Wednesday, 15 December 2004

Scorsese

People blog about their obsessions, and one of mine is Martin Scorsese movies. He has a new movie coming out tomorrow, The Aviator, and it will probably cut into my blogging time.

Here’s an excerpt from a NYT interview with Scorsese:

With “The Aviator,” the pressure is on, because assignments should be hits, to enable quixotic auteurs to win backing for the movies they really want to make. Mr. Scorsese’s labors of love – movies like “The Age of Innocence” (1993), “Kundun” (1997) and “The Last Temptation of Christ” (1988) – aren’t the kinds of projects studios line up for. His most recent film, “Gangs of New York,” released two years ago, was a 25-year labor of love whose box office returns weren’t overwhelming in relation to its $100 million budget.

Jay Cocks, a screenwriter who is Mr. Scorsese’s friend and sometime collaborator (on “The Age of Innocence” and “Gangs of New York”) explained the difference for audiences: “Movies like ‘Age of Innocence’ are what my wife calls eat-your-spinach movies. ‘The Aviator’ is not an eat-your-spinach movie. This is dessert.”

At least that’s the hope. As Hughes, Leonardo DiCaprio is meant to supply the sugar rush for the young moviegoers who make films into blockbusters. Mr. DiCaprio has been the driving force behind “The Aviator.” He is the reason it was made and the reason Mr. Scorsese, who directed him in “Gangs,” was offered the picture when Michael Mann decided not to direct.

I was apparently one of a few that really admired Gangs of New York and I’ve generally liked everything Scorsese has done, with the exceptions of The Last Temptation of Christ and Kundun. Yes, I liked The Age of Innocence, too.

My personal favorites are the troika: Taxi Driver, Raging Bull and Goodfellas, but as I said above, I like pretty much everything he’s done, with the noted exceptions taken into account.

Russia's backsliding

Anne Applebaum is one of my favorite columnists because she’s willing to take on just about anyone, including the left, though she’s an editor at the WaPo. She also wrote what is probably the definitive book on the Soviet gulags. And she’s a babe, from the looks of things—and I wasn’t influenced by the song Jet City Woman, which I just happen to be listening to at the moment. [Yeah, I realize that’s a “stream of consciousness”-type comment.]

Given her experience covering the collapse of communism in the early 90s, she’s a good person to look to for the state of affairs in Russia at the moment. It ain’t pretty:

She had just turned 18. She was a freshman at a small American college. In flawless English, she explained that she was home for Christmas, visiting her family in Moscow. We spoke about how much her city had changed in the past decade, about the new shops, about how many Muscovites now travel abroad. Then, because we were stuck in Moscow traffic and had run out of small talk, I asked her what she thought about recent events in Ukraine. “We’re really upset about it,” she said. At first I thought she meant that she and her family were upset because the Russian government had helped the Ukrainian government try to steal the election. But in fact, they were upset because they thought Ukraine might leave Russia’s sphere of influence. “If all of these countries around us join NATO and the European Union, Russia will be isolated,” she said. “We must prevent that from happening.”

These were casual comments, and they came from someone who was in no way a typical Russian. But that was precisely the oddness of it: A young woman, educated in the West, felt affronted because Russia’s neighbors want to join Western institutions. And compared with the views of some others, who are not educated in the West, hers are relatively mild. A few days later, at a seminar for high school teachers on “civic education,” I was angrily asked why the U.S. government funds Chechen terrorism and why the American government wants to destroy Russia. Certainly not everyone in Moscow labors under the belief, which my companion in the car also expressed, that Russia will never—can never—join any Western institutions, or that Russia must make a “last stand” against Western encroachment, or that Russia must, at all costs, defend the last redoubt of its empire. Last weekend, at a somewhat ramshackle congress of Russian democratic and human rights activists, I listened to a handful of them argue passionately about the nature of Russian xenophobia and how to stop it.

RTWT, and weep. It seems to me that the Russians should be focusing more attention on commerce and internal liberalization; less on any pretense of empire and the goings-on of their neighbors.

Applebaum’s old employer, The Economist, lead with Russian decline this week as well:

THE drama playing out in the streets of Ukraine in recent weeks has been gripping in its own terms. But its bigger significance for the West lies north-east of Kiev, in Russia. As the tide moves towards a presidential election victory for the opposition leader, Victor Yushchenko, on December 26th, the efforts of Russia’s president, Vladimir Putin, to thwart him have looked ever more cack-handed. But they have also depressed those who still hoped that Mr Putin’s Russia might move, slowly and tortuously, on to a path leading to political liberalism—and that he might prove an ally not a foe of the West.

As if Russia’s intervention in Ukraine were not enough, the Kremlin’s anti-western rhetoric has also risen. In an excess of hypocrisy even by Soviet standards, Mr Putin and his foreign minister, Sergei Lavrov, have accused the West of meddling in Ukraine in order to destabilise the region (see article). This week Mr Lavrov attacked the Organisation of Security and Co-operation in Europe, whose monitors declared the Ukrainian election fraudulent three weeks ago. Mr Putin then widened the field of assault by criticising Iraq’s interim government and its plans to hold elections next month.

