<?xml version="1.0" encoding="UTF-8"?>
<?xml-stylesheet type="text/xsl" media="screen" href="/~d/styles/rss2full.xsl"?><?xml-stylesheet type="text/css" media="screen" href="http://feeds.feedburner.com/~d/styles/itemcontent.css"?><rss xmlns:content="http://purl.org/rss/1.0/modules/content/" xmlns:wfw="http://wellformedweb.org/CommentAPI/" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:atom="http://www.w3.org/2005/Atom" xmlns:sy="http://purl.org/rss/1.0/modules/syndication/" xmlns:slash="http://purl.org/rss/1.0/modules/slash/" xmlns:feedburner="http://rssnamespace.org/feedburner/ext/1.0" version="2.0">

<channel>
	<title>Steve Reads</title>
	
	<link>http://stevereads.com/weblog</link>
	<description>Books and policy from an endlessly curious perspective</description>
	<lastBuildDate>Sun, 13 May 2012 03:36:14 +0000</lastBuildDate>
	<language>en</language>
	<sy:updatePeriod>hourly</sy:updatePeriod>
	<sy:updateFrequency>1</sy:updateFrequency>
	<generator>http://wordpress.org/?v=3.3.2</generator>
		<atom10:link xmlns:atom10="http://www.w3.org/2005/Atom" rel="self" type="application/rss+xml" href="http://feeds.feedburner.com/StephenLanielsUnspecifiedBunker" /><feedburner:info uri="stephenlanielsunspecifiedbunker" /><atom10:link xmlns:atom10="http://www.w3.org/2005/Atom" rel="hub" href="http://pubsubhubbub.appspot.com/" /><item>
		<title>Tools for making the impossible possible</title>
		<link>http://feedproxy.google.com/~r/StephenLanielsUnspecifiedBunker/~3/kL3VyXbU__4/</link>
		<comments>http://stevereads.com/weblog/2012/01/29/tools-for-making-the-impossible-possible/#comments</comments>
		<pubDate>Mon, 30 Jan 2012 01:38:31 +0000</pubDate>
		<dc:creator>slaniel</dc:creator>
				<category><![CDATA[Employers]]></category>
		<category><![CDATA[SQL]]></category>

		<guid isPermaLink="false">http://stevereads.com/weblog/?p=7142</guid>
		<description><![CDATA[I&#8217;ve been thinking a lot lately about tools that help make the difficult easy, which has got me thinking again about probably my favorite quote of all time, by A.N. Whitehead: It is a profoundly erroneous truism, repeated by all copy-books and by eminent people when they are making speeches, that we should cultivate the [...]]]></description>
			<content:encoded><![CDATA[<p>I&#8217;ve been thinking a lot lately about tools that help make the difficult easy, which has got me thinking again about <a href="http://stevereads.com/weblog/2010/09/06/perhaps-my-favorite-quote-of-all-time/">probably my favorite quote of all time</a>, by A.N. Whitehead:</p>

<blockquote>
  <p>It is a profoundly erroneous truism, repeated by all copy-books and by eminent people when they are making speeches, that we should cultivate the habit of thinking of what we are doing. The precise opposite is the case. Civilisation advances by extending the number of operations we can perform without thinking about them.</p>
</blockquote>

<p>I think about this at <a href="http://www.akamai.com/">work</a> all the time, because our use of <a href="http://www.akamai.com/dl/technical_publications/lisa_2010.pdf">SQL</a> makes possible a lot of data-gathering and -analysis tasks which really would have been impossible without it. Answering some question about many thousands of servers (<a href="http://www.akamai.com/html/investor/quarterly_releases/2011/press_102611.html">100,770 as of the end of September, 2011</a>) would be unimaginable. Certainly getting many <em>quick</em> answers to many <em>quick</em> queries would be absolutely unimaginable. Without some tool that allows quick aggregation across many different datasets, we&#8217;d have to resort to home-brewed scripts that, say, ssh to thousands of machines in parallel and ask them questions. Or we&#8217;d have to reinvent Query, more likely.</p>

<p>There are two aspects to SQL that I think about constantly at work: first this trick of turning an impossible problem into a triviality, and second the sense of <em>playfulness</em> that it enables. It takes only a tiny bit more effort to turn from the question you were trying to answer into something unexpected, something more general, or something more nuanced. Often answering questions that you didn&#8217;t know you had involves finding a table you didn&#8217;t know the company published, which in turn involves asking around to see who would know best about a given kind of data. Finding answers to questions you didn&#8217;t know you had seems to me part and parcel of what SQL is all about.</p>

<p>The term &#8220;generative technology&#8221; gets at this. I would link to the first Google search result for this, except that I don&#8217;t really like how Jonathan Zittrain &#8212; who is, in fairness, most associated with this term &#8212; runs with it. iPhones versus non-iPhones isn&#8217;t really at all related to what I have in mind here, and I don&#8217;t think the definition he has there gets at what even he means by it. The term &#8220;generative&#8221; comes ultimately from <a href="https://en.wikipedia.org/wiki/Generative_grammar">generative grammar</a>, which my non-linguistically-trained self understands to mean &#8220;a set of simple rules for the formation of sentences, which rules can be combined in infinitely many ways to construct infinitely many distinct sentences.&#8221; In mathematics, think of axioms and rules for their combination: there aren&#8217;t that many <a href="https://en.wikipedia.org/wiki/Peano_axioms">axioms defining the integers</a>, but they can be combined with only a few more rules (about <a href="https://en.wikipedia.org/wiki/Ordered_pair">ordered pairs</a> and what, exactly, multiplication of two ordered pairs means) to build <a href="https://en.wikipedia.org/wiki/Rational_number">rational numbers</a>, and thence <a href="https://en.wikipedia.org/wiki/Real_number">real numbers</a>, and thence <a href="https://en.wikipedia.org/wiki/Complex_number">complex numbers</a>. The simple axioms, and simple rules for their combination, lead to infinitely complex objects.</p>

<p>(Because I cannot resist a filthy quote when given the opportunity, it&#8217;s here that I&#8217;ll quote <a href="http://books.google.com/books?id=qRzLdRkxcFkC&#038;pg=PR13&#038;lpg=PR13&#038;dq=stephen+king+%22motherfucker+from+space%22&#038;source=bl&#038;ots=xxuNvfA3in&#038;sig=xh3H_mvE-EW0A5FzUx2vqUxB2eM&#038;hl=en&#038;sa=X&#038;ei=lOUlT7iEKsPe0QHy14D_CA&#038;ved=0CC8Q6AEwAg#v=onepage&#038;q&#038;f=false">Stephen King&#8217;s advice on writing</a>: &#8216;When asked, &#8220;How do you write?&#8221; I invariably answer, &#8220;One word at a time,&#8221; and the answer is invariably dismissed. But that is all it is. It sounds too simple to be true, but consider the Great Wall of China, if you will: one stone at a time, man. That&#8217;s all. One stone at a time. But I&#8217;ve read you can see that motherfucker from space without a telescope.&#8217;)</p>

<p>And so it is with SQL and other generative technologies. They don&#8217;t give you a single product that you use in the 10 or 20 or 100 ways that you&#8217;ve been told to use it; in this sense, I view Facebook as non-generative. A generative technology, like Unix or SQL, might have a steep learning curve, but once you&#8217;ve learned it you can do infinitely many things.</p>

<p>There are lots of complexities once you&#8217;ve learned the atoms, and even once you&#8217;ve learned how to combine the atoms. In Unix, for instance, your first task is learning to string together programs with pipes. Once you&#8217;ve done that, you&#8217;ll soon enough be writing your own programs. but you have to write them in the Unix Way, which often involves allowing them to sit with a pipe on their left side and a pipe on their right; in this way, they themselves become part of the generative toolkit. Again, invoking Whitehead, the point is to make complicated action reflexive and doable without thinking. Take a common Unix pattern:</p>

<p><code>[some commands] | sort | uniq | sort -nr</code></p>

<p>This takes the output of [some commands] &#8212; assumed to contain one interesting pattern per line &#8212; and displays it in descending order of frequency, with the frequency in the left column and the pattern on the right. This isn&#8217;t many characters, so typing it out becomes second nature; the smart thing to do, though, would be to put this Unix fragment in its own script, which we might call sort&#95;by&#95;pop (or really &#8216;popsort&#8217;, which would save you some keystrokes: there&#8217;s already a command that starts with &#8216;sort&#8217;, but no commands that start with &#8216;pops&#8217;, so &#8216;popsort&#8217; would be easier to get from tab-completion; Unix people think this way):</p>

<pre><code>(19:44 -0500) slaniel@example.com~$ cat sort_by_pop 
#!/bin/bash
sort |uniq -c |sort -nr
</code></pre>

<p>Now you can just pipe things through sort&#95;by&#95;pop if you want to sort them by popularity:</p>

<pre><code>(19:44 -0500) slaniel@example.com:~$ grep -o '^[^ ]\+' access.log |sort_by_pop  |head
    607 46.165.197.141
    520 173.242.125.206
    309 199.21.99.67
    229 130.195.253.1
    169 66.249.71.18
    162 72.14.199.102
     83 72.246.0.10
     37 142.167.21.94
     34 198.228.223.217
     33 80.58.205.47
</code></pre>

<p>Hm, what&#8217;s that grep(1) bit? Looks like that bit of script could be usefully abstracted into something called &#8216;get_ip&#8217;:</p>

<pre><code>(19:48 -0500) slaniel@example.com:~$ cat get_ip 
#!/bin/bash
grep -o '^[^ ]\+'
</code></pre>

<p>whence we simplify to &#8220;cat access.log | get&#95;ip | sort&#95;by&#95;pop&#8221;. Now you don&#8217;t need to understand the nuances of how sort(1) and uniq(1) work if you don&#8217;t want to; in fact, you may never need to know that those atomic tools are sitting underneath your molecular abstractions. If you trust the person who wrote the tools, you can assume that get&#95;ip gets an IP address from a suitably formatted Apache access log, and that sort&#95;by&#95;pop sorts a file containing one pattern per line in descending order of popularity.</p>

<p>And so forth. The idea is to constantly combine the atoms of your knowledge into larger and larger molecules, which allows you to forget about the individual atoms unless you really need them. (Where you often need to remember the atoms is for performance reasons.)</p>

<p>In SQL, one way of combining atoms into higher-order molecules is by means of <a href="http://dev.mysql.com/doc/refman/5.0/en/create-view.html">views</a>. A view is a new table (&#8220;relation&#8221; for the relational-calculus <a href="http://stevereads.com/weblog/2009/11/01/c-j-date-database-in-depth-relational-theory-for-practitioners/">purists</a> in the room) constructed from lower-order &#8220;base tables&#8221;. There may be some very clever way to get by without views, but I don&#8217;t know what it might be. Often you&#8217;ll end up with a query that requires you to join one complicated sub-query to itself; without views, you&#8217;d be repeating the sub-query, which would probably involve copying and pasting a bunch of text. This would make editing one of the sub-queries a hassle, because you&#8217;d have to repeat your edits once for every sub-query. With views, you create the view once, give it some shorthand name, then use the shorthand on every subsequent reference. Any edit only has to happen once, in the view. Again, the point is to make higher-order thought effortless.</p>

<p>(Java, by contrast, requires so much boilerplate that it gets in the way of quickly scanning a piece of code and understanding what it&#8217;s trying to do. Either that, or it requires the developer to carefully shunt his boilerplate off into a little boilerplate area of his code. Or it requires the code reader to develop a finely honed skill of skipping over boilerplate. One organizing principle for writing code of any sort ought to be that it puts the least possible distance between the task you&#8217;re envisioning and the code you write for it.)</p>

