I've been thinking about the number of injuries turning up everywhere from those electric hire scooters which I am tempted to try. (See here, for example.)
Having watched people on them (and some videos of people going all wobbly on them - you can search Youtube yourself), I reckon that part of the problem is that they do seem to need more of a sense of balance than they should.
Hence: why not have a three wheel design? They exist:
or this:
Surely these are better from a balance point of view? Surely the additional cost of an extra wheel is worth a safety increase?
I'd be tempted to legislate this, if I were in charge.
Thursday, June 13, 2019
He's so sorry
I watched Alan Jones on Anh Do's program last night, where he got to softest of receptions from the always affable Anh. Jones revisited the Julia Gillard "her father died of shame" insult, and as this tweet notes:
It was a very non-apology apology.
What's worse was Jones giggling that he had encouraged Malcolm Fraser to run with one of the original scare campaign ads based not on the other's side actual policy, but an imaginary one which you want voters to fear might become their policy. (And yes, everyone agrees that Labor used it in the case of "Mediscare" - but all sensible people thought these were ethically dubious at best, not something to giggle about.)
There was a discussion of him having had a heart attack in (as I now see via Googling) in 2017. Honestly, why doesn't the guy give up his day job and travel more while he has the time? He's politically obnoxious and full of himself and political discourse would only improve by his absence.
It was a very non-apology apology.
What's worse was Jones giggling that he had encouraged Malcolm Fraser to run with one of the original scare campaign ads based not on the other's side actual policy, but an imaginary one which you want voters to fear might become their policy. (And yes, everyone agrees that Labor used it in the case of "Mediscare" - but all sensible people thought these were ethically dubious at best, not something to giggle about.)
There was a discussion of him having had a heart attack in (as I now see via Googling) in 2017. Honestly, why doesn't the guy give up his day job and travel more while he has the time? He's politically obnoxious and full of himself and political discourse would only improve by his absence.
Americans get the health care they deserve?
Hey, it was only last week that I was speculating that Americans seem culturally inclined to want to avoid pain at all cost - hence opting for things like easy prescriptions to dangerous opioids, and epidurals for child birth over laughing gas.
Today I see that there's an article at The Atlantic that argues along similar lines - saying that maybe the American health system doesn't get the value for money that other nation's systems do because of American patients' expectations:
Today I see that there's an article at The Atlantic that argues along similar lines - saying that maybe the American health system doesn't get the value for money that other nation's systems do because of American patients' expectations:
For years, the United States’ high health-care costs and poor outcomes have provoked hand-wringing, and rightly so: Every other high-income country in the world spends less than America does as a share of GDP, and surpasses us in most key health outcomes.Another couple of paragraphs:
Recriminations tend to focus on how Americans pay for health care, and on our hospitals and physicians. Surely if we could just import Singapore’s or Switzerland’s health-care system to our nation, the logic goes, we’d get those countries’ lower costs and better results. Surely, some might add, a program like Medicare for All would help by discouraging high-cost, ineffective treatments.
But lost in these discussions is, well, us. We ought to consider the possibility that if we exported Americans to those other countries, their systems might end up with our costs and outcomes. That although Americans (rightly, in my opinion) love the idea of Medicare for All, they would rebel at its reality. In other words, we need to ask: Could the problem with the American health-care system lie not only with the American system but with American patients?
For example, one cost-reduction measure used around the world is to exclude an expensive treatment from health coverage if it hasn’t been solidly proved effective, or is only slightly more effective than cheaper alternatives. But when American insurance companies try this approach, they invariably run into a buzz saw of public outrage. “Any patient here would object to not getting the best possible treatment, even if the benefit is measured not in extra years of life but in months,” says Gilberto Lopes, the associate director for global oncology at the University of Miami’s cancer center. Lopes has also practiced in Singapore, where his very first patient shocked him by refusing the moderately expensive but effective treatment he prescribed for her cancer—a choice that turns out to be common among patients in Singapore, who like to pass the money in their government-mandated health-care savings accounts on to their children.Go read the rest.
