That is the title of Francis Fukuyama’s latest book. I have started reading it. So far, I would summarize it as saying that government must overcome both market failure and government failure. That is, it needs to be effective at providing public goods while serving everyone equally (not succumbing to the problems of public choice). I might summarize this as follows:
|Public Goods Provided||Public Goods Not Provided|
|Treats People Equally||good government||weak government|
|Privileges Elites||crony government||predatory government|
Think of Denmark as good government, China as crony government, Zaire under Mobutu as predatory government, and Afghanistan as weak government. I assume that “political decay” will mean the movement from good government toward either weak government or crony government.
For a review by someone who has finished the book, see Michael Barone.
When Google wants to create its Street View maps — the ones that show the buildings and sidewalks that line the world's streets — it sends a funny-looking car with a camera on top off to capture the footage.
Those StreetView cars work great in places where there are roads. But in the world's more remote locations — a desert in Abu Dhabi, lets say — vehicles don't cut it. Enter Raffia, the camel carrying a camera across the Liwa oasis to produce more Google Maps.
Of course, the camel carrying a camera is not an everyday sight. But whats more striking about the video is the sheer size of the Liwa Oasis, an expansive stretch of desert that runs along the Persian Gulf.
This is a somewhat surreal video of Raffia, with her guide, in action.
You can see the results of Raffia's work on the Google Treks site, replete with many more camels who were not carrying cameras.
Online education continues to expand rapidly:
WASHINGTON—Saying the option is revolutionizing the way the nation’s 3- and 4-year-olds prepare for the grade school years ahead, a Department of Education report released Thursday confirmed that an increasing number of U.S. toddlers are now attending online preschool. “We found that a growing number of American toddlers are eschewing the traditional brick-and-mortar preschools in favor of sitting down in front of a computer screen for four hours a day and furthering their early psychosocial development in a virtual environment,” said the report’s author, Dr. Stephen Forrest, who said that the affordability and flexibility characteristic of online pre-primary education are what make the option most appealing, allowing young children to learn their shapes and colors on a schedule that works best for them. “With access to their Show-And-Tell message boards, recess timers, and live webcams of class turtle tanks, most toddlers are finding that they can receive the same experience of traditional preschooling from the comfort of their parents’ living room or home office. In addition, most cited the ability to listen to their teacher’s recordings of story time at their own pace as a significant benefit of choosing an online nursery school.” Forrest added that, despite their increasing popularity, many parents remain unconvinced that online preschools provide the same academic benefits as actually hearing an instructor name farm animals and imitate their noises in person.
30% of Americans don't drink any alcohol during a typical week. On the other end of the scale, ten percent of Americans consume more than 10 drinks every single day. More from Wonkblog.
I double-checked these figures with Cook, just to make sure I wasn't reading them wrong. "I agree that it's hard to imagine consuming 10 drinks a day," he told me. But, "there are a remarkable number of people who drink a couple of six packs a day, or a pint of whiskey."
As Cook notes in his book, the top 10 percent of drinkers account for well over half of the alcohol consumed in any given year. On the other hand, people in the bottom three deciles don't drink at all, and even the median consumption among those who do drink is just three beverages per week.
This is shocking to me. I wonder what the distribution is within the top 10%...there must be people in the top 1% who drink, what, 30 drinks per day? Is that even possible day after day without very serious consequences? (via mr)
Update: Over at Forbes, Trevor Butterworth casts doubt on the conclusions in the Wonkblog article.
The source for this figure is "Paying the Tab," by Phillip J. Cook, which was published in 2007. If we look at the section where he arrives at this calculation, and go to the footnote, we find that he used data from 2001-2002 from NESARC, the National Institute on Alcohol Abuse and Alcoholism, which had a representative sample of 43,093 adults over the age of 18. But following this footnote, we find that Cook corrected these data for under-reporting by multiplying the number of drinks each respondent claimed they had drunk by 1.97 in order to comport with the previous year's sales data for alcohol in the US. Why? It turns out that alcohol sales in the US in 2000 were double what NESARC's respondents -- a nationally representative sample, remember -- claimed to have drunk.