<p>Having developed such a love for SQL, and having long ago learned how to build high-order castles in Unix, I&#8217;m now on the hunt for other generative technologies that will make difficult tasks possible. My goal for 2012 is to discover such a set of technologies for time series. It&#8217;s not just a matter of writing formulas that allow me to manipulate time series in any way I see fit, though that&#8217;s hard enough (it will probably involve <a href="http://www.r-project.org/">R</a>, and may also involve <a href="http://www.amazon.com/Data-Analysis-Open-Source-Tools/dp/0596802358"><span class="book">Data Analysis with Open Source Tools</span></a>, recommended in the highest terms by my awesome friend Dan Milstein). And it&#8217;s not just a matter of manipulating them in a way that makes exploring them, combining them, and being surprised possible, though that&#8217;s part and parcel of the generative idea.</p>

<p>Rather, the difficulty with making these things work right starts, it seems to me, way down in the guts. Akamai&#8217;s Query system is brilliant &#8212; one of the most brilliant technologies I&#8217;ve ever seen at a company, central to everything I do at every minute of every day &#8212; and works so well because there&#8217;s a lot of stuff going on under the hood which, again, I mostly don&#8217;t need to think about. The low levels do break, just as they do in any software system (<a href="http://www.joelonsoftware.com/articles/LeakyAbstractions.html">all abstractions are leaky</a>); and when they break, I&#8217;m forcibly reminded that all my simplifying abstractions rest very tentatively on a lot of lower-level foundations. Without someone doing a lot of low-level grunt work, Whitehead&#8217;s dictum doesn&#8217;t hold. (Perhaps the grandest abstractions of all in the modern world are &#8220;the market economy&#8221; and &#8220;industrial democracy&#8221; &#8212; abstractions that we forget are based on very concrete things like cheap fossil fuels or policemen who will enforce contracts at the point of a gun.) In the case of SQL, someone has to build a backend data-storage method that allows quick lookups. In the case of time series, what will the backend storage system look like? Will we need something like <a href="http://research.google.com/archive/mapreduce.html">MapReduce</a>? Do we need a different high-level language to concisely encapsulate high-level time-series concepts like &#8220;the trend component&#8221; or &#8220;the spectrum&#8221;?</p>

<p>Here is the place to note a lesson that I find I have to repeat to myself over and over: don&#8217;t think any harder than you need to. My interest in time series is very non-abstract; I have some specific questions I want to answer about some specific datasets at work. And yes, I want to make sure that I can combine them in new and interesting ways in a reasonable amount of time. But until I&#8217;ve asked a single specific question of a single specific dataset, I shouldn&#8217;t think too hard about <a href="https://www.youtube.com/watch?v=7s664NsLeFM">making an apple pie from scratch</a>.</p>

<p>So anyway, there&#8217;s a general point in here, and a specific one. The general point is to hunt for abstractions that make it possible to get a lot done without thinking, and make it possible to explore areas you didn&#8217;t even know you <em>could</em> explore. The specific point is that in 2012, I want to see what I can do with Akamai&#8217;s time-series data. I imagine one of these points will be interesting to you, the other less so.</p>
<img src="http://feeds.feedburner.com/~r/StephenLanielsUnspecifiedBunker/~4/kL3VyXbU__4" height="1" width="1"/>]]></content:encoded>
			<wfw:commentRss>http://stevereads.com/weblog/2012/01/29/tools-for-making-the-impossible-possible/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		<feedburner:origLink>http://stevereads.com/weblog/2012/01/29/tools-for-making-the-impossible-possible/</feedburner:origLink></item>
		<item>
		<title>Because Backbar, in Somerville’s Union Square, is remarkably un-webbable, I give the world this</title>
		<link>http://feedproxy.google.com/~r/StephenLanielsUnspecifiedBunker/~3/Aw17n2Qx2yI/</link>
		<comments>http://stevereads.com/weblog/2011/12/31/because-backbar-in-somervilles-union-square-is-remarkably-un-webbable-i-give-the-world-this/#comments</comments>
		<pubDate>Sat, 31 Dec 2011 21:19:36 +0000</pubDate>
		<dc:creator>slaniel</dc:creator>
				<category><![CDATA[Food and drink]]></category>
		<category><![CDATA[Somerville]]></category>
		<category><![CDATA[Union Square]]></category>

		<guid isPermaLink="false">http://stevereads.com/weblog/?p=7137</guid>
		<description><![CDATA[Backbar, in the Union Square neighborhood of Somerville, is on Facebook, but I&#8217;ll be danged if I can find their website through any combination of reasonable search terms. So let&#8217;s try this: Backbar is on the web. You can find directions to Backbar, and even a map! Perhaps this will do some good. I see [...]]]></description>
			<content:encoded><![CDATA[<p>Backbar, in the Union Square neighborhood of Somerville, is <a href="https://www.facebook.com/backbarunion">on Facebook</a>, but I&#8217;ll be danged if I can find their website through any combination of reasonable search terms. So let&#8217;s try this:</p>

<ul>
<li><p><a href="http://www.backbarunion.com/">Backbar is on the web</a>.</p></li>
<li><p><a href="http://www.backbarunion.com/directions/">You can find directions to Backbar, and even a map!</a></p></li>
</ul>

<p>Perhaps this will do some good. I see that the indispensable <a href="http://bostonrestaurants.blogspot.com/2011/12/backbar-opens-in-somervilles-union.html">Boston Restaurant Talk included Backbar&#8217;s URL</a>, but for some reason didn&#8217;t actually provide the link</a>.</p>
<img src="http://feeds.feedburner.com/~r/StephenLanielsUnspecifiedBunker/~4/Aw17n2Qx2yI" height="1" width="1"/>]]></content:encoded>
			<wfw:commentRss>http://stevereads.com/weblog/2011/12/31/because-backbar-in-somervilles-union-square-is-remarkably-un-webbable-i-give-the-world-this/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		<feedburner:origLink>http://stevereads.com/weblog/2011/12/31/because-backbar-in-somervilles-union-square-is-remarkably-un-webbable-i-give-the-world-this/</feedburner:origLink></item>
		<item>
		<title>College is really, really worth your money</title>
		<link>http://feedproxy.google.com/~r/StephenLanielsUnspecifiedBunker/~3/rfYrkYXpMHA/</link>
		<comments>http://stevereads.com/weblog/2011/10/24/college-is-really-really-worth-your-money/#comments</comments>
		<pubDate>Tue, 25 Oct 2011 02:36:54 +0000</pubDate>
		<dc:creator>slaniel</dc:creator>
				<category><![CDATA[Income distribution]]></category>

		<guid isPermaLink="false">http://stevereads.com/weblog/?p=7126</guid>
		<description><![CDATA[A discussion flared up on Facebook based around this article by Michael Ellsberg in the New York Times whose premise is that college isn&#8217;t worth the money, and that we&#8217;d be better off encouraging entrepreneurship. I happen to have been looking recently at the data on this. Let me give you a spoiler: it&#8217;s not [...]]]></description>
			<content:encoded><![CDATA[<p>A discussion flared up on Facebook based around <a href="http://www.nytimes.com/2011/10/23/opinion/sunday/will-dropouts-save-america.html?src=me&#038;ref=general">this article by Michael Ellsberg in the <span class="newspaper">New York Times</span></a> whose premise is that college isn&#8217;t worth the money, and that we&#8217;d be better off encouraging entrepreneurship.</p>

<p>I happen to have been looking recently at <a href="http://www.census.gov/hhes/www/income/data/historical/people/index.html">the data on this</a>. Let me give you a spoiler: it&#8217;s not even close. It&#8217;s worth the debt load. Here are the numbers:</p>

<ul>
<li><p>Median income for males with bachelor&#8217;s degrees, 2010: $55,038 (does not count those with <em>more than</em> a bachelor&#8217;s degree, like doctors or lawyers)</p></li>
<li><p>Median for males with associates degrees: $40,918</p></li>
<li><p>Median for males with some college, no degree: $36,082</p></li>
<li><p>Median for males who graduated from high school or got a GED: $30,232</p></li>
</ul>

<p>(I could obviously include numbers for women in here, too. I&#8217;m leaving them out only for brevity&#8217;s sake.)</p>

<p>The <a href="http://www.census.gov/hhes/www/income/data/historical/people/2010/P18_2010.xls">mean incomes</a> are similar, but even more striking:</p>

<ul>
<li>College degree, 2010, male: $70,567</li>
<li>High-school degree or equivalent, 2010, male: $36,755</li>
</ul>

<p>To dramatize this a bit, imagine I grabbed two men at random and asked them their incomes. The probability that the randomly selected college-educated male is earning more than the randomly selected high-school-educated male is about 74%. <a href="lognormal_note" name="lognormal_note_src">[1]</a>. I imagine that if I ran a similar simulation &#8212; whereby I simulate our two graduates after each has worked for 40 years, and add up their accumulated earnings &#8212; that the results would be even more stark.</p>

<p><a href="http://www.census.gov/prod/2011pubs/acs-14.pdf">Fortunately, the Census Bureau has already done that work for me</a>. On a quick scan, I can&#8217;t find &#8220;work-life earnings&#8221; for all males, so I&#8217;ll just compare white males. Over the course of his working life, a college-educated white male (specifically one with a bachelor&#8217;s degree, not a master&#8217;s degree, a professional degree, or a Ph.D.) will have earned about $2.3 million. His high-school-educated white-male partner will have earned $1.2 million.</p>

<p>I repeat: it&#8217;s not even close. It&#8217;s <em>so</em> not even close that I consider it irresponsible in the extreme for Ellsberg to cherry-pick some success stories (Steve Jobs, Bill Gates) and imply that students should strive to be like them, rather than encouraging them to take a rather more sure route to success. Had Ellsberg encouraged students, instead, to skip college and aim to be professional sports players, I hope we&#8217;d all be deeply offended. The piece he actually did write is no less offensive.</p>

<p><strong>P.S. (25 October 2011)</strong>: as various commenters have pointed out, this only shows correlation; it doesn&#8217;t show causation. It could well be that the people who have the drive to get a college degree are the same as those who have the drive to earn a lot of income &#8212; and that they&#8217;d earn a high income even without the college degree. It would be interesting to compare the lifetime earnings of those who got into college but chose not to go with those who got into college and went. I&#8217;ll see if I can find any interesting data in this direction later.</p>

<p><a href="lognormal_note_src" name="lognormal_note">[1]</a> &#8212; This is just an estimate. It&#8217;s based on a simplifying assumption, namely that the probability distribution of incomes is approximately lognormal (i.e., that the logarithm of income follows a Gaussian [bell-shaped] distribution). That assumption, combined with the estimated means and medians from the links above, gives the 74% number.</p>

<p>Thanks to <a href="http://cscs.umich.edu/~crshalizi/">Cosma Shalizi</a> for pointing me to a simple approximation to the true income distribution, and noting how I could go from the estimated means and medians to an estimated probability.</p>
<img src="http://feeds.feedburner.com/~r/StephenLanielsUnspecifiedBunker/~4/rfYrkYXpMHA" height="1" width="1"/>]]></content:encoded>
			<wfw:commentRss>http://stevereads.com/weblog/2011/10/24/college-is-really-really-worth-your-money/feed/</wfw:commentRss>
		<slash:comments>6</slash:comments>
		<feedburner:origLink>http://stevereads.com/weblog/2011/10/24/college-is-really-really-worth-your-money/</feedburner:origLink></item>
		<item>
		<title>Accounting gripes and the tyranny of trillions (part of an occasional series)</title>
		<link>http://feedproxy.google.com/~r/StephenLanielsUnspecifiedBunker/~3/EFt6kA5B194/</link>
		<comments>http://stevereads.com/weblog/2011/10/16/accounting-gripes-and-the-tyranny-of-trillions-part-of-an-occasional-series/#comments</comments>
		<pubDate>Sun, 16 Oct 2011 20:54:33 +0000</pubDate>
		<dc:creator>slaniel</dc:creator>
				<category><![CDATA[Taxation]]></category>

