I just listened to an EconTalk podcast interview with Richard Posner about his new book, A Failure of Capitalism: The Crisis of ‘08 and the Descent into Depression [amazon]. The book has gotten a bit of buzz for the way in which Posner semi-recants certain libertarian or Chicago-style economics positions he is known for. But certain other positions he has not recanted, such as his narrow view of economic actors’ duties to consider negative externalities of their activities (discussed at CT before here and here). In the podcast, Posner basically asserts that those actors in the financial sector who almost crashed the world economy were right to do so, in the sense that it was rational for them, individually, to be massive ‘risk polluters’ (to coin a phrase someone else has probably coined already.) He would probably go further, although he isn’t actually asked to in the podcast: some of these actors were obliged to take the risk. In at least some cases it would have been their strong, positive fiduciary duty, under the circumstances, to do something which – taking a larger view – seriously threatened to run the whole world economy off a cliff. Because that was the apparent route of profit-maximization. It was their job not to take the larger view. Posner blames regulators, not these profit-maximizing actors, for the market failure; for not seeing that the damage to everyone downwind of all that toxic risk was so great that it should not have been permitted. [click to continue…]
From the category archives:
US Politics
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I’m not sure what Sarah Palin’s favorite work of postmodern theory might be (all of them, probably) but she seems to take her lead from Jean Baudrillard’s Seduction. Other political figures use the media as part of what JB calls “production.” That is, they generate signs and images meant to create an effect within politics. For the Baudrillardian “seducer,” by contrast, the power to create fascination is its own reward.
More from Scott, here.
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I wrote a couple of blog posts last year on the Mickey Tax, or, as its promoters would prefer to describe it, the ‘Travel Promotion Act’ bill, which would seek to ‘promote’ travel to the US by imposing a fee on anyone entering the country which would in turn be handed over (after costs were deducted) to an advertising slush-fund. Now the FT is reporting that the European Union is threatening to retaliate against it by imposing visas on US visitors.
US plans to levy fees on European Union tourists and business travellers visiting the US have come under fire in Brussels and could prompt the EU to enact its own visa-like system for US travellers, according to diplomats. … In the past, most Europeans visiting the US for less than 90 days have not had to make pre-departure arrangements. The same applies to US visitors to the EU under visa-reciprocity guidelines. “If this tax is indeed introduced, the Commission will have to re-evaluate once again whether it is tantamount to a visa,” said a spokesman for Jacques Barrot, the commissioner for justice and home affairs, on Tuesday.
If the EU carries through on this threat, American tourists to Europe who have to pay visa fees, wait in queues at overworked consulates etc, should know who is responsible – the Walt Disney Corporation of America.
JAY RASULO STOOD IN FRONT OF TWO MASSIVE SCREENS, each projecting his balding visage, and did what he loves to do: sell a big idea. The dapper, diminutive chairman of Walt Disney Parks and Resorts implored 500 tourist industry executives to ask the federal government for an expensive favor. … Executives from tourism giants such as Marriott, American Express and Hertz buzzed with excitement—and skepticism. Getting taxpayers to underwrite overseas commercials had been the travel industry’s Holy Grail for decades. But the idea had never gotten very far in the councils of government. … A big lobbying push was needed for a big Ask—the term lobbyists use to describe what they are pleading for from Congress.
It’s an interesting story. When it became clear that the travel industry was unlikely to get US taxpayers to pay for a $200 million travel promotion campaign, lobbyists started looking for alternative ways of raising money – and the most obvious was to top up the industry’s own efforts with the Mickey Tax. Hence the bill, and hence the possible retaliatory measures from Europe. All thanks to Jay Rasulo and his balding visage.
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This Boston Review piece by Tom Barry is very much worth reading, as a background briefing to the prison funding shenanigans recently described by Talking Points Memo.
