Reminder: The much greater mystery is why people don’t go on shooting sprees or crash planes on purpose ALL THE TIME.
Reminder: The much greater mystery is why people don’t go on shooting sprees or crash planes on purpose ALL THE TIME.
3. Physics in 100 years (pdf, recommended)
Here is one excerpt from his very interesting post:
I get and very much like the skeptical, anti-theoretical thrust of Strauss. I like his deep wariness of ideal theorizing, his exhortations to pay attention to the political life we are always already living. He’s right to see reasoning with others about about how to live as an inherently political activity. He’s right to insist on honoring the distinctive excellences of those sensitive to the texture of real political life and expert in its ceaseless negotations. He’s right that social scientific theories about politics are less politically valuable then good political judgment, and that people who think they’re going to govern “scientifically” are dangerously stupid. (Paraphrasing, here.) And, yes, when philosophy is merely a handmaiden to the dogmas of our age, pursued under the “ecumenical supervision” of the universities, it is profoundly compromised. To be a philosopher is not to have a job you clock in and out of. To be a philosopher is simply to be, philosophically, always. Right! But the Socratic life is the one very best life? The naturally right, life? Nope. Nope. I’ve read and read and never quite follow how we end up there. I mean, I think this is a great life, beyond wonderful. But nope.
Anyway, Strausseans are strangely obsessed with this idea that the philosophical life, so construed, is the best human life, full stop, and are therefore obsessed with the tension between the best life, which is in the business of exposing bullshit, and the political life, which is built on it.
I am very happy to order this book in advance, I hope Will lets me know when that is possible.
I was pleased to have been invited to deliver one of the comments at Elizabeth Anderson’s Tanner lectures at Princeton a few weeks ago. I have put the comment on my home page here. I introduce the topic in this manner:
I won’t summarize her views, but I will pull out one sentence to indicate her stance: “Here most of us are, toiling under the authority of communist dictators, and we don’t see the reality for what it is.” These communist dictators are, in her account, private business firms. That description may be deliberately hyperbolic, but nonetheless it reflects her attitude that capitalist companies exercise a kind of unaccountable, non-democratic power over the lives of their workers, in a manner which she thinks is deserving of moral outrage.
Here is one bit from my response:
This may sound counterintuitive or even horrible to many people, but the economist will ask whether workers might not enjoy “too much” tolerance and freedom in the workplace, at least relative to feasible alternatives. For every benefit there is a trade-off, and the broader employment offer as a whole might involve too little cash and too much freedom and tolerance. To oversimplify a bit, at the margin an employer can pay workers more either with money or with freedom and tolerance, which we more generally can label as perks. Money is taxed, often at fairly high rates, whereas the workplace perks are not; that’s one reason why a lot of Swedish offices are pretty nice. It’s simple economics to see that, as a result, the job ends up with too many perks and not enough pay, relative to a social optimum. I doubt if our response to this distorting tax wedge, which can be significant, should be to increase the perks of the workers rather than focusing on their pay.
In fact there are some reasons why labor-managed firms may give their workers less personal freedom. The old-style investment banking and legal partnerships expected their owner-members to adhere to some fairly strict social and professional codes, even outside the workplace. More generally, when workers are motivated to monitor each other, through the holding of equity shares, monitoring becomes easier and so corporations engage in more of it. Again, the main issue is not controlling bosses vs. freedom-seeking workers.
Do read the whole thing.
I may not follow any of your suggestions, but just thought I should ask for advice, for my dialogue with Peter next week. I am the interviewer, he is the interviewee, more or less. #CowenThiel
As a scientist in the biopharma world, I can tell you this this does indeed seem very close to being done in humans, and that there is a very high (but still not perfect) chance of success. CRISPR/Cas9 is the real deal, and there are others competing for its spot as well (such as zinc-finger TALEN technology, whose discoverers have just called for a similar moratorium on human germ-line work). There’s no need to whisper about possible Nobel Prizes in this area – the only difficulty for the Nobel committees will be figuring out how to divide the credit and who exactly to recognize.
The first human applications would surely be the obvious single-mutation genetic diseases. In most cases, this would be done best as germ-line work, followed by in vitro fertilization. The children born after such a process would, of course, pass their altered/repaired DNA to their own offspring, and it’s this possibility that has people worried, in case we get it wrong, or in case we start messing around for more arguable traits. (Fixing these problems after you’ve become a fully sized human is harder, because you have to find a way to treat enough cells in the body to make a lasting difference).
Many of the possibilities that people are most worried about are harder to pin down, though. There’s no single gene for height, for example, or intelligence (or Alzheimer’s or diabetes, for that matter, to stick with the fixing-what’s-broken part of the landscape). Many of the really sticky issues are still a bit downstream, awaiting a better understanding of the human genome, but the big fundamental one is indeed here now: the first deliberate editing of the human genetic inheritance. Tyler’s absolutely right about that one – it could be done right now by anyone with the nerve to do it.
