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Javier E

A Psychiatrist Tried to Quit Gambling. Betting Apps Kept Her Hooked. - WSJ - 0 views

  • Yet she was up against an industry skilled in the art of leveraging data analytics and human behavior to keep customers betting. Gambling companies tracked the ups and downs of Fischer’s betting behavior and gave bonus credits to keep her playing. VIP customer representatives offered encouragement and gifts.
Javier E

Ex-Security Chief Questions Israel's Handling of Iran - NYTimes.com - 1 views

  • The recently retired chief of Israel’s internal security agency said Friday night that he had “no faith” in the ability of the current leadership to handle the Iranian nuclear threat
  • “I don’t believe in a leadership that makes decisions based on messianic feelings,” said Yuval Diskin, who stepped down last May after six years running the Shin Bet, Israel’s version of the F.B.I.
  • “I have observed them from up close,” Mr. Diskin said. “I fear very much that these are not the people I’d want at the wheel.” Echoing Meir Dagan, the former head of the Mossad, Israel’s spy agency, Mr. Diskin also said that the government was “misleading the public” about the likely effectiveness of an aerial strike on Iran’s nuclear facilities.
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  • “A lot of experts have long been saying that one of the results of an Israeli attack on Iran could be a dramatic acceleration of the Iranian nuclear program,” Mr. Diskin said at a community forum in Kfar Saba, a central Israeli city of 80,000. “What the Iranians prefer to do today slowly and quietly, they would have the legitimacy to do quickly and in a much shorter time.”
  • Shin Bet does not deal with foreign affairs, and Mr. Diskin was careful to say that he was not saying that attacking Iran “is not a legitimate decision,” but instead he was questioning the leaders’ motives and abilities. “I am just very afraid that they are not the people who I truly would want to be holding the wheel when we set out on an endeavor of that sort,
  • Mr. Diskin’s comments were significant because he left the government in good stead with Mr. Netanyahu — unlike Mr. Dagan, who was forced out — and because he was widely respected “for being professional and honest and completely disconnected from politics.”
  • Mr. Diskin did not limit his critique to Iran. He said Israel had in recent years become “more and more racist,” and, invoking the 1995 assassination of Yitzhak Rabin, said there are many extremist Jews today who “would be willing to take up arms against their Jewish brothers.”
Javier E

Jordan Peterson Comes to Aspen - The Atlantic - 0 views

  • Peterson is traveling the English-speaking world in order to spread the message of this core conviction: that the way to fix what ails Western societies is a psychological project, targeted at helping individuals to get their lives in order, not a sociological project that seeks to improve society through politics, or popular culture, or by focusing on class, racial, or gender identity.
  • the Aspen Ideas Festival, which is co-sponsored by the Aspen Institute and The Atlantic, was an anomaly in this series of public appearances: a gathering largely populated by people—Democrats and centrist Republicans, corporate leaders, academics, millionaire philanthropists, journalists—invested in the contrary proposition, that the way to fix what ails society is a sociological project, one that effects change by focusing on politics, or changing popular culture, or spurring technological advances, or investing more in diversity and inclusiveness.
  • Many of its attendees, like many journalists, are most interested in Peterson as a political figure at the center of controversies
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  • Peterson deserves a full, appropriately complex accounting of his best and worst arguments; I intend to give him one soon. For now, I can only tell you how the Peterson phenomenon manifested one night in Aspen
  • “For the first time in human history the spoken word has the same reach as the written word, and there are no barriers to entry. That’s a Gutenberg revolution,” he said. “That’s a big deal. This is a game changer. The podcast world is also a Gutenberg moment but it’s even more extensive. The problem with books is that you can’t do anything else while you’re reading. But if you’re listening to a podcast you can be driving a tractor or a long haul truck or doing the dishes. So podcasts free up two hours a day for people to engage in educational activity they otherwise wouldn’t be able to engage in. That’s one-eighth of people’s lives. You’re handing people a lot of time back to engage in high-level intellectual education.
  • that technological revolution has revealed something good that we didn’t know before: “The narrow bandwidth of TV has made us think that we are stupider than we are. And people have a real hunger for deep intellectual dialogue.”
  • I’ve known for years that the university underserved the community, because we assumed that university education is for 18- to 22-year-olds, which is a proposition that’s so absurd it is absolutely mind-boggling that anyone ever conceptualized it. Why wouldn’t you take university courses throughout your entire life? What, you stop searching for wisdom when you’re 22? I don’t think so. You don’t even start until you’re like in your mid 20s. So I knew universities were underserving the broader community a long time ago. But there wasn’t a mechanism whereby that could be rectified.
  • Universities are beyond forgiveness, he argued, because due to the growing ranks of administrators, there’s been a radical increase in tuition. “Unsuspecting students are given free access to student loans that will cripple them through their 30s and their 40s, and the universities are enticing them to extend their carefree adolescence for a four year period at the cost of mortgaging their future in a deal that does not allow for escape through bankruptcy,” he complained. “So it’s essentially a form of indentured servitude. There’s no excuse for that … That cripples the economy because the students become overlaid with debt that they’ll never pay off at the time when they should be at the peak of their ability to take entrepreneurial risks. That’s absolutely appalling.”
  • A critique I frequently hear from Peterson’s critics is that everything he says is either obvious or wrong. I think that critique fails insofar as I sometimes see some critics calling one of his statements obvious even as others insist it is obviously wrong.
  • a reliable difference among men and women cross-culturally is that men are more aggressive than women. Now what's the evidence for that? Here's one piece of evidence: There are 10 times as many men in prison. Now is that a sociocultural construct? It's like, no, it's not a sociocultural construct. Okay?
  • Here's another piece of data. Women try to commit suicide more than men by a lot, and that's because women are more prone to depression and anxiety than men are. And there are reasons for that, and that's cross-cultural as well. Now men are way more likely to actually commit suicide. Why? Because they're more aggressive so they use lethal means. So now the question is how much more aggressive are men than women? The answer is not very much. So the claim that men and women are more the same than different is actually true. This is where you have to know something about statistics to understand the way the world works, instead of just applying your a priori ideological presuppositions to things that are too complex to fit in that rubric.
  • So if you draw two people out of a crowd, one man and one woman, and you had to lay a bet on who was more aggressive, and you bet on the woman, you'd win 40 percent of the time. That's quite a lot. It isn't 50 percent of the time which would be no differences. But it’s a lot. There are lots of women who are more aggressive than lots of men. So the curves overlap a lot. There's way more similarity than difference. And this is along the dimension where there's the most difference. But here's the problem. You can take small differences at the average of a distribution. Then the distributions move off to the side. And then all the action is at the tail. So here's the situation. You don't care about how aggressive the average person is. It's not that relevant. What people care about is who is the most aggressive person out of 100, because that's the person you'd better watch out for.
  • Whenever I'm interviewed by journalists who have the scent of blood in their nose, let's say, they're very willing and able to characterize the situation I find myself in as political. But that's because they can't see the world in any other manner. The political is a tiny fraction of the world. And what I'm doing isn't political. It's psychological or theological. The political element is peripheral. And if people come to the live lectures, let's say, that's absolutely self-evident
  • In a New York Times article titled, “Jordan Peterson, Custodian of the Patriarchy,” the writer Nellie Bowles quoted her subject as follows:
  • Violent attacks are what happens when men do not have partners, Mr. Peterson says, and society needs to work to make sure those men are married. “He was angry at God because women were rejecting him,” Mr. Peterson says of the Toronto killer. “The cure for that is enforced monogamy. That’s actually why monogamy emerges.” Mr. Peterson does not pause when he says this. Enforced monogamy is, to him, simply a rational solution. Otherwise women will all only go for the most high-status men, he explains, and that couldn’t make either gender happy in the end.
  • Ever since, some Peterson critics have claimed that Peterson wants to force women to have sex with male incels, or something similarly dystopian.
  • ...it's an anthropological truism generated primarily through scholars on the left, just so everybody is clear about it, that societies that use monogamy as a social norm, which by the way is virtually every human society that ever existed, do that in an attempt to control the aggression that goes along with polygamy. It's like ‘Oh my God, how contentious can you get.’ Well, how many of you are in monogamous relationships? A majority. How is that enforced?...
  • If everyone you talk to is boring it’s not them! And so if you're rejected by the opposite sex, if you’re heterosexual, then you're wrong, they're not wrong, and you've got some work to do, man. You've got some difficult work to do. And there isn't anything I've been telling young men that's clearer than that … What I've been telling people is take the responsibility for failure onto yourself. That's a hint that you've got work to do. It could also be a hint that you're young and useless and why the hell would anybody have anything to do with you because you don't have anything to offer. And that's rectifiable. Maturity helps to rectify that.
  • And what's the gender? Men. Because if you go two standard deviations out from the mean on two curves that overlap but are disjointed, then you derive an overwhelming preponderance of the overrepresented group. That's why men are about 10 times more likely to be in prison.  
  • Weiss: You are often characterized, at least in the mainstream press, as being transphobic. If you had a student come to you and say, I was born female, I now identify as male, I want you to call me by male pronouns. Would you say yes to that?
  • Peterson: Well, it would depend on the student and the context and why I thought they were asking me and what I believe their demand actually characterized, and all of that. Because that can be done in a way that is genuine and acceptable, and a way that is manipulative and unacceptable. And if it was genuine and acceptable then I would have no problem with it. And if it was manipulative and unacceptable then not a chance. And you might think, ‘Well, who am I to judge?’ Well, first of all, I am a clinical psychologist, I've talked to people for about 25,000 hours. And I'm responsible for judging how I am going to use my words. I'd judge the same way I judge all my interactions with people, which is to the best of my ability, and characterized by all the errors that I'm prone to. I'm not saying that my judgment would be unerring. I live with the consequences and I'm willing to accept the responsibility.
  • But also to be clear about this, it never happened––I never refused to call anyone by anything they had asked me to call them by, although that's been reported multiple times. It's a complete falsehood. And it had nothing to do with the transgender issue as far as I'm concerned.
  • type one and type two error problem
  • note what his avowed position is: that he has never refused to call a transgender person by their preferred pronoun, that he has done so many times, that he would always try to err on the side of believing a request to be earnest, and that he reserves the right to decline a request he believes to be in bad faith. Whether one finds that to be reasonable or needlessly difficult, it seems irresponsible to tell trans people that a prominent intellectual hates them or is deeply antagonistic to them when the only seeming conflict is utterly hypothetical and ostensibly not even directed against people that Peterson believes to be trans, but only against people whom he does not believe to be trans
Javier E

