic numbers make sense. We’re in the midst of a large technological change, we’ve full employment by any reasonable measure, wages and productivity should be rising strongly. If we’re mismeasuring as above then those two are rising strongly, we’re just not capturing it. Oh, and if that’s also true then inequality is lower than currently estimated too.
The thing is, the more we study the details of these questions the more it becomes clear that we are mismeasuring, and mismeasuring enough that all of the claimed problems, the low growth, low productivity rises, low wage growth, simply aren’t there in the first place. And if they ain’t then nothing needs to be done about them, does it? Except, perhaps, count properly.
Tim Worstall, “Where’s All The Economic Growth? Goldman Sachs Blames Apple’s iPhone”, Continental Telegraph, 2018-07-03.
October 15, 2020
QotD: What the GDP is failing to show (even though it’s there)
August 19, 2020
He calls it “unintended consequences”. I disagree … these consequences are very much intended
Brad Polumbo is being far too generous to Californian politicians by saying the impending collapse of the state’s entire gig economy was not the intended result of passing “worker protection” laws that penalized success:
This Friday, Uber and Lyft are set to entirely shut down ride-sharing operations in California. The businesses’ exit from the Golden State will leave hundreds of thousands of drivers unemployed and millions of Californians chasing an expensive cab. Sadly, this was preventable.
Here’s how we got to this point.
In September of 2019, the California state legislature passed AB 5, a now-infamous bill harshly restricting independent contracting and freelancing across many industries. By requiring ride-sharing apps such as Uber and Lyft to reclassify their drivers as full employees, the law mandated that the companies provide healthcare and benefits to all the drivers in their system and pay additional taxes.
Legislators didn’t realize the drastic implications their legislation would have; they were simply hoping to improve working conditions in the gig economy. The unintended consequences may end up destroying it instead.
Here’s why.
AB 5 went into effect in January, and now, a judge has ordered Uber and Lyft to comply with the regulation and make the drastic transformation by August 20. Since compliance is simply unaffordable, the companies are going to have to shut down operations in California.
Their entire business model was based upon independent contracting, so providing full employee benefits is prohibitively expensive. Neither Uber nor Lyft actually make a profit, and converting their workforce to full-time employees would cost approximately $3,625 per driver in California. As reported by Quartz, “that’s enough to boost Uber’s annual operating loss by more than $500 million and Lyft’s by $290 million.”
Essentially, California legislators put these companies in an impossible position. It makes perfect sense that they’d leave the state in response. It’s clear that despite the good intentions behind the ride-sharing regulation, this outcome will leave all Californians worse off.
August 4, 2020
Ontario’s COVID Alert app
Michael Geist explains why he has installed the Canadian government’s COVID App on his phone, despite the privacy concerns such government tracking apps present:
The Canadian COVID Alert app is ultimately as notable for what it doesn’t do as for what it does. The voluntary app does not collect personal information nor provide the government (or anyone else) with location information. The app merely runs in the background on an Apple or Android phone using bluetooth technology to identify other devices that come within 2 metres for a period of 15 minutes or more. Obviously, the distance and timing are viewed as the minimum for a potential transmission risk. If this occurs, a unique, random identifier is stored on each person’s device for a period of 14 days. After the 14 day period, the identifier is deleted from the device.
The identifier does not identify a specific person or location information, and is not sent to any centralized database. If a person tests positive for the virus, they are given a key code to input into the app. Once the key code is inputted, anyone that was identified as being potentially exposed over the prior 14 days receives a notification that this has occurred and they should consider testing and/or self-isolating.
From a privacy perspective, this is very low risk. Indeed, the government’s position – confirmed in the Privacy Commissioner of Canada’s analysis – is that there is no collection of any personal information and therefore the Privacy Act does not apply. The Privacy Commissioner rightly points out this raises some concerns about the state of the law (arguing it should be sufficiently robust to allow for reviews of this kind), however, the use of random identifiers ensures that identification of individual is very unlikely. Moreover, the Privacy Commissioner’s review concludes that “there are very strong safeguards in place” with security of the data, commitments limiting use, independent oversight, and a pledge to de-commission the app (including deletion of all data) within 30 days of the Chief Public Health Officer of Canada declaring the pandemic over.
