Look, I, like you, heard about how terrible the aftermath of WWI was, and how broke people were right after, and how they were moving to cities and living in tenements. It wasn’t until I was reading a book about the between the war period in England that I realized they were telling me TWO stories which couldn’t both have happened. In the part about the common folk, they were telling me how much poorer they were than before the war. In the part about the great families, they were telling me how the huge rise of the middle class and the building of suburbs had hurt them, and how the newly rich common folk no longer wanted to be servants.
That was one of those “wait a minute.” Sure I was taught both things in school, but you know you write down the bullet point for the test, and that’s it. Now I was going “Who the heck wrote these narratives and why doesn’t anyone question them?”
The truth, btw, from going to primary sources is closer to the second. And the people who wrote the narrative were the unseated noblemen, who did not like all these nouveau riche but who wanted to justify their disgust by showing how it hurt the poor. (It did increase the underclass somewhat, not because of economic conditions, but because a lot of men don’t integrate well after war, and well, WWI was something special by way of trauma.)
There are tons of these when you start poking. For instance the idea that the industrial revolution was unremittingly bad for the poor/people. Looking at China and India and such places right now, all I can do is roll my eyes.
Yeah, sure, the conditions of the early industrial revolution were appalling. And yet people crowded to the cities to take these jobs. What the historians never ask themselves is “How much worse was what they were escaping from?” We know that in India and China and other recently industrialized countries.
Sure the countryside has relatively clean air and more open space, but there are still real famines, and the work was unremitting and brutal and yes, little children worked too (says the daughter of middle class in a rural community whose first “job” was weeding the onion patch at five. And I was a pampered moppet. Kids my age from farming families had what we’d call full time jobs. Factory jobs at least had a stopping time.)
The idea that the industrial revolution was awful comes from upper class historians who could see the little kids twisted by working in the mills but who never consorted closely enough with the rural poor to see the misery behind raising baah lambs and the pretty pretty flowers.
Yeah. So the past isn’t written in stone. And it’s not a conspiracy. Not precisely a conspiracy. Yeah, sure, the Marxists influenced a lot of modern history with their ideas, but that is not necessarily conspiring. They view the world a certain way and it influences how they view the past too.
Sarah Hoyt, “How Do You Know?”, According to Hoyt, 2016-08-24.
May 9, 2018
QotD: The “you can’t get good help” period after WW1
April 25, 2018
April 4, 2018
The bias against reporting good news
Last month, Matt Ridley looked at the contrast between how readily bad news is shared and how reluctant we seem to be to share good news:
[…] It also feeds our appetite for bad news rather than good. Almost by definition, bad news is sudden while good news is gradual and therefore less newsworthy. Things blow up, melt down, erupt or crash; there are few good-news equivalents. If a country, a policy or a company starts to do well it soon drops out of the news.
This distorts our view of the world. Two years ago a group of Dutch researchers asked 26,492 people in 24 countries a simple question: over the past 20 years, has the proportion of the world population that lives in extreme poverty
1) Increased by 50 per cent?
2) Increased by 25 per cent?
3) Stayed the same?
4) Decreased by 25 per cent?
5) Decreased by 50 per cent?
Only 1 per cent got the answer right, which was that it had decreased by 50 per cent. The United Nations’ Millennium Development goal of halving global poverty by 2015 was met five years early.
As the late Swedish statistician Hans Rosling pointed out with a similar survey, this suggests people know less about the human world than chimpanzees do, because if you had written those five options on five bananas and thrown them to a chimp, it would have a 20 per cent chance of picking up the right banana. A random guess would do 20 times as well as a human. As the historian of science Daniel Boorstin once put it: “The greatest obstacle to discovery is not ignorance — it is the illusion of knowledge.”
Nobody likes telling you the good news. Poverty and hunger are the business Oxfam is in, but has it shouted the global poverty statistics from the rooftops? Hardly. It has switched its focus to inequality. When The Lancet published a study in 2010 showing global maternal mortality falling, advocates for women’s health tried to pressure it into delaying publication “fearing that good news would detract from the urgency of their cause”, The New York Times reported. The announcement by NASA in 2016 that plant life is covering more and more of the planet as a result of carbon dioxide emissions was handled like radioactivity by most environmental reporters.
What is more, the bias against good news in the media seems to be getting worse. In 2011 the American academic Kalev Leetaru employed a computer to do “sentiment mining” on certain news outlets over 30 years: counting the number of positive versus negative words. He found “a steady, near linear, march towards negativity”. A recent Harvard study found that 87 per cent of the coverage of the fitness for office of both candidates in the 2016 US presidential election was negative. During the first 100 days of Donald Trump’s presidency, 80 per cent of all coverage was negative. He is of course a master of the art of playing upon people’s pessimism.