The Price of the Coronavirus Pandemic | The New Yorker - 0 views

  • “You don’t know anyone who has made as much money out of this as I have,” he said over the phone. No argument here. He wouldn’t specify an amount, but reckoned that he was up almost two thousand per cent on the year.
  • He bought a big stake in Alpha Pro Tech, one of the few North American manufacturers of N95 surgical masks, with the expectation that when the virus made it across the Pacific the company would get government contracts to produce more. The stock was trading at about three dollars and fifty cents a share, and so, for cents on the dollar, he bought options to purchase the shares at a future date for ten dollars: he was betting that it would go up much more than that. By the end of February, the stock was trading at twenty-five dollars a share
  • He quickly put some money to work
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  • He shorted oil and, as a proxy for oil, the Canadian dollar. (That is, he bet against both.) Finally, he shorted U.S. equities.
  • Last October, he listened to an audiobook by the Hardcore History podcaster, Dan Carlin, called “The End Is Always Near.” “So I had pandemics and plagues in my head,” the Australian said. “In December, I started seeing the first articles about this wet-market thing going on in China, and then in early January there was a lot on Twitter about the shit in Wuhan.” He was in Switzerland on a ski holiday with his family, and he bought all the surgical masks and gloves he could find.
  • The Australian, who spoke on the condition that his name not be used, is a voluble redhead just shy of fifty.
  • The problem, he said, was that, perhaps more now than ever, Americans lack what he called “social cohesion,” and thus the collective will, to commit to such a path.
  • perhaps the government should reward each citizen who strictly observed the quarantine with fifty thousand dollars. “The virus would burn out after four weeks,” he said. The U.S. had all the food and water and fuel it would need to survive months, if not years, of total isolation from the world. “If you don’t trade with China, they’re screwed,” he said. “You’d win this war. Let the rest of the world burn.
  • I’d been eavesdropping for a week on the friend’s WhatsApp conversation with dozens of his acquaintances and colleagues (he called them the Fokkers, for an acronym involving his name), all of them men, most of them expensively educated financial professionals, some of them very rich, a few with connections in high places. The general disposition of the participants, with exceptions, was the opposite of the Australian’s
  • they expressed the belief, with a conviction that occasionally tipped into stridency or mockery, that the media, the modellers, and the markets were overreacting to the threat of the coronavirus
  • They mocked Jim Cramer, the host of the market program “Mad Money,” on CNBC, for predicting a great depression and wondering if anyone would ever board an airplane again. Anecdotes, hyperbole: the talking chuckleheads sowing and selling fear.
  • it’s hard for a coldhearted capitalist to know just how cold the heart must go. Public-health professionals make a cost-benefit calculation, too, with different weightings.
  • This brutal shock is attacking a body that was already vulnerable. In the event of a global depression, a postmortem might identify COVID-19 as the cause of death, but, as with so many of the virus’s victims, the economy had a preëxisting condition—debt, instead of pulmonary disease.
  • “It’s as if the virus is almost beside the point,” a trader I know told me. “This was all set up to happen.”
  • the “smart money,” like the giant asset-management firms Blackstone and the Carlyle Group, was now telling companies to draw down their bank lines, and borrow as much as they could, in case the lenders went out of business or found ways to say no. Sure enough, by March’s end, corporations had reportedly tapped a record two hundred and eight billion dollars from their revolving-credit lines
  • In a world where we talk, suddenly, of trillions, two hundred billion may not seem like a lot, but it is: in 2007, the subprime-mortgage lender Countrywide Financial, in drawing down “just” $11.5 billion, helped bring the system to its knees.
  • It is hard to navigate out of the debt trap. Creditors can forgive debtors, but that process, especially at this level, would be almost impossibly laborious and fraught. Meanwhile, defaults flood the market with collateral, be it buildings, stocks, or aircraft. The price of that collateral collapses—haircuts for baldheads—leading to more defaults.
  • In New York State, where nearly half a million new claims had been filed in two weeks, the unemployment-insurance trust began to teeter toward insolvency. Come summer, there would be no money left to pay unemployment benefits.
  • As April arrived, businesses, large and small, decided not to pay rent, either because they didn’t have the cash on hand or because, with a recession looming, they wanted to preserve what cash they had. Furloughed or fired employees, meanwhile, faced similar decisions
  • On March 20th, Goldman Sachs spooked the world, by predicting a twenty-four-per-cent decline in G.D.P. in the second quarter, a falloff in activity that seemed at once both unthinkable and inevitable. Subsequent predictions grew even more disma
aprossi

Joe Biden wrests control of Donald Trump's spotlight and makes first big bet of preside... - 0 views

  • Biden wrests control of Trump's spotlight and makes first big bet of presidency
  • a $1.9 trillion plan to end the pandemic, save the economy and revive the weakened heartbeat of a nation.
  • he will take the oath of office amid soaring fears of violence by pro-Trump extremists, which will mean the National Mall will be empty of its carnival crowds of thousands who traditionally witness the sacred transfer of presidential power.
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  • It also gave him the chance to set out the dire state of the nation he will lead in just five days and to establish a baseline from which to manage the expectations on which he will be judged.
  • The President-elect's initiative is packed with extended unemployment benefits, rental assistance, aid to small businesses and $1,400 more in stimulus payments, in addition to the $600 already appropriated. Biden wants billions of new spending to help schools open, $20 billion for a national vaccine plan and $50 billion for expanding coronavirus testing and plans to hire an army of 100,000 public health workers.
  • Biden proposes $1.9 trillion vaccination and economic rescue legislative package
  • Biden puts $2,000 stimulus payments back in play
  • Biden taps Lisa Monaco as homeland security adviser to inauguration amid rising threats
  • MAP: Full presidential election results
  • which has killed at least 387,000 Americans.
  • No new commander in chief since Franklin Roosevelt in 1933 has faced a tougher baptism of crises than Biden
  • The Trump administration had promised it would vaccinate some 20 million people by the end of 2020, but so far Operation Warp Speed has been able to get only about 10 million doses out to state and local governments
  • 100 million shots over his first 100 days.
Javier E