The Ontario Information and Privacy Commissioner was also engaged in the review process. Her recommendation letter points to commitments for potential ongoing issues, including ensuring that the app is effective, that there is monitoring of third party components such as the Google-Apple Exposure Notification System, and public transparency associated with the app and its use.
While the app passes legal muster, its introduction reinforces the problems with social inequities that COVID-19 has laid clear. Much like the connection between socio-economic status and infection risk, the app itself is only accessible to those who can afford newer Apple and Android devices. That obviously means that those with older phones or no wireless access at all are unable to use it. While I don’t think that is reason to abandon the initiative, the government should be exploring alternatives to allow all citizens to implement these safeguards.
June 23, 2020
Pushback for Chinese aggression in the Himalayas
In Quillette, Cleo Paskal outlines the Chinese military action last week and a few of the reactions in civil society:
High in the Himalayan mountains, Chinese soldiers ambushed Indian troops this week, resulting in a brutal battle on the Indian side of their shared border. Twenty Indians were killed, while China won’t disclose its losses. It was the deadliest confrontation on the border in over 40 years. As a result, some Indian strategists are openly discussing recognizing Taiwan and providing more visibility to the Dalai Lama, state-owned telecoms are blocking Chinese equipment from 4G upgrades, and millions of Indians downloaded an app that helps remove Chinese apps from their phones (before Google removed it). All of this comes at a time when much of the world remains angry at China’s leaders for their initial handling of the COVID-19 crisis.
This week’s apparent provocation is part of a larger recent pattern with China. From the South China Sea, to Taiwan, to Hong Kong, Beijing has been seeking to change facts on the ground in a way that benefits its own strategic and economic interests. In a recent Atlantic Council discussion of the India-China border issue (convened before the latest fighting), senior American diplomat Ambassador Alice Wells summed the situation up well: “There’s a method here to Chinese operations. [A]nd it is that constant aggression, the constant attempt to shift the norms, to shift what is the status quo, that has to be resisted.”
For decades China has tried to expand its strategic reach along its de facto south-western border through the invasion of Tibet, land swaps with Pakistan, and war with India. To this end, China treats British Empire-era maps as political props to variously brandish or dismiss, as best suits Beijing’s goals. For example, it effectively accepted the 1914-era McMahon Line delineation in its border agreement with Myanmar, but rejects it with India.
The Line of Actual Control (LAC) separating China and India runs through rugged, high-altitude terrain that has witnessed multiple conflicts going back to the 1962 India-China border war. In recent weeks, there have been Chinese incursions at several points along the LAC, reportedly involving thousands of troops. In some spots, the Chinese military is digging in on the Indian side, while expanding its already considerable support infrastructure on their side of the LAC.
Delhi is particularly concerned about Chinese advances near India’s Daulat Beg Oldie (DBO) high-altitude military airfield, an essential Indian forward base that provides oversight of the strategic Karakoram Highway (KH) linking China’s western Xinjiang Autonomous Region with Pakistan, including the Gwadar Port on the Indian Ocean. It is a key component of the multi-billion-dollar China-Pakistan Economic Corridor.
April 17, 2020
Chris Selley – “… if John Q. Bylaw is hassling you just for taking a walk, for heaven’s sake get your smart phone out and make a righteous stink”
Our proto-surveillance society is moving rapidly toward all-surveillance, all the time and the current justification is to fight the Wuhan Coronavirus epidemic:
For civil libertarians, these are alarming times — but less alarming than they might be. During a pandemic, when everyone agrees life cannot go on as normal, people who place maximum value on individual freedom are liable to look rather selfish. “Trust our leaders” types get a big boost.
But if Canadian officialdom has not botched its response to this crisis, neither has it excelled. Theresa Tam’s defenders are right that official advice will naturally change over the course of a pandemic — but nothing justifies her proactive downplaying of the COVID-19 risk at a time when several Canadian governments were, we now know, woefully unprepared. The pandemic doesn’t care that Prime Minister Justin Trudeau went to Harrington Lake, against advice from three governments including his own to stay away from any second homes — but it would have been so bloody easy for him not to go, to set an example. It’s equally inconsequential that Andrew Scheer added six more human beings than necessary to a government charter flight from Regina to Ottawa — and it would have been equally easy for him not to bring his family along.
