Results for “best book” 1969 found
*Open Borders: The Science and Ethics of Immigration*
That is the already-bestselling graphic novel by Bryan Caplan and Zach Weinersmith, and I would just like to say it is a phenomenal achievement. It is a landmark in economic education, how to present economic ideas, and the integration of economic analysis and graphic visuals. I picked it up not knowing what to expect, and was blown away by the execution.
To be clear, I don’t myself favor a policy of open borders, instead preferring lots more legal immigration done wisely. But that’s not really the central issue here, as I think Caplan and Weinersmith are revolutionizing how to present economic (and other?) ideas. Furthermore, they do respond in detail to my main objections to the open borders idea, namely the cultural problems with so many foreigners coming to the United States (even if I am not convinced, but that is for another blog post). Even if you disagree with open borders, this book is one of the very best explainers of the gains from trade idea ever produced, and it will teach virtually anyone a truly significant amount about the immigration issue, as well as economic analytics more generally.
There is more actual substance in this book than in many a purely written tome.
It will be out in October, you can pre-order it here.
Tax returns should not be made public information
That is the topic of my latest Bloomberg column, here is an excerpt:
This idea has been suggested recently by Binyamin Appelbaum of The New York Times and also Matt Yglesias of Vox. In Norway it has been policy since 1814 and Finland does something similar.
I’m afraid, though, that universal tax transparency would boost U.S. economic inequality, take away second chances and devastate privacy.
And:
Or think about the dating market. Tax transparency would give high-earning men and women a bigger advantage and hurt their lower-earning competitors. Do we really wish to do that in an age of growing income inequality and diminished upward mobility?
Is it better if your parents and all your friends can see how well your new job is going or how much in royalties your last book earned? As it stands, we exist in a slightly more comfortable social equilibrium where your close associates assume the best or at least give you the benefit of the doubt. Transparency of earnings would increase stress and make failure and disappointment all too publicly evident. Or entrepreneurs with long-term projects which are going to make it — but not right away — might face too many social or family pressures to quit.
Snooping through the tax system would definitely happen. Evidence from Norway indicates that in 2007, 40 percent of Norwegian adults checked somebody’s tax information online, higher than the penetration of Facebook in Norway. Anonymity of the snooper was removed in 2014, and visits fell dramatically (88 percent by one measure), but still you can imagine paying others to snoop for you or the information eventually getting out over time.
The result of tax-record publication was that “this game of income comparisons negatively affected the well-being of poorer Norwegians while at the same time boosting the self-esteem of the rich,” according to Ricardo Perez-Truglia, a UCLA economics professor writing last week in VoxEU. There’s even a smartphone app that creates income leaderboards from the data on your Facebook friends.
Just as personal freedom and economic freedom are not so easily separable, the same is true for personal privacy and financial privacy. Are there actually people out there worried about Facebook privacy violations who wish to make all tax returns public and on-line?
Is work fun?
Ladders runs an excerpt from my book Big Business: A Love Letter to an American Anti-Hero, here is one part:
Another way to think about the non-pay-related benefits of having a job is to consider the well-known and indeed sky-high personal costs of unemployment. Not having a job when you want to be working damages happiness and health well beyond what the lost income alone would account for. For instance, the unemployed are more likely to have mental health problems, are more likely to commit suicide, and are significantly less happy. Sometimes there is a causality problem behind any inference—for instance, do people kill themselves because they are unemployed, or are they unemployed because possible suicidal tendencies make them less well suited to do well in a job interview? Still, as best we can tell, unemployment makes a lot of individual lives much, much worse. In the well-known study by economists Andrew E. Clark and Andrew J. Oswald, involuntary unemployment is worse for individual happiness than divorce or separation. Often it is more valuable to watch what people do rather than what they say or how they report their momentary moods.
There is much more at the link.
U.S.A. fact of the day, *Jump-Starting America*
The United States, as of 2014, spends 160 times as much exploring space as it does exploring the oceans.
That is from the new and interesting Jump-Starting America: How Breakthrough Science Can Revive Economic Growth and the American Dream, by Jonathan Gruber and Simon Johnson, two very eminent economists. And if you are wondering, I believe those numbers are referring to government efforts, not the private sector. I am myself much more optimistic about the economic prospects for the oceans than for outer space.
Most of all this book is a plea for radically expanded government research and development, and a return to “big science” projects.
