Locke and Smith Showed How Economic Life Has Moral Value

(p. 241) Andrzej Rapaczynski discusses “The Moral Significance of Economic Life” in the most recent issue of Capitalism and Society. His abstract summarizes the argument (p. 242) compactly: “Much of the modern perception of the role of economic production in human life–whether on the Left or on the Right of the political spectrum–views it as an inferior, instrumental activity oriented toward self-preservation, self-interest, or profit, and thus as essentially distinct from the truly human action concerned with moral values, justice, and various forms of self-fulfillment. This widely shared worldview is rooted, on the one hand, in the Aristotelian tradition that sees labor as a badge of slavery, and freedom as lying in the domain of politics and pure (not technical) knowledge, and, on the other hand, in the aristocratic medieval Christian outlook, which–partly under Aristotle’s influence–sees nature as always already adapted (by divine design) to serving human bodily needs, and the purpose of life as directed toward higher, spiritual reality. . . . As against this, liberal thinkers, above all Locke, have developed an elaborate alternative to the Aristotelian worldview, reinterpreting the production process as a moral activity par excellence consisting in a gradual transformation of the alien nature into a genuinely human environment reflecting human design and providing the basis of human autonomy. Adam Smith completed Locke’s thought by explaining how production is essentially a form of cooperation among free individuals whose self-interested labor serves the best interest of all. The greatest “culture war” in history is to re-establish the moral significance of economic activity in the consciousness of modern political and cultural elites.” Capitalism and Society, December 2013, vol. 8, no. 2, http://capitalism.columbia.edu/volume-8-issue-2.

Source:
Taylor, Timothy. “Recommendations for Further Reading.” Journal of Economic Perspectives 28, no. 1 (Winter 2014): 235-42.
(Note: italics, and ellipses, in original.)

Climate Models Allow “the Modeler to Obtain Almost Any Desired Result”

Integrated assessment models (IAMs) are the commonly-used models that attempt to integrate climate science models with economic effect models. In the passage quoted below, “SCC” stands for “social cost of carbon.”

(p. 870) I have argued that IAMs are of little or no value for evaluating alternative climate change policies and estimating the SCC. On the contrary, an IAM-based analysis suggests a level of knowledge and precision that is nonexistent, and allows the modeler to obtain almost any desired result because key inputs can be chosen arbitrarily.

As I have explained, the physical mechanisms that determine climate sensitivity involve crucial feedback loops, and the parameter values that determine the strength of those feedback loops are largely unknown. When it comes to the impact of climate change, we know even less. IAM damage functions are completely made up, with no theoretical or empirical foundation. They simply reflect common beliefs (which might be wrong) regarding the impact of 2º C or 3º C of warming, and can tell us nothing about what might happen if the temperature increases by 5º C or more. And yet those damage functions are taken seriously when IAMs are used to analyze climate policy. Finally, IAMs tell us nothing about the likelihood and nature of catastrophic outcomes, but it is just such outcomes that matter most for climate change policy. Probably the best we can do at this point is come up with plausible estimates for probabilities and possible impacts of catastrophic outcomes. Doing otherwise is to delude ourselves.

For the full article, see:
Pindyck, Robert S. “Climate Change Policy: What Do the Models Tell Us?” Journal of Economic Literature 51, no. 3 (Sept. 2013): 860-72.

The Unintended Consequences of Requiring Monks to Read

(p. 28) The high walls that hedged about the mental life of the monks–the imposition of silence, the prohibition of questioning, the punishing of debate with slaps or blows of the whip–were all meant to affirm unambiguously that these pious communities were the opposite of the philosophical academies of Greece or Rome, places that had thrived upon the spirit of contradiction and cultivated a restless, wide-ranging curiosity.
All the same, monastic rules did require reading, and that was enough to set in motion an extraordinary chain of consequences. Reading was not optional or desirable or recommended; in a community that took its obligations with deadly seriousness, reading was obligatory. And reading required books. Books that were opened again and again eventually fell apart, however carefully they were handled. Therefore, almost inadvertently , monastic rules necessitated that monks repeatedly purchase or acquire books. In the course of the vicious Gothic Wars of the mid-sixth century and their still more miserable aftermath, the last commercial workshops of book production folded, and the vestiges of the book market fell apart. Therefore, again almost inadvertently, monastic rules necessitated that monks carefully preserve and copy those books that they already possessed.

Source:
Greenblatt, Stephen. The Swerve: How the World Became Modern. New York: W. W. Norton & Company, 2011.