Of course, none of this bodes well for Russia’s future—and it doesn’t even include the news that Russia will develop a new class of nuclear weapon designed to evade missile defense. It seems that President Bush’s look into Putin’s soul wasn’t quite thorough enough. It also appears that Russia will be a long-term opponent of the U.S. unless things change. It’s a shame, really. China and India are pretty good examples of countries that can embrace economic reform and fix their situations at home rather than being distracted by the workings of other countries. Russia could do the same.

Update: Dale Franks has more. He also reminded of Churchill's quote on Russia:

Russia is a riddle wrapped in a mystery inside an enigma.
That's still true as far as I can tell. Completely inscrutable and untrustworthy.

Dealing with the Norks

I’ve actually been an admirer of how the Bush Administration has dealt with North Korea. It was one of the areas that Kerry tried to use to distinguish himself from Bush on foreign policy and ended up further alienating me in the process. I never really believed he would abandon the six-way talks and deal with the Norks directly—up to, and including, re-negotiating the armistice of 1953—but was trying to draw a distinction between himself and Bush.

I said at the time that I was opposed to anything that marginalizes China, since they are the only country that has any real pull with the Norks, outside of the threat of force. Apparently we will deal with them directly on a limited basis:

The Bush administration is willing to hold limited face-to-face talks with North Korea and will continue to help feed the country, but will not sweeten a proposed trade of economic concessions for a halt in development of nuclear weapons, the U.S. ambassador to South Korea said Wednesday.

Maintaining a tough line, Ambassador Christopher Hill said, “They have to come to the table and respond to the proposal,” which includes guarantees the United States will not invade North Korea.

Hill also stressed that any direct negotiations with North Korea would be conducted only under the umbrella of the six-country format the Bush administration set up, in contrast to the Clinton administration’s one-on-one negotiations.

“We are prepared to talk to North Korea as part of the six-party process,” Hill said at the Asia Society. “But we are not prepared to undermine the six-party process” that includes China, South Korea, Japan and Russia in the talks.

I’ll be keeping an eye on this—I’m quite serious about thinking it’s a dumb idea to deal with them directly in a substantive way since that’s precisely what they want—and I think, based on the news recently, that we’re closer to a collapse of the DPRK that at any time. Their starvation has become obvious—so much so that it has stunted their physical growth—and the number of refugees has increased in recent years. Likewise, Japan has taken a more hostile approach to the Norks just in the past few days.

We’ll see. I think this limited offer is just to keep the DPRK from walking away altogether.

Since this as close to a win against Ole Miss as I'm likely to get....

...I'll take it:
They’ve said the proper things all week, praising Eli Manning’s arm strength and reminding that nothing is given on a football field, even when a team on an 11-game winning streak meets one on a six-game losing streak.

But the closer the Pittsburgh Steelers’ defense gets to facing No. 1 draft pick Manning, the more excited they get. They see the hesitancy in his eyes and the tentativeness of his throws, and they can’t wait to get at him.

While none of the Steelers wants to provide bulletin board material for the slumbering New York Giants by saying they erred by drafting Manning, it’s obvious they don’t feel he’s on the same plane as their own rookie quarterback, Ben Roethlisberger.

To them, Roethlisberger has never seemed nervous or intimidated, or exactly how they expect Manning to be when the Steelers (12–1) play the Giants (5–8) Saturday at Giants Stadium.

Of course, if the Giants win this weekend I’ll have this post for people to throw back at me, but so be it. I’ll be watching if it comes on in the Patch.

Boo-F*cking Hoo

I’m really with Volokh conspirator Orin Kerr on this one: it’s hard to throw a pity party for a professor who has to “endure” Kerry / Edwards bumper stickers and a left-leaning faculty. His biggest gripe—horror of horrors—is that some faculty members will skip the RNC. Hardly evidence of oppression. Here’s “William Pilger’s” take:

My new tenure-track digs include a large office in a historic building with leaded-pane windows, sills deep enough to stack files on, and shelves on three walls filled with my own books, departmental gems, and junk from years past.

All the signs point to it: I’m finally a bona-fide member of academe.

Yet I’m gradually coming to realize that my membership card should read “in but not of”—something the 2004 presidential election set in stark relief. Maybe I should have seen it coming all along.

I was just finishing up the requisite two-year temporary appointment last spring—at my alma mater, of all places—when a relatively small group of conservative students asserted itself more publicly than the administration wished. Their claim: A leftist bias emanating from the college administration and faculty stifled discussion and real thinking in the classroom.

I had reached the same conclusion when I was a student there. During an “Introduction to Political Science” class, for example, I was required to write paper on how to solve global warming. My paper suggested that perhaps there was no reason to, since the scientific evidence was inconclusive. I got a D.

