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Weiye Loh

If climate scientists are in it for the money, they're doing it wrong - 0 views

arstechnica.com/...nsus-its-not-for-the-money.ars

Climate Science Funding

shared by Weiye Loh on 01 Mar 11 - No Cached
  • Since it doesn't have a lot of commercial appeal, most of the people working in the area, and the vast majority of those publishing the scientific literature, work in academic departments or at government agencies. Penn State, home of noted climatologists Richard Alley and Michael Mann, has a strong geosciences department and, conveniently, makes the department's salary information available. It's easy to check, and find that the average tenured professor earned about $120,000 last year, and a new hire a bit less than $70,000.
  • That's a pretty healthy salary by many standards, but it's hardly a racket. Penn State appears to be on the low end of similar institutions, and is outdone by two other institutions in its own state (based on this report). But, more significantly for the question at hand, we can see that Earth Sciences faculty aren't paid especially well. Sure, they do much better than the Arts faculty, but they're somewhere in the middle of the pack, and get stomped on by professors in the Business and IT departments.
  • This is all, of course, ignoring what someone who can do the sort of data analysis or modeling of complex systems that climatologists perform might make if they went to Wall Street.
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  • It's also worth pointing out what they get that money for, as exemplified by a fairly typical program announcement for NSF grants. Note that it calls for studies of past climate change and its impact on the weather. This sort of research could support the current consensus view, but it just as easily might not. And here's the thing: it's impossible to tell before the work's done. Even a study looking at the flow of carbon into and out of the atmosphere, which would seem to be destined to focus on anthropogenic climate influences, might identify a previously unknown or underestimated sink or feedback. So, even if the granting process were biased (and there's been no indication that it is), there is no way for it to prevent people from obtaining contrary data. The granting system is also set up to induce people to publish it, since a grant that doesn't produce scientific papers can make it impossible for a professor to obtain future funding.
  • Maybe the money is in the perks that come with grants, which provide for travel and lab toys. Unfortunately, there's no indication that there's lots of money out there for the taking, either from the public or private sector. For the US government, spending on climate research across 13 different agencies (from the Department of State to NASA) is tracked by the US Climate Change Science Program. The group has tracked the research budget since 1989, but not everything was brought under its umbrella until 1991. That year, according to CCSP figures, about $1.45 billion was spent on climate research (all figures are in 2007 dollars). Funding peaked back in 1995 at $2.4 billion, then bottomed out in 2006 at only $1.7 billion.
  • Funding has gone up a bit over the last couple of years, and some stimulus money went into related programs. But, in general, the trend has been a downward one for 15 years; it's not an area you'd want to go into if you were looking for a rich source of grant money. If you were, you would target medical research, for which the NIH had a $31 billion budget plus another $10 billion in stimulus money.
  • Not all of this money went to researchers anyway; part of the budget goes to NASA, and includes some of that agency's (rather pricey) hardware. For example, the Orbiting Carbon Observatory cost roughly $200 million, but failed to go into orbit; its replacement is costing another $170 million.
  • Might the private sector make up for the lack of government money? Pretty unlikely. For starters, it's tough to identify many companies that have a vested interest in the scientific consensus. Renewable energy companies would seem to be the biggest winners, but they're still relatively tiny. Neither the largest wind or photovoltaic manufacturers (Vestas and First Solar) appear in the Financial Times' list of the world's 500 largest companies. In contrast, there are 16 oil companies in the of the top 100, and they occupy the top two spots. Exxon's profits in 2010 were nearly enough to buy both Vestas and First Solar, given their market valuations in late February.
  • climate researchers are scrambling for a piece of a smaller piece of the government-funded pie, and the resources of the private sector are far, far more likely to go to groups that oppose their conclusions.
  • If you were paying careful attention to that last section, you would have noticed something funny: the industry that seems most likely to benefit from taking climate change seriously produces renewable energy products. However, those companies don't employ any climatologists. They probably have plenty of space for engineers, materials scientists, and maybe a quantum physicist or two, but there's not much that a photovoltaic company would do with a climatologist. Even by convincing the public of their findings—namely, climate change is real, and could have serious impacts—the scientists are not doing themselves any favors in terms of job security or alternative careers.
  • But, surely, by convincing the public, or at least the politicians, that there's something serious here, they ensure their own funding? That's arguably not true either, and the stimulus package demonstrates that nicely. The US CCSP programs, in total, got a few hundred million dollars from the stimulus. In contrast, the Department of Energy got a few billion. Carbon capture and sequestration alone received $2.4 billion, more than the entire CCSP budget.
  • The problem is that climatologists are well equipped to identify potential problems, but very poorly equipped to solve them; it would be a bit like expecting an astronomer to know how to destroy a threatening asteroid.
  • The solutions to problems related to climate change are going to come in areas like renewable energy, carbon sequestration, and efficiency measures; that's where most of the current administration's efforts have focused. None of these are areas where someone studying the climate is likely to have a whole lot to add. So, when they advocate that the public take them seriously, they're essentially asking the public to send money to someone else.
Weiye Loh

Rationally Speaking: The sorry state of higher education - 0 views

rationallyspeaking.blogspot.com/...state-of-higher-education.html

Education Plagiarism Humanities Political Economy

shared by Weiye Loh on 03 Dec 10 - No Cached
  • two disconcerting articles crossed my computer screen, both highlighting the increasingly sorry state of higher education, though from very different perspectives. The first is “Ed Dante’s” (actually a pseudonym) piece in the Chronicle of Higher Education, entitled The Shadow Scholar. The second is Gregory Petsko’s A Faustian Bargain, published of all places in Genome Biology.
  • There is much to be learned by educators in the Shadow Scholar piece, except the moral that “Dante” would like us to take from it. The anonymous author writes:“Pointing the finger at me is too easy. Why does my business thrive? Why do so many students prefer to cheat rather than do their own work? Say what you want about me, but I am not the reason your students cheat.
  • The point is that plagiarism and cheating happen for a variety of reasons, one of which is the existence of people like Mr. Dante and his company, who set up a business that is clearly unethical and should be illegal. So, pointing fingers at him and his ilk is perfectly reasonable. Yes, there obviously is a “market” for cheating in higher education, and there are complex reasons for it, but he is in a position similar to that of the drug dealer who insists that he is simply providing the commodity to satisfy society’s demand. Much too easy of a way out, and one that doesn’t fly in the case of drug dealers, and shouldn’t fly in the case of ghost cheaters.
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  • As a teacher at the City University of New York, I am constantly aware of the possibility that my students might cheat on their tests. I do take some elementary precautionary steps
  • Still, my job is not that of the policeman. My students are adults who theoretically are there to learn. If they don’t value that learning and prefer to pay someone else to fake it, so be it, ultimately it is they who lose in the most fundamental sense of the term. Just like drug addicts, to return to my earlier metaphor. And just as in that other case, it is enablers like Mr. Dante who simply can’t duck the moral blame.
  • n open letter to the president of SUNY-Albany, penned by molecular biologist Gregory Petsko. The SUNY-Albany president has recently announced the closing — for budgetary reasons — of the departments of French, Italian, Classics, Russian and Theater Arts at his university.
  • Petsko begins by taking on one of the alleged reasons why SUNY-Albany is slashing the humanities: low enrollment. He correctly points out that the problem can be solved overnight at the stroke of a pen: stop abdicating your responsibilities as educators and actually put constraints on what your students have to take in order to graduate. Make courses in English literature, foreign languages, philosophy and critical thinking, the arts and so on, mandatory or one of a small number of options that the students must consider in order to graduate.
  • But, you might say, that’s cheating the market! Students clearly don’t want to take those courses, and a business should cater to its customers. That type of reasoning is among the most pernicious and idiotic I’ve ever heard. Students are not clients (if anything, their parents, who usually pay the tuition, are), they are not shopping for a new bag or pair of shoes. They do not know what is best for them educationally, that’s why they go to college to begin with. If you are not convinced about how absurd the students-as-clients argument is, consider an analogy: does anyone with functioning brain cells argue that since patients in a hospital pay a bill, they should be dictating how the brain surgeon operates? I didn’t think so.
  • Petsko then tackles the second lame excuse given by the president of SUNY-Albany (and common among the upper administration of plenty of public universities): I can’t do otherwise because of the legislature’s draconian cuts. Except that university budgets are simply too complicated for there not to be any other option. I know this first hand, I’m on a special committee at my own college looking at how to creatively deal with budget cuts handed down to us from the very same (admittedly small minded and dysfunctional) New York state legislature that has prompted SUNY-Albany’s action. As Petsko points out, the president there didn’t even think of involving the faculty and staff in a broad discussion of how to deal with the crisis, he simply announced the cuts on a Friday afternoon and then ran for cover. An example of very poor leadership to say the least, and downright hypocrisy considering all the talk that the same administrator has been dishing out about the university “community.”
  • Finally, there is the argument that the humanities don’t pay for their own way, unlike (some of) the sciences (some of the time). That is indubitably true, but irrelevant. Universities are not businesses, they are places of higher learning. Yes, of course they need to deal with budgets, fund raising and all the rest. But the financial and administrative side has one goal and one goal only: to provide the best education to the students who attend that university.
  • That education simply must include the sciences, philosophy, literature, and the arts, as well as more technical or pragmatic offerings such as medicine, business and law. Why? Because that’s the kind of liberal education that makes for an informed and intelligent citizenry, without which our democracy is but empty talk, and our lives nothing but slavery to the marketplace.
  • Maybe this is not how education works in the US. I thought that general (or compulsory) education (ie. up to high school) is designed to make sure that citizens in a democratic country can perform their civil duties. A balanced and well-rounded education, which includes a healthy mixture of science and humanities, is indeed very important for this purpose. However, college-level education is for personal growth and therefore the person must have a large say about what kind of classes he or she chooses to take. I am disturbed by Massimo's hospital analogy. Students are not ill. They don't go to college to be cured, or to be good citizens. They go to college to learn things that *they* want to learn. Patients are passive. Students are not.I agree that students typically do not know what kind of education is good for them. But who does?
  • students do have a saying in their education. They pick their major, and there are electives. But I object to the idea that they can customize their major any way they want. That assumes they know what the best education for them is, they don't. That's the point of education.
  • The students are in your class to get a good grade, any learning that takes place is purely incidental. Those good grades will look good on their transcript and might convince a future employer that they are smart and thus are worth paying more.
  • I don't know what the dollar to GPA exchange rate is these days, but I don't doubt that there is one.
  • Just how many of your students do you think will remember the extensive complex jargon of philosophy more than a couple of months after they leave your classroom?
  • and our lives nothing but slavery to the marketplace.We are there. Welcome. Where have you been all this time? In a capitalistic/plutocratic society money is power (and free speech too according to the supreme court). Money means a larger/better house/car/clothing/vacation than your neighbor and consequently better mating opportunities. You can mostly blame the women for that one I think just like the peacock's tail.
  • If a student of surgery fails to learn they might maim, kill or cripple someone. If an engineer of airplanes fails to learn they might design a faulty aircraft that fails and kills people. If a student of chemistry fails to learn they might design a faulty drug with unintended and unfortunate side effects, but what exactly would be the harm if a student of philosophy fails to learn Aristotle had to say about elements or Plato had to say about perfect forms? These things are so divorced from people's everyday activities as to be rendered all but meaningless.
  • human knowledge grows by leaps and bounds every day, but human brain capacity does not, so the portion of human knowledge you can personally hold gets smaller by the minute. Learn (and remember) as much as you can as fast as you can and you will still lose ground. You certainly have your work cut out for you emphasizing the importance of Thales in the Age of Twitter and whatever follows it next year.
Weiye Loh

