Markets in everything

When I originally heard about First Contact, a trip offered by Woolford’s trekking company, Papua Adventures, I couldn’t believe he was really doing what he claimed to be doing. An easygoing American expat from Springfield, Missouri, who jokingly describes himself as a "hillbilly," Woolford marches into the jungle in search of uncontacted native tribes who have never seen outsiders–and who aren’t supposed to mind tourists barging into their lives. I had trouble buying the idea that, in the 21st century, there were still nomadic hunter-gatherers out there using stone tools and rubbing sticks together to start a fire. But there are, Woolford assured me. From his home in Ubud, Bali, he explained the strategy behind his First Contact trips.

"There are a handful of places in West Papua that are untouched–still Stone Age tribes, still cannibals," he said. "It’s just that a lot of people are too scared to go look for them."

Making contact with tribal people is a risky business–a simple flu could wipe them out. But Kelly Woolford insists that he’s mindful of such risks. "We don’t try [sic] to corrupt them," he says. "Five minutes is all we do."

Here is the story.  Here is the company’s website.  Thanks to the ever-useful www.politicaltheory.info for the pointer.

Modeling Intellectual Property

For over half a century, kits have been sold that enable military history
buffs to assemble scale models of military ships, aircraft and vehicles. But
that era is coming to an end, as the manufacturers of the original equipment,
especially aircraft, are demanding high royalties (up to $40 per kit) from the
kit makers….Models of a company’s products are considered the
intellectual property of the owner of a vehicle design. Some intellectual
property lawyers have pointed out that many of these demands are on weak legal
ground, but the kit manufacturers are often small companies that cannot afford
years of litigation to settle this contention.

That’s from James Dunnigan.  Dunnigan points to an ironic unintended consequence of this use of intellectual property law.  To avoid the levies kit manufacturers are turning to items for which there is no royalty – items like aircraft from Nazi Germany.

Thanks to Cory Doctorow at BoingBoing for the pointer.

Blogging vs. long-term research?

Virginia Postrel and Andrew Sullivan ask whether blogging interferes with one’s long-term projects and commitments, such as writing books.

For me it has been simple.  I’ve always tended to work on too many topics and questions in the first place.  Daily blogging satisfies my intellectual "Wanderlust" very well.  This makes it easy to concentrate on more specialized research, namely my main field of economics and culture.  Since I’ve started blogging my research has become more focused, which is overall a good thing.  In other words, the portfolio effect has outweighed the substitution effect.

Social security and our future

Given President Bush’s State of the Union address, and a number of reader requests, I am reprising my earlier posts on social security reform.  I don’t pretend to have remembered them all, but here are a few links, some retitled to sound more descriptive:

Why I fear proposed reforms

Will reforming social security yield an equity premium? (the most neglected of the lot, but in my mind one of the most important; read Alex also)

Should we opt for forced savings?

Why the transition scares me

The Argentina example

Should we gradually freeze social security benefits in real terms?

Is such a reform politically feasible?

My Econoblog debate with John Irons, summarizing my views

Addendum: Here is one account of what Bush actually said, I was at a flamenco concert.

George Bush and Reason

Reason magazine asks well-known libertarian bloggers and others (including Vernon Smith, Nadine Strossen, Virginia Postrel, Jacob Levy, Daniel Drezner, Glenn Reynolds, and yours truly) to state their biggest hopes and fear for the next four years.  Thanks to Daniel Drezner for the pointer. 

And if you like Reason, check out the new volume Choice: The Best of Reason, edited by Nick Gillespie.

What’s wrong with polygamy?

Polygamy makes perfect sense to many rich men in poorer countries but it is bad for the economy overall, according to a report called The Mystery of Monogamy by three economists.

The study, published recently by the Centre for Economic Policy Research, argues that mass polygamy, which still exists in sub-Saharan Africa, Egypt and Thailand, can make it hard for economies "to break out of the poverty trap".

The practice, it says, allows rich men "to spend their money on quantity rather than investing in child quality" and stretches a wealthy man’s resources across a larger number of children.

The authors also argue that the practice has only died out in the west because it no longer makes economic sense for the middle classes, who can no longer afford more than one wife.

Read more here.  Here is the paper in html, I can’t get the pdf versions to open (addendum: try this one).

My take: I am not convinced.  Polygamy does not contradict the idea of quality children, relative to available alternatives: the kids get papa’s good genes and full-time attention from mama.  Keep in mind if this is worse on average than other options, women won’t want the deal.  If there is a social cost from polygamy, it more likely stems from the young men who cannot find wives and resort to violence and risky behavior.  Polygamy ends when children cease to be a net economic asset.  As society progresses and urbanizes, there are cheaper ways of having sex with multiple women, if that is one’s goal. 