On the paper, I’m not sure what to say other than his paper was off-topic. He could have easily written on the virtues of carbon sinks and “the Geritol solution” if he were required to write about global warming as if it were real. Admittedly, it’s open to dispute and it’s an odd topic for a “political” science class, but it seems within bounds.

Who is Margaret Cho, anyway?

And why is she quoting Vaclav Havel about orientals?

Tuesday, 14 December 2004

Losing a good one

Sgt. Hook, as a gesture towards his men, is retiring from blogging. I’ve been reading him for the last 18 months or so—swapped a few emails as well—and he’ll be sorely missed. He’s a credit to his country.

Social democracy an inevitability?

John Quiggin has a post on an article by Milton Friedman that discusses the demise of socialism in recent decades, and a similar increase in "welfare" spending (the article is for subscribers, so I have to take his word for it).

Quiggin is a social democrat so, naturally, he sees the recent gains in capitalism (neoliberalism in his lingo) as just making the sectors where capitalism succeeds smaller and making the increase of government interference an inevitability due to capitalism’s own successes. For instance, he lists agriculture and manufacturing as areas that are appropriate to capitalism, but healthcare and education, not so much.

Europe will get increasingly economically weak for the next several decades and almost all of it can be accounted for in their demographics, not their philosophy. If their philosophy stays exactly the same, they will see much more government. That's not a philosophy that's ascendant; rather, one that is stuck in its own demographic constraints.

Like Quiggin, I’m influenced by my own views and disagree with his. He sees increased government interference, and he’s probably right about most of the rest of the world, but the U.S. is still an open question as I see it. Europe will be experiencing dramatically increasing median age, which will propel its welfare states even higher than they are now as a percentage of GDP (typically around 50%, as opposed to 32% for the U.S.). The only real hope they have for immigration is from the Middle East, from a culture largely untouched by the Enlightenment. In my opinion, it’s far more likely that we’ll be seeing a Europe in the future that’s far more illiberal (in the classical sense) if they accept new immigrants, and economically so even if they don’t.

The Economist has an excellent population survey from a couple of years ago that sheds a bit of light on the situation:

For 50 years, America and the nations of Western Europe have been lumped together as rich countries, sharing the same basic demographic features: stable populations, low and declining fertility, increasing numbers of old people. For much of that period, this was true. But in the 1980s, the two sides began to diverge. The effect was muted at first, because demographic change is slow. But it is also remorseless, and is now beginning to show up.

America’s census in 2000 contained a shock. The population turned out to be rising faster than anyone had expected when the 1990 census was taken. There are disputes about exactly why this was (more on that shortly). What is not in doubt is that a gap is beginning to open with Europe. America’s fertility rate is rising. Europe’s is falling. America’s immigration outstrips Europe’s and its immigrant population is reproducing faster than native-born Americans. America’s population will soon be getting younger. Europe’s is ageing.

Unless things change substantially, these trends will accelerate over coming decades, driving the two sides of the Atlantic farther apart. By 2040, and possibly earlier, America will overtake Europe in population and will come to look remarkably (and, in many ways, worryingly) different from the Old World.

In 1950, Western Europe was exactly twice as populous as the United States: 304m against 152m. (This article uses the US Census Bureau’s definition of “Europe”, which includes all countries that were not communist during the cold war. The 15 countries that make up the European Union are a slightly smaller sample: they had a population of 296m in 1950.) Both sides of the Atlantic saw their populations surge during the baby boom, then grow more slowly until the mid-1980s. Even now, Europe’s population remains more than 100m larger than America’s.

In the 1980s, however, something curious began to happen. American fertility rates—the average number of children a woman can expect to bear in her lifetime—suddenly began to reverse their decline. Between 1960 and 1985, the American fertility rate had fallen faster than Europe’s, to 1.8, slightly below European levels and far below the “replacement level” of 2.1 (the rate required to keep the population steady). By the 1990s American fertility had rebounded, rising back to just below the 2.1 mark.

They go on to list the details of the change in median age, which are simply astounding:
According to Bill Frey, a demographer at the University of Michigan, the median age in America in 2050 will be 36.2. In Europe it will be 52.7. That is a stunning difference, accounted for almost entirely by the dramatic ageing of the European population. At the moment, the median age is 35.5 in America and 37.7 in Europe. In other words, the difference in the median age is likely to rise from two to 17 years by 2050.
Read the last sentence again: “the difference in the median age is likely to rise from two to 17 years by 2050”. Europe will get increasingly economically weak for the next several decades and almost all of it can be accounted for in their demographics, not their philosophy. If their philosophy stays exactly the same, they will see much more government. That's not a philosophy that's ascendant; rather, one that is stuck in its own demographic constraints.