These immigration prisons constitute the new face of imprisonment in America: the speculative public-private prison, publicly owned by local governments, privately operated by corporations, publicly financed by tax-exempt bonds, and located in depressed communities. Because they rely on project revenue instead of tax revenue, these prisons do not need voter approval. Instead they are marketed by prison consultants to municipal and county governments as economic-development tools promising job creation and new revenue without new taxes. The possibility of riots usually goes unmentioned. … Initially, most speculative prisons were privately owned, a case of the federal government outsourcing its responsibilities. But prison outsourcing is rarely that simple anymore. The private-prison industry increasingly works with local governments to establish and operate speculative prisons. Prison-town officials have a mantra: “If you build a prison the prisoners will come.”Most of the time, these public-private prisons are speculative ventures only for bondholders and local governments, because agreements signed with federal agencies do not guarantee prisoners. For the privates, risks are low and the rewards large. Usually paid a set fee by local governments to operate prisons, management companies have no capital investment and lose little, other than hefty monthly fees, if inmate flows from the federal government decline or stop.
… Prisons are owned by local governments, but local oversight of finances is rare, and the condition of prisoners is often ignored. Inmates such as those in Pecos are technically in the custody of the federal government, but they are in fact in the custody of corporations with little or no federal supervision. So labyrinthine are the contracting and financing arrangements that there are no clear pathways to determine responsibility and accountability. Yet every contract provides an obvious and unimpeded flow of money to the private industry and consultants.
The piece isn’t perfect – it can’t quite decide whether it is a story about the problems of the prison system or about the problems of the US approach to immigration. The two are of course closely connected, but each is very complicated in its own right, and trying to explain both at once makes for a top-heavy account. I would also have liked to have seen more aggregate data to support the specific arguments that the author is making (I suspect though that one of the problems with keeping this metastasizing system under control is that there isn’t any source of good general data out there). But it is an eye-opening piece of investigative journalism, looking at a story that doesn’t get nearly as much attention as it deserves. Recommended.
My friends at Labor Notes tell me that it has gone, rather spectacularly, online. More then ten years of archived issues, the current issue, a blog, and a shop (with hoodies and mugs!).
Andrew Gelman discusses Superfreakonomics saying,
The interesting question to me is why is it that “pissing off liberals” is
delightfully transgressive and oh-so-fun, whereas “pissing off conservatives” is boring and earnest?
Several years ago bumper stickers appeared that read “Annoy a Liberal. Work hard. Succeed. Be happy.” I was living in Arizona at the time, so they became a routine part of my commute. Possessing neither the blunt empirical thesis of “Guns Bought Your Freedom” nor the slow fuse of “Body Piercing Saved My Life”, the barefaced cheek of the non sequitur made the sticker absurd and irritating at the same time. I remember wondering what a parallel message to conservatives would look like. Sure enough, attempts at rebuttal soon started appearing on (other) bumpers. They were lame—stuff like “Annoy a Conservative. Think for yourself. Defend the Constitution. Balance the Budget.” Noble sentiments, but watery stuff by comparison.
Why did they seem so ineffective a response? Perhaps stronger material was needed. Might “Annoy a Conservative. Burn the Flag. Convert to Islam. Have an Abortion” work better? No. While that kind of thing can have some punch (“Jesus Loves You, But Everyone Else Thinks You’re An Asshole”), it doesn’t seem like the right tack. Instead, the best riposte to the “Annoy a Liberal” sticker is simply the same thing with the target swapped out: “Annoy a Conservative: Work. Succeed. Be Happy”. The effect is more or less the same as the original, especially if placed on the back of your Lesbaru. Temporarily suspending my longstanding irritation at divisions of this sort, much of what passes for “Pissing off Conservatives” is really an effort to rebut some ridiculous charge or other, instead of a genuinely symmetrical attempt to piss someone off. Or, as the story has Lyndon Johnson arguing, it’s better to kick off the conversation in a way that forces the other guy to deny that he’s a pig-fucker.
Jonah “organic honey at Dachau” Goldberg wonders, “Is ‘Nazi’ the only label our culture understands as irredeemably evil?”
