Cell phone numbers for sale

“The New phone number rules that allow you to keep your phone number when you switch carriers has given rise to phone nascent number property rights. On E-bay you can bid on 867-5309 (made famous by Tommy Tutone’s Jenny I got your number). As I write this the bid is over $8000 dollars with seven days to go. What other numbers are famous or valuable? Will we see a land rush like the internet names?”

From Slashdot, thanks to Noah Yetter for the pointer. And when I checked, the bid for the number was up to $56,000. Here are some classified ads selling cell numbers. I’d like CTA-102 in my number, $50 to anyone who can deliver it.

My President

Under the Federalists, the US government imprisoned journalists, exiled political opponents, increased taxes, centralized power and pushed for war (see here). The American experiment in liberty was failing. Hope rested only with the great philosopher-politician, Thomas Jefferson. By the narrowest of margins, Jefferson was elected President and the Revolution of 1800 saved the American revolution.

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Musgrave and Buchanan

David Warsh writes about the pioneering public-finance economist Richard Musgrave and a series of debates he had with fellow Wicksellian, yet rival, public-choice pioneer James Buchanan.

In 1998, Hans-Werner Sinn, the leading economist at the University of Munich, invited Musgrave and his arch-rival in the study of political economy, James Buchanan, father of the relentlessly skeptical study of “public choice,” to a carefully organized five-day debate.

The scholars took turns stating their positions. They responded to one another. They took questions from the floor. Then they restated their views more narrowly. The results were published in 1999 as Public Finance and Public Choice: Two Contrasting Visions of the State. Their debate was a textbook example of what psychologist Daniel Kahneman recently called “adversarial collaboration.” So useful are both lenses for different purposes that it is not easy to form an opinion about who “won.”

It is, however, very likely that the lectures are the most important delivered at the University of Munich since the great Max Weber gave his farewell addresses on politics and science there in 1918. Long after the results of the next election have become old news – the next 40 years’ elections – the exchange between Musgrave and Buchanan will still be fresh.

Questions of the day

You say the rich do not pay enough taxes. In 1979 the top 1 percent of earners paid 19.75 percent of income taxes. Today they pay 36.3 percent. How much is enough?

From George Will’s excellent “The 1st 28 Questions for Kerry.” The entire article makes for compelling reading.

How about this one?

You say the federal government is not spending enough on education. President Bush has increased education spending 48 percent. How much is enough?

These questions are an object lesson in the virtues of divided government.

Addendum: For the tax data, here is a relevant link, thanks to Paul Barriere.

Progressive speeding fines?

One of Finland’s richest men has been fined a record 170,000 Euros ($217,000) for speeding through the center of the capital, police said.

Jussi Salonoja, 27, heir to his family’s sausage business, was caught driving 50 mph in a 25 mph zone last week.

Finnish traffic fines are pegged to the offender’s income. According to tax data, Salonoja’s 2002 earnings were close to 7 million Euros.

Imagine that kind of system here. It could be scaled way down, say $3,000 for a rich person, $300 for a middle-income person and $30 for a poor person for each violation involving speeding, running a red light, blocking an intersection, ignoring a crosswalk or parking illegally in a curb lane during rush hour. Think that might bring any more compliance and downtown gridlock relief?

As reported by Dr. Gridlock, who writes for The Washington Post on traffic problems.

Legality and constitutionality surely do not favor this idea in the U.S., but how about efficiency? I say no. Richer individuals on average have higher valuations of time. If a billionaire wants to park illegally, there is some chance he is in the process of cutting a big deal. Don’t levy a special fine on him. “Rich people speeding” is not a crisis in need of a particular solution, general reductions in the speeding rate will do, which suggests upping a general fine for speeding. Equal dollar fines are consistent with the rule of law, and progressive fines would give the cops a special incentive to go after Bill Gates. Gates in turn would have special incentive to hire a chauffeur. True, efficiency is unlikely to suggest strictly equal dollar fines, but if the choice is equal dollar fines or discretion I will prefer the former.