Early Cars Were Playthings of the Idle Rich

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Source of book image: http://www.2luxury2.com/wp-content/uploads/2014/02/Steven-Parissien-The-Life-of-the-Automobile-678×1024.jpg

(p. C14) Mr. Parissien writes that Frenchman Nicolas Cugnot may well have built the first mechanical vehicle in 1769, a two-ton, steam-driven colossus that reportedly went out of control and crashed into a wall. It wasn’t until 1885 that Karl Benz, the acknowledged father of the automobile, debuted the first gasoline-powered motorcar, in Mannheim, Germany. It carried passengers just slightly quicker than they could walk.

With the arrival of that breakthrough, however, the race was on for who could come up with a sturdier, faster, more reliable motor car. Many of the innovators’ names are still familiar: Renault, Bentley and Daimler among them. Even piano makers Steinway & Sons tried their hand at building cars. Other companies appeared for a time and then vanished–Durant, Lanchester, Panhard and De Dion-Bouton–victims of bad guesses or bad timing. Much of Mr. Parissien’s story is devoted to the personalities, and eccentricities, of the men who created what for many years amounted to a plaything of the idle rich. Italian luxury builder Ettore Bugatti refused to sell one of his cars to King Zog of Albania because “the man’s table manners are beyond belief.”
It is the despotic Henry Ford who looms large in automotive history, not only for the introduction of his Model T but for his revolutionary system of shoveling raw materials in one end of his half-mile long Rouge River, Mich., factory complex and sending “Tin Lizzies” out the other end.

For the full review, see:
Patrick Cooke. “Book Review: ‘The Life of the Automobile’ by Steven Parissien; The history of cars, from playthings of the idle rich to emblems of the working man.” The Wall Street Journal (Sat., May 24, 2014): C14.
(Note: the online version of the review has the date May 23, 2014, an has the title “Book Review: ‘The Life of the Automobile’ by Steven Parissien; The history of cars, from playthings of the idle rich to emblems of the working man.”)

The book under review is:
Parissien, Steven. The Life of the Automobile: The Complete History of the Motor Car. New York: Thomas Dunne Books, 2014.

Privatizing TSA Screeners Has Worked Well

(p. 241) Chris Edwards makes the case for “Privatizing the Transportation Security Administration.” “More than 80 percent of Europe’s commercial airports use private screening companies, including those in Britain, France, Germany, and Spain. The other airports in Europe use their own in-house security, but no major country in Europe uses the national government’s aviation bureaucracy for screening. Europe’s airports moved to private contracting during the 1980s and 1990s after numerous hijackings and terrorist threats, and it has worked very well. Canada also uses private screening companies at its commercial airports, and some airports also use private firms for general airport security. . . . The 2001 legislation that created TSA established the SPP [Screening Partnership Program], which has allowed some airports to opt out of TSA screening and use private firms. The firms contract with TSA and are under federal regulatory control. Originally, there were five airports in the program, with San Francisco being the largest. All five have had good results with private screening and have stuck with it. The number of SPP airports has grown to 16 today.” Cato Institute Policy Analysis No. 742, November 19, 2013, http://www.cato.org/publications/policy-analysis/privatizing-transportation-security-administration.

Source:
Taylor, Timothy. “Recommendations for Further Reading.” Journal of Economic Perspectives 28, no. 1 (Winter 2014): 235-42.
(Note: ellipses, and bracketed word, in original.)

HR Regulations and Fear of Lawsuits Keep Managers from Firing Workers Who Do Not Work

(p. 1B) The biggest problem in your workplace has a name. His name is Jeff. . . .
Jeff sits two cubicles down from us, or three, or four. His real name may be John, Juan or Joan. He gets to the widget factory late, he leaves early and always mucks up his part of any group project. He complains, loudly, about the smallest things, and when you bring doughnuts for your birthday he probably takes three and then talks with his mouth full, too.
. . .
(p. 2B) . . . , morale suffers greatly when most of a company’s employees perceive that their supervisor is failing to deal with their low-performing co-worker, month after month, year after year.
For this, Hoogeveen blames a corporate culture that is so concerned about HR regulations, and the often-imagined threat of litigation, that bosses often fail to take into account how the trouble employee affects the larger climate.
. . .
. . . if Jeff doesn’t improve, he needs to be fired. This is perhaps the worst part of a boss’s job, Hoogeveen thinks. His eyes mist as he recalls firing an employee whom he liked, but who was simply a bad fit at QLI.
It’s human nature to avoid this conflict, to maintain the status quo and let Jeff be, he says. That’s what can and does happen at most Omaha companies.
But it’s bad for the employees, and it’s bad for business.
“A lot of this stuff is incredibly easy to understand,” says Omaha’s workplace mechanic [Kim Hoogeveen]. “It’s incredibly difficult to live.”