The U.S. is not settled by a long shot. First, we had a chance to follow Europe towards social democracy in the 1970s. Instead, we elected Reagan and enacted tax cuts—very steep ones which were partially repealed in the coming years. We’ve done something similar with President Bush who has been characteristically headstrong in his refusal to raise taxes as the boomers start to retire. He’s pushing for reform of social security and has already implemented MSAs on a limited basis. He’s right to do it, as well. I would far rather experience some short-term pain—even excruciating pain—rather than suffer slow decline, which will surely happen with the expansion of government that Quiggin envisions.

He’s an Australian and I’ll wish him well in his country’s little adventure. I just don’t want us to follow them.

I hate British Nazis

Perry is on a bit of a roll. It appears that the UK is need of an ACLU, and perhaps a First Amendment as well. The UK apparently has a semi-funtioning Nazi Party whose members are getting arrested for “thought crimes”.

As Perry notes in his title, Nazis are pretty easy pickings. Totalitarians routinely go after easy targets—other totalitarians they oppose, pornographers and the like—to establish a precedent for broader moves against freedom. The UK is looking increasingly hostile to free speech—the canary in the coalmine for freedom, you might say.

Update: In a later comment to the same post, Perry, correctly in my estimation, says that imams, as well as their opponents, should be allowed to say whatever hateful things they wish to say. Fellow Brits should likewise be able to call them morons for saying as much. It's the exchange of ideas, however repugnant.

Another Update: Surprisingly, I managed to forget to include this quote from Jefferson, which seems wholly appropriate:

"It is error alone which needs the support of government. Truth can stand by itself. Subject opinion to coercion: whom will you make your inquisitors?" - Thomas Jefferson

Misogyny day in the blogosphere

For the first time in two weeks I was able to both get a good night’s sleep and get up at a reasonable hour. And, after spending a little time around the blogosphere, a theme began to emerge: misogyny. Much of it was done in good humor, like this excerpt from Steve:

No woman has ever forgiven any man for anything, since the dawn of time. And the things we’re least likely to be forgiven for are the things THEY did or caused. Example: you dropped your girlfriend because she refused to stop stabbing you. This makes you a touchy bastard who can’t tell sincere violence from her special way of telling you she feels neglected. Example: you dropped your girlfriend because you kept finding her at Motel 6 under guys who liked telling her what to do. This makes you a resentful wuss who watches too many reruns of “Maude.”
That was laugh-out-loud funny. And this little nugget from Allah in a subsequent post from Steve:
Look on the bright side, though: It’s much better to be an unattractive man than an unattractive woman. Ugly guys like me are just one lottery ticket away from being sex symbols. But an ugly gal? Bottoms up on the Drano, honey.
Quite bitter. If only it were true. What’s even better is watching another woman, in this instance “kelly”, clawing at the corpse of Helen Thomas by suggesting she need’s a “back-waxing”!

Michele does an excellent summary of this as follows:

Men like sex. They like football and basketball but they like sex more. Women don’t like sex as much. Their version of porn is home improvement shows. They get off on Trading Spaces. Women like shiny metal kitchen appliances. Men like power tools. You can take away a man’s football as long as you replace it with some p*ssy, but don’t take away a woman’s decorating show, because not even a ten inch d*ck will be able to replace that.
Finally, Ann Althouse pings a couple of academics for their conclusions regarding men and subordinate women.

Not that this is related, but Rachel Lucas is back in the saddle as the Blue-Eyed Infidel. She doesn’t have her picture up this time, but if memory serves she’s quite the babe. Misogynistic of me? Maybe. BTW, Allah might want to reconsider that lottery win.

(þ: The Professor.)

From Gulf War 1

“While you are away, movie stars are taking your women, Robert Redford is dating your girlfriend, Tom Selleck is kissing your lady, Bart Simpson is making love to your wife.”
—Baghdad Betty, Iraqi radio announcer to Gulf War troops.

Monday, 13 December 2004

Free speech is alive and well in America

Perry de Havilland on freedom of speech in the UK:

Making insulting remarks about any religion is like shooting fish in a barrel but the right to say what you will is vastly more important than some imaginary right to not [...] be offended. Without freedom of speech the whole damaged edifice of liberty really is in the gravest peril and if not enough British people realise that then we are in serious, serious trouble.
Despite Ashcroft’s crushing of dissent [rimshot!!], free speech is alive and well in America; anyone that saw the last campaign can testify as much.

Perry is absolutely right, though: I found Michael Moore’s speech quite offensive, yet I never thought he should be silenced. It’s also why I oppose “hate crimes” legislation: it’s an attack on thought, pure and simple. I’m reminded of SCOTUS Justice Brandeis’s statement from Olmstead v. United States:

“Experience should teach us to be on our guard to protect liberty when Government’s purpose are beneficent. Men born to freedom are naturally alert to repel invasion of their liberty by evil-minded rulers. The greatest dangers to liberty lurk in insidious encroachment of men of zeal, well meaning but without understanding.”

