April 26, 2015

Hamilton "Was the Clear-Eyed Apostle of America's Economic Future"

(p. 344) The American Revolution and its aftermath coincided with two great transformations in the late eighteenth century. In the political sphere, there had been a repudiation of royal rule, fired by a new respect for individual freedom, majority rule, and limited government. If Hamilton made distinguished contributions in this sphere, so did Franklin, Adams, Jefferson, and Madison. In contrast, when it came to the parallel economic upheavals of the period--the industrial revolution, the expansion of global trade, the growth of banks and stock exchanges--Hamilton was an American prophet without peer. No other founding father straddled both of these revolutions--only Franklin even came close--and therein lay Hamilton's novelty and greatness. He was the clear-eyed apostle of America's economic future, setting forth a vision that many found enthralling, others unsettling, but that would ultimately prevail. He stood squarely on the modern side of a historical divide that seemed to separate him from other founders. Small wonder he aroused such fear and confusion.


Chernow, Ron. Alexander Hamilton. New York: The Penguin Press, 2004.

April 25, 2015

Lincoln Defended Innovative Rail Against Incumbent Steam

(p. A15) "Lincoln's Greatest Case" convincingly shows that 1857 was a watershed year for the moral and political questions surrounding slavery's expansion to the west, something that Jefferson Davis's preferred railroad route would have facilitated. Mr. McGinty's discussion of Lincoln's philosophy and the career-making speeches he would develop in the late 1850s allows us to see the transportation disputes in light of the political and cultural dynamics that would lead to the Civil War. The book is also a case study of discomfort with new technology--and the futility of using a tort suit to prevent the adoption of inevitable innovation.

The book ends on an elegiac note, with steamboats making their inevitable passage into the mists of history. The rails, which could operate year-round through paths determined by man, not nature, would reign supreme, thanks in part to the efforts of a technophile future president.

For the full review, see:

MARGARET A. LITTLE. "BOOKSHELF; When Steam Was King; A dispute over a fiery collision pitted steamboats against railroads and the North against the South. Lincoln defended the rail." The Wall Street Journal (Mon., Feb. 23, 2015): A15.

(Note: the online version of the review has the date Feb. 22, 2015, and has the title "BOOKSHELF; Technology's Great Liberator; A dispute over a fiery collision pitted steamboats against railroads and the North against the South. Lincoln defended the rail.")

The book under review is:

McGinty, Brian. Lincoln's Greatest Case: The River, the Bridge, and the Making of America. New York: Liveright Publishing Corp., 2015.

April 24, 2015

Remaining Airline Regulations Increase Fares and Reduce Services

(p. 256) Kenneth Button makes the case for "Really Opening Up the American Skies." "The deregulation of the 1970s, by removing entry quantitative controls, led to a considerable increase in services. It also increased the capability of individuals to access a wider range of destinations from their homes via the hub-and-spoke system of routings that emerged. This pattern has been reversed since 2007. The largest 29 airports in the United States lost 8.8 percent of their scheduled flights between 2007 and 2012, but medium-sized airports lost 26 percent and small airports lost 21.3 percent. . . . In sum, the 1978 Airline Deregulation Act only partially liberalized the U.S. domestic airline market. One important restriction that remains is the lack of domestic competition from foreign carriers. The U.S. air traveler benefited from the country being the first mover in deregulation, and this provided lower fares and consumer-driven service attributes some 15-20 years before they were enjoyed in other markets; the analogous reforms in Europe only fully materialized after 1997. But the world has changed, and so have the demands of consumers and the business models adopted by the airlines. . . . But remaining regulations still limit the amount of competition in the market and, with this, the ability of travelers to enjoy even lower fares and a wider range of services." Regulation, Spring 2014, pp. 40-45 http://object.cato.org/sites/cato.org/files/serials/files/regulation/2014/4/regulation-v37n1-8.pdf.


Taylor, Timothy. "Recommendations for Further Reading." Journal of Economic Perspectives 28, no. 3 (Summer 2014): 249-56.

(Note: ellipses in original.)

The article quoted by Taylor is:

Button, Kenneth. "Really Opening up the American Skies." Regulation 37, no. 1 (Spring 2014): 40-45.

