Why Ayn Rand Was/Is Wrong...

Dear 18-year-old nerds and Alan Greenspan:

Here's a little article on why excessive individualism (aka, a purely "ownership society") can lead to bad results.  I know it probably won't change your mind.  After all, you say, libertarianism (or conservatism) never fails, people only fail libertarianism.  Well, just think about it, ok?

The Permission Problem, by James Surowiecki: In the second decade of the twentieth century, it was almost impossible to build an airplane in the United States. That was the result of a chaotic legal battle among the dozens of companies—including one owned by Orville Wright—that held patents on the various components that made a plane go. No one could manufacture aircraft without fear of being hauled into court. The First World War got the industry started again, because Congress realized that something needed to be done to get planes in the air. It created a “patent pool,” putting all the aircraft patents under the control of a new association and letting manufacturers license them for a fee. Had Congress not stepped in, we might still be flying around in blimps.
The situation that grounded the U.S. aircraft industry is an example of what the Columbia law professor Michael Heller, in his new book, “The Gridlock Economy,” calls the “anticommons.” We hear a lot about the “tragedy of the commons”: if a valuable asset (a grazing field, say) is held in common, each individual will try to exploit as much of it as possible. Villagers will send all their cows out to graze at the same time, and soon the field will be useless. When there’s no ownership, the pursuit of individual self-interest can make everyone worse off. But Heller shows that having too much ownership creates its own problems. If too many people own individual parts of a valuable asset, it’s easy to end up with gridlock, since any one person can simply veto the use of the asset.
The commons leads to overuse and destruction; the anticommons leads to underuse and waste. ... Even divided land ownership can have unforeseen consequences. Wind power, for instance, could reliably supply up to twenty per cent of America’s energy needs—but only if new transmission lines were built, allowing the efficient movement of power... Don’t count on that happening anytime soon. Most of the land that the grid would pass through is owned by individuals, and nobody wants power lines running through his back yard.
The point isn’t that private property is a bad thing, or that the state should be able to run roughshod over the rights of individual owners. Property rights (including patents) are essential... But property rights need to be limited to be effective. The more we divide common resources like science and culture into small, fenced-off lots, Heller shows, the more difficult we make it for people to do business and to build something new. Innovation, investment, and growth end up being stifled. ...
In theory, one should be able to break a gridlock by striking a deal that would leave all sides better off. Sometimes that happens. ... [But...] One reason deals founder is that there are simply too many interested parties. If, in order to create a new drug, you have to strike bargains with thirty or forty other companies... often things go awry because owners won’t make a deal at a reasonable price...
Recent experimental work by the psychologist Sven Vanneste and the legal scholar Ben Depoorter helps explain why. When something you own is necessary to the success of a venture, even if its contribution is small, you’ll tend to ask for an amount close to the full value of the venture. And since everyone in your position also thinks he deserves a huge sum, the venture quickly becomes unviable. So the next time we start handing out new ownership rights—whether via patents or copyright or privatization schemes—we’d better try to weigh all the good things that won’t happen as a result. Otherwise, we won’t know what we’ve been missing. (h/t: Economist's View)

BLS

The Bureau of Labor Statistics, as Atrios points out (and as Kevin ... also discussed in Harper's), keeps an array of data of unemployment.  For some reason, which I'll say is probably political expediency,  the "U3," which is basically all those who are out of work AND seeking work, is our official rate.  But the U3 does not count people who have given up after months of trying and who still want to work.  The U6, " Total unemployed, plus all marginally attached workers, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all marginally attached workers.." Has a different and more comprehensive look at unemployment.  Click on the graph to see full size.  You'll note that U3 is 5.7 and U6 is 10.3.

As Kevin Phillips points out, the "truth," or at least a better picture of the various truths that one can glean about an economy, could set us free for some real discussion:

"The corruption has tainted the very measures that most shape public perception of the economy—the monthly Consumer Price Index (CPI), which serves as the chief bellwether of inflation; the quarterly Gross Domestic Product (GDP), which tracks the U.S. economy’s overall growth; and the monthly unemployment figure, which for the general public is perhaps the most vivid indicator of economic health or infirmity. Not only do governments, businesses, and individuals use these yardsticks in their decision-making but minor revisions in the data can mean major changes in household circumstances—inflation measurements help determine interest rates, federal interest payments on the national debt, and cost-of-living increases for wages, pensions, and Social Security benefits. And, of course, our statistics have political consequences too. An administration is helped when it can mouth banalities about price levels being “anchored” as food and energy costs begin to soar.

