Category: History
New claims I do and do not believe
Do Not Believe: “If intelligent life exists elsewhere in our galaxy, advances in computer processing power and radio telescope technology will ensure we detect their transmissions within two decades.” Read more here.
Do Believe: “Napoleon Bonaparte was not murdered, but was killed by his overenthusiastic doctors, according to a study of records from the emperor’s final weeks.” Read more here.
Genghis Khan and price discrimination
In twenty-five years, the Mongol army subjugated more lands and people than the Romans had conquered in four hundred years. Genghis Khan, together with his sons and grandsons, conquered the most densely populated civilization of the thirteenth century…Genghis Khan conquered more than twice as much as any other man in history…At its zenith, the empire covered between 11 and 12 million contiguous square miles, an area about the size of the African continent and considerably larger than North America…The majority of people today live in countries conquered by the Mongols; on the modern map Genghis Khan’s conquests include thirty countries with well over 3 billion people.
That’s from Jack Weatherford’s overstated but fascinating Genghis Khan and the Making of the Modern World.
By the way, the entire Mongol tribe was no more than one million people, with perhaps one hundred thousand warriors.
Today a Mongolian restaurant in London is offering free DNA testing. If you are verifiably a descendant of Genghis [what are you being tested against?], they will feed you a meal for free. The analysis takes two months, but supposedly you have a good chance of winning:
It is estimated that 17 million people worldwide, including the British Royal Family, Iranian Royalty, and the family of Dracula, are direct descendents of Genghis Khan.
Addendum: Read more here on the nature of the test.
Haitian fact of the day
In the early nineteenth century Polish soldiers went to Haiti to fight for Haitian independence against the French. Many of these soldiers stayed in the country, settling in the town of Cazale. The town has since become known for its “banana arts,” based around carving the fruit into paper-like forms.
A small Smithsonian exhibit on this history has recently been sponsored by The Republic of Taiwan
How ancient is your state?
When, pray tell, does nation building succeed? Bockstette, Chanda, and Putterman suggest an answer:
A longer history of statehood might prove favorable to economic development…for several reasons. There may be learning by doing in the way of public administration…The operation of a state may support the development of attitudes consistent with bureaucratic discipline and hierarchical control…
The authors provide a measure of the antiquity of a state; under their measure China comes in first place and Zambia comes in last. It turns out that state antiquity matters in cross-sectional growth equations:
…suppose that Mauritania, the country which recorded the second lowest value for [state antiquity] instead had the [state antiquity value] for China…Based on the estimated coefficient…this would mean that Mauritania would have recorded an annual increase of 1.9 percent in its growth rate. Given that Mauritania’s average growth rate during the 35-year period was nearly zero and China’s was 3.8 percent, differences in [state antiquity] can, by these calculations, explain half the difference in growth rates between the two countries.
I do have some caveats. Who ever knows what causes what in these macro equations? Furthermore state antiquity explains growth rates but not income levels. This would suggest that state antiquity matters more today than ever before, a possible but puzzling relationship. That being said, state antiquity does partially explain a “social infrastructure” variable, which in turn helps explain income levels.
If it were up to me: I would rather see economists address the important questions with imperfect tools, rather than focus on problems where their methods are immune to internal criticism.
By the way, I can’t find Iraq on their (hard to read) scatterplots, but I understand the modern version of the nation as starting only under British imperialism.
What should we do with Medicare?
Daniel Shaviro offers the following suggestions:
1. Reduce Medicare’s low-end coverage of routine expenditures, and use replace deductibles with lesser copayments that extend over a broader range.
2. Provide prescription drug and catastrophic care coverage without increasing the overall value (net of premiums and copayments) of Medicare [Ha!, interjects TC, this must have been written before the Bush bill passed]
3. Impose a tax on Medigap coverage of Medicare copayments, or else bar such coverage altogether.
4. Make copayments income-related…[“means-tested”]
5. To the extent that income tax increases are needed, use base-broadening in lieu of rate increases to the extent possible.
6. Enact a consumption-style VAT without transition relief for old wealth.
7. Use accounting rules to discourage Congress from dissipating the net revenue from tax increases that are meant to help meet future Medicare liabilities.
8. Attempt to realize cost savings by modifying Medicare’s current fee for service structure. While managed care has had disappointing results as applied to workers under age sixty-five, this may reflect the political and legal obstacles to imposing rationing.
