More interested in feeling good than doing good.

How do you contribute to charity? Is it really the optimal choice to make?

... the way we choose to dole out cash betrays our true motives. Someone with ₤50 to give away and a world full of worthy causes should choose the worthiest and write the cheque. We don’t. Instead, we give ₤2 to the street collector for Save the Children, pledge ₤15 to Comic Relief, another ₤15 to Aids research, and so on. But ₤15 is not going to find a cure for Aids. Either it is the best cause and deserves the entire ₤50, or it is not and some other cause does. The scattergun approach simply proves that we’re more interested in feeling good than doing good.

None of this is to say that these contributions are worthless nor economically insignificant. Just don’t get too starry-eyed about the motives behind them.

Made in Japan

Wars allowed for the rapid adoption of interchangeable parts (guns for Napolean), electrification (WW1 factories) and containerization (Vietnam military supplies), collectively creating the wealth of the Western World.

... during the Vietnam war ... as early as 1965 the military build-up was being hampered by what the journalist Marc Levinson calls “the greatest logistical mess in the history of the US armed forces”. In The Box, Levinson’s new book about the shipping container, he argues that container shipping provided the answer. Once the military was sold on the idea, there were two swift consequences: a dramatic expansion of container shipping to US forces in Europe, and fleets of empty ships sailing back from Vietnam, offering cheap rates to the rapidly expanding Japanese manufacturers. The rest is history.

Too busy to...

Excerpts from an article on why people no longer do the simple things in life -- cook, tend the garden, or even walk the dog:

Personal value systems ... can guide a person's decisions as much as monetary measures can. A simple stir-fry dinner ... comes in one of two ways: ready-made or made from scratch. Though the ready-made meal might cost more, someone who earns $30 an hour might not mind coughing up an extra $5 (about ten minutes' worth of wages) to save ten minutes of preparation time in the kitchen. That person might value convenience more than culinary prowess.

Everything is just another chore to be finished ASAP. No one has time to stop, stand and stare.

How to start a war?

A quote from Hermann Goering, Hitler’s Reichsmarshall:

“Why, of course, the ‘people’ don't want war. Why would some poor slob on a farm want to risk his life in a war when the best that he can get out of it is to come back to his farm in one piece. Naturally, the common people don't want war; neither in Russia nor in England nor in America, nor for that matter in Germany. That is understood. But, after all, it is the leaders of the country who determine the policy and it is always a simple matter to drag the people along, whether it is a democracy or a fascist dictatorship or a Parliament or a Communist dictatorship…. The people can always be brought to the bidding of the leaders. That is easy. All you have to do is tell them they are being attacked and denounce the pacifists for lack of patriotism and exposing the country to danger. It works the same way in any country.”

Three Interesting methods to start a war (scroll down to Feb 13, 2007):
(1) The FDR way of manipulation (Japan)
(2) The LBJ way of forgery (Vietnam)
(3) The GWB way of invasion (Iraq)

Eat food. Not too much. Mostly plants.

The New York Times Magazine reports that healthy food is good for you. That the food lobby would rather have you eat "nutrients" than eat wholesome food.

D'oh!

The amazing power of gubernatorial veto

Gov. Jim Doyle used his partial veto 139 times to shape the state budget to his liking. Among his moves was to increase a transfer from the transportation account to the general fund from $268 million to $427 million. To do so, he crossed out hundreds of words, stringing together individual words from unrelated sentences to write a new sentence. To get the $427 million figure, he took individual digits from five sets of numbers.

See pages 373-374 of 2005 Wisconsin Act 25.

Inequity in wealth distribution

Excerpt from article on the Gini coefficient:

In their study for the World Institute for Development Economics Research, Giovanni Andrea Cornia and Julius Court (2001) reach policy conclusions as to the optimal distribution of wealth. The authors recommend to pursue moderation also as to the distribution of wealth and particularly to avoid the extremes. Both very high egalitarianism and very high inequality cause slow growth. Extreme egalitarianism leads to incentive-traps, free-riding, high operation costs and corruption in the redistribution system, all reducing a country's growth potential.

However, extreme inequality also diminishes growth potential by eroding social cohesion, and increasing social unrest and social conflict, causing uncertainty of property rights. Therefore, public policy should target an 'efficient inequality range'. The authors claim that such efficiency range lies between the values of the Gini coefficients of 0.25 (the inequality value of a typical Northern European country) and 0.40 (slightly lower than that of countries such as China and the USA). The precise shape of the inequality-growth relationship depicted in the Chart obviously varies across countries depending upon their resource endowment, history, remaining levels of absolute poverty and available stock of social programs, as well as on the distribution of physical and human capital.