		<guid isPermaLink="false">http://stevereads.com/weblog/?p=7117</guid>
		<description><![CDATA[Matt Yglesias makes the entirely correct point that We Underinvest In Infrastructure Because We Overinvest In War, Health Care, And Low Taxes, along the way noting the various estimates of how much we need to be spending over the next N years on bridges, roads, and whatever else. Various organizations give us various numbers: “All [...]]]></description>
			<content:encoded><![CDATA[<p>Matt Yglesias makes the entirely correct point that <a href="http://thinkprogress.org/yglesias/2011/10/16/344996/we-underinvest-in-infrastructure-because-we-overinvest-in-war-health-care-and-low-taxes/?utm_source=feedburner&#038;utm_medium=feed&#038;utm_campaign=Feed%3A+matthewyglesias+%28Matthew+Yglesias%29">We Underinvest In Infrastructure Because We Overinvest In War, Health Care, And Low Taxes</a>, along the way noting the various estimates of how much we need to be spending over the next N years on bridges, roads, and whatever else. Various organizations give us various numbers:</p>

<blockquote>
  <p>“All of the numbers are so gargantuan large that they’re useless when you’re trying to communicate with the public,” said Roy Kienitz, undersecretary for policy at the Department of Transportation.</p>
  
  <p>The American Society of Civil Engineers has estimated that an investment of $1.7 trillion is needed between now and 2020 to rebuild roads, bridges, water lines, sewage systems and dams that are reaching the ends of their planned life cycles. The Urban Institute puts the price tag at $2 trillion.</p>
</blockquote>

<p>The fact that these numbers are so gargantuan is exactly why we shouldn&#8217;t be talking about them in raw terms. $2 trillion is an essentially unfathomable number. So let&#8217;s try it some other ways:</p>

<p><a href="http://www.irs.gov/taxstats/article/0,,id=102886,00.html">The IRS collected about $2.3 trillion in fiscal year 2009</a>, across personal income taxes, corporate taxes, Social Security taxes, the estate (&#8220;death&#8221;) tax, Medicare part A, various excise taxes, and so forth. <a href="http://www2.census.gov/govs/statetax/2010stcreport.pdf">Individual U.S. states collected about $704 billion in 2010</a>, of which 33.5% was income tax and a bit less was sales tax. Federal and state taxes altogether, then, come to about $3 trillion. So our $2 trillion infrastructure investment is about 2/3 of the country&#8217;s total tax bill. (The $3 trillion tax bill, to put that in some more perspective, comes out of a <a href="http://research.stlouisfed.org/fred2/graph/?g=2Of">$14 trillion GDP</a>. Taxes come to about 21% of GDP, in other words.)</p>

<p>U.S. 10-year Treasurys are available at <a href="http://research.stlouisfed.org/fred2/graph/?g=2Ob">historically low rates right now</a> &#8212; right around 2.5%. So let&#8217;s say the government borrowed $2 trillion today, and paid it off at 2.5% over the next ten years. How much would the monthly payment come to? (There is probably a lot of complexity about government financing that I don&#8217;t understand, but I&#8217;m treating this exactly like a mortgage with a 2.5% interest rate. Feel free to correct me if there&#8217;s some important nuance I&#8217;m missing.)</p>

<p>The monthly payment, it turns out, would be about $18.8 billion. This is getting more fathomable. And while the various governments&#8217; $3 trillion in receipts come from many classes of tax levied on many different types of people and businesses, let&#8217;s just simplify and say that there are 144.1 million taxpayers &#8212; which is the number of individual Federal income-tax returns. How much will each of those taxpayers have to pay every month to ensure that our bridges don&#8217;t collapse in a decade? The answer: $18.8 billion per month divided by 144.1 million taxpayers, or $130.43 per month.</p>

<p>Now <em>that</em> is a number I can understand. The cost of ensuring a non-crumbling infrastructure is $130.43 per person per month. How much of an increase is that over what we pay now? Well, we pay a total of $3 trillion per year, or a quarter-trillion per month, or about $1,731 per return per month. $130.43 is a 7.5% increase over what we pay now.</p>

<p>I can wrap my head around &#8220;my tax bill will increase by 7.5%.&#8221; The story gets even rosier if you consider that investors are currently willing to <a href="http://research.stlouisfed.org/fred2/graph/?g=2Oi">lend the Federal government money to be paid off in 30 years for about 3%</a>. That lowers the monthly payment to about $60 per person, which is about a 3.5% increase in overall taxes.</p>

<p>All of this assumes, recall, that every dime of the $2 trillion would be new money &#8212; money that we wouldn&#8217;t spend anyway. That is obviously false: if a bridge collapses, we&#8217;ll presumably repair it. And presumably there&#8217;s a lot of roadwork that we&#8217;d already be doing. But assuming it&#8217;s all new money, the average tax bill would go up by somewhere between 3.5% and 7.5%. I can wrap my head around the concept &#8220;my tax bill will increase by 5%,&#8221; much more than I can wrap it around &#8220;$2 trillion over the next decade.&#8221;</p>

<p>Note also that, if we somehow managed to get a lot of high-income people into this country, we could lower the per-person expense even more. What counts as &#8220;affordable&#8221; depends to a great extent upon how many people live in this country, because &#8220;per-person expense&#8221; has both a numerator and a denominator. There are two obvious ways to get more high-income people into this country: either (1) allow in any immigrant who has an employer to sponsor him or is looking to get a Ph.D., or (2) encourage native-born Americans to have more babies. Ideas for how to make either (1) or (2) happen will have to occupy another post at another time.</p>

<p>Trillions are unfathomable, so it&#8217;s important to find some way to put them in context to make them fathomable. Switching from aggregates to per-capita numbers is one quick way. Switching from &#8220;costs over ten years&#8221; to &#8220;cost per person per month&#8221; is another way. Percentages are another good measure: percent of GDP, say, or percent of current tax revenues. Otherwise we get stuck in massive-number fatigue, which helps no one (except maybe the political party which takes terrorizing you over the budget as its reason for being).</p>
<img src="http://feeds.feedburner.com/~r/StephenLanielsUnspecifiedBunker/~4/EFt6kA5B194" height="1" width="1"/>]]></content:encoded>
			<wfw:commentRss>http://stevereads.com/weblog/2011/10/16/accounting-gripes-and-the-tyranny-of-trillions-part-of-an-occasional-series/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		<feedburner:origLink>http://stevereads.com/weblog/2011/10/16/accounting-gripes-and-the-tyranny-of-trillions-part-of-an-occasional-series/</feedburner:origLink></item>
		<item>
		<title>The weakness of retrospective conservatism</title>
		<link>http://feedproxy.google.com/~r/StephenLanielsUnspecifiedBunker/~3/07tEpzsK2Io/</link>
		<comments>http://stevereads.com/weblog/2011/09/17/the-weakness-of-retrospective-conservatism/#comments</comments>
		<pubDate>Sat, 17 Sep 2011 19:01:29 +0000</pubDate>
		<dc:creator>slaniel</dc:creator>
				<category><![CDATA[New York Times]]></category>
		<category><![CDATA[Republican Party]]></category>

		<guid isPermaLink="false">http://stevereads.com/weblog/?p=7109</guid>
		<description><![CDATA[I don&#8217;t know why I made the mistake of reading David Brooks. This is a mistake that I&#8217;ve avoided making for so long. Why must I make it now? Anyway, I&#8217;ll be quick. Brooks&#8217;s point is basically that people expect their government to do massive social engineering and do it well, and that they should [...]]]></description>
			<content:encoded><![CDATA[<p>I don&#8217;t know why I made the mistake of reading <a href="https://www.nytimes.com/2011/09/16/opinion/brooks-the-planning-fallacy.html?_r=1&#038;hp">David Brooks</a>. This is a mistake that I&#8217;ve avoided making for <em>so long</em>. Why must I make it now?</p>

<p>Anyway, I&#8217;ll be quick. Brooks&#8217;s point is basically that people expect their government to do massive social engineering and do it well, and that they should rather expect it to fail: the systems government is engineering are just too massive to engineer them well. This is by way of telling us that government isn&#8217;t going to get us out of this recession, and that it&#8217;s foolhardy to expect that.</p>

<p>Let&#8217;s imagine it had gone the other way: Alan Greenspan had jacked up interest rates to prick the housing bubble a few years back, or any number of regulatory steps had been taken to tighten lending standards. Then Brooks would have nothing to talk about today.</p>

<p>Or go back to Hurricane Katrina. There were various conservative pundits, solemnly averring that the government&#8217;s disastrous response was just proof that central planning never works, and that people should never expect to get any help from anyone but themselves and their families. But had the government &#8212; at all levels &#8212; done its job, we never would have heard them claiming that this was proof of the government&#8217;s wisdom.</p>

<p>If we want to talk about the failures of central planning, let&#8217;s talk about war, or the DoD. There could be nothing more centralized, more hierarchical, or more literally regimented than the U.S. military &#8212; yet this is supposed to be why conservatives are all about the military. It&#8217;s a killing machine precisely because it is focused, like a massive machine, on the task of destroying other militaries.</p>

<p>So do we see David Brooks shaking his head from side to side as he sighs, telling us that war is not the answer because central planning never works? The closest we get to that is an apology, after the fact, for <a href="http://www.nytimes.com/2004/04/17/opinion/a-more-humble-hawk.html?pagewanted=all&#038;src=pm">having supported the invasion of Iraq</a>.</p>

<p>The best we can say, then, is that Brooks has learned his lesson, and will never again support conservative-friendly centralized government projects; he&#8217;ll be just as intolerant of conservative government causes as he is of liberal ones. We&#8217;ll just see about that.</p>
<img src="http://feeds.feedburner.com/~r/StephenLanielsUnspecifiedBunker/~4/07tEpzsK2Io" height="1" width="1"/>]]></content:encoded>
			<wfw:commentRss>http://stevereads.com/weblog/2011/09/17/the-weakness-of-retrospective-conservatism/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		<feedburner:origLink>http://stevereads.com/weblog/2011/09/17/the-weakness-of-retrospective-conservatism/</feedburner:origLink></item>
		<item>
		<title>H.W. Brands, Traitor to His Class: The Privileged Life and Radical Presidency of Franklin Delano Roosevelt</title>
		<link>http://feedproxy.google.com/~r/StephenLanielsUnspecifiedBunker/~3/UB0WaqM8HT8/</link>
		<comments>http://stevereads.com/weblog/2011/08/24/h-w-brands-traitor-to-his-class-the-privileged-life-and-radical-presidency-of-franklin-delano-roosevelt/#comments</comments>
		<pubDate>Thu, 25 Aug 2011 02:15:30 +0000</pubDate>
		<dc:creator>slaniel</dc:creator>
				<category><![CDATA[Traitor to His Class: The Privileged Life and Radical Presidency of Franklin Delano Roosevelt]]></category>

		<guid isPermaLink="false">http://stevereads.com/weblog/?p=7099</guid>
		<description><![CDATA[Delightful read. My main concern when reading a book like this is that it&#8217;s going to be fawning, and will subscribe to the retrospective superhero status that its subject has attained. Brands couldn&#8217;t avoid that entirely here, of course (he chose to write about FDR, so I have to imagine he doesn&#8217;t loathe the man), [...]]]></description>
			<content:encoded><![CDATA[<p><img src="http://stevereads.com/img/book_covers/traitor_to_his_class_smaller.jpg" width="164px" height="250px" alt="Black-and-white (though maybe with some bluish tones in the background) photo of Roosevelt, his teeth clamped down on a cigarette holder with a cigarette in it. The book's title is in rather scripty blue. Subtitle is in white. Author's name is also in white." class="insetrightborder" align="right" /></p>

<p>Delightful read. My main concern when reading a book like this is that it&#8217;s going to be fawning, and will subscribe to the retrospective superhero status that its subject has attained. Brands couldn&#8217;t avoid that entirely here, of course (he chose to write about FDR, so I have to imagine he doesn&#8217;t loathe the man), but he&#8217;s just about as forthright about the man as he could be.</p>