Additional Corner hilarity: someone ought to tell n00b Lee Edwards about his colleague Andrew McCarthy’s views. Edwards puts forward Uighur activist Rebiya Kadeer as a more plausible Nobel Peace prize-winner, as she supports peaceful dissent from the Chinese government over its “deliberate and often brutal campaign to suppress the Uighur language, culture, and religion (the Uighurs are Muslim).” I couldn’t agree more, but there’s that niggling “Muslim” detail. McCarthy opposed the release of any of the 17 Uighur detainees at Guantanamo, calling them “alien jihadists” who are “affiliated with a terrorist organization and have received terrorist paramilitary training.” Likewise, during the recent conflict between Uighurs and Han Chinese in Xinjiang, McCarthy deferred to “accounts of some witnesses to state-controlled media” in his sober assessment entitled “Hard to Believe the Lovable Uighurs Could Be Involved in Terrorism . . . ” Then again, this is the same McCarthy who observed that “as a man of the hard Left, Obama is more comfortable with a totalitarian Islamic regime than he would be with a free Iranian society.” Thus, as a man of the hard Right, McCarthy is more comfortable with a totalitarian Communist regime than he would be with a free Chinese society. I feel something has gone sort of wrong there, but—SCARY MUSLIMS OMG!
I’ve been doing my best to resist getting pulled back in by Clive Crook. I really have. I nearly succumbed when I read his Monday FT column, in which otiose self-congratulation dukes it out with utter lack of self-knowledge for seven hundred words but pulled myself back from the brink (self-congratulation wins, but it’s a very close call). But his follow-up blog post has propelled me into the abyss.
Mr. Crook has a theory of what is wrong with American politics. It involves partisanship, of the kind not practiced by himself and his friends.
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More translation mysteries tonight. Conservapedia is calling for a Conservative Bible Project.
As of 2009, there is no fully conservative translation of the Bible which satisfies the following ten guidelines:[2]1. Framework against Liberal Bias: providing a strong framework that enables a thought-for-thought translation without corruption by liberal bias
2. Not Emasculated: avoiding unisex, “gender inclusive” language, and other modern emasculation of Christianity
3. Not Dumbed Down: not dumbing down the reading level, or diluting the intellectual force and logic of Christianity; the NIV is written at only the 7th grade level[3]
4. Utilize Powerful Conservative Terms: using powerful new conservative terms as they develop;[4] defective translations use the word “comrade” three times as often as “volunteer”; similarly, updating words which have a change in meaning, such as “word”, “peace”, and “miracle”.
5. Combat Harmful Addiction: combating addiction by using modern terms for it, such as “gamble” rather than “cast lots”;[5] using modern political terms, such as “register” rather than “enroll” for the census
6. Accept the Logic of Hell: applying logic with its full force and effect, as in not denying or downplaying the very real existence of Hell or the Devil.
7. Express Free Market Parables; explaining the numerous economic parables with their full free-market meaning
8. Exclude Later-Inserted Liberal Passages: excluding the later-inserted liberal passages that are not authentic, such as the adulteress story
9. Credit Open-Mindedness of Disciples: crediting open-mindedness, often found in youngsters like the eyewitnesses Mark and John, the authors of two of the Gospels
10. Prefer Conciseness over Liberal Wordiness: preferring conciseness to the liberal style of high word-to-substance ratio; avoid compound negatives and unnecessary ambiguities; prefer concise, consistent use of the word “Lord” rather than “Jehovah” or “Yahweh” or “Lord God.”
They are basically planning to start with the King James Bible and then just make it say what they think it should. Not only do they apparently regard it as inessential to involve anyone with knowledge of the original texts – although they off-handedly contemplate this as a possibility – they are touting ‘mastery of English’ as one of the benefits those who help with the project can expect to reap. What can one say? I find it hard to believe the whole thing isn’t some sort of elaborate, Borat-style hoax. Could it be? (Is Conservapedia for real?) Discuss.
via Sadly, No!
Alan Grayson has caught some flak for alleging the Republican health care plan is ‘don’t get sick, and if you do, die quickly.’ For instance, here is push-back from the Corner: “if you must respond, just repeat after Ed Morrissey: “I seem to recall that Republicans wanted to abolish the death tax, and Democrats objected. Which party wants to make money off of your dead corpse?” In other words, technically the plan is, ‘don’t get sick, and if you do, die quickly. And if you manage to do so with more than $1 million, you can give it all to your kids.’ This is a health care reform plan? Repeal the estate tax?
