Capitalism 2.0?

I've heard a great deal of talk about this in the wake of this 'crisis,' and it troubles me. I commented on the linked article, my thoughts also available here.

One of the basic tenents of philosophy is that while one cannot prove the existence of others, the act of proof is sufficient evidence to assume one’s own existence (I think, therefore I am). The only person, object or force in all of reality that must exist is you yourself.

Given that, freedom is not a luxury, or a benefit we receive from benevolent governments. Freedom is a fact of nature. 

Capitalism recognizes that nature and attempts to harness it for the best possible outcome. To deny freedom is to reverse the basics of philosophy, holding each person more accountable for the well being of others than that of those they directly care about.

Please don’t misunderstand me. There must be discussion about the proper law society uses to hold people accountable. Peaceful coexistence requires standards of behavior. If those standards are called ‘regulation,’ then fine. But if you deny the basic reality that Freedom is natural and required for life, then expect disaster.

Math Joke

The ark lands after The Flood. Noah lets all the animals out and says, "Go and multiply."

Several months pass. Noah decides to check up on the animals. All are doing fine except a pair of snakes.

"What's the problem?" says Noah.
"Cut down some trees and let us live there", say the snakes.

Noah follows their advice. Several more weeks pass. Noah checks on the snakes again. Lots of little snakes, everybody is happy.

Noah asks, "Want to tell me how the trees helped?"
"Certainly", say the snakes. "We're adders, and we need logs to multiply."

Rat brain powered robot

http://technology.newscientist.com/channel/tech/mg19926696.100-rise-of-the-ratbrained-robots.html

A disembodied rat brain interfaced to a computer chip, interfaced to a robot, which moves around the lab.

'As they do so, the disembodied neurons are communicating, sending electrical signals to one another just as they do in a living creature. We know this because the network of neurons is connected at the base of the pot to 80 electrodes, and the voltages sparked by the neurons are displayed on a computer screen.'

This is strongly in territory of 'unknown' of the same sort that can be scary. But I can't think of any specific ethical issues that I have with this line of research.

HT to Timothy at Slashdot.

Philosophy of Liberty

This was posted 2 years ago, and I just now found it. I have now seen it 3 times, examining it closely for any idea that I even in part disagree with. The only point I have found is a minor one that can wait until you've seen the clip.



Back to that point, When the author says that people should stop asking their governments to initiate force on their behalf, it assumes democratic governments. Dictators pursue ownership of the life and liberty of their subjects as an objective for their own life. And may cause global atrocities without the deliberate consent of their people.

Information Overload: A Blessed Curse

What is so bad about information overload?
How the Google generation thinks differently.

The first article specifically talks about the advent of email deluge. How the flood of email from colleagues and clients can get far too powerful to feasibly answer or even read.

The second article is by a mom who doesn't understand why her son does 5 entertaining things while researching a report for his science class. The author distills these characteristics in regards to Google infopath adoption.

NATIVES v IMMIGRANTS

Digital natives
Like receiving information quickly from multiple media sources.
Like parallel processing and multi-tasking.
Like processing pictures, sounds and video before text.
Like random access to hyperlinked multimedia information.
Like to network with others.
Like to learn “just in time”.

Digital immigrants
Like slow and controlled release of information from limited sources.
Like singular processing and single or limited tasking.
Like processing text before pictures, sounds and video.
Like to receive information linearly, logically and sequentially.
Like to work independently.
Like to learn “just in case”.

Food Crisis

I found some great commentaries here on the recent rise in food prices.
American Thinker | Financial Times: Economists Forum | New York Times: A Global Need...

Things to think about while listening to the news on the Food Crisis:

Since Gasoline and Biofuels are well on their way to becoming true substitutes, and biofuels are made from food, high oil prices will become directly related to higher food prices. Not only can food substitute for oil, but it apparently works the other way too. I should make a whole blog post just on that.
Wired

India, China, and South America are developing far wealthier populations who consume more of both food and fuel. Driving the demand of both, raising the prices of both.

Those same three regions are also using that wealth to increase their productive capacities. The US utilizes only 0.27% of the world's crop land, but produced 16.8% of all the world's grain in 2007. Which means the US produces grain 80 times more effeciently than the rest of the world, so there's room for 7978% improvement in global grain production without any new technologies. That's about 80 new earths to put that in terms Daniel W. Basse can understand.

I don't have many links to back this up, but it seems that as wealth passes some level, quality begins to take precedence over quantity to the average consumer. High class restaurants serve smaller portions than low class restaurants. Areas with higher average population have more Chipotle's and fewer Taco Bell's. If this is true, then as the West gets still wealthier, it will begin to consume fewer pounds of grain while expending far more in terms of other wealth to get it. That might relax demand for low priced grains for poorer areas.

