Quotulatiousness

August 22, 2015

Coming soon to Massachusetts (maybe) – pot pubs

Filed under: Law, Liberty, USA — Tags: , , , — Nicholas @ 03:00

In Forbes, Jacob Sullum looks at the finalized ballot initiative to be presented to Massachusetts voters in the next general election:

When the Campaign to Regulate Marijuana Like Alcohol in Massachusetts unveiled the text of its 2016 legalization initiative this month, the group highlighted several features of the measure but omitted the most interesting one. The Regulation and Taxation of Marijuana Act would allow consumption of cannabis products on the premises of businesses that sell them, subject to regulation by the state and approval by local voters.

That’s a big deal, because until now no jurisdiction has satisfactorily addressed the obvious yet somehow touchy question of where people can consume the cannabis they are now allowed to buy. The legalization initiatives approved by voters in Colorado, Washington, Oregon, and Alaska all promised to treat marijuana like alcohol, which implies allowing venues similar to taverns where people can consume cannabis in a social setting. Yet all four states say businesses that sell marijuana may not let customers use it on the premises.

Although a few “bring your own cannabis” (BYOC) clubs have popped up to accommodate people who want to use marijuana outside their homes from time to time, the legality of such establishments is a matter of dispute. The result is that people can openly buy marijuana without fear, but they still have to consume it on the sly, just like in the bad old days. The problem is especially acute for visitors from other states, since pot-friendly hotels are still pretty rare.

August 20, 2015

How Buildings Learn – Stewart Brand – 4 of 6 – “Unreal Estate”

Filed under: Architecture, Randomness, Technology — Tags: , , , , — Nicholas @ 03:00

Published on 10 Jun 2012

This six-part, three-hour, BBC TV series aired in 1997. I presented and co-wrote the series; it was directed by James Muncie, with music by Brian Eno.

The series was based on my 1994 book, HOW BUILDINGS LEARN: What Happens After They’re Built. The book is still selling well and is used as a text in some college courses. Most of the 27 reviews on Amazon treat it as a book about system and software design, which tells me that architects are not as alert as computer people. But I knew that; that’s part of why I wrote the book.

Anybody is welcome to use anything from this series in any way they like. Please don’t bug me with requests for permission. Hack away. Do credit the BBC, who put considerable time and talent into the project.

Historic note: this was one of the first television productions made entirely in digital— shot digital, edited digital. The project wound up with not enough money, so digital was the workaround. The camera was so small that we seldom had to ask permission to shoot; everybody thought we were tourists. No film or sound crew. Everything technical on site was done by editors, writers, directors. That’s why the sound is a little sketchy, but there’s also some direct perception in the filming that is unusual.

August 17, 2015

Food fears and GMOs

Filed under: Environment, Food, Health, Media, Politics, Science — Tags: , , , — Nicholas @ 03:00

Henry I. Miller and Drew L. Kershen on the widespread FUD still being pushed in much of the mainstream media about genetically modified organisms in the food supply:

New York Times nutrition and health columnist Jane Brody recently penned a generally good piece about genetic engineering, “Fears, Not Facts, Support GMO-Free Food.” She recapitulated the overwhelming evidence for the importance and safety of products from GMOs, or “genetically modified organisms” (which for the sake of accuracy, we prefer to call organisms modified with molecular genetic engineering techniques, or GE). Their uses encompass food, animal feed, drugs, vaccines and animals. Sales of drugs made with genetic engineering techniques are in the scores of billions of dollars annually, and ingredients from genetically engineered crop plants are found in 70-80 percent of processed foods on supermarket shelves.

Brody’s article had two errors, however. The first was this statement, in a correction that was appended (probably by the editors) after the article was published:

    The article also referred imprecisely to regulation of GMOs by the Food and Drug Administration and the Environmental Protection Agency. While the organizations regulate food from genetically engineered crops to ensure they are safe to eat, the program is voluntary. It is not the case that every GMO must be tested before it can be marketed.