The varieties of denialism | Scientia Salon - 1 views

  • a stimulating conference at Clark University about “Manufacturing Denial,” which brought together scholars from wildly divergent disciplines — from genocide studies to political science to philosophy — to explore the idea that “denialism” may be a sufficiently coherent phenomenon underlying the willful disregard of factual evidence by ideologically motivated groups or individuals.
  • the Oxford defines a denialist as “a person who refuses to admit the truth of a concept or proposition that is supported by the majority of scientific or historical evidence,” which represents a whole different level of cognitive bias or rationalization. Think of it as bias on steroids.
  • First, as a scientist: it’s just not about the facts, indeed — as Brendan showed data in hand during his presentation — insisting on facts may have counterproductive effects, leading the denialist to double down on his belief.
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  • if I think that simply explaining the facts to the other side is going to change their mind, then I’m in for a rude awakening.
  • As a philosopher, I found to be somewhat more disturbing the idea that denialism isn’t even about critical thinking.
  • what the large variety of denialisms have in common is a very strong, overwhelming, ideological commitment that helps define the denialist identity in a core manner. This commitment can be religious, ethnical or political in nature, but in all cases it fundamentally shapes the personal identity of the people involved, thus generating a strong emotional attachment, as well as an equally strong emotional backlash against critics.
  • To begin with, of course, they think of themselves as “skeptics,” thus attempting to appropriate a word with a venerable philosophical pedigree and which is supposed to indicate a cautiously rational approach to a given problem. As David Hume put it, a wise person (i.e., a proper skeptic) will proportion her beliefs to the evidence. But there is nothing of the Humean attitude in people who are “skeptical” of evolution, climate change, vaccines, and so forth.
  • Denialists have even begun to appropriate the technical language of informal logic: when told that a majority of climate scientists agree that the planet is warming up, they are all too happy to yell “argument from authority!” When they are told that they should distrust statements coming from the oil industry and from “think tanks” in their pockets they retort “genetic fallacy!” And so on. Never mind that informal fallacies are such only against certain background information, and that it is eminently sensible and rational to trust certain authorities (at the least provisionally), as well as to be suspicious of large organizations with deep pockets and an obvious degree of self-interest.
  • What commonalities can we uncover across instances of denialism that may allow us to tackle the problem beyond facts and elementary logic?
  • the evidence from the literature is overwhelming that denialists have learned to use the vocabulary of critical thinking against their opponents.
  • Another important issue to understand is that denialists exploit the inherently tentative nature of scientific or historical findings to seek refuge for their doctrines.
  • . Scientists have been wrong before, and doubtlessly will be again in the future, many times. But the issue is rather one of where it is most rational to place your bets as a Bayesian updater: with the scientific community or with Faux News?
  • Science should be portrayed as a human story of failure and discovery, not as a body of barely comprehensible facts arrived at by epistemic priests.
  • Is there anything that can be done in this respect? I personally like the idea of teaching “science appreciation” classes in high school and college [2], as opposed to more traditional (usually rather boring, both as a student and as a teacher) science instruction
  • Denialists also exploit the media’s self imposed “balanced” approach to presenting facts, which leads to the false impression that there really are two approximately equal sides to every debate.
  • This is a rather recent phenomenon, and it is likely the result of a number of factors affecting the media industry. One, of course, is the onset of the 24-hr media cycle, with its pernicious reliance on punditry. Another is the increasing blurring of the once rather sharp line between reporting and editorializing.
  • The problem with the media is of course made far worse by the ongoing crisis in contemporary journalism, with newspapers, magazines and even television channels constantly facing an uncertain future of revenues,
  • he push back against denialism, in all its varied incarnations, is likely to be more successful if we shift the focus from persuading individual members of the public to making political and media elites accountable.
  • This is a major result coming out of Brendan’s research. He showed data set after data set demonstrating two fundamental things: first, large sections of the general public do not respond to the presentation of even highly compelling facts, indeed — as mentioned above — are actually more likely to entrench further into their positions.
  • Second, whenever one can put pressure on either politicians or the media, they do change their tune, becoming more reasonable and presenting things in a truly (as opposed to artificially) balanced way.
  • Third, and most crucially, there is plenty of evidence from political science studies that the public does quickly rally behind a unified political leadership. This, as much as it is hard to fathom now, has happened a number of times even in somewhat recent times
  • when leaders really do lead, the people follow. It’s just that of late the extreme partisan bickering in Washington has made the two major parties entirely incapable of working together on the common ground that they have demonstrably had in the past.
  • Another thing we can do about denialism: we should learn from the detailed study of successful cases and see what worked and how it can be applied to other instances
  • Yet another thing we can do: seek allies. In the case of evolution denial — for which I have the most first-hand experience — it has been increasingly obvious to me that it is utterly counterproductive for a strident atheist like Dawkins (or even a relatively good humored one like yours truly) to engage creationists directly. It is far more effective when we have clergy (Barry Lynn of Americans United for the Separation of Church and State [6] comes to mind) and religious scientists
  • Make no mistake about it: denialism in its various forms is a pernicious social phenomenon, with potentially catastrophic consequences for our society. It requires a rallying call for all serious public intellectuals, academic or not, who have the expertise and the stamina to join the fray to make this an even marginally better world for us all. It’s most definitely worth the fight.
aliciathompson1

Macy's, Univision, and NBC Dropping Trump Over Mexican Comments Could Cost Him - The At... - 0 views

  • Donald Trump’s run for the presidency is premised on one fact above all: He’s a fabulously successful businessman. And yet, paradoxically, running for president may be the most disastrous business decision he’s made—or, at the very least, his worst in a while.
  • It’s unclear what the value of Trump’s NBC, Macy’s, and Serta deals were, but it’s a safe bet that altogether they’re a bigger deal to Trump than they are to any one of those corporations
  • How did Trump get from $250 million, the upper end of O’Brien’s range, in 2005 to $9 billion today? It’s been 10 years, and an already-wealthy person can make a lot of money in 10 years, but that decade also included a massive economic slump, a crisis in real estate (putatively Trump’s core business), and a 2009 declaration of Chapter 11 bankruptcy by his casino group. One way to get to the $9 billion figure is that, as Jordan Weissmann highlighted, Trump estimates that the value of his name alone is worth more than a third of tha
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  • The thing about Trump’s comments about Mexicans and his clumsy attempts at clean-up since is that they don’t just hurt him directly, in the loss of earnings from the Miss USA contest or any of those ties and shirts; they also degrade the value of his brand and reputation. So even if you take Trump’s self-valuation at face value, you can see how his comments about Mexican immigrants have been costly.
  • And now he has validated his own point in an unfortunate way: By any measure, the campaign has been terrible for his brand.
nataliedepaulo1

Trump's Anti-Science Campaign - The New Yorker - 0 views

  • Over the past few months, we’ve seen Donald Trump lower, again and again, the bar for political discourse. All the while, though, he’s been lowering the scientific bar, too. In May, for instance, while speaking to an audience of West Virginia coal miners, Trump complained that regulations designed to protect the ozone layer had compromised the quality of his hair spray. Those regulations, he continued, were misguided, because hair spray is used mainly indoors, and so can have no effect on the atmosphere outside. No wonder Hillary Clinton felt the need to include, in her nomination speech, the phrase “I believe in science.”
  • The positions taken by Trump and the Republicans have consequences beyond science itself. Essentially, they are betting that, for a significant portion of the country, empirical reality doesn’t matter; they are also signalling that empirical reasoning won’t be the basis of their public policy. Today, of course, we face global challenges such as climate change, which are more urgent than any we have ever confronted. These challenges require a sober assessment of reality. When science is distorted on the campaign trail, it may produce applause lines. But if those distortions lead to bad public policy, the quality of people’s lives will suffer.
Javier E