Internet and adult entertainment.

An interesting excerpt from a PBS Frontline interview:

Clearly one of the main reasons initially for getting on the Internet was sex. If you look at the words almost any one of the Internet suppliers has kept track of, you'll find that "sex" is probably the most frequent word used as they look for programming of any sort. So clearly, there is a desire to see it.

I think what Yahoo did was go one step beyond and say, "OK, my customers want to see sex. I'll make it easier for them, and I'll categorize it." And I think what they realized afterward was that they were taking a far more active role in supplying this programming than just making it available. "Here's bestiality, here's whips and chains, here's whatever." That was going into probably more active participation by Yahoo than they really wanted to do.

Prayers don't help heart surgery patients.

An excerpt from research on intercessory prayer by Harvard's Herbert Benson:

In a clear setback for those who believe in the power of prayer, their prayers were not answered. Prayers offered by strangers did not reduce the medical complications of major heart surgery. Not only that, but patients who knew that others were praying for them fared worse than those who did not receive such spiritual support, or who did but were not aware of receiving it.

Prayer is an illusion -- a video comparing the impact of praying to God versus praying to a jug of milk.

Patels

Excerpts from an interesting article on how the Patels from India took over more than half the room and board industry in the United States.

In the mid-1970's, Patels from Africa and Asia began to emigrate to North America. Any immigrant willing to invest $40,000 in a business could apply for permanent residence, the first step to citizenship. There were limited opportunities for such an investment. Restaurants required the Hindu Gujaratis to handle meat, an uncomfortable activity. Furthermore, a restaurant required one-on-one interaction with guests, confusing for newly-arrived immigrants. But distressed roadside motels could be acquired outright for $40,000.

Human Rights

Communist and dictatorial regimes have poor human rights records -- Stalin, Mao, Saddam Hussein; Tiananmen Square.

But do democracies fares much better?
Two invasions of the Middle East were conducted by the world's most powerful democracy, which went on to flagrantly violate the Geneva Convention on treatment of prisoners of war domestically and internationally.
The world's most populous democracy fares no better.
Even Hitler was, to a certain extent, democratically elected.

What does this portend? Perhaps that human rights violations will continue as long as large powerful central states exist, whether democratic or not.

Democracy does not work in multi-ethnic societies...

Democracy cannot work in a multi-ethnic society, so says the Paradox of Imperialism. An excerpt:

[T]he result of the [World War I] crusade to make the world safe for democracy was less liberal than what had existed before (and the Versailles peace dictate precipitated World War II). Not only did state power grow faster after the war than before. In particular, the treatment of minorities deteriorated in the democratized post–World War I period. In newly founded Czechoslovakia, for instance, the Germans were systematically mistreated (until they were finally expelled by the millions and butchered by the tens of thousands after World War II) by the majority Czechs. Nothing remotely comparable had happened to the Czechs during the previous Habsburg reign. The situation regarding the relations between Germans and southern Slavs in pre-war Austria versus post-war Yugoslavia respectively was similar.

Nor was this a fluke. As under the Habsburg monarchy in Austria, for instance, minorities had also been treated fairly well under the Ottomans. However, when the multicultural Ottoman Empire disintegrated in the course of the 19th century and was replaced by semi-democratic nation-states such as Greece, Bulgaria, etc., the existing Ottoman Muslims were expelled or exterminated. Similarly, after democracy had triumphed in the United States with the military conquest of the Southern Confederacy, the Union government quickly proceeded to exterminate the Plains Indians. As Mises had recognized, democracy does not work in multi-ethnic societies. It does not create peace but promotes conflict and has potentially genocidal tendencies.

Order from Anarchy

From chaos arises order, as seven European Cities do away with Traffic Signs in an experiment to see whether people can self-organize their interaction with others:

"The many rules strip us of the most important thing: the ability to be considerate. We're losing our capacity for socially responsible behavior," says Dutch traffic guru Hans Monderman, one of the project's co-founders. "The greater the number of prescriptions, the more people's sense of personal responsibility dwindles." ... Psychologists have long revealed the senselessness of such exaggerated regulation. About 70 percent of traffic signs are ignored by drivers. What's more, the glut of prohibitions is tantamount to treating the driver like a child and it also foments resentment. He may stop in front of the crosswalk, but that only makes him feel justified in preventing pedestrians from crossing the street on every other occasion. Every traffic light baits him with the promise of making it over the crossing while the light is still yellow.