March 16, 2018
March 15, 2018
DicKtionary – H is for Homicide – Francisco Macias Nguema
TimeGhost
Published on 14 Mar 2018H is for homicide, the taking of lives
Bloodthirsty people with pistols or knives
Or government leaders than strangled their nations
And Macias Nguema killed whole populations.Join us on Patreon: https://www.patreon.com/TimeGhostHistory
Written and Hosted by: Indy Neidell
Based on a concept by Astrid Deinhard and Indy Neidell
Produced by: Spartacus Olsson
Executive Producers: Bodo Rittenauer, Astrid Deinhard, Indy Neidell, Spartacus Olsson
Camera by: Ryan Tebo
Edited by: Bastian BeißwengerA TimeGhost format produced by OnLion Entertainment GmbH
February 19, 2018
Graphing good news
In the Times Literary Supplement, David Wootton reviews Enlightenment Now: A manifesto for science, reason, humanism and progress by Steven Pinker:
This book consists essentially of seventy-two graphs – and, despite that, it is gripping, provocative and (many will find) infuriating. The graphs all have time on the horizontal axis, and on the vertical axis something important that can be measured against it – life expectancy, for example, or suicide rates, or income. In some graphs the line, or lines (often the graphs compare trends in several countries) fall as they go from left to right; in others they rise. In every single one, the overall picture (with the inevitable blips and bounces) is of life getting better and better. Suicide rates fall, homicides fall, incomes rise, life expectancies rise, literacy rates rise and so on and on through seventy-two variations. Most of these graphs are not new: some simply update graphs which appeared in Pinker’s earlier The Better Angels of Our Nature (2011); others come from recognized purveyors of statistical information. The graphs that weren’t in Better Angels extend the argument of that book, that war and homicide are on the decline across the globe, to assert that life has been getting better and better in all sorts of other respects. The claim isn’t new: a shorter version is to be found in Johan Norberg’s Progress (2017). But the range and scope of the evidence adduced is new. The only major claim not supported by a graph (or indeed much evidence of any kind) is the assertion that all this progress has something to do with the Enlightenment.
Since the argument of the book is almost entirely contained in the graphs, those who want to attack the argument are going to attack the figures on which the graphs are based. Good luck to them: arguments based on statistics, like all interesting arguments, should be tested and tested again. Better Angels caused a vitriolic dispute between Pinker and Nassim Nicholas Taleb as to whether major wars are becoming less frequent. In Taleb’s view the question is a bit like asking whether major earthquakes are getting less frequent or not: they happen so rarely, and so randomly, that you would need records going back over a vast stretch of time to reach any meaningful conclusion; a graph showing falling death rates in wars over the past seventy years won’t do the job. But it certainly will tell you that lots of generalizations about modern war are wrong. Much, indeed most, of Pinker’s argument survived Taleb’s attack, which in any case was directed at only one graph among many.
A more radical line of criticism of Better Angels came from John Gray. How can one find a common standard of measurement for the suffering of a concentration camp victim, of a soldier who died in the trenches, and of someone killed in the firebombing of Dresden? To turn to economics, how can one find a common standard of measurement for books and washing machines, oranges and steak pies? Money, you might think, provides that standard, but what happens if many of the goods being measured – electric lighting, cars, televisions, computers – get cheaper and cheaper as time goes on, so that a rising standard of living is concealed by falling prices? For Gray, to place one’s faith in statistics, which claim to be measuring the unmeasurable, is no different from believing in conversations with angels or in the efficacy of Buddhist prayer wheels. Quantification is our religion.
February 17, 2018
The great enrichening of 1960-2016
Marian Tupy explains why all the Malthusian worry about overpopulation in the Third World was wrong:
Many people believe that global population growth leads to greater poverty and more famines, but evidence suggests otherwise. Between 1960 and 2016, the world’s population increased by 145 percent. Over the same time period, real average annual per capita income in the world rose by 183 percent.
Instead of a rise in poverty rates, the world saw the greatest poverty reduction in human history. In 1981, the World Bank estimated, 42.2 percent of humanity lived on less than $1.90 per person per day (adjusted for purchasing power). In 2013, that figure stood at 10.7 percent. That’s a reduction of 75 percent. According to the Bank’s more recent estimates, absolute poverty fell to less than 10 percent in 2015.