The truth, though it would not exactly set Americans free, would at least open a window to wider economic and political understanding. Readers should ask themselves how much angrier the electorate might be if the media, over the past five years, had been citing 8 percent unemployment (instead of 5 percent), 5 percent inflation (instead of 2 percent), and average annual growth in the 1 percent range (instead of the 3–4 percent range). We might ponder as well who profits from a low-growth U.S. economy hidden under statistical camouflage. Might it be Washington politicos and affluent elites, anxious to mislead voters, coddle the financial markets, and tamp down expensive cost-of-living increases for wages and pensions?" [Number's Racket, Harpers, May 2008]

The South

Hailing from the South, as I do, I'm always on the lookout for interesting interpretations of its development. My father, who became a sociologist and studied the effects of bringing electricity to the southern Appalachians, of noted the importance of having just a single electric light dangling from the ceiling--it changes everything. Children can study, farmers can work on record-keeping, all setting of a chain reaction of personal and public development. Mark Thoma points out this study today:

A novel contribution of this paper is that it appears to provide a real-world example of the 'Big Push' theory. Never heard of the 'Big Push' theory? Well, here is how the authors describe it:

According to the “big push” theory of economic development, publicly coordinated investment can break the underdevelopment trap by helping economies overcome deficiencies in private incentives that prevent firms from adopting modern production techniques and achieving scale economies. These scale economies, in turn, create demand spillovers, increase market size, and theoretically generate a self-sustaining growth path that allows the economy to move to a Pareto preferred Nash equilibrium where it is a mutual best response for economic actors to choose large-scale industrialization over agriculture and small-scale production. The big push literature, originated by Rosenstein-Rodan [1943, 1961], was initially motivated by the postwar reconstruction of Eastern Europe. The theory subsequently appeared to have had limited empirical application... [S]cholars have found few real-world examples of such an infusion of investment helping to “push” an economy to high-level industrialization equilibrium.

Until this paper, that is. The authors continue:

We argue here that the “Great Rebound” of the American South, which followed large public capital investments during the Great Depression and World War II, is one such application. Although 1930s New Deal programs are typically presented in the context of their attempt to bring relief and recovery to the U.S. economy through demand-stimulating public expenditures, the long-term economic effects of these and subsequent wartime expenditures were profound for the South. Specifically, and consistent with big push theoretical literature, the infusion of public capital—roads, schools, waterworks, power plants, dams, airfields, and hospitals, among other infrastructural improvements—fundamentally reshaped the Southern economy, expanded markets, generated significant external economies, increased rates of return to large scale manufacturing, and encouraged a subsequent investment stream. These improvements helped create the conditions that allowed the region to break free from its low-income, low-productivity trap and embark on its rapid postwar industrialization.

This paper deals with the break from the South's poverty trap. The sustained nature of the South's postwar economic recovery has been covered by other studies: Connolly (2004) looks to improved human capital formation, Cobb (1982) points to industrial policy, Beasley, Persson, and Sturm (2005) finger increased political competition, and Glaeser and Tobio (2008) discuss the merits of the climate or Sunbelt effect. (I will also note I have seen somewhere the advent of air conditioning did wonders for development in the South).

New Deal socialism spurred the development of the "New" South. My parents knew that because the saw it first hand, my father even wrote about it. I'm glad to see the dismal science is now joining in with a "Big Push" Theory. What's interesting to me, of course, is the degree to which the South has forgotten that the roots of its 20th-century growth were planted by FDR, instead opting to side with the neoliberal "conservative" faction. This is in no way surprising, since surplus labor in the South is still regarded as a story of race and not class, which has allowed for the divisive politics of the last 40 years. Division represents politics and economics in the South, where a vibrant middle-class has yet to arise, and where income disparity remains the greatest. I made up the following (hard to read) graph to show this. D.C., NY and CA all have great income disparity for their own reasons--NY and CA both have extremely large concentrations of wealth, for example. Of the next 10 states that follow them in income disparity, 8 are in the south: Lousiana, Texas, Mississippi, Florida, Connecticut, New Mexico, Georgia, Alabama, Kentucky, Tennessee. (I apologize for the chart being so hard to read. Click on it for the full size.)