Most experts agree that American patients are frequently overtreated, especially with regard to expensive tests that aren’t strictly needed. The standard explanation for this is that doctors and hospitals promote these tests to keep their income high. This notion likely contains some truth. But another big factor is patient preference. A study out of Johns Hopkins’s medical school found doctors’ two most common explanations for overtreatment to be patient demand and fear of malpractice suits—another particularly American concern.
How's that heatwave going
Still hot in India in a very long pre-Monsoon heatwave:
Nearly two-thirds of India sizzled on Tuesday under a spell of a heatwave that is on course to becoming the longest ever as scalding temperatures killed four train passengers, drained water supplies, and drove thousands of tourists to hill stations already bursting at the seams.I see other news sites say that the death toll from the heatwave is 36: but isn't it hard to believe that there are not more premature deaths than that in the poorest part of the community that has trouble accessing air conditioning?
Across large swathes of northern, central and peninsular India, the mercury breached the 45 degree mark, including in Jhansi in Uttar Pradesh, Churu and Bikaner in Rajasthan, Hisar and Bhiwani in Haryana, Patiala in Punjab, and Gwalior and Bhopal in Madhya Pradesh.
The Capital, which sweltered on its hottest June day in history on Monday (48 degrees Celsius) recorded as maximum temperature of 45.4 degrees Celcius at Palam in spite of a spell of light rain in the morning.
Stay the course, Japan
An article at Japan Times argues that the country just has to get with the times, and stop discriminating against tattoos. I didn't realise this aspect of how they came to be associated with criminality:
So, it wasn't a voluntary thing, initially.
The article continues:
Still does, in my books! OK, well, perhaps "live in the underworld" is a bit harsh, unless you mean the underworld where kitch rules. (As usual, I make exceptions for genuine tribal tattooing for people genuinely from tribes. And I don't mean the Bogan tribe.)
Anyway, the argument is that modern Japanese crims aren't getting them anymore:
Why does Japan fear tattoos so much? According to “Modern Encyclopedia of the Yakuza” (2004), the government in 1720 decided to reduce the punishment on some criminal offenses. Criminals would no longer have their noses or ears removed. Instead, their crimes would be identified with tattoos on the skin, usually the arms.
So, it wasn't a voluntary thing, initially.
The article continues:
Tattoos were popular with gangsters before and after the war for a number of reasons. Symbolically speaking, however, the act of being tattooed once showed a resolve to sever ties with ordinary society and live in the underworld.
Still does, in my books! OK, well, perhaps "live in the underworld" is a bit harsh, unless you mean the underworld where kitch rules. (As usual, I make exceptions for genuine tribal tattooing for people genuinely from tribes. And I don't mean the Bogan tribe.)
Anyway, the argument is that modern Japanese crims aren't getting them anymore:
According to a National Police Agency study in the early 1990s, 73 percent of all gang members had a tattoo. It’s likely this number has decreased since 1992, when the first anti-gang laws went into effect and gangsters began hiding their identities. Obviously, if you want to blend in and pass yourself off as an ordinary businessman, tattoos aren’t a plus.I've heard some of her music. Yes. Yes she is. :)
The new generation of gang members doesn’t get tattoos. Criminals are increasingly declining to get tattoos, while the rest of the world is embracing them as body art. Does anyone think U.S. pop star Ariana Grande is a menace to society?
A small but symbolic mass
From France 24:
The Notre-Dame cathedral will host its first mass this weekend since a fire ravaged the Paris landmark almost two months ago, the city’s diocese said Tuesday.
The mass led by Archbishop of Paris Michel Aupetit will be celebrated on a very small scale late Saturday, the diocese said.
It will take place in a “side chapel with a restricted number of people, for obvious security reasons,” it said.
Just 20 people are expected to take part, including priests and canons from the cathedral.
The event will be broadcast live by a French television channel so that Christians from all over France can participate, the diocese added.
Wednesday, June 12, 2019
No passport future?
I meant to post about this a month or so ago - the story about how face recognition and other biometric databases are expected to lead to "no passport" processing through airports in the future.