The strangeness that is our universe

Over the weekend I’ve been gobbling up Brian Greene’s The Fabric of the Cosmos. I still don’t understand strings, branes, and how the known universe might be a projected hologram, but this book gets me further than any of the other popular science treatments I know. The author favors string theory and the idea of extra, hidden dimensions. He also discusses how we are on the verge of testing some of these exotic ideas. Recommended, especially if you find these ideas intriguing but have a hard time grasping them in intuitive terms.

Coatless Girl

In his stump speech, John Edwards is fond of empathizing with the plight of a 10-year old girl “somewhere in America,” who goes to bed “praying that tomorrow will not be as cold as today, because she doesn’t have the coat to keep her warm.”

Yet, as John Tierney points out, “clothing has become so cheap and plentiful (partly because of textile imports, which Mr. Edwards has proposed to limit) that there is a glut of second-hand clothing, and consequently most clothing donated to charity is shipped abroad. The second-hand children’s coats that remain in America typically sell for about $5 in thrift shops.” (emphasis added)

A cinematic renaissance

Two years ago, every one of Phnom Penh’s 33 cinemas lay disused. In the 1960s, Cambodian-made films were famous across Asia, and movie-going was a national obsession. But cinema culture was one of the many victims of the genocidal Khmer Rouge of 1975-79 and the two decades of civil war and Vietnamese occupation that followed.

N.B.: Hollywood is not the only reason why cinema is struggling in many locales.

Today, however, Phnom Penh is in the midst of a cinematic boom. Theaters are opening or reopening across the country. The last eighteen months have brought nine new cinemas. A ticket costs about a dollar, the same as per capita daily income.

And what is the most popular genre, by far? Horror films.

The quotation is from “Phnom Penh’s New Rage,” The Financial Times, Saturday, February 14. Here is an account from The Cambodian Times.

Cambodia, of course, provided one of the more extreme examples of government support for the arts. Prince Sihanouk produced, directed, and wrote the musical scores for twenty-eight movies. He was often scriptwriter and star as well. So if the print says “Director’s Cut,” I’m sure they mean it.

Haiti, continued…

Remember the Haitian embargo? One group of bad guys took over from another group of bad guys (i.e., Aristide and his cronies), so we stopped trading with them?

Georgie Anne Geyer offered some apt words on why this embargo was a disaster:

The economic part of the Haitian disaster was laid down in 1991, all with the best of intentions…The U.S. and other countries had imposed a severe embargo upon Haiti. This had the not-unexpected effect of (1) turning the military to smuggling, their first love anyway, and (2) utterly and tragically destroying the small businesses of Haiti.
“In the 1980s, we were planting up to 10 million trees a year in reforestation,” the ambassador to Haiti in that era, Ernest Preeg, reminisced sadly with me this week. “We had an anti-malaria program, secondary road programs and a brand-new container port. Haiti made textiles, footwear, toys, and baseballs. Three years of the embargo destroyed all the job-creating programs, and then Aristide destroyed the rest. After that, most of the aid went strictly to ‘democracy projects.’ In short, we took everything away from the long-term; we sacrificed the long-term for the short.”

Colin Powell has pledged, albeit in ambiguous words, that the U.S. will not intervene in the current collapse of order. Observers speculate that the prospect of Haitian refugees, mostly arriving in the electoral swing state of Florida, may change this calculus.

My view: The U.S. government built some valuable roads for Haiti in the 1920s, during our failed nation-building episode there. Otherwise our government has done many things to harm the Haitians, and few things to help. I’m all for greater free trade, but we are past the point where this would be very useful. Here is a previous post on Haiti, here is another.

The family as a source of inequality

Forthcoming research suggests that the family is a significant source of inequality:

differences between families explain only 25 percent of the nation’s income inequality; the remaining 75 percent is explained by differences between siblings. More typical of the United States than President Bush and his brother Jeb, the governor of Florida, he suggests, are the White House’s previous tenant, Bill Clinton, and his half-brother, Roger, a college dropout, onetime cocaine dealer and failed musician. Or, for that matter, Jimmy Carter and his ne’er-do-well brother, Billy (emphasis added).