Creativity, innovation and sharing of ideas.

Excepts from an interesting article (Protecting the Golden Goose by Pamela Jones of groklaw) on the clash between the long-term objectives of freedom and the greed of short-term-oriented businesses:

• Compatibility is a bedrock [Free and Open Source Software] value, but it goes against corporate thinking. Corporations want to differentiate and lock in customers [through incompatibility].
  
• Corporations will naturally be reluctant to share knowledge. Whether it's for competitive reasons, for confidentiality, or most probably, due to time pressure, it appears to me that the flow of testing results and the promptness of getting fixes out to the rest of the world is slowing down a bit.
• Regressions [to isolationism]: Creativity inevitably springs from large numbers of people experimenting, combined with a low barrier to entry to sharing and contributing. Those are essential ingredients in Linux's success.
• In code, progress is incremental. [IP] laws that seek ... to keep knowledge out of the pool ... end up [creating] a barrier to learning, preventing the rapid progress you could have had from pooling ideas and skills.

The economics of divorce

Hmm.

Miracles: How did the sea part?

Many religions mention a miracle of the sea parting to make way for someone to escape from their captors. This article explains the Old Testament's "crossing of the Red Sea". An excerpt:

Many years ago Aristotle wrote about miracles and he said that the “efficient cause” of a miracle could be a natural agent, with the “final cause” being the will of God. The miracle is revealed by the extraordinary timing of the event. I believe that the “efficient cause” in many of the Exodus miracles was a natural agent (a porous rock, a strong wind, a volcano, etc.) and that science can discover this natural agent and give the mechanism of the miracle. Indeed, as we have seen, the Bible is explicit that the crossing of the Red Sea was enabled by a natural agent, a strong east wind.

Teamwork

Excerpt from a recent blog post advising geek entrepreneurs:

One of the ironies of the programming world is that using Lisp is vastly more productive than using pretty much any other programming language, but successful businesses based on Lisp are quite rare. The reason for this, I think, is that Lisp allows you to be so productive that a single person can get things done without having to work together with anyone else, and so Lisp programmers never develop the social skills needed to work effectively as a member of a team. A C programmer, by contrast, can't do anything useful except as a member of a team. So although programming in C hobbles you in some ways, it forces you to form groups whose net effectiveness is greater than the sum of their parts, and who collectively can stomp on all the individual Lisp programmers out there, even though one-on-one a Lisper can run rings around a C programmer.

How governments accumulate power

I came across this description recently.

The Chicago School of economics favored and still favors the theory of "regulatory capture." Under this theory, an industry or some portions of an industry cultivate government to obtain laws and rules that favor the industry.

The government trades favors for what it wants. Politicians gain political contributions, side payments, and votes for being seen to control the industry. The industry captures the regulators. End of story.

[Gary North] called the first step of obtaining favors "baiting the trap." But matters do not stop there, he pointed out. The trap is set when the industry becomes comfortable with its subsidy, tax break, tariff, exclusive position, license, or whatever. It then begins to extract monopoly rents and to lower product quality.

This then leads to further steps such as public outcry and a government demand for the industry to police itself. Then come crisis, further regulatory intervention, and eventually a government stranglehold over the entire industry via a panoply of boards and price controls. This is when the trap is sprung. The market is replaced by government power and bureaucrats. Government, its aim being control, traps and captures the industry.

In the shorter term, the interest groups use the state against the public. In the longer term, the state and its bureaucrats rule the roost. In the end, the government bureaucracies expand. Paperwork and soft jobs rule the industry, innovation and competition are eclipsed, and the public suffers from poor product quality and high prices.

This summarizes the argument made in "Walking into a Trap", an essay by Gary North, that originally appeared in 1978 in The Freeman, on the threat to American medicine posed by the State.

Internet pollution

Spyware, parasites and unscrupulous search engines that encourage the creation of bogus websites for Click Fraud are increasingly polluting the web.

Download this list of hosts, read the instructions and modify your PC settings to prevent this internet pollution. No more recycled ads on third party websites. Goodbye, cookie trackers!

Why are you satisfied?

Comcast called me yesterday for a customer satisfaction survey. I think they know via cable box that I have not connected my TV or watched any channels so they are calling me every two days to ask if I am happy. When I told her I was "satisfied, rating 5 on 5" she asked me: "Why are you satisfied?" That was a new one. I had to say "I am satisfied because I am not unsatisfied."

Opens up a Pandora's box of vexing philosophical issues.

Apparently this is not so uncommon.