I was kind of surprised to see that the wonderful Tom Russell has a long essay on some new blog called The Rumpus, all about Juarez, El Paso, drug wars, borderlands, corruption, et cetera. I love his music, and I like his writing too, so I’m always pleased to see some more of it. The content, though, the content is shocking.
I turned that page in section B where there was a short item about two El Pasoans slain yesterday in a Juarez bar shooting. Back page stuff. Hidden near the end of the story was the astounding body count: nearly 2900 people, including more than 160 this month alone, have been killed in Juarez since a war between drug traffickers erupted January 2008 . John Wesley Hardin wouldn’t stand a chance.
Jesus. You’re probably safer in Kandahar.
More evidence that the discovery trove from the tobacco litigation is one of the major sources for information on the political economy of late 20th century America. James Fallows on notorious hack Betsy McCaughey.
the real news is the evidence that tobacco lobbyists secretly worked with McCaughey to prepare her infamous New Republic article “No Exit.” As I argued back in 1995 in “A Triumph of Misinformation,” everything about McCaughey’s role in the debate depended on her pose as a scrupulous, impartial, independent scholar who, after leafing through the endless pages of the Clinton health proposals, had been shocked by what she found. If it had been known at the time that she was secretly collaborating with one of the main interest-group enemies of the plan, perhaps the article would never had been published; at a minimum, her standing to speak would have been different.
Ms. McCaughey was apparently unwilling to be interviewed for the Rolling Stone article that Fallows is riffing off. This is a pity. It would have been interesting to have found out a little more about the precise role that tobacco lobbyists played in helping draft McCaughey’s notoriously mendacious piece (since the proposed reforms would have been partly bankrolled by a tobacco tax, they clearly had a considerable interest in influencing debate).
Update: The Manhattan Institute appears to be denying that McCaughey ‘worked with’ Philip Morris.
Is this a question of a lobbyist grossly exaggerating his “influence” to impress bosses and funders? That’s a very familiar pattern in Washington. On the other hand, the lobbyist’s detailed knowledge of Betsy McCaughey’s writing plans suggests some interaction. I don’t know the underlying truth here. It would be valuable if Ms. McCaughey, who has specialized in detailed textual analysis, would address in specific what these documents contend.
That politely acidulous ‘has specialized in detailed textual analysis’ is quite nice. I suspect that all this turns on the precise definition of what the term ‘worked with’ means or can be taken to imply.
Via a FB friend:
As of April 1, 2006, out of a 2004 Census estimated population of 18 in Teterboro, there were 39 registered voters (216.7% of the population, vs. 55.4% in all of Bergen County).
Sadly, the answer may be prosaic. From earlier in the same Wikipedia entry:
The 2000 census failed to count any of the residents of the Vincent Place housing units who had moved into the newly built homes in 1999. The uncounted residents, including the Mayor and all four Council members, would help make up a projected tripling of the population enumerated by the census.
And I thought only philosophers played games with “general” descriptions like this. Via Think Progress:
And while Republicans have proposed several compromise amendments, most of their provisions seek to delay the mark-up process and undermine the bill. Sen. Orrin Hatch (R-UT), for instance, introduced an amendment (Hatch F7 [pdf]) to “add transition relief for the excise tax on high cost insurance plans for any State with a name the [sic] begins with the letter ‘U.’”
Following the successful wingnut attack on Van Jones, the Washington Independent reports that Glenn Beck’s next target is Cass Sunstein, with the pretext being his discussion of organ donation in Nudge, his book with Thaler on how small framing effects can have big effects on outcomes (. I see this as a positive development in all sorts of ways.
Update Sunstein’s appointment was approved by the Senate on a near party line vote 57-40. Six Republicans (Bennett, Collins, Hatch, Lugar, Snowe,Voinovich) voted Yes. The No votes included Bernie Sanders who opposed Sunstein for much the same reasons I would and some Blue Dogs notably including Ben Nelson, who followed the Beck line (all of the Dems voted for cloture). Obama’s only real chance of achieving anything is to dump both the filibuster rule and the Blue Dogs. End update