Skip to main content

Home/ New Media Ethics 2009 course/ Group items tagged Tax

Rss Feed Group items tagged

Weiye Loh

The messy business of cleaning up carbon policy (and how to sell it to the electorate) ... - 0 views

  • 1. Putting a price on carbon is not only about the climate.Yes, humans are affecting the climate and reducing carbon dioxide emissions is a key commitment of this government, and indeed the stated views of the opposition. But there are other reasons to price carbon, primarily to put Australia at the forefront of a global energy technology revolution that is already underway.In future years and decades the world is going to need vastly more energy that is secure, reliable, clean and affordable. Achieving these outcomes will require an energy technology revolution. The purpose of pricing carbon is to raise the revenues needed to invest in this future, just as we invest in health, agriculture and defence.
  • 2. A price on carbon raises revenues to invest in stimulating that energy technology revolution.Australia emits almost 400 million tonnes of carbon dioxide into the atmosphere every year. In round numbers, every dollar carbon tax per tonne on those emissions would raise about A$100 million. A significant portion of the proceeds from a carbon tax should be used to invest in energy technology innovation, using today’s energy economy to build a bridge to tomorrow’s economy. This is exactly the strategy that India has adopted with a small levy on coal and Germany has adopted with a tax on nuclear fuel rods, with proceeds in both instances invested into energy innovation.
  • 3. The purpose of a carbon tax is not to make energy, food, petrol or consumer goods appreciably more expensive.Just as scientists are in broad agreement that humans are affecting the global climate, economists and other experts are in broad agreement that we cannot revolutionise our energy economy through pricing mechanisms alone. Thus, we propose starting with a low carbon tax - one that has broad political support - and then committing to increasing it in a predictable manner over time.The Coalition has proposed a “direct action plan” on carbon policy that would cost A$30 billion over the next 8 years, which is the equivalent of about a $2.50 per tonne carbon tax. The question to be put to the Coalition is not whether we should be investing in a carbon policy, as we agree on that point, but how much and how it should be paid for. The Coalition’s plans leave unanswered how they would pay for their plan.A carbon tax offers a responsible and effective manner to raise funds without harming the economy or jobs. In fact, to the extent that investments in energy innovation bear fruit, new markets will be opened and new jobs will be created. The Coalition’s plan is not focused on energy technology innovation.The question for the Coalition should thus be, at what level would you set a carbon tax (or what other taxes would you raise?), and how would you invest the proceeds in a manner that accelerates energy technology innovation?
  • ...1 more annotation...
  • 4. Even a low carbon tax will make some goods cost a bit more, so it is important to help those who are most affected.Our carbon tax proposal is revenue neutral in the sense that we will lower other taxes in direct proportion to the impact, however modest, of a low carbon tax. We will do this with particular attention to those who may be most directly affected by a price on carbon.In addition, some portion of the revenue raised by a carbon tax will be returned to the public. But not all. It is important to invest in tomorrow’s energy technologies today and a carbon tax provides the mechanism for doing so.
Weiye Loh

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

  • 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.
  • ...35 more annotations...
  • 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: Julia Gillard Goes All In - 0 views

  • It is here where I think that Gillard has made a bad bet. Carbon pricing is supposed to create jobs by making fossil fuels appreciably more expensive, thereby creating a market signal that disfavors carbon-intensive industry and stimulates less carbon-intensive economic activity. The economic parts of theory seem sound enough.
  • However, it is the political realities that the theory does not account for.  Australia's economy is very carbon intensive (PDF). Thus, if carbon pricing were to work exactly as the Prime Minister describes, it will necessary lead to a great deal of economic dislocation and change -- Consider that to meet the 5% emissions reduction target (from 2000 levels), without relying on offsets or other tricks, implies that Australia's economy would need to become as carbon efficient as Japan's by the end of this decade. How such a profoundly disruptive transitional period would be managed is the one issue that advocates of a high carbon price have never really dealt with -- the market's invisible hand will take care of it I guess.
  • How does one become "reskilled"?  Without an explanation, many people will translate "reskilled" to mean "unemployed".  The oft-stated idea that the proceeds of a carbon tax will be used to compensate those who fact higher costs does not address the issue of dislocation in the economy. There is a element of "magical thinking" in the idea that transforming a national economy starts with a simple decision: . . . clean energy will open up opportunities we are only just beginning to imagine. Those opportunities begin with that simple but momentous decision: Putting a price on carbon. Friends, a price on carbon is the cheapest way to drive investment and jobs.
  • ...2 more annotations...
  • There are only two realistic outcomes here. One is that the carbon tax proposal is scrapped. With this speech it seems highly unlikely that Gillard will be the one doing any scrapping.  So it would probably be via an election or a change in leadership, such as if Kevin Rudd becomes captain of the Brisbane Broncos. The second possible outcome is that the carbon pricing is watered down so far that its enactment allows Labor to claim success while limiting any actual impact from the tax on the economy.  Of course, that would undercut its stated purpose -- to transform the economy.
  • A better strategy is the one proposed in The Climate Fix -- start with a very low carbon tax, one that is politically acceptable, and use the proceeds to invest in innovation. The carbon price would rise over time as the fruits of innovation make it politically acceptable to raise that price.  I expect that Australia will soon provide (yet aonpther) lesson in how not to try to put a price on carbon.
  •  
    In the face of opinion polls showing a lack of support for her proposed carbon tax, Julia Gillard today has delivered a speech that indicates that she is willing to wager her future on this issue (The speech is here in PDF). 
Weiye Loh

The Devil's Kitchen: Scientists hoist by their own petard - 0 views

  • the vast majority of the world's scientists back urgent action on carbon emissions: energy must be made much more expensive. Oh, wait, we didn't mean for us!World-class research into future sources of green energy is under threat in Britain from an environmental tax designed to boost energy efficiency and drive down carbon emissions, scientists claim.Some facilities must find hundreds of thousands of pounds to settle green tax bills, putting jobs and research at risk.
  • Among the worst hit is the Culham Centre for Fusion Energy in Oxfordshire, a facility for research into almost limitless carbon-free energy. The lab faces an estimated £400,000 payment next year, raising the spectre of job losses and operational cuts. "Considering our research is aimed at producing zero-carbon energy, it seems ironic and perverse to clobber us with an extra bill," a senior scientist at the lab said. "We have to use electricity to run the machine and there is no way of getting around that."
Weiye Loh