The Fountainhead

If ethics is about the virtuous man then politics is about the social requirements for the virtuous man to exist (the modern literature lags behind Rand in connecting ethics and politics). One can  understand Rand’s novels as an extended disquisition on virtue ethics and the political and social requirements necessary to practice such an ethics. In particular, she argued that rights, a legal concept creating a protected sphere for independent action, were a necessary condition to live a life of virtue.

One need not buy Rand’s deductive argument that laissez-faire capitalism is the sine-qua-non of ethical action to appreciate her insights connecting the good man and good woman with the good society. Ayn Rand was absolutely right to say that capitalism requires a moral defense. Moreover, the only plausible defense must involve the virtue of selfishness. It is all too obvious that capitalism promotes and rewards self-interest and, Mandeville nothwithstanding, no defense which simply excuses this fact will succeed.

Rand’s language hasn’t done much to advance her case and indeed it has obscured areas where her insights are now widely accepted. Today, for example, you can find many books
attacking the evil of altruism. Surprised? Of course, the books don’t use those terms, instead they call it the problem of codependency (or some other such). Relatedly, it’s no accident that Hillary Clinton was once an avid Randian (recall her political career started with Barry Goldwater) because Rand is an important feminist. Rand’s portrayal of strong, independent, intelligent women is coming to be recognized as a landmark in fiction but in addition Rand’s attacks on self-sacrifice have special meaning in a culture that has long used the “caring ethic” to bind women to the service of others.

Of weaknesses there are many, most of which flow from the combination of Rand as philosopher, novelist and powerful personality. John Galt, for example, is but one instantiation of the Randian/Aristotelian virtue ethic, an instantiation which was created for a particular aesthetic purpose by a particular person. To often both Rand and her detractors have taken the instantiation for the class thereby limiting the vision.

Is Ayn Rand important?

No, I don’t mean historically, but rather as a thinker to read today.  Bryan Caplan tells me this is the one hundredth anniversary of her birthday, so here are my bottom lines:

1. Her greatest strength: Her analysis of the mentality of resentment.  She is, oddly, best as a sociologist, albeit in fictional settings.  Wesley Mouch is a brilliant character in his loathesomeness.  Her treatment of cocktail party conversations, while unintentional ridiculous parodies, also point to sad truths.

2. Her worst intellectual tendencies: The competition here is strong.  One could list sheer dogmatism, a necessity to make everything black or white, or an unwillingness to read others carefully or charitably.  More specifically, I will cite her tendency to redefine any favorable aspect of altruism as something other than altruism.

3. What do you really learn from her?  Most of her formal philosophy is wrong or at the very least underargued.  The true take-away message is a reaffirmation of how the enormous productive powers of capitalism — the greatest force for human good ever achieved — rely on the driving human desire to be excellent.  I don’t know of any better celebration of that combination of forces.

4. Her quirkiest yet correct view: That landing on the moon was an intrinsically wonderful thing to do, and libertarian objections be damned.

5. Her quirkiest yet incorrect view: That Mickey Spillane was a titan of American literature.

Addendum: Here are Bryan’s bottom lines, which with I cannot agree.  Try Alex also, directly above.  Here is Steve Chapman on whether Rand has gone mainstream.  Reason magazine weighs in too.  And here isa humorous treatment of Rand on food.

Dangerous jobs

More police officers die each year in patrol car crashes than at the
hands of criminals, and most of the time the accidents occur when the
officers are not speeding to an emergency, a new study says.

But
the researchers say the number of deaths could be reduced if police
departments did more to encourage officers to use seat belts. The
authors of the report, in The Journal of Trauma, reviewed hundreds of
police car accidents across the country from 1997 to 2001 and also
found that officers involved in crashes were 2.6 times as likely to be
killed if they were not wearing seat belts…

Dr. Jehle said that officers who were interviewed for the study were
surprised to find that about 60 percent of the deaths occurred during
routine driving. They tend to view the car as a haven. "It’s their
office," he said. "They’re in it all the time."

Here is The New York Times story.

Bird brains no more

The new [classificatory] system, which draws upon many of the words
used to describe the human brain and has broad support among
scientists, acknowledges the now overwhelming evidence that avian and
mammalian brains are remarkably similar — a fact that explains why
many kinds of bird are not just twitchily resourceful but able to
design and manufacture tools, solve mathematical problems and, in many
cases, use language in ways that even chimpanzees and other primates
cannot.    

In particular, it reflects a new recognition that the
bulk of a bird’s brain is not, as scientists once thought, mere "basal
ganglia" — the part of the brain that simply coordinates instincts.
Rather, fully 75 percent of a bird’s brain is an intricately wired mass
that processes information in much the same way as the vaunted human
cerebral cortex.