'Not for Resale' free stuff

Universal Studios sent out a bunch of free promo CD's with a 'promotional use only' label to selected listeners. These CD's arrived completely free through the mail.
Troy Augusto, who decided to disregard that label and sell the disc on Ebay, is now fighting a lawsuit from Universal. The record company claims that the promotion use label identified the product as in part their property, and that they retained all rights of sale. Augusto claims that since the discs arrived in the mail with no action on his part, they were gifts and therefore his property.

The major significance is the challenges this case could pose for the 'first sale doctrine.' Universal wins, could a car manufacturer place a limit on the number of resales for the car? I could do a whole new post on that idea.

EFF has counter sued Universal on Augusto's behalf.

Idle chit chat with Ryan G

Ryan is a friend of mine from Mason who is currently studying graduate Econ at Oxford. This is a conversation we had a few minutes ago.

Ryan: I am writing a paper on market failure, government intervention, Coase Theorem, etc...
Now I need to do an applied section where I walk through a real case any good ideas? I would do the obvious, environemnt, or education, but I will be doing seperate papers on those two topics next.
me: tragedy of the commons is the most frequent real market failure. so overfishing?
Ryan: yeah, thought of that
me: logging on public lands?
Ryan: hmmm, ok, that would be interesting
me: information assymetry is also good. You could do healthcare.
Ryan: That is a whole nother paper. I am already at 10 pages, I had to leave out dynamic incapacities, and asymentric info otherwise it would have taken me 15 -20 pages just to define the different problems
I think I may do a paper on Health care later, so hopefully I can deal with those problems then.
me: dynamic incapacities, is that like, how electricty gets overconsumed because it's so hard to have live pricing? Google isn't turning up much.
Ryan: i think so, i dunno. He defined it, but we didn't really spend much time on it
and I didn't know where to research for it My other thought were to do big game animals again
I wrote a paper on that a while ago.
Or public financing of sports stadiums which I also did a couple years ago

me: I thought public financing of sports was more of a public choice problem instead of a market failure. It's actually a market success that stadiums don't get built

Ryan: public choice deals with market failures. lol, true.

The usualy arguments for government intervention in markets is market failure

me: so the pub choice argument is that the lack of stadiums is a market failure, so spend public funds on them?

Ryan: Yes, becasue they give positive externalities to the city

such as increased jobs, city pride etc....

things the private world won't take into account

public choice would say rent seeking and government inefficiency would result so the stadium should be financed privately

me: I wonder how you would monetize city pride as a variable

Ryan: hard to

We still don't know too much about dynamic incapacities, so if you know anything, please leave a comment.

Reminder of How Science Works

DNA Puts Itself Together 'Impossible'

In case anyone forgot, the world we live in is a wonderful place that the totality of human knowledge barely understands. The world contains matter and energy, they interact in ways that we can see and in ways that we cannot. Science is the process of seeing as much as possible and creating the best possible ideas to understand how all those interactions occur. Compared to the totality of the world, we're barely scratching the surface.

Freedom in the Image of God

Freedom in the Image of God

I just wrote this, it has something of the tone of a rant. And although I'm still in the same mood that I was when I wrote it, I think I like it.

To be truly free, is to accurately be the living breathing image of an all knowing, all powerful God that loves the people around him so much, he is willing to sacrifice his own flesh to help those people become more like himself.

Educational Duties to the Future

Video clip of Richard Dreyfus on liberal education.



Any Questions?

Hat Tip to Brian Holler at Thinking on the Margin.

Libertarian Solution to a Political Conflict

A Libertarian Solution to Evolution Controversy: No More Public Schools

When you force people to teach a subject in a way they don't want it taught, and the school system is a political beast, which our public schools are, you're going to see the curriculum you have in mind corrupted by the political process. People campaigning for strong teaching of evolutionary biology in public schools are ignoring that this is what's purportedly been going for the last 50 years. There are no states with a theistic presentation in their classrooms. Real science is what's supposed to be taught; yet when you look at polling data, the ones who see a non-theistic, purely naturalist explanation are in the minority.

The particular libertarian speaking there is strongly pro-evolution, and is trying to resolve the debate about whether to allow the intelligent design curriculum to be taught in public schools.
A lot of people feel very strongly that EVERYONE should be well educated. I rather agree with that, education expands the human experience and gives them the tools to provide high quality services to the people around them throughout their lives. It preserves the knowledge base for a growing economy.
Many people assume however, that the ONLY way to do this is through a ubiquitous government run public education system. The argument for 'school choice' is that you could use the same tax dollars used to fund the public education system to provide limited credits that can be used to pay tuition at all sorts of educational institutions. This would make the market for education more competitive, raising quality, lowering price, and vastly simplifying the content debate.