Meanwhile, certain big Canadian cities have so obviously overstepped the mark, by cracking down on perfectly safe behaviours — walking in parks, notably — as to highlight the value of some don’t-tread-on-me pushback. An unscientific survey of social media suggests not a single real human being supports the City of Ottawa’s latest ridiculousness: Days after its bylaw officers threatened a father and son for kicking a ball around [noted here], fined a man $880 for walking his dog, and allegedly assaulted a man questioning his eviction from a park — none of which seems to be supported by the provincial emergency act they were ostensibly enforcing — a public health official now advises against exchanging properly distanced outdoor pleasantries with one’s neighbours lest it “turn into a parking lot or backyard party.” (Don’t laugh: Studio 54 was a cozy little jazz bar before Mick Jagger and Debbie Harry showed up one night with some records and a pound of blow.)
For civil libertarians who remember life before smart phones, meanwhile, the plan Google and Apple are working on to help governments control COVID-19 might as well be custom-designed to induce heebie-jeebies. The basic idea is that your phone’s operating system would reach out to other phones via Bluetooth and record the date, time, duration and location of the meeting. No personal information need be attached to those data points, just the identity of the device. When someone reports a COVID-19 diagnosis on an app, using a code provided by their public health department, devices that had been nearby would receive a warning that their owners might have been exposed, and should take such measures as local authorities advise.
It could be the stuff of dystopian sci-fi. You can just see the guy with the giant translucent computer screen shouting “magnify! Enhance!” Really, though, this comes down to a simple question: Whom do you least distrust? A co-production between Google, which is not at all known for respecting users’ privacy, and Apple, which at least seems to make an effort? Or governments?
January 19, 2020
September 21, 2019
QotD: Smartphones
My smartphone, an out-of-date and memory-challenged iPhone, is so far and away the most incredible thing I’ve ever owned that I wouldn’t know how to pick a runner-up. I might never own a better camera, except in a replacement. It tunes my guitar vastly better than my guitar tuner. It monitors me from space and guides me to my destination, adjusting the route for traffic congestion. I speak English into it and it translates back in any language I want. It streams more entertainment than I could ever consume. If 21-year-old me could see 41-year-old me today, he would wonder (a) how I could possibly afford the thing, and (b) how I ever found time to stop gawking at it and go to work.
Chris Selley, “Silly to blame the smartphone for everything we’ve done wrong with it”, National Post, 2017-08-08.
May 8, 2019
Your electronic devices and the Canadian Border Services Agency
A few years ago, many civil libertarians were upset that the US government allowed warrantless searches of electronic devices at the border, but it was less well known that the Canadian Border Services Agency does the same at the Canadian border:
According to the CBSA, it has the right to search electronic devices at the border for evidence of customs-related offences — without a warrant — just as it does with luggage.
If travellers refuse to provide their passwords, officers can seize their devices.
The CBSA said that between November 2017 and March 2019, 19,515 travellers had their digital devices examined, which represents 0.015 per cent of all cross-border travellers during that period.
During 38 per cent of those searches, officers uncovered evidence of a customs-related offence — which can include possessing prohibited material or undeclared goods, and money laundering, said the agency.
While the laws governing CBSA searches have existed for decades, applying them to digital devices has sparked concern in an era where many travellers carry smartphones full of personal and sometimes very sensitive data.
A growing number of lawyers across Canada argue that warrantless digital device searches at the border are unconstitutional, and the practice should be stopped or at least limited.
“The policy of the CBSA of searching devices isn’t something that is justifiable in a free and democratic society,” said Wright who ran as a Green Party candidate in the 2015 federal election.
“It’s appalling, it’s shocking, and I hope that government, government agencies and the courts, and individual citizens will inform themselves and take action.”
January 30, 2019
The high cost Canadians pay to support our oligopolies
In the National Post, Andrew Coyne compares the Liberal and Conservative parties’ respective claims to lower the cost of living for Canadians, and points out some examples that neither party is willing to address:
For example, there is the notorious system of agricultural quotas known as supply management — a price-fixing ring the government not only approves but organizes and enforces, whose effect is to double or even triple the prices of such basic food items as milk, cheese, eggs and chicken. For all their pretended concern for affordability, all parties and every MP, with the sole exception of Maxime Bernier, are publicly, nay fervently in favour of it.