So what in the family matters? It is not birth order, here the analysis become quite intricate:

…his conclusions – that everything from parental job loss or divorce to race and family size can affect siblings differently – don’t lend themselves to catchy headlines, they arguably provide a more nuanced portrait of internal family dynamics than all-purpose explanations like birth order.

Some of his more provocative findings concern middle-borns. In families with three or more children, Mr. Conley says, middle offspring are less likely to receive financial support for their education and may do less well in school than their older and younger siblings. The chances that a second child will attend private school drop by 25 percent with the birth of a third, Mr. Conley found, and the likelihood that he or she will be held back a year increased severalfold. Unlike typical first- and last-borns, he reasons, middle children never experience family life as an only child; instead, they are forced to compete with their siblings for money and attention. (In this sense, he concedes, birth order does matter: not as a psychological variable but as a constraint on family resources.)

Other findings seem to confirm common-sense intuitions. According to Mr. Conley’s analysis, for example, women are more likely to be as successful as their brothers if their mothers worked outside the home. And, like the long-suffering George Bailey in “It’s a Wonderful Life,” the oldest child still at home at the time of a parental death or divorce is more likely than younger siblings to endure negative socioeconomic consequences as a result. Brothers and sisters may even experience race differently, he argues, since skin color can vary considerably within the same family.

So far it seems that the work is well-received. Here is the home page of the researcher, Dalton Conley, a remarkably prolific and rigorous scholar. Here is an earlier MR post on Horatio Alger and intergenerational mobility.

The (provisional) bottom line: Unhappy with your lot in life? It’s not the capitalist system or the Bush tax cuts, blame Mom and Dad. I’ll let you know more once the book arrives and I’ve read the whole thing.

How to stay together

What best predicts whether a marriage will last?

The crucial predictors, say the researchers, are the presence of facial expressions that accompany emotions such as contempt. Gottman says that just watching a couple and looking for this expression, described as a sideways pull of a corner of the mouth accompanied by rolling eyes, is enough to make a good guess about a couple’s suitability. “This is our best predictor,” he says. “Contempt is the sulphuric acid of love.”

We are told that the entire model has a 94 percent success rate in predicting divorce.

Here is some positive advice for Valentine’s Day:

Gottman may also have stumbled across the secret of a lasting relationship – simply ignore the nasty comments from your partner. He says that courting couples tend to ignore negative statements and pay more attention to positive remarks. Once married, this trend often reverses, although couples that remain together into their sixties retain this outlook.

How about gay couples?

…gay and lesbian couples, as well as heterosexual couples that do not marry, hold on to the positive value of courtship better than straight partners who get hitched, he says.

For more information, read The Mathematics of Marriage: Dynamic Nonlinear Models. Are they joking with that title?

Can the U.S. government manipulate the real exchange rate for the dollar?

Exchange rates today respond in large part to capital flows–not to the utterances of central bankers and finance ministers. And the vast structural forces affecting those flows–the comparative economic strength of the United States vs. the Eurozone, the insatiable desire by U.S. businesses and consumers for imports–are far beyond the reach of this, or any, administration.

The argument goes through a variety of detailed cases, click here for the full account.

You lie more over the phone

Relative to email, that is. Why? Email leaves a permanent record and you are afraid of getting caught in your lies.

Jeff Hancock of Cornell University in Ithaca, New York, asked 30 students to keep a communications diary for a week. In it they noted the number of conversations or email exchanges they had lasting more than 10 minutes, and confessed to how many lies they told.

Hancock then worked out the number of lies per conversation for each medium. He found that lies made up 14 per cent of emails, 21 per cent of instant messages, 27 per cent of face-to-face interactions and a whopping 37 per cent of phone calls.

That’s a lot of lying. Here is the full story.

North Korea on the Web

Check out the website of the Democratic People’s Republic of Korea. From the opening image of electrification to the leader worship and slogans (“The Great Leader Kim Il Sung Will Be Always With Us!”) the website looks and feels like an ironic museum piece. The fact that it is not, is an eerie if useful reminder of things too often taken for granted.

Thanks to Curtis Melvin for the link.