In fact, every so-called GMO used for food, fiber or ornamental use is subject to compulsory case-by-case regulation by the Animal and Plant Health Inspection Service (APHIS) of USDA and many are also regulated by the Environmental Protection Agency (EPA) during extensive field testing. When these organisms — plants, animals or microorganisms — become food, they are then overseen by the FDA, which has strict rules about misbranding (inaccurate or misleading labeling) and adulteration (the presence of harmful substances). Foods from “new plant varieties” made with any technique are subject to case-by-case premarket FDA review if they possess certain characteristics that pose questions of safety. In addition, food from genetically engineered organisms can undergo a voluntary FDA review. (Every GE food to this point has undergone the voluntary FDA review, so FDA has evaluated every GE food on the market).

The second error by Brody occurred in the very last words of the piece, “the best way for concerned consumers to avoid G.M.O. products is to choose those certified as organic, which the U.S.D.A. requires to be G.M.O.-free.” Brody has fallen victim to a common misconception; in fact, the USDA does not require organic products to be GMO-free.

August 15, 2015

Still suffering from the injustices of a caste system? Just apply capitalism

Filed under: Bureaucracy, Economics, India — Tags: , , , — Nicholas @ 03:00

Swaminathan S. Anklesaria Aiyar explains how the introduction of free market practices is rapidly undermining the ancient caste system in India:

Karl Marx was wrong about many things but right about one thing: the revolutionary way capitalism attacks and destroys feudalism. As I explain in a new study, in India, the rise of capitalism since the economic reforms of 1991 has also attacked and eroded casteism, a social hierarchy that placed four castes on top with a fifth caste — dalits — like dirt beneath the feet of others. Dalits, once called untouchables, were traditionally denied any livelihood save virtual serfdom to landowners and the filthiest, most disease-ridden tasks, such as cleaning toilets and handling dead humans and animals. Remarkably, the opening up of the Indian economy has enabled dalits to break out of their traditional low occupations and start businesses. The Dalit Indian Chamber of Commerce and Industry (DICCI) now boasts over 3,000 millionaire members. This revolution is still in its early stages, but is now unstoppable.

Milind Kamble, head of DICCI, says capitalism has been the key to breaking down the old caste system. During the socialist days of India’s command economy, the lucky few with industrial licenses ran virtual monopolies and placed orders for supplies and logistics entirely with members of their own caste. But after the 1991 reforms opened the floodgates of competition, businesses soon discovered that to survive, they had to find the most competitive inputs. What mattered was the price of your supplier, not his caste.

August 8, 2015

Election issue – the Netflix tax, “much ado about nothing?”

Filed under: Business, Cancon, Media, Politics — Tags: , , , , , — Nicholas @ 04:00

Michael Geist looks at the major federal party leaders’ reactions to discussion of a “Netflix tax”:

As part of the digital strategy discussion, I stated that questions abound, including “are new regulations over services such as Netflix on the horizon?”

Prime Minister Stephen Harper addressed that question yesterday with a video and tweet in which he pledged that the Conservatives will never tax digital streaming services like Netflix and Youtube. Harper added that the Liberals and NDP have left the door open to a Netflix tax, but that he is 100% opposed, “always has been, always will be.” Both opposition parties quickly responded with the NDP saying they have not proposed a Netflix tax and the Liberals saying they have never supported a Netflix tax and do not support a Netflix tax.

So is this much ado about nothing?

Not exactly. First, there are groups and provincial governments that support a Netflix tax or mandated contribution to fund the creation of Canadian content. These include the Ontario and Quebec governments along with many creator groups. Earlier this year, I obtained documents under the Ontario Freedom of Information and Protection of Privacy Act that showed that the Ontario government spent months working toward a recommendation to expand the regulation of new media, including Canadian content requirements and increased regulation of foreign online video providers.

