Archive for the ‘economics’ Category

Effects of taxing and spending

Sunday, May 13th, 2012

Back in 2009 Alesina and Ardagna did a survey of the effects of large changes in fiscal policy.

Unsurprisingly they found that large revenue increases seldom increased revenue, indicating that most governments and most taxes are near their Laffer maximum, and that spending increases were not very stimulatory. Indeed often spending cuts stimulated the economy, which suggests that at the margin government spending is of negative absolute value, not just negative net value – that people would be better off if the money was spent blowing stuff up in distant lands.

This shows that supply side effects of large changes in fiscal policy substantially outweigh demand side effects. (more…)

The Laffer Curve

Monday, April 30th, 2012

Let us suppose you are a smart ambitious guy, and have a big idea that you think can change the world, and make a great big pile of money. You run your idea before some angel investors, and they think it is worth a shot. So you, and they, form yourselves into a class C corporation. You are probably pretty well off, and they are probably really well off, so you are paying the maximum tax rate. (more…)

Nazism descends from Lutheranism

Sunday, April 29th, 2012

Just as progressivism, (by which I mean anglosphere mainstream leftism) descends from the Puritans, via the infamous and conspiratorial Exeter Hall, the Acorn of its day, and “super protestantism”, looks like Nazism is descended from Lutheranism.

The apple does not fall far from the tree. Lutherans hated Jews, Puritans hated Christmas and men having sex with women. (more…)

Not the cognitive elite

Tuesday, April 24th, 2012

The immensely well paid staff of the World Bank issued a pile of nonsense about European financial problems in which they kept calling a positive feedback loop a negative feedback loop. Obama’s speechwriters issued an equally stupid speech to their black mascot in which they called the Falkland Islands the Maldives. (more…)

conservatives are not the only people losing faith in official science

Sunday, April 1st, 2012

Amgen, the worlds largest independent biotech firm, ran a replication survey on fifty three widely cited landmark cancer research papers.  Only six were replicable.

If conservatives are losing faith in official science, maybe that is an indicator that conservatives are in contact with reality.

Photoshopping Trayvon

Wednesday, March 28th, 2012

The mainstream media have applied the magic of photoshop to convert Trayvon Martin from a menacing thug who needed killing to a sweet innocent child.

Photoshop job

Photoshop job

Eyes enlarged to reduce apparent age.  Nose reduced for cuteness.  Chinline on viewer right of image altered to reduce apparent age.  Hairline raised for larger forehead, to reduce apparent age and give a more intelligent and gentle appearance.  Facial hair reduction to reduce apparent age.

Mouth redrawn for gentle instead of menacing expression.

There are photoshop artifacts on the jawline and the mouth of the child image, revealing that the thug is the original image, and the child the photoshopped image.

George Zimmerman, Trayvon Martin

Wednesday, March 28th, 2012

According to George Zimmerman, he turned his back on Trayvon Martin and was walking away, whereupon Trayvon Martin chimped out and attacked him from rear left.  Circumstantial evidence supports this story, (for starters, there is no way a man like George Zimmerman is going to physically attack a man like Trayvon Martin with his fists) and there are no eyewitnesses contradicting it.

According to George Zimmerman and eyewitnesses, Zimmerman wound up on the ground, screaming for help, while Trayvon Martin pinned him down and continued to beat the $%@! out of him.

Imagine you are on the ground, with a big black male on top of you, not the photoshopped cherubic little boy the government media are depicting, but a big black male dressed in gang clothing, and that black is pounding away. What are you going to do? (more…)

Why the elite is dumb and getting dumber

Tuesday, March 20th, 2012

When recruiting people for administration, administrators very reasonably look for past experience on the administration track. To him that has shall be given, to him that has not, even what little he has shall be taken away. However success at the lowest levels of the administration track is at best a poor indicator of intelligence, and in government, and in large schlerotic organizations choked on red tape, is a strong negative indicator of intelligence. Dumb people thrive in an environment where there are lots of committees, and lots of time is spent attending meetings.

This is a big problem with businesses that are immune from market pressures, businesses that like General Motors are too big to fail, with universities, and of course, with the biggest business of them all:  Government.  Professors of resentment studies are stupid.  Government employees in management positions in the governing apparatus are really stupid, and are even more fireproof than professors of resentment studies.