<p>Most everyone knows the FDR story by now, but maybe it&#8217;s worthwhile to briefly reveal the highlights. Scion of the Roosevelt clan, Teddy Roosevelt his fifth cousin. Assistant secretary of the navy during World War I. Crippled below the waist by polio and confined to a wheelchair for much of his life. Governorship of New York. Elected president in 1932 in the depths of the Great Depression after booting Hoover from office. Took the country off the gold standard. Closed the country&#8217;s banks during his first week in office. First 100 days created the New Deal. Domestic program foundered on his court-packing scheme, though it may have eventually helped him by holding a gun up to the Supreme Court&#8217;s head. Then Pearl Harbor, World War II, re-elected 3 times, and dead just months before the end of the war.</p>

<p>What a book like this brings to its subject is style, rather than much new information. Brands&#8217;s style is to let the subjects speak mostly for themselves: the ratio of quoted words to narrated words must be north of 1:1. Yet Brands stitches the quotes together effortlessly; it&#8217;s as though the characters themselves, and not Brands, were walking me through their lives.</p>

<p>Far from being fawning, I felt like Brands&#8217;s take on FDR&#8217;s leadership was slightly ambiguous. On many occasions &#8212; particularly whether to invade Europe through the north of France or the south of Italy first &#8212; it felt as though FDR sat quietly and hemmed and hawed until forced to make a decision. Sometimes his dithering may have served a strategic point: wait for someone else to make the first move, but steer their move so that they feel like they had more choice in the matter than they actually did. Other times he really did seem indecisive.</p>

<p>FDR left behind so little writing (in contrast to Churchill) that Brands often has to scrape around to describe the man&#8217;s inner life or his relations with others. The scraping occasionally goes too far, as when Brands describes what &#8220;must have&#8221; gone through FDR&#8217;s head. No one knows what must have gone through his head. No harm in speculation, but it&#8217;s just that.</p>

<p>Perhaps others already knew about Eleanor and Franklin Roosevelt&#8217;s relationship. I did not. In fact, I didn&#8217;t know a thing about Eleanor. She&#8217;s a thread weaving throughout the biography of FDR, of course, in spite of FDR&#8217;s best efforts. He cheated on her from early on with <a href="https://secure.wikimedia.org/wikipedia/en/wiki/Lucy_Page_Mercer_Rutherfurd">Lucy Mercer</a>, who was actually with him on the day he died and slipped away before the press could find out; Mercer may well have been the love of FDR&#8217;s life. His and Eleanor&#8217;s union was a loveless marriage of convenience that would have ended in divorce soon after she discovered the Mercer affair, had Eleanor not known that divorce would end Franklin&#8217;s career. So they stayed together, under the stipulation (whether this is a known fact or just a strong suspicion of Brands&#8217;s, I don&#8217;t remember) that they would never have sex again, and that essentially they would lead two separate lives. FDR continued his rise to the presidency, and Eleanor slowly escaped from the painful shyness that had enveloped her throughout her youth. By the end of Franklin&#8217;s life, Eleanor was a powerful public figure in her own right. FDR dominates the book as a world-historical figure, of course, but Eleanor is the more captivating person.</p>

<p>The title suggests that the book has more focus than it does. <span class="book">Traitor to His Class</span> doesn&#8217;t answer &#8212; or even come very close to answering &#8212; why a man from such exalted beginnings would care about the little people whom capitalism had steamrolled. It&#8217;s not clear that the book even tried to answer this &#8212; unlike, say, <a href="http://stevereads.com/weblog/category/caro-robert/">Robert Caro&#8217;s biography of Lyndon Johnson</a>, whose organizing question is: why did a man who was so famous as a power-hungry political ball-buster do so much for people who could do nothing to aid his rise, <em>particularly</em> after he&#8217;d reached the summit? <span class="book">Traitor to His Class</span> isn&#8217;t like that; it&#8217;s a straightforward, and straightforwardly enjoyable, biography of one of the 20th century&#8217;s greatest men.</p>
<img src="http://feeds.feedburner.com/~r/StephenLanielsUnspecifiedBunker/~4/UB0WaqM8HT8" height="1" width="1"/>]]></content:encoded>
			<wfw:commentRss>http://stevereads.com/weblog/2011/08/24/h-w-brands-traitor-to-his-class-the-privileged-life-and-radical-presidency-of-franklin-delano-roosevelt/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		<feedburner:origLink>http://stevereads.com/weblog/2011/08/24/h-w-brands-traitor-to-his-class-the-privileged-life-and-radical-presidency-of-franklin-delano-roosevelt/</feedburner:origLink></item>
		<item>
		<title>Catching up on reviews</title>
		<link>http://feedproxy.google.com/~r/StephenLanielsUnspecifiedBunker/~3/8BOl3wBwOHU/</link>
		<comments>http://stevereads.com/weblog/2011/08/21/catching-up-on-reviews/#comments</comments>
		<pubDate>Mon, 22 Aug 2011 02:10:10 +0000</pubDate>
		<dc:creator>slaniel</dc:creator>
				<category><![CDATA[Bismarck: A Life]]></category>
		<category><![CDATA[Economics of Enough, The: How to Run the Economy as if the Future Matters]]></category>
		<category><![CDATA[Elusive Quest for Growth: Economists' Adventures and Misadventures in the Tropics]]></category>
		<category><![CDATA[Farewell to Alms, A: A Brief Economic History of the World]]></category>
		<category><![CDATA[Globalization Paradox, The: Democracy and the Future of the World Economy]]></category>
		<category><![CDATA[Myth of Continents, The: A Critique of Metageography]]></category>
		<category><![CDATA[Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty]]></category>
		<category><![CDATA[Understanding the European Union: A Concise Introduction]]></category>
		<category><![CDATA[Visible Hand, The: The Managerial Revolution in American Business]]></category>

		<guid isPermaLink="false">http://stevereads.com/weblog/?p=7066</guid>
		<description><![CDATA[(Attention conservation notice: 4000+ words, spread across reviews of eight books [9th forthcoming] that I&#8217;ve neglected to review over the last four months.) I&#8217;ve been remarkably derelict in my book-reviewing duties of late, as the long row of book covers up above will suggest. Work, and life, and going on vacation without my computer, all [...]]]></description>
			<content:encoded><![CDATA[<p><img src="http://stevereads.com/img/book_covers/globalization_paradox_small.jpg" width="67px" height="100px" alt="Rather brilliant white background. Book title and author's name in gold. Vivid blue subtitle at the top right. A ball of string with the globe painted on it at the left. There's a bit of the string hanging off the ball, running off the right side of the cover." />
<img src="http://stevereads.com/img/book_covers/elusive_quest_for_growth_small.jpg" width="64px" height="100px" alt="The page is divided in two. In the top half is an ornate-looking map of the world, with some kind of navigation device laid on top, as though someone is plotting a trip. In the bottom half is a photo of palm trees. The book's title and subtitle are overlaid on the bottom half, and the author's name is in a capsule at the intersection of the two halves." />
<img src="http://stevereads.com/img/book_covers/farewell_to_alms_small.jpg" width="66px" height="100px" alt="Farewell to Alms cover: a pleading hand reaching out from a black box in the middle of the cover" />
<img src="http://stevereads.com/img/book_covers/poor_economics_small.jpg" width="66px" height="100px" alt="Pieces of string knotted intricately (and beautifully) together at the bottom-left side of the page. A green string goes up the vertical axis from there; a purple string goes out the horizontal axis; and a yellow string follows the y=x line." />
<img src="http://stevereads.com/img/book_covers/bismarck_a_life_small.jpg" width="66px" height="100px" alt="Black-and-white painting (photo?) of the Iron Chancellor in his rather old age: all jowly and sunken-eyed." />
<img src="http://stevereads.com/img/book_covers/economics_of_enough_small.jpg" width="66px" height="100px" alt="Brilliant blue sky in the background, extraordinary compact city-on-a-hill in the foreground. Supposed to look like the famous painting of Babel." />
<img src="http://stevereads.com/img/book_covers/visible_hand_small.jpg" width="68px" height="100px" alt="The most boring imaginable cover: beige background, 'Visible Hand' in red text, 'The Managerial Revolution in American Business' in black text, and the author's name in white text. The end" />
<img src="http://stevereads.com/img/book_covers/understanding_the_european_union_small.jpg" width="67px" height="100px" alt="Red box at the top right, containing the book's title and the author's name in white type; yellow stars circle the red box. Everything is set atop a blue field. The book cover is supposed to resemble the EU flag." />
<img src="http://stevereads.com/img/book_covers/myth_of_continents_small.jpg" width="67px" height="100px" alt="A deep rich green background. An old-time map (of the world, one supposes) is watermarked into the background. At the bottom of the page, at the center, is a black box surrounded by a broken red line. The title of the book, and its authors' names, are in the black box. At the very bottom of the box is the top of what looks like another old-time map, printed in the same shade of red as the broken line." /></p>

<p>(<strong>Attention conservation notice</strong>: 4000+ words, spread across reviews of eight books [9th forthcoming] that I&#8217;ve neglected to review over the last four months.)</p>

<p>I&#8217;ve been remarkably derelict in my book-reviewing duties of late, as the long row of book covers up above will suggest. Work, and life, and going on <a href="http://stevereads.com/weblog/2011/06/19/i-hate-the-word-staycation-however/">vacation</a> without my computer, all have gotten in the way of writing here. So let&#8217;s see what we can do to remedy that, eh?</p>

<p>First, I must apologize a little: it&#8217;s been weeks or months since I&#8217;ve read these books, so I&#8217;m likely going to be remembering things incorrectly. I hope I convey the essences correctly.</p>

<p>Clark&#8217;s, Easterly&#8217;s, and Banerjee&#8217;s/Duflo&#8217;s books need to be described as a group, I think, both because I read them in the sequence listed; and because that sequence, coincidentally, was a really good order in which to read them.</p>

<ul>
<li><strong>Gregory Clark</strong>, <span class="book">A Farewell to Alms: A Brief Economic History of the World</span>.</li>
</ul>

<p>Clark&#8217;s goal is noble and grand. He&#8217;s trying to explain, first of all, that the Industrial Revolution really was an astonishing break with the rest of history up to that moment. Here&#8217;s the money chart from near the beginning of the book:</p>

<p><img src="http://stevereads.com/img/per_capita_income_great_divergence_from_farewell_to_alms.png" width="500px" height="341px" alt="Graph of per-capita income from 1000 BC to the present. 1800's per-capita income is set to 1. By that measure, humanity's per-capita income hovered around 1 for ALL OF TIME up to 1800. At that moment, there was a sudden break, where parts of the world skyrocketed off to 12 on that scale, and others (in the developing world) remained in the Malthusian trap: doomed to increase their population whenever income increased a little bit." /></p>

<p>Something decisive and quite extraordinary happened in 1800. Some nations took off and escaped the &#8216;Malthusian trap&#8217;; others didn&#8217;t. Explaining why this &#8216;great divergence&#8217; (to use the phrase that Clark borrows from <a href="http://www.amazon.com/Great-Divergence-Europe-Making-Economy/dp/0691090106">Pomerance</a>) happened is the book&#8217;s main project.</p>

<p>What is this &#8216;Malthusian trap&#8217;? It&#8217;s what happens to many families when they get a little more money: they have more kids. Those kids are supposed to work on the farm with their families. But there they run into the law of diminishing returns: each additional person trying to work the same fixed amount of land will generate less output than the previous person. The first person working a field may not have enough brawn to tend to all of it, so he&#8217;ll focus on the parts that get him the maximum return for his labor. Maybe he marries and his wife helps out; even if she&#8217;s as strong as he is, she&#8217;s unlikely to extract any more from the land than he did (if he could have extracted more, why wasn&#8217;t he already doing so?). And so forth: each additional laborer extracts less. But now there are more people to feed. So the total amount of food per capita has now gone down. The Malthusian trap is the tendency, among pre-industrial societies, to wipe out any gains from increased income by having more kids.</p>