Second, while the Liberals and NDP have not proposed a Netflix tax, they have called for requirements that online video providers disclose revenues, Canadian content availability, and subscriber numbers to Canadian regulators. This is a very soft form of regulation that Netflix and Google have rejected as beyond the power of the Broadcasting Act. Providing information to allow for more informed regulatory analysis does not seem particularly unreasonable, but the companies unsurprisingly fear that that analysis could ultimately lead to calls for more regulation or payments.

Third, the real Netflix tax is the prospect of a levying sales taxes on digital products such as music downloads or online video services. It was the Conservatives that raised this possibility in the 2014 budget, launching a consultation on the issue that garnered supportive comments from companies such as Rogers, which noted that Canadian-based online video services such as Shomi operate at a disadvantage since they collect GST/HST, but Netflix does not. With many countries moving toward some form of digital taxation (as I noted in a January 2015 column on the issue, the real challenge lies in the cost of implementation), it seems inevitable that Canada will do the same in order to level the playing field and recoup a growing source of revenue. The Conservatives would presumably seek to differentiate between a generally applicable sales tax and a tax or fee targeting online streaming services, though many may feel it is a distinction without a difference.

August 4, 2015

Alex Tabarrok explains the “Happy Meal fallacy”

Filed under: Business, Economics, Food, Law — Tags: , — Nicholas @ 04:00

Another post from last month that I’m just getting around to linking:

Some restaurants offer burgers without fries and a drink. These restaurants cater to low-income people who enjoy fries and drinks but can’t always afford them. To rectify this sad situation a presidential candidate proposes The Happy Meal Act. Under the Act, burgers must be sold with fries and a drink. “Burgers by themselves are not a complete, nutritious meal,” the politician argues, concluding with the uplifting campaign slogan, “Everyone deserves a Happy Meal!”

But will the Happy Meal Act make people happy? If burgers must come with fries and a drink, restaurants will increase the price of a “burger.” Even though everyone likes fries and a drink they may not like the added benefits by as much as the increase in the price of the meal. Indeed, this must the case since consumers could have bought the meal before the Act but chose not to. Requiring firms to sell benefits that customers value less than their cost makes both firms and customers worse off.

The Happy Meal Fallacy is fairly obvious when it comes to happy meals but now let’s consider the debate over the gig economy and the hiring of employees versus contractors. Employees are entitled to benefits that contractors are not. Thus the standard conclusion is that classifying workers as contractors “is great for employers but potentially terrible for workers.” Wrong. Employees get their wages with fries and a drink while contractors get wages only. Would a law requiring firms to provide all workers with fries and a drink help workers?

If firms are required to provide benefits to contractors they will lower the contractor wage. But how do we know the extra benefits aren’t worth the reduction in wages? If the extra benefits were worth more to workers than they cost firms, firms would have eagerly provided these benefits as a way of increasing profits. Firms can profit whenever buyers are willing to pay more for a product than its cost. Benefits are a product that workers buy from firms.

August 3, 2015

Why Do Governments Enact Price Controls?

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

Published on 25 Feb 2015

If price controls have negative consequences, why do governments enact them? Let’s revisit our example of President Nixon’s wage and price controls in the 1970s. These price controls were popular, as is demonstrated by Nixon being re-elected after they went into effect. The public didn’t think that the price controls were to blame for things such as long lines at the fuel pump. Without knowledge of the economics behind price controls, the public blamed foreign oil cartels and oil companies for the shortages.

In this video we’ll also address questions such as: do price controls — like rent controlled apartments and the minimum wage — help the poor? Are there better ways to help the poor? If so, what are they? Let’s find out.

July 22, 2015

Price Floors: Airline Fares

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

Published on 25 Feb 2015

In this video, we cover how price floors lead to wasteful increases in quality and a misallocation of resources. Using the real-world example of airline regulations from 1938-1978, we show how price floors can be used to restrict entry and reduce competition within an industry. When the Civil Aeronautics Board regulated airline fares, airlines couldn’t compete on price so they instead had to compete by increasing quality. This may sound like a good thing, but we’ll show how this actually created quality waste since the cost of that quality was higher than the value to the customers. Price floors also lead to the misallocation of resources by preventing competition and responsiveness to consumer demand. In this video, we’ll show you how consumers are negatively affected by price floors.