Three cases that should be studied: The Challenger disaster, Washington Mutual, and Countrywide, where demonstrably stupid people were given power, catastrophically fouled up, and got into trouble for so doing.  These are not the most stupid people of course, they are just the most stupid people doing stuff where stupidity can get you into trouble.  In most areas of government, stupidity, such as letting the 9/11 hijackers do obviously suspicious stuff, will get you promoted.  And no one can foul up resentment studies, even when resentment coursework leads to race hate gang rapes on campus.  Recall that the Major Hasan case was supposedly not a tragedy because Hasan murdered a bunch of people.  It was supposedly a tragedy because it might cause people to doubt that affirmative actioning Muslims into militarily sensitive positions of power was a good idea. (more…)

Technological decay

Monday, March 19th, 2012

Earlier I argued that technology in the west peaked in 1970, Tallest building 1972, coolest muscle cars, last man left the moon,though it continues to advance in some other parts of the world:

Unreasonable expectations points at another indicator. The most advanced plane ever built, the SR71, was built in 1966, retired 1972. One would have expected stealthed mach three fighters and bombers to replace it, but instead, slower, lower performance stealthed fighters and bombers replaced it. Unreasonable expectations argues that all advances since then have been driven solely by advances in photolithography, and that when photolithography runs out, technological advance will end.

A number of posts have appeared by a number of people reporting slowing in technology, or actual decline in the level of technology: See Locklin for a summary and review.

I would instead predict that technological advance in the west will end. I see new technologies, such as the blue light semiconductor laser, which makes possible modern DVDs, e-ink, which made possible the kindle, and new construction methods for very large buildings, which make possible the remarkably cool asian airports, continuing to appear in Asia.

Oslo cityscape

Shanghai cityscape

Shanghai cityscape

You can see where the future is being made. The Oslo cityscape looks as though it should be in sepia, for the nineteenth century look – similarly when you google up street scenes from Europe and the US and compare them with equivalent street scenes from China.

In the 1930s, they imagined the world of tomorrow would look shiny and futuristic. It does look that way, but not in the west.

What is causing it?

Contrary to Charles Murray, it looks to me that our elite is less and less elite, less and less selected for ability, creativity, and intelligence, that it is now primarily selected for conformity and political correctness, and secondarily selected for race and gender, and thus excludes the person who is smarter than those around him, who tends to have difficulty conforming, and is apt to show signs of noticing the more illogical aspects of the holy faith. You observe a lot more women in today’s ruling elite, and women are noticeably less intelligent and logical, less capable of comprehending or advancing technology, and the smartest women are considerably less smart than the smartest men. There are no great female composers, despite the fact that women have been very strongly encouraged to go into music for several hundred years. There are no great female scientists, Marie Curie being a completely faked up poster girl and an affirmative action Nobel prize. So when you see lots of females in the elite, you are simply going to see less technology. You are going to see the really smart man (and he always is a man) simply have lower status and less time and resources to accomplish stuff.

If you read up on the challenger disaster, it is pretty obvious that the people making the decisions were just stupid, and engineers under them were markedly smarter.   Mulloy simply did not understand Lund’s presentation.  And because the bosses were just too dimwitted, the space shuttle fell out of the sky.  Further, the reason Lund was low status and Mulloy was  high status is because Mulloy was stupid enough to fit in with the elite, while Lund was just too smart to fit in.

Reading old books, it looks to me that in the US, selection on the basis of ability maxed in 1870 if we suppose breeding counts, and if we instead suppose that the college board test (which later became the SAT) is vastly more predictive than breeding, so that breeding should be completely and totally disregarded, then it looks to me that selection on the basis of ability maxed in 1910, when they started to worry more about the fact that high scorers tended to be affluent white males, than whether the exam accurately measured ability to benefit from the kind of material taught at college.

Ever since then, since 1870 or 1910, depending on how reactionary you are, our elite has just been getting dumber and dumber, hence, technological decline.

Why “free” is so expensive

Friday, March 9th, 2012

If you are your own money on yourself, you care very much how much it costs, and care very much how good what you get is. If you are spending someone else’s money on someone else, aka “free”, you don’t care how much it costs, and you don’t care if it does the recipient good or does him harm.

“What if” has found an interesting example of “free”

Seems that the government budgeted eleven million dollars to provide free interview suits for four hundred job seekers, a cost of a mere thirty thousand dollars per job seeker, which expenditure was considered perfectly reasonable, proper, and legitimate. Ordinarily such a small, reasonable, and modest expenditure would not attract anyone’s attention, even though very nice suits cost only a few hundred. (more…)