Puzzling over money, and debt

by Chris Bertram on March 27, 2012

I’ve just sent back the proofs for the new edition of Rousseau’s _Of the Social Contract and Other Political Writings_ (edited Bertram, translated Quintin Hoare) that Penguin Classics are publishing in September. One of the “other writings” is the _Constitutional Proposal for Corsica_ . Reading through, I suddenly alighted on an sentence and thought, “hang on, that makes no sense!” The relevant phrase in French (OC3: 936) is

bq. …quand le Prince hausse les monnoyes il en retire l’avantage reel de voler ses créanciers …

For which we had

bq. …when the Prince raises the value of a currency he derives the real advantage of stealing from his creditors …

But, but …. Surely what the prince needs to do to steal from his creditors is the exact opposite? You inflate. You inflate away the debt. You make the currency worth less, not more. Isn’t Rousseau just writing nonsense then?

It turns out not, and, thanks to the help of the estimable Chris Brooke I now understand. My thinking on this, and that of just about all modern readers I suspect, is formed by thinking of fiat currency. But if we have currency that (purportedly) derives its value from its metallic content (such as gold) then you can debase the coinage by raising its _face value_ whilst keeping the metal content the same. (Or alternatively, you could adulterate the metal or clip the coin to get the same effect.) Finding out this kind of thing really is great fun.

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Counting what really counts

by niamh on March 26, 2012

I’m just back from a conference in Boston where there was a great deal of discussion about the idea of the ‘social investment welfare state’ which I found really fascinating. Many countries have moved in recent years to go beyond ‘passive’ social transfers and to ‘activate’ their labour force. But there are many different ways of doing this. The interesting thing is that the policies that are the most socially equitable are now turning out to be the most economically effective too. New books (1) by Nathalie Morel, Bruno Palier, and Joakim Palme and by Anton Hemerijck show that the countries that invest heavily in early childhood education, in continuous education opportunity, in high-quality training schemes, and in making it easier for women to take part in the workforce,  have both higher growth and productivity rates and less inequality and poverty. An important part of the package is to have high levels of secure benefits as transition measures when people are not in employment or in training. And it seems we don’t already have to be Sweden or the Netherlands before we can start to do relevant things at all.

However, one of the implications of work in this field is that our standard ways of doing national accounts work against adopting the right priorities. Relevant expenditures are counted as transfer or consumption spending rather than investment spending. So it’s all too easy for governments to cut them back in recessionary times.

Remember Sarkozy’s Commission on the on the Measurement of Economic Performance and Social Progress, prepared by Amartya Sen, Joseph Stiglitz, and others? It opened up the question of what growth is for anyway, and what we count when we measure GDP in ways that prioritized ‘societal well-being, as well as measures of economic, environmental, and social sustainability’. The Institute for New Economic Thinking sponsors lots of interesting initiatives in economic theory and comparative analysis.

In historical terms, we are still in a very early phase of response to the latest global crisis. We don’t yet know if it will prove to be a turning-point in the dominant economic paradigm. Lots of people are starting to do the necessary thinking. They need to get out into the wider political debate.

(1) The first of these book is expensive*, but it should be in paperback edition by summer; the second will be published in the autumn. *Update – the Policy Press website quotes what may be the best price to date.

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Attacking community colleges

by Henry Farrell on March 26, 2012

Even by the standards of _Washington Post_ op-eds, “this”:http://www.washingtonpost.com/opinions/do-college-professors-work-hard-enough/2012/02/15/gIQAn058VS_story.html is shoddy and misinformed.

bq. Such a schedule may be appropriate in research universities where standards for faculty employment are exceptionally high — and are based on the premise that critically important work, along with research-driven teaching, can best be performed outside the classroom. The faculties of research universities are at the center of America’s progress in intellectual, technological and scientific pursuits, and there should be no quarrel with their financial rewards or schedules. In fact, they often work hours well beyond those of average non-academic professionals.

bq. Unfortunately, the salaries and the workloads applied to the highest echelons of faculty have been grafted onto colleges whose primary mission is teaching, not research. These include many state colleges, virtually all community colleges and hundreds of private institutions. For example, Maryland’s Montgomery College (an excellent two-year community college) reports its average full professor’s salary as $88,000, based on a workload of 15 hours of teaching for 30 weeks. Faculty members are also expected to keep office hours for three hours a week. The faculty handbook states: “Teaching and closely related activities are the primary responsibilities of instructional faculty.” While the handbook suggests other responsibilities such as curriculum development, service on committees and community outreach, notably absent from this list are research and scholarship.