Too Hot for TED: Income Inequality - Jim Tankersley - NationalJournal.com - 0 views

  • TED organizers invited a multimillionaire Seattle venture capitalist named Nick Hanauer – the first nonfamily investor in Amazon.com – to give a speech on March 1 at their TED University conference. Inequality was the topic – specifically, Hanauer’s contention that the middle class, and not wealthy innovators like himself, are America’s true “job creators.”
  • You can’t find that speech online. TED officials told Hanauer initially they were eager to distribute it. “I want to put this talk out into the world!” one of them wrote him in an e-mail in late April. But early this month they changed course, telling Hanauer that his remarks were too “political” and too controversial for posting.
  • "Many of the talks given at the conference or at TED-U are not released,” Anderson wrote. “We only release one a day on TED.com and there's a backlog of amazing talks from all over the world. We do not comment publicly on reasons to release or not release [a] talk. It's unfair on the speakers concerned. But we have a general policy to avoid talks that are overtly partisan, and to avoid talks that have received mediocre audience ratings."
  •  
    There's one idea, though, that TED's organizers recently decided was too controversial to spread: the notion that widening income inequality is a bad thing for America, and that as a result, the rich should pay more in taxes.
Weiye Loh

Roger Pielke Jr.'s Blog: Wanted: Less Spin, More Informed Debate - 0 views

  • , the rejection of proposals that suggest starting with a low carbon price is thus a pretty good guarantee against any carbon pricing at all.  It is rather remarkable to see advocates for climate action arguing against a policy that recommends implementing a carbon price, simply because it does not start high enough for their tastes.  For some, idealism trumps pragmatism, even if it means no action at all.
  • Ward writes: . . . climate change is the result of a number of market failures, the largest of which arises from the fact that the prices of products and services involving emissions of greenhouse gases do not reflect the true costs of the damage caused through impacts on the climate. . . All serious economic analyses of how to tackle climate change identify the need to correct this market failure through a carbon price, which can be implemented, for instance, through cap and trade schemes or carbon taxes. . . A carbon price can be usefully supplemented by improvements in innovation policies, but it needs to be at the core of action on climate change, as this paper by Carolyn Fischer and Richard Newell points out.
  • First, the criticism is off target. A low and rising carbon price is in fact a central element to the policy recommendations advanced by the Hartwell Group in Climate Pragmatism, the Hartwell Paper, and as well, in my book The Climate Fix.  In Climate Pragmatism, we approvingly cite Japan's low-but-rising fossil fuels tax and discuss a range of possible fees or taxes on fossil fuels, implemented, not to penalize energy use or price fossil fuels out of the market, but rather to ensure that as we benefit from today’s energy resources we are setting aside the funds necessary to accelerate energy innovation and secure the nation’s energy future.
  • ...3 more annotations...
  • Here is another debating lesson -- before engaging in public not only should one read the materials that they are critiquing, they should also read the materials that they cite in support of their own arguments. This is not the first time that Bob Ward has put out misleading information related to my work.  Ever since we debated in public at the Royal Institution, Bob has adopted guerrilla tactics, lobbing nonsense into the public arena and then hiding when challenged to support or defend his views.  As readers here know, I am all for open and respectful debate over these important topics.  Why is that instead, all we get is poorly informed misdirection and spin? Despite the attempts at spin, I'd welcome Bob's informed engagement on this topic. Perhaps he might start by explaining which of the 10 statements that I put up on the mathematics and logic underlying climate pragmatism is incorrect.
  • In comments to another blog, I've identified Bob as a PR flack. I see no reason to change that assessment. In fact, his actions only confirm it. Where does he fit into a scientific debate?
  • Thanks for the comment, but I'll take the other side ;-)First, this is a policy debate that involves various scientific, economic, political analyses coupled with various values commitments including monied interests -- and as such, PR guys are as welcome as anyone else.That said, the problem here is not that Ward is a PR guy, but that he is trying to make his case via spin and misrepresentation. That gets noticed pretty quickly by anyone paying attention and is easily shot down.
Weiye Loh

The Price of Fuel | How Countries Compare - 0 views

  • In 2008, crude oil topped $111 a barrel for the first time. During that time, the U.S. average retail price for regular unleaded gasoline reached $3.28 a gallon. Despite the increase, people in the United States still pay significantly less for gasoline than people in many other countries.
  • This chart depicts the elements of production, transportation, refining and distribution required to transform crude oil into finished petroleum products like gasoline.
  • In the United States, the average tax on gasoline is 47 cents per gallon. The tax is usually a combination of federal, state and local fees, underground storage tank fees and other environmental fees. Many European countries attach much higher fees as an incentive to reduce greenhouse gas emissions and raise revenue, increasing the overall price of gasoline.
Weiye Loh