<p>This leads Clark down the road that led economics to be called, centuries ago, the &#8220;dismal science&#8221;: the best thing that happened to pre-industrial societies, according to Clark, was for their population to be wiped out by the plague. This is why the world loves economists.</p>

<p>How did parts of the world get out of the Malthusian trap? Sheer dumb luck, according to Clark, as well as &#8212; and here&#8217;s where I found the book highly distasteful &#8212; genetics. The dumb luck part was an influx of resources from the new colonies abroad, like the United States. But that doesn&#8217;t explain all the difference, says Clark. He claims that the only available explanation is that the British, by 1800, had ruthlessly selected for the bourgeois virtues. That is, their superiority was genetic. Over the preceding hundreds of years, in Britain more than elsewhere, the wealthy had had more kids than the poor. By contrast, the wealthy everywhere else had been &#8212; and continued to be &#8212; subject to the Malthusian trap: the children of the wealthy tended to become <em>less</em> wealthy than their parents. In Britain around 1800, the wealthy had also inherited various behaviors that the poor had not. The wealthy, for instance, saved for a rainy day, and were ready to invest when investment opportunities arose. The poor had been selected against, and those who remained did what they needed to inherit the earth.</p>

<p>Clark has many, many charts to back this up. They come from obscure corners of British historical recordkeeping, and the data-analytic work he did here is certainly worthy of great respect. I imagine him spending many, many hours in the basements of old British churches, carefully turning through brittle yellow pages to determine the birth rate among, say, medieval British landowners and early-industrial-era textile-plant owners.</p>

<p>That said, you know that old line about the drunk guy fumbling around underneath the lamppost looking for his keys? A passerby asks him why he thinks his keys are there, and the drunk man replies that they&#8217;re not there, but that beneath the lamppost is the only place where he can see? Clark&#8217;s book is a lot like that. Only here it&#8217;s Anglophone recordkeeping rather than a lamppost, and an explanation for the Industrial Revolution rather than keys.</p>

<p>Given where he ends up &#8212; that white people in Britain c. 1800 had been bred to be the perfect bourgeois &#8212; it&#8217;s hard for me to escape the conclusion that the data didn&#8217;t lead him there. I&#8217;m pretty sure that&#8217;s where he <em>wanted</em> to end up.</p>

<p>A book like this is never a pure historical exercise, because it leads inevitably to the question: when some countries escape from the Malthusian trap in the modern era and others don&#8217;t, why is that? What did Japan do? What did the Soviet Union do? Korea? Hong Kong? China? How about countries that haven&#8217;t done so well &#8212; Nigeria, say, or Kenya or Haiti. I&#8217;ll say up front that I&#8217;ve not engaged with the data on these countries in the way that Clark has with Britain&#8217;s. But these are not trivial counterexamples. If the &#8220;they inherited bourgeois instincts from their parents&#8217; good genes&#8221; story doesn&#8217;t hold for them, then it&#8217;s not much of a story. At that point it becomes a story that worked for one small island at one point in history but doesn&#8217;t hold up for most of the interesting cases.</p>

<p>So at best, I&#8217;m willing to put <span class="book">A Farewell to Alms</span> on the &#8220;lots of people have lots of stories about how the world works&#8221; pile.</p>

<ul>
<li><strong>William Easterly</strong>, <span class="book">The Elusive Quest for Growth: Economists' Adventures and Misadventures in the Tropics</span>. </li>
</ul>

<p>Easterly&#8217;s scope is more narrow: why has aid to poor countries done so little good? His big theme is that people respond to incentives, and that most aid creates exactly the wrong incentives. In the era right after World War II, rich countries thought that poor countries needed infusions of capital to get past the Malthusian trap: they get the capital, they build factories, and then they leave behind their pasts as centers of extractive industry. The amount of capital they received in aid was proportional to just how poor they were: the poorer you are, the more aid you receive. This gives poor countries no incentive to get out of their poverty traps: the wealthier they get, the less aid they get. The results were predictable.</p>

<p>The next story, according to Easterly, was that education was the thing: if only people could get educated, they&#8217;d dig their way out of their slough and all will be well. That also turned out not to be true.</p>

<p>Well, so what&#8217;s the issue? What&#8217;s actually holding poor countries back? Again Easterly returns to incentives, this time in a different form. Suppose you&#8217;re in a society weakened by official corruption: in order to get anything done, you need to bribe someone. Any one person who tries to buck the system by not paying bribes will be defeated, and the system will continue as it was. Or on the other, more hopeful side, consider a country having trouble attracting investment. It gets a little investment, which funds something like a new factory; now there are a few people in the poor country who know about how to run factories. Their knowledge spreads to those around them, and now there&#8217;s the potential for still more investment. Negative social structures lead to vicious cycles; positive developments lead to virtuous ones. There exist poverty traps, in other words. The existence of such traps is the fundamental problem. Easterly is extremely skeptical about the ability of (even well-run) foreign aid to fix the problem.</p>

<p>One thing he doesn&#8217;t discuss, though I&#8217;m sure it&#8217;s occurred to him, is the possibility that the best thing wealthy countries could do for poor ones is allow more immigration from poor countries. As <a href="http://stevereads.com/weblog/2011/02/26/edward-glaeser-triumph-of-the-city-how-our-greatest-invention-makes-us-richer-smarter-greener-healthier-and-happier/">Ed Glaeser says</a>, the point should be not to help poor <em>places</em>, but rather help poor <em>people</em>. If people believe it&#8217;s in their best interests to move to the United States, that might be the very best thing we could do for them. Though there&#8217;s an <a href="http://stevereads.com/weblog/2010/08/23/albert-o-hirschman-exit-voice-and-loyalty-responses-to-decline-in-firms-organizations-and-states/">exit and voice problem</a> that we might cause, in that case: the most motivated, most intelligent people in a country might choose to leave; those people are the very ones who stand the best chance of helping the poor country out of its morass.</p>

<ul>
<li><strong>Abhijit V. Banerjee and Esther Duflo</strong>, <span class="book">Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty</span>.</li>
</ul>

<p>This was a breath of fresh air after the previous two books. Recall that the first book in the triumvirate was about how certain nations might be genetically predisposed to remain poor for all time; the second was about how foreign aid doesn&#8217;t work because nations are stuck in poverty traps. Banerjee and Duflo instead get right down in the muck and ask what, specifically, works and what doesn&#8217;t to make individual people&#8217;s lives &#8212; not the life of a whole country, necessarily; just the lives of individual people &#8212; better. With the realization that no one person can make a government less corrupt or make the incentives for investment any stronger, how do we improve the lives of poor people? <span class="book">Poor Economics</span> is a long collection of results that the authors have accumulated over decades of working on the ground in many foreign countries. This is work for which Duflo recently <a href="http://web.mit.edu/newsoffice/2010/duflo-clark-0423.html">won the prestigious John Bates Clark medal in economics</a>. How much should we charge for anti-malarial nets around beds, for instance? Does giving such nets away for free make people use them less (because the nets&#8217; costlessness makes them seem valueless)? How, specifically, can we get people to use such nets more? How can we encourage people to use condoms? How do we improve individual schools in individual countries? The answers are unlikely to be one-size-fits-all: what works in India may well not work in Brazil.</p>

<p>Banerjee&#8217;s and Duflo&#8217;s main innovation is their <em>method</em> for answering these questions: the randomized controlled trial. I would have thought that this was already a standard tool within the international-aid community, but apparently it&#8217;s not. RCTs are the gold standard of experimental work within science, and now Banerjee and Duflo are bringing them to international aid. Their catalog of RCT results, in <span class="book">Poor Economics</span>, is tremendously interesting and vibrantly written. Highly recommended.</p>

<ul>
<li><strong>Martin W. Lewis and K&auml;ren E. Wigen</strong>, <span class="book">The Myth of Continents: A Critique of Metageography</span>.</li>
</ul>

<p>You may have noticed that there&#8217;s no real reason why Europe ought to be called a continent. As a landmass, there&#8217;s virtually nothing to distinguish it from Asia. You can walk from Africa to Europe. For that matter, what about the artificial North America/South America divide? If we&#8217;re dividing up the world on the basis of geography (as opposed to culture, language, etc.), there ought to be one thing called &#8220;Eurafricasia&#8221; and another called &#8220;America.&#8221;</p>

<p>We might, however, decide that cultural divisions are legitimate ways to cut up the world. Fine, then, so where does European culture end and Asian culture begin? Greece has always straddled the boundary. Turkey wants to be part of the European Union, but it&#8217;s more Ottoman than Western European. The dividing line between Eastern Europe and western Asia is essentially arbitrary.</p>

<p>Spend enough time reviewing all the exceptions and mis-categorizations, and you come to realize just how senseless a lot of these divisions are. Spend enough time <em>with Lewis and Wigen</em>, and you realize that not only are the distinctions arbitrary; they also change over time depending upon ideological and political need.</p>

<p>I&#8217;ve heard this sort of approach described as &#8220;deconstruction&#8221;: the demonstration that any system of categorization is essentially arbitrary. The authors don&#8217;t intend to be nihilist; they would just like a <em>better</em> way of dividing up the world that reflects natural divisions rather than ideological priors. They&#8217;re rather more successful dismantling the old system than replacing it with a new one, but the book is mostly intended to get the discussion going: how should we teach geography so that students don&#8217;t believe, for instance, that there&#8217;s a concept called &#8220;Africa,&#8221; when North Africa and sub-Saharan Africa have, historically, had very little contact? One profitable way of dividing up the world would be by historical lineage and cultural connection; if we did it this way, then North America would be connected with Western Europe, and Muslim countries the world over (North Africa, the &#8220;Middle East&#8221; [a very new concept], Indonesia, &#8230;) would count as a single unit.</p>

<p>The book is terribly fascinating, eye-opening, and educational, if a bit too academic. Even the title: bless their hearts, someone should have told the authors that if they wanted to at least double their sales, they could have dispensed with a word like &#8220;metageography&#8221; and replaced it with something that gets the idea across more clearly. &#8220;Geographic categories,&#8221; maybe. Better yet, how about &#8220;mental maps&#8221;?</p>

<p>Still, it&#8217;s definitely worth a read. I hope their project succeeds.</p>

<ul>
<li><strong>Alfred D. Chandler, Jr.</strong>, <span class="book">The Visible Hand: The Managerial Revolution in American Business</span>.</li>
</ul>

<p>This book is canonical by now. It&#8217;s an explanation of how U.S. business evolved from the start of the Republic until the final evolution into Big Business. To radically condense the book, the story goes like this: when the country was founded, the idea of a &#8220;corporation&#8221; as we think of it today didn&#8217;t exist. If people wanted to build a bridge, they chartered a partnership, built the bridge, and disbanded the partnership. Then the railroads came. (I&#8217;ve only realized in the last year or so that railroads changed everything.) Suddenly coordination on a large scale was necessary: if you want to connect your tracks to my tracks, we need to make awfully sure that your trains and my trains don&#8217;t occupy the same spot of track at the same time. This required coordination on a national scale. It required precisely constructed timetables. It required staffs that mastered the finer points of scheduling, spare parts, repairs, and so forth. It required a vast quantity of capital that couldn&#8217;t be assembled by the old partnership method; access to the great New York City capital markets was indispensable.</p>

<p>As <a href="http://stevereads.com/weblog/category/books/cronon-william/natures-metropolis-chicago-and-the-great-west/"><span class="book">Nature's Metropolis</span></a> laid out so brilliantly, the railroad allowed an unprecedented degree of centralization. Rather than buying meat from your local butcher, cows were now slaughtered, eviscerated, and prepared for sale in Chicago, then packed on ice-filled trains and shipped east. Great factories were assembled for the slaughter and shipment of meat. Likewise for oats and wheat.</p>