I am in favor of school choice from kindergarden through the fourth year of college.

Less is More

We're doing more with less. That's good for planet Earth.

Since 1977 the value of the U.S. economy has doubled, yet the amount of physical stuff it took to supply all the needs and wants of Americans fell from 1.18 trillion pounds to 1.08 trillion pounds. Even more astonishing: the "weight" of the economy fell while U.S. population grew by some 55 million people.

This probably not true for each individual resource, only in aggregate. 55 million additional people will require additional water, and while water can be delivered and used more efficiently, the total supply is not unlimited. The good news is that although the use of water probably went up, that means other resources were probably used less, and those other resources were probably less environmentally friendly than water.

I recommend checking out the other Knowledge labeled posts. As this sort of change is what knowledge economies are good for.

Hat tip to Brian Hollar at Thinking on the Margin. Which is rapidly becoming one of my all time favorite blogs! Not to detract from my extensive respect for the eminent professors at Marginal Revolution & Cafe Hayek. Their sites are much better known.

Tabarrok on the knowledge economy

Dismal Science Sees Upbeat Future - Alex Tabarrok

So imagine this: If China and India were as wealthy as the U.S., the market for cancer drugs would be eight times larger than it is today.
...
People used to think that more population was bad for growth. In this view, people are stomachs--they eat, leaving less for everyone else. But once we realize the importance of ideas in the economy, people become brains--they innovate, creating more for everyone else.

New ideas mean more growth, and even small changes in economic growth rates produce large economic and social benefits. At current income levels, with an inflation-adjusted growth rate of 3% per year, America's real per capita gross domestic product would exceed $1 million per year in just over 100 years, more than 22 times higher than it is today. Growth like that could solve many problems.

It's definitely about time for some major works on how the knowledge economy works. There's just not a lot out there and it leads to some real misunderstanding and probably miss communication.

This is a somewhat connected to an earlier post by Tyler Cowen, co-author of Marginal Revolution with Alex Tabarrok. Also my commentary on that post.

Hat tip to Brian Hollar @ Thinking on the Margin.

The All Seeing Eye - New policies

US drafting plan to allow government access to any email or Web search

Without this law, anybody plotting a terrorist attack is going to use encryption, so why bother? If you won't be able to understand the only people that you claim you want to watch, then why pass a law saying you can look at everything everywhere anytime with no notice or accountability?

I lack expertise in this area, but I've read some good stuff about the security features of the BSD operating system.

It seems the interest in encryption has been decreasing for the past 4 years or so. I wonder if this policy will have an effect on that trend.

Seagate has released a full encryption drive, which would not protect against this policy, but would protect against your data from theft of your drive physically.

What would help against this policy is OpenPGP.

Information Disclosure

New law enhances Government transparancy

If you pass enough laws, eventually you'll accidentally come up with something good.

Big brother in your lap

Laptops Searched and Confiscated at U.S. Border

The government can and apparently does search your laptop contents when you travel internationally.

For those of you who may want to be safe in this, here's a coupe of encryption programs that will help you hide your contraband data.

TrueCrypt
&
Omziff

Decline in judgement

Tyler Cowen at Marginal Revolution talks about how the information age may change what it may mean to be 'educated.' Definitely read his post (he's much smarter than I), but I don't think he's gone far enough.

An article on the knowledge based economy may help explain.

Also, I started typing this a month ago, and it got really long. So I've slimmed it down and started an essay that you can read at Google Docs.

Economics: The study of how people use their scarce resources to satisfy unlimited wants.
People have some wants that are really important like love, food, shelter, and clothes. So those are the first wants that get met in some way, but after that there's all sorts of things that people want, and different people want different things. So all the different types of economic activity happen to start meeting those needs.

After a point though, peoples basic needs get met so well that they have more time. That extra time means that they can think about better ways to manipulate resources. That thinking creates ideas which get changed and exchanged, creating markets and requiring property rules. As wealth increases, more time is available for thinking, and more ideas are produced and those idea markets expand.

These days, almost all of our time is spent thinking and only a small amount of our time is spent manipulating physical resources.

Professor Cowen's point is that the simple tasks of idea management can now be mechanized by computers, and that (if I read it right) the demand is shifting to idea creation (research) and idea usage (judgement & entrepreneurship).