The Greening of the American Brain - TIME - 0 views

  • The past few years have seen a marked decline in the percentage of Americans who believe what scientists say about climate, with belief among conservatives falling especially fast. It's true that the science community has hit some bumps — the IPCC was revealed to have made a few dumb errors in its recent assessment, and the "Climategate" hacked emails showed scientists behaving badly. But nothing changed the essential truth that more man-made CO2 means more warming; in fact, the basic scientific case has only gotten stronger. Yet still, much of the American public remains unconvinced — and importantly, last November that public returned control of the House of Representatives to a Republican party that is absolutely hostile to the basic truths of climate science.
  • facts and authority alone may not shift people's opinions on climate science or many other topics. That was the conclusion I took from the Climate, Mind and Behavior conference, a meeting of environmentalists, neuroscientists, psychologists and sociologists that I attended last week at the Garrison Institute in New York's Hudson Valley. We like to think of ourselves as rational creatures who select from the choices presented to us for maximum individual utility — indeed, that's the essential principle behind most modern economics. But when you do assume rationality, the politics of climate change get confusing. Why would so many supposedly rational human beings choose to ignore overwhelming scientific authority?
  • Maybe because we're not actually so rational after all, as research is increasingly showing. Emotions and values — not always fully conscious — play an enormous role in how we process information and make choices. We are beset by cognitive biases that throw what would be sound decision-making off-balance. Take loss aversion: psychologists have found that human beings tend to be more concerned about avoiding losses than achieving gains, holding onto what they have even when this is not in their best interests. That has a simple parallel to climate politics: environmentalists argue that the shift to a low-carbon economy will create abundant new green jobs, but for many people, that prospect of future gain — even if it comes with a safer planet — may not be worth the risk of losing the jobs and economy they have.
  • ...4 more annotations...
  • What's the answer for environmentalists? Change the message and frame the issue in a way that doesn't trigger unconscious opposition among so many Americans. That can be a simple as using the right labels: a recent study by researchers at the University of Michigan found that Republicans are less skeptical of "climate change" than "global warming," possibly because climate change sounds less specific. Possibly too because so broad a term includes the severe snowfalls of the past winter that can be a paradoxical result of a generally warmer world. Greens should also pin their message on subjects that are less controversial, like public health or national security. Instead of issuing dire warnings about an apocalyptic future — which seems to make many Americans stop listening — better to talk about the present generation's responsibility to the future, to bequeath their children and grandchildren a safer and healthy planet.
  • Group identification also plays a major role in how we make decisions — and that's another way facts can get filtered. Declining belief in climate science has been, for the most part in America, a conservative phenomenon. On the surface, that's curious: you could expect Republicans to be skeptical of economic solutions to climate change like a carbon tax, since higher taxes tend to be a Democratic policy, but scientific information ought to be non-partisan. Politicians never debate the physics of space travel after all, even if they argue fiercely over the costs and priorities associated with it. That, however, is the power of group thinking; for most conservative Americans, the very idea of climate science has been poisoned by ideologues who seek to advance their economic arguments by denying scientific fact. No additional data — new findings about CO2 feedback loops or better modeling of ice sheet loss — is likely to change their mind.
  • The bright side of all this irrationality is that it means human beings can act in ways that sometimes go against their immediate utility, sacrificing their own interests for the benefit of the group.
  • Our brains develop socially, not just selfishly, which means sustainable behavior — and salvation for the planet — may not be as difficult as it sometimes seem. We can motivate people to help stop climate change — it may just not be climate science that convinces them to act.
Weiye Loh

Have you heard of the Koch Brothers? | the kent ridge common - 0 views

  • I return to the Guardian online site expressly to search for those elusive articles on Wisconsin. The main page has none. I click on News – US, and there are none. I click on ‘Commentary is Free’- US, and find one article on protests in Ohio. I go to the New York Times online site. Earlier, on my phone, I had seen one article at the bottom of the main page on Wisconsin. By the time I managed to get on my computer to find it again however, the NYT main page was quite devoid of any articles on the protests at all. I am stumped; clearly, I have to reconfigure my daily news sources and reading diet.
  • It is not that the media is not covering the protests in Wisconsin at all – but effective media coverage in the US at least, in my view, is as much about volume as it is about substantive coverage. That week, more prime-time slots and the bulk of the US national attention were given to Charlie Sheen and his crazy antics (whatever they were about, I am still not too sure) than to Libya and the rest of the Middle East, or more significantly, to a pertinent domestic issue, the teacher protests  - not just in Wisconsin but also in other cities in the north-eastern part of the US.
  • In the March 2nd episode of The Colbert Report, it was shown that the Fox News coverage of the Wisconsin protests had re-used footage from more violent protests in California (the palm trees in the background gave Fox News away). Bill O’Reilly at Fox News had apparently issued an apology – but how many viewers who had seen the footage and believed it to be on-the-ground footage of Wisconsin would have followed-up on the report and the apology? And anyway, why portray the teacher protests as violent?
  • ...12 more annotations...
  • In this New York Times’ article, “Teachers Wonder, Why the scorn?“, the writer notes the often scathing comments from counter-demonstrators – “Oh you pathetic teachers, read the online comments and placards of counterdemonstrators. You are glorified baby sitters who leave work at 3 p.m. You deserve minimum wage.” What had begun as an ostensibly ‘economic reform’ targeted at teachers’ unions has gradually transmogrified into a kind of “character attack” to this section of American society – teachers are people who wage violent protests (thanks to borrowed footage from the West Coast) and they are undeserving of their economic benefits, and indeed treat these privileges as ‘rights’. The ‘war’ is waged on multiple fronts, economic, political, social, psychological even — or at least one gets this sort of picture from reading these articles.
  • as Singaporeans with a uniquely Singaporean work ethic, we may perceive functioning ‘trade unions’ as those institutions in the so-called “West” where they amass lots of membership, then hold the government ‘hostage’ in order to negotiate higher wages and benefits. Think of trade unions in the Singaporean context, and I think of SIA pilots. And of LKY’s various firm and stern comments on those issues. Think of trade unions and I think of strikes in France, in South Korea, when I was younger, and of my mum saying, “How irresponsible!” before flipping the TV channel.
  • The reason why I think the teachers’ protests should not be seen solely as an issue about trade-unions, and evaluated myopically and naively in terms of whether trade unions are ‘good’ or ‘bad’ is because the protests feature in a larger political context with the billionaire Koch brothers at the helm, financing and directing much of what has transpired in recent weeks. Or at least according to certain articles which I present here.
  • In this NYT article entitled “Billionaire Brothers’ Money Plays Role in Wisconsin Dispute“, the writer noted that Koch Industries had been “one of the biggest contributors to the election campaign of Gov. Scott Walker of Wisconsin, a Republican who has championed the proposed cuts.” Further, the president of Americans for Prosperity, a nonprofit group financed by the Koch brothers, had reportedly addressed counter-demonstrators last Saturday saying that “the cuts were not only necessary, but they also represented the start of a much-needed nationwide move to slash public-sector union benefits.” and in his own words -“ ‘We are going to bring fiscal sanity back to this great nation’ ”. All this rhetoric would be more convincing to me if they weren’t funded by the same two billionaires who financially enabled Walker’s governorship.
  • I now refer you to a long piece by Jane Mayer for The New Yorker titled, “Covert Operations: The billionaire brothers who are waging a war against Obama“. According to her, “The Kochs are longtime libertarians who believe in drastically lower personal and corporate taxes, minimal social services for the needy, and much less oversight of industry—especially environmental regulation. These views dovetail with the brothers’ corporate interests.”
  • Their libertarian modus operandi involves great expenses in lobbying, in political contributions and in setting up think tanks. From 2006-2010, Koch Industries have led energy companies in political contributions; “[i]n the second quarter of 2010, David Koch was the biggest individual contributor to the Republican Governors Association, with a million-dollar donation.” More statistics, or at least those of the non-anonymous donation records, can be found on page 5 of Mayer’s piece.
  • Naturally, the Democrats also have their billionaire donors, most notably in the form of George Soros. Mayer writes that he has made ‘generous private contributions to various Democratic campaigns, including Obama’s.” Yet what distinguishes him from the Koch brothers here is, as Michael Vachon, his spokesman, argued, ‘that Soros’s giving is transparent, and that “none of his contributions are in the service of his own economic interests.” ‘ Of course, this must be taken with a healthy dose of salt, but I will note here that in Charles Ferguson’s documentary Inside Job, which was about the 2008 financial crisis, George Soros was one of those interviewed who was not portrayed negatively. (My review of it is here.)
  • Of the Koch brothers’ political investments, what interested me more was the US’ “first libertarian thinktank”, the Cato Institute. Mayer writes, ‘When President Obama, in a 2008 speech, described the science on global warming as “beyond dispute,” the Cato Institute took out a full-page ad in the Times to contradict him. Cato’s resident scholars have relentlessly criticized political attempts to stop global warming as expensive, ineffective, and unnecessary. Ed Crane, the Cato Institute’s founder and president, told [Mayer] that “global-warming theories give the government more control of the economy.” ‘
  • K Street refers to a major street in Washington, D.C. where major think tanks, lobbyists and advocacy groups are located.
  • with recent developments as the Citizens United case where corporations are now ‘persons’ and have no caps in political contributions, the Koch brothers are ever better-positioned to take down their perceived big, bad government and carry out their ideological agenda as sketched in Mayer’s piece
  • with much important news around the world jostling for our attention – earthquake in Japan, Middle East revolutions – the passing of an anti-union bill (which finally happened today, for better or for worse) in an American state is unlikely to make a headline able to compete with natural disasters and revolutions. Then, to quote Wisconsin Governor Scott Walker during that prank call conversation, “Sooner or later the media stops finding it [the teacher protests] interesting.”
  • What remains more puzzling for me is why the American public seems to buy into the Koch-funded libertarian rhetoric. Mayer writes, ‘ “Income inequality in America is greater than it has been since the nineteen-twenties, and since the seventies the tax rates of the wealthiest have fallen more than those of the middle class. Yet the brothers’ message has evidently resonated with voters: a recent poll found that fifty-five per cent of Americans agreed that Obama is a socialist.” I suppose that not knowing who is funding the political rhetoric makes it easier for the public to imbibe it.
Weiye Loh