My take: This is a serious effort to solve a real problem. I’ll endorse 1-4 and 7. When it comes to higher taxes, let’s just hope that productivity growth remains high. If I have to, I’ll get out and push. #8 sounds too much like putting old people out on ice floes, but it would solve at least twenty percent of the problem with only minimal impact on life expectancy. And for the proposal to be effective, how voluntary would managed care be? For those reasons, I can’t press the “do it” button on #8; I’ll give it a pass and plead political infeasibility. And while I am fully aware that Medicare is the fiscal train wreck, compared to which most other economic problems pale, shouldn’t the words “cut spending” somehow play a role?
Here is my previous post on Shaviro’s illuminating book. Today was Shaviro on “what should happen.” Stay tuned for Shaviro on “what will happen.”
Mourning in America
Reagan was the first, and so far the only, politician who I have ever found inspiring. I came of political age during the Reagan years when I was a high school student in Canada. In political science class we learned that the essence of the Canadian philosophy of government could be remembered with the mnemonic POGG – peace, order, and good government. I preferred life, liberty, and the pursuit of happiness and hearing Reagan speak was always a thrill for me.
The record, of course, is never as glorious as the rhetoric but a number of important accomplishments occured under Reagan’s watch. In the economic sphere, the reduction in marginal tax rates was a great and lasting achievement. It’s hard to believe today that top marginal rates used to approach 70%.
Reagan also deserves great credit for standing up to the air traffic controllers thereby sending a strong signal that the country would not be taken hostage by the labor unions as had happened and continues to happen in much of Europe.
Inflation was also brought under control under Reagan – the 1982 recession was second only to that of the Great Depression but it’s hard to see how that pain could have been avoided. Reagan had the fortitude to take the political heat of the downturn and stay the course thereby laying the groundwork for growth in the following decades.
Deregulation began under Carter but continued under Reagan, leading to innovation in previously moribund industries.
In foreign policy of course, Reagan saw further than anyone else. Only Reagan predicted that communism would end up on the dustbin of history and at critical moments he took the actions necessary to make it happen.
Not all was positive of course but the rest can wait for another day.
My favorite Polish things
My favorite Polish novel: Solaris, by Stanislaw Lem. Don’t worry if you hate science fiction, this is possibly the best novel ever penned about erotic guilt and the nature of personal identity.
My favorite Polish music: My traditional favorites have been the Chopin Etudes and the Polonaise Op.40. But arguably the Mazurkas hold up best over time. Here is a recent Chopin CD that will blow you away.
My favorite Polish movie: Kanal, directed by Andrzej Wajda. A European movie of great depth with a plot as gripping as Hollywood.
My favorite Polish TV show: The Decalogue, episode four. This audiovisual classic is now available in its entirety on DVD. In the fourth episode, a daughter receives an envelope from her father, with the written instructions: “Don’t Open This Until I Die.” I leave the rest up to your imagination.
I’m enjoying my time here very much, soon I will be in Kracow.
Addendum: Let’s not forget the goose in cranberry sauce, the pork knuckle pate, the wild boar with dumplings, the sour soup with sausage, the duck with cherry sauce, or the wonderful Brazilian restaurant they have here. Polish food in Brazil is fantastic, so now they are returning the favor, all to the benefit of me.
The myth of free trade Britain?
Was nineteenth century Britain really a free trade wonder? Just how entrenched is protectionism in French national history?
John Nye offers some provocative answers:
Britain preached the gospel of free trade and France was cast in the role of the sinner, but there was little truth in this stereotype. France did have more protected products than England did but the average level of French tariffs (measured as total value of duties divided by total value of imports, cf. Figure 1) was actually lower than in Britain for three-quarters of the nineteenth century.2 In other words, tariffs had a smaller impact on French trade than British duties had on Britain’s trade. The French, while eschewing free trade, and openly rejecting the Anglo doctrine of open markets, actually succeeded in making their trade more liberal and more open than that of the more vocal British. The master of this was Napoleon III–Bonaparte’s nephew–who throughout the 1850s promoted the most radical liberalizing reforms of the French economy, all the while insisting that France was only interested in moderate reform.
The revisionism continues:
Indeed, it was not British unilateral tariff reduction that moved the world to freer trade. Despite the belief that is still common today that British exhortation opened the doors to European free trade in the late 19th century, it was the 1860 Treaty of Commerce, promoted by the Napoleon III and concluded between Britain and France, that really ushered in the age of nineteenth century “globalization”. British demands for unilateral tariff reduction usually fell on deaf ears.