bq. …I take no issue with faculty at teaching-oriented institutions focusing on instructional skills rather than research and receiving a fair, upper-middle-class wage. Like good teachers everywhere, they are dedicated professionals with high levels of education and deserve salaries commensurate with their hard-earned credentials. But we all should object when they receive these salaries for working less than half the time of their non-academic peers. … An executive who works a 40-hour week for 50 weeks puts in a minimum of 2,000 hours yearly. But faculty members teaching 12 to 15 hours per week for 30 weeks spend only 360 to 450 hours per year in the classroom. Even in the unlikely event that they devote an equal amount of time to grading and class preparation, their workload is still only 36 to 45 percent of that of non-academic professionals. Yet they receive the same compensation.
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In touch with the Zeitgeist?

by John Q on March 25, 2012

At around 35k into the cycle leg of today’s Mooloolaba triathlon, with a strong headwind[1] and the seat feeling very hard, I was wondering “why am I doing this”. At the time, the question was more like “why did I get out of bed this morning”, but there’s also a question as to why a middle-aged academic like myself is doing something like this at all.

My own causal account is pretty simple. I gave up my old sport, karate, for a variety of reasons, then started “boot camp” style training (minus silly uniforms and other pseudo-military stuff). to keep fit. As a consequence, I found that, whereas the distance I could comfortably run had been measured in 100s of metres, it was now measured in kilometers. But I still wasn’t particularly fast and my reasoning (captured by a T-shirt I saw today) was, “why suck at one sport when you can suck at three”. And indeed, so it has turned out, but I still enjoy it and keep trying.

So, that’s the purposive agent account. But (while I was not consciously aware of this at the time) triathlons are booming and not just in Australia. So, it seems, there is some general zeitgeist which I (and thousands of others) have somehow been driven by. This is not a unique occurrence

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Danglyparts and decision theory

by John Q on March 23, 2012

Anytime ladyparts are in the news, it’s not long before there’s a palpable feeling that longstanding norms of gender equity have been violated and that balance needs to be restored. Often, this just means getting back to the really important stuff, like whether to invade Iran, Syria or both[1]. But there’s also the point that men have parts too, and should have a share in the limelight, the same as women do when we discuss important stuff.[2]

So, I thought I’d talk about a dangly dilemma faced by men of a certain age – whether to take the PSA test for prostate cancer.

These days a lot of authorities recommend against testing. I have ignored their advice, and get tested every couple of years (news good, so far!). So, who is right? And does the argument extend to other parts and tests?

update I thought I’d add a followup question here, rather than in comments. From a decision-theoretic viewpoint, the arguments against testing imply, for consistency, the following further recommendations (subject to some qualifications I’ll spell out).
*First, that someone who takes the test (ignoring the guidelines) and comes up with a high PSA score should not have a biopsy, and should not be tested again.
*Second, that someone who has a biopsy and gets a bad result should just ignore it, and not get tested again.

The qualification is that this treats the cost of the PSA test and the biopsy (which, as discussed in comments, carries some non-trivial risks) as small, relative to the benefits of even modest changes in treatment (such as a shift from complete ignorance to “watchful waiting”). Does anyone know whether these recommendations have in fact been made? If not, can anyone provide a defence of what seems to me to be an obvious inconsistency? End update

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Trayvon Martin Disgrace

by Belle Waring on March 23, 2012

N.B. I say “disgrace” because it’s not a tragedy, precisely.
I am officially not allowed to look at the internet, as it is likely to give me a terrible migraine. More terrible than the one I already have. All the time. So this will have to be brief (lol srsly). I just scanned the front page to see if there was anything else, but didn’t see it, so I feel as if I have to say something about the shameful, quasi-state-sanctioned execution of Trayvon Martin.

Trayvon Martin was 17, and was staying with family in Sanford, Florida, in what is referred to by the obligatory monicker “mostly-white gated community.” He walked out to buy some candy and a can of iced tea at a local convenience store, and was tailed back by a self-appointed neighborhood watchman, who deemed him “real suspicious” and “probably on drugs or something.” This joker George Zimmerman then got out of his truck to (perhaps) scuffle with Trayvon, and then shot him in cold blood, as far as anyone can figure, while Trayvon was pleading for his life. This (the pleading) can be heard in the background of neighbors’ 911 calls. I have to say it’s a little odd none of them stepped out on the porch with a shotgun to say “I’ve called the cops already, cut it out!” The number of people committing crimes who will just run away if you say “I see you down there, knock it off” is high IME. Zimmerman claims it is his high-pitched voice we hear begging for his life between the firing of the first and the second shot, after which there is silence. Take a look at a picture of the man. I don’t even know what to say.