Sunday, 12 December 2004

The rectal chapeau brigade

George Will has a good column on the problems that face the Democratic Party these days:

The reason that Moore is hostile to U.S. power is that he despises the American people from whom the power arises. Moore’s assertion that America “is known for bringing sadness and misery to places around the globe” is a corollary of Kuttnerism, the doctrine that “middle America” is viciously ignorant.

Beinart is bravely trying to do for liberalism what another magazine editor—the National Review’s William Buckley—did for conservatism by excommunicating the Birchers from the conservative movement. But Buckley’s task was easier than Beinart’s will be because the Birchers were never remotely as central to the Republican base as the Moore-MoveOn faction is to the Democratic base.

The nation needs a 1947 liberalism—anti-totalitarian but without what Beinart calls the Bush administration’s “near-theological faith in the transformative capacity of U.S. military might.” Wish Beinart well.

Will is right, again. We need an opposition in this country that can make a credible argument against intervention, without resorting to the hysteria of the asshats at MoveOn.org. You can argue that Iraq was a strategic error—that it won’t make us safer—or that it’s not worth the loss of life, or that the military could be better used elsewhere, but it’s a hard argument to make when you actually hate your country and think it exports misery. That is Michael Moore’s legacy, and oddly he plans a sequel for 2007.

The Democrats could take a principled stand against totalitarianism, as in 1947, but I doubt they will: the lure of opportunism is too strong these days. For evidence, look at McQ's post on this Chicago obituary. Absolutely laughable: died of a broken heart due to the election. Yeah.

BTW, I still don’t like Will’s use of the word liberalism, but I think my quixotic quest to change that has run its course. For now, anyway.

China's ascendancy

China seems to be all the rage these days. I’ve seen the issue of China’s ascendancy in at least one textbook and one test in recent months. The question is generally asked as a comparative advantage question, such as “If China has an absolute advantage in producing all products (meaning it can produce each of them with fewer inputs per unit of output) against the U.S., will China still choose to trade with us?”. The answer is a modern spin on Ricardo’s “wine and wool” scenario between Britain and Portugal.

I would be interested to hear a contrary answer, provided it doesn’t contain overheated rhetoric about “predation” and so forth.

The answer, of course, is “yes”, China would continue to trade with us because it’s too expensive for them not to. Even if they have an absolute advantage in everything, they will still be internally better at producing some good and there’s an opportunity cost associated with their production choices. So it behooves us to not respond to their ascendancy with quotas or tariffs, but rather to continue trading with them. Monetary theory adds some additional difficulty but the answer should be the same (I would be interested to hear a contrary answer, provided it doesn’t contain overheated rhetoric about “predation” and so forth). Business Week has a good article on the economic history of the U.S. and Europe that provides a present-day lesson:

The close links between the U.S. and Europe fostered growth in both regions then, but how is trade affecting the U.S. today? Just as Europe prospered in the 1800s despite the rise of America, the U.S. is faring relatively well now, in a world where manufacturing jobs are moving in droves to China and white-collar jobs are outsourced to India. GDP per person in the U.S., adjusted for inflation, is up 6% since 2000 despite a recession, the terrorist attacks of September 11, 2001, and a massive trade deficit that is subtracted from GDP.

Surprisingly, real wages are up as well, as inexpensive goods from China hold down inflation and help paychecks go further. According to the latest figures from the Bureau of Labor Statistics, real wages of private-sector workers are up 3.3% since 2000. At the high end, real wages rose 5.1% for managers and 3.1% for professionals despite the recession and pressure from information-technology jobs transferring out of the country. At the less-skilled end, over the past four years there has been a 4.1% real wage increase for clerical and administrative support workers, a 3.2% gain for less-skilled blue-collar workers, and a 6.7% jump for traditionally low-paid health-care workers. These are solid improvements, even compared with the boom years of 1996 to 2000, when private-sector wages showed a 5.4% increase.

As for innovation, the U.S. still has a comparative advantage in key areas such as biotechnology and finance. Biotech, which many believe could fuel the next global boom, is still concentrated in the U.S. And the American financial system, far deeper and more robust than its fragile Chinese counterpart, is much better suited to be the global financial hub.

But as history shows, in periods of political, economic, or military turmoil, the free flow of goods, capital, and ideas can get choked off. And some countries feel the pain more than others. Europe found that out during World War I and the Great Depression. While America was developing mass production and a domestic automobile industry, “Europe was distracted by wars and interwar economic chaos,” writes economist Robert J. Gordon of Northwestern University. The result: The U.S. grew while Europe stagnated. From 1913 to 1950, U.S. GDP per person rose 1.6% per year—as fast as in the previous 100 years—while Europe struggled with a meager 0.8% annual gain.