Overall, books on this topic tend to be cliche-ridden paperweights, but I found enough substance in this one to keep me interested. I do, however, have two complaints. First, the book promotes a “side tune” of a naive regionalism: “here are all the areas that could be brought back by science subsidies.” Well, maybe, but it isn’t demonstrated that such areas could be brought back in general, as opposed to reshuffling funds and resources, and besides isn’t that a separate book topic anyway? Second, too often the book accepts the conventional wisdom about too many topics. Was the decline of science funding really just a matter of will? Is it not at least possible that federal funding of science fell because the return to science fell? Curing cancer seems to be really hard. Furthermore, some of the underlying problems are institutional: how do we undo the bureaucratization of society so that the social returns to science can rise higher again? Will a big government money-throwing program achieve that end? Maybe, but the answers on that one are far from obvious. This is too much a book of levers — money levers at that — rather than a book on complex systems. I would prefer a real discussion of how today science has somehow become culturally weird, compared say to Mr. Spock and The Professor on Gilligan’s Island. The grants keep on going to older and older people, and we are throwing more and more inputs at problems to get at best diminishing returns. Help!
Still, I read the whole thing through with great interest, and it covers some of the very most important topics.
U.S.A. fact of the day
According to publisher Penguin Random House, [Becoming] has sold more than 10 million copies — including hardcover, audiobooks and e-books — since its November release. That puts it near the top, if not the pinnacle, of all-time memoir sales.” It’s already the top-selling hardcover of last year, and it has outsold both of her husband’s books put together.
Here is the full story.
What I’ve been reading
1. Sarah A. Seo, Policing the Open Road: How Cars Transformed American Freedom. “The revolution in automotive freedom coincided with an equally unprecedented expansion in the police’s discretionary power.”
2. Allison Schrager, An Economist Walks into a Brothel, and Other Unexpected Places to Understand Risk. My blurb: “Allison Schrager’s An Economist Walks Into a Brothel is the best, most readable, most informative, most adventurous, and most entertaining take on risk you will find.”
3. Marlon James, Black Leopard Red Wolf. While the author of this new budding fictional series seems quite talented, this is more a book to admire than to enjoy. I can’t imagine that people will read it fifteen years from now. I’ve also read a bunch of reviews which try to praise it, without every telling the reader it will hold their interest.
4. Rachel M. McCleary and Robert J. Barro, The Wealth of Religions: The Political Economy of Believing and Belonging. A good overview of their work together on economics and religion, and also more generally a take on what the social sciences know empirically about the causes and effects of religion (not always so much, I should add).
5. The Bitter Script Reader, Michael F-ing Bay: The Unheralded Genius in Michael Bay’s Films. There aren’t enough enthusiastic, intelligent fanboy books, but this is one of them.
For prep for my Conversation with Knausgaard, I read a good deal of Ivo de Figueiredo, Henrik Ibsen: The Man & the Mask, and was impressed by how much new material he had uncovered.
Ben S. Bernanke, Timothy F. Geithner, and Henry M. Paulson, Firefighting: The Financial crisis and its Lessons: your model of this book is what this book is.
Arrived in my pile are:
Thomas Milan Konda, Conspiracies of Conspiracies: How Delusions Have Overrun America.
Uwe E. Reinhardt, Priced Out: The Economic and Ethical Costs of American Health Care. Uwe is gone but not forgotten.
Marion Turner, Chaucer: A European Life. This one may not please the Brexiteers.
Marie-Janine Galic, The Great Cauldron: A History of Southeastern Europe seems impressive, though I have not had time to read much of it.
Why is there so much suspicion of big business?
Perhaps in part because we cannot do without business, so many people hate or resent business, and they love to criticize it, mock it, and lower its status. Business just bugs them. After I explained the premise of this book to one of my colleagues, Bryan Caplan, he shrieked to me: “But, but . . . how can people be ungrateful toward corporations? Corporations give us everything! Corporations do everything for us!” Of course, he was joking, as he understood full well that people are often pretty critical of corporations. And they are critical precisely because corporations do so much for us. And do so much to us.
Does my colleague’s outburst remind you of anything? Well, immediately he followed up with this: “Hating corporations is like hating your parents.”
And:
There is another reason it doesn’t quite work to think of businesses as our friends. Friendship is based in part on an intrinsic loyalty that transcends the benefit received in any particular time and place. Many friendships also rely on an ongoing exchange of reciprocal benefits, yet without direct consideration each and every time of exactly how much reciprocity is needed. In addition to the self-interested joys of friendly togetherness, friendship is about commonality of vision, a wish to see your own values reflected in another, a sense of potential shared sacrifice, and a (partial) willingness to put the interest of the other person ahead of your own, without always doing a calculation about what you will get back.