YouTube - I'm A Climate Scientist (HUNGRY BEAST) - 0 views

  •  
    yo....we're climate scientists.. and there's no denying this Climate Change Is REEEEALL.. Who's a climate scientist.. I'm a climate scientist.. Not a cleo finalist No a climate scientist Droppin facts all over this wax While bitches be crying about a carbon tax Climate change is caused by people Earth Unlike Alien Has no sequel We gotta move fast or we'll be forsaken, Cause we were too busy suckin dick Copenhagen: (Politician) I said Burn! it's hot in here.. 32% more carbon in the atmosphere. Oh Eee Ohh Eee oh wee ice ice ice Raisin' sea levels twice by twice We're scientists, what we speak is True. Unlike Andrew Bolt our work is Peer Reviewed... ooohhh Who's a climate scientist.. I'm a climate scientist.. An Anglican revivalist No a climate scientist Feedback is like climate change on crack The permafrosts subtracts: feedback Methane release wack : feedback.. Write a letter then burn it: feedback Denialists deny this in your dreams Coz climate change means greater extremes, Shit won't be the norm Heatwaves bigger badder storms The Green house effect is just a theory sucker (Alan Jones) Yeah so is gravity float away muther f**cker Who's a climate scientist.. I'm a climate scientist.. I'm not a climate Scientist Who's Climate Scientists A Penny Farthing Cyclist No A Lebanese typist No A Paleontologist No A Sebaceous Cyst No! a climate scientist! Yo! PREACH~!
Weiye Loh

Rational Irrationality: Do Good Kindergarten Teachers Raise their Pupils' Wages? : The ... - 0 views