This evening I had dinner with a buddy and he and I discussed how the U.S. is pretty unique among the nations of the world. For most of them history is a story of war, poverty and short lives. Thomas Sowell put it very well in his Fourth of July column this year:
When you have learned of the bitter oppressions that so many people have suffered under, in despotic countries around the world, have you ever wondered why Americans have been spared?

Have scenes of government-sponsored carnage and lethal mob violence in countries like Rwanda or in the Balkans ever made you wonder why such horrifying scenes are not found on the streets of America?

Nothing is easier than to take for granted what we are used to, and to imagine that it is more or less natural, so that it requires no explanation. Instead, many Americans demand explanations of why things are not even better and express indignation that they are not.

Some people think the issue is whether the glass is half empty or half full. More fundamentally, the question is whether the glass started out empty or started out full.

Those who are constantly looking for the “root causes” of poverty, of crime, and of other national and international problems act as if prosperity and law-abiding behavior were so natural that it is their absence that has to be explained. But a casual glance around the world today, or back through history, would dispel any notion that good things just happen naturally, much less inevitably.

If we have enough sense to listen to our own history, we’ll know that China, assuming they don’t have a banking crisis due to the currency peg, will not grow at our expense, but to our advantage. They’ll produce some things better than us and we’ll benefit from trade with them. Really, given their population, it’s surprising that it’s taken them so long to outgrow us in aggregate—except for the fact that they were economic communists until the 1970s.

There will be challenges due to China’s growth—and those that see economics as an extension of their penises will probably feel threatened by it—and we’ll have to address them through education, job retraining and income assistance. Even so, we’ll end up better off and, assuming they pose no military threat to us, we shouldn’t feel threatened by another country throwing off poverty and developing a middle class.

Via the still-valuable-even-though-the-election’s-over Real Clear Politics.

Saturday, 11 December 2004

Institutional inertia

With exams over less than twelve hours, I wasn’t planning on doing much thinking—who knows, after reading this you might conclude that I haven’t been doing much thinking—but this is an issue I care about. So I blog.

I read a proposal in the WSJ earlier this year, which has apparently come up again, about ending the tax deductibility of health benefits and was struck by how simple it is. I wish I still had the archive from my old site so I could find the original article.

Anyway, making benefits exempt from taxable income causes people to over-consume and employers will opt for more elaborate plans for more expensive workers. They’re the ones with the bargaining power. Will eliminating this distortion, by treating different forms of income equally, cause employers to abandon health insurance as a benefit? I suspect not for two reasons.

First is institutional inertia. Employees have come to expect employers to offer some sort of health benefit and it’s one of the first things employees think about when evaluating jobs. Employers will likely continue to offer health benefits simply because employees expect the benefits.

Another reason employers will continue to offer health benefits, even without the tax benefit, is because it’s something that they can offer relatively cheaply, as opposed to having employees get their own insurance. This won’t be true in every case, to be sure, but in general employers will be able to buy insurance at a lower rate than employees can alone, therefore adding more value to a compensation package from the employee’s perpective at a relatively low cost to the employer.

Will the benefit of eliminating the propensity to over-consume that’s built into the tax code outweigh the costs of disintermediation and other considerations? I don’t know, but on its face it doesn’t make a lot of sense to me to treat one form of income as preferable to another.

More on this issue can be found here and here.

Update: click through the "here" links if you want to see actual numbers.

Friday, 10 December 2004

Woot!, Part 2

Exams are officially over!

Thursday, 9 December 2004

Woot!

He would get my vote, if I lived PA:
Former Steelers great Lynn Swann is reportedly considering running for governor on the Republican ticket in 2006.

Monday, 6 December 2004

A terrorist futility index?

Professor Becker’s first post is online and here’s the last graf:

Moreover, the degree of certainty required before preventive actions are justified has been considerably reduced below what it was in the past because the destructive power of weaponry has enormously increased. Perhaps most worrisome, the power of weapons continues to grow, and to become more easily accessible. Critics of preventive wars and other preventive actions against rogue states and terrorist groups ignore these major changes in weaponry and their availability. Democratic governments have to recognize that they no longer have the luxury of waiting to respond until they are attacked.
I agree with everything he says in this paragraph. I’m not as crazy about the earlier analogy with criminal behavior, mostly because I think it’s too limiting. This would no doubt set off his commenters that thought attacking Iraq for speculative reasons was a mistake, but I think it’s true. The state has a much higher burden of proof in moving against (potential) criminals than it does in dealing with other states. One reason is that states deal with one another via both war and diplomacy. Hopefully not in that order, but it’s in the nature of sovereignty.

Another commenter brought up an intriguing [update: I rarely re-read posts, but if this post hadn't been up for a few hours already I would edit it and use the word inane, not intriguing] point about box cutters: more people have been killed in the U.S. by terrorists with box cutters than by nuclear weapons. Why aren’t we attacking nations that manufacture box cutters? The commenter misses the whole point of any notion of preventive war: we don’t want to be attacked with nuclear weapons in the first place. September 11th was simply a wake-up call to something that had been building since the Iranian hostage crisis, and it took a disaster to get us out of our slumber. I don’t want to have to wait for yet another disaster to wake us again. There’s an argument to be made against preventive war, but that ain’t it.