<p>Now the economic problem facing modern man was not what it had been since the dawn of time; rather than a problem of limited supply trying to feed too many mouths, it was a problem of too much supply and not enough demand. Markets had to be created. The whole concept of breakfast cereal came about as a way to create demand for the output of the great grain-processing factories. Marketing became essential.</p>

<p>Now who would do the marketing? Specialized marketing firms didn&#8217;t have the same incentives as the grain manufacturers; they didn&#8217;t have the fire in the belly to get cereal out the door. So corporations took marketing in-house. In this way the makers of primary commodities moved closer to the consumer. At the same time, their factories&#8217; need for constant production required a steady supply of raw ingredients. Companies moved to control the flow of goods, all the way from crops to customers, in order to keep production running smoothly.</p>

<p>And this is where we are today: in a world of massive, vertically integrated corporations &#8212; the Procter &amp; Gambles, the Dow Chemicals, the General Millses &#8212; that control the flow of goods from field to mouth. Chandler documents this evolution grippingly, if at times in excessive detail. But that&#8217;s fine: his book is the first and last word on the evolution of American business, and it will remain a monument as long as people still care about that subject.</p>

<ul>
<li><strong>Diane Coyle</strong>, <span class="book">The Economics of Enough: How to Run the Economy As If The Future Matters</span>.</li>
</ul>

<p>Oh how I hated this book. The margins are filled with my yelling at the author. Please don&#8217;t buy it.</p>

<p>There are a number of unconnected ideas in this book. We&#8217;re in a &#8220;weightless economy,&#8221; she says, where we increasingly are buying electronic goods or things like movie tickets that don&#8217;t correspond to any tangible thing. This premise is not demonstrated; it&#8217;s just asserted. There are entire pages (I&#8217;m thinking of pp. 197-198 in particular &#8212; probably my least favorite two pages in a nonfiction book ever) given over to anecdata, which is the closest she gets to coherently arguing anything.</p>

<p>Sorry, I&#8217;m getting off track. It&#8217;s going to be hard for me to calmly lay out the structure of the book without reliving the pain of reading it. So anyway, we&#8217;re in a weightless economy now. It&#8217;s been revolutionized by information technologies. This is asserted rather than argued. (A good case could be made, by a better author, that <a href="http://stevereads.com/weblog/2011/03/13/marc-levinson-the-box-how-the-shipping-container-made-the-world-smaller-and-the-world-economy-bigger/">shipping containers were the real revolution</a>.) The new world of information technology allows for longer supply chains (paths from component parts to the ultimate consumer). This is asserted rather than argued. (She would need to argue that supply chains are longer than they used to be, and that they&#8217;re longer because of information technologies. She does neither.) These longer supply chains mean that we need to trust everyone more. This is plausible but not argued.</p>

<p>Meanwhile, we have some big long-term economic problems. We have commitments to retirees that we&#8217;re unlikely, she says, to meet. Why this might be so is unclear, and she doesn&#8217;t argue it: the United States is very wealthy, and our tax burden is low. <a href="http://stevereads.com/weblog/2011/03/18/there-is-no-social-security-crisis/">Eliminating the cap on Social Security payroll taxes would entirely close the funding gap</a>.</p>

<p>I think that&#8217;s what gets me the most about this book: the depth of her analysis is no greater than that of a blog, but instead I had to slog through a book-length padded-out argument that doesn&#8217;t even make sense. She spends entire pages dishing out anecdata that don&#8217;t even begin to constitute an argument.</p>

<p>The argument that <em>does</em> make sense is that we have long-term problems like global warming, and that these require global institutions to coordinate responses to them. That could make sense: maybe nations will be unwilling to lower their CO<sub>2</sub> emissions unless other nations do, too; and since every nation feels the same way, no nation moves to reduce its emissions. This needn&#8217;t <em>necessarily</em> be the case: maybe a world of lower CO<sub>2</sub> emissions will be a world where we shift our resources into new technologies, new industries, new lifestyles that make the world better for everybody. Maybe a country that moves first into inventing these new industries will get an important leg up on every other nation. This isn&#8217;t a possibility that Coyle covers.</p>

<p>She&#8217;s compelled to turn everything into a Big Problem. Social Security couldn&#8217;t possibly be made solvent by eliminating the cap on income subject to the payroll tax; if it could be, her book would be very short indeed. All of <span class="book">The Economics of Enough</span> is like that: someone who thinks like an engineer, with an eye to actually solving problems (like Esther Duflo, above) wouldn&#8217;t write a book like this.</p>

<p>The final irony on all of this is that I have absolutely no idea what &#8220;The Economics of Enough&#8221; means after reading this book. Does it mean &#8220;the era when we need to stop economic growth to keep our lifestyle sustainable&#8221;? No, it pretty manifestly does not mean that; Coyle establishes early on that increased wealth <em>does</em> make people happier, and that we&#8217;d be, if nothing else, politically in the wrong to demand of developing countries that they not experience the prosperity that the West has long enjoyed. I have no idea what we&#8217;re supposed to have &#8220;Enough&#8221; of.</p>

<p>To borrow a line <a href="http://rogerebert.suntimes.com/apps/pbcs.dll/article?AID=/19961129/REVIEWS/611290303/1023">from Roger Ebert</a>, <span class="book">The Economics of Enough</span> should be cut into free ukelele picks for the poor. </p>

<ul>
<li><strong>Jonathan Steinberg</strong>, <span class="book">Bismarck: A Life</span>.</li>
</ul>

<p>This is a very good <em>personal</em> portrait of the Iron Chancellor &#8212; the man responsible for uniting Germany. This is the man famous for his theory of <span class="foreign">realpolitik</span>: an amoral foreign policy that seeks what&#8217;s best for his nation, paying no heed to scruples along the way.</p>

<p>As Steinberg tells it, Bismarck succeeded because he always had the ear of the king; when he lost his royal sponsor, upon the ascension of Wilhelm II to the throne of the German Empire, he lost his job. Steinberg makes much of Bismarck&#8217;s relations with his own mother and father, and how those relations led quite directly to his father-son-style relations with the various German kings. Bismarck continually threatened to resign, and when he did he would be overtaken with endless physical ailments. Steinberg spends rather more time on Bismarck&#8217;s psychology than I would have preferred.</p>

<p>The book I want to read, I think, would actually start before Bismarck and end after. It would start with Europe after Napol&eacute;on has been decisively defeated and exiled to St. Helena, as the continent strove to rebuild a new political order on the shattered remnants of the old; this era, up to Bismarck and thereabouts, is covered quite brilliantly, and in exactly the style I want, in Henry Kissinger&#8217;s Ph.D. thesis, <a href="http://www.amazon.com/World-Restored-Metternich-Castlereagh-1812-1822/dp/0395172292"><span class="book">A World Restored</span></a>. The book I&#8217;m envisioning would situate Bismarck within his post-Napoleonic century and follow post-unification Germany all the way to World War I and possibly World War II. I&#8217;m looking for a portrait of modern Germany, I guess.</p>

<p>Steinberg <em>does</em> situate Bismarck within a larger context, but that context is the Junker landowning class into which Bismarck was born. He has less to say about the detailed politics and foreign relations among German states in the wake of Napoleon, as the major European states sought to create a true conservative balance of powers. Steinberg is more interested in Bismarck the man, with his stress-induced facial neuralgias and frequent taking of healing waters.</p>

<p>It&#8217;s hard to leave this book with positive feelings toward Bismarck. He was clearly a vain, easily wounded, egomaniacal man, but nonetheless a world-historically brilliant one. Steinberg makes me want to read more about him and about the country he created, but Steinberg&#8217;s own book is not the final word.</p>

<p>(For what it&#8217;s worth, Henry Kissinger himself, who surely knows more about Germany and <span class="foreign">realpolitik</span> than I do, <a href="https://www.nytimes.com/2011/04/03/books/review/book-review-bismarck-by-jonathan-steinberg.html?pagewanted=all">calls</a> Steinberg&#8217;s book &#8220;the best study of its subject in the English language.&#8221;)</p>

<p><strong>P.S. (September 5, 2011)</strong>: Looks like the book I want is <a href="http://www.amazon.com/o/ASIN/0674023854/?tag=matthygles-20">Iron Kingdom: The Rise and Downfall of Prussia, 1600-1947</a></p>

<ul>
<li><strong>John McCormick</strong>, <span class="book">Understanding the European Union: A Concise Introduction</span>.</li>
</ul>

<p>Having read this, I feel like I understand in broad outline the way that the EU works. I understand why EU regulation seems to cover such tiny details: in order to lower transaction costs between nations, bring greater unity, and not unfairly disadvantage any one country, the Union must regulate in great detail. I understand that the EU is engaging in valiant efforts to bring the poorer countries up to the standards of the wealthiest countries. The ultimate goal of all of this is, or was, to prevent war between nations from tearing Europe apart, as it did twice in the 20th century. Treat every European nation (whatever &#8220;Europe&#8221; means &#8212; this book and <span class="book">The Myth of Continents</span> cover some of the same ground) as part of the same family, and prevent one nation from coveting another&#8217;s wealth, and maybe you prevent war. Maybe. I also understand from this book that European regulators have had a very hard time explaining to their countries what the EU does. I still don&#8217;t get the precise boundaries of the institutions, though McCormick did his best.</p>

<p>This was basically the first promising book I found through one Google search or another, so that I could understand what exactly is going on right now in Europe. Various countries are bailing out various other countries, and various bloggers have been writing that European monetary policy is &#8220;one size fits none&#8221;: it&#8217;s not even the right fit for the German economy. I had to assume that when Europe went on the single currency, its planners knew that something like this could happen. I hoped that McCormick could explain how Europeans envisioned a crisis resolving itself.</p>

<p>Unfortunately I didn&#8217;t really get an explanation of that topic &#8212; which is unfortunate, because that must be what most Americans want to know about Europe right now. The book came out in 1999 and was updated in 2002, so it was far away from the current day&#8217;s crisis. Time to look for another book that explains the origins of the current European mess.</p>

<ul>
<li><strong>Dani Rodrik</strong>, <span class="book">The Globalization Paradox: Democracy and the Future of the World Economy</span>. </li>
</ul>

<p>[Will add this soon.]</p>
<img src="http://feeds.feedburner.com/~r/StephenLanielsUnspecifiedBunker/~4/8BOl3wBwOHU" height="1" width="1"/>]]></content:encoded>
			<wfw:commentRss>http://stevereads.com/weblog/2011/08/21/catching-up-on-reviews/feed/</wfw:commentRss>
		<slash:comments>1</slash:comments>
		<feedburner:origLink>http://stevereads.com/weblog/2011/08/21/catching-up-on-reviews/</feedburner:origLink></item>
		<item>
		<title>I still need someone to explain to me what problem Google Plus solves, and why it’s not creating other problems that I find way more annoying</title>
		<link>http://feedproxy.google.com/~r/StephenLanielsUnspecifiedBunker/~3/kfy1a669uU4/</link>
		<comments>http://stevereads.com/weblog/2011/07/19/i-still-need-someone-to-explain-to-me-what-problem-google-plus-solves-and-why-its-not-creating-other-problems-that-i-find-way-more-annoying/#comments</comments>
		<pubDate>Wed, 20 Jul 2011 00:00:30 +0000</pubDate>
		<dc:creator>slaniel</dc:creator>
				<category><![CDATA[Facebook]]></category>
		<category><![CDATA[Google]]></category>

		<guid isPermaLink="false">http://stevereads.com/weblog/?p=7051</guid>
		<description><![CDATA[I am now on Google+, because men of my ilk are required to join new services such as this. But it is not solving a problem I have. It&#8217;s just creating more problems. I left Twitter some months ago, because my workflow was like this: post to Twitter. have the post automatically mirrored to Facebook. [...]]]></description>
			<content:encoded><![CDATA[<p>I am now on Google+, because men of my ilk are required to join new services such as this. But it is not solving a problem I have. It&#8217;s just creating more problems.</p>