  • Columnist David Leonhardt reports the findings of a new study which suggests that children who are fortunate enough to have an unusually good kindergarten teacher can expect to make roughly an extra twenty dollars a week by the age of twenty-seven.
  • it implies that during each school year a good kindergarten teacher creates an additional $320,000 of earnings.
  • The new research (pdf), the work of six economists—four from Harvard, one from Berkeley, and one from Northwestern—upends this finding. It is based on test scores and demographic data from a famous experiment carried out in Tennessee during the late nineteen-eighties, which tracked the progress of about 11,500 students from kindergarten to third grade. Most of these students are now about thirty years old, which means they have been working for up to twelve years. The researchers also gained access to income-tax data and matched it up with the test scores. Their surprising conclusion is that the uplifting effect of a good kindergarten experience, after largely disappearing during a child’s teen years, somehow reappears in the adult workplace. (See Figure 7 in the paper.) Why does this happen? The author don’t say, but Leonhardt offers this explanation: “Good early education can impart skills that last a lifetime—patience, discipline, manners, perseverance. The tests that 5-year-olds take may pick up these skills, even if later multiple-choice tests do not.”
  • ...3 more annotations...
  • However, as I read the story and the findings it is based upon, some questions crept into my mind. I relate them not out of any desire to discredit the study, which is enterprising and newsworthy, but simply as a warning to parents and policymakers not to go overboard.
  • from a dense academic article that hasn’t been published or peer reviewed. At this stage, there isn’t even a working paper detailing how the results were arrived at: just a set of slides. Why is this important? Because economics is a disputatious subject, and surprising empirical findings invariably get challenged by rival groups of researchers. The authors of the paper include two rising stars of the economics profession—Berkeley’s Emmanuel Saez and Harvard’s Raj Chetty—both of whom have reputations for careful and rigorous work. However, many other smart researchers have had their findings overturned. That is how science proceeds. Somebody says something surprising, and others in the field try to knock it down. Sometimes they succeed; sometimes they don’t. Until that Darwinian process is completed, which won’t be for another couple of years, at least, the new findings should be regarded as provisional.
  • A second point, which is related to the first, concerns methodology. In coming up with the $320,000 a year figure for the effects that kindergarten teachers have on adult earnings, the authors make use of complicated statistical techniques, including something called a “jack knife regression.” Such methods are perfectly legitimate and are now used widely in economics, but their application often adds an additional layer of ambiguity to the findings they generate. Is this particular statistical method appropriate for the task at hand? Do other methods generate different results? These are the sorts of question that other researchers will be pursuing.
  •  
    JULY 29, 2010 DO GOOD KINDERGARTEN TEACHERS RAISE THEIR PUPILS' WAGES? Posted by John Cassidy
Weiye Loh

What is the role of the state? | Martin Wolf's Exchange | FT.com - 0 views

  • This question has concerned western thinkers at least since Plato (5th-4th century BCE). It has also concerned thinkers in other cultural traditions: Confucius (6th-5th century BCE); China’s legalist tradition; and India’s Kautilya (4th-3rd century BCE). The perspective here is that of the contemporary democratic west.
  • The core purpose of the state is protection. This view would be shared by everybody, except anarchists, who believe that the protective role of the state is unnecessary or, more precisely, that people can rely on purely voluntary arrangements.
  • Contemporary Somalia shows the horrors that can befall a stateless society. Yet horrors can also befall a society with an over-mighty state. It is evident, because it is the story of post-tribal humanity that the powers of the state can be abused for the benefit of those who control it.
  • ...9 more annotations...
  • In his final book, Power and Prosperity, the late Mancur Olson argued that the state was a “stationary bandit”. A stationary bandit is better than a “roving bandit”, because the latter has no interest in developing the economy, while the former does. But it may not be much better, because those who control the state will seek to extract the surplus over subsistence generated by those under their control.
  • In the contemporary west, there are three protections against undue exploitation by the stationary bandit: exit, voice (on the first two of these, see this on Albert Hirschman) and restraint. By “exit”, I mean the possibility of escaping from the control of a given jurisdiction, by emigration, capital flight or some form of market exchange. By “voice”, I mean a degree of control over, the state, most obviously by voting. By “restraint”, I mean independent courts, division of powers, federalism and entrenched rights.
  • defining what a democratic state, viewed precisely as such a constrained protective arrangement, is entitled to do.
  • There exists a strand in classical liberal or, in contemporary US parlance, libertarian thought which believes the answer is to define the role of the state so narrowly and the rights of individuals so broadly that many political choices (the income tax or universal health care, for example) would be ruled out a priori. In other words, it seeks to abolish much of politics through constitutional restraints. I view this as a hopeless strategy, both intellectually and politically. It is hopeless intellectually, because the values people hold are many and divergent and some of these values do not merely allow, but demand, government protection of weak, vulnerable or unfortunate people. Moreover, such values are not “wrong”. The reality is that people hold many, often incompatible, core values. Libertarians argue that the only relevant wrong is coercion by the state. Others disagree and are entitled to do so. It is hopeless politically, because democracy necessitates debate among widely divergent opinions. Trying to rule out a vast range of values from the political sphere by constitutional means will fail. Under enough pressure, the constitution itself will be changed, via amendment or reinterpretation.
  • So what ought the protective role of the state to include? Again, in such a discussion, classical liberals would argue for the “night-watchman” role. The government’s responsibilities are limited to protecting individuals from coercion, fraud and theft and to defending the country from foreign aggression. Yet once one has accepted the legitimacy of using coercion (taxation) to provide the goods listed above, there is no reason in principle why one should not accept it for the provision of other goods that cannot be provided as well, or at all, by non-political means.
  • Those other measures would include addressing a range of externalities (e.g. pollution), providing information and supplying insurance against otherwise uninsurable risks, such as unemployment, spousal abandonment and so forth. The subsidisation or public provision of childcare and education is a way to promote equality of opportunity. The subsidisation or public provision of health insurance is a way to preserve life, unquestionably one of the purposes of the state. Safety standards are a way to protect people against the carelessness or malevolence of others or (more controversially) themselves. All these, then, are legitimate protective measures. The more complex the society and economy, the greater the range of the protections that will be sought.
  • What, then, are the objections to such actions? The answers might be: the proposed measures are ineffective, compared with what would happen in the absence of state intervention; the measures are unaffordable and might lead to state bankruptcy; the measures encourage irresponsible behaviour; and, at the limit, the measures restrict individual autonomy to an unacceptable degree. These are all, we should note, questions of consequences.
  • The vote is more evenly distributed than wealth and income. Thus, one would expect the tenor of democratic policymaking to be redistributive and so, indeed, it is. Those with wealth and income to protect will then make political power expensive to acquire and encourage potential supporters to focus on common enemies (inside and outside the country) and on cultural values. The more unequal are incomes and wealth and the more determined are the “haves” to avoid being compelled to support the “have-nots”, the more politics will take on such characteristics.
  • In the 1970s, the view that democracy would collapse under the weight of its excessive promises seemed to me disturbingly true. I am no longer convinced of this: as Adam Smith said, “There is a great deal of ruin in a nation”. Moreover, the capacity for learning by democracies is greater than I had realised. The conservative movements of the 1980s were part of that learning. But they went too far in their confidence in market arrangements and their indifference to the social and political consequences of inequality. I would support state pensions, state-funded health insurance and state regulation of environmental and other externalities. I am happy to debate details. The ancient Athenians called someone who had a purely private life “idiotes”. This is, of course, the origin of our word “idiot”. Individual liberty does indeed matter. But it is not the only thing that matters. The market is a remarkable social institution. But it is far from perfect. Democratic politics can be destructive. But it is much better than the alternatives. Each of us has an obligation, as a citizen, to make politics work as well as he (or she) can and to embrace the debate over a wide range of difficult choices that this entails.
  •  
    What is the role of the state?
Weiye Loh