Minsky's moment | The Economist - 0 views

  • Minsky started with an explanation of investment. It is, in essence, an exchange of money today for money tomorrow. A firm pays now for the construction of a factory; profits from running the facility will, all going well, translate into money for it in coming years.
  • Put crudely, money today can come from one of two sources: the firm’s own cash or that of others (for example, if the firm borrows from a bank). The balance between the two is the key question for the financial system.
  • Minsky distinguished between three kinds of financing. The first, which he called “hedge financing”, is the safest: firms rely on their future cashflow to repay all their borrowings. For this to work, they need to have very limited borrowings and healthy profits. The second, speculative financing, is a bit riskier: firms rely on their cashflow to repay the interest on their borrowings but must roll over their debt to repay the principal. This should be manageable as long as the economy functions smoothly, but a downturn could cause distress. The third, Ponzi financing, is the most dangerous. Cashflow covers neither principal nor interest; firms are betting only that the underlying asset will appreciate by enough to cover their liabilities. If that fails to happen, they will be left exposed.
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  • Economies dominated by hedge financing—that is, those with strong cashflows and low debt levels—are the most stable. When speculative and, especially, Ponzi financing come to the fore, financial systems are more vulnerable. If asset values start to fall, either because of monetary tightening or some external shock, the most overstretched firms will be forced to sell their positions. This further undermines asset values, causing pain for even more firms. They could avoid this trouble by restricting themselves to hedge financing. But over time, particularly when the economy is in fine fettle, the temptation to take on debt is irresistible. When growth looks assured, why not borrow more? Banks add to the dynamic, lowering their credit standards the longer booms last. If defaults are minimal, why not lend more? Minsky’s conclusion was unsettling. Economic stability breeds instability. Periods of prosperity give way to financial fragility.
  • Minsky’s insight might sound obvious. Of course, debt and finance matter. But for decades the study of economics paid little heed to the former and relegated the latter to a sub-discipline, not an essential element in broader theories.
  • Minsky was a maverick. He challenged both the Keynesian backbone of macroeconomics and a prevailing belief in efficient markets.
  • t Messrs Hicks and Hansen largely left the financial sector out of the picture, even though Keynes was keenly aware of the importance of markets. To Minsky, this was an “unfair and naive representation of Keynes’s subtle and sophisticated views”. Minsky’s financial-instability hypothesis helped fill in the holes.
  • His challenge to the prophets of efficient markets was even more acute. Eugene Fama and Robert Lucas, among others, persuaded most of academia and policymaking circles that markets tended towards equilibrium as people digested all available information. The structure of the financial system was treated as almost irrelevant
  • In recent years, behavioural economists have attacked one plank of efficient-market theory: people, far from being rational actors who maximise their gains, are often clueless about what they want and make the wrong decisions.
  • But years earlier Minsky had attacked another: deep-seated forces in financial systems propel them towards trouble, he argued, with stability only ever a fleeting illusion.
  • Investors were faster than professors to latch onto his views. More than anyone else it was Paul McCulley of PIMCO, a fund-management group, who popularised his ideas. He coined the term “Minsky moment” to describe a situation when debt levels reach breaking-point and asset prices across the board start plunging. Mr McCulley initially used the term in explaining the Russian financial crisis of 1998. Since the global turmoil of 2008, it has become ubiquitous. For investment analysts and fund managers, a “Minsky moment” is now virtually synonymous with a financial crisis.
  • it would be a stretch to expect the financial-instability hypothesis to become a new foundation for economic theory. Minsky’s legacy has more to do with focusing on the right things than correctly structuring quantifiable models. It is enough to observe that debt and financial instability, his main preoccupations, have become some of the principal topics of inquiry for economists today
  • As Mr Krugman has quipped: “We are all Minskyites now.”
sissij

Tesla Passes Ford in Market Value as Investors Bet on the Future - The New York Times - 0 views

  • But there is one exception. Tesla, the electric-vehicle upstart, continues to surge.
  • “Investors want something that is going to go up in orders of magnitude in six months to six years, and Tesla is that story,” said Karl Brauer, a senior editor at Kelley Blue Book. “Nobody thinks Ford or G.M. is going to do that.”
  • Tesla’s chief executive, Elon Musk, has shattered the conventional wisdom that automakers should be viewed as a stable, reliable investment. Instead, he promotes his California-based company as a dynamic vehicle for growth, despite the risks and challenges ahead of it.
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  • But neither automaker has convinced Wall Street that it has shed its boom-or-bust reputation tied to broader economic cycles, or is at the forefront of new technology being developed for self-driving vehicles and electric cars.
  • “It’s almost like Tesla is positioned in people’s minds as an energy storage company that happens to put most of its batteries on wheels,” said Andrew Stewart, chief investment officer at Exchange Capital Management, an investment firm in Ann Arbor, Mich.
  • While Tesla may enjoy the favor of investors, it still faces some daunting hurdles to reach its goals.
  •  
    In my research on Tesla, I found it very interesting that Tesla never has advertisement spreading out like Ford, Motor or other motor companies do. Yet, it is very popular and well-known. How does Tesla manage to be known by the public if they don't have any advertisement and their target costumers are the elites? One of the reason I found online about its propaganda strategy is its skill on giving stock holder confidence. Thus their stock price is always positive and healthy. By generating new ideas, Tesla is able to stay on the headline of the newspaper. When I saw this news, my first reaction is that it's Tesla again and give me a very positive image on the future of Tesla. This new way of propaganda is directly related to the new form of economics in the society so I found it very interesting. --Sissi (4/4/2017)
Javier E

Do You Know What You Don't Know? - Art Markman - Harvard Business Review - 0 views

  • You probably don't know as much as you think you do. When put to the test, most people find they can't explain the workings of everyday things they think they understand.
  • Find an object you use daily (a zipper, a toilet, a stereo speaker) and try to describe the particulars of how it works. You're likely to discover unexpected gaps in your knowledge. In psychology, we call this cognitive barrier the illusion of explanatory depth. It means you think you fully understand something that you actually don't.
  • We see this every day in buzz words. Though we often use these words, their meanings are usually unclear. They mask gaps in our knowledge, serving as placeholders that gloss concepts we don't fully understand.
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  • an upsetting instance of knowledge gaps in the last decade was the profound misunderstanding of complex financial products that contributed to the market collapse of 2007. Investment banks were unable to protect themselves from exposure to these products, because only a few people (either buyers or sellers) understood exactly what was being sold. Those individuals who did comprehend these product structures ultimately made huge bets against the market using credit-default swaps. The willingness of companies like AIG to sell large quantities of credit-default swaps reflected a gap in their knowledge about the riskiness of products they were insuring.
  • To discover the things you can't explain, take a lesson from teachers. When you instruct someone else, you have to fill the gaps in your own knowledge
  • Explain concepts to yourself as you learn them. Get in the habit of self-teaching. Your explanations will reveal your own knowledge gaps and identify words and concepts whose meanings aren't clear.
  • Engage others in collaborative learning. Help identify the knowledge gaps of the people around you. Ask them to explain difficult concepts, even if you think everyone understands them
  • When you do uncover these gaps, treat them as learning opportunities, not signs of weakness.
Duncan H