UPDATE: I place this above the fold so everyone will see. I was sort of taking it for granted that people were reading Ta-Nehisi Coates‘ blogging on this, which has been copious and excellent. But if you haven’t, you should.
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Stephen J. Dubner: My Part in his Upfall

by Henry Farrell on March 21, 2012

So it appears that Stephen J. Dubner, co-author of _Freakonomics_ is “upset at various critics”:http://www.freakonomics.com/2012/03/20/freakonomics-what-went-right-responding-to-wrong-headed-attacks/. He is deeply unhappy with Andrew Gelman and Kaiser Fung, for having written what appeared to me to be a skeptical but intellectually generous take on the Freakonomics project. He is angry at Ezra Klein, whom he describes as someone who is ‘in the business of attacking at any cost’ on the basis of a tweet that Dubner presents in a “rather misleading fashion”:http://blogs.reuters.com/felix-salmon/2012/03/21/annals-of-dishonest-attacks-stephen-dubner-edition/. And he believes that ‘a man named Chris Blattman’ (great title for a band btw), was insufficiently abject in his apologies for a post “in which he suggested”:http://chrisblattman.com/2012/01/28/more-on-yesterdays-cheap-shot-at-freakonomics-and-wsjideasmarket/ that _Freakonomics_ did not provide sufficient credit to other bloggers. Dubner is entirely right when he suggests that apologies should not be self-serving. So I hope that my own apology – long overdue – is not misinterpreted as same. I’d hereby like to sincerely apologize for having done my little bit to make Stephen Dubner and the whole _Freakonomics_ phenomenon what they are today.

Long-time readers will be familiar with the _Crooked Timber_ seminar that we did many years ago on the original _Freakonomics_ book. I can’t say what exact role it played in helping the book becoming the mass cultural phenomenon that it did, but the publicists seem to think that it played a significant role in generating publicity. Part of this was likely novelty – no-one had done anything quite like this before, so that lots of other bloggers linked to it. The revised and updated paperback edition of the book described the seminar as having provided the most astute analysis to date of the book’s arguments.

Doing this seminar was, I’m afraid, my initiative. I could try to defend myself. I (and others) were more interested in Levitt’s original academic work than the popularization. We sort of said this _sotto voce_ in the seminar, but only _sotto voce._ Nor has _Freakonomics_ been entirely bad. It’s gotten e.g. Justin Wolfers, who is excellent value for money, out into broader public circulation.

But even if it seemed a good idea at the time, I should have known better. Yes – Levitt is an interesting and original economist, but the glib contrarianism and breezy confidence that silly econometric results would tell us something valuable about the world were baked into the cake from the beginning of the _Freakonomics_ project, and perhaps before. D-squared’s perhaps never-to-be-published CT summation of his various posts on Freakonomics makes that clear. It’s a bit like one of those high-end fashion marques that begins with haute couture, and ends up over-extending its brand by using it on everything from cheap plastic novelties to toilet paper.

Both the blog and the second book were pretty dreadful. John has written about the contrarianism of the book, while as Andrew Gelman has hinted, he could have been a lot nastier had he wanted to be, pointing e.g. to the blog’s highlighting of results suggesting that ESP works, that the economy wasn’t actually all that bad in October 2008 etc. Nearly every time that I’ve seen _Freakonomics_ mentioned in the last several years, I’ve felt guilty and embarrassed that I had something to do with its rise to prominence. Very likely, it would have become prominent anyway (it had a very well organized PR campaign). But perhaps, given the chanciness of social contagion etc, it would not.

In any event, there really aren’t any excuses. I’m genuinely sorry for whatever push I gave to help start the _Freakonomics_ snowball rolling down the hill. There’s not much I can do about it now, but there you go.