April 23, 2015

Climate Skeptic Villified by Mainstream Establishment

ChristyJohnClimateSkeptic2015-03-15.jpg"John Christy, a professor of atmospheric science at the University of Alabama, Huntsville, with the weather data he recorded daily while growing up in Fresno, Calif., in the 1960s." Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A14) "I detest words like 'contrarian' and 'denier,' " he said. "I'm a data-driven climate scientist. Every time I hear that phrase, 'The science is settled,' I say I can easily demonstrate that that is false, because this is the climate -- right here. The science is not settled."

Dr. Christy was pointing to a chart comparing seven computer projections of global atmospheric temperatures based on measurements taken by satellites and weather balloons. The projections traced a sharp upward slope; the actual measurements, however, ticked up only slightly.

Such charts -- there are others, sometimes less dramatic but more or less accepted by the large majority of climate scientists -- are the essence of the divide between that group on one side and Dr. Christy and a handful of other respected scientists on the other.

"Almost anyone would say the temperature rise seen over the last 35 years is less than the latest round of models suggests should have happened," said Carl Mears, the senior research scientist at Remote Sensing Systems, a California firm that analyzes satellite climate readings.

"Where the disagreement comes is that Dr. Christy says the climate models are worthless and that there must be something wrong with the basic model, whereas there are actually a lot of other possibilities," Dr. Mears said. Among them, he said, are natural variations in the climate and rising trade winds that have helped funnel atmospheric heat into the ocean.

. . .

. . . , Dr. Christy argues that reining in carbon emissions is both futile and unnecessary, and that money is better spent adapting to what he says will be moderately higher temperatures.

. . .

. . . while his work has been widely published, he has often been vilified by his peers.

. . .

He says he worries that his climate stances are affecting his chances of publishing future research and winning grants. The largest of them, a four-year Department of Energy stipend to investigate discrepancies between climate models and real-world data, expires in September.

"There's a climate establishment," Dr. Christy said. "And I'm not in it."

For the full story, see:

MICHAEL WINES. "Though Scorned by Colleagues, a Climate-Change Skeptic Is Unbowed." The New York Times (Weds., JULY 16, 2014): A14.

(Note: ellipses added.)

(Note: the online version of the story has the date JULY 15, 2014.)

April 22, 2015

Today Is 15th Anniversary of Our Betrayal of Elián González

GonzalezElianSeizedOn2000-04-22.jpg"In this April 22, 2000 file photo, Elian Gonzalez is held in a closet by Donato Dalrymple, one of the two men who rescued the boy from the ocean, right, as government officials search the home of Lazaro Gonzalez, early Saturday morning, April 22, 2000, in Miami. Armed federal agents seized Elian Gonzalez from the home of his Miami relatives before dawn Saturday, firing tear gas into an angry crowd as they left the scene with the weeping 6-year-old boy." Source of caption and photo: online version of JENNIFER KAY and MATT SEDENSKY. "10 years later, few stirred by Elian Gonzalez saga." Omaha World-Herald (Thurs., April 22, 2010): 7A. (Note: the online version of the article is dated April 21, 2010 and has the title "10 years after Elian, US players mum or moving on.")

Today (April 22, 2015) is the 15th anniversary of the day when the Clinton Administration seized a six year old child in order to force him back into the slavery that his mother had died trying to escape.

April 21, 2015

Homer Spoke from a "Vengeful, Frighteningly Violent Time"

(p. 17) The Homeric epics are long, contradictory, repetitive, composite works, riddled with anachronisms, archaic vocabulary, metric filler and exceedingly graphic brutality. Over the millenniums, Nicolson asserts, they have been cleaned, scrubbed and sanitized by generations of translators, editors, librarians and scholars, in order to protect readers from the dangers of the atavistic world lurking just below the surface of the words. He writes that everyone from the editors at the Ptolemaic library in Alexandria to the great 18th-century poet Alexander Pope wished to civilize or tame the poems, "wanted to make Homer proper, to pasteurize him and transform him into something acceptable for a well-­governed city." Part of Nicolson's objective is to follow the poems back to the vengeful, frighteningly violent time and culture from which they came, and to restore some of their rawness.