In related news, in the USA today, we get this:
The article does note that this whole system does carry the risk of extremely long delays if there is a hitch in the IT system.Your treasured and travel-weary passport may soon become, like your first mobile phone, a relic of the past, if border agencies from the UK to Singapore, the United Arab Emirates and our own have anything to do with it.The race is on to create a system whereby travellers will no longer need to present their documents to either a border official or passport kiosk.
For the Australian traveller, this could mean the days of standing in line at our international airports will end.
In related news, in the USA today, we get this:
Licence plate images and photos of individuals who travelled in and out of the United States were taken in a malicious hack impacting U.S. Customs and Border Protection (CBP), according to a report in the Washington Post. The agency learned last month about the breach, which took place thanks to a hack of an unnamed subcontractor.I wonder about the point of such a hack...
CBP, which blamed the subcontractor for failing to follow security and privacy rules by transferring the agency’s photos to its own network, operates a database of visa and passport photos as part of a face recognition system and database used widely at American airports despite criticism for privacy and accuracy failures. The agency processes over 1 million travellers per day and is building up to use the face recognition system in at least 20 airports thanks to a Trump executive order.
Geoengineering the oceans
Nature has an article (a comment piece) about the dearth of serious research into various suggestions made over the years to use the oceans to counter global warming. Its seems a lot of ideas are briefly floated but hardly anyone thinks about them very carefully.
The article does mention a lot of unintended possible consequences of some ideas:
The article does mention a lot of unintended possible consequences of some ideas:
A lack of funding is not the main reason for the research gaps. Although there have been few funding programmes targeted at marine-geoengineering experiments and modelling so far, many basic tests are cheap and can be done in the lab — for instance, assessing whether impurities in mineral powders are toxic to marine life. And a range of negative-emissions technologies, such as enhanced weathering of rocks to increase ocean alkalinity, are already being funded in targeted research programmes, including one in the United Kingdom. Other streams of research, such as modelling, are under way in Germany, and a call for research proposals has been made in Japan. Private money is being invested in some marine approaches, such as a proposed pilot study of the impacts of iron fertilization on fisheries off Chile. However, that project has stalled, largely because of a lack of support from scientists (see Nature 545, 393–394; 2017).It's clear that there is no simple idea that is an obvious panacea.
Another problem is that many geoengineering proposals and analyses are found on transient websites, not in peer-reviewed journals. For example, only half of the web links to ideas, plans and documents cited in a detailed 2009 synthesis study of marine-geoengineering approaches4 still worked when we examined them in 2018. By contrast, academic and intergovernmental documents from that era are easy to find.
Again, the reasons for this are unclear, but could include inadequate funding, privacy concerns about disclosing details of the methods, and maintenance of proprietary rights over technologies. Some scientists worry that even starting geoengineering research or reporting results could lead to deployment of inadequately studied approaches5.
Yet it is essential that investigations are solidly researched, openly discussed and made readily available, as demonstrated by the most-studied geoengineering approach, ocean iron fertilization. Much of the work drew from ocean biogeochemistry and has involved lab experiments, pilot studies in the Southern Ocean and modelling across ocean basins. All of this activity showed that the method will not work as anticipated6. Fertilizing 1,000 square kilometres of the upper ocean would increase the growth of phytoplankton but could have alarming side effects. For example, sinking algae could release methane, a greenhouse gas that is many times more potent than CO2.
Psycho on the streets
This week's Four Corners story on the background to the Bourke Street "murders by car" case was very good. Here's an article about how the show was put together. (It has a link to the show itself too.)
Again, the sort of investigative TV journalism that we only see on the public broadcaster.
Again, the sort of investigative TV journalism that we only see on the public broadcaster.
Tuesday, June 11, 2019
A Prime problem
It's annoying to note that subscribing to Prime to watch Good Omens has revealed a technical problem that seems to affect many people - there is a well publicised issue, going back a couple of years, that people with Samsung smart TVs in particular find that using the Prime App leads to an audio sync problem. The audio comes out slightly ahead of the video - meaning lips do not quite match the sounds by a continually noticeable half second or so.
It was much worse when watching Episode 1 of The Man in the High Castle, where there seemed to more close ups of talking faces in serious discussion.
From what I can gather, many think that it's a case of Amazon and Samsung blaming each other and no one ever coming up with a solution.