Mitt Romney's Problem Speaking About Money - NYTimes.com - 0 views

  • Why is someone who is so good at making money so bad at talking about it?Mitt Romney is not the first presidential candidate who’s had trouble communicating with working-class voters: John Kerry famously enjoyed wind-surfing, and George Bush blamed a poor showing in a straw poll on the fact that many of his supporters were “at their daughter’s coming out party.”Veritable battalions of Kennedys and Roosevelts have dealt with the economic and cultural gaps between themselves and the voters over the years without much difficulty. Not so Barack Obama, whose attempt to commiserate with Iowa farmers in 2007 about crop prices by mentioning the cost of arugula at Whole Foods fell flat.
  • Romney’s reference last week to the fact that his wife “drives a couple of Cadillacs, actually” is not grounds in itself for a voter to oppose his candidacy. Neither was the $10,000 bet he offered to Rick Perry during a debate in December or the time he told a group of the unemployed in Florida that he was “also unemployed.”But his penchant for awkward references to his own wealth has underscored the suspicion that many voters have about his ability to understand their economic problems. His opponents in both parties  are gleefully highlighting these moments as a way to drive a wedge between Romney and the working class voters who have become an increasingly important part of the Republican Party base.
  • The current economic circumstances have undoubtedly exacerbated the problem for Romney. Had Obama initially sought the presidency during a primary season dominated by concerns about the domestic economy rather than war in Iraq, his explanation that small town voters “get bitter, they cling to guns or religion or antipathy to people who aren’t like them” might have created an opportunity for Hillary Clinton or even the populist message of John Edwards.
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  • But Obama’s early opposition to the Iraq war gave him a political firewall that protected him throughout that primary campaign, while Romney has no such policy safe harbor to safeguard him from an intramural backlash.
  • Romney and Obama share a lack of natural affinity for this key group of swing voters, but it is Romney who needs to figure out some way of addressing this shortcoming if he wants to make it to the White House. It’s Romney’s misfortune that the voters’ prioritization of economic issues, his own privileged upbringing and his lack of connection with his party’s base on other core issues put him in a much more precarious position than candidate Obama ever reached.
  • By the time the 2008 general election rolled around, Obama had bolstered his outreach to these voters by recruiting the blue-collar avatar Joe Biden as his running mate. Should Romney win the Republican nomination this year, his advisers will almost certainly be tempted by the working-class credentials that a proletarian like New Jersey Governor Chris Christie or Florida Senator Marco Rubio would bring to the ticket.
  • Of more immediate concern to Team Romney should be how their candidate can overcome his habit of economic tone-deafness before Rick Santorum steals away enough working-class and culturally conservative voters to throw the Republican primary into complete and utter turmoil.
  • The curious thing about Romney’s verbal missteps is how limited they are to this very specific area of public policy. He is usually quite articulate when talking about foreign affairs and national security. Despite his complicated history on social and cultural matters like health care and abortion, his explanations are usually both coherent and comprehensible, even to those who oppose his positions. It’s only when he begins talking about economic issues – his biographical strength – that he seems to get clumsy.
  • The second possibility would be for him to outline a series of proposals specifically targeted at the needs of working-class and poor Americans, not only to control the damage from his gaffes but also to underscore the conservative premise that a right-leaning agenda will create opportunities for those on the lower rungs of the economic ladder. But while that approach might help Romney in a broader philosophical conversation, it’s unlikely to offer him much protection from the attacks and ridicule that his unforced errors will continue to bring him.
  • The question is why Romney hasn’t embraced a third alternative – admitting the obvious and then explaining why he gets so tongue-tied when the conversation turns to money. Romney’s upbringing and religious faith suggest a sense of obligation to the less fortunate and an unspoken understanding that it isn’t appropriate to call attention to one’s financial success.It wouldn’t be that hard for him to say something like:I was taught not to brag and boast and think I’m better than other people because of the successes I’ve had, so occasionally I’m going to say things that sound awkward. It’s because I’d rather talk about what it takes to get America back to work.
  •  
    Do you think the solution Douthat proposes would work?
Javier E

George Packer: Is Amazon Bad for Books? : The New Yorker - 0 views

  • Amazon is a global superstore, like Walmart. It’s also a hardware manufacturer, like Apple, and a utility, like Con Edison, and a video distributor, like Netflix, and a book publisher, like Random House, and a production studio, like Paramount, and a literary magazine, like The Paris Review, and a grocery deliverer, like FreshDirect, and someday it might be a package service, like U.P.S. Its founder and chief executive, Jeff Bezos, also owns a major newspaper, the Washington Post. All these streams and tributaries make Amazon something radically new in the history of American business
  • Amazon is not just the “Everything Store,” to quote the title of Brad Stone’s rich chronicle of Bezos and his company; it’s more like the Everything. What remains constant is ambition, and the search for new things to be ambitious about.
  • It wasn’t a love of books that led him to start an online bookstore. “It was totally based on the property of books as a product,” Shel Kaphan, Bezos’s former deputy, says. Books are easy to ship and hard to break, and there was a major distribution warehouse in Oregon. Crucially, there are far too many books, in and out of print, to sell even a fraction of them at a physical store. The vast selection made possible by the Internet gave Amazon its initial advantage, and a wedge into selling everything else.
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  • it’s impossible to know for sure, but, according to one publisher’s estimate, book sales in the U.S. now make up no more than seven per cent of the company’s roughly seventy-five billion dollars in annual revenue.
  • A monopoly is dangerous because it concentrates so much economic power, but in the book business the prospect of a single owner of both the means of production and the modes of distribution is especially worrisome: it would give Amazon more control over the exchange of ideas than any company in U.S. history.
  • “The key to understanding Amazon is the hiring process,” one former employee said. “You’re not hired to do a particular job—you’re hired to be an Amazonian. Lots of managers had to take the Myers-Briggs personality tests. Eighty per cent of them came in two or three similar categories, and Bezos is the same: introverted, detail-oriented, engineer-type personality. Not musicians, designers, salesmen. The vast majority fall within the same personality type—people who graduate at the top of their class at M.I.T. and have no idea what to say to a woman in a bar.”
  • According to Marcus, Amazon executives considered publishing people “antediluvian losers with rotary phones and inventory systems designed in 1968 and warehouses full of crap.” Publishers kept no data on customers, making their bets on books a matter of instinct rather than metrics. They were full of inefficiences, starting with overpriced Manhattan offices.
  • For a smaller house, Amazon’s total discount can go as high as sixty per cent, which cuts deeply into already slim profit margins. Because Amazon manages its inventory so well, it often buys books from small publishers with the understanding that it can’t return them, for an even deeper discount
  • According to one insider, around 2008—when the company was selling far more than books, and was making twenty billion dollars a year in revenue, more than the combined sales of all other American bookstores—Amazon began thinking of content as central to its business. Authors started to be considered among the company’s most important customers. By then, Amazon had lost much of the market in selling music and videos to Apple and Netflix, and its relations with publishers were deteriorating
  • In its drive for profitability, Amazon did not raise retail prices; it simply squeezed its suppliers harder, much as Walmart had done with manufacturers. Amazon demanded ever-larger co-op fees and better shipping terms; publishers knew that they would stop being favored by the site’s recommendation algorithms if they didn’t comply. Eventually, they all did.
  • Brad Stone describes one campaign to pressure the most vulnerable publishers for better terms: internally, it was known as the Gazelle Project, after Bezos suggested “that Amazon should approach these small publishers the way a cheetah would pursue a sickly gazelle.”
  • ithout dropping co-op fees entirely, Amazon simplified its system: publishers were asked to hand over a percentage of their previous year’s sales on the site, as “marketing development funds.”
  • The figure keeps rising, though less for the giant pachyderms than for the sickly gazelles. According to the marketing executive, the larger houses, which used to pay two or three per cent of their net sales through Amazon, now relinquish five to seven per cent of gross sales, pushing Amazon’s percentage discount on books into the mid-fifties. Random House currently gives Amazon an effective discount of around fifty-three per cent.
  • In December, 1999, at the height of the dot-com mania, Time named Bezos its Person of the Year. “Amazon isn’t about technology or even commerce,” the breathless cover article announced. “Amazon is, like every other site on the Web, a content play.” Yet this was the moment, Marcus said, when “content” people were “on the way out.”
  • By 2010, Amazon controlled ninety per cent of the market in digital books—a dominance that almost no company, in any industry, could claim. Its prohibitively low prices warded off competition
  • In 2004, he set up a lab in Silicon Valley that would build Amazon’s first piece of consumer hardware: a device for reading digital books. According to Stone’s book, Bezos told the executive running the project, “Proceed as if your goal is to put everyone selling physical books out of a job.”
  • Lately, digital titles have levelled off at about thirty per cent of book sales.
  • The literary agent Andrew Wylie (whose firm represents me) says, “What Bezos wants is to drag the retail price down as low as he can get it—a dollar-ninety-nine, even ninety-nine cents. That’s the Apple play—‘What we want is traffic through our device, and we’ll do anything to get there.’ ” If customers grew used to paying just a few dollars for an e-book, how long before publishers would have to slash the cover price of all their titles?
  • As Apple and the publishers see it, the ruling ignored the context of the case: when the key events occurred, Amazon effectively had a monopoly in digital books and was selling them so cheaply that it resembled predatory pricing—a barrier to entry for potential competitors. Since then, Amazon’s share of the e-book market has dropped, levelling off at about sixty-five per cent, with the rest going largely to Apple and to Barnes & Noble, which sells the Nook e-reader. In other words, before the feds stepped in, the agency model introduced competition to the market
  • But the court’s decision reflected a trend in legal thinking among liberals and conservatives alike, going back to the seventies, that looks at antitrust cases from the perspective of consumers, not producers: what matters is lowering prices, even if that goal comes at the expense of competition. Barry Lynn, a market-policy expert at the New America Foundation, said, “It’s one of the main factors that’s led to massive consolidation.”
  • Publishers sometimes pass on this cost to authors, by redefining royalties as a percentage of the publisher’s receipts, not of the book’s list price. Recently, publishers say, Amazon began demanding an additional payment, amounting to approximately one per cent of net sales
  • brick-and-mortar retailers employ forty-seven people for every ten million dollars in revenue earned; Amazon employs fourteen.
  • Since the arrival of the Kindle, the tension between Amazon and the publishers has become an open battle. The conflict reflects not only business antagonism amid technological change but a division between the two coasts, with different cultural styles and a philosophical disagreement about what techies call “disruption.”
  • Bezos told Charlie Rose, “Amazon is not happening to bookselling. The future is happening to bookselling.”
  • n Grandinetti’s view, the Kindle “has helped the book business make a more orderly transition to a mixed print and digital world than perhaps any other medium.” Compared with people who work in music, movies, and newspapers, he said, authors are well positioned to thrive. The old print world of scarcity—with a limited number of publishers and editors selecting which manuscripts to publish, and a limited number of bookstores selecting which titles to carry—is yielding to a world of digital abundance. Grandinetti told me that, in these new circumstances, a publisher’s job “is to build a megaphone.”
  • it offers an extremely popular self-publishing platform. Authors become Amazon partners, earning up to seventy per cent in royalties, as opposed to the fifteen per cent that authors typically make on hardcovers. Bezos touts the biggest successes, such as Theresa Ragan, whose self-published thrillers and romances have been downloaded hundreds of thousands of times. But one survey found that half of all self-published authors make less than five hundred dollars a year.
  • The business term for all this clear-cutting is “disintermediation”: the elimination of the “gatekeepers,” as Bezos calls the professionals who get in the customer’s way. There’s a populist inflection to Amazon’s propaganda, an argument against élitist institutions and for “the democratization of the means of production”—a common line of thought in the West Coast tech world
  • “Book publishing is a very human business, and Amazon is driven by algorithms and scale,” Sargent told me. When a house gets behind a new book, “well over two hundred people are pushing your book all over the place, handing it to people, talking about it. A mass of humans, all in one place, generating tremendous energy—that’s the magic potion of publishing. . . . That’s pretty hard to replicate in Amazon’s publishing world, where they have hundreds of thousands of titles.”
  • By producing its own original work, Amazon can sell more devices and sign up more Prime members—a major source of revenue. While the company was building the
  • Like the publishing venture, Amazon Studios set out to make the old “gatekeepers”—in this case, Hollywood agents and executives—obsolete. “We let the data drive what to put in front of customers,” Carr told the Wall Street Journal. “We don’t have tastemakers deciding what our customers should read, listen to, and watch.”
  • book publishers have been consolidating for several decades, under the ownership of media conglomerates like News Corporation, which squeeze them for profits, or holding companies such as Rivergroup, which strip them to service debt. The effect of all this corporatization, as with the replacement of independent booksellers by superstores, has been to privilege the blockbuster.
  • The combination of ceaseless innovation and low-wage drudgery makes Amazon the epitome of a successful New Economy company. It’s hiring as fast as it can—nearly thirty thousand employees last year.
  • the long-term outlook is discouraging. This is partly because Americans don’t read as many books as they used to—they are too busy doing other things with their devices—but also because of the relentless downward pressure on prices that Amazon enforces.
  • he digital market is awash with millions of barely edited titles, most of it dreck, while r
  • Amazon believes that its approach encourages ever more people to tell their stories to ever more people, and turns writers into entrepreneurs; the price per unit might be cheap, but the higher number of units sold, and the accompanying royalties, will make authors wealthier
  • In Friedman’s view, selling digital books at low prices will democratize reading: “What do you want as an author—to sell books to as few people as possible for as much as possible, or for as little as possible to as many readers as possible?”
  • The real talent, the people who are writers because they happen to be really good at writing—they aren’t going to be able to afford to do it.”
  • Seven-figure bidding wars still break out over potential blockbusters, even though these battles often turn out to be follies. The quest for publishing profits in an economy of scarcity drives the money toward a few big books. So does the gradual disappearance of book reviewers and knowledgeable booksellers, whose enthusiasm might have rescued a book from drowning in obscurity. When consumers are overwhelmed with choices, some experts argue, they all tend to buy the same well-known thing.
  • These trends point toward what the literary agent called “the rich getting richer, the poor getting poorer.” A few brand names at the top, a mass of unwashed titles down below, the middle hollowed out: the book business in the age of Amazon mirrors the widening inequality of the broader economy.
  • “If they did, in my opinion they would save the industry. They’d lose thirty per cent of their sales, but they would have an additional thirty per cent for every copy they sold, because they’d be selling directly to consumers. The industry thinks of itself as Procter & Gamble*. What gave publishers the idea that this was some big goddam business? It’s not—it’s a tiny little business, selling to a bunch of odd people who read.”
  • Bezos is right: gatekeepers are inherently élitist, and some of them have been weakened, in no small part, because of their complacency and short-term thinking. But gatekeepers are also barriers against the complete commercialization of ideas, allowing new talent the time to develop and learn to tell difficult truths. When the last gatekeeper but one is gone, will Amazon care whether a book is any good? ♦
Javier E