The Dawn of Paid Search Without Keywords - Search Engine Watch (SEW) - 0 views

searchenginewatch.com/3641744

Search Engine Optimization Paid Search Capitalism

shared by Weiye Loh on 04 Feb 11 - No Cached
  • This year will fundamentally change how we think about and buy access to prospects, namely keywords. It is the dawn of paid search without keywords.
  • Google's search results were dominated by the "10 blue links" -- simple headlines, descriptions, and URLs to entice and satisfy searchers. Until it wasn't. Universal search wove in images, video, and real-time updates.
  • For most of its history, too, AdWords been presented in a text format even as the search results morphed into a multimedia experience. The result is that attention was pulled towards organic results at the expense of ads.
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  • Google countered that trend with their big push for universal paid search in 2010. It was, perhaps, the most radical evolution to the paid search results since the introduction of Quality Score. Consider the changes:
  • New ad formats: Text is no longer the exclusive medium for advertising on Google. No format exemplifies that more than Product List Ads (and their cousin, Product Extensions). There is no headline, copy or display URL. Instead, it's just a product image, name, price and vendor slotted in the highest positions on the right side. What's more, you don't choose keywords. We also saw display creep into image search results with Image Search Ads and traditional display ads.
  • New calls-to-action: The way you satisfy your search with advertising on Google has evolved as well. Most notably, through the introduction of click-to-call as an option for mobile search ads (as well as the limited release AdWords call metrics). Similarly, more of the site experience is being pulled into the search results. The beta Comparison Ads creates a marketplace for loan and credit card comparison all on Google. The call to action is comparison and filtering, not just clicking on an ad.
  • New buying/monetization models: Cost-per-click (CPC) and cost-per-thousand-impressions (CPM) are no longer the only ways you can buy. Comparison Ads are sold on a cost-per-lead basis. Product listing ads are sold on a cost-per-acquisition (CPA) basis for some advertisers (CPC for most).
  • New display targeting options: Remarketing (a.k.a. retargeting) brought highly focused display buys to the AdWords interface. Specifically, the ability to only show display ads to segments of people who visit your site, in many cases after clicking on a text ad.
  • New advertising automation: In a move that radically simplifies advertising for small businesses, Google began testing Google Boost. It involves no keyword research and no bidding. If you have a Google Places page, you can even do it without a website. It's virtually hands-off advertising for SMBs.
  • Of those changes, Google Product Listing Ads and Google Boost offer the best glimpse into the future of paid search without keywords. They're notable for dramatic departures in every step of how you advertise on Google: Targeting: Automated targeting toward certain audiences as determined by Google vs. keywords chosen by the advertiser. Ads: Product listing ads bring a product search like result in the top position in the right column and Boost promotes a map-like result in a preferred position above organic results. Pricing: CPA and monthly budget caps replace daily budgets and CPC bids.
  • For Google to continue their pace of growth, they need two things: Another line of business to complement AdWords, and display advertising is it. They've pushed even more aggressively into the channel, most notably with the acquisition of Invite Media, a demand side platform. To remove obstacles to profit and incremental growth within AdWords. These barriers are primarily how wide advertisers target and how much they pay for the people they reach (see: "Why Google Wants to Eliminate Bidding In Exchange for Your Profits").
Weiye Loh

takchek (读书 ): When Scientific Research and Higher Education become just Poli... - 0 views

takchek.blogspot.com/...tific-research-and-higher.html

Academia Education Politics Religion Capitalism

shared by Weiye Loh on 28 Feb 11 - No Cached
  • A mere two years after the passage of the economic stimulus package, the now Republican-controlled House of Representatives have started swinging their budget cutting axe at scientific research and higher education.One point stood out in the midst of all this "fiscal responsibility" talk:The House bill does not specify cuts to five of the Office of Science's six programs, namely, basic energy sciences, high-energy physics, nuclear physics, fusion energy sciences, and advanced scientific computing. However, it explicitly whacks funding for the biological and environmental research program from $588 million to $302 million, a 49% reduction that would effectively zero out the program for the remainder of the year. The program supports much of DOE's climate and bioenergy research and in the past has funded much of the federal government's work on decoding the human genome. - Science , 25 February 2011: Vol. 331 no. 6020 pp. 997-998 DOI: 10.1126/science.331.6020.997 Do the terms Big Oil, Creationism/Intelligent Design come to your mind?
  • In other somewhat related news, tenure rights are being weakened in Louisiana and state legislatures are trying to have greater control over how colleges are run. It is hard not to see that there seems to be a coordinated assault on academia (presumably since many academics are seen by the Republican right as leftist liberals.)Lawmakers are inserting themselves even more directly into the classroom in South Carolina, where a proposal would require professors to teach a minimum of nine credit hours per semester."I think we need to have professors in the classroom and not on sabbatical and out researching and doing things to that effect," State Rep. Murrell G. Smith Jr., a Republican, told the Associated Press.I think they are attempting to turn research universities into trade/vocational schools.
Weiye Loh

Cancer resembles life 1 billion years ago, say astrobiologists - microbiology, genomics... - 0 views

www.lifescientist.com.au/..._years_ago_say_astrobiologists

Cancer Evolution Life

shared by Weiye Loh on 17 Feb 11 - No Cached
  • astrobiologists, working with oncologists in the US, have suggested that cancer resembles ancient forms of life that flourished between 600 million and 1 billion years ago.
  • Read more about what this discovery means for cancer research.
  • The genes that controlled the behaviour of these early multicellular organisms still reside within our own cells, managed by more recent genes that keep them in check.It's when these newer controlling genes fail that the older mechanisms take over, and the cell reverts to its earlier behaviours and grows out of control.
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  • The new theory, published in the journal Physical Biology, has been put forward by two leading figures in the world of cosmology and astrobiology: Paul Davies, director of the Beyond Center for Fundamental Concepts in Science, Arizona State University; and Charles Lineweaver, from the Australian National University.
  • According to Lineweaver, this suggests that cancer is an atavism, or an evolutionary throwback.
  • In the paper, they suggest that a close look at cancer shows similarities with early forms of multicellular life.
  • “Unlike bacteria and viruses, cancer has not developed the capacity to evolve into new forms. In fact, cancer is better understood as the reversion of cells to the way they behaved a little over one billion years ago, when humans were nothing more than loose-knit colonies of only partially differentiated cells. “We think that the tumours that develop in cancer patients today take the same form as these simple cellular structures did more than a billion years ago,” he said.
  • One piece of evidence to support this theory is that cancers appear in virtually all metazoans, with the notable exception of the bizarre naked mole rat."This quasi-ubiquity suggests that the mechanisms of cancer are deep-rooted in evolutionary history, a conjecture that receives support from both paleontology and genetics," they write.
  • the genes that controlled this early multi-cellular form of life are like a computer operating system's 'safe mode', and when there are failures or mutations in the more recent genes that manage the way cells specialise and interact to form the complex life of today, then the earlier level of programming takes over.
  • Their notion is in contrast to a prevailing theory that cancer cells are 'rogue' cells that evolve rapidly within the body, overcoming the normal slew of cellular defences.
  • However, Davies and Lineweaver point out that cancer cells are highly cooperative with each other, if competing with the host's cells. This suggests a pre-existing complexity that is reminiscent of early multicellular life.
  • cancers' manifold survival mechanisms are predictable, and unlikely to emerge spontaneously through evolution within each individual in such a consistent way.
  • The good news is that this means combating cancer is not necessarily as complex as if the cancers were rogue cells evolving new and novel defence mechanisms within the body.Instead, because cancers fall back on the same evolved mechanisms that were used by early life, we can expect them to remain predictable, thus if they're susceptible to treatment, it's unlikely they'll evolve new ways to get around it.
  • If the atavism hypothesis is correct, there are new reasons for optimism," they write.
  • Weiye Loh on 17 Feb 11
     