A corporation just doesn’t fit this mold in the same way. A business may wish to appear to be an embodiment of friendly reciprocity, but it is more like an amoral embodiment of principles that usually but not always work out for the common good. The senior management of the corporation has a legally binding responsibility to maximize shareholder profits, at least subject to the constraints of the law and perhaps other constraints embodied in the company’s charter or by-laws. The exact nature of this fiduciary responsibility will vary, but it never says the company ought to be the consumer’s friend, at least not above and beyond when such friendship may prove instrumentally valuable to the ends of the company, including profit.
In this setting, companies will almost always disappoint us if we judge them by the standards of friendship, as the companies themselves are trying to trick us into doing. Companies can never quite meet the standards of friendship. They’re not even close acquaintances. At best they are a bit like wolves in sheep’s clothing, but these wolves bring your food rather than eat you.
Those are both excerpts from my final chapter “If business is so good, why is it so disliked?”, from my book Big Business: A Love Letter to an American Anti-Hero.
What do concert audiences really want?
Audiences only really like two parts of a show — the beginning and the end. You should prolong the former by rolling directly through your first three numbers without pausing. Then make sure you end suddenly and unexpectedly. Audiences rewards who stop early and punish those who stay late…
Finally, there’s nothing an audience enjoys more than hearing something familiar. If you think your songwriting and all-round musical excellence are enough to entertain a bunch of strangers for an hour with songs they have never heard before, bully for you. The Beatles didn’t, but what the hell do they know?
That is from the entertaining and insightful David Hepworth book Nothing is Real: The Beatles Were Underrated and Other Sweeping Statements About Pop. He lists the following as the ten best blues songs ever:
Memphis Jug Band: K.C. Moan
B.B. King: You Upset me Baby
Blind Willie Johnson: Dark Was the Night
Mississippi Fred McDowell: Shake ‘Em On Down
Lightnin’ Slim: Rooster Blues
Muddy Waters: Too Young to Know
Elmore James: I Can’t Hold Out
Otis Rush: All Your Love
Richard ‘Rabbit’ Brown: James Alley Blues
Blind Blake: Too Tight
By the way, Paul and the Beatles really did record both “I’m Down” and “Yesterday” in the same day.
*The People Next Door*
The author is T.C.A. Raghavan and the subtitle is The Curious History of India’s Relations with Pakistan. Here is one excerpt:
The massive rigging of the March 1977 election led to a Bhutto majority the size of which stunned even his supporters and, by some accounts, even embarrassed him. He and his party had been expected to win but the near-total decimation of the opposition made the election results lose credibility. “Why did you do this to me?” he is widely believed to have rhetorically asked a group of senior civil servants as the results came in. In any event, the loss of popularity and personal legitimacy was swift.
This book is must reading for these days, and it will be making my 2019 “best of the year” list. Order from abroad here, or in the U.S. it comes out in July.
What I’ve been reading
1. Aladdin, a new translation by Yasmine Seale. A wonderful, lively small volume, a good reintroduction to the Arabian Nights, recommended.
2. Shalini Shankar, Beeline: What Spelling Bees Reveal About Generation Z’s New Path to Success. Not as analytical as I was wanting, but more analytical than I had been expecting.
3. Rowan Ricardo Phillips, The Circuit: A Tennis Odyssey. Provides a good look at the interior world of tennis competition, with emphasis on very recent times. A good look at how to think about the game, not only in the abstract, but as it plays out through the logic of particular events and tournaments.
4. Tim Smedley, Clearing the Air: The Beginning and the End of Air Pollution. Perhaps the best extant introduction to the air pollution issue, one of the world’s most important and underrated crises, and no I am not talking about carbon.
5. Gordon Peake, Beloved Land: Stories, Struggles, and Secrets from Timor-Leste. Mostly analytical, with real information blended with travelogue. I can’t judge the content, but I was never tempted to put this one down and throw it away.
6. Roderick Beaton, Greece: Biography of a Modern Nation. Excellent survey and overview, makes the late 19th century intelligible, among other achievements. “For Greeks, unlike the concept of the nation, the state had always been an object of popular derision.”
My Conversation with Raghuram Rajan
Here is the transcript and audio, we covered so much, here is the CWT summary:
How much has the U.S. actually fixed the financial system? Does India have the best food in the world? Why does China struggle to maintain a strong relationship with allies? Why are people trading close-knit communities for isolating cities? And what types of institutions are we missing in our social structure? Listen to Rajan’s thorough conversation with Tyler to dive into these questions and much more.