Rise in Scientific Journal Retractions Prompts Calls for Reform - NYTimes.com - 1 views

  • before long they reached a troubling conclusion: not only that retractions were rising at an alarming rate, but that retractions were just a manifestation of a much more profound problem — “a symptom of a dysfunctional scientific climate,” as Dr. Fang put it.
  • he feared that science had turned into a winner-take-all game with perverse incentives that lead scientists to cut corners and, in some cases, commit acts of misconduct.
  • Members of the committee agreed with their assessment. “I think this is really coming to a head,” said Dr. Roberta B. Ness, dean of the University of Texas School of Public Health. And Dr. David Korn of Harvard Medical School agreed that “there are problems all through the system.”
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  • science has changed in some worrying ways in recent decades — especially biomedical research, which consumes a larger and larger share of government science spending.
  • the journal Nature reported that published retractions had increased tenfold over the past decade, while the number of published papers had increased by just 44 percent.
  • because journals are now online, bad papers are simply reaching a wider audience, making it more likely that errors will be spotted.
  • The National Institutes of Health accepts a much lower percentage of grant applications today than in earlier decades. At the same time, many universities expect scientists to draw an increasing part of their salaries from grants, and these pressures have influenced how scientists are promoted.
  • Dr. Fang and Dr. Casadevall looked at the rate of retractions in 17 journals from 2001 to 2010 and compared it with the journals’ “impact factor,” a score based on how often their papers are cited by scientists. The higher a journal’s impact factor, the two editors found, the higher its retraction rate.
  • Each year, every laboratory produces a new crop of Ph.D.’s, who must compete for a small number of jobs, and the competition is getting fiercer. In 1973, more than half of biologists had a tenure-track job within six years of getting a Ph.D. By 2006 the figure was down to 15 percent.
  • Yet labs continue to have an incentive to take on lots of graduate students to produce more research. “I refer to it as a pyramid scheme,
  • In such an environment, a high-profile paper can mean the difference between a career in science or leaving the field. “It’s becoming the price of admission,”
  • To survive professionally, scientists feel the need to publish as many papers as possible, and to get them into high-profile journals. And sometimes they cut corners or even commit misconduct to get ther
  • “What people do is they count papers, and they look at the prestige of the journal in which the research is published, and they see how may grant dollars scientists have, and if they don’t have funding, they don’t get promoted,” Dr. Fang said. “It’s not about the quality of the research.”
  • Dr. Ness likens scientists today to small-business owners, rather than people trying to satisfy their curiosity about how the world works. “You’re marketing and selling to other scientists,” she said. “To the degree you can market and sell your products better, you’re creating the revenue stream to fund your enterprise.”
  • Universities want to attract successful scientists, and so they have erected a glut of science buildings, Dr. Stephan said. Some universities have gone into debt, betting that the flow of grant money will eventually pay off the loans.
  • “You can’t afford to fail, to have your hypothesis disproven,” Dr. Fang said. “It’s a small minority of scientists who engage in frank misconduct. It’s a much more insidious thing that you feel compelled to put the best face on everything.”
  • , Dr. Stephan points out that a number of countries — including China, South Korea and Turkey — now offer cash rewards to scientists who get papers into high-profile journals.
  • To change the system, Dr. Fang and Dr. Casadevall say, start by giving graduate students a better understanding of science’s ground rules — what Dr. Casadevall calls “the science of how you know what you know.”
  • They would also move away from the winner-take-all system, in which grants are concentrated among a small fraction of scientists. One way to do that may be to put a cap on the grants any one lab can receive.
  • Such a shift would require scientists to surrender some of their most cherished practices — the priority rule, for example, which gives all the credit for a scientific discovery to whoever publishes results first.
  • To ease such cutthroat competition, the two editors would also change the rules for scientific prizes and would have universities take collaboration into account when they decide on promotions.
  • Even scientists who are sympathetic to the idea of fundamental change are skeptical that it will happen any time soon. “I don’t think they have much chance of changing what they’re talking about,” said Dr. Korn, of Harvard.
  • “When our generation goes away, where is the new generation going to be?” he asked. “All the scientists I know are so anxious about their funding that they don’t make inspiring role models. I heard it from my own kids, who went into art and music respectively. They said, ‘You know, we see you, and you don’t look very happy.’ ”
Ellie McGinnis