For the full review, see:

BRYAN DOERRIES. "Songs of the Sirens." The New York Times Book Review (Sun., DEC. 28, 2014): 17.

(Note: ellipses added.)

(Note: the online version of the review has the date DEC. 26, 2014, and has the title "'Why Homer Matters,' by Adam Nicolson.")

The book under review is:

Nicolson, Adam. Why Homer Matters. New York: Henry Holt and Co., 2014.

April 20, 2015

International Evidence that Young Firms Create Most Jobs

(p. 252) Chiara Criscuolo, Peter N. Gal, and Carlo Menon compile empirical evidence concerning "The Dynamics of Employment Growth: New Evidence from 18 Countries." "[N]ot all small businesses are net job creators, showing that only young businesses--predominantly small--create a disproportionate number of jobs, confirming recent evidence for the United States. When disentangling the role of entry from the role of expansion of incumbent young firms, the data clearly shows that entry explains most of the contribution to job creation, followed by startups (i.e., firms that are less than three year old). While this remains true even during the recent great recession, the data shows a sharp decline in the contribution of entry and young firms to aggregate employment growth during the recession. More generally, the findings point to a decline in start-up rates over the past decade across all countries considered, which gives cause for concern, given their strong contribution to job creation." OECD Science, Technology and Industry Policy Papers No. 14, May 21, 2014. http://www.oecd-ilibrary.org/science-and-technology/the-dynamics-of-employment-growth_5jz417hj6hg6-en.


Taylor, Timothy. "Recommendations for Further Reading." Journal of Economic Perspectives 28, no. 3 (Summer 2014): 249-56.

(Note: bracketed letter in original.)

April 19, 2015

Successful Billionaire Mathematician Would Have Lost Math Contests, But Was Good at Slow Pondering

(p. D1) James H. Simons likes to play against type. He is a billionaire star of mathematics and private investment who often wins praise for his financial gifts to scientific research and programs to get children hooked on math.

But in his Manhattan office, high atop a Fifth Avenue building in the Flatiron district, he's quick to tell of his career failings.

He was forgetful. He was demoted. He found out the hard way that he was terrible at programming computers. "I'd keep forgetting the notation," Dr. Simons said. "I couldn't write programs to save my life."

After that, he was fired.

His message is clearly aimed at young people: If I can do it, so can you.

. . .

(p. D2) "I wasn't the fastest guy in the world," Dr. Simons said of his youthful math enthusiasms. "I wouldn't have done well in an Olympiad or a math contest. But I like to ponder. And pondering things, just sort of thinking about it and thinking about it, turns out to be a pretty good approach."

For the full story, see:

WILLIAM J. BROAD. "Seeker, Doer, Giver, Ponderer; A Billionaire Mathematician's Life of Ferocious Curiosity." The New York Times (Tues., JULY 8, 2014): D3.

(Note: ellipsis added.)

(Note: the online version of the story has the date JULY 7, 2014.)

April 18, 2015

In American Political System "It Will Be far More Difficult to Undo than to Do"

(p. 330) Jefferson traced the formation of the two main parties--to be known as Republicans and Federalists--to Hamilton's victory over assumption. For Jefferson, this event split Congress into pure, virtuous republicans and a "mercenary phalanx," "monarchists in principle," who "adhered to Hamilton of course as their leader in that principle."

Why did Jefferson retrospectively try to downplay his part in passing Hamilton's assumption scheme? While he understood the plan at the time better than he admitted, he probably did not see as clearly as Hamilton that the scheme created an unshakable foundation for federal power in America. The federal government had captured forever the bulk of American taxing power. In comparison, the location of the national capital seemed a secondary matter. It wasn't that Jefferson had been duped by Hamilton; Hamilton had explained his views at dizzying length. It was simply that he had been outsmarted by Hamilton, who had embedded an enduring political system in the details of the funding scheme. In an unsigned newspaper article that September, entitled "Address to the Public Creditors," Hamilton gave away the secret of his statecraft that so infuriated Jefferson: "Whoever considers the nature of our government with discernment will see that though obstacles and delays will frequently stand in the way of the adoption of good measures, yet when once adopted, they are likely to be stable and permanent. It will be far more difficult to undo than to do."