July 10, 2015

A new and exciting (if you’re a lawyer) aspect of photography

Filed under: Europe, Law, Liberty — Tags: , , , — Nicholas @ 03:00

As a casual photographer, I think very little about taking a photo of a building or landscape visible from the sidewalk or other public place. This casual attitude may become a relic of the past if EU regulators have their way, as Brian Micklethwait explains:

Basically, some EU-ers are talking about making it illegal to profit without permission by taking a photo, in public, of a publicly visible building or work of art, and then posting it on any “profitable” blog or website. The nasty small print being to the effect that the definition of “profitable” is very inclusive. For the time being, it would exclude my personal blog, because my blog has no income of any kind. But does Samizdata get any cash, however dribblesome, from any adverts, “sponsorships”, and so forth? If so, then me placing the above photo of the Shard at Samizdata might, any year now, become illegal, unless Samizdata has filled in a thousand forms begging the owners of the Shard, and for that matter of all the buildings that surround it, to allow this otherwise terrible violation of their property rights, or something.

“Might” because you never really know with the EU. At present this restriction applies in parts of the EU. It seems that a rather careless MEP tried to harmonise things by making the whole of the EU as relaxed about this sort of things as parts of it are now, parts that now include the UK. But, the EU being the EU, other EU-ers immediately responded by saying, no, the way to harmonise things is to make the entire EU more restrictive. Now the MEP who kicked all this off is fighting a defensive battle against the very restriction she provoked. Or, she is grandstanding about nothing, which is very possible.

Being pessimistic about all this, what if the restriction does spread? And how long, then, before the definition of “for profit” is expanded to include everything you do, because if it wasn’t profitable for you, why would you do it? At that point, even my little hobby blog would be in the cross hairs, if I ever dared to take and post further pictures of London’s big buildings.

Some better news for me is that if this scheme proceeds as far as it eventually might, my enormous archive of photographs of people taking photographs will maybe acquire a particular poignancy. It will become a record of a moment in social history, which arrived rather suddenly, and then vanished. Like smoking in public.

July 1, 2015

QotD: The CRTC, Canada’s most fascistic government body

Filed under: Bureaucracy, Cancon, Media, Quotations — Tags: , , , , — Nicholas @ 01:00

The CRTC is an even more odious organization. Back in 1920s both the Canadian and American governments declared the broadcast spectrum to be public property. So a technology pioneered and commercialized by the private sector, in both countries, was essentially nationalized by the state. Since it was a new industry it lacked the ability to effectively lobby Washington and Ottawa. The result has been that a large and important sector of our modern economy now lives and dies at the whim of an unelected government agency: The CRTC.

Of all the organs of Canadian government the CRTC has always struck me as the most fascistic. You could rationalize socialize health care, public education and government financed infrastructure as doing useful things in a terribly statist way. The CRTC is at an exercise in make work at best. At worse it’s an attempt to impose indirect censorship on the Canadian people. Beneath the reams of government drafted euphemisms the blunt truth behind the CRTC is that we mere Canadians are not clever enough, not patriotic enough or sufficiently sensible to watch and listen to the right things in the right way.

The existence of the CRTC explains much of the timorousness of Canadian broadcasting. The Americans did away with the Fairness Doctrine in 1987, thereby triggering the explosion in talk radio in the early 1990s. While Canada never had an exact equivalent, the regulations surrounding who could and could not receive or retain a license were sufficiently vague to make such a rule unnecessary. A nod and a wink from the right people at the right time was enough to indicate what type of broadcasting would or would not be acceptable.