For the full story, see:
Hansen, Matthew. “Workplace Guru: Don’t Let Problem Worker Slide.” Omaha World-Herald (Mon., July 21, 2014): 1B-2B.
(Note: ellipses, and bracketed name, added.)
(Note: the online version of the article had the title “Hansen: Don’t let Jeff — the problem worker — slide, workplace guru says.”)

Entrepreneur Gutenberg’s Press Creatively Destroyed the Jobs of Scribes

(p. 32) Poggio possessed . . . [a] gift that set him apart from virtually all the other book-hunting humanists. He was a superbly well-trained scribe, with exceptionally fine handwriting, great powers of concentration, and a high degree of accuracy. It is difficult for us, at this distance, to take in the significance of such qualities: our technologies for producing transcriptions, facsimiles, and copies have almost entirely erased what was once an important personal achievement. That importance began to decline, though not at all precipitously, even in Poggio’s own lifetime, for by the 1430s a German entrepreneur, Johann Gutenberg, began experimenting with a new invention, movable type, which would revolutionize the reproduction and transmission of texts. By the century’s end printers, especially the great Aldus in Venice, would print Latin texts in a typeface whose clarity and elegance remain unrivalled after five centuries. That typeface was based on the beautiful handwriting of Poggio and his humanist friends. What Poggio did by hand to produce a single copy would soon be done mechanically to produce hundreds.

Source:
Greenblatt, Stephen. The Swerve: How the World Became Modern. New York: W. W. Norton & Company, 2011.
(Note: ellipsis, and bracketed word, added.)

New Details on Babylonian Version of Noah’s Ark

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Source of book image: http://britishmuseumblog.files.wordpress.com/2014/01/the-ark-before-noah_544.jpg

(p. C8) Mr. Finkel, a curator of cuneiform inscriptions at the British Museum, details his own long-standing fascination with the ark and that of his British Museum predecessors. First among these was George Smith, who in 1872, at age 32, deciphered a clay tablet that demonstrated that 1,000 years before the likely composition of the Book of Genesis, ancient Babylonians had been brooding over the same story of divine retribution that we find in the biblical account of Noah. So great was Smith’s shock that, on confirmation, he began to run about the room tearing off his clothes.
. . .
The tablets containing what we now know as the Epic of Gilgamesh were unearthed in the ruins of Nineveh, capital of the last great Assyrian king, Ashurbanipal, who was an avid collector of texts. His famous library was torched in 612 B.C., but, as Mr. Finkel points out, “fire to a clay librarian” is not the disaster it is to one who studies works on paper. Fired clay tablets endure, and nothing, Mr. Finkel assures us, can equal the thrill of digging one out from the earth like a potato.
But the most important tablet of Mr. Finkel’s career didn’t come from the ground. It was delivered to him in 1985 by a man named Douglas Simmonds, who brought in a number of cuneiform tablets collected by his father, a member of the Royal Air Force in the Middle East at the end of World War II. One of these–an iPhone-shaped tablet–had what was recognizably the first lines of a Babylonian flood narrative, but the rest was illegible at a superficial glance, and Simmonds was reluctant to leave the tablet at the museum for analysis. It wasn’t until 2009 that Mr. Finkel was able to borrow this treasure and undertake a meticulous study, which revealed an “instruction manual for building an ark” in the tablet’s 60 lines.
. . .
So then what was the Ark Tablet for? It is puzzling that it contains no narrative, listing rather shape, size, materials and their quantities. Attractive though it may be to think it was a hand-held guide for the boat builder, Mr. Finkel suggests instead that it served as an aide-mémoire for an itinerant storyteller. The detail is explained by audience demand: No one wants to be put on the spot with difficult “how” questions when facing an audience who knew all about building coracles. Ancient audiences, it seems, were as intrigued–and as skeptical–about the ark as we are.

For the full review, see:
JANET SOSKICE. “Make Yourself an Ark; A newly deciphered tablet suggests the best shape for an ark: not a wooden box but a circular coracle made of reeds.” The Wall Street Journal (Sat., May 17, 2014): C8.
(Note: ellipses added.)
(Note: the online version of the review has the date May 16, 2014, an has the title “Book Review: ‘The Ark Before Noah’ by Irving Finkel; A newly deciphered tablet suggests the best shape for an ark: not a wooden box but a circular coracle made of reeds.”)