Chernow, Ron. Alexander Hamilton. New York: The Penguin Press, 2004.

(Note: italics in original.)

April 17, 2015

Disclosure Regulations Often Have Unintended Consequences

(p. B5) . . . , some disclosure works. Professor Levitin cites two examples. The first is an olfactory disclosure. Methane doesn't have any scent, but a foul smell is added to alert people to a gas leak. The second is A.T.M. fees. A study in Australia showed that once fees were disclosed, people avoided the high-fee machines and took out more when they had to go to them.

But to Omri Ben-Shahar, co-author of a recent book, "More Than You Wanted To Know: The Failure of Mandated Disclosure," these are cherry-picked examples in a world awash in useless disclosures. Of course, information is valuable. But disclosure as a regulatory mechanism doesn't work nearly well enough, he argues.

First, it really works only when things are simple. As soon as transactions become complex, disclosure starts to stumble. Buying a car, for instance, turns out to be several transactions: the purchase itself, the financing, maybe the trade-in of old car and various insurance and warranty decisions. These are all subject to various disclosure rules, but making the choices clear and useful has proved nigh impossible.

In complex transactions, we then must rely on intermediaries to give us advice. Because they are often conflicted, they, too, become subject to disclosure obligations. Ah, even more boilerplate to puzzle over!

And then there's the harm. Over the years, banks that sold complex securities often stuck impossible-to-understand clauses deep in prospectuses that "disclosed" what was really going on. When the securities blew up, as they often did, banks then fended off lawsuits by arguing they had done everything the law required and were therefore not liable.

"That's the harm of disclosure," Professor Ben-Shahar said. "It provides a safe harbor for practices that smell bad. It sanitizes every bad practice."

For the full review, see:

JESSE EISINGER. "In an Era of Disclosure, an Excess of Sunshine but a Paucity of Rules." The New York Times (Thurs., FEBRUARY 12, 2015): B5.

(Note: ellipsis added.)

(Note: the online version of the review has the date FEBRUARY 11, 2015.)

The book under review is:

Ben-Shahar, Omri, and Carl E. Schneider. More Than You Wanted to Know: The Failure of Mandated Disclosure. Princeton, NJ: Princeton University Press, 2014.

Eight Most Recent Comments:

Aaron said:

Interested to see how not only did Hamilton gain a vote, but also how Jefferson lost one.

Dave Megan said:

Merging of companies is always better when they have a better goal. It will give better service for the public.

Ed Rector said:

The 'quickened pace of production' of the early Reagan years was directly attributable to RR's massive deficit spending. The national debt almost tripled under the watch of St. Ronnie. BO will have to work overtime to even approach this record of accomplishment.

Aaron said:

The last two paragraphs comport perfectly with what Paul Tough describes in a book you posted on a few months ago, "How Children Succeed." Tough advocates that a stable, loving relationship between kids and their parents, especially in the first few years of life, produces self-assured and less anxious adults due to brain formation or chemical reactions that take place in a baby's brain (simplified summary). As always, appreciate the posts, especially the Paul Tough book.

Rev. Pfloyd said:

Hans' "The Best Stats You've Ever Seen" Ted Talk is my favorite Ted Talk ever, which is a pretty big statement when you share company with talks like Sir Ken Robinson's education talk and Steven Pinker's Human Nature and the Blank Slate" talk.

Rev. Pfloyd said:

Voting with your feet. And of course now people are fleeing France to move across the water to England for the same reason. It's truly a global world; soaking the rich really isn't an option anymore.

otacon said:

The media tends to be a willing participant in fanning the flames of racism. Check CNN or the Drudge Report. Every day there is at least one racially charged story. Every day. It has become a tool for news outlets to get clicks but ultimately is a disservice to pretty much everyone.

otacon said:

This is very dangerous and this doctor is acting completely irresponsibly. Are these students supposed to take Adderall for their entire lives or just until they pass American History class? Why not prescribe steroids for under performing children in sports?


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