    Feature: Inside DNA vaccines bioMD makes a bid for Andrew Forest's Allied Medical and Coridon Alexion acquires technology for MoCD therapy More > Most Popular Media Releases Cancer resembles life 1 billion years ago, say astrobiologists Feature: The challenge of a herpes simplex vaccine Feature: Proteomics power of pawpaw bioMD makes a bid for Andrew Forest's Allied Medical and Coridon Immune system boosting hormone might lead to HIV cure Biotechnology Directory Company Profile Check out this company's profile and more in the Biotechnology Directory! Biotechnology Directory Find company by name Find company by category Latest Jobs Senior Software Developer / Java Analyst Programm App Support Developer - Java / J2ee Solutions Consultant - VIC Technical Writer Product Manager (Fisheye/Crucible)   BUYING GUIDES Portable Multimedia Players Digital Cameras Digital Video Cameras LATEST PRODUCTS HTC Wildfire S Android phone (preview) Panasonic LUMIX DMC-GH2 digital camera HTC Desire S Android phone (preview) Qld ICT minister Robert Schwarten retires Movie piracy costs Aus economy $1.37 billion in 12 months: AFACT Wireless smartphones essential to e-health: CSIRO Aussie outsourcing CRM budgets to soar in 2011: Ovum Federal government to evaluate education revolution targets Business continuity planning - more than just disaster recovery Proving the value of IT - Part one 5 open source security projects to watch In-memory computing Information security in 2011 EFA shoots down 'unproductive' AFACT movie piracy study In Pictures: IBM hosts Galactic dinner Emerson Network Power launches new infrastructure solutions Consumers not smart enough for smartphones? Google one-ups Apple online media subscription service M2M offerings expand as more machines go online India cancels satellite spectrum deal after controversy Lenovo profit rises in Q3 on strong PC sales in China Taiwan firm to supply touch sensors to Samsung HP regains top position in India's PC market Copyright 20
Weiye Loh

Cash-Strapped Scientists Turn to Public Crowd-Funding | The Utopianist - Think Bigger - 0 views

utopianist.com/...s-turn-to-public-crowd-funding

Science Crowd-Sourcing Funding Academic Research Cultural Industries

shared by Weiye Loh on 19 Jul 11 - No Cached
  • Weiye Loh on 19 Jul 11
     
    These websites started primarily as a way to provide funding for creative projects involving film, music and other art mediums. Scientists using crowd funding is a relatively new phenomenon. Here's how The New York Times described it: "As research budgets tighten at universities and federal financing agencies, a new crop of Web-savvy scientists is hoping the wisdom - and generosity - of the crowds will come to the rescue." "Most crowd funding platforms thrive on transparency and a healthy dose of self-promotion but lack the safeguards and expert assessment of a traditional review process. Instead, money talks: the public decides which projects are worth pursuing by fully financing them."
Weiye Loh

True Enough : CJR - 0 views

www.cjr.org/...true_enough.php

Public Relations Journalism

shared by Weiye Loh on 08 May 11 - No Cached
  • The dangers are clear. As PR becomes ascendant, private and government interests become more able to generate, filter, distort, and dominate the public debate, and to do so without the public knowing it. “What we are seeing now is the demise of journalism at the same time we have an increasing level of public relations and propaganda,” McChesney said. “We are entering a zone that has never been seen before in this country.”
  • Michael Schudson, a journalism professor at Columbia University, cjr contributor, and author of Discovering the News, said modern public relations started when Ivy Lee, a minister’s son and a former reporter at the New York World, tipped reporters to an accident on the Pennsylvania Railroad. Before then, railroads had done everything they could to cover up accidents. But Lee figured that crashes, which tend to leave visible wreckage, were hard to hide. So it was better to get out in front of the inevitable story. The press release was born. Schudson said the rise of the “publicity agent” created deep concern among the nation’s leaders, who distrusted a middleman inserting itself and shaping messages between government and the public. Congress was so concerned that it attached amendments to bills in 1908 and 1913 that said no money could be appropriated for preparing newspaper articles or hiring publicity agents.
  • But World War I pushed those concerns to the side. The government needed to rally the public behind a deeply unpopular war. Suddenly, publicity agents did not seem so bad.
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  • “After the war, PR becomes a very big deal,” Schudson said. “It was partly stimulated by the war and the idea of journalists and others being employed by the government as propagandists.” Many who worked for the massive wartime propaganda apparatus found an easy transition into civilian life.
  • People “became more conscious that they were not getting direct access, that it was being screened for them by somebody else,” Schudson said. But there was no turning back. PR had become a fixture of public life. Concern about the invisible filter of public relations became a steady drumbeat in the press
  • When public relations began its ascent in the early twentieth century, journalism was rising alongside it. The period saw the ferocious work of the muckrakers, the development of the great newspaper chains, and the dawn of radio and, later, television. Journalism of the day was not perfect; sometimes it was not even good. But it was an era of expansion that eventually led to the powerful press of the mid to late century.
  • Now, during a second rise of public relations, we are in an era of massive contraction in traditional journalism. Bureaus have closed, thousands of reporters have been laid off, once-great newspapers like the Rocky Mountain News have died. The Pew Center took a look at the impact of these changes last year in a study of the Baltimore news market. The report, “How News Happens,” found that while new online outlets had increased the demand for news, the number of original stories spread out among those outlets had declined. In one example, Pew found that area newspapers wrote one-third the number of stories about state budget cuts as they did the last time the state made similar cuts in 1991. In 2009, Pew said, The Baltimore Sun produced 32 percent fewer stories than it did in 1999.
  • even original reporting often bore the fingerprints of government and private public relations. Mark Jurkowitz, associate director the Pew Center, said the Baltimore report concentrated on six major story lines: state budget cuts, shootings of police officers, the University of Maryland’s efforts to develop a vaccine, the auction of the Senator Theater, the installation of listening devices on public busses, and developments in juvenile justice. It found that 63 percent of the news about those subjects was generated by the government, 23 percent came from interest groups or public relations, and 14 percent started with reporters.
  • The Internet makes it easy for public relations people to reach out directly to the audience and bypass the press, via websites and blogs, social media and videos on YouTube, and targeted e-mail.
  • Some experts have argued that in the digital age, new forms of reporting will eventually fill the void left by traditional newsrooms. But few would argue that such a point has arrived, or is close to arriving. “There is the overwhelming sense that the void that is created by the collapse of traditional journalism is not being filled by new media, but by public relations,” said John Nichols, a Nation correspondent and McChesney’s co-author. Nichols said reporters usually make some calls and check facts. But the ability of government or private public relations to generate stories grows as reporters have less time to seek out stories on their own. That gives outside groups more power to set the agenda.
  • Weiye Loh on 08 May 11
     
    In their recent book, The Death and Life of American Journalism, Robert McChesney and John Nichols tracked the number of people working in journalism since 1980 and compared it to the numbers for public relations. Using data from the US Bureau of Labor Statistics, they found that the number of journalists has fallen drastically while public relations people have multiplied at an even faster rate. In 1980, there were about .45 PR workers per one hundred thousand population compared with .36 journalists. In 2008, there were .90 PR people per one hundred thousand compared to .25 journalists. That's a ratio of more than three-to-one, better equipped, better financed.
Weiye Loh

Data Without Borders - 0 views

flowingdata.com/...data-without-borders

Data Open Source Collaboration NGO Research Methodology

shared by Weiye Loh on 21 Jun 11 - No Cached
  • Weiye Loh on 21 Jun 11
     
    Data is everywhere, but use of data is not. So many of our efforts are centered around making money or getting people to buy more things, and this is understandable; however, there are neglected areas that could actually have a huge impact on the way we live. Jake Porway, a data scientist at The New York Times, has a proposition for you, tentatively called Data Without Borders. [T]here are lots of NGOs and non-profits out there doing wonderful things for the world, from rehabilitating criminals, to battling hunger, to providing clean drinking water. However, they're increasingly finding themselves with more and more data about their practices, their clients, and their missions that they don't have the resources or budgets to analyze. At the same time, the data/dev communities love hacking together weekend projects where we play with new datasets or build helpful scripts, but they usually just culminate in a blog post or some Twitter buzz. Wouldn't it be rad if we could get these two sides together?
Weiye Loh