Social Connection Makes a Better Brain - Emily Esfahani Smith - The Atlantic - 0 views

  • Recent trends show that people increasingly value material goods over relationships—but neuroscience and evolution say this goes against our nature.
  • Do you prioritize your career or your relationships?
  • “Man is by nature a social animal … Anyone who either cannot lead the common life or is so self-sufficient as not to need to, and therefore does not partake of society, is either a beast or a god.”
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  • Just as human beings have a basic need for food and shelter, we also have a basic need to belong to a group and form relationships.
  • Lieberman sees the brain as the center of the social self. Its primary purpose is social thinking.
  • Every time we are not engaged in an active task—like when we take a break between two math problems—the brain falls into a neural configuration called the “default network.” When you have down time, even if it’s just for a second, this brain system comes on automatically.
  • “The default network directs us to think about other people’s minds—their thoughts, feelings, and goals.”
  • “Evolution has made a bet,” Lieberman tells me, “that the best thing for our brain to do in any spare moment is to get ready for what comes next in social terms.”
  • When economists put a price tag on our relationships, we get a concrete sense of just how valuable our social connections are—and how devastating it is when they are broken.
  • If you have a friend that you see on most days, it’s like earning $100,000 more each year.
  • To the brain, social pain feels a lot like physical pain—a broken heart can feel like a broken leg, as Lieberman puts it in his book.
  • But over the last fifty years, while society has been growing more and more prosperous and individualistic, our social connections have been dissolving.
  • Over the same period of time that social isolation has increased, our levels of happiness have gone down, while rates of suicide and depression have multiplied. 
  • Across the board, people are increasingly sacrificing their personal relationships for the pursuit of wealth.
Javier E

Trump-ward, Christian Soldiers? - The New York Times - 0 views

  • Let me get this straight. If I want the admiration and blessings of the most flamboyant, judgmental Christians in America, I should marry three times, do a queasy-making amount of sexual boasting, verbally degrade women, talk trash about pretty much everyone else while I’m at it, encourage gamblers to hemorrhage their savings in casinos bearing my name and crow incessantly about how much money I’ve amassed?
  • No matter. The holy rollers are smiling upon the high roller. And they’re proving, yet again, how selective and incoherent the religiosity of many in the party’s God squad is.
  • What’s different and fascinating about the Trump worship is that he doesn’t even try that hard for a righteous facade — for Potemkin piety. Sure, he speaks of enthusiastic churchgoing, and he’s careful to curse Planned Parenthood and to insist that matrimony be reserved for heterosexuals as demonstrably inept at it as he is
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  • But beyond that? He just about runs the table on the seven deadly sins. He personifies greed, embodies pride, radiates lust. Wrath is covered by his anti-immigrant, anti-“losers” rants, and if we interpret gluttony to include big buildings and not just Big Macs, he’s a glutton through and through. That leaves envy and sloth. I’m betting that he harbors plenty of the former, though I’ll concede that he exhibits none of the latter.
  • there’s no sense in the fact that many of the people who most frequently espouse the Christian spirit then proceed to vilify immigrants, demonize minorities and line up behind a candidate who’s a one-man master class in such misanthropy.
  • From Trump’s Twitter account gushes an endless stream of un-Christian rudeness, and he was at it again on Monday night, retweeting someone else’s denigration of Kelly as a “bimbo.” Shouldn’t he be turning the other cheek?
Javier E

E.D. Hirsch Jr.'s 'Cultural Literacy' in the 21st Century - The Atlantic - 0 views