While the "New South" is in some ways only following the line of increased division between the rich and poor, it tends to be leading the way. By the way, you can find the data for the chart here: http://www.census.gov/hhes/www/income/histinc/state/state4.html

"Free Markets"

Joseph Stiglitz sayz:

"Fannie’s and Freddie’s free lunch, by Joseph Stiglitz, Commentary, Financial Times: ...The US government is about to embark on ... a partnership, in which the private sector takes the profits and the public sector bears the risk. The proposed bail-out of Fannie Mae and Freddie Mac entails the socialisation of risk – with all the long-term adverse implications for moral hazard – from an administration supposedly committed to free-market principles.
Defenders of the bail-out argue that these institutions are too big to be allowed to fail. If that is the case, the government had a responsibility to regulate them so that they would not fail. No insurance company would provide fire insurance without demanding adequate sprinklers; none would leave it to “self-regulation”. But that is what we have done with the financial system."
 [h/t economists view]

I heard some "left wing" talk show host yesterday on AM 1150 who kept going on and on about free markets and how if we just let them do their job everything would be ok.  Well, no.  Free markets, as an idea, may be perfect, but the truth is that they are a utopian concept, a shadow on the wall.  Power (as seen above) will always intervene, and, indeed, power structures (lobbyists, politicians, Wall Street) were present in the first place as Fannie Mae was massaged into a corporate model (with benefits for shareholders).  Until we have an open discussion about who is wielding this influence and whether such influence is undue and subject to corruption and failure, then our conversations will also remain in a "utopian" netherworld that fails to account for what is really happening.

Capitalism, the marketplace are incredibly dynamic systems, but they can be a threat to democracy when they become a corporatocracy.  It's funny, someboday was telling me how much China was becoming like us; I looked around and thought: "No, we're becoming like them."

(Death) March of the Penguins

Why global warming might not be good if you're a penguin:

RIO DE JANEIRO, Brazil (AP) -- Hundreds of baby penguins swept from the icy shores of Antarctica and Patagonia are washing up dead on Rio de Janeiro's tropical beaches, rescuers and penguin experts said Friday.

More than 400 penguins, most of them young, have been found dead on the beaches of Rio de Janeiro state over the past two months, according to Eduardo Pimenta, superintendent for the state coastal protection and environment agency in the resort city of Cabo Frio.

While it is common here to find some penguins - both dead and alive - swept by strong ocean currents from the Strait of Magellan, Pimenta said there have been more this year than at any time in recent memory.

Zirin does it again.

Thank you David Zirin.  It's rare that I post links almost entirely, but you say it all:

Zirin:

Let's start with an email I received this morning from Kap Fulton:

"Who are Justin, Josh, Lance, Ryan, Dan, Grady, Chase, and Evan?