The result was an insufferable group think that could no more be defined than challenged. There were unwritten rules of etiquette that forbade serious discussion from talking place on a whole host of issues: Abortion, capital punishment, race relations, linguistic issues and any frank discussions of our socialized health care system. It wasn’t that these discussions didn’t take place in a public forum, the newspapers and magazines were largely unregulated, but broadcasting was the late twentieth century’s pre-eminent mass media. It’s where ordinary people got their news and opinions.

Richard Anderson, “And All Must Have Prizes”, The Gods of the Copybook Headings, 2014-09-24.

June 30, 2015

Extending the ADA to the web

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

Amy Alkon discusses why the notion of expanding the Americans with Disabilities Act to cover the internet would be a terrible idea:

So few people understand how laws passed can be used — and easily misused. Stretched into something they were never supposed to be (or not what they were said to be about, anyway).

For example, Title IX was supposed to be about allowing girls equal participation in school sports. The Obama admin has turned it into a system of campus kangaroos courts removing due process from men accused of sexual assault.

Next in line for strrretching is the Americans with Disabilities Act.

[…]

Bader gives some examples from Walter Olson, from his testimony to Congress, of awful changes that would ensue, like that amateur publishing would become “more of a legal hazard.” They’d go after websites like mine, that make a few shekels from Amazon links and a few more from Google ads. I need this money to supplement the money that’s fallen out of newspaper writing; also, I love the people who comment here and the discussion that goes on. It’s what keeps my eyes pried open at 11 p.m. when I need to post a blog item half an hour after I should have gone to bed for my 5 a.m. book- and column-writing wakeup time.

Also, added in the morning, after waking up worrying about this all night — making something “accessible” for a tiny minority could ruin it for everyone.

And what sort of understanding do we really owe people? I don’t do well with complex physics and I have limited attention for things I don’t understand that don’t grab my interest enough to figure them out. Should physics websites dumb themselves down for Amy Alkon’s brain? How many scientific websites will be brought down by disabled people going around to them like the quadriplegic lawyer in the wheelchair filing profit-making suits and closing classic hamburger stands and other businesses in California over ADA claims?

June 29, 2015

Price Ceilings: Shortages and Quality Reduction

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

Published on 25 Feb 2015

Price ceilings result in five major unintended consequences, and in this video we cover two of them. Using the supply and demand curve, we show how price ceilings lead to a shortage of goods and to low quality goods. Prices are signals that indicate to suppliers how much is being demanded, but when prices are kept artificially low with price ceilings, suppliers have no way of knowing how many goods they should produce and sell, leading to a shortage of goods. Quality also decreases under price controls. Do you ever wonder why the quality of customer service at Starbucks is generally better than at the DMV? The answer lies in incentives and price ceilings. We’ll discuss further in this video.

More on the “self-driving truck” issue

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

In the comments to this post, Tom Kelley provided a worthwhile digression on the topic that I felt deserved a wider audience, so with his permission, here’s Tom’s response:

Given that the trucking industry has been my sandbox for quite some time, I can safely extend Megan’s prognosis to also include the low long-term risk of job losses due to self-driving vehicles.

Frankly, I have to be wary of any “expert” who can’t even get the name of his source (the American Trucking Associations — yes, plural — not the American Trucker Association) transcribed correctly.

Apart from the myriad technical issues standing in the way of driverless trucks, the insurmountable barrier is anti-competitive trucking regulations passed on behalf of the government’s favorite white elephant, the rail industry. Invariably, these regulations are tarted up under some guise of safety (Let’s see, was it a truck or a train that blew the town of Lac-Mégantic off the map??? Hmm).

The bottom line is that any change that would have the slightest possibility of making trucking more productive is quickly met with massive dis-information campaigns, and even more massive lobbying from the rail industry. Even the most minor dimensional changes designed to reflect the current realities of truck freight transportation stand little if any chance of making it past regulators with a permanent disdain for free enterprise.