The book under review is:
Finkel, Irving. The Ark before Noah: Decoding the Story of the Flood. London, UK: Hodder & Stoughton, Ltd., 2014.

Countries that Protect Jobs Stifle Economic Growth

(p. 240) In an “Interview” conducted by Jessie Romero, John Haltiwanger discusses changing patterns of job creation and destruction: “But now we’re seeing a decline in the entry rate and a pretty stark decline in the share of young businesses. . . . But it’s also important to recognize that the decline in the share of young firms has occurred because the impact of entry is not just at the point of entry, it’s also over the next five or 10 years. A wave of entrants come in, and some of them grow very rapidly, and some of them fail. That dynamic has slowed down. . . . If you look at young small businesses, or just young businesses period, the 90th percentile growth rate is incredibly high. Young businesses not only are volatile, but their growth rates also are tremendously skewed. It’s rare to have a young business take off, but those that do add lots of jobs and contribute a lot to productivity growth. We have found that startups together with high-growth firms, which are disproportionately young, account for roughly 70 percent of overall job creation in the United States. . . . “I think the evidence is overwhelming that countries have tried to stifle the [job] destruction process and this has caused problems. I’m hardly a fan of job destruction per se, but making it difficult for firms to contract, through restricting shutdowns, bankruptcies, layoffs, etc., can have adverse consequences. The reason is that there’s so much heterogeneity in productivity across businesses. So if you stifle that destruction margin, you’re going to keep lots of low-productivity businesses in existence, and that could lead to a sluggish economy. I just don’t think we have any choice in a modern market economy but to allow for that reallocation to go on. Of course, what you want is an environment where not only is there a lot of job destruction, but also a lot of job creation, so that when workers lose their jobs they either immediately transit to another job or their unemployment duration is low.” Econ Focus, Federal Reserve Bank of Richmond, Second Quarter 2013, pp. 30-34. http://www.richmondfed.org/publications/research/econ_focus/2013/q2/pdf/interview.pdf.

Source:
Taylor, Timothy. “Recommendations for Further Reading.” Journal of Economic Perspectives 28, no. 1 (Winter 2014): 235-42.
(Note: italics, ellipses, and bracketed word, in original.)

“Ego Depletion” from Distractions Reduces Ability to Perform Cognitively Demanding Tasks

(p. B1) One study from Microsoft indicated that programmers who were interrupted by an incoming email lost 10 minutes every time they switched from their original task, on top of however long it took them to answer the email. Earlier studies suggest that workers lose (p. B2) as much as 40% of their productive time when they are regularly interrupted.
. . .
. . . , people underestimate the cost of . . . distractions, partly because we underestimate the effects of what psychologists call “ego depletion.” The idea is that we have only so much willpower. Some neuroscientists believe the brain literally runs out of its fuel, glucose, when we have to perform cognitively demanding tasks. But exercising the self control required to not answer that incoming email is also cognitively demanding.

For the full story, see:
CHRISTOPHER MIMS. “KEYWORDS; The Distraction-Industrial Complex.” The Wall Street Journal (Mon., June 30, 2014): B1-B2.
(Note: ellipses added.)
(Note: the online version of the story has the date June 29, 2014, and has the title “KEYWORDS; Say No to the Distraction-Industrial Complex.”)

One of the early articles in the substantial literature on ego depletion, is:
Baumeister, Roy F., Ellen Bratslavsky, Mark Muraven, and Dianne M. Tice. “Ego Depletion: Is the Active Self a Limited Resource?” Journal of Personality and Social Psychology 74, no. 5 (May 1998): 1252-65.

An “Entrepreneurial” Scriptor for the Pope Could Earn 300 Florins a Year

Poggio was a scriptor for a pope who was fired. The jobless Poggio then sought classical manuscripts in obscure monasteries, and found De Rerum Natura.

(p. 21) Scriptors received no fixed stipend, but they were permitted to charge fees for executing documents and obtaining what were called “concessions of grace,” that is, legal favors in matters that required some technical correction or exception granted orally or in writing by the pope. And, of course, there were other, less official fees that would privately flow to someone who had the pope’s ear. In the mid-fifteenth century, the income for a secretary was 250 to 300 florins annually, and an entrepreneurial spirit could make much more. At the end of a twelve-year period in this office, Poggio’s colleague George of Trebizond had salted away over 4,000 florins in Roman banks, along with handsome investments in real estate.

Source:
Greenblatt, Stephen. The Swerve: How the World Became Modern. New York: W. W. Norton & Company, 2011.