But while the farm cartel gets a lot of ink, there are plenty of other examples. Canadians pay among the highest wireless telephone fees in the world, for starters — maybe even the highest — as study after study has found. The latest report from Tefficient, a European consultancy, found Canada’s carriers take in more revenue per gigabyte of data than their counterparts anywhere else in the world — 23 times more than in Finland.
Similarly, Canadians pay among the highest air fares in the world. The travel website Kiwi. com recently found flights from Canada on a full-service airline cost roughly five times as much per 100 kilometres as flights from the United States. The situation was a little better for domestic flights, where costs were only twice as high as in the U.S. The makers of Hopper, the travel app, note it is typically cheaper to fly from Vancouver to Hawaii than from Vancouver to Regina, though Regina is 3,000 km closer.
Finally, there are Canadian bank fees, also — you guessed it — among the highest in the world, particularly for mutual funds. What is the common thread among these three industries? All are highly concentrated oligopolies: three big wireless carriers, two big airlines and five big banks dominate their respective markets.
Rather than compete as vigorously as they might for Canadian consumers, these quasi-cartels are permitted, in effect, to harvest them. They do so, again, not only with the tolerance but the active participation of the government. Foreigners are effectively precluded from competing in any of them, whether by foreign-ownership restrictions or outright prohibitions on competition — foreign airlines may not fly from one Canadian city to another, for example.
None of the parties currently boasting of their desire to make life more affordable for Canadians proposes to change a line of this, either. Whatever else may be in (artificially) scarce supply, in Canadian politics there’s never any shortage of rank hypocrisy.
January 24, 2019
In Canada, “total revenue per GB is roughly 70 times higher than in India and 23 times higher than in Finland”
Canadians are used to being screwed by our telecommunications companies, but it’s worse than I thought, as Michael Geist illustrates:
Tefficient, a European-based consultancy on the wireless market, released its latest report this morning comparing pricing and usage in the global wireless market. The data, which incorporates the most recent CRTC numbers on the Canadian market, shows Canada as a global outlier when it comes to the revenues generated by wireless carriers. The report notes the unsurprising correlation between high prices and low data usage:
There is a prerequisite for continued data usage growth, though: The total revenue per gigabyte can’t be too high – like in Canada and Belgium. The total revenue per gigabyte here is roughly 70 times higher than in India and 23 times higher than in Finland. And consequently, mobile usage is lower than average.
The charts show where Canada stands relative to other countries with carriers generating more revenue per GB than anywhere else in the world and consequently Canada lagging behind many other countries in wireless usage.
January 23, 2019
The value of boredom
I must have missed this Quillette essay by Caroline ffiske when it was published earlier this month:
In their book The Coddling of the American Mind Jonathan Haidt and Greg Lukianoff wonder where it all went wrong. How did we get to a situation where so many of our kids see themselves as fragile victims, but at the same time throw their weight around, telling the rest of us what we are allowed to think and say and do? Haidt and Lukianoff have set up a website devoted to exploring the issue and finding solutions.
I have a suggestion. It hit me like a hammer blow when I read Joseph Brodsky’s essay “In Praise of Boredom.” This was delivered as a commencement address at Dartmouth College in July 1989. Here is the opening sentence: “A substantial part of what lies ahead of you is going to be claimed by boredom.” That’s right. Joseph Brodsky, winner of the Nobel Prize for literature in 1987, assumed that these Ivy League graduates, in common with the rest of humanity since the dawn of time would face hours of the psychological Sahara of boredom that “starts right in your bedroom and spurns the horizon.”
How could Brodsky have guessed that the young people he addressed in July 1989 would be the last Western generation to live alongside boredom: in their bedrooms, on the bus, at the end of the day, and in the morning? That now, when the tiniest tips of our little fingers feel the first twinges of tedium, while the elevator travels between ground and first, we reach for our screens to become masters of fate, captains of souls, kings of new continents.
Even the vocabulary of boredom is disappearing. Brodsky lists these: “anguish, ennui, tedium, doldrums, humdrum, the blahs, apathy, listlessness, stolidity, lethargy, languor, accidie, etc.” Most of those can be excised from the Dictionary. Tell me honestly when you last used any of them?
[…]
Why? Because boredom represents your window onto infinity. And that is to say, onto your own insignificance. “For boredom speaks the language of time, and it is to teach you the most valuable lesson in your life … the lesson of your utter insignificance.” Boredom puts your existence into perspective “the net result of which is precision and humility.” The more you learn about your own size “the more humble and compassionate you become to your likes.”