The way around it, I found last night, is to use a laptop that can cast to a Chromecast via Chrome. Annoyingly, the Prime Android app does not have a "cast" button built in - because Amazon does not get on with Google, either.
Casting from my mobile phone turned out to be a bit complicated (Chrome on Android seems to either always, or sometimes, not have a "cast" function built in, so I had to do screen mirroring which seemed to lead to something like standard definition video quality on the TV, not high definition.)
Anyway, it worked fine when casting from my son's laptop, at high definition.
But this really seems a (admittedly, very First World) problem that shouldn't exist.
It was much worse when watching Episode 1 of The Man in the High Castle, where there seemed to more close ups of talking faces in serious discussion.
From what I can gather, many think that it's a case of Amazon and Samsung blaming each other and no one ever coming up with a solution.
The way around it, I found last night, is to use a laptop that can cast to a Chromecast via Chrome. Annoyingly, the Prime Android app does not have a "cast" button built in - because Amazon does not get on with Google, either.
Casting from my mobile phone turned out to be a bit complicated (Chrome on Android seems to either always, or sometimes, not have a "cast" function built in, so I had to do screen mirroring which seemed to lead to something like standard definition video quality on the TV, not high definition.)
Anyway, it worked fine when casting from my son's laptop, at high definition.
But this really seems a (admittedly, very First World) problem that shouldn't exist.
The count continued
I've posted a few times over the years regarding the question of the number of people who count as "not straight". I took a guess (based on certain polls and studies) that it was probably about 4 to 5%, and seemingly had that vindicated (at least for America) by a Gallup poll last year which gave the figure of 4.5%.
I see that at The Conversation today, there's an article looking at various Australian survey evidence which might give an answer for here, but also usefully discussing the complexity of the matter.
I think that, while the surveys quoted seem to come in at a little under 4% for gay or bisexual, there is sufficient rubberiness that a 4 to 5% figure here may still be pretty accurate:
I see that at The Conversation today, there's an article looking at various Australian survey evidence which might give an answer for here, but also usefully discussing the complexity of the matter.
I think that, while the surveys quoted seem to come in at a little under 4% for gay or bisexual, there is sufficient rubberiness that a 4 to 5% figure here may still be pretty accurate:
Less is known about change over the time in the number and share of Australians who are non-heterosexual. This is because most data collections only began asking about sexual orientation in recent years.Or perhaps Australians are slightly less "queer" than Americans? That would be hard to believe.
Estimates based on the 2001/2002 and 2012/2013 instalments of the Australian Study of Health and Relationships (each canvassing about 20,000 men and women age 16-59), suggest an increase in the prevalence of non-heterosexuality across different measures.
The share of men identifying as homosexual or bisexual went up from 2.5% to 3.2%. The share of women identifying as lesbian or bisexual also rose, from 2.2% to 3.8%. While the share of men expressing some same-sex sexual attraction increased slightly (6.8% and 7.4%), this increased more markedly for women (12.9% and 16%). Similarly, the prevalence of lifetime same-sex sexual experience increased for both sexes, with the increment being more pronounced among women (8.5% to 14.7%) than men (6% to 6.6%).
Libertarians deserve to live in a police state
I'm rather sick of libertarians complaining about the policing and security law situation under the Coalition governments which they support because (basically) "but Labor wants more tax!".
Jason Soon and Sinclair Davidson both complain about the Federal police raids of last week and point to an IPA media release doing the same. Chris Berg on Twitter tried to do a "well this is a result of both sides of politics co-operating to increase powers" excuse, even though (I think) there has been commentary that recent investigations have not had to rely on recent changes. Jason complained about the newly elected NSW Liberal government now deploying drug sniffer dogs to Central station, to generically harass everyone going through their daily routine, not just people who go to known drug use venues (like doof doof music festivals.)
I agree with all of the complaints, but they're the ones determined to keep supporting the incredible secret state operations of Liberal/Coalition governments because they don't like Labor economic policies.