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David Brady on the Welfare State, Unions, and Poverty

by Kieran Healy on March 21, 2012

Here’s a nice profile in the Guardian of my colleague Dave Brady, who was in London recently talking about poverty and social policy:

Brady’s response is that we need to rebuild trust in a welfare state that everyone feels they benefit from. The problem he sees developing in Britain is similar to the situation that exists in the US, where welfare is now only for the very poorest people.

“The more [that] ‘welfare’ is a broad portfolio of social policy to help people across the life span, the more effective it is at reducing poverty,” he explains.

“If you create a small constituency of beneficiaries that doesn’t have broad-based political support, it’s harder to mobilise in support of those benefits.”

For evidence, Brady points out, look no further than the ease with which the welfare reform bill got through parliament compared with the ferocious fight the coalition government has had to get the health bill on to the statute book.

Unluckily for me, Dave will soon be heading off to Berlin to be a director at the WZB, despite the city’s near-total absence of quality baseball.

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Poems to celebrate World Poetry Day

by Ingrid Robeyns on March 21, 2012

Today is World Poetry Day, and as previously announced we will celebrate it here at Crooked Timber by having an open thread where all of us can post poems, with or without translations, of our own making or borrowed from someone else. Here’s mine, which dates back to my student days, but I am pretty sure I didn’t write it myself – I think it read it somewhere in the form of street poetry or in a students’ magazine. The original is in Dutch, the English translation mine. Enjoy!

Ze schreef een klein gedichtje
het had niet veel om handen
maar het was als een klein lichtje
dat in het donker brandde.
*****
She wrote a little poem
it didn’t mean much at all
yet it was like a tiny light
glowing in the dark.

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No Ordinary Deal

by John Q on March 21, 2012

Max Weber once described politics as the slow boring of hard boards, and this is an apt description of the continuing efforts of the advocates of a globalised capitalism to grind down all the obstacles that might be posed by democratic government.

The dominance of global capital has been greatly enhanced by trade agreements such as those establishing the World Trade Organization. But, over time, the WTO has been less and less able to avoid public scrutiny and popular resistance. Moreover, it has an unfortunate tendency to stick to the rules even when US business doesn’t like the outcome. So, we’ve seen a steady shift to bilateral deals, in which the US can dictate the terms.

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The new enclosures as a threat to freedom

by Chris Bertram on March 19, 2012

This morning brings news of new plans by Britain’s Tory/LibDem coalition, this time to privatize parts of the road network. Presented (again) merely as a way of getting things working more efficiently, this is both part of a pattern and – the philosophical point here – a further reduction in the liberty of individuals. The pattern is a gradual shift of resources that used to be common in to the private or quasi-private sector. Not long ago, higher education was free: now it is not. Fairly large amounts of formerly public space in cities are now in the hands of private developers who employ security guards to enforce their rules on what can be done on their land. Government plans to privatize publicly-owned forest and woodland have been defeated, but for how long? The “reforms” of Britain’s National Health Service allow for new charges to be brought in for treatments and services deemed “non-essential” (although NHS trusts are already denying treatment for some conditions that used to be treated for free). Generally, there’s a shift from formerly taxpayer-funded services towards privatized ones that users have to pay for.

No doubt our “libertarian” friends approve of this shift, but those who don’t have an ideologically distorted view of liberty should be alarmed. First, the extension of chargeable private space means that the range of actions permitted to individuals who lack money is reduced. Lack of money reduces your purely negative freedom,[1] as anyone who tries to perform actions encroaching on the state-enforced private property of others will quickly discover. Second — and this point should hold even for those silly enough to reject the view that private property restricts the freedom of those who have less of it — the increase in privatized public space means that we are increasingly subject to the arbitrary will of private owners concerning what we can and can’t do. Rights of assembly? Rights of protest? Rights to do things as innocuous as take a photograph? All of those things are now restricted or prohibited on formerly public land across the United Kingdom or subject to the permission of the new private owner. The interest of those who endorse a republican conception of freedom is thereby engaged, as is those of liberal persuasion who think a list of basic liberties should be protected: less public space, less capacity to exercise those basic liberties. The proposed privatization of the roads is just an extension of this.