Is boredom the ingredient our “snowflake” generation is missing?
November 19, 2018
“You call someplace paradise/kiss it goodbye”
The Eagles song “The Last Resort” references a generic paradise, not the California town of that name, yet it fits disturbingly well, as Gerard Vanderleun describes:
Paradise is not a town on some flat land out on the prairies or deep in the desert. Paradise is a series of cleared areas and roads superimposed on an extremely rugged terrain composed of deep, narrow ravines and high and densely wood ridges. The Skyway is fed by hundreds of paved and unpaved roads that twist and turn and rise and dip and then, at their OFFICIAL ends, run deeper still and far off the grid. If you live in Paradise you know there are hundreds of people living back up in those ravines and ridges that would be hard to find before the fire. In those places, the poor are lodged tighter than ticks.
I’ve seen, before the fire this time, people in the outback of Paradise so abidingly poor they were living in trailers from the 70s resting on cinder blocks and at most only two winters away from a pile of rust. These people would have had no warning of a fire, no warning at all. Instead of “sheltering in place” they would have been “incinerated in place.”
In the ravines and forests of Paradise, cell reception was so spotty that AT&T gave me my own personal internet driven cell-phone tower. If those off the grid in Paradise actually owned cell phones they would have been lucky to get an alert. But most of those did not own cell phones, and landlines didn’t run that deep in the woods. When the fire closed over them they would have had no warning. No warning until the trailer melted around them. And then there was, out behind but still close to their trailer, their large propane tank.
May 30, 2018
May 16, 2018
“Congrats, you have trained me to ignore Emergency Alerts”
The national emergency alert system for mobile phones just went online, and it’s already training people to ignore them:
When the siren-like sounds from an Amber Alert rang out on cellular phones across Ontario on Monday, it sparked a bit of a backlash against Canada’s new mobile emergency alert system.
The Ontario Provincial Police had issued the alert for a missing eight-year-old boy in the Thunder Bay region. (The boy has since been found safe.)
But gripes about the system soon began to pour in. Kingston police said they received “several complaints” regarding the Amber Alert notice. On social media, people startled by the alerts complained about the number of alerts they received and that they had received separate alerts in English and French.
“Sooo, is that emergency alert going to happen at like 4 a.m. with sleep mode enabled? Just asking for my heart health,” tweeted James G.
Meanwhile, others who were located far from the incident felt that receiving the alert was pointless.
“I’ve received two Amber Alerts today for Thunder Bay, which is 15 hours away from Toronto by car,” tweeted Molly Sauter. “Congrats, you have trained me to ignore Emergency Alerts.”
Mark Blevis, an Ottawa-based digital public affairs analyst, said he understands the importance of Amber Alerts, but system managers risk alienating cellphone users at some point if these types of alarms go off regularly.
“If they’re going to send out multiple alerts on the same thing, you need to find a way to streamline it so they don’t breed that apathy that causes the whole system to break down,” Blevis said.
At the very least, they should be able to figure out how to avoid the duplication of English and French alerts, he said.
May 5, 2018
Canada is #1 in the world! In the ripping-off-the-wireless-user sweepstakes!
This is the sort of thing that isn’t really surprising — if you’re a Canadian wireless data user — but puts it into a sad, sad perspective:
The sad state of Canadian wireless pricing is old news for consumers and the government, but a new report graphically demonstrates how Canadians face some of the least competitive pricing in the developed world. The Rewheel study measured pricing in EU and OECD markets by examining how many gigabytes of 4G wireless data consumers get for the equivalent of 30 euros. This chart from Rewheel says it all:
Canada is at the far left of the chart with consumers getting less for their money than anyone else. While many countries offer unlimited mobile data at that price, the report says Canadian carriers offer a measly 2 GB. The smartphone data plans aren’t much better, with nearly all countries offering better deals and many shifting to unlimited data at that price.
[…]
In addition to outrageously expensive wireless data plans, Canadians also face huge overage charges (more than a billion dollars per year generated in the wireless overage cash grab) and steadily increasing roaming charges. Yet when it came to introducing greater resale competition, the CRTC rejected new measures that it admitted could result in some improvement to affordability.