Science scorned : Nature : Nature Publishing Group - 0 views

  • There is a growing anti-science streak on the American right that could have tangible societal and political impacts on many fronts — including regulation of environmental and other issues and stem-cell research.
  • The right-wing populism that is flourishing in the current climate of economic insecurity echoes many traditional conservative themes, such as opposition to taxes, regulation and immigration. But the Tea Party and its cheerleaders, who include Limbaugh, Fox News television host Glenn Beck and Sarah Palin (who famously decried fruitfly research as a waste of public money), are also tapping an age-old US political impulse — a suspicion of elites and expertise.
  • Denialism over global warming has become a scientific cause célèbre within the movement. Limbaugh, for instance, who has told his listeners that “science has become a home for displaced socialists and communists”, has called climate-change science “the biggest scam in the history of the world”. The Tea Party's leanings encompass religious opposition to Darwinian evolution and to stem-cell and embryo research — which Beck has equated with eugenics. The movement is also averse to science-based regulation, which it sees as an excuse for intrusive government. Under the administration of George W. Bush, science in policy had already taken knocks from both neglect and ideology. Yet President Barack Obama's promise to “restore science to its rightful place” seems to have linked science to liberal politics, making it even more of a target of the right.
  • ...1 more annotation...
  • US citizens face economic problems that are all too real, and the country's future crucially depends on education, science and technology as it faces increasing competition from China and other emerging science powers.
  •  
    Science Scorned  The anti-science strain pervading the right wing in the United States is the last thing the country needs in a time of economic challenge.
Weiye Loh

The Left Right Paradigm is Over: Its You vs. Corporations | The Big Picture - 0 views

  • For a long time, American politics has been defined by a Left/Right dynamic. It was Liberals versus Conservatives on a variety of issues. Pro-Life versus Pro-Choice, Tax Cuts vs. More Spending, Pro-War vs Peaceniks, Environmental Protections vs. Economic Growth, Pro-Union vs. Union-Free, Gay Marriage vs. Family Values, School Choice vs. Public Schools, Regulation vs. Free Markets.
  • The new dynamic, however, has moved past the old Left Right paradigm. We now live in an era defined by increasing Corporate influence and authority over the individual. These two “interest groups” – I can barely suppress snorting derisively over that phrase – have been on a headlong collision course for decades, which came to a head with the financial collapse and bailouts. Where there is massive concentrations of wealth and influence, there will be abuse of power.  The Individual has been supplanted in the political process nearly entirely by corporate money, legislative influence, campaign contributions, even free speech rights.
  • It is now an Individual vs. Corporate debate – and the Humans are losing. Consider: • Many of the regulations that govern energy and banking sector were written by Corporations; • The biggest influence on legislative votes is often Corporate Lobbying; • Corporate ability to extend copyright far beyond what original protections amounts to a taking of public works for private corporate usage; • PAC and campaign finance by Corporations has supplanted individual donations to elections; • The individuals’ right to seek redress in court has been under attack for decades, limiting their options. • DRM and content protection undercuts the individual’s ability to use purchased content as they see fit; • Patent protections are continually weakened. Deep pocketed corporations can usurp inventions almost at will; • The Supreme Court has ruled that Corporations have Free Speech rights equivalent to people; (So much for original intent!) None of these are Democrat/Republican conflicts, but rather, are corporate vs. individual issues.
  • ...2 more annotations...
  • What does it mean when we can no longer distinguish between the actions of the left and the right? If that dynamic no longer accurately distinguishes what occurs, why are so many of our policy debates framed in Left/Right terms? In many ways, American society is increasingly less married to this dynamic: Party Affiliation continues to fall, approval of Congress is at record lows, and voter participation hovers at very low rates.
  • There is some pushback already taking place against the concentration of corporate power: Mainstream corporate media has been increasingly replaced with user created content – YouTube and Blogs are increasingly important to news consumers (especially younger users). Independent voters are an increasingly larger share of the US electorate. And I suspect that much of the pushback against the Elizabeth Warren’s concept of a Financial Consumer Protection Agency plays directly into this Corporate vs. Individual fight. But the battle lines between the two groups have barely been drawn. I expect this fight will define American politics over the next decade.
  •  
    The Left Right Paradigm is Over: Its You vs. Corporations
Weiye Loh