Additionally, the statement I made above -- "ten percent of Americans consume more than 10 drinks every single day" -- is not true, even if the data is correct. Instead, it is accurate to say that top 10% consumes an average of 10 drinks daily...some individuals may drink 4/day and some 18/day. Looks like it's time for a reread of How to Lie with Statistics and A Mathematician Reads the Newspaper. (via @harryh & @gfilpus)Tags: alcohol food
A case study in how quickly incentives can warp the rule of law.
Hat tip: Daniel Lippman.
In 1960, 5 percent of Republicans and 4 percent of Democrats said that they would feel “displeased” if their son or daughter married outside their political party. By 2010, those numbers had reached 49 percent and 33 percent. Republicans have been found to like Democrats less than they like people on welfare or gays and lesbians. Democrats dislike Republicans more than they dislike big business.
To test for political prejudice, Shanto Iyengar and Sean Westwood, political scientists at Stanford University, conducted a large-scale implicit association test with 2,000 adults. They found people’s political bias to be much larger than their racial bias. When Democrats see “joy,” it’s much easier for them to click on a corner that says “Democratic” and “good” than on one that says “Republican” and “good.”
To find out whether such attitudes predict behavior, Iyengar and Westwood undertook a follow-up study. They asked more than 1,000 people to look at the resumes of several high-school seniors and say which ones should be awarded a scholarship. Some of these resumes contained racial cues (“president of the African American Student Association”) while others had political ones (“president of the Young Republicans”).
Race mattered. African-American participants preferred the African-American candidates 73 percent to 27 percent. Whites showed a modest preference for African-American candidates, as well, though by a significantly smaller margin. But partisanship made a much bigger difference. Both Democrats and Republicans selected their in-party candidate about 80 percent of the time.
That is from Cass Sunstein.
Seriously, has no one heard of the EMH?
Why should trading be the province of humans only?:
One project is Michael Marcovici’s Rat Trader. The book describes the training of laboratory rats to trade in foreign exchange and commodity futures markets. Marcovici says the rats “outperformed some of the world’s leading human fund managers.” The rats were trained to press a red or green button to give buy or sell signals, after listening to ticker tape movements represented as sounds. If they called the market right they were fed, if they called it wrong they got a small electric shock. Male and female rats performed equally well. The second generation of rattraders, cross-bred from the best performers in the first generation, appeared to have even better performance, although this is a preliminary result, according to the text. Marcovici’s plan, he writes, is to breed enough of them to set up a hedge fund.
I don’t myself like the electric shock idea, but there you go. That is from Diane Coyle, and for the pointer I thank Michael Gibson.
Letting someone get a job is not a kind of charity. It’s not a welfare program. It’s just the government leaving people alone to go and make something out of their lives. When most people are on earth are dealt such a bad hand, to try to stop them from bettering their condition seems a very cruel thing to do to someone.
My elevator pitch has no economics in it, because the economics is actually too subtle to really explain in an elevator pitch. If I had a little bit more time, I would say, “What do you think the effects for men have been of more women in the workforce?”
Are there some men who are worse off? Sure. But would we really be a richer society if we kept half the population stuck at home? Isn’t it better to take people who have useful skills and let them do something with it, than to just keep them locked up someplace where their skills go to waste?
Isn’t that not just better for them, but better for people in general, if we allow people to use their skills to contribute to the world instead of keeping them shut up someplace where they just twiddle their thumbs or do subsistence agriculture or whatever?
On the economics, David Roodman has a characteristically careful and comprehensive review written for Givewell of the evidence on the effect of immigration on native wages. He writes, “the available evidence paints a fairly consistent and plausible picture”:
Plaudits are due to Givewell. While others are focused on giving cows, Givewell is going after the really big gains.
the wealthy are paying for status (and perhaps peer effects) more so than they are paying for educational programming.
Schools respond when people pay for status: we get beautiful buildings, wonderful extracurriculars, and a lot of social events.