Rising incomes helped lower the infant mortality rate from 64.8 per 1,000 live births in 1990 to 30.5 in 2016. That’s a 53 percent reduction. Over the same time period, the mortality rate for children under five years of age declined from 93.4 per 1,000 to 40.8. That’s a reduction of 56 percent. The number of maternal deaths declined from 532,000 in 1990 to 303,000 in 2015 — a 43 percent decrease.
Famine has all but disappeared outside of war zones. In 1961, food supply in 54 out of 183 countries was less than 2,000 calories per person per day. That was true of only two countries in 2013. In 1960, average life expectancy in the world was 52.6 years. In 2015, it was 71.9 years — a 37 percent increase.
In 1960, American workers worked, on average, 1,930 hours per year. In 2017, they worked 1,758 hours per year — a reduction of 9 percent. The data for the world are patchy. That said, a personal calculation based on the available data for 31 rich and middle-income countries suggests a 14 percent decline in hours worked per worker per year.
And because everyone loves pictures, here’s one from an earlier article by the same author showing increases in life expectancy between 1960 (top) and 2015 (bottom):
December 11, 2017
QotD: Occupational licensing
… occupational licensing laws and Competitor’s Veto laws exclude would-be entrepreneurs from the marketplace — with disproportionately negative consequences for members of minority groups — […] Congress could act today to protect the fundamental human right of economic liberty against unjust state interference.
Licensing laws tend to have particularly harsh consequences on members of minority groups for a couple reasons. First, if a law requires a person to have, say, a college degree to practice the trade of interior design (which is the law in Florida), people who have less money and time to spend in college will find that avenue of opportunity closed to them. Since black and Hispanic Floridians are about 30 percent less likely to have a college degree, they will suffer more from this absurd licensing requirement than others will. Competitor’s Veto laws that forbid a person from practicing a trade unless they get permission from the businesses already operating in that industry are also very likely to create a sort of Old Boys Network, and to exclude entrepreneurs who lack political connections. Second, in a more general sense, any law that restricts economic opportunity for some to benefit others — as licensing laws tend to do — are likely to benefit those who have more political influence and can therefore get the government to regulate in ways favorable to them. Since members of minority groups have less political influence, they tend to be the ones excluded.
Timothy Sandefur, “Testifying to the U.S. Senate Oversight Subcommittee Tuesday about economic liberty and minorities”, Freespace, 2015-09-30.
December 4, 2017
QotD: Why mid-20th century Americans ate what they did – 3
People were poorer. Household incomes grew enormously, and as they did, food budgets shrank relative to the rest of our consumption. People in the 1960s also liked steak and chicken breasts better than frankfurters and canned meats. But most of them couldn’t afford to indulge their desires so often.
The same people who chuckle at the things done with cocktail franks and canned tuna will happily eat something like the tripe dishes common in many ethnic cuisines. Yet tripe has absolutely nothing to recommend it as a food product, except that it is practically free; almost anything you cooked with tripe would be just as good, if not better, without the tripe in it. If you understand why folks ate Trippa alla Romana, you should not be confused about the tuna casserole or the creamed chipped beef on toast.
Megan McArdle, “Friday Food Post: The Economics Behind Grandma’s Tuna Casseroles”, Bloomberg View, 2015-10-30.
November 28, 2017
A Tax on the Poor – The Lotto and the Surprisingly Common Sad Aftermath of Winning
Today I Found Out
Published on 1 Jun 2017In this video:
It’s been called a voluntary tax on the poor and under-educated, with people spending a whopping $60 billion a year in the United States alone on lottery tickets, most of which are purchased by low income individuals. (All total, about 20% of Americans play the lotto). Despite the high number of lotto tickets purchased annually, when playing the lottery (in all its forms), you’ll win an average of just 53 cents for every $1 you spend, making it one of the lowest return rates of any form of commercial gambling, and thus extremely profitable for the various government bodies who run the lotteries.
Want the text version?: http://www.todayifoundout.com/index.php/2012/12/on-average-people-who-earn-less-than-13000-a-year-in-the-u-s-spend-5-of-their-gross-earnings-on-lottery-tickets/
October 23, 2017
QotD: Cargo cult economics
Once upon a time, government officials decided it would help them keep their jobs if they could claim they had expanded the middle class. Unfortunately, none of them really understood economics or even the historical factors that led to the emergence of the middle class in the first place. But they did know two things: middle class people tended to own their own homes, and they sent their kids to college.
So in true cargo cult fashion, they decided to increase the middle class by promoting these markers of being middle class. They threw the Federal government strongly behind promoting home ownership and college education. A large part of this effort entailed offering easy debt financing for housing and education. Because the whole point was to add poorer people to the middle class, there was a strong push to strip away traditional underwriting criteria for these loans (e.g., down payments, credit history, actual income to pay debt, etc.)