Look at the freaking awful record of the Liberals going back to 2004:
* the diplomatically and morally scandalous government ordered bugging of East Timor for commercial benefit. It's an outrageous use of our spy service against a near neighbour, and the Liberals just shrug it off. And its ultra-outrageous that there is a prosecution for disclosing it.
* the "operational matters" veil of secrecy that descended on what our Navy and paramilitary "Border Force" was doing to turn back boats - they could have been torpedoing boats for all the public knew and it would have depended on a sailor leaking the information for anyone to know.
* the whole "Border Force" re-branding to make it look and act more like a State paramilitary.
* the convenience of the AFP giving up an investigation when it's a leak that has pro-government benefit.
* the preparedness to leave wannabe boat arrivals in permanent land locked island detention centres with a shrug of the shoulders as to their health.
* now the Home Affairs Secretary Mike Pezzullo - who I think has been a key figure all through the rise of what I call authoritarian-friendly behaviour over the course of the Coalition government - having the hide to ring up a Senator directly to complain that he doesn't like the way he spoke about him on the media. Blind Freddy can see how wildly inappropriate this is for a "normal" government.
What's more, Sinclair Davidson runs a blog that is brimming with praise of the clearly authoritarian sympathetic Donald Trump (even if he doesn't personally care for him); and Jason Soon devotes most tweets to "oh, look at this ridiculous example of identity politics gone mad again."
Stop your whining, libertarians - you've made the call that you getting a tax cut and not wanting stronger climate change policy is more important than living in a secrecy loving, virtual police State.
Own it.
PS: and no, don't wave your hands about an imaginary "well, it would probably be just as bad under a Labor government" defence. As I say above, the Coalition has form going back too far now for that argument to be credible.
PPS: I see that Jason is citing Adam Creighton as "one of his gateways to post-libertarianism". What's the right term for you at the moment then, Jason? Transitioning?
Jason Soon and Sinclair Davidson both complain about the Federal police raids of last week and point to an IPA media release doing the same. Chris Berg on Twitter tried to do a "well this is a result of both sides of politics co-operating to increase powers" excuse, even though (I think) there has been commentary that recent investigations have not had to rely on recent changes. Jason complained about the newly elected NSW Liberal government now deploying drug sniffer dogs to Central station, to generically harass everyone going through their daily routine, not just people who go to known drug use venues (like doof doof music festivals.)
I agree with all of the complaints, but they're the ones determined to keep supporting the incredible secret state operations of Liberal/Coalition governments because they don't like Labor economic policies.
Look at the freaking awful record of the Liberals going back to 2004:
* the diplomatically and morally scandalous government ordered bugging of East Timor for commercial benefit. It's an outrageous use of our spy service against a near neighbour, and the Liberals just shrug it off. And its ultra-outrageous that there is a prosecution for disclosing it.
* the "operational matters" veil of secrecy that descended on what our Navy and paramilitary "Border Force" was doing to turn back boats - they could have been torpedoing boats for all the public knew and it would have depended on a sailor leaking the information for anyone to know.
* the whole "Border Force" re-branding to make it look and act more like a State paramilitary.
* the convenience of the AFP giving up an investigation when it's a leak that has pro-government benefit.
* the preparedness to leave wannabe boat arrivals in permanent land locked island detention centres with a shrug of the shoulders as to their health.
* now the Home Affairs Secretary Mike Pezzullo - who I think has been a key figure all through the rise of what I call authoritarian-friendly behaviour over the course of the Coalition government - having the hide to ring up a Senator directly to complain that he doesn't like the way he spoke about him on the media. Blind Freddy can see how wildly inappropriate this is for a "normal" government.
What's more, Sinclair Davidson runs a blog that is brimming with praise of the clearly authoritarian sympathetic Donald Trump (even if he doesn't personally care for him); and Jason Soon devotes most tweets to "oh, look at this ridiculous example of identity politics gone mad again."
Stop your whining, libertarians - you've made the call that you getting a tax cut and not wanting stronger climate change policy is more important than living in a secrecy loving, virtual police State.
Own it.
PS: and no, don't wave your hands about an imaginary "well, it would probably be just as bad under a Labor government" defence. As I say above, the Coalition has form going back too far now for that argument to be credible.