Here is Derek’s website.
One of the most remarkable discoveries of economics is that under the right conditions competitive markets allocate production across firms in just that way that minimizes the total costs of production. (You can find a discussion of this remarkable property in Modern Principles. See also this MRU video.)
One of the necessary conditions for this result is that firms must face the same input and output prices. If one firm is subsidized and another taxed, for example, then resources will be misallocated and total costs will increase. In a pioneering paper, Klenow and Hsieh measure misallocation across firms in China, India and the United States and they find that micro misallocations can have large, macroeconomic effects. In particular, if capital and labor were allocated as well in China and India as they are in the United States then output in those countries would double.
We can get some intuition for the costs of resource misallocation by looking at water in California. As you may have noticed at the grocery store, almonds are in demand right now whether raw or in almond milk. Asian demand for almonds is also up. As a result, in the last 10 years almond production in California has doubled. That’s great, except for the fact that almond production uses a huge amount of water and water in CA is severely mispriced and thus misallocated.
In my previous post, I pointed out that agriculture uses 80% of the water in California but accounts for less than 2% of the economy. So how much water does almond production alone use? More water is used in almond production than is used by all the residents and businesses of San Francisco and Los Angeles combined. Here’s a chart from Mother Jones:
(Aside: Some of this water is naturally recycled so net use is likely somewhat lower but a lot of water in California is now being pumped from the aquifer and that water isn’t being replenished.)
At the same time as farmers are watering their almonds, San Diego is investing in an energy-intensive billion-dollar desalination plant which will produce water at a much higher cost than the price the farmer are paying. That is a massive and costly misallocation of water.
In short, we are spending thousands of dollars worth of water to grow hundreds of dollars worth of almonds and that is truly nuts.
Hat tip: Walter Olson.
That is the new and excellent book by Andrew G. Walder. Here is one excerpt:
The Communists’ contribution to the war effort was extremely modest. According to a December 1944 Soviet Comintern report, a total of more than 1 million Nationalist troops had been killed in battle, compared to 103,186 in the CCP’s Eighth Route Army and another several thousand in the New Fourth Army. The Communists suffered only 10 percent of total Chinese military casualties. One author has called Mao’s famous doctrine of people’s war one of the “great myths” about the period: “people’s war was hardly used in the conflict against the Japanese.”
In this article, we investigate cosmopolitan attitudes among the people often considered the most cosmopolitan – the elite. Studying the typical class of frequent travellers provides a particularly good opportunity to study the relationship between transnational activities and cosmopolitanism. We also comprehensively investigate the link between postmaterialist values and cosmopolitan attitudes. We test our arguments using an original dataset that includes a relatively large sample of the German positional top elite in the years 2011 and 2012. A comparison between these data and data from a general population survey shows that while transnational activities affect the attitudes of ordinary citizens, increased travelling does not make elites more cosmopolitan. We discuss several reasons why this might be the case. We also observe that postmaterialist values and the ideological environment of the elite play a key role. Finally, we tentatively suggest that cosmopolitan elites do not endanger national social cohesion, as some fear they might. We show that cosmopolitanism and localism are not mutually exclusive and that members of the German elite feel even more attached to their nation than ordinary Germans.
Like my source the excellent Kevin Lewis, I wonder how much this applies to other nations as well.
It is also possible that the MEP [Ministry of Environmental Protection] will be given law enforcement authority for the first time, for example, the authority of forced inspection, search, sequestration, fines, recall and closure.
There is more here, a good and interesting piece by Wu Qiang on the changing politics of smog in China.
1. I enjoyed my page browse through Becoming Steve Jobs, which seems fun, readable, and informative, but it’s not what I feel like reading right now. But if you think you might want to read it, you probably should.
2. Charles C.W. Cooke’s The Conservatarian Manifesto: Libertarians, Conservatives, and the Fight for the Right’s Future is all the rage right now. Books which attempt to redefine or carve up the political spectrum aren’t exactly my thing, but this one is well-written and vital. Here is a Reason interview with Cooke. Here is a NYT interview with Cooke.
3. The new edition of David Boaz’s The Libertarian Mind is out.
4. The best piece so far on Lee Kwan Yew; how much and how rapidly will it matter that the focal point has passed away?
Izabella Kaminska writes:
George K Fogg at law firm Perkins Coie has been thinking about the problem of past claims (or liens) on bitcoins for nearly 14 months now.