Essay - The End of Tenure? - NYTimes.com - 0 views

www.nytimes.com/...Shea-t.html

Academia

shared by Weiye Loh on 07 Sep 10 - No Cached
  • The cost of a college education has risen, in real dollars, by 250 to 300 percent over the past three decades, far above the rate of inflation. Elite private colleges can cost more than $200,000 over four years. Total student-loan debt, at nearly $830 billion, recently surpassed total national credit card debt. Meanwhile, university presidents, who can make upward of $1 million annually, gravely intone that the $50,000 price tag doesn’t even cover the full cost of a year’s education.
  • Then your daughter reports that her history prof is a part-time adjunct, who might be making $1,500 for a semester’s work. There’s something wrong with this picture.
  • The higher-ed jeremiads of the last generation came mainly from the right. But this time, it’s the tenured radicals — or at least the tenured liberals — who are leading the charge. Hacker is a longtime contributor to The New York Review of Books and the author of the acclaimed study “Two Nations: Black and White, Separate, Hostile, Unequal,”
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  • And these two books arrive at a time, unlike the early 1990s, when universities are, like many students, backed into a fiscal corner. Taylor writes of walking into a meeting one day and learning that Columbia’s endowment had dropped by “at least” 30 percent. Simply brushing off calls for reform, however strident and scattershot, may no longer be an option.
  • The labor system, for one thing, is clearly unjust. Tenured and tenure-track professors earn most of the money and benefits, but they’re a minority at the top of a pyramid. Nearly two-thirds of all college teachers are non-tenure-track adjuncts like Matt Williams, who told Hacker and Dreifus he had taught a dozen courses at two colleges in the Akron area the previous year, earning the equivalent of about $8.50 an hour by his reckoning. It is foolish that graduate programs are pumping new Ph.D.’s into a world without decent jobs for them. If some programs were phased out, teaching loads might be raised for some on the tenure track, to the benefit of undergraduate education.
  • it might well be time to think about vetoing Olympic-quality athletic ­facilities and trimming the ranks of administrators. At Williams, a small liberal arts college renowned for teaching, 70 percent of employees do something other than teach.
  • But Hacker and Dreifus go much further, all but calling for an end to the role of universities in the production of knowledge. Spin off the med schools and research institutes, they say. University presidents “should be musing about education, not angling for another center on antiterrorist technologies.” As for the humanities, let professors do research after-hours, on top of much heavier teaching schedules. “In other occupations, when people feel there is something they want to write, they do it on their own time and at their own expense,” the authors declare. But it seems doubtful that, say, “Battle Cry of Freedom,” the acclaimed Civil War history by Princeton’s James McPherson, could have been written on the weekends, or without the advance spadework of countless obscure monographs. If it is false that research invariably leads to better teaching, it is equally false to say that it never does.
  • Hacker’s home institution, the public Queens College, which has a spartan budget, commuter students and a three-or-four-course teaching load per semester. Taylor, by contrast, has spent his career on the elite end of higher education, but he is no less disillusioned. He shares Hacker and Dreifus’s concerns about overspecialized research and the unintended effects of tenure, which he believes blocks the way to fresh ideas. Taylor has backed away from some of the most incendiary proposals he made last year in a New York Times Op-Ed article, cheekily headlined “End the University as We Know It” — an article, he reports, that drew near-universal condemnation from academics and near-universal praise from everyone else. Back then, he called for the flat-out abolition of traditional departments, to be replaced by temporary, “problem-centered” programs focusing on issues like Mind, Space, Time, Life and Water. Now, he more realistically suggests the creation of cross-­disciplinary “Emerging Zones.” He thinks professors need to get over their fear of corporate partnerships and embrace efficiency-enhancing technologies.
  • It is not news that America is a land of haves and have-nots. It is news that colleges are themselves dividing into haves and have-nots; they are becoming engines of inequality. And that — not whether some professors can afford to wear Marc Jacobs — is the real scandal.
  • Weiye Loh on 07 Sep 10
     
    The End of Tenure? By CHRISTOPHER SHEA Published: September 3, 2010
Weiye Loh

The overblown crisis in American education : The New Yorker - 0 views

www.newyorker.com/...100927taco_talk_lemann

Education

shared by Weiye Loh on 20 Sep 10 - No Cached
  • it’s odd that a narrative of crisis, of a systemic failure, in American education is currently so persuasive. This back-to-school season, we have Davis Guggenheim’s documentary about the charter-school movement, “Waiting for ‘Superman’ ”; two short, dyspeptic books about colleges and universities, “Higher Education?,” by Andrew Hacker and Claudia Dreifus, and “Crisis on Campus,” by Mark C. Taylor; and a lot of positive attention to the school-reform movement in the national press. From any of these sources, it would be difficult to reach the conclusion that, over all, the American education system works quite well.
  • In higher education, the reform story isn’t so fully baked yet, but its main elements are emerging. The system is vast: hundreds of small liberal-arts colleges; a new and highly leveraged for-profit sector that offers degrees online; community colleges; state universities whose budgets are being cut because of the recession; and the big-name private universities, which get the most attention. You wouldn’t design a system this way—it’s filled with overlaps and competitive excess. Much of it strives toward an ideal that took shape in nineteenth-century Germany: the university as a small, élite center of pure scholarly research. Research is the rationale for low teaching loads, publication requirements, tenure, tight-knit academic disciplines, and other practices that take it on the chin from Taylor, Hacker, and Dreifus for being of little benefit to students or society.
  • Yet for a system that—according to Taylor, especially—is deeply in crisis, American higher education is not doing badly. The lines of people wanting to get into institutions that the authors say are just waiting to cheat them by overcharging and underteaching grow ever longer and more international, and the people waiting in those lines don’t seem deterred by price increases, even in a terrible recession.
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  • There have been attempts in the past to make the system more rational and less redundant, and to shrink the portion of it that undertakes scholarly research, but they have not met with much success, and not just because of bureaucratic resistance by the interested parties. Large-scale, decentralized democratic societies are not very adept at generating neat, rational solutions to messy situations. The story line on education, at this ill-tempered moment in American life, expresses what might be called the Noah’s Ark view of life: a vast territory looks so impossibly corrupted that it must be washed away, so that we can begin its activities anew, on finer, higher, firmer principles. One should treat any perception that something so large is so completely awry with suspicion, and consider that it might not be true—especially before acting on it.
  • Weiye Loh on 20 Sep 10
     
    mass higher education is one of the great achievements of American democracy. It embodies a faith in the capabilities of ordinary people that the Founders simply didn't have.
Weiye Loh

Why Are the Rich So Good at the Internet? | Fast Company - 0 views

www.fastcompany.com/...e-rich-so-good-at-the-internet

Internet Income Inequality Social Divide

shared by Weiye Loh on 25 Nov 10 - No Cached
  • It even suggests the existence of a tipping point, where Internet use takes off at a certain income level.
  • even among groups that own the necessary technology, less wealth equates to less (and less varied) Internet usage.
  • The report, an umbrella analysis of three Pew surveys conducted in 2009 and 2010, compares Internet use among American households in four different income brackets: less than $30,000 a year; $30,000-50,000; $50,000-75,000; and greater than $75,000. Respondents--more than 3,000 people participated--were asked a variety of questions about how often they used the Internet, and what sorts of services they took advantage of (such as email, online news, booking travel online, or health research).
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  • As might be expected, the wealthier used the Internet more.
  • Almost 90% of the wealthiest respondents reported broadband access at home. Of those in the under-$30,000 households, that figure was only 40%. "I would expect some type of correlation," says Jansen. "But we controlled for community type--urban, rural, suburban--educational attainment, race, ethnicity, gender, and age." None was nearly so strongly correlated as income.
  • Age did have some effect, and rural regions were a good deal less wired
  • Once a modestly middle-class family buys a computer and Internet access, why is it that they spend less time researching products online than their wealthier counterparts, given that they have a tighter budget than the ultra-wealthy?
  • Jansen notes that for many questions Pew asked about Internet use, there appeared to be a tipping point somewhere in the $30,000-$50,000 range. Consider, for instance, the data on those who researched products online. Only 67% of lowest-income Internet users research products online. Make it over the hump into the $30,000-$50,000 bracket, though, and all of a sudden 81% of internet users do so--a jump of 14 points. But then as you climb the income ladder, the change in behavior begins to level out, just climbing a few percentage points with each bracket
  • "It would be interesting to look at what is going on at that particular income level," says Jansen, suggesting a potential tack for further research, "that seems to indicate a fairly robust use of technology and interest."
  • Jansen, like any careful researcher, cautions against confusing correlation with causation. It may be that people are using the web to make their fortunes, and not using their fortunes to surf the web.
  • Weiye Loh on 25 Nov 10
     
    Pew Internet has released a report finding that income is the strongest predictor of whether, how often, and in what ways Americans use the web.
Weiye Loh

The Inequality That Matters - Tyler Cowen - The American Interest Magazine - 0 views