PPS: I see that Jason is citing Adam Creighton as "one of his gateways to post-libertarianism". What's the right term for you at the moment then, Jason? Transitioning?
Monday, June 10, 2019
Against the Dutch method
The Atlantic has a good article looking at the Dutch experience with euthanasia and it's most troubling aspect - allowing it for psychiatric illness:
It's very surprising that the Dutch people are not (as far as I know) agitating for a change to this practice.
Until about 2010, the controversial practice of psychiatric euthanasia was rare, despite being permitted since the mid-1990s. Most Dutch psychiatrists—like most other doctors and the Dutch public—disapprove of psychiatric euthanasia. Still, there has been a steady increase, with 83 cases in 2017; the per-capita equivalent in the United States would be about 1,600 cases a year. Unlike euthanasia in general, psychiatric euthanasia is predominantly given to women. Most of these cases involve the End of Life Clinic, a network of facilities affiliated with the largest Dutch euthanasia-advocacy organization. These clinics routinely handle euthanasia requests refused by other doctors. (Noa Pothoven sought euthanasia there but was refused.)An obvious question arises: How can any physician be sure that any patient with a serious psychiatric disorder, much less an 18-year-old, meets the legal criteria for euthanasia? The short answer is that the law gives considerable weight to their professional judgment.Compared with cases involving cancer or other terminal illnesses, the application of the eligibility criteria in psychiatric euthanasia depends much more on doctors’ opinions. Psychiatric diagnosis is not based on an objective laboratory or imaging test; generally, it is a more subjective assessment based on standard criteria agreed on by professionals in the field. Some doctors reach conclusions with which other doctors might reasonably disagree. Indeed, an otherwise healthy Dutch woman was euthanized 12 months after her husband’s death for “prolonged grief disorder”—a diagnosis listed in the International Classification of Diseases but not in the Diagnostic and Statistical Manual of Mental Disorders used by psychiatrists and psychologists around the world.Psychiatric disorders can indeed be chronic, but their prognosis is difficult to predict for a variety of reasons. There is a paucity of relevant, large longitudinal studies. Patients may get better or worse due to psychosocial factors beyond the control of mental-health providers. Also affecting prognoses is the varying quality and availability of mental-health care—which, even in wealthy countries, patients with significant symptoms may not receive. Noa Pothoven and her family had criticized the dearth of care options available in their country for patients like her. Indeed, more than one in five Dutch patients receiving psychiatric euthanasia have not previously been hospitalized; a significant minority with personality disorders did not receive psychotherapy, the staple of treatment for such conditions. When treatments are available, doctors in the Netherlands have the discretion to judge that there are “no alternatives” if patients refuse treatment.
It's very surprising that the Dutch people are not (as far as I know) agitating for a change to this practice.
Sheridan and faith
I had missed that Greg Sheridan has been making a bit of a splash with his religious writings, until I read this article in The Catholic Herald. Oddly:
Even more odd is choosing this description for his political views:
But generally speaking, I have usually found him relatively un-offensive for someone who writes in The Australian.
Although a practising Catholic, Sheridan is married to Jasbir Kaur “Jessie” Sheridan, who practises the Sikh religion along with their three sons.
Even more odd is choosing this description for his political views:
A conservative, Sheridan describes himself as politically “bisexual” (or, if you prefer, ambidextrous). That is, he leans neither to the Labor nor the Liberal party. His position is summarised by former prime minister, John Howard, who has said: “Last time I checked, God voted neither Labor nor Liberal; he certainly didn’t vote Green.”I'd like to know when the "bisexual" Sheridan last voted Labor!
But generally speaking, I have usually found him relatively un-offensive for someone who writes in The Australian.
Sunday, June 09, 2019
Saturday, June 08, 2019
Good Good Omens
I've signed up for a free one month on Amazon Prime just to watch the series based on the much loved book Good Omens.
I saw the first episode last night, and was not disappointed. I've only read the book once, so I had forgotten how clever the whole premise was - an angel and demon who have spent so much time on Earth they have both "gone native", and don't want to see it end with a "too soon" Apocalypse.