…behavioral studies in recent years have proved that many birds have more pallium power than your average mammal.

Even seemingly moronic pigeons can categorize objects
as "human-made" vs. "natural"; discriminate between cubistic and
impressionistic styles of painting; and communicate using visual
symbols on computers, according to evidence compiled by the consortium,
which spent seven years on the project with input from scientists
around the world.

Some birds can play games in which they intentionally
tell lies. New Caledonian crows design and make tools. Scrub jays can
recall events from specific times or places — a trait once thought
unique to humans. And perhaps most impressive, parrots, hummingbirds
and thousands of other species of songbirds are able to teach and learn
vocal communication — the basic skill that makes human language
possible. That’s a variant of social intelligence not found in any
mammal other than people, bats, and cetaceans such as dolphins and
whales.

Read more here.

Why are unions so prevalent in Hollywood?

The desire for ongoing health benefits is a big part of the explanation:

The [union] locals combine…welfare plans together in the centrally administered Motion Picture Industry Pension and Health Plans, while the guilds manage their own individual plans.  In either case, the system that has emerged in practice has the signal advantage that individuals’ benefits packages are not tied to any single employer but are fully portable from firm to firm.  In this way, the Hollywood unions and guilds play a role somewhat analogous to that played by the government-sponsored Intermittence du Spectacle in France, which provides unemployment compensation and other benefits to wokers in the French entertainment industry. 

Of course Hollywood is known for its short-term and volatile employment, and for the temporary nature of its projects.  The explanation for unions continues:

Additional important functions of the unions and guilds are (a) the codification and regulation of professional categories, (b) accreditation of members’ work experiences, and (c) the provision of educational, labor-training, and other qualification-enhancing services.

That is from Allen Scott’s new and excellent On Hollywood, The Place, The Industry; the book is an applied study in economic geography.  Here is my previous query about Hollywood unions.  And somewhere in here is a paper on whether Hollywood offers a possible model for reforming our health care system.

Addendum: Matt Yglesias adds: "the Writer’s Guild of America (of which my father is a member) plays an important role in arbitrating credit disputes. Screenwriters often get fired or otherwise leave projects in development, which are then finished by someone else. Oftentimes, three or more writers (or teams of writers) will cycle through a project before it’s completed. Someone needs to look at the final project, decide which writers deserve credit, who deserves the primary credit, and who — if anyone — should get a "story" credit. Contracting these responsibilities out to the Guild lets studios duck a series of nasty disputes in whose outcome they have no real interest. It also protects writers from directors or producers who might want to muscle their way into screenwriting credits."

Tips for viewing The Merchant of Venice

1. There is textual evidence that Shakespeare was anti-Semitic, but anti-Semitism is not the primary point of the plot.

2. Shakespeare uses stereotypes about Jews to mock his audience and to mock anti-Semites.  Most of all he is pointing the joke back in the faces of the bigots.  "Who is the merchant and who is the Jew?" is one of the central lines of the text.  And it is no accident that the play is named after the merchant, not after Shylock.

3. Shakespeare shows most of the play’s Christians to be mean, hypocritical, and full of lies.  They have every bad quality that they accuse the Jews of having, and more.  This is a very dark comedy.

4. The stories concerning the rings should be followed carefully.  The film mentions briefly (too briefly, perhaps) that Shylock treasured and kept the ring from his wife.  Compare this to how the Christians treat their rings.

5. The homosexual and lesbian implications of the story are explicit rather than some postmodern reinterpretation.

Elsewhere on the cinematic front, Yana has been watching the Star Wars trilogy for the first time ("…so these are the ones where he has the breathing problem").  I’ve been amazed how readily and appropriately the episodes have made the transition from "slick futuristic vision" to "dark tale of collapse, decay, and clunky technological malfunction."  I can hardly wait for May to roll around.

Rules of Just Conduct versus Social Justice

Elizabeth Anderson and other commentators misunderstand Hayek and in the process they fail to understand the sense in which market outcomes may be said to be just (Tyler comments also).

Hayek argued that the concept of social or distributive justice was "empty and meaningless."  Anderson tries to use this argument, which she explains well, to suggest that any idea of libertarian or free market justice must also be empty and meaningless.  Hayek, however, did not argue against rules of just conduct, "those end-independent rules which serve the formation of a spontaneous order."  Among such rules may be Nozickian or Lockean rules of voluntary exchange.

It’s quite possible, for example, to be a good Hayekian and also to say that I deserve my income because it was acquired by just conduct, e.g. by production and trade.

True, it is an accidental fact that I live in a time and place where my skills are highly prized.  In this sense, I do not deserve my income (i.e. my income is in part a function of things beyond my control).  But I do deserve my income in the sense that it was acquired justly and to take justly acquired earnings may be an injustice.