(The Liberal Democrats as part of the Tory-led coalition bear a particularly heavy responsibility for failing to prevent these changes for which the UK government has no democratic mandate. With luck they will be destroyed at the next election, as they deserve to be. Let no-one forget, though, how far the last Labour government took us down this path and legitimized these changes through measures like student fees and the Private Finance Initiative.)

fn1. For an argument to this effect and a demolition of the idea that lack of money confers lack of ability rather than unfreedom, see G.A. Cohen, “Freedom and Money”:http://howardism.org/appendix/Cohen.pdf (PDF)

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Fairness and Fish

by John Holbo on March 19, 2012

I’m teaching a chapter from Peter Singer, The Expanding Circle: Ethics, Evolution, and Moral Progress [amazon]. This passage gives some sense of the argument:

Why should our capacity to reason require anything more than disinterestedness within one’s own group? Since the interests of my group will often be better served by ignoring the interests of members of other groups, the need for a public justification of conduct should require no more than this. Indeed, shouldn’t we rather expect the need for public justification to prohibit justifications which give the interests of my group no more weight than the interests of other groups? This suggestion overlooks the autonomy of reasoning – the feature I have pictured as an escalator. If we do not understand what an escalator is, we might get on it intending to go a few meters, only to find that once we are on, it is difficult to avoid going all the way to the end. Similarly, once reasoning has got started it is hard to tell where it will stop. The idea of a disinterested defense of one’s conduct emerges because of the social nature of human beings and the requirements of group living, but in the thought of reasoning beings, it takes on a logic of its own which leads to its extension beyond the bounds of the group.

I think it’s fair to say that Stanley Fish is shaky on the concept of an escalator, in Peter Singer’s sense. [click to continue…]

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All culture wars, all the time

by John Q on March 18, 2012

I’ve been meaning for a while to write a post about the way in which all US political issues are viewed, particularly from the right, through the lens of the culture wars. The same is true for the large segments of the right in other English-speaking countries that take their lead from the US. I decided to get it done after reading this piece from Jonathan Haidt in the NYT, which makes quite a few of the points I had in mind, but treats political tribalism as an eternal reality (here evo-psych raises its inevitable head) rather than a factor that varies in importance at different times and places.

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St. Patrick’s Day: Kevin McAleer in Action

by Henry Farrell on March 18, 2012

In celebration of the day that’s in it, something from my past, and the past of a fair number of people from my generation. We were nearly the last to come of age when Irish culture was dominated by a combination of the Catholic Church and a particularly lugubrious nationalism. One of the early harbingers of its collapse was a television show, _Nighthawks_, which was broadcast on Ireland’s second station at 11pm a few nights a week, when the pious and well behaved had already gone to bed. The best bits of it were the occasional appearances by stand-up comic, Kevin McAleer, who stretched the conventions of Irish rural life, out and out and out, until they had become completely surreal and demented, all while staring at you with an expression of utter gormlessness, shot through with occasional bouts of craftiness. I mentioned this once before on Crooked Timber, and got an email out of the blue from McAleer, telling me that the tapes of _Nighthawks_ had long ago been erased, in the systematized auto-da-fe that was Irish television’s contribution to our cultural heritage (see also “Kieran”:https://crookedtimber.org/2007/04/26/childhood-horrors/ ). But in the interim, someone (McAleer himself??) seems to have found some bits and pieces, and put them together with footage of his live show on Youtube, which should give people the flavour of the thing. Here are two. I’d be interested to know how readers react to them – I think they’re inspired myself but you may have to have the right cultural context to really get them. I’d be interested to know how they travel.

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KBU

by John Q on March 16, 2012

After long delays[1], GMU has come down with a self-contradictory whitewash on the plagiarism case against climate delusionist Edward Wegman.  One committee conceded plagiarism on a paper that had already been retracted by the journal in question, and recommended a reprimand, while another cleared Wegman of all charges, against the judgement of every external expert who’s looked at the case, and in the face of copious evidence of direct cut-and-paste copying.

With this and the Cato takeover, I think those both on the left and parts of the right who have presented views extremely critical of the “Kochtopus” network can rest their case. Any institution that relies on Koch Brothers money, whether it presents itself as a university, a thinktank or a grassroots organization, has to be regarded as a propaganda outfit.

That’s true, even if, as in the case of Cato and GMU, some genuine and valuable research is produced. The use of genuine material as a cover for industry propaganda is now a well established technique – the most famous blogospheric example was that of Tech Central Station.

For people working at Koch-controlled organizations who value a capacity to undertake independent research and to maintain a credible claim to independence, this is a big problem. Not everyone is in a position to write a presignation letter like that of Julian Sanchez, but the alternative of staying on is not particularly attractive either.

 

fn1. Which I will claim as an excuse for posting this several weeks after the event

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