Why Research Alone Won't Fix the Climate - NYTimes.com - 0 views

  •  
    Why Research Alone Won't Fix the Climate By DAVID LEONHARDT
Weiye Loh

The Problem with Climate Change | the kent ridge common - 0 views

  • what is climate change? From a scientific point of view, it is simply a statistical change in atmospheric variables (temperature, precipitation, humidity etc). It has been occurring ever since the Earth came into existence, far before humans even set foot on the planet: our climate has been fluctuating between warm periods and ice ages, with further variations within. In fact, we are living in a warm interglacial period in the middle of an ice age.
  • Global warming has often been portrayed in apocalyptic tones, whether from the mouth of the media or environmental groups: the daily news tell of natural disasters happening at a frightening pace, of crop failures due to strange weather, of mass extinctions and coral die-outs. When the devastating tsunami struck Southeast Asia years ago, some said it was the wrath of God against human mistreatment of the environment; when hurricane Katrina dealt out a catastrophe, others said it was because of (America’s) failure to deal with climate change. Science gives the figures and trends, and people take these to extremes.
  • One immediate problem with blaming climate change for every weather-related disaster or phenomenon is that it reduces humans’ responsibility of mitigating or preventing it. If natural disasters are already, as their name suggests, natural, adding the tag ‘global warming’ or ‘climate change’ emphasizes the dominance of natural forces, and our inability to do anything about it. Surely, humans cannot undo climate change? Even at Cancun, amid the carbon cuts that have been promised, questions are being brought up on whether they are sufficient to reverse our actions and ‘save’ the planet.  Yet the talk about this remote, omnipotent force known as climate change obscures the fact that, we can, and have always been, thinking of ways to reduce the impact of natural hazards. Forecasting, building better infrastructure and coordinating more efficient responses – all these are far more desirable to wading in woe. For example, we will do better at preventing floods in Singapore at tackling the problems rather than singing in praise of God.
  • ...5 more annotations...
  • However, a greater concern lies in the notion of climate change itself. Climate change is in essence one kind of nature-society relationship, in which humans influence the climate through greenhouse gas (particularly CO2) emissions, and the climate strikes back by heating up and going crazy at times. This can be further simplified into a battle between humans and CO2: reducing CO2 guards against climate change, and increasing it aggravates the consequences. This view is anchored in scientists’ recommendation that a ‘safe’ level of CO2 should be at 350 parts per million (ppm) instead of the current 390. Already, the need to reduce CO2 is understood, as is evident in the push for greener fuels, more efficient means of production, the proliferation of ‘green’ products and companies, and most recently, the Cancun talks.
  • So can there be anything wrong with reducing CO2? No, there isn’t, but singling out CO2 as the culprit of climate change or of the environmental problems we face prevents us from looking within. What do I mean? The enemy, CO2, is an ‘other’, an externality produced by our economic systems but never an inherent component of the systems. Thus, we can declare war on the gas or on climate change without taking a step back and questioning: is there anything wrong with the way we develop?  Take Singapore for example: the government pledged to reduce carbon emissions by 16% under ‘business as usual’ standards, which says nothing about how ‘business’ is going to be changed other than having less carbon emissions (in fact, it is questionable even that CO2 levels will decrease, as ‘business as usual’ standards project a steady increase emission of CO2 each year). With the development of green technologies, decrease in carbon emissions will mainly be brought about by increased energy efficiency and switch to alternative fuels (including the insidious nuclear energy).
  • Thus, the way we develop will hardly be changed. Nobody questions whether our neoliberal system of development, which relies heavily on consumption to drive economies, needs to be looked into. We assume that it is the right way to develop, and only tweak it for the amount of externalities produced. Whether or not we should be measuring development by the Gross Domestic Product (GDP) or if welfare is correlated to the amount of goods and services consumed is never considered. Even the UN-REDD (Reducing Emissions from Deforestation and Forest Degradation) scheme which aims to pay forest-rich countries for protecting their forests, ends up putting a price tag on them. The environment is being subsumed under the economy, when it should be that the economy is re-looked to take the environment into consideration.
  • when the world is celebrating after having held at bay the dangerous greenhouse gas, why would anyone bother rethinking about the economy? Yet we should, simply because there are alternative nature-society relationships and discourses about nature that are more or of equal importance as global warming. Annie Leonard’s informative videos on The Story of Stuff and specific products like electronics, bottled water and cosmetics shed light on the dangers of our ‘throw-away culture’ on the planet and poorer countries. What if the enemy was instead consumerism? Doing so would force countries (especially richer ones) to fundamentally question the nature of development, instead of just applying a quick technological fix. This is so much more difficult (and less economically viable), alongside other issues like environmental injustices – e.g. pollution or dumping of waste by Trans-National Corporations in poorer countries and removal of indigenous land rights. It is no wonder that we choose to disregard internal problems and focus instead on an external enemy; when CO2 is the culprit, the solution is too simple and detached from the communities that are affected by changes in their environment.
  • We need hence to allow for a greater politics of the environment. What I am proposing is not to diminish our action to reduce carbon emissions, for I do believe that it is part of the environmental problem that we are facing. What instead should be done is to reduce our fixation on CO2 as the main or only driver of climate change, and of climate change as the most pertinent nature-society issue we are facing. We should understand that there are many other ways of thinking about the environment; ‘developing’ countries, for example, tend to have a closer relationship with their environment – it is not something ‘out there’ but constantly interacted with for food, water, regulating services and cultural value. Their views and the impact of the socio-economic forces (often from TNCs and multi-lateral organizations like IMF) that shape the environment must also be taken into account, as do alternative meanings of sustainable development. Thus, even as we pat ourselves on the back for having achieved something significant at Cancun, our action should not and must not end there. Even if climate change hogs the headlines now, we must embrace more plurality in environmental discourse, for nature is not and never so simple as climate change alone. And hopefully sometime in the future, alongside a multi-lateral conference on climate change, the world can have one which rethinks the meaning of development.
  •  
    Chen Jinwen
Weiye Loh

BBC News - Cleaners 'worth more to society' than bankers - study - 0 views

  • The research, carried out by think tank the New Economics Foundation, says hospital cleaners create £10 of value for every £1 they are paid. It claims bankers are a drain on the country because of the damage they caused to the global economy. They reportedly destroy £7 of value for every £1 they earn. Meanwhile, senior advertising executives are said to "create stress". The study says they are responsible for campaigns which create dissatisfaction and misery, and encourage over-consumption.
  • And tax accountants damage the country by devising schemes to cut the amount of money available to the government, the research suggests. By contrast, child minders and waste recyclers are also doing jobs that create net wealth to the country.
  • a new form of job evaluation to calculate the total contribution various jobs make to society, including for the first time the impact on communities and environment.
  • ...3 more annotations...
  • "Pay levels often don't reflect the true value that is being created. As a society, we need a pay structure which rewards those jobs that create most societal benefit rather than those that generate profits at the expense of society and the environment".
  • "The point we are making is more fundamental - that there should be a relationship between what we are paid and the value our work generates for society. We've found a way to calculate that,"
  • The research also makes a variety of policy recommendations to align pay more closely with the value of work. These include establishing a high pay commission, building social and environmental value into prices, and introducing more progressive taxation.
  •  
    Cleaners 'worth more to society' than bankers - study
Weiye Loh