www.the-american-interest.com/article-bd.cfm

Income Inequality Social Divide Economy

shared by Weiye Loh on 16 Dec 10 - No Cached
  • most of the worries about income inequality are bogus, but some are probably better grounded and even more serious than even many of their heralds realize.
  • In terms of immediate political stability, there is less to the income inequality issue than meets the eye. Most analyses of income inequality neglect two major points. First, the inequality of personal well-being is sharply down over the past hundred years and perhaps over the past twenty years as well. Bill Gates is much, much richer than I am, yet it is not obvious that he is much happier if, indeed, he is happier at all. I have access to penicillin, air travel, good cheap food, the Internet and virtually all of the technical innovations that Gates does. Like the vast majority of Americans, I have access to some important new pharmaceuticals, such as statins to protect against heart disease. To be sure, Gates receives the very best care from the world’s top doctors, but our health outcomes are in the same ballpark. I don’t have a private jet or take luxury vacations, and—I think it is fair to say—my house is much smaller than his. I can’t meet with the world’s elite on demand. Still, by broad historical standards, what I share with Bill Gates is far more significant than what I don’t share with him.
  • when average people read about or see income inequality, they don’t feel the moral outrage that radiates from the more passionate egalitarian quarters of society. Instead, they think their lives are pretty good and that they either earned through hard work or lucked into a healthy share of the American dream.
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  • This is why, for example, large numbers of Americans oppose the idea of an estate tax even though the current form of the tax, slated to return in 2011, is very unlikely to affect them or their estates. In narrowly self-interested terms, that view may be irrational, but most Americans are unwilling to frame national issues in terms of rich versus poor. There’s a great deal of hostility toward various government bailouts, but the idea of “undeserving” recipients is the key factor in those feelings. Resentment against Wall Street gamesters hasn’t spilled over much into resentment against the wealthy more generally. The bailout for General Motors’ labor unions wasn’t so popular either—again, obviously not because of any bias against the wealthy but because a basic sense of fairness was violated. As of November 2010, congressional Democrats are of a mixed mind as to whether the Bush tax cuts should expire for those whose annual income exceeds $250,000; that is in large part because their constituents bear no animus toward rich people, only toward undeservedly rich people.
  • envy is usually local. At least in the United States, most economic resentment is not directed toward billionaires or high-roller financiers—not even corrupt ones. It’s directed at the guy down the hall who got a bigger raise. It’s directed at the husband of your wife’s sister, because the brand of beer he stocks costs $3 a case more than yours, and so on. That’s another reason why a lot of people aren’t so bothered by income or wealth inequality at the macro level. Most of us don’t compare ourselves to billionaires. Gore Vidal put it honestly: “Whenever a friend succeeds, a little something in me dies.”
  • Occasionally the cynic in me wonders why so many relatively well-off intellectuals lead the egalitarian charge against the privileges of the wealthy. One group has the status currency of money and the other has the status currency of intellect, so might they be competing for overall social regard? The high status of the wealthy in America, or for that matter the high status of celebrities, seems to bother our intellectual class most. That class composes a very small group, however, so the upshot is that growing income inequality won’t necessarily have major political implications at the macro level.
  • All that said, income inequality does matter—for both politics and the economy.
  • The numbers are clear: Income inequality has been rising in the United States, especially at the very top. The data show a big difference between two quite separate issues, namely income growth at the very top of the distribution and greater inequality throughout the distribution. The first trend is much more pronounced than the second, although the two are often confused.
  • When it comes to the first trend, the share of pre-tax income earned by the richest 1 percent of earners has increased from about 8 percent in 1974 to more than 18 percent in 2007. Furthermore, the richest 0.01 percent (the 15,000 or so richest families) had a share of less than 1 percent in 1974 but more than 6 percent of national income in 2007. As noted, those figures are from pre-tax income, so don’t look to the George W. Bush tax cuts to explain the pattern. Furthermore, these gains have been sustained and have evolved over many years, rather than coming in one or two small bursts between 1974 and today.1
  • At the same time, wage growth for the median earner has slowed since 1973. But that slower wage growth has afflicted large numbers of Americans, and it is conceptually distinct from the higher relative share of top income earners. For instance, if you take the 1979–2005 period, the average incomes of the bottom fifth of households increased only 6 percent while the incomes of the middle quintile rose by 21 percent. That’s a widening of the spread of incomes, but it’s not so drastic compared to the explosive gains at the very top.
  • The broader change in income distribution, the one occurring beneath the very top earners, can be deconstructed in a manner that makes nearly all of it look harmless. For instance, there is usually greater inequality of income among both older people and the more highly educated, if only because there is more time and more room for fortunes to vary. Since America is becoming both older and more highly educated, our measured income inequality will increase pretty much by demographic fiat. Economist Thomas Lemieux at the University of British Columbia estimates that these demographic effects explain three-quarters of the observed rise in income inequality for men, and even more for women.2
  • Attacking the problem from a different angle, other economists are challenging whether there is much growth in inequality at all below the super-rich. For instance, real incomes are measured using a common price index, yet poorer people are more likely to shop at discount outlets like Wal-Mart, which have seen big price drops over the past twenty years.3 Once we take this behavior into account, it is unclear whether the real income gaps between the poor and middle class have been widening much at all. Robert J. Gordon, an economist from Northwestern University who is hardly known as a right-wing apologist, wrote in a recent paper that “there was no increase of inequality after 1993 in the bottom 99 percent of the population”, and that whatever overall change there was “can be entirely explained by the behavior of income in the top 1 percent.”4
  • And so we come again to the gains of the top earners, clearly the big story told by the data. It’s worth noting that over this same period of time, inequality of work hours increased too. The top earners worked a lot more and most other Americans worked somewhat less. That’s another reason why high earners don’t occasion more resentment: Many people understand how hard they have to work to get there. It also seems that most of the income gains of the top earners were related to performance pay—bonuses, in other words—and not wildly out-of-whack yearly salaries.5
  • It is also the case that any society with a lot of “threshold earners” is likely to experience growing income inequality. A threshold earner is someone who seeks to earn a certain amount of money and no more. If wages go up, that person will respond by seeking less work or by working less hard or less often. That person simply wants to “get by” in terms of absolute earning power in order to experience other gains in the form of leisure—whether spending time with friends and family, walking in the woods and so on. Luck aside, that person’s income will never rise much above the threshold.
  • The funny thing is this: For years, many cultural critics in and of the United States have been telling us that Americans should behave more like threshold earners. We should be less harried, more interested in nurturing friendships, and more interested in the non-commercial sphere of life. That may well be good advice. Many studies suggest that above a certain level more money brings only marginal increments of happiness. What isn’t so widely advertised is that those same critics have basically been telling us, without realizing it, that we should be acting in such a manner as to increase measured income inequality. Not only is high inequality an inevitable concomitant of human diversity, but growing income inequality may be, too, if lots of us take the kind of advice that will make us happier.
  • Why is the top 1 percent doing so well?
  • Steven N. Kaplan and Joshua Rauh have recently provided a detailed estimation of particular American incomes.6 Their data do not comprise the entire U.S. population, but from partial financial records they find a very strong role for the financial sector in driving the trend toward income concentration at the top. For instance, for 2004, nonfinancial executives of publicly traded companies accounted for less than 6 percent of the top 0.01 percent income bracket. In that same year, the top 25 hedge fund managers combined appear to have earned more than all of the CEOs from the entire S&P 500. The number of Wall Street investors earning more than $100 million a year was nine times higher than the public company executives earning that amount. The authors also relate that they shared their estimates with a former U.S. Secretary of the Treasury, one who also has a Wall Street background. He thought their estimates of earnings in the financial sector were, if anything, understated.
  • Many of the other high earners are also connected to finance. After Wall Street, Kaplan and Rauh identify the legal sector as a contributor to the growing spread in earnings at the top. Yet many high-earning lawyers are doing financial deals, so a lot of the income generated through legal activity is rooted in finance. Other lawyers are defending corporations against lawsuits, filing lawsuits or helping corporations deal with complex regulations. The returns to these activities are an artifact of the growing complexity of the law and government growth rather than a tale of markets per se. Finance aside, there isn’t much of a story of market failure here, even if we don’t find the results aesthetically appealing.
  • When it comes to professional athletes and celebrities, there isn’t much of a mystery as to what has happened. Tiger Woods earns much more, even adjusting for inflation, than Arnold Palmer ever did. J.K. Rowling, the first billionaire author, earns much more than did Charles Dickens. These high incomes come, on balance, from the greater reach of modern communications and marketing. Kids all over the world read about Harry Potter. There is more purchasing power to spend on children’s books and, indeed, on culture and celebrities more generally. For high-earning celebrities, hardly anyone finds these earnings so morally objectionable as to suggest that they be politically actionable. Cultural critics can complain that good schoolteachers earn too little, and they may be right, but that does not make celebrities into political targets. They’re too popular. It’s also pretty clear that most of them work hard to earn their money, by persuading fans to buy or otherwise support their product. Most of these individuals do not come from elite or extremely privileged backgrounds, either. They worked their way to the top, and even if Rowling is not an author for the ages, her books tapped into the spirit of their time in a special way. We may or may not wish to tax the wealthy, including wealthy celebrities, at higher rates, but there is no need to “cure” the structural causes of higher celebrity incomes.
  • to be sure, the high incomes in finance should give us all pause.
  • The first factor driving high returns is sometimes called by practitioners “going short on volatility.” Sometimes it is called “negative skewness.” In plain English, this means that some investors opt for a strategy of betting against big, unexpected moves in market prices. Most of the time investors will do well by this strategy, since big, unexpected moves are outliers by definition. Traders will earn above-average returns in good times. In bad times they won’t suffer fully when catastrophic returns come in, as sooner or later is bound to happen, because the downside of these bets is partly socialized onto the Treasury, the Federal Reserve and, of course, the taxpayers and the unemployed.