Of course, these things don’t spread to all schools because they involve costly goods rather than innovations in instruction.
So instead of the wealthy subsidizing the early adoption of innovation, the reverse seems more likely true: it’s the practices of urban charter schools (Teach Like A Champion, Leveraged Leadership, blended learning, etc.) that will end up spreading to the suburbs.
Read the whole thing. If elite schools are status goods, then it will be difficult to dislodge them from their perches–until it becomes easy. I have suggested before that you could see a very rapid “tipping” away from elite schools. Once enough parents decide that there are other ways to achieve parenting status than sending kids to erstwhile elite schools, the elite schools collapse.
Tighter FDA restrictions are keeping some classic French cheeses (Roquefort, Morbier, Tomme de Savoie) out of the US and even some American cheese makers are halting production of their cheeses because they're afraid their products won't meet the new standards.
In early August, these cheeses and many more landed on an FDA Import Alert because the agency found bacterial counts that exceeded its tolerance level. Cheeses on Import Alert can't be sold in the U.S. until the producer documents corrective action and five samples test clean, a process that can take months.
Of course, French creameries haven't changed their recipes for any of these classic cheeses. But their wheels are flunking now because the FDA has drastically cut allowances for a typically harmless bacterium by a factor of 10.
Even Parmigiano-Reggiano might be threatened by the new restrictions. Ridiculous.Tags: cheese FDA food
A Reason-Rupee poll asked
Do you think all kids who play sports should receive a trophy for their participation, or should only the winning players be awarded trophies?
Overall, an estimated 57% Americans said that only the winning players should be awarded trophies but there were big differences according to gender, race, politics, education and income. 62% of men, for example, said that only the winning players should be awarded trophies compared to 52% of women. These results are consistent with experiments in which women tend to shy away from competition (perhaps with long-run consequences in the workforce). Whites opt for trophies to the winners-only at 63% compared to African Americans at just 44% and Hispanics at 39%. A whopping 80% of libertarians say that trophies should go only to the winners compared to conservatives at 63% and liberals and progressives both at 53%. More educated respondents were more likely to opt for trophies for only the winners. Trophies for the winners also increased strongly in income which could be because people with high income feel that they are winners or perhaps because people with high incomes are the types of people who enjoy competition.
Note that these are raw differences not betas from a statistical regression and since income, race, education etc. aren’t independent we don’t know which are the most controlling although the results point in directions consistent with other evidence. The data can be found here.
In light of the ongoing policing situation in Ferguson, Missouri in the wake of the shooting of an unarmed man by a police officer and how the response to the community protests is highlighting the militarization of US police departments since 9/11, it's instructive to look at one of the first and most successful attempts at the formation of a professional police force.
The UK Parliament passed the first Metropolitan Police Act in 1829. The act was introduced by Home Secretary Sir Robert Peel, who undertook a study of crime and policing, which resulted in his belief that the keys to building an effective police force were to 1) make it professional (most prior policing had been volunteer in nature); 2) organize as a civilian force, not as a paramilitary force; and 3) make the police accountable to the public. The Metropolitan Police, whose officers were referred to as "bobbies" after Peel, was extremely successful and became the model for the modern urban police force, both in the UK and around the world, including in the United States.
At the heart of the Metropolitan Police's charter were a set of rules either written by Peel or drawn up at some later date by the two founding Commissioners: The Nine Principles of Policing. They are as follows:
1. To prevent crime and disorder, as an alternative to their repression by military force and severity of legal punishment.
2. To recognise always that the power of the police to fulfil their functions and duties is dependent on public approval of their existence, actions and behaviour, and on their ability to secure and maintain public respect.
3. To recognise always that to secure and maintain the respect and approval of the public means also the securing of the willing co-operation of the public in the task of securing observance of laws.
4. To recognise always that the extent to which the co-operation of the public can be secured diminishes proportionately the necessity of the use of physical force and compulsion for achieving police objectives.