<p>I left Twitter some months ago, because my workflow was like this:</p>

<ol>
<li>post to Twitter.</li>
<li>have the post automatically mirrored to Facebook.</li>
<li>flip over to Facebook to make sure that the post replicated.</li>
<li>if it took more than a minute to replicate, refresh a few times before giving up with an odd, low-level form of nervousness.</li>
</ol>

<p>I was connected to all the same people on Twitter that I was connected to on Facebook. Granted, there were others on Twitter who were not on Facebook, like famous people or, to put it another way, people with whom the interaction was expected to be more one-way. I followed Chris Onstad, author of <a href="http://achewood.com/">Achewood</a>, for instance. It was fun. His <a href="https://twitter.com/#!/achewood">Twitter feed</a> is hilarious. I followed the author of <a href="http://stevereads.com/weblog/2009/07/12/justin-fox-the-myth-of-the-rational-market-a-history-of-risk-reward-and-delusion-on-wall-street/">a book I really loved</a>, and to my great surprise and pleasure he connected me with the <span class="newspaper">Boston Globe</span> to write <a href="http://articles.boston.com/2010-10-26/bostonglobe/29330676_1_information-age-health-care-debate-twitter">a piece for them</a>. So I can definitely say that Twitter was good for my wallet.</p>

<p>But it was also really distracting, for reasons I laid out in that piece. And I don&#8217;t have the self-control to be connected to two social networks and yet only check them occasionally. Nor do I have the self-control to prevent myself from refreshing email dozens of times a day. Email by now is in fact a reflex. But at least email isn&#8217;t getting new updates constantly. And the fun of Twitter is following lots of interesting people saying lots of interesting things. It was <em>too</em> fun, honestly. Sad to say. It&#8217;s taken me until age 33 to realize that I actually have to talk myself down from unhealthy habits; I literally have to say to myself, &#8220;Yes, you want a milkshake from <a href="http://www.tosci.com/">Toscanini&#8217;s</a> made with burnt-caramel ice cream and a shot of espresso. But 1) those are empty calories, 2) you can use that $5 for something better, 3) you&#8217;re trying to cut down on your caffeine intake, aren&#8217;t you?&#8221; I probably should have been doing this throughout my life. In any case, I&#8217;m starting now, and it seems to be working.</p>

<p>So I ended up thinking that it was better to concentrate on one social network, namely Facebook, and ditch the rest. Really, it&#8217;s probably best to go with zero social networks, but Facebook is essentially inevitable now. Many websites require you to use a single-sign-on platform, and OpenID is dead; Facebook is the only one left. Google, as I recall, tried OpenID. OpenID sucked. So a Facebook account is &#8230; well, &#8220;necessary&#8221; isn&#8217;t the word, but it would certainly be annoying to go without one.</p>

<p>Also, though, Google+ isn&#8217;t solving a problem that I have. Its main innovation, so far as I can tell, is that it makes the concept of a &#8220;circle&#8221; fundamental: circles for friends, circles for acquaintances, circles for colleagues, etc. Others have the problem that they need their messages to go to specific circles; I do not. The problem is supposed to be that, say, you want to write naughty words, but don&#8217;t want your grandmother to read them; or that you want to bust on your coworkers but don&#8217;t want your coworkers to read it; or some such. First of all, Facebook offers enough in this direction that Google+ is not really solving a real problem. For instance, I was connected on Facebook to my girlfriend&#8217;s son, and I set up permissions such that he couldn&#8217;t see a lot of what I posted. Problem solved. I&#8217;ve certainly been on the receiving end of those blocks, too: coworkers have clearly put me on a &#8220;don&#8217;t share your Wall with coworkers&#8221; rule set. Facebook also offers a nice preview feature, which allows you to see how your profile looks when visited by a specific Friendster of yours.</p>

<p>More fundamentally, having to figure out who should read a given post and who shouldn&#8217;t is the kind of psychic weight that I try very hard to cast off. &#8220;Should this go to Acquaintances, or only to Friends?&#8221; is a question which, when asked often enough, will eventually rub my mind raw.</p>

<p>I&#8217;d much prefer to just post whatever comes to my mind to Facebook or Twitter, and let people decide whether they want to read it. On the receiving side, I&#8217;m sure Facebook has enough intelligent algorithms to decide whether you find my posts interesting; if it doesn&#8217;t think you do, they won&#8217;t show up in your feed. If you think I swear too much, you can ignore my posts. If you really hate me, you can defriend me.</p>

<p>Mark Zuckerberg, I&#8217;m told, said at one point that people should have just one persona, which is on display at all times. At some level this is wrong: I make dirty jokes with some people but not with my mother; I have one side of my personality that really likes discussing policy and theory, but that side will quickly put itself into hiding if it senses that the people around it just don&#8217;t care about those things.</p>

<p>But the costs of having different personalities on the web &#8212; one for Acquaintances, one for Friends, one for Policy Wonks &#8212; exceed the gains, for me anyway. I&#8217;d much prefer to put all those personalities together into one feed. I suspect the audience finds this more interesting, in any case: much better to get the occasional notional pornography title (a category of Facebook post that I very much enjoy writing) amidst links about health insurance, I think, than to get a steady diet of one or the other. I could be wrong about this, in which case my audience would prefer that I put different ideas in different channels. Not my problem. I guess Google+ is designed for people who think that <em>is</em> their problem.</p>

<p>Google+, I gather, came out of watching people&#8217;s occasional paroxysms of anger against Facebook&#8217;s privacy problems. But people don&#8217;t really care about their privacy; if they did, Twitter wouldn&#8217;t be popular. In Twitter, everything you write is visible to the world. Had Facebook decreed from early on that everything you post is public, people would have nothing to be angry about. It&#8217;s the perception of a bait-and-switch that angers people about Facebook; it is manifestly <em>not</em> that people care about their privacy. So inasmuch as Google+ gives people more privacy than Facebook, it&#8217;s not offering the world a solution to any problem that the world actually suffers from.</p>

<p>Neither Google nor Facebook actually cares about privacy. What they want is to sell ads, or to otherwise monetize their social networks. That means, as the saying goes, that &#8220;if you&#8217;re not paying for a product, <em>you&#8217;re</em> the product.&#8221; They&#8217;re selling <em>you</em> to advertisers. So at a fundamental level &#8212; the level of what keeps the lights on in Google&#8217;s and Facebook&#8217;s datacenters &#8212; neither of them is actually interested in your privacy. Neither of them <em>could</em> be interested in your privacy. If Google+ has any actual appeal, it&#8217;s the perception that it won&#8217;t bait-and-switch you. But that&#8217;s just responding to an accident of Facebook&#8217;s history. If Facebook were born now, it would be Twitter, and everything would be public. Not baiting-and-switching on privacy is not the basis for a network that people should care about.</p>

<p>What I get with Google+, then, is the solution to a privacy non-problem and the creation of groups of acquaintances that cause me stress without solving any problem I have. Can someone point me to some really killer feature that I should know about?</p>

<p>I am often a curmudgeon about new technology, but it&#8217;s not out of reflexive hostility toward new things. It&#8217;s that I really need people to prove to me why I need something. I was this way with the iPhone and the Mac, but eventually the tipping point came where it was obvious that the iPhone and the Mac were just better than every one of their competitors, and that there was no legitimate reason to avoid buying one. So I&#8217;m more than open to being convinced that I should use Google+. I just need to be convinced that it a) solves a problem I have and b) is better than Facebook. Thus far I&#8217;ve not been convinced.</p>
<img src="http://feeds.feedburner.com/~r/StephenLanielsUnspecifiedBunker/~4/kfy1a669uU4" height="1" width="1"/>]]></content:encoded>
			<wfw:commentRss>http://stevereads.com/weblog/2011/07/19/i-still-need-someone-to-explain-to-me-what-problem-google-plus-solves-and-why-its-not-creating-other-problems-that-i-find-way-more-annoying/feed/</wfw:commentRss>
		<slash:comments>8</slash:comments>
		<feedburner:origLink>http://stevereads.com/weblog/2011/07/19/i-still-need-someone-to-explain-to-me-what-problem-google-plus-solves-and-why-its-not-creating-other-problems-that-i-find-way-more-annoying/</feedburner:origLink></item>
		<item>
		<title>How much is the employer health-insurance subsidy worth? (Or, I regurgitate Austin Frakt.)</title>
		<link>http://feedproxy.google.com/~r/StephenLanielsUnspecifiedBunker/~3/kV82760GZew/</link>
		<comments>http://stevereads.com/weblog/2011/07/09/how-much-is-the-employer-health-insurance-subsidy-worth-or-i-regurgitate-austin-frakt/#comments</comments>
		<pubDate>Sat, 09 Jul 2011 23:27:03 +0000</pubDate>
		<dc:creator>slaniel</dc:creator>
				<category><![CDATA[Health care and insurance]]></category>
		<category><![CDATA[Helping the Less Fortunate]]></category>
		<category><![CDATA[Taxation]]></category>

		<guid isPermaLink="false">http://stevereads.com/weblog/?p=7044</guid>
		<description><![CDATA[I come back to Austin Frakt&#8217;s post calculating how much the Federal subsidy for health insurance is worth every few months, and I think I have to re-study it every time. It&#8217;s a hugely important post. Probably a lot of others don&#8217;t read wonky health-insurance blogs quite as obsessively as I do, so the background [...]]]></description>
			<content:encoded><![CDATA[<p>I come back to <a href="http://theincidentaleconomist.com/wordpress/understanding-the-employer-tax-subsidy/">Austin Frakt&#8217;s post calculating how much the Federal subsidy for health insurance is worth</a> every few months, and I think I have to re-study it every time. It&#8217;s a hugely important post.</p>

<p>Probably a lot of others don&#8217;t read wonky health-insurance blogs quite as obsessively as I do, so the background is like so: your employer (if you&#8217;re lucky enough to have an employer that supplies health insurance) doesn&#8217;t pay taxes on the health-insurance fringe benefit. When they pay you a dollar in wages, they have to pay <a href="http://www.ssa.gov/oact/progdata/taxRates.html">their part of Medicare and Social Security taxes</a>. Once they&#8217;ve paid their taxes and passed your wages on to you, you have to pay taxes on them. Health insurance isn&#8217;t like that: your employer doesn&#8217;t pay taxes on health benefits, and neither do you. So one dollar in health insurance is worth more than one dollar in wages to you and to your employer.</p>

<p>Turns out that the subsidy is <em>really</em> distorting. Professor Frakt&#8217;s exercise may already be clear to everyone, but I don&#8217;t think it was clear to me for a while. So in bullet form, trying to make it as clear as possible (to myself as much as to everyone else) it&#8217;s like so:</p>

<ul>
<li>For every dollar an employer pays out <em>in wages</em>, a certain fraction of that dollar goes to taxes (employer pays Medicare and Social Security). Call that fraction T.</li>
<li>So for every dollar in wages that the employee receives, the employer pays $(1+T).</li>
<li>Flip that around: for every dollar in wages that the employer pays, the employee receives $1/(1+T).</li>
<li>Now the employee has his dollar in wages. Of that, a certain fraction goes to taxes (Medicare, Social Security, federal, state). Call that tax fraction E.</li>
<li>So the employee is left with $(1-E) of his dollar.</li>
<li>But his dollar was already $1/(1+T) of what the employer spent.</li>
<li>So of every dollar the employer spends on wages, what ends up in the employee&#8217;s pocket is $(1-E)/(1+T). Call this F, for &#8220;Final amount in the employee&#8217;s pocket.&#8221;</li>
<li>This means that $(1-F) goes to taxes, for every dollar the employer spends on wages.</li>
<li>Put another way: a dollar spent on health insurance, which no one pays taxes on, loses the government $(1-F). 1-F is called the &#8220;tax price.&#8221; Professor Frakt links here to <a href="http://econ-www.mit.edu/files/104">a paper by</a> the omnipresent <a href="http://econ-www.mit.edu/faculty/gruberj">Jon Gruber</a>, an MIT professor who was central to building Massachusetts&#8217; universal-coverage system, and who advised President Obama on the Affordable Care Act. The paper &#8212; &#8220;The Impact of the Tax System on Health Insurance Coverage&#8221; &#8212; sounds interesting.</li>
</ul>