A. Roll call for a second grade class in at a suburban Ohio elementary school
B. The most popular boys names in Denver, CO
C. Characters from the new 90210
D. Bud Selig's attempt at diversity: one Canadian."
If you answered D, take a bow. Yes, Justin Morneau, (the Canadian), Josh Hamilton, Lance Berkman, Ryan Braun, Dan Uggla, Grady Sizemore, Chase Utley, and Evan Longoria were the contestants in this year's Home Run Derby on the eve of the 2008 All Star Game, and it was quite the Caucasian ovation (although, as I've learned since posting this column, Grady Sizemore's father is African American). Granted, the big time rainbow coalition of home run boppers like David Ortiz, Alex Rodriguez, and Ryan Howard declined to participate, but it was still bizarre and even a touch disturbing to see a home run derby that looked a lot like a contest out of 1946, before Jackie Robinson integrated the game. The vibe wasn't helped when one of the announcers celebrated Josh Hamilton's record setting derby barrage, by exclaiming, "This is a bad night to be an atheist!" (Please may God have better things to do than watch - and intervene in - the Home Run Derby.)
Yet an all-white derby complete with hallelujahs and hosannas might be appropriate for All-Star festivities drenched in nostalgia for its host site Yankee Stadium. The 85-year-old ballpark is of course known as "the house that Ruth built," a testimony to the dominance of Babe Ruth in the 1920s, when the game was segregated and Ruth never had to face great Negro League pitchers like Satchel Paige or Smokey Joe Williams. In the All-Star game itself, the only African American to suit up was Milton Bradley, a player excoriated four years back for saying, "White people never want to see race-with anything. But there's race involved in baseball. That's why there's less than 9 percent African-American representation in the game."
The numbers back up Bradley's frustration.  In the 2008 Racial and Gender Report Card, Richard Lapchick, Nikki Bowey and Ray Mathew wrote,
"The game has the lowest percentage (8.2) of African-Americans in the two decades that we have published the Report Card. That number is less than half what it was in 1997 on the 50th anniversary of [Jackie] Robinson's debut with the Dodgers, when African-Americans made up 17 percent of the players, and less than the percentage of blacks in the general population of the U.S. (12.3 percent)."
Ironically this is occurring while baseball has gone global, with 29% of all Major Leaguers born in Latin America, with impact players from Asia making their mark as well. The number of white players has remained remarkably constant with the numbers at 58-60%. (86% of college baseball players are white.)
The debate about why the number of African American players has plummeted has been explored aplenty. The predominant argument is that baseball has an "image problem" in black America. It has no cultural cache and therefore young athletic black men gravitate toward basketball and football. I think this gets the argument completely backward, (although it can't help baseball's image in the black community that Barry Bonds can't find a team while all manner of proven juicers grace major league rosters). To make this an argument about whether or not baseball is "cool" is like saying there aren't any prominent African American harpsichord players because the harpsichord just isn't funky fresh. While it's true that if you poll an inner city classroom, and ask how many young people want to be baseball players you may get the same number that want to play the harpsichord. But is this a question of what is "cool" or is this about actual access, choices, and opportunity? Baseball requires equipment, investment, and infrastructure. But baseball owners have chosen to make this investment beyond the border where players can be developed signed and discarded on the cheap. This game of baseball that was so closely associated with the black freedom struggle in the days of Jackie Robinson has been removed physically from our cities, and is now as culturally alien in many areas as the steeplechase. I recently spoke with sports sociologist Dr. Harry Edwards and he put it very sharply.
"Forty percent of baseball is foreign born, they've gone global, globalization in sports follows globalization in corporations with the same outcome. There are off-shoring the jobs... Blacks are going to be displaced. The reality is that because of deterioration of education in the community, because of the violence in the community, we're disqualifying, jailing and burying our potential boxers, wide receivers, and baseball players. When you see that happening, then you understand that the Black athlete is really just a canary in the mineshaft because what they're really telling us is something happening in the African-American community. They're merely a canary in the mine shaft saying we have serious problems of survival."
If baseball is sincere about seeing the game return to the cities and if they don't want home run derbies whiter than the Republican National Convention, they are going to need to do more than offer meager urban academy programs. Major League Baseball might have to use its political clout to make sure our cities aren't hollowed out husks. They might have to forgo public stadium funding for a different set of priorities that pours money in instead of vacuuming it out.

Be sure to go to his page for some interesting comments.

Learning Styles--Not!

Sorry for Borat-style "not!", but I just attended a conference where the term "learning styles" was used over and over. I don't pretend to know a lot about the subject, but I have to say that, at best, it is a very grey area.

Stahl (1999) notes in particular 1) the flawed assessment tools used in determining learning styles and 2) how learning styles "theory" has little practical to offer in the classroom:

"I have interviewed a number of teachers who have attended meetings of 200-300 teachers and principles, who paid $129 or so to attend a one-day workshop or up to $500 to attend a longer conference. They have found them to be pleasant experiences, with professional presenters. The teachers also feel that they learned something from the workshops. After I presed them, what it seemed that they learned is a wide variety of reading methods, a respect for individual differences among children, and a sense of possibilities of how to teach reading. This is no small thing. However, the same information, and much more, can be gotten from a graduate class in the teaching of reading.
These teachers have another thing in common--after one year, they had all stopped trying to match children by learning styles." [Different Strokes for Different Folks?]

Of course, I'm only citing one article, but that is one more article than the conference organizer's used to convince me of learning style theory.  There is nothing ground-breaking in the idea that EVERYONE learns best when confronted with a multiplicity of activities.  And there may be evidence that learning occurs most precisely when students find themselves obliged to work with methods that take them away from their metacognitive "comfort zone" because this forces them to contrast and compare.

There is a lot to say, of course, and this blog post is certainly not a review of all the literature, but, please, oh please, don't bombard me with learning style theory without discussing the negative literature on it or the negative side effects of perhaps wasting class time determining "how students learn."

It rained last night

It rained last night and was such a relief. It washed away the long, stressful week and was a particular treat since we had worked all day on our backyard project and because we usually don't get a drop of rain until November or December.

non-French French

At a conference

I'm currently at a conference on language learning with a team from Whittier College. There is interesting discussion of integrative learning, metacognition, technology, etc. There is a lot of overlap with NITLE types of issues. I'm quite intrigued by inserting more critical thinking, literature and culture into the 1st-year language experience.