  • if you bet against unlikely events, most of the time you will look smart and have the money to validate the appearance. Periodically, however, you will look very bad. Does that kind of pattern sound familiar? It happens in finance, too. Betting against a big decline in home prices is analogous to betting against the Wizards. Every now and then such a bet will blow up in your face, though in most years that trading activity will generate above-average profits and big bonuses for the traders and CEOs.
  • To this mix we can add the fact that many money managers are investing other people’s money. If you plan to stay with an investment bank for ten years or less, most of the people playing this investing strategy will make out very well most of the time. Everyone’s time horizon is a bit limited and you will bring in some nice years of extra returns and reap nice bonuses. And let’s say the whole thing does blow up in your face? What’s the worst that can happen? Your bosses fire you, but you will still have millions in the bank and that MBA from Harvard or Wharton. For the people actually investing the money, there’s barely any downside risk other than having to quit the party early. Furthermore, if everyone else made more or less the same mistake (very surprising major events, such as a busted housing market, affect virtually everybody), you’re hardly disgraced. You might even get rehired at another investment bank, or maybe a hedge fund, within months or even weeks.
  • Moreover, smart shareholders will acquiesce to or even encourage these gambles. They gain on the upside, while the downside, past the point of bankruptcy, is borne by the firm’s creditors. And will the bondholders object? Well, they might have a difficult time monitoring the internal trading operations of financial institutions. Of course, the firm’s trading book cannot be open to competitors, and that means it cannot be open to bondholders (or even most shareholders) either. So what, exactly, will they have in hand to object to?
  • Perhaps more important, government bailouts minimize the damage to creditors on the downside. Neither the Treasury nor the Fed allowed creditors to take any losses from the collapse of the major banks during the financial crisis. The U.S. government guaranteed these loans, either explicitly or implicitly. Guaranteeing the debt also encourages equity holders to take more risk. While current bailouts have not in general maintained equity values, and while share prices have often fallen to near zero following the bust of a major bank, the bailouts still give the bank a lifeline. Instead of the bank being destroyed, sometimes those equity prices do climb back out of the hole. This is true of the major surviving banks in the United States, and even AIG is paying back its bailout. For better or worse, we’re handing out free options on recovery, and that encourages banks to take more risk in the first place.
  • there is an unholy dynamic of short-term trading and investing, backed up by bailouts and risk reduction from the government and the Federal Reserve. This is not good. “Going short on volatility” is a dangerous strategy from a social point of view. For one thing, in so-called normal times, the finance sector attracts a big chunk of the smartest, most hard-working and most talented individuals. That represents a huge human capital opportunity cost to society and the economy at large. But more immediate and more important, it means that banks take far too many risks and go way out on a limb, often in correlated fashion. When their bets turn sour, as they did in 2007–09, everyone else pays the price.
  • And it’s not just the taxpayer cost of the bailout that stings. The financial disruption ends up throwing a lot of people out of work down the economic food chain, often for long periods. Furthermore, the Federal Reserve System has recapitalized major U.S. banks by paying interest on bank reserves and by keeping an unusually high interest rate spread, which allows banks to borrow short from Treasury at near-zero rates and invest in other higher-yielding assets and earn back lots of money rather quickly. In essence, we’re allowing banks to earn their way back by arbitraging interest rate spreads against the U.S. government. This is rarely called a bailout and it doesn’t count as a normal budget item, but it is a bailout nonetheless. This type of implicit bailout brings high social costs by slowing down economic recovery (the interest rate spreads require tight monetary policy) and by redistributing income from the Treasury to the major banks.
  • the “going short on volatility” strategy increases income inequality. In normal years the financial sector is flush with cash and high earnings. In implosion years a lot of the losses are borne by other sectors of society. In other words, financial crisis begets income inequality. Despite being conceptually distinct phenomena, the political economy of income inequality is, in part, the political economy of finance. Simon Johnson tabulates the numbers nicely: From 1973 to 1985, the financial sector never earned more than 16 percent of domestic corporate profits. In 1986, that figure reached 19 percent. In the 1990s, it oscillated between 21 percent and 30 percent, higher than it had ever been in the postwar period. This decade, it reached 41 percent. Pay rose just as dramatically. From 1948 to 1982, average compensation in the financial sector ranged between 99 percent and 108 percent of the average for all domestic private industries. From 1983, it shot upward, reaching 181 percent in 2007.7
  • There’s a second reason why the financial sector abets income inequality: the “moving first” issue. Let’s say that some news hits the market and that traders interpret this news at different speeds. One trader figures out what the news means in a second, while the other traders require five seconds. Still other traders require an entire day or maybe even a month to figure things out. The early traders earn the extra money. They buy the proper assets early, at the lower prices, and reap most of the gains when the other, later traders pile on. Similarly, if you buy into a successful tech company in the early stages, you are “moving first” in a very effective manner, and you will capture most of the gains if that company hits it big.
  • The moving-first phenomenon sums to a “winner-take-all” market. Only some relatively small number of traders, sometimes just one trader, can be first. Those who are first will make far more than those who are fourth or fifth. This difference will persist, even if those who are fourth come pretty close to competing with those who are first. In this context, first is first and it doesn’t matter much whether those who come in fourth pile on a month, a minute or a fraction of a second later. Those who bought (or sold, as the case may be) first have captured and locked in most of the available gains. Since gains are concentrated among the early winners, and the closeness of the runner-ups doesn’t so much matter for income distribution, asset-market trading thus encourages the ongoing concentration of wealth. Many investors make lots of mistakes and lose their money, but each year brings a new bunch of projects that can turn the early investors and traders into very wealthy individuals.
  • These two features of the problem—“going short on volatility” and “getting there first”—are related. Let’s say that Goldman Sachs regularly secures a lot of the best and quickest trades, whether because of its quality analysis, inside connections or high-frequency trading apparatus (it has all three). It builds up a treasure chest of profits and continues to hire very sharp traders and to receive valuable information. Those profits allow it to make “short on volatility” bets faster than anyone else, because if it messes up, it still has a large enough buffer to pad losses. This increases the odds that Goldman will repeatedly pull in spectacular profits.
  • Still, every now and then Goldman will go bust, or would go bust if not for government bailouts. But the odds are in any given year that it won’t because of the advantages it and other big banks have. It’s as if the major banks have tapped a hole in the social till and they are drinking from it with a straw. In any given year, this practice may seem tolerable—didn’t the bank earn the money fair and square by a series of fairly normal looking trades? Yet over time this situation will corrode productivity, because what the banks do bears almost no resemblance to a process of getting capital into the hands of those who can make most efficient use of it. And it leads to periodic financial explosions. That, in short, is the real problem of income inequality we face today. It’s what causes the inequality at the very top of the earning pyramid that has dangerous implications for the economy as a whole.
  • What about controlling bank risk-taking directly with tight government oversight? That is not practical. There are more ways for banks to take risks than even knowledgeable regulators can possibly control; it just isn’t that easy to oversee a balance sheet with hundreds of billions of dollars on it, especially when short-term positions are wound down before quarterly inspections. It’s also not clear how well regulators can identify risky assets. Some of the worst excesses of the financial crisis were grounded in mortgage-backed assets—a very traditional function of banks—not exotic derivatives trading strategies. Virtually any asset position can be used to bet long odds, one way or another. It is naive to think that underpaid, undertrained regulators can keep up with financial traders, especially when the latter stand to earn billions by circumventing the intent of regulations while remaining within the letter of the law.
  • For the time being, we need to accept the possibility that the financial sector has learned how to game the American (and UK-based) system of state capitalism. It’s no longer obvious that the system is stable at a macro level, and extreme income inequality at the top has been one result of that imbalance. Income inequality is a symptom, however, rather than a cause of the real problem. The root cause of income inequality, viewed in the most general terms, is extreme human ingenuity, albeit of a perverse kind. That is why it is so hard to control.
  • Another root cause of growing inequality is that the modern world, by so limiting our downside risk, makes extreme risk-taking all too comfortable and easy. More risk-taking will mean more inequality, sooner or later, because winners always emerge from risk-taking. Yet bankers who take bad risks (provided those risks are legal) simply do not end up with bad outcomes in any absolute sense. They still have millions in the bank, lots of human capital and plenty of social status. We’re not going to bring back torture, trial by ordeal or debtors’ prisons, nor should we. Yet the threat of impoverishment and disgrace no longer looms the way it once did, so we no longer can constrain excess financial risk-taking. It’s too soft and cushy a world.
  • Why don’t we simply eliminate the safety net for clueless or unlucky risk-takers so that losses equal gains overall? That’s a good idea in principle, but it is hard to put into practice. Once a financial crisis arrives, politicians will seek to limit the damage, and that means they will bail out major financial institutions. Had we not passed TARP and related policies, the United States probably would have faced unemployment rates of 25 percent of higher, as in the Great Depression. The political consequences would not have been pretty. Bank bailouts may sound quite interventionist, and indeed they are, but in relative terms they probably were the most libertarian policy we had on tap. It meant big one-time expenses, but, for the most part, it kept government out of the real economy (the General Motors bailout aside).
  • We probably don’t have any solution to the hazards created by our financial sector, not because plutocrats are preventing our political system from adopting appropriate remedies, but because we don’t know what those remedies are. Yet neither is another crisis immediately upon us. The underlying dynamic favors excess risk-taking, but banks at the current moment fear the scrutiny of regulators and the public and so are playing it fairly safe. They are sitting on money rather than lending it out. The biggest risk today is how few parties will take risks, and, in part, the caution of banks is driving our current protracted economic slowdown. According to this view, the long run will bring another financial crisis once moods pick up and external scrutiny weakens, but that day of reckoning is still some ways off.
  • Is the overall picture a shame? Yes. Is it distorting resource distribution and productivity in the meantime? Yes. Will it again bring our economy to its knees? Probably. Maybe that’s simply the price of modern society. Income inequality will likely continue to rise and we will search in vain for the appropriate political remedies for our underlying problems.
Weiye Loh