As for the title of the post? One of the commenters mentioned that we are creating additional terrorists by attacking Iraq. This is almost certainly true. The questions is, I suppose, are we arresting / killing them faster than we create them? Are we being made less safe for having gone into Iraq? I don’t know, but there’s an upper bound on the number of new terrorists—really, pent up terrorism is more accurate—and I would like to think we’re getting rid of them faster than they’re being created.

Sunday, 5 December 2004

Into the blogroll they go

Saturday, 4 December 2004

Another reason to hope for North Korea's collapse

This is what Stalinism does for you. Maybe North Korea will collapse so their people can eat:

Sixty years of North Korean communism have had a grim and unexpected impact on its citizens: it has paralysed their growth.

While their cousins in the south have thrived physiologically, thanks to the comforts of capitalism, North Koreans remain as stunted in stature as they were after the Second World War. Adolescents look like children, adults like young teenagers. Nor is the height difference a slight one. After studying more than 2,300 refugees who have fled the north over the past four years, anthropologist Sunyoung Pak has found that the average young northern male is 5.9cm (2.32in) shorter than his southern contemporary. The difference for women is 4.1cm (roughly 1.62in).

‘North Koreans are clearly suffering from chronic growth retardation,’ said Pak, of Seoul National University in South Korea. Her studies, to be published in the international journal, Economics and Human Biology, this month, suggest that North Koreans must have suffered severe malnutrition problems virtually since Korea split into two states in 1948.

Her research shows that the only ages at which the average North Korean in her sample and the average South Korean share about the same height is from 50 to 69 years. Since height is determined during the early teenage years, this suggests that North Korea began to suffer food shortages at least by the 1960s.

There may be hope, yet. I had read in recent years that the non-military portion of the population was getting by on 600 calories a day, while the military gets 1000. Neither number is good and maybe things will get bad enough that someone high up in Mr. Kim’s government will pop him.

Friday, 3 December 2004

Again on the leftward tilt of universities

Chris just commented on this extensively, but this topic seems to be all over the place (and I mentioned it earlier this week, however briefly). The Economist has an article as well by their “Lexington” on this issue of ideological bias in the universities. A quote:

This is profoundly unhealthy per se. Debating chambers are becoming echo chambers. Students hear only one side of the story on everything from abortion (good) to the rise of the West (bad). It is notable that the surveys show far more conservatives in the more rigorous disciplines such as economics than in the vaguer 1960s “ologies”. Yet, as George Will pointed out in the Washington Post this week, this monotheism is also limiting universities’ ability to influence the wider intellectual culture. In John Kennedy’s day, there were so many profs in Washington that it was said the waters of the Charles flowed into the Potomac. These days, academia is marginalised in the capital—unless, of course, you count all the Straussian conservative intellectuals in think-tanks who left academia because they thought it was rigged against them.

Bias in universities is hard to correct because it is usually not overt: it has to do with prejudice about which topics are worth studying and what values are worth holding. Stephen Balch, the president of the conservative National Association of Scholars, argues that university faculties suffer from the same political problems as the “small republics” described in Federalist 10: a motivated majority within the faculty finds it easy to monopolise decision-making and squeeze out minorities.

The more indeterminate the discipline, the more it tilts left.

Of course, I like the quote because it adds to one of my own pet theories: the more indeterminate the discipline, the more it tilts left.

There are some on the right that rather loudly oppose affirmative action in all its forms, except in academia, where they want some form of preferences for the right. This seems like a bad idea to me, and Chris said it better than I can below: “Replacing liberal ideologues who can’t keep their lectures and their leftism separate with right-wingers with similar faults is no solution.”

It’s not as much of a threat in my discipline, economics, as it is in other fields. As my Thought professor has pointed out at great length, the economic discipline has created a “little box” which it defines as theory. The box is supposedly used as a means of keeping ideas that aren’t fully explainable out of the body of theory. There’s also a nearly complete positive correlation in favor of those ideas that can be expressed using math. Again leading to my theory about how indeterminate a discipline is sets its leftward tilt.

More on the dollar

Talk about the dollar has been all the rage these days. The Economist is leading with it as an issue this week. Seeing the dollar fall this much is bothersome—and may be very bad news, for all I know—but it still seems to be about forcing China to break that peg. As for The Economist’s suggestion that we focus on the budget deficit, as long as it’s confined to spending restraint, I agree. The tax cuts, though, need to stay in place to force the issue of entitlement reform. Future tax increases—and there will be future tax increases—should be implemented once that’s been accomplished. Here’s what The Economist had to say:

In a free market, without the massive support of Asian central banks, the dollar would be far weaker. In any case, such support has its limits, and the dollar now seems likely to fall further. How harmful will the economic consequences be? Will it really undermine the dollar’s reserve-currency status?