Might this advantage of bilateralism be true more generally? If so, it would mean that a serious U.S. free trade agreement with Japan would be the best outcome imaginable for promoting free trade.
Read the whole thing, and don’t miss the illustrative chart.
Telephone history: lessons for today
Have you ever wondered how America became a world leader in mass media and telecom? Paul Starr’s excellent The Creation of the Media addresses this question. Here is one good bit from the book:
French policy was…unfavorable to the telephone. Unwilling to spend public funds on the medium, the French government, beginning in 1879, granted local concessions for telephone service lasting only five years. The idea was to let the private sector assume the risk of a new business, giving the state time to see if it was worth taking over. Private capital could lose money on the telephone, but if the medium proved profitable the government would step in: a policy nicely designed to depress investment. In 1885, the government itself began building long-distance lines but limited construction so as not to cause too rapid a depreciation of its investment in the telegraph. Four years later, it nationalized the local telephone carriers as well, not so much because of a positive commitment to improve telephone service as because of a defensive concern about the erosion of the state’s telegraph monopoly…
By 1895, while the United States had one telephone for every 208 people…France [had] one for every 1,216…In 1927, while Bell was reporting an average delay of 1.5 minutes in placing long-distance calls, it took, on average, more than an hour to put through a call from Paris to Berlin.
The bottom line: Keep this story in mind the next time you hear politicians talking about the regulation of VOIP.
ReHomesteading the Great Plains
Frederick Jackson Turner defined the frontier as a density of less than 6 people per square mile and declared that in 1893 the frontier was closed. But in the past fifty years, farming has become more efficient and millions of people have moved from the Great Plains to the coastal cities. As a result, the frontier has been reborn. Kansas is more of a frontier state today than it was in 1890!
Some people see the depopulation of the Great Plains as a wonderful opportunity to create the world’s largest wildlife reserve – the Buffalo Commons. Depopulation, however, is not pleasant for the people who remain who find themselves unable to afford those public goods and amenities supportable only with a larger population. Residents are fighting back, however, with an old policy, homesteading.
It’s not Lincoln’s 160 acres but Marquette, Kansas is giving away a little less than an acre to anyone willing to homestead (literally build a home) on nearby land. Several other small towns in Kansas have competitive offers (one even offers free cable).
Thanks to Curtis Melvin for the link.
Height
For two centuries, the American man stood tall in the world. Literally. But today the average Dutch man is six foot one and the average American man is much shorter. Even as little as fifty years ago, American men were considerably taller than Dutch or other European men but since the mid 1950s the Northern Europeans have shot up while Americans have grown wider but not taller. No, it’s not a composition effect due to immigration. Native born, English-speaking American men are only five feet nine and a half and this has not changed much in more than a century. Why then the difference?
One possible clue is the enormous impact that nutrition can have on height. In Guatemala the native Mayan man averages only five foot two, so short compared to the Spanish-descended Ladinos that most people assumed the difference was genetic. But lo and behold when a million Guatemalans fled to the United States a natural experiment began – the children of the American Maya are four inches taller than the Guatemalan Maya of the same age and about as tall as the Ladinos. Good nutrition, especially in the growth years of infancy, 6-8 years and adolescence can increase height in remarkable fashion.
But if the problem is poor nutrition then surely the figures for the average American ought to be masking a growing drift in height between the well-fed rich and the poorly-fed poor? And yet that appears not to be the case. The mystery remains.
The discussion is based on Burkard Bilger’s excellent piece in the New Yorker. See also this interview with Bilger.
Life in the United States in 1904
Average life expectancy was 47.
Only 14 percent of homes had a bathtub.
Only 8 percent of the homes had a telephone.
There were 8,000 cars and just 144 miles of paved roads.
Alabama, Mississippi, Iowa, and Tennessee were each more heavily populated than California. With a mere 1.4 million residents, California was only the 21st most populous state in the Union.
More than 95% of all births took place at home.
90% of all physicians had no college education.
Most women only washed their hair once a month and used borax or egg yolks for shampoo.
The five leading causes of death were: 1. Pneumonia & influenza 2. Tuberculosis 3. Diarrhea 4. Heart disease 5. Stroke
And worst of all,
The population of Las Vegas, Nevada was 30.