We know what happened in the housing market. The government promoted home ownership with easy loans, and made these loans a favorite investment by giving them a preferential treatment in the capital requirements for banks. And then the bubble burst, with the government taking the blame for the bubble. Just kidding, the government blamed private lenders for their lax underwriting standards, conveniently forgetting that every President since Reagan had encouraged such laxity (they called it something else, like “giving access to the poor”, but it means the same thing).
Warren Meyer, “Cargo Cult Social Engineering”, Coyote Blog, 2012-11-28.
October 13, 2017
October 10, 2017
India’s bold experiment … is an economic failure
Back in December, I linked to an article by Shikha Dalmia, discussing the rhetoric and (likely) reality of India’s currency experiment. Now, Lawrence White rounds up the damage done:
The debate over demonetization was revived this month (September 2017) after the Reserve Bank of India finally announced the count of returned currency. It announced that 99 percent of the discontinued notes, Rs 15.28 trillion out of Rs 15.44 trillion, had been returned. As Vivek Kaul has noted, “The conventional explanation for this is that most people who had black money found other people, who did not have black money, to deposit their savings into the banking system for them.”
The trivial size of unreturned currency, of course, obliterates BDK’s [Bhagwati, Dehejia, and Krishna’s] projection of a government seigniorage windfall.
What about BDK’s other projected source of revenue, the 50% tax on acknowledged black deposits? Whereas in BDK’s scenario, black currency holders would make Rs2 trillion in voluntary-disclosure deposits, which would yield Rs 1 trillion in revenue, the actual collections under the scheme were reported in April at Rs 23 billion, or 2.3% of the BDK-imagined sum. Such paltry revenues mean that demonetization, from the fiscal perspective, was all pain and no gain.
The accumulating evidence on economic growth, meanwhile, has become damning. Between July and September 2016, India’s GDP grew 7.53 percent. Between January and March 2017 it grew 5.72 percent. Former head of the Reserve Bank of India Raghuram Rajan, now returned to the University of Chicago, links the drop to demonetization: “Let us not mince words about it — GDP has suffered. The estimates I have seen range from 1 to 2 percentage points, and that’s a lot of money — over Rs2 lakh crore [i.e. trillion] and maybe approaching Rs2.5 lakh crore.” Kaul adds that GDP does not well capture the size of the informal cash sector, where the losses from demonetization were greatest.
In response to the RBI report and GDP data, and to their credit, BDK have substantially retreated from claims of success to what can be regarded as the claim that there is still a chance to break even.
October 5, 2017
Out of Frame: The Real Life Wilson Fisk
Foundation for Economic Education
Published on 5 Oct 2017Wilson Fisk is one of the most terrifying villains in the Marvel universe. Good thing he’s just fictional, right? Wrong!
In this episode of Out of Frame, we explore the real-life Wilson Fisk, a central planner from America’s not so distant past.
Learn more about Robert Moses and his greatest nemesis, Jane Jacobs at FEE: https://fee.org/articles/jane-jacobs/
September 28, 2017
A very different kind of “hockey stick” – everything sucked until the industrial revolution
Steve Kates linked to this post at Luke Muehlhauser’s blog, showing another graph with a hockey stick pattern, but it isn’t one of the IPCC’s misleading bits of propaganda:
In How big a deal was the Industrial Revolution?, I looked for measures (or proxy measures) of human well-being / empowerment for which we have “decent” scholarly estimates of the global average going back thousands of years. For reasons elaborated at some length in the full report, I ended up going with:
- Physical health, as measured by life expectancy at birth.
- Economic well-being, as measured by GDP per capita (PPP) and percent of people living in extreme poverty.
- Energy capture, in kilocalories per person per day.
- Technological empowerment, as measured by war-making capacity.
- Political freedom to live the kind of life one wants to live, as measured by percent of people living in a democracy.
- (I also especially wanted measures of subjective well-being and social well-being, and also of political freedom as measured by global rates of slavery, but these data aren’t available; see the report.)
Anyway, the punchline of the report is that when you chart these six measures over the past few millennia (data; zoomable), you get a chart like this (axes removed for space reasons):
Click to embiggen
(And yes, there’s still a sharp jump around 1800-1870 if you chart this on a log scale.)
Basically, if I help myself to the common (but certainly debatable) assumption that “the industrial revolution” is the primary cause of the dramatic trajectory change in human welfare around 1800-1870, then my one-sentence summary of recorded human history is this:
Everything was awful for a very long time, and then the industrial revolution happened.