We can’t have electronically actuated brakes on trucks because the regulators have no grasp of brakes or electronics, and somebody wants to replace the driver with electronics? Seriously? Of course these same folks seen to have no problem flying cross-country at 500 MPH in a commercial jetliner that is literally flown by wire.

And even if the government types were perfect actors in this little tale, then you have the American tort law system, run/regulated by, for, and about the trial lawyers. Even with professional truck drivers who can deftly avoid putting incompetent car drivers on their way to a Darwin award, hundreds of four-wheeler drivers still manage to commit suicide-by-truck every year, followed quickly by their otherwise destitute estates suing innocent trucking companies for millions.

Can’t you just hear the jury summation now: “The eeevvilll trucking company wanted to save a few pennies by outsourcing the driver’s job to a microchip! The must be punished! My client, a fourth cousin of the homeless man who jumped off a bridge in front of a truck MUST be awarded $10 million for the pain and suffering from losing a relative he never met. No justice, no peace!”

No insurance company in their right mind would insure a driverless truck for real-world operation.

There’s no question that the technology is available to make the concept work, I was on-board numerous autonomous vehicles of all sizes back in 1997.

It will take several major societal shifts before any serious degree of autonomy makes it into real world trucking operations.

June 27, 2015

QotD: The corporate tax game

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

You can think of corporate taxation as a sort of long chess match: The government makes a move. Corporations move in response — sometimes literally, to another country where the tax burden is less onerous. This upsets the government greatly, and the Barack Obama administration in particular. Treasury Secretary Jack Lew has written a letter to Congress, urging it to make it stop by passing rules that make it harder to execute these “inversions.”

I’ve got a better idea: What if we made our tax system so attractive to corporations that they would have no interest in moving themselves abroad?

The problem with this extended chess game is that every move is very costly. First, it adds to the complexity of the tax code. With every new rule — no matter how earnestly said rule attempts to close a “loophole” — it becomes harder to know whether you are in compliance with the law. This is true on both sides; corporate tax law has now passed well beyond the point where it is possible for a single expert to be familiar with its ins and outs. This makes it harder to plan business expansions, harder to forecast government revenue, and it requires both sides to hire more experts in order to determine whether corporations are compliant. It also means more lawsuits, and longer ones, as both sides wrangle over how this morass of laws should be applied to real-world situations.

You can think of it this way: Every new law has possible intersections with every other tax law in existence. As the number of laws grows, the number of possible intersections grows even faster. And each of those intersections represents both a possible way to avoid taxes and a potential for unintended consequences that inadvertently outlaw something Congress never intended to touch. This growing complexity makes it more and more difficult for either companies or lawmakers to forecast the ultimate effects of new tax laws.

Megan McArdle, “We Don’t Need a Corporate Income Tax”, Bloomberg View, 2014-07-16.

June 24, 2015

QotD: Surge pricing

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

New York just killed every economist’s favorite thing about Uber: surge pricing. Sure, many economists also love convenient car service at the touch of a button. But black-car services have been around for a long time. Explicit surge pricing — which both creates new supply and rations demand — has not, but it’s long been a core feature of Uber Technologies Inc.’s business model. While it can be annoying at times (during a recent rainstorm, I noticed a sudden epidemic of drivers canceling rides, which I suspect was due to the rapidly rising surge price), it also allows you to be sure that you will be able to get a taxi on New Year’s Eve or during a rainstorm as long as you’re willing to pay extra.

Sadly, no one else loves surge pricing as much as economists do. Instead of getting all excited about the subtle, elegant machinery of price discovery, people get all outraged about “price gouging.” No matter how earnestly economists and their fellow travelers explain that this is irrational madness — that price gouging actually makes everyone better off by ensuring greater supply and allocating the supply to (approximately) those with the greatest demand — the rest of the country continues to view marking up generators after a hurricane, or similar maneuvers, as a pretty serious moral crime.

Megan McArdle, “Uber Makes Economists Sad”, Bloomberg View, 2014-07-09.

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