5. To seek and preserve public favour, not by pandering to public opinion, but by constantly demonstrating absolutely impartial service to law, in complete independence of policy, and without regard to the justice or injustice of the substance of individual laws, by ready offering of individual service and friendship to all members of the public without regard to their wealth or social standing, by ready exercise of courtesy and friendly good humour, and by ready offering of individual sacrifice in protecting and preserving life.
6. To use physical force only when the exercise of persuasion, advice and warning is found to be insufficient to obtain public co-operation to an extent necessary to secure observance of law or to restore order, and to use only the minimum degree of physical force which is necessary on any particular occasion for achieving a police objective.
7. To maintain at all times a relationship with the public that gives reality to the historic tradition that the police are the public and that the public are the police, the police being only members of the public who are paid to give full-time attention to duties which are incumbent on every citizen in the interests of community welfare and existence.
8. To recognise always the need for strict adherence to police-executive functions, and to refrain from even seeming to usurp the powers of the judiciary of avenging individuals or the State, and of authoritatively judging guilt and punishing the guilty.
9. To recognise always that the test of police efficiency is the absence of crime and disorder, and not the visible evidence of police action in dealing with them.
As police historian Charles Reith noted in 1956, this philosophy was radical when implemented in London in the 1830s and "unique in history and throughout the world because it derived not from fear but almost exclusively from public co-operation with the police, induced by them designedly by behaviour which secures and maintains for them the approval, respect and affection of the public". Apparently, it remains radical in the United States in 2014. (thx, peter)Tags: crime Ferguson legal lists London Robert Peel UK
This video combines two thoughts to reach an alarming conclusion: "Technology gets better, cheaper, and faster at a rate biology can't match" + "Economics always wins" = "Automation is inevitable."
That's why it's important to emphasize again this stuff isn't science fiction. The robots are here right now. There is a terrifying amount of working automation in labs and warehouses that is proof of concept.
We have been through economic revolutions before, but the robot revolution is different.
Horses aren't unemployed now because they got lazy as a species, they're unemployable. There's little work a horse can do that pays for its housing and hay.
And many bright, perfectly capable humans will find themselves the new horse: unemployable through no fault of their own.
(via waxy)Tags: robots video
From my review today in the WSJ of Innovation Breakdown by Joseph Gulfo:
Yo is a smartphone app. MelaFind is a medical device. Yo sends one meaningless message: “Yo!” MelaFind tells you: “biopsy this and don’t biopsy that.” MelaFind saves lives. Yo does not. Guess which firm found it easier to put their product in consumers hands? Oy.
In “Innovation Breakdown: How the FDA and Wall Street Cripple Medical Advances,” Joseph Gulfo tells the tumultuous history of MELA Sciences, the company that invented MelaFind. When Dr. Gulfo joined the firm as president and CEO in 2004, the company’s brilliant team of scientists had spent many years and tens of millions of dollars to develop MelaFind, a “camera with a brain”—optical technology that would scan potential melanomas in multiple spectra and then, using sophisticated algorithms and large datasets, diagnose which were most likely to be cancerous.
MELA Sciences conducts an extensive clinical trial according to a protocol agreed on by the FDA and all looks good. After the clinical trial is completed, however, the FDA backs away from the protocol and comes out against MelaFind.
…The title of Dr. Gulfo’s book is “Innovation Breakdown” but “Innovator’s Breakdown” might have been more apt. The letter sent the author into survival mode. He battled the FDA, calmed investors, and defended against the lawsuit all while trying to keep the company afloat. Under stress, Dr. Gulfo’s health began to decline: He lost 29 pounds, his hair began to fall out, and the pain in his gut became so intense he needed an endoscopy. When his wife begged him to quit, he refused. They turned into roommates. “We were nothing more than cordial. I basically shut my wife out of my life,” he writes.
…The climax to this medical thriller comes when, in “the greatest 15 minutes of [his] life,” Dr. Gulfo delivers an impassioned speech, à la “Twelve Angry Men,” to the FDA’s advisory committee. The committee voted for approval, 8 to 7, and, perhaps with the congressional hearing in mind, the FDA approved MelaFind in September 2011.