Some of the influences on this are the writing of Barbara Ganley: "For the past 25 years I have tried to get my students out into the world...to have those slow conversations that billow out around the central learning purpose, deepening, and adding complexity and richness to the learning--making it real. I want them to feel what Ted Nelson says: 'Human ideas, science, scholarship, and language are constantly collapsing and unfolding. Any field...is a bundle of relationships subject to all kinds of twists, inversions, involutions and rearrangement.'... But it has not been easy. Our educational systems conspire against a messy, organic approach to learning."

Celebrate the ideas

As I read the news today about an embedded reporter who was barred from further reporting because he dared take pictures of what a suicide bombing actually does to people, I'm reminded that this is not the season to celebrate our country, but rather a time to celebrate the ideas on which it was founded. Jefferson was ok. I don't like Washington. Madison, definitely. Most importantly:

Arctic Ice Cap Gets Capped.

This is good news:

Arctic warming has become so dramatic that the North Pole may melt this summer, report scientists studying the effects of climate change in the field. "We're actually projecting this year that the North Pole may be free of ice for the first time [in history]," David Barber, of the University of Manitoba, told National Geographic News aboard the C.C.G.S. Amundsen, a Canadian research icebreaker.

I'll be conferencing and blogging the next few days if the wifi gods are with me, but I'd rather be swimming. At the North Pole, of course.

Words to live by

"I'm not here to say that the government is always right, but when the government tells you to do something, I'm sure you would all agree that I think you all recognize that is something you need to do," [Kit] Bond said." (via GG)

Forget FISA, let's look at pictures.

Ok, I'm still fuming about the house vote today. I am also upset that Obama is playing right in the dirty, unconstitutional hands of the current administration and the telecoms.

So let's change the subject.

Did I tell you I took pictures in morocco?

Click on the picture to see the show

I just made my contribution

Steny Hoyer must go. I just made a 50$ contribution to the act blue page. The link to contribute is at the very in of Glenn Greenwald's post, which I quote here:

Our first ad, featuring Steny Hoyer, is almost finished and will run as a full-page ad in The Washington Post and in numerous newspapers in his district, aimed at his core Democratic base. We are excited that Color of Change -- the online, grass-roots African-American organization devoted to demanding more responsiveness from Washington officials -- has now joined our coalition and is directly working with us on this ad campaign against Hoyer. And we hope to expand our work with them to include the other campaigns we are doing, including -- just for now -- the ones against Rep. Chris Carney and Rep. John Barrow.

The total amount we have for this campaign is now almost $250,000. The response has been overwhelming. I know that many of you have donated as much or even more than you could, but the more we raise, the more of an impact we can make against the individuals responsible for this travesty. Making them know there is a real price to pay when they do this -- not by getting deluged with angry phone calls or merely having primary challenges, but doing everything possible to expose their real character, remove them office and put a permanent end to their political careers -- is the only real way to deter its repetition. Contributions can be made here.

Thanks, Linda.

Here's what I wrote to my congresswoman a few minutes ago:

Dear Congresswoman Sanchez,

I was writing to follow up on today's vote on the FISA bill. While the bill still passed, your 'nay' vote is greatly appreciated. I hope that when it comes time to elect a majority leader, Steny Hoyer will not be at the top of your list!

As always, thanks for your service to Whittier and congratulations on being patriotic and voting against laws that undermine the constitution.

I will be contributing to your election campaign.

Roadkill Hat Club of America Giclee Ltd Edition

Roadkill Hat Club of America Giclee Ltd Edition
Originally uploaded by JimFromIowa

The things one can learn.

I just got back

from dinner, but before dinner I had beer with friends (Jeff, Dave, Carolyn, Seamus and Leslie). But before beer with friends, we had all just gotten back from a bluegrass jam in Pasadena. It was a lot of fun.

Now Anne has just called from Detroit. She's been in the airport for something like 5 hours because of a flight delay. They aren't saying when the flight is leaving.

Ugh. I haven't talked about the travails of JFK last week. I hate--HATE--American Airlines.

Anyway, just a blog blurb to remind myself that, occasionally, I write in my blog.

McSame McCain

McSame McCain:

John McCain Votes to Filibuster Minimum Wage Hike.

McCain: Bush right to veto kids health insurance expansion

Doorway

_DSC3756 copy
Originally uploaded by andrethegiant

Well, I'm back from Morocco and stunningly up to my eyeballs in work. That didn't stop me from uploading some of my pictures to flickr...

You can see the full set here