Periods of dollar decline have often been unhappy for the world economy. The breakdown of Bretton Woods that led to a weaker dollar in the early 1970s was painful for all, contributing to rising inflation and recession. In the late 1980s, the falling dollar had few ill-effects on America’s economy, but it played a big role in inflating a bubble in Japan by forcing Japanese authorities to slash interest rates.

This time round, it is a bad sign that everybody is trying to point the finger of blame at somebody else. America says its external deficit is mainly due to sluggish growth in Europe and Japan, and to the fact that China is pegging its exchange rate too low. Europe, alarmed at the “brutal” rise in the euro, says that America’s high public borrowing and low household saving are the real culprits.

There is something to both these claims. China and other Asian economies should indeed let their currencies rise, relieving pressure on the euro. It is also true that Asia is partly to blame for America’s consumer binge: its central banks’ large purchases of Treasury bonds have depressed bond yields, encouraging households in the United States to take out bigger mortgages and spend the cash. And Europe needs to accept, as it is unwilling to, that a weaker dollar will be a good thing if it helps to shrink America’s deficit and curb the risk of a future crisis. At the same time, Europe is also right: most of the blame for America’s deficit lies at home. America needs to cut its budget deficit. It is not a question of either do this or do that: a cheaper dollar and higher American saving are both needed if a crunch is to be avoided.

We’ve been here before, as they note, in the 1980s. It wasn’t disastrous then, unless you happened to live in Japan, and it needn’t be disastrous this time either. China could start by breaking that peg and we could start by getting spending under control. Entitlement reform would be nice as well. Given that the unfunded liabilities for them are in the tens of trillions of dollars, they’re a far bigger long term problem.

Thursday, 2 December 2004

One can hope.

As a guy who dislikes the UN intensely, this report provides some hope:

In this environment, the prospects for UN reform are clouded. Structural changes like those in the report require the backing of two-thirds of the delegates in the General Assembly, further ratification by two-thirds of the governments at home, and no veto by the Security Council’s permanent members. America is in a foul mood about the world body. Why bother reforming something hopelessly ineffective and even corrupt, many there ask? Despite universal agreement that the UN is in a bad way, the case for reform faces an uphill struggle.
As I said, one can hope. I wouldn’t mourn the UN’s passing, either.

Wednesday, 1 December 2004

American education

The Economist has a good article on the American school system that makes a number of good points on its failings:

ONE reason that America’s public schools do badly in international rankings, despite getting more money, is that nobody is really accountable for them. The schools are certainly not run by Washington: the federal government pays only 8% of their costs. Most of their money comes from state and local government, but often responsibility for them lies with school boards. And within the schools themselves, head teachers usually have little power either to sack bad teachers or to expel rowdy pupils.

Until recently, the main villains of the piece had seemed to be the teachers’ unions, who have opposed any sort of reform or accountability. Now they face competition from an unexpectedly pernicious force: the courts. Fifty years ago, it was the judges who forced the schools to desegregate through Brown v Board of Education (1954). Now the courts have moved from broad principles to micromanagement, telling schools how much money to spend and where—right down to the correct computer or textbook

Not much to disagree with in the entire article.

Tuesday, 30 November 2004

Spontaneous order, distributed systems, God, etc.

Amazing how the blogosphere works. I started reading an interesting post on evolution at OTB and ended with a defense of comparative advantage by Paul Krugman that incorporates a prominent mention of natural selection. And I got there via a picture of Jane Galt (via Tyler Cowen), though it’s desperately unrevealing (it’s from behind, perverts).

The OTB post begins with a description of how “intelligent design” advocates are pushing that as an alternative to evolution. There’s no evidence for it—except for our lack of knowledge, or complete knowledge, on the universe’s origin—and it seems ridiculous to me when pushed as science. My own views are theistic, though there’s no evidence to support it other than our existence. It tells me nothing on how we got here. Evolution does.

Perhaps someone could explain why some people find evolution—and natural selection—so threatening? I don’t get it. Jesus taught us with parables; are opponents of evolution saying God couldn’t master allegory? Being a creator of the universe and all, I think He would have a handle on it, and His audience. Isn't it possible that God did know His audience and was explaining the origins of the universe in a way they could understand? It would have been more convenient if He had provided a seminar in physics and evolutionary biology, but I doubt His audience would have grasped it, lacking calculus and all. Evolution doesn’t preclude a creator, it only explains what we can observe. I’ll say it again: I don’t get it, there’s no threat here. I’ll leave it to Brock to argue with y’all over infinity.

As for Jane’s link to Krugman, it’s quite alarming, really. I’m so used to his hyperventilating over everything from Iraq to healthcare that I’m stunned when he seems reasonable. It’s a great article and worthy of a thorough read, which I’ll give it when exams are done.