His conclusion: under the United States’ UCC code (uniform commercial code) as long as bitcoins are treated as general intangibles, no high value investor can be sure that an angry Tony Soprano won’t show up one day to claim the bitcoins they thought they received in a completely unencumbered manner are in fact his. In fact, it’s only if and when Tony Soprano publicly renounces his claim to the underlying bitcoin collateral he is owed that the bitcoins stand a chance of being treated as unencumbered. Until then, a hot potato claim risk exists for every future acquirer of Soprano’s bitcoin.
Indeed, given the high volume of fraud and default in the bitcoin network, chances are most bitcoins have competing claims over them by now. Put another way, there are probably more people with legitimate claims over bitcoins than there are bitcoins [emphasis added]. And if they can prove the trail, they can make a legal case for reclamation.
This contrasts considerably with government cash. In the eyes of the UCC code, cash doesn’t take its claim history with it upon transfer. To the contrary, anyone who acquires cash starts off with a clean slate as far as previous claims are concerned. It is assumed, basically, that previous claims on cash are untraceable throughout the system. Though, liens it must be stressed can still be exercised over bank accounts or people.
There is more at the FT link here. And I have a simple question for all you Bitcoin partisans out there: how large is the largest private sector transaction on Bitcoin to date? I’m not “anti-Bitcoin,” and I am glad the regulators have allowed the experiment to proceed, still I’m not persuaded by the arguments that it is going to be a big deal.
You will find a Qanta primer here. Here is an excerpt:
In the same month, separate teams of scientists at Harvard University and the Broad Institute reported similar success with the gene-editing tool. A scientific stampede commenced, and in just the past two years, researchers have performed hundreds of experiments on CRISPR. Their results hint that the technique may fundamentally change both medicine and agriculture.
Some scientists have repaired defective DNA in mice, for example, curing them of genetic disorders. Plant scientists have used CRISPR to edit genes in crops, raising hopes that they can engineer a better food supply. Some researchers are trying to rewrite the genomes of elephants, with the ultimate goal of re-creating a woolly mammoth. Writing last year in the journal Reproductive Biology and Endocrinology, Motoko Araki and Tetsuya Ishii of Hokkaido University in Japan predicted that doctors will be able to use CRISPR to alter the genes of human embryos “in the immediate future.”
Thanks to the speed of CRISPR research, the accolades have come quickly. Last year MIT Technology Review called CRISPR “the biggest biotech discovery of the century.” The Breakthrough Prize is just one of several prominent awards Doudna has won in recent months for her work on CRISPR; National Public Radio recently reported whispers of a possible Nobel in her future.
Even the pharmaceutical industry, which is often slow to embrace new scientific advances, is rushing to get in on the act. New companies developing CRISPR-based medicine are opening their doors. In January, the pharmaceutical giant Novartis announced that it would be using Doudna’s CRISPR technology for its research into cancer treatments. It plans to edit the genes of immune cells so that they will attack tumors.
Here are my earlier remarks on eugenics. Here is a group of scientists calling for a moratorium on the technique, at least until rules can be established. Here are further articles on CRISPR. There are further comments here.
I believe the implications of all this — and its nearness to actual realization — have not yet hit either economics or the world of ideas more generally. This is probably big, big news.
From The New Left Review, Moretti and Pestre report:
Three new semantic clusters characterize the language of the Bank from the early 1990s on. The first—and most important—has to do with finance: here, alongside a few predictable adjectives (financial, fiscal, economic) and nouns (loans, investment, growth, interest, lending, debt), we find a landslide of fair value, portfolio, derivative, accrual, guarantees, losses, accounting, assets; a little further down the list, equity, hedging, liquidity, liabilities, creditworthiness, default, swaps, clients, deficit, replenishment, repurchase, cash. In terms of frequency and semantic density, this cluster can only be compared to the material infrastructures of the 1950s–60s; now, however, work in agriculture and industry has been replaced by an overwhelming predominance of financial activities.
…The second cluster has to do with management—a noun that, in absolute terms, is the second most frequent of the last decade (lower than loans, but higher than risk and investment!). In the world of ‘management’, people have goals and agendas; faced with opportunities, challenges and critical situations, they elaborate strategies. To appreciate the novelty, let’s recall that, in the 1950s–60s, issues were studied by experts who surveyed and conducted missions, published reports, assisted, advised and suggested programmes. With the advent of management, the centre of gravity shifts towards focusing, strengthening and implementing; one must monitor, control, audit, rate (Figure 2); ensure that everything is done properly while also helping people to learn from mistakes. The many tools at the manager’s disposal (indicators, instruments, knowledge, expertise, research) enhance effectiveness, efficiency, performance, competitiveness and—it goes without saying—promote innovation.
The concept of governance is another clear winner in more recent times, and furthermore the reports seem to overuse the word “and” relative to the word “the.” That I can believe. The article is interesting throughout, hat tip goes to Avinash Celstine.