Here is the link, thanks to www.geekpress.com for the pointer. And read Michael at 2blowhards.com for some further commentary, excellent as always.
Bastiat’s house is for sale
The Dufaur de Gavardie de Monclar family, who jointly own Bastiat’s property in Souprosse, inform us that they have reluctantly decided to put it up for sale, as no one member of the family is able to purchase it. It consists of a fine 17th century manor house, with early 20th century alterations, approached via a long tree-lined driveway, a barn and an outbuilding, all set in grounds of 28,000 m².
The main house has a surface area of 200m², on three levels, that is 600m² of living space. The barn, with a timber-frame roof of outstanding architectural interest, has a surface area of 400m² and consists of three levels. The outbuilding is a house on two levels, with a surface area of 100m².
The whole property is for sale for 426,900 euros.
Here is the link, thanks to the Mises blog for the pointer. Here is a short biography of Bastiat that also contains links to many of his works. Perhaps I will stop by the house to pay my respects.
The ten most successful kleptocrats?
Directly below you will find a list of the most influential businessmen in history. For purposes of contrast, Ben Muse refers us to a list of the ten biggest political kleptocrats, here goes:
1. Mohamed Suharto President of Indonesia from 1967-98: US$15 to 35 billion
2. Ferdinand Marcos President of the Philippines from 1972-86 US$5 to 10 billion
3. Mobutu Sese Seko President of Zaire from 1965-97 US$5 billion
4. Sani Abacha President of Nigeria from 1993-98 US$2 to 5 billion
5. Slobodan Milosevic President of Serbia/Yugoslavia from 1989-2000 US$1 billion
6. Jean-Claude Duvalier President of Haiti from 1971-86 US$300 to 800 million
7. Alberto Fujimori President of Peru from 1990-2000 US$600 million
8. Pavlo Lazarenko Prime Minister of Ukraine from 1996-97 US$114 to 200 million
9. Arnoldo Alemán President of Nicaragua from 1997-2002 US$100 million
10. Joseph Estrada President of the Philippines from 1998-2001 US$78 to 80 million
It depends, of course, on what you count as stolen. Arguably some Saudis should make the list, though they claim to own the oil legitimately. Of course relative to gdp, Haiti’s Duvalier is a clear number one.
Addendum: Here is a good article on how Suharto did it.
Who are the most influential businessmen in history?
Joel Mokyr offers his list:
Matthew Boulton (1728-1809) †¢ Powered Industrial Revolution (Marginal Revolution’s first post was on Boulton and his friends.)
Andrew Carnegie (1835-1919) †¢ Carnegie’s Steel Built America
Walt Disney (1901-1966) †¢ Mega Media Blueprint
Henry Ford (1863-1947) †¢ Democratized Transportation
Edward H. Harriman (1848-1909) †¢ Proto-turn-around artist
Henry J. Kaiser (1882-1967) †¢ Fathered the HMO
Ray Kroc (1902-1984) †¢ Founding Father Of the Fast-Food Nation
William Lever (1851-1925) †¢ Invented “The Brand”
Henry Luce (1898-1967) †¢ Mass Media Pioneer
J. P. Morgan (1837-1913) †¢ Saved Wall Street
Alfred Nobel (1833-1896) †¢ Invented Dynamite, Holding Company
John D. Rockefeller (1839-1937) †¢ Spawned Global Energy Industry
Meyer Amschel Rothschild (1744-1812) †¢ International Financier Pioneer
Alfred P. Sloan (1875-1966) †¢ The Perfect Organization Man
Gerard Swope (1872-1957) †¢ Wove Capitalism’s Safety Net
Sakichi Toyoda (1867-1930) †¢ Smarter Machines Sage
Sam Walton (1918-1992) †¢ Perfected Mass Retailing
Aaron Montgomery Ward (1843-1913) †¢ “No Store” Retailer
Thomas J. Watson Jr. (1914-1993) †¢ Wired Corporate America
Josiah Wedgwood (1730-1795) †¢ Invented Celebrity Endorsements
A good list, but it fails to reflect just how much business has transformed our society. How about Zukor, Laemmle, Fox, or Cohn, some of the early founders of Hollywood? You could add the Medici, the unknown father of double-entry bookkeeping, or how about Gutenberg for that matter?
Here is the complete article. Thanks to Lynne Kiesling for the pointer.