It's cheerful, clever and amusing, and looks like it had a generous production budget. Let's hope the quality keeps up throughout the 6 episodes...
I saw the first episode last night, and was not disappointed. I've only read the book once, so I had forgotten how clever the whole premise was - an angel and demon who have spent so much time on Earth they have both "gone native", and don't want to see it end with a "too soon" Apocalypse.
It's cheerful, clever and amusing, and looks like it had a generous production budget. Let's hope the quality keeps up throughout the 6 episodes...
More on the current state of capitalism
Axios had an article a couple of days ago that seems to not have attracted as much attention as it deserves:
But I am of the view that libertarian (sorry, "classical liberal") economists have nothing useful to say about this situation at all. They love the idea of accumulation of money so much that they never see any reason to stop or slow anyone or anything - no matter how rich - from accumulating more.
And more:A truly bizarre trend is having an impact on the economy — wealthy people and corporations have so much money they literally don't know what to do with it.Why it matters: At a time when growing income inequality is fueling voter discontent and underpinning an array of social movements, the top 1% of earners and big companies are holding record levels of unused cash.The big picture: U.S. companies raked in a record $2.3 trillion in corporate profits last year, while the country's total wealth increased by $6 trillion to $98.2 trillion (40% of which went to those with wealth over $100,000).So, where is all the money going? The IMF notes large companies around the world are overwhelmingly and uniformly choosing not to reinvest much of it into their businesses. They're hoarding it in cash and buying back stock."There are only 2 things that money can do — sit on a balance sheet unused, where it's just earned income earning an interest rate of zero," ICI chief economist Sean Collins points out. "Or it makes sense to release it to share buybacks or dividends."
- Companies could pay their workers more, but "that would be terrible for the stock market," says Neil Shearing, chief economist at Capital Economics — half-jokingly.
- Companies made a record $1.1 trillion in stock buybacks in 2018 and are on track to surpass that number this year. But they still have record cash holdings of close to $3 trillion.
Lots of people on Twitter are saying that if this is a surprise to anyone, they need to remember Marx. Lots of GIFS of guillotines are involved too - rather unhelpfully allowing the wingnut right to get hysterical that "Socialists!" really want another run at violent Marxist revolution. (Actually, they just want wingnuts to stop being idiots who count their money and hug their guns at night.)But even that hasn't been enough to account for all the new money. The top 1% of U.S. households are holding a record $303.9 billion of cash, a quantum leap from the under $15 billion they held just before the financial crisis.How we got here:
- The Fed's quantitative easing program pushed the cost of borrowing money to next to nothing for nearly a decade, allowing companies to splurge on debt for mergers and acquisitions and to boost revenue.
- At the same time, globalization allowed them to reduce labor costs, meaning that gains effectively were returned as profit and used by public companies to boost stock prices.
Between the lines: These factors, combined with legislative policies that have consistently favored business owners over workers, eroded unions and reduced employees ability to demand higher wages.
But I am of the view that libertarian (sorry, "classical liberal") economists have nothing useful to say about this situation at all. They love the idea of accumulation of money so much that they never see any reason to stop or slow anyone or anything - no matter how rich - from accumulating more.
Friday, June 07, 2019
The very convincing Stiglitz
Joseph Stiglitz has a very lengthy piece at the TLS, reviewing three books on capitalism but with a lot of his own commentary.
It's a great read. Wasn't Judith Sloan sneeringly rude to him when he was out in Australia last? When she can write as well and as convincingly as him, rather than being an overpaid free market shill for a billionaire's loss making vanity paper, I'll reconsider their respective merits.
Some extracts I liked:
And then this:
It's a great read. Wasn't Judith Sloan sneeringly rude to him when he was out in Australia last? When she can write as well and as convincingly as him, rather than being an overpaid free market shill for a billionaire's loss making vanity paper, I'll reconsider their respective merits.