Here is one excerpt:
COWEN: A lot of observers have suggested to me that the notion of a kind of Anglo-American liberalism as ascendant in India is now a dead idea, that ideologically, India has somehow shifted, and the main currents of thought, including on the so-called right, are just really not liberalism anymore. Do you have a take on that view?
RAJAN: I’m not sure I would agree. I would say that we’ve had a government over the last five years which has elements of the majoritarian, Hindu nationalist group in it. But I would argue the country, as a whole, is still firmly secular, liberal in the Nehruvian idea, which is that we need a country which is open to different religions, to different ethnicities, to different beliefs if we are to stay together.
And democracy plays an important role here because it allows some of the pressures which build up in each community to essentially get expressed and therefore diffuses some of the pressure. So I think India’s ideal is still a polyglot coming together in this country.
COWEN: But someone like Ramachandra Guha — what he symbolizes intellectually — do you think that would be a growing part of India’s future? Or that will dwindle as colonial ties become smaller, the United States less important in global affairs?
RAJAN: I think that an open, liberal, tolerant country is really what we need for the next stage of growth. We are now reaching middle income. We could go a little faster. We should go a little faster there.
Once we reach middle income, to grow further, I think we need an intellectual openness, which only the kind of democracy we have — the open dialogue, a respectful dialogue — will generate the kinds of innovative forces that will take us more to the frontier.
So I keep saying, and I say this in the book, we’re very well positioned for the next stage of growth, from middle to high income. But we first have to reach middle income.
And:
COWEN: Will current payments companies end up as competitors to banks or complements to the banking system? Or are they free riders on the banking system?
RAJAN: I think they’re trying to figure out their space. As of now, sometimes they’re substituting for . . . Certainly, my daughter uses her payment system completely separate from her bank account. But longer term, we’ll find ways of meshing these in and reduce the costs of making payments. Those costs are really too high at this point, and reducing those costs makes a lot of sense.
COWEN: Will banks ever be truly excellent at doing software?
RAJAN: I think we will have a combination of the guys who are truly good at software — the fintech companies — merging with banks who know how to do the financial side. They’ll bring each of their talents together. I’ve seen a lot of fintech people who have no clue as to what finance is really about. And I’ve seen a lot of banks who have no clue as to what tech is about. I think some merger will happen over time.
There is much more at the link. And here is Raghu’s new book The Third Pillar: How Markets and the State Leave Community Behind.
*Big Business: A Love Letter to an American Anti-Hero*
I am very excited about my next book, due out April 9:
I view this work as an antidote to many of the less than stellar arguments circulating today. It looks like this:
Table of contents
1. A new pro-business manifesto
2. Are businesses more fraudulent than the rest of us?
3. Are CEOs paid too much?
4. Is work fun?
5. How monopolistic is American big business?
6. Are the big tech companies evil?
7. What is Wall Street good for, anyway?
8. Crony capitalism: How much does big business control the American government?
9. If business is so good, why is it disliked?
Here is part of the Amazon description:
An against-the-grain polemic on American capitalism from New York Times bestselling author Tyler Cowen.
We love to hate the 800-pound gorilla. Walmart and Amazon destroy communities and small businesses. Facebook turns us into addicts while putting our personal data at risk. From skeptical politicians like Bernie Sanders who, at a 2016 presidential campaign rally said, “If a bank is too big to fail, it is too big to exist,” to millennials, only 42 percent of whom support capitalism, belief in big business is at an all-time low. But are big companies inherently evil? If business is so bad, why does it remain so integral to the basic functioning of America? Economist and bestselling author Tyler Cowen says our biggest problem is that we don’t love business enough.In Big Business, Cowen puts forth an impassioned defense of corporations and their essential role in a balanced, productive, and progressive society. He dismantles common misconceptions and untangles conflicting intuitions.
You can pre-order here on Amazon. Here at Barnes & Noble. Here at Books a Million. Here at Itunes. Here at IndieBound. From PlayGoogle. From Kobo.
Here is the publisher’s home page. Definitely recommended…and if you are a regular MR reader, no more than five to ten percent of this book has already appeared on this blog.
Reducing Discrimination with More Information
From Cui, Li and Zhang:
We conduct four randomized field experiments among 1,801 hosts on Airbnb by creating fictitious guest accounts and sending accommodation requests to them. We find that requests from guests with African American-sounding names are 19.2 percentage points less likely to be accepted than those with white-sounding names. However, a positive review posted on a guest’s page significantly reduces discrimination: When guest accounts receive a positive review, the acceptance rates of guest accounts with white-sounding and African American-sounding names are statistically indistinguishable.