It was a major triumph for the company, but Dr. Gulfo was beat. He retired from the company in June 2013—just in time to save his marriage.
Yet remarkably, given his experience, Mr. Gulfo writes that he still believes in a strong FDA. He argues in the book that better “leadership” and a few tweaks to existing rules can fix the problem. He’s wrong.
Compare MelaFind’s experience in the U.S. with its reception in Europe: MelaFind was submitted for marketing approval in Europe in May 2011. It was approved just five months later. One key reason for Europe’s efficient approval process is that European governments don’t review medical devices directly. Instead they certify independent “notified bodies” that specialize and compete to review new products. The European system works more quickly than the U.S. system, and there is no evidence that it results in reduced patient safety. Rather than tweak the current system, why doesn’t the U.S. just adopt the European model and call it a day? Our health and our economy would be better off for it.
Google’s Sergey Brin recently said that he didn’t want to be a health entrepreneur because “It’s just a painful business to be in . . . the regulatory burden in the U.S. is so high that I think it would dissuade a lot of entrepreneurs.” Mr. Brin won’t find anything in Dr. Gulfo’s book to persuade him otherwise. Until we get our regulatory system in order, expect a lot more Yo’s and not enough life-saving innovations.
From Becker, Philipson, and Soares (pdf):
GDP per capita is usually used to proxy for the quality of life of individuals living in different countries. Welfare is also affected by quantity of life, however, as represented by longevity. This paper incorporates longevity into an overall assessment of the evolution of cross-country inequality and shows that it is quantitatively important. The absence of reduction in cross-country inequality up to the 1990s documented in previous work is in stark contrast to the reduction in inequality after incorporating gains in longevity. Throughout the post–World War II period, health contributed to reduce significantly welfare inequality across countries. This paper derives valuation formulas for infra-marginal changes in longevity and computes a “full” growth rate that incorporates the gains in health experienced by 96 countries for the period between 1960 and 2000. Incorporating longevity gains changes traditional results; countries starting with lower income tended to grow faster than countries starting with higher income. We estimate an average yearly growth in “full income” of 4.1 percent for the poorest 50 percent of countries in 1960, of which 1.7 percentage points are due to health, as opposed to a growth of 2.6 percent for the richest 50 percent of countries, of which only 0.4 percentage points are due to health. Additionally, we decompose changes in life expectancy into changes attributable to 13 broad groups of causes of death and three age groups. We show that mortality from infectious, respiratory, and digestive diseases, congenital, perinatal, and “ill-defined” conditions, mostly concentrated before age 20 and between ages 20 and 50, is responsible for most of the reduction in life expectancy inequality. At the same time, the recent effect of AIDS, together with reductions in mortality after age 50—due to nervous system, senses organs, heart and circulatory diseases—contributed to increase health inequality across countries.
That reminder is from Aaron Schwartz. And of course that is the Becker, yet another contribution from Gary Becker.
Do note, by the way, that medical progress is usually egalitarian per se. A common metric is something like “health outcomes of the poor” vs. “health outcomes of the rich,” and that may or may not be moving in an egalitarian direction. But very often the more incisive metric is “health outcomes of the sick” vs. “health outcomes of the healthy,” and of course most medical treatments are going to the sick. The more desperate is the lot of the sick, the more likely that medical progress is egalitarian per se.
Why do we even bishop?
To those patrons patiently awaiting their signed prints and raffle prizes, please hang in there! You haven’t been forgotten – it’s just taking some time to get things right. Plus I’m still pounding out the clerihews – though there are only about eleven left to go at the time of writing.
(If you don’t know what I’m talking about, you can read all about it here.)
Gene Wilder would have made a fantastic doctor.
Back in February, Smug Mode chose American counterparts for all of Doctor Who's past incarnations. We're talking Dick Van Dyke as the 2nd Doctor, Gene Wilder for the 4th Doctor, and Donald Glover as the 11th Doctor. Here's a nicely done faux 50th anniversary video celebrating those Doctors:
(via @moth)Tags: Doctor Who parody TV video