  • much of this angst can be interpreted as part of a noisy but inexorable endgame: the end of white supremacy. From this vantage point, Americanness and whiteness are fitfully, achingly, but finally becoming delinked—and like it or not, over the course of this generation, Americans are all going to have to learn a new way to be American.
  • What is the story of “us” when “us” is no longer by default “white”? The answer, of course, will depend on how aware Americans are of what they are, of what their culture already (and always) has been.
  • The thing about the list, though, was that it was—by design—heavy on the deeds and words of the “dead white males” who had formed the foundations of American culture but who had by then begun to fall out of academic fashion.
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  • Conservatives thus embraced Hirsch eagerly and breathlessly. He was a stout defender of the patrimony. Liberals eagerly and breathlessly attacked him with equal vigor. He was retrograde, Eurocentric, racist, sexist.
  • Lost in all the crossfire, however, were two facts: First, Hirsch, a lifelong Democrat who considered himself progressive, believed his enterprise to be in service of social justice and equality. Cultural illiteracy, he argued, is most common among the poor and power-illiterate, and compounds both their poverty and powerlessness. Second: He was right.
  • A generation of hindsight now enables Americans to see that it is indeed necessary for a nation as far-flung and entropic as the United States, one where rising economic inequality begets worsening civic inequality, to cultivate continuously a shared cultural core. A vocabulary. A set of shared referents and symbols.
  • So, first of all, Americans do need a list. But second, it should not be Hirsch’s list. And third, it should not made the way he made his. In the balance of this essay, I want to unpack and explain each of those three statements.
  • If you take the time to read the book attached to Hirsch’s appendix, you’ll find a rather effective argument about the nature of background knowledge and public culture. Literacy is not just a matter of decoding the strings of letters that make up words or the meaning of each word in sequence. It is a matter of decoding context: the surrounding matrix of things referred to in the text and things implied by it
  • That means understanding what’s being said in public, in the media, in colloquial conversation. It means understanding what’s not being said. Literacy in the culture confers power, or at least access to power. Illiteracy, whether willful or unwitting, creates isolation from power.
  • his point about background knowledge and the content of shared public culture extends well beyond schoolbooks. They are applicable to the “texts” of everyday life, in commercial culture, in sports talk, in religious language, in politics. In all cases, people become literate in patterns—“schema” is the academic word Hirsch uses. They come to recognize bundles of concept and connotation like “Party of Lincoln.” They perceive those patterns of meaning the same way a chess master reads an in-game chessboard or the way a great baseball manager reads an at bat. And in all cases, pattern recognition requires literacy in particulars.
  • Lots and lots of particulars. This isn’t, or at least shouldn’t be, an ideologically controversial point. After all, parents on both left and right have come to accept recent research that shows that the more spoken words an infant or toddler hears, the more rapidly she will learn and advance in school. Volume and variety matter. And what is true about the vocabulary of spoken or written English is also true, one fractal scale up, about the vocabulary of American culture.
  • those who demonized Hirsch as a right-winger missed the point. Just because an endeavor requires fluency in the past does not make it worshipful of tradition or hostile to change.
  • radicalism is made more powerful when garbed in traditionalism. As Hirsch put it: “To be conservative in the means of communication is the road to effectiveness in modern life, in whatever direction one wishes to be effective.”
  • Hence, he argued, an education that in the name of progressivism disdains past forms, schema, concepts, figures, and symbols is an education that is in fact anti-progressive and “helps preserve the political and economic status quo.” This is true. And it is made more urgently true by the changes in American demography since Hirsch gave us his list in 1987.
  • If you are an immigrant to the United States—or, if you were born here but are the first in your family to go to college, and thus a socioeconomic new arrival; or, say, a black citizen in Ferguson, Missouri deciding for the first time to participate in a municipal election, and thus a civic neophyte—you have a single overriding objective shared by all immigrants at the moment of arrival: figure out how stuff really gets done here.
  • So, for instance, a statement like “One hundred and fifty years after Appomattox, our house remains deeply divided” assumes that the reader knows that Appomattox is both a place and an event; that the event signified the end of a war; that the war was the Civil War and had begun during the presidency of a man, Abraham Lincoln, who earlier had famously declared that “a house divided against itself cannot stand”; that the divisions then were in large part about slavery; and that the divisions today are over the political, social, and economic legacies of slavery and how or whether we are to respond to those legacies.
  • But why a list, one might ask? Aren’t lists just the very worst form of rote learning and standardized, mechanized education? Well, yes and no.
  • it’s not just newcomers who need greater command of common knowledge. People whose families have been here ten generations are often as ignorant about American traditions, mores, history, and idioms as someone “fresh off the boat.”
  • The more serious challenge, for Americans new and old, is to make a common culture that’s greater than the sum of our increasingly diverse parts. It’s not enough for the United States to be a neutral zone where a million little niches of identity might flourish; in order to make our diversity a true asset, Americans need those niches to be able to share a vocabulary. Americans need to be able to have a broad base of common knowledge so that diversity can be most fully activated.
  • as the pool of potential culture-makers has widened, the modes of culture creation have similarly shifted away from hierarchies and institutions to webs and networks. Wikipedia is the prime embodiment of this reality, both in how the online encyclopedia is crowd-created and how every crowd-created entry contains links to other entries.
  • so any endeavor that makes it easier for those who do not know the memes and themes of American civic life to attain them closes the opportunity gap. It is inherently progressive.
  • since I started writing this essay, dipping into the list has become a game my high-school-age daughter and I play together.
  • I’ll name each of those entries, she’ll describe what she thinks to be its meaning. If she doesn’t know, I’ll explain it and give some back story. If I don’t know, we’ll look it up together. This of course is not a good way for her teachers to teach the main content of American history or English. But it is definitely a good way for us both to supplement what school should be giving her.
  • And however long we end up playing this game, it is already teaching her a meta-lesson about the importance of cultural literacy. Now anytime a reference we’ve discussed comes up in the news or on TV or in dinner conversation, she can claim ownership. Sometimes she does so proudly, sometimes with a knowing look. My bet is that the satisfaction of that ownership, and the value of it, will compound as the years and her education progress.
  • The trouble is, there are also many items on Hirsch’s list that don’t seem particularly necessary for entry into today’s civic and economic mainstream.
  • Which brings us back to why diversity matters. The same diversity that makes it necessary to have and to sustain a unifying cultural core demands that Americans make the core less monochromatic, more inclusive, and continuously relevant for contemporary life
  • it’s worth unpacking the baseline assumption of both Hirsch’s original argument and the battles that erupted around it. The assumption was that multiculturalism sits in polar opposition to a traditional common culture, that the fight between multiculturalism and the common culture was zero-sum.
  • As scholars like Ronald Takaki made clear in books like A Different Mirror, the dichotomy made sense only to the extent that one imagined that nonwhite people had had no part in shaping America until they started speaking up in the second half of the twentieth century.
  • The truth, of course, is that since well before the formation of the United States, the United States has been shaped by nonwhites in its mores, political structures, aesthetics, slang, economic practices, cuisine, dress, song, and sensibility.
  • In its serious forms, multiculturalism never asserted that every racial group should have its own sealed and separate history or that each group’s history was equally salient to the formation of the American experience. It simply claimed that the omni-American story—of diversity and hybridity—was the legitimate American story.
  • as Nathan Glazer has put it (somewhat ruefully), “We are all multiculturalists now.” Americans have come to see—have chosen to see—that multiculturalism is not at odds with a single common culture; it is a single common culture.
  • it is true that in a finite school year, say, with finite class time and books of finite heft, not everything about everyone can be taught. There are necessary trade-offs. But in practice, recognizing the true and longstanding diversity of American identity is not an either-or. Learning about the internment of Japanese Americans does not block out knowledge of D-Day or Midway. It is additive.
  • As more diverse voices attain ever more forms of reach and power we need to re-integrate and reimagine Hirsch’s list of what literate Americans ought to know.
  • To be clear: A 21st-century omni-American approach to cultural literacy is not about crowding out “real” history with the perishable stuff of contemporary life. It’s about drawing lines of descent from the old forms of cultural expression, however formal, to their progeny, however colloquial.
  • Nor is Omni-American cultural literacy about raising the “self-esteem” of the poor, nonwhite, and marginalized. It’s about raising the collective knowledge of all—and recognizing that the wealthy, white, and powerful also have blind spots and swaths of ignorance
  • What, then, would be on your list? It’s not an idle question. It turns out to be the key to rethinking how a list should even get made.
  • the Internet has transformed who makes culture and how. As barriers to culture creation have fallen, orders of magnitude more citizens—amateurs—are able to shape the culture in which we must all be literate. Cat videos and Star Trek fan fiction may not hold up long beside Toni Morrison. But the entry of new creators leads to new claims of right: The right to be recognized. The right to be counted. The right to make the means of recognition and accounting.
  • It is true that lists alone, with no teaching to bring them to life and no expectation that they be connected to a broader education, are somewhere between useless and harmful.
  • This will be a list of nodes and nested networks. It will be a fractal of associations, which reflects far more than a linear list how our brains work and how we learn and create. Hirsch himself nodded to this reality in Cultural Literacy when he described the process he and his colleagues used for collecting items for their list, though he raised it by way of pointing out the danger of infinite regress.
  • His conclusion, appropriate to his times, was that you had to draw boundaries somewhere with the help of experts. My take, appropriate to our times, is that Americans can draw not boundaries so much as circles and linkages, concept sets and pathways among them.
  • Because 5,000 or even 500 items is too daunting a place to start, I ask here only for your top ten. What are ten things every American—newcomer or native born, affluent or indigent—should know? What ten things do you feel are both required knowledge and illuminating gateways to those unenlightened about American life? Here are my entries: Whiteness The Federalist Papers The Almighty Dollar Organized labor Reconstruction Nativism The American Dream The Reagan Revolution DARPA A sucker born every minute
demetriar

Spotify Wants Listeners to Break Down Music Barriers - NYTimes.com - 0 views

  • Their cultural acumen is entirely the product of technology — in particular, being introduced to new artists through Spotify, the world’s largest subscription music-streaming service. According to executives at Spotify, my children offer a peek at the future of music consumption.
  • On average, the company said, the service exposes each of these listeners to one new artist every day. That is making listeners less beholden to music of certain styles and eras. Instead, many of us will try anything, just because we can easily sample it online.
  • Spotify is betting that fixed musical genres will fade away. In its new version rolling out to iPhone users, the company has expanded its effort to program for moods and activities rather than merely certain kinds of musical tastes.
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  • If Spotify is right about our increasing willingness to try new stuff — and critics who follow the pop charts said it may be — the trend could upend how we think about music.
  • Until recently, because of the narrowcasting ethos of terrestrial radio, music was fiercely segregated by genre. In an era less bound by those niches and instead dominated by an online free-for-all, we may discover new artists more quickly than in the past — though, on the other side of the coin, we may also develop less fierce attachments to certain artists, flitting, as my children do, between anything and everything. For better or worse, streaming services may turn us into cultural nomads.
  • By suggesting tracks based on my activities and parts of the day, I found the service exposed me to music out of my comfort zone.
  • Programmers for radio stations also look at these services to decide what to add to their rotations.
  • “These were all songs that were different from what radio was playing, and radio tends to be a homogeneous medium,” Mr. Molanphy said.
  •  
    How online music streaming sorts music into categories other than by typical music genres, allowing people to be exposed to more types of music. Why do we categorize music by genres? How has online music streaming effected our knowledge of music?
Javier E

Mark Zuckerberg, Let Me Pay for Facebook - NYTimes.com - 0 views

  • 93 percent of the public believes that “being in control of who can get information about them is important,” and yet the amount of information we generate online has exploded and we seldom know where it all goes.
  • the pop-up and the ad-financed business model. The former is annoying but it’s the latter that is helping destroy the fabric of a rich, pluralistic Internet.
  • Facebook makes about 20 cents per user per month in profit. This is a pitiful sum, especially since the average user spends an impressive 20 hours on Facebook every month, according to the company. This paltry profit margin drives the business model: Internet ads are basically worthless unless they are hyper-targeted based on tracking and extensive profiling of users. This is a bad bargain, especially since two-thirds of American adults don’t want ads that target them based on that tracking and analysis of personal behavior.
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  • This way of doing business rewards huge Internet platforms, since ads that are worth so little can support only companies with hundreds of millions of users.
  • Ad-based businesses distort our online interactions. People flock to Internet platforms because they help us connect with one another or the world’s bounty of information — a crucial, valuable function. Yet ad-based financing means that the companies have