<p>To put some flesh on the numbers:</p>

<ul>
<li>when the employer pays you a dollar (in wages, but <em>not</em> in health insurance), it spends 6.2 cents on Social Security and 1.45 cents on Medicare Part A. So T = .062 + .0145 = 0.0765.</li>
<li>you pay Social Security and Medicare Part A (same percentages as your employer), plus your Federal marginal tax rate (I&#8217;m in the 28% bracket), plus your state marginal rate (Massachusetts&#8217; is 5.3%). So my marginal rate is 40.95%, whence E = .4095.</li>
<li>So when my employer spends a dollar on health insurance rather than on wages, the government loses 45 cents that it would have picked up in taxes. (Professor Frakt ends up with 37 cents using more-conservative assumptions, namely that the state tax rate is 5% and that my Federal marginal rate is 20%.)</li>
</ul>

<p>This distorts the labor market &#8212; encouraging employers to buy more-expensive health-insurance plans &#8212; and costs the government money that it could be spending on other valuable things.</p>

<p>And it&#8217;s regressive: if you&#8217;re in the <a href="http://www.irs.gov/pub/irs-pdf/i1040tt.pdf">top (35%) bracket</a>, you&#8217;re getting more of a benefit from the health-insurance subsidy than is someone in the 28% bracket. Same goes for the mortgage-interest deduction, and it may be even worse there: not only do higher-income people get more off their taxes for every dollar they spend on mortgage interest than do lower-income people, but the more you spend on a house, the more you can take off your taxes. Assuming Bill Gates&#8217;s <a href="http://www.zpub.com/un/bill/ecology.html">house cost the $97 million that some random web page says it did</a>, that he put 20% down, and that he financed it with a 2%, 30-year fixed-rate mortgage, he&#8217;ll be able to use the mortgage-interest deduction to avoid paying taxes on $26,345,019.10 in income over the life of the mortgage. Assuming he&#8217;s in the 35% bracket, that&#8217;s $9,220,756.69 that the mortgage-interest deduction saved him. Whereas if you&#8217;re in the 28% bracket and finance a $350,000 home the same way, you&#8217;ll save $33,270.77 over those same 30 years.</p>

<p>These &#8220;tax expenditures&#8221; cost the government money in the same way that buying a bomber or building a road costs it money. But tax expenditures haven&#8217;t, until recently, appeared on the radar in the same way that a $500 toilet seat does. We may well be paying for Bill Gates&#8217; $500 toilet seat, but it hasn&#8217;t had the same visceral effect.</p>
<img src="http://feeds.feedburner.com/~r/StephenLanielsUnspecifiedBunker/~4/kV82760GZew" height="1" width="1"/>]]></content:encoded>
			<wfw:commentRss>http://stevereads.com/weblog/2011/07/09/how-much-is-the-employer-health-insurance-subsidy-worth-or-i-regurgitate-austin-frakt/feed/</wfw:commentRss>
		<slash:comments>3</slash:comments>
		<feedburner:origLink>http://stevereads.com/weblog/2011/07/09/how-much-is-the-employer-health-insurance-subsidy-worth-or-i-regurgitate-austin-frakt/</feedburner:origLink></item>
		<item>
		<title>I hate the word “staycation”. However.</title>
		<link>http://feedproxy.google.com/~r/StephenLanielsUnspecifiedBunker/~3/IDaiVGmVdcE/</link>
		<comments>http://stevereads.com/weblog/2011/06/19/i-hate-the-word-staycation-however/#comments</comments>
		<pubDate>Mon, 20 Jun 2011 01:57:36 +0000</pubDate>
		<dc:creator>slaniel</dc:creator>
				<category><![CDATA[My Life and My Friends]]></category>

		<guid isPermaLink="false">http://stevereads.com/weblog/?p=7034</guid>
		<description><![CDATA[&#8230;it is probably the most accurate word to describe what will be happening in a month or so. Right around a month from now will be the start of my two-week vacation, ending in early August. I am very much looking forward to it. I planned nothing in advance for that period, and just assumed [...]]]></description>
			<content:encoded><![CDATA[<p>&#8230;it is probably the most accurate word to describe what will be happening in a month or so. Right around a month from now will be the start of my two-week vacation, ending in early August. I am very much looking forward to it. I planned nothing in advance for that period, and just assumed I&#8217;d figure out what to do when the time came.</p>

<p>My experience with planning summer vacations is that there are essentially two possibilities: either</p>

<ol>
<li><p>Go to some lovely, exotic locale and pay a lot to get there (and probably pay a lot for housing while there). I did this in the Bahamas a while ago. I did this in Turkey a whiler ago. (Istanbul is the most amazing place I&#8217;ve ever been.)</p></li>
<li><p>Go to Cape Cod (nearby vacation destination of choice for people in the Commonwealth) and pay a lot to stay there, if you can find a place at all.</p></li>
</ol>

<p>So I was mostly pleased to realize this year that I do not have the free cash to do either 1) or 2). Instead I&#8217;ll be hanging out in Cambridge/Boston [1] and in the Seacoast area of New Hampshire and Massachusetts (Exeter, Portsmouth, Newburyport, Portland, and points in between). I&#8217;m very excited about this. I&#8217;m going to spend two weeks going to all the places I&#8217;ve meant to go to for years. I&#8217;m going to walk the Freedom Trail in full (it goes into Charlestown, whereas I&#8217;ve basically only walked the parts right near the Common). I&#8217;m going to hit as may restaurants as I can that people have recommended (Duck Fat and Toro come immediately to mind). I&#8217;m going to go to many bars. I&#8217;m going to spend time on many beaches with my lovely girlfriend. I&#8217;m going to buy a Boston guidebook and find anything that people always do with their tourist friends but never do on their own (minus Cheers &#8212; screw a lot of that) This will be great.</p>

<p>I hereby open up the comments thread to nominations for things to do during my &#8220;staycation.&#8221;</p>

<p><strong>Update (20 June 2011)</strong>: I&#8217;ll include things here that people have suggested or have come to my mind:</p>

<ul>
<li>Day trip to <a href="http://travel.nytimes.com/2011/06/19/travel/36-hours-in-newport-ri.html">Newport, Rhode Island</a>. Might be annoying to get there by mass transit (commuter rail to Providence, then two buses), but I could see if my lady would like to drive with me.</li>
<li>A friend reports: &#8220;You know, across the bay from Newport are the towns of Tiverton (Four Corners) and Little Compton, which are genuinely two of the most beautiful small towns in New England. Little Compton also has Goosewing Beach, a little-known gem.&#8221;</li>
<li>A water park somewhere, with the lady and her son.</li>
<li>Learn to sail through <a href="http://www.community-boating.org/">Community Boating, Inc.</a></li>
<li>Lobster rolls at one or more clam shacks in Essex (see <a href="http://www.post-gazette.com/pg/07294/826581-34.stm">this Pittsburgh Post-Gazette piece about Gloucester and its clams</a>).</li>
<li>Bread in Plymouth, via <a href="http://www.chow.com/digest/86772/great-bread-in-plymouth/?tag=nl.e355">Chowhound</a>.</li>
<li>Kolbeh of Kabob, 1500 Cambridge Street in Cambridge, also via <a href="http://www.chow.com/digest/86781/sumac-to-sprinkle-at-kolbeh-of-kabob/?tag=nl.e355">Chowhound</a></li>
<li><p>Museums at Harvard:</p>

<ul>
<li>The <a href="http://www.fas.harvard.edu/~hsdept/chsi.html">Collection of Historical Scientific Instruments</a>, open 11 &#8211; 4 Monday through Thursday and 11-3 on Fridays during the summer. That&#8217;s for the Putnam Gallery in Science Center 136. The Foyer Exhibition Space is in Science Center 371, open M-F 9-4. Inquiries: 617-495-2779.</li>
<li>The <a href="http://www.hmnh.harvard.edu/">Museum of Natural History</a> at 26 Oxford Street in Cambridge. It&#8217;s open <a href="http://www.hmnh.harvard.edu/plan_your_visit.html">daily 9-5</a> with special &#8220;Summer Nights at the Museum 2011: Fourth Wednesdays, June 22, July 27, August 24, and Extended hours, 5-8 pm, with half price admission&#8221;. It&#8217;s also &#8220;Free to Massachusetts residents every Sunday morning (year-round) from 9:00 am to noon&#8221;</li>
<li>The <a href="http://www.peabody.harvard.edu/">Peabody Museum of Archaeology and Ethnology</a> at 11 Divinity Ave in Cambridge. It&#8217;s &#8220;open seven days a week from 9 a.m. to 5 p.m.&#8221;</li>
<li>The <a href="http://www.semiticmuseum.fas.harvard.edu/icb/icb.do">Semitic Museum</a> at 6 Divinity Ave, open &#8220;Monday-Friday from 10:00am to 4:00pm and Sunday from 1:00pm to 4:00pm.&#8221;</li>
<li>The Warren Anatomical Museum, &#8220;part of the Countway Library of Medicine&#8217;s Center for the History of Medicine. The Museum&#8217;s Exhibition Gallery, which displays 300 cases and artifacts from the larger collection, is located on the 5th floor of the Countway Library.&#8221; The Countway Library <a href="https://www.countway.harvard.edu/menuNavigation/aboutCountway/directions.html">is in the Longwood Medical Area at 10 Shattuck St</a>.</li>
<li>The <a href="http://www.harvardartmuseums.org/collection/sackler/">Sackler Art Museum, Busch-Reisinger, and Fogg museums</a> at 485 Broadway in Cambridge, open Tuesday–Saturday, 10am–5pm.</li>
</ul></li>
<li><p>To quote a friend:</p></li>
</ul>

<blockquote>
  <ul>
  <li><p>Providence:</p>
  
  <ul>
  <li>New Rivers</li>
  <li>La Laiterie</li>
  <li>Red Dog</li>
  <li>check out the RISD Museum</li>
  </ul></li>
  <li><p>Tiverton Four Corners</p>
  
  <ul>
  <li>Gray&#8217;s Ice Cream</li>
  </ul></li>
  <li><p>Newport</p>
  
  <ul>
  <li>Scales and Shells</li>
  <li>whatever else the NY Times said</li>
  </ul></li>
  <li><p>Portsmouth NH</p>
  
  <ul>
  <li>there are some good places, but I can&#8217;t remember the names!</li>
  </ul></li>
  <li><p>Portland</p>
  
  <ul>
  <li>Hugo&#8217;s</li>
  <li>Fore St</li>
  <li>Cinque Terre</li>
  <li>the art museum in Portland is pretty good, too</li>
  </ul></li>
  </ul>
</blockquote>

<p>[1] &#8211; <a href="http://adam.rosi-kessel.org/">Adam</a> and I have been trying to figure out whether there&#8217;s a good phrase to encapsulate the urban core of Boston. Boston, Cambridge, Somerville, and Brookline are in the core. Framingham, say, is not. The narrowest designation that the Census Bureau seems to work with is the Boston MSA, for Metropolitan Statistical Area, which extends all the way into New Hampshire. I will not be hanging out in something as wide as an MSA.</p>
<img src="http://feeds.feedburner.com/~r/StephenLanielsUnspecifiedBunker/~4/IDaiVGmVdcE" height="1" width="1"/>]]></content:encoded>
			<wfw:commentRss>http://stevereads.com/weblog/2011/06/19/i-hate-the-word-staycation-however/feed/</wfw:commentRss>
		<slash:comments>2</slash:comments>
		<feedburner:origLink>http://stevereads.com/weblog/2011/06/19/i-hate-the-word-staycation-however/</feedburner:origLink></item>
	</channel>
</rss>