In other words, taste based discrimination is weak but statistical discrimination is common. Statistical discrimination happens when legitimate demands for trust are frustrated by too little information. Statistical discrimination is a second-best solution to a problem of trust that both owners/sellers/employers and renters/buyers/workers want to solve. Unfortunately, many people try to solve statistical discrimination problems as if they were problems of invidious prejudice.
If you think the problem is invidious prejudice, it’s natural to try to punish and prevent with penalties and bans. Information bans and penalties, however, often have negative and unintended consequences. Airbnb, for example, chose to hide guest photos until after the booking. But this doesn’t address the real demands of owners for trust. As a result, owners may start to discriminate based on other cues such as names. Instead market designers and regulators should approach issues of discrimination by looking for ways to increase mutually profitable exchanges. From this perspective, providing more information is often the better approach. As Cui, Li, and Zhang write in a HBR op-ed:
Our recommendation is for the platform companies to build a credible, easy-to-use online reputation and communication system. Bringing information to light, rather than trying to hide it from users, is more likely to be a successful approach to tackling discrimination in the sharing economy.
Addendum: See also Tyler and I in The End of Asymmetric Information. We need to work with information abundance rather than try to push against the tide.
Thursday assorted links
1. Church forests in south Gonder.
2. What is it like to live without Google?
3. Classical liberalism in Venezuela.
4. Price theory summer camp at University of Chicago.
5. The welfare effects of social media, a new paper by Hunt Allcott, Luca Braghieri, Sarah Eichmeyer, and Matthew Gentzkow. (On the road, have not had a chance to read it yet.) And the NYT summary. My guess is this is the best paper on social media/Facebook so far.
Eric Kaufmann’s *Whiteshift*
The subtitle is Populism, Immigration, and the Future of White Majorities, and might this be the must-read book of the year? It is “to the right” of my views on immigration policy, but still I found it informative, fascinating, and relevant on just about every page. Here is the author’s opening framing:
First, why are right-wing populists doing better than left-wing ones? Second, why did the migration crisis boost populist-right numbers sharply while the economic crisis had no overall effect? If we stick to data, the answer is crystal clear. Demography and culture, not economic and political developments, hold the key to understanding the populist moment.
Kaufmann, by the way, is Professor of Politics at Birkbeck in London, but hails from Canada. As for the basics, there is this in addition:
Much of this book is concerned with the clash between a rising white tribalism and an ideology I term ‘left-modernism.’
If you wish to understand “all the stuff that is going on today,” maybe Whiteshift is the best place to start? Kaufmann, by the way, is not a mega-pessimist and he seems to think that “broadening the category of white” will lead to a “good enough” solution for many of the Western democracies. Still, much of this book is disturbing, especially for readers who might consider themselves to be on the left. Most of all, he sees “whiteness” as a legitimate cultural interest, and one which, if we deny, will lead to more overt racism rather than less.
Here is Kaufmann on Brexit, brutal but I think largely correct:
…many analysts bring a political lens to their analysis which inclines them to want to tell a story about wealth and power. Over half the country voted Leave and we can’t condemn such a large group. So we pretend populist voters are motivated by the same things we are: economic stagnation (for fiscal conservatives) or, for left-liberals, inequality and resentment of the establishment.
Kaufmann also has strong evidence for the “immigration backlash” hypothesis, for instance:
…a higher immigrant share is a consistent predictor of higher opposition to immigration over time…in Western Europe there is a .63 correlation between projected 2030 Muslim share and the highest poll or vote share a populist-right party has achieved.
On top of all of its other virtues, Whiteshift provides the best intellectual history of the immigration debates I have seen. It also has the best discussion of why Canada seems to be different when it comes to immigration, and I may cover that in another blog post.
Kaufmann does very much argue that the left-wing values of diversity and solidarity stand very much in conflict. How is this for an “ouch” sentence?:
Casual observation would suggest that being black in diverse San Francisco is not necessarily better than being black in white-majority Fargo [North Dakota].
By no means am I convinced by everything in this book. I don’t think European politics can handle systematized refugee camps in Europe itself (rather than Turkey and Lebanon), and most of all I am not sure that recognizing whiteness as a legitimate cultural concern will diminish rather than boost racism. I wish he had said much more about gender, and how immigration and gender issues interact.
Nonetheless this book has more points of interest yet, including an original and persuasive take on residential clustering, a good analysis of racial intermarriage, and a sustained argument that avoiding the “no dominant ethnic group” approach of Guyana and Mauritius is imperative.
Strongly recommended, it is out next week, you can pre-order here.