Roger Pielke Jr.'s Blog: Innovation in Drug Development: An Inverse Moore's Law? - 0 views

rogerpielkejr.blogspot.com/...-drug-development-inverse.html

Drugs Science Innovation Policy

shared by Weiye Loh on 10 Feb 11 - No Cached
  • Today's FT has this interesting graph and an accompanying story, showing a sort of inverse Moore's Law of drug development.  Over almost 60 years the number of new drugs developed per unit of investment has declined in a fairly constant manner, and some drug companies are now slashing their R&D budgets.
  • why this trend has occurred.  The FT points to a combination of low-hanging fruit that has been plucked and increasing costs of drug development. To some observers, that reflects the end of the mid to late 20th century golden era for drug discovery, when first-generation medicines such as antibiotics and beta-blockers to treat high blood pressure transformed healthcare. At the same time, regulatory demands to prove safety and efficacy have grown firmer. The result is larger and more costly clinical trials, and high failure rates for experimental drugs.
  • Others point to flawed innovation policies in industry and governments: “The markets treat drug companies as though research and development spending destroys value,” says Jack Scannell, an analyst at Bernstein Research. “People have stopped distinguishing the good from the bad. All those which performed well returned cash to shareholders. Unless the industry can articulate what the problem is, I don’t expect that to change.”
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  • Mr [Andrew] Baum [of Morgan Stanley] argues that the solution for drug companies is to share the risks of research with others. That means reducing in-house investment in research, and instead partnering and licensing experimental medicines from smaller companies after some of the early failures have been eliminated.
  • Chas Bountra of Oxford university calls for a more radical partnership combining industry and academic research. “What we are trying to do is just too difficult,” he says. “No one organisation can do it, so we have to pool resources and expertise.” He suggests removing intellectual property rights until a drug is in mid-stage testing in humans, which would make academics more willing to co-operate because they could publish their results freely. The sharing of data would enable companies to avoid duplicating work.
  • The challenge is for academia and biotech companies to fill the research gap. Mr Ratcliffe argues that after a lull in 2009 and 2010, private capital is returning to the sector – as demonstrated by a particular buzz at JPMorgan’s new year biotech conference in California.
  • Patrick Vallance, senior vice-president for discovery at GSK, is cautious about deferring patents until so late, arguing that drug companies need to be able to protect their intellectual property in order to fund expensive late-stage development. But he too is experimenting with ways to co-operate more closely with academics over longer periods. He is also championing the “externalisation” of the company’s pipeline, with biotech and university partners accounting for half the total. GSK has earmarked £50m to support fledgling British companies, many “wrapped around” the group’s sites. One such example is Convergence, a spin-out from a GSK lab researching pain relief.
  • Big pharmaceutical companies are scrambling to find ways to overcome the loss of tens of billions of dollars in revenue as patents on top-selling drugs run out. Many sound similar notes about encouraging entrepreneurialism in their ranks, making smart deals and capitalizing on emerging-market growth, But their actual plans are often quite different—and each carries significant risks. Novartis AG, for instance, is so convinced that diversification is the best course that the company has a considerable business selling low-priced generics. Meantime, Bristol-Myers Squibb Co. has decided to concentrate on innovative medicines, shedding so many nonpharmaceutical units that it' has become midsize. GlaxoSmithKline PLC is still investing in research, but like Pfizer it has narrowed the range of disease areas in which it's seeking new treatments. Underlying the divergence is a deep-seated philosophical dispute over the merits of the heavy investment that companies must make to discover new drugs. By most estimates, bringing a new molecule to market costs drug makers more than $1 billion. Industry officials have been engaged in a vigorous debate over whether the investment is worth it, or whether they should leave it to others whose work they can acquire or license after a demonstration of strong potential.
  • To what extent can approached to innovation influence the trend line in the graph above?  I don't think that anyone really knows the answer.  The different approaches being taken by Merck and Pfizer, for instance, represent a real world policy experiment: The contrast between Merck and Pfizer reflects the very different personal approaches of their CEOs. An accountant by training, Mr. Read has held various business positions during a three-decade career at Pfizer. The 57-year-old cited torcetrapib, a cholesterol medicine that the company spent more than $800 million developing but then pulled due to safety concerns, as an example of the kind of wasteful spending Pfizer would avoid. "We're going to have metrics," Mr. Read said. He wants Pfizer to stop "always investing on hope rather than strong signals and the quality of the science, the quality of the medicine." Mr. Frazier, 56, a Harvard-educated lawyer who joined Merck in 1994 from private practice, said the company was sticking by its own troubled heart drug, vorapaxar. Mr. Frazier said he wanted to see all of the data from the trials before rushing to judgment. "We believe in the innovation approach," he said.
Weiye Loh

Search Optimization and Its Dirty Little Secrets - NYTimes.com - 0 views

www.nytimes.com/...13search.html

Search Engine Optimization SEO

shared by Weiye Loh on 13 Feb 11 - No Cached
  • Mr. Stevens turned out to be a boyish-looking 31-year-old native of Singapore. (Stevens is the name he uses for work; he says he has a Chinese last name, which he did not share.) He speaks with a slight accent and in an animated hush, like a man worried about eavesdroppers. He describes his works with the delighted, mischievous grin of a sophomore who just hid a stink bomb.
  • “The key is to roll the campaign out slowly,” he said as he nibbled at seared duck foie gras. “A lot of companies are in a rush. They want as many links as we can get them as fast as possible. But Google will spot that. It will flag a Web site that goes from zero links to a few hundred in a week.”
  • The hardest part about the link-selling business, he explained, is signing up deep-pocketed mainstream clients. Lots of them, it seems, are afraid they’ll get caught. Another difficulty is finding quality sites to post links. Whoever set up the JCPenney.com campaign, he said, relied on some really low-rent, spammy sites — the kind with low PageRanks, as Google calls its patented measure of a site’s quality. The higher the PageRank, the more “Google juice” a site offers others to which it is linked.
  • ...5 more annotations...
  • Mr. Stevens said that Web site owners, or publishers, as he calls them, get a small fee for each link, and the transaction is handled entirely over the Web. Publishers can reject certain keywords and links — Mr. Stevens said some balked at a lingerie link — but for the most part the system is on a kind of autopilot. A client pays Mr. Stevens and his colleagues for links, which are then farmed out to Web sites. Payment to publishers is handled via PayPal.
  • You might expect Mr. Stevens to have a certain amount of contempt for Google, given that he spends his professional life finding ways to subvert it. But through the evening he mentioned a few times that he’s in awe of the company, and the quality of its search engine.
  • “I think we need to make a distinction between two different kinds of searches — informational and commercial,” he said. “If you search ‘cancer,’ that’s an informational search and on those, Google is amazing. But in commercial searches, Google’s results are really polluted. My own personal experience says that the guy with the biggest S.E.O. budget always ranks the highest.”
  • To Mr. Stevens, S.E.O. is a game, and if you’re not paying black hats, you are losing to rivals with fewer compunctions.
  • WHY did Google fail to catch a campaign that had been under way for months? One, no less, that benefited a company that Google had already taken action against three times? And one that relied on a collection of Web sites that were not exactly hiding their spamminess? Mr. Cutts emphasized that there are 200 million domain names and a mere 24,000 employees at Google.
Weiye Loh

Hands Off Higher Ed in the Statehouse? Hardly. - Government - The Chronicle of Higher E... - 0 views

chronicle.com/...126511

Academia Education Politics Religion Capitalism

shared by Weiye Loh on 28 Feb 11 - No Cached
  • Republicans dominated state elections in November, promising to shrink the size and cost of government to help erase tens of billions of dollars in budget shortfalls. But the proposals they've floated since taking office look more like political point-scoring than serious cost-cutting.
  • much of the recent legislation aims to curb what some lawmakers apparently imagine as commonplace excesses of faculty
Weiye Loh

Bankers, Buyouts & Billionaires: Why Big Herba's Research Deficit Isn't About... - 0 views

www.skepticnorth.com/...-isn%e2%80%99t-about-the-money

Funding Research Medicine Nature Patent Capitalism

shared by Weiye Loh on 01 Mar 11 - No Cached
  • A skeptic challenges a natural health product for the lack of an evidentiary base.  A proponent of that product responds that the skeptic has made a logical error – an absence of evidence is not evidence of absence, and in such a scenario it’s not unreasonable to rely on patient reporting and traditional uses as a guide. The skeptic chimes back with a dissertation on the limits of anecdotal evidence and arguments from antiquity — especially when the corresponding pharma products have a data trail supporting their safety and efficacy. The proponent responds that it’s unfair to hold natural health products to the same evidentiary standard, because only pharma has the money to fund proper research, and they only do so for products they can patent. You can’t patent nature, so no research into natural health products gets done.
  • look here, here, and here for recent examples
  • natural health industry isn’t rich enough to sustain proper research.  Is that true? Natural health, by the numbers On the surface, it certainly wouldn’t appear so. While the industry can be difficult to get a bead on – due both to differing definitions of what it includes (organic foods? natural toothpaste?), and the fact that many of the key players are private companies that don’t report revenues – by any measure it’s sizable. A survey by the University of Guelph  references KPMG estimates that the Natural Health Products sector in Canada grew from $1.24B in 2000 to $1.82B in 2006 – a growth rate that would bring the market to about $2.5B today.   Figures from the Nutrition Business Journal quoted in the same survey seem to agree, suggesting Canada is 3% of a global “supplements” (herbal, homeopathy, vitamins) market that was $68B globally in 2006 and growing at 5% a year – bringing it to perhaps $85B today. Figures from various sources quoted in a recent Health Canada report support these estimates.
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  • While certainly not as big as the ($820B) pharmaceutical industry, $85B is still an awful lot of money, and it’s hard to imagine it not being enough to carve out a research budget from. Yet research isn’t done by entire industries, but by one tier of the value chain — the companies that manufacture and distribute the products.  If they’re not big enough to fund the type of research skeptics are looking for, it won’t be done, so let’s consider some of the bigger players before we make that call.
  • French giant Boiron (EPA:BOI) is by far the largest distributor of natural health products in Canada – they’re responsible for nearly 4000 (15%) of the 26,000 products approved by Health Canada’s Natural Health Products Directorate. They’re also one of largest natural health products companies globally, with 2010 revenues of €520M ($700M CAD) – a size achieved not just through the success of killer products like Oscillococcinum, but also through acquisitions. In recent years, the company has acquired both its main French rival Dolisos (giving them 90% of the French homeopathy market) and the largest homeopathy company in Belgium, Unda. So this is a big company that’s prepared to spend money to get even bigger. What about spending some of that money on research?  Well ostensibly it’s a priority: “Since 2005, we have devoted a growing level of resources to develop research,” they proclaim in the opening pages of their latest annual report, citing 70 in-progress research projects. Yet the numbers tell a different story – €4.2M in R&D expenditures in 2009, just 0.8% of revenues.
  • To put that in perspective, consider that in the same year, GlaxoSmithKline spent 14% of its revenues on R&D, Pfizer spent 15%, and Merck spent a whopping 21%.
  • But if Boiron’s not spending like pharma on research, there’s one line item where they do go toe to toe: Marketing. The company spent €114M – a full 21% of revenues on marketing in 2009. By contrast, GSK, Pfizer and Merck reported 33%, 29%, and 30% of revenues respectively on their “Selling, General, and Administrative” (SG&A) line – which includes not just sales & marketing expenses, but also executive salaries, support staff, legal, rent, utilities, and other overhead costs. Once those are subtracted out, it’s likely that Boiron spends at least as much of its revenues on marketing as Big Pharma.
Weiye Loh