Meet the Ethical Placebo: A Story that Heals | NeuroTribes - 0 views

  • In modern medicine, placebos are associated with another form of deception — a kind that has long been thought essential for conducting randomized clinical trials of new drugs, the statistical rock upon which the global pharmaceutical industry was built. One group of volunteers in an RCT gets the novel medication; another group (the “control” group) gets pills or capsules that look identical to the allegedly active drug, but contain only an inert substance like milk sugar. These faux drugs are called placebos.
  • Inevitably, the health of some people in both groups improves, while the health of others grows worse. Symptoms of illness fluctuate for all sorts of reasons, including regression to the mean.
  • Since the goal of an RCT, from Big Pharma’s perspective, is to demonstrate the effectiveness of a new drug, the return to robust health of a volunteer in the control group is considered a statistical distraction. If too many people in the trial get better after downing sugar pills, the real drug will look worse by comparison — sometimes fatally so for the purpose of earning approval from the Food and Drug Adminstration.
  • ...12 more annotations...
  • For a complex and somewhat mysterious set of reasons, it is becoming increasingly difficult for experimental drugs to prove their superiority to sugar pills in RCTs
  • in recent years, however, has it become obvious that the abatement of symptoms in control-group volunteers — the so-called placebo effect — is worthy of study outside the context of drug trials, and is in fact profoundly good news to anyone but investors in Pfizer, Roche, and GlaxoSmithKline.
  • The emerging field of placebo research has revealed that the body’s repertoire of resilience contains a powerful self-healing network that can help reduce pain and inflammation, lower the production of stress chemicals like cortisol, and even tame high blood pressure and the tremors of Parkinson’s disease.
  • more and more studies each year — by researchers like Fabrizio Benedetti at the University of Turin, author of a superb new book called The Patient’s Brain, and neuroscientist Tor Wager at the University of Colorado — demonstrate that the placebo effect might be potentially useful in treating a wide range of ills. Then why aren’t doctors supposed to use it?
  • The medical establishment’s ethical problem with placebo treatment boils down to the notion that for fake drugs to be effective, doctors must lie to their patients. It has been widely assumed that if a patient discovers that he or she is taking a placebo, the mind/body password will no longer unlock the network, and the magic pills will cease to do their job.
  • For “Placebos Without Deception,” the researchers tracked the health of 80 volunteers with irritable bowel syndrome for three weeks as half of them took placebos and the other half didn’t.
  • In a previous study published in the British Medical Journal in 2008, Kaptchuk and Kirsch demonstrated that placebo treatment can be highly effective for alleviating the symptoms of IBS. This time, however, instead of the trial being “blinded,” it was “open.” That is, the volunteers in the placebo group knew that they were getting only inert pills — which they were instructed to take religiously, twice a day. They were also informed that, just as Ivan Pavlov trained his dogs to drool at the sound of a bell, the body could be trained to activate its own built-in healing network by the act of swallowing a pill.
  • In other words, in addition to the bogus medication, the volunteers were given a true story — the story of the placebo effect. They also received the care and attention of clinicians, which have been found in many other studies to be crucial for eliciting placebo effects. The combination of the story and a supportive clinical environment were enough to prevail over the knowledge that there was really nothing in the pills. People in the placebo arm of the trial got better — clinically, measurably, significantly better — on standard scales of symptom severity and overall quality of life. In fact, the volunteers in the placebo group experienced improvement comparable to patients taking a drug called alosetron, the standard of care for IBS. Meet the ethical placebo: a powerfully effective faux medication that meets all the standards of informed consent.
  • The study is hardly the last word on the subject, but more like one of the first. Its modest sample size and brief duration leave plenty of room for followup research. (What if “ethical” placebos wear off more quickly than deceptive ones? Does the fact that most of the volunteers in this study were women have any bearing on the outcome? Were any of the volunteers skeptical that the placebo effect is real, and did that affect their response to treatment?) Before some eager editor out there composes a tweet-baiting headline suggesting that placebos are about to drive Big Pharma out of business, he or she should appreciate the fact that the advent of AMA-approved placebo treatments would open numerous cans of fascinatingly tangled worms. For example, since the precise nature of placebo effects is shaped largely by patients’ expectations, would the advertised potency and side effects of theoretical products like Placebex and Therastim be subject to change by Internet rumors, requiring perpetual updating?
  • It’s common to use the word “placebo” as a synonym for “scam.” Economists talk about placebo solutions to our economic catastrophe (tax cuts for the rich, anyone?). Online skeptics mock the billion-dollar herbal-medicine industry by calling it Big Placebo. The fact that our brains and bodies respond vigorously to placebos given in warm and supportive clinical environments, however, turns out to be very real.
  • We’re also discovering that the power of narrative is embedded deeply in our physiology.
  • in the real world of doctoring, many physicians prescribe medications at dosages too low to have an effect on their own, hoping to tap into the body’s own healing resources — though this is mostly acknowledged only in whispers, as a kind of trade secret.
Weiye Loh

How tech tools have changed today's prostitution business - 0 views

  • Sudhir Venkatesh, a professor of sociology at Columbia University, along with his students, has been studying the sex work industry since the 1990s. In a recent article for Wired, Venkatesh describes how the business has changed over the past couple of decades.
  • Technology has played a fundamental role in this change. No self-respecting cosmopolitan man looking for an evening of companionship is going to lean out his car window and call out to a woman at a traffic light. The Internet and the rise of mobile phones have enabled some sex workers to professionalize their trade. Today they can control their image, set their prices, and sidestep some of the pimps, madams, and other intermediaries who once took a share of the revenue. As the trade has grown less risky and more lucrative, it has attracted some middle-class women seeking quick tax-free income.
1 - 20 of 33 Next ›
Showing 20 items per page