Some extracts I liked:
By now it is clear that something is fundamentally wrong with modern capitalism. The 2008 global financial crisis showed that the system as currently constructed is neither efficient nor stable. If a slew of data hasn’t already convinced us that during forty years of slow economic growth in advanced economies the benefits overwhelmingly went to the top 1 per cent – or 0.1 per cent – the anti-establishment votes in the United States and United Kingdom certainly should. The mainstream economists, central bank governors and “centrist” Blairite and Clintonite politicians who set us on and maintained this dismal course and confidently pronounced that globalization and financial-market liberalization would bring sustained growth and financial benefits for all, have been soundly discredited.
Considering the devastation wrought by misguided financial policies over the past decade in particular, one might reasonably have expected a revolution in the economics profession akin to the Keynesian one in the aftermath of the Great Depression. But we tend to forget that, back in the 1930s, as the economy sank ever deeper into depression, many economists in the US and UK stuck to laissez-faire. Markets would correct themselves, they said; no need to meddle. And even after John Maynard Keynes brilliantly articulated what was wrong, and how government actions could set things right, a great number of economists did not want to follow his prescriptions, out of ideological fear of excessive government intervention. So it is no surprise, really, that the economics profession’s response to the 2008 crisis has been slow and halting.
And then this:
Our current economic system is often referred to as capitalism, a term – as Fred L. Block points out in Capitalism: The future of an illusion – that the left once used pejoratively and the right now champions as if it’s an unchanging and noble framework that delivers miraculous, never-ending growth from which everyone benefits, or would if only government didn’t interfere. But all the underlying premisses of this blanket term are wrong: no economy, and certainly no modern economy, has a private sector that functions in a vacuum. The government is right there alongside it, enacting rules and regulations, enforcing trading standards, backing up the banking system and stabilizing the market economy. Capitalism isn’t one, rigid system. It’s ever changing. And the promises made by its most reductive advocates – that deregulation, privatization and globalization will bring wellbeing to most citizens in all countries – have proven to be horribly wrong. (Globalization, to its credit, has contributed to the enormous decrease in global poverty: the successes in East Asia, in particular in China, where some 740 million have been moved out of poverty, wouldn’t have been possible without it. Still, mismanaged and inequitable globalization, with large agriculture subsidies for corporate farms in the advanced countries, has hurt the poorest of the poor: rural workers in the least developed countries.)But read the whole thing...
Two other crises accompany the crisis in our economy. The first is a crisis in our democracy, for the two are inseparable. It is through our political system that the rules of the economy are set, and when the outcomes of those rules are unacceptable – as in the 2008 crisis – the consequences must be addressed, and addressed through radical change. And those kinds of changes have to be made through the political system – otherwise, matters will only get worse, especially when a third interconnecting crisis is taken into consideration: the environment. Unfortunately, none of these books faces up to our system’s failure to address the existential question of the moment: climate change.
Bunch of weirdos
No one seems to have too firm a grip on what may come of the George Pell appeal. In one of the more unusual bits of media to come out of it, I saw Leigh Sales and David Marr on 7.30 last night discussing the matter of whether the Appeal Court covered in detail the issue of whether a fully vestment-ed Pell could plausibly get his penis out to commit the offence - and David Marr assured us that the judges had all agreed the vestments did not present a insurmountable restraint on such an act.
That doesn't sound so great for the appeal prospects, but on the other hand, it seems the Crown's barrister didn't perform well on his submissions, perhaps because he was sick? (He had to be asked to speak louder, more than one, apparently; and is reported to have stumbled in his answers to judges.)
But anyway, the bunch of ageing culture warrior Conservatives, when they are not comparing disastrous illnesses at Sinclair Davidson's cyber-home for the old and obnoxious, are dead keen on a Pell victory, and then a return to Rome to lead the church to some weird imaginary triumph. Look at this comment:
Bunch of weirdos.
That doesn't sound so great for the appeal prospects, but on the other hand, it seems the Crown's barrister didn't perform well on his submissions, perhaps because he was sick? (He had to be asked to speak louder, more than one, apparently; and is reported to have stumbled in his answers to judges.)
But anyway, the bunch of ageing culture warrior Conservatives, when they are not comparing disastrous illnesses at Sinclair Davidson's cyber-home for the old and obnoxious, are dead keen on a Pell victory, and then a return to Rome to lead the church to some weird imaginary triumph. Look at this comment:
Bunch of weirdos.
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