Roger Pielke Jr.'s Blog: Double It, Double It Again, and Again, and Once More - 0 views

rogerpielkejr.blogspot.com/...le-it-again-and-again-and.html

Uncertainty Cost Innovation Space Budget

shared by Weiye Loh on 08 Mar 11 - No Cached
  • [T]he original cost [estimate] was 1.5 billion with completion targeted in 1965. The "actual" historical events went something like this. The NASA cost estimating gurus in 1961 projected an amount close to $7 Billion to do the entire program.33 34 This figure was apparently padded to $10-$12 Billion by management prior to giving that estimate to James Webb, the NASA Administrator. Mr. Webb (within hours of receiving the $10-$12 Billion figure) placed an "administrator's discount" on NASA’s ability to predict costs with due precision and by the stroke of his own pen, changed the estimate to $20 billion and submitted it to Vice President Linden B. Johnson. In the words of Robert Seamans Jr., (the Associate Administrator at the time) "We were aghast!"35 This cavalier beginning describes how Apollo's original fiscal requirements arrived at the steps of the Capitol and was subsequently blessed by Congress. Ironically, the $20 billion amount submitted by Mr. Webb to the Vice president appeared to be a completely arbitrary and highly irregular move. In anyone's book it was a radical cost estimating maneuver to be sure. But in the end, Mr. Webb's innate business sense and the courage to follow what that sense told him validated his action. It turned out to be a leadership demonstration of profound foresight. In the end the "real cost" of Apollo ultimately surpassed Mr. Webb's $20 billion estimate with a price tag of $25.4 billion as was reported to congress in 1973. The final program cost varies depending on what we include or exclude in the calculations,36 37 38 but in all instances exceeds $20 billion.
Weiye Loh

Open science: a future shaped by shared experience | Education | The Observer - 0 views

www.guardian.co.uk/...ience-shared-research-internet

Open Source Science

shared by Weiye Loh on 25 May 11 - No Cached
  • one day he took one of these – finding a mathematical proof about the properties of multidimensional objects – and put his thoughts on his blog. How would other people go about solving this conundrum? Would somebody else have any useful insights? Would mathematicians, notoriously competitive, be prepared to collaborate? "It was an experiment," he admits. "I thought it would be interesting to try."He called it the Polymath Project and it rapidly took on a life of its own. Within days, readers, including high-ranking academics, had chipped in vital pieces of information or new ideas. In just a few weeks, the number of contributors had reached more than 40 and a result was on the horizon. Since then, the joint effort has led to several papers published in journals under the collective pseudonym DHJ Polymath. It was an astonishing and unexpected result.
  • "If you set out to solve a problem, there's no guarantee you will succeed," says Gowers. "But different people have different aptitudes and they know different tricks… it turned out their combined efforts can be much quicker."
  • There are many interpretations of what open science means, with different motivations across different disciplines. Some are driven by the backlash against corporate-funded science, with its profit-driven research agenda. Others are internet radicals who take the "information wants to be free" slogan literally. Others want to make important discoveries more likely to happen. But for all their differences, the ambition remains roughly the same: to try and revolutionise the way research is performed by unlocking it and making it more public.
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  • Jackson is a young bioscientist who, like many others, has discovered that the technologies used in genetics and molecular biology, once the preserve of only the most well-funded labs, are now cheap enough to allow experimental work to take place in their garages. For many, this means that they can conduct genetic experiments in a new way, adopting the so-called "hacker ethic" – the desire to tinker, deconstruct, rebuild.
  • The rise of this group is entertainingly documented in a new book by science writer Marcus Wohlsen, Biopunk (Current £18.99), which describes the parallels between today's generation of biological innovators and the rise of computer software pioneers of the 1980s and 1990s. Indeed, Bill Gates has said that if he were a teenager today, he would be working on biotechnology, not computer software.
  • open scientists suggest that it doesn't have to be that way. Their arguments are propelled by a number of different factors that are making transparency more viable than ever.The first and most powerful change has been the use of the web to connect people and collect information. The internet, now an indelible part of our lives, allows like-minded individuals to seek one another out and share vast amounts of raw data. Researchers can lay claim to an idea not by publishing first in a journal (a process that can take many months) but by sharing their work online in an instant.And while the rapidly decreasing cost of previously expensive technical procedures has opened up new directions for research, there is also increasing pressure for researchers to cut costs and deliver results. The economic crisis left many budgets in tatters and governments around the world are cutting back on investment in science as they try to balance the books. Open science can, sometimes, make the process faster and cheaper, showing what one advocate, Cameron Neylon, calls "an obligation and responsibility to the public purse".
  • "The litmus test of openness is whether you can have access to the data," says Dr Rufus Pollock, a co-founder of the Open Knowledge Foundation, a group that promotes broader access to information and data. "If you have access to the data, then anyone can get it, use it, reuse it and redistribute it… we've always built on the work of others, stood on the shoulders of giants and learned from those who have gone before."
  • moves are afoot to disrupt the closed world of academic journals and make high-level teaching materials available to the public. The Public Library of Science, based in San Francisco, is working to make journals more freely accessible
  • it's more than just politics at stake – it's also a fundamental right to share knowledge, rather than hide it. The best example of open science in action, he suggests, is the Human Genome Project, which successfully mapped our DNA and then made the data public. In doing so, it outflanked J Craig Venter's proprietary attempt to patent the human genome, opening up the very essence of human life for science, rather than handing our biological information over to corporate interests.
  • the rise of open science does not please everyone. Critics have argued that while it benefits those at either end of the scientific chain – the well-established at the top of the academic tree or the outsiders who have nothing to lose – it hurts those in the middle. Most professional scientists rely on the current system for funding and reputation. Others suggest it is throwing out some of the most important elements of science and making deep, long-term research more difficult.
  • Open science proponents say that they do not want to make the current system a thing of the past, but that it shouldn't be seen as immutable either. In fact, they say, the way most people conceive of science – as a highly specialised academic discipline conducted by white-coated professionals in universities or commercial laboratories – is a very modern construction.It is only over the last century that scientific disciplines became industrialised and compartmentalised.
  • open scientists say they don't want to throw scientists to the wolves: they just want to help answer questions that, in many cases, are seen as insurmountable.
  • "Some people, very straightforwardly, said that they didn't like the idea because it undermined the concept of the romantic, lone genius." Even the most dedicated open scientists understand that appeal. "I do plan to keep going at them," he says of collaborative projects. "But I haven't given up on solitary thinking about problems entirely."
Pergolas Adelaide

Pergolas for Quality Home Improvement - 1 views

I wanted to enhance my home from the outside. It seemed that my garden needed something additional to make it perfectly attractive. I was thinking of putting up a pergola in my front yard, yet, I d...

Pergolas Adelaide

started by Pergolas Adelaide on 04 Oct 11 no follow-up yet
Weiye Loh

Did file-sharing cause recording industry collapse? Economists say no - 0 views

arstechnica.com/...-sharing-the-global-future.ars

Piracy File-Sharing Music

shared by Weiye Loh on 10 Apr 11 - No Cached
  • a 2007 Journal of Political Economy study found that most downloaders would not buy that content, even if they couldn't share it. "Downloads have an effect on sales that is statistically indistinguishable from zero," the authors flatly concluded then. "Our estimates are inconsistent with claims that file sharing is the primary reason for the decline in music sales during our study period."
  • But a later 2010 meta-study by the same authors concluded that piracy did, in fact, account for a bit of the decline in music sales—around 20 percent. The other 80 percent could be chalked up to the sale of digital singles rather than whole albums and the rise of other media options like video games.
  • "Downward pressure on leisure expenditure is likely to continue to increase due to rising costs of living and unemployment and drastic rises in the costs of (public) services," says the report. Having less money for entertainment has played a huge role in the decline of items like CDs. A 2004 US Consumer Expenditure Survey showed that even spending on CDs by people who had no computer (and were therefore unlikely to download and use BitTorrent) dropped by over 40 percent from 1999 through 2004. "Household budgets for entertainment are relatively inelastic as competition for spending on culture and entertainment increases and there are shifts in household expenditure as well," the LSE study notes.
  • ...3 more annotations...
  • Content industry analyses of the file sharing phenomenon tend to downplay key sources of income for musicians, the LSE report charges, most notably revenue from live concert performances.
  • Legal file sharing also grew by nine percent globally in 2009, along with an eight percent increase in performance rights revenue.
  • So what is emerging is an increasingly "ephemeral" global music culture based not upon the purchasing of discrete physical packages of music, but on the discovery and subsequent promotion of musicians through file sharing. The big winner in this model is not the digital music file seller, but the touring band, whose music is easily discoverable on the 'Net. As with so much of the rest of the emerging world economy, the shift is away from buying things and towards purchasing services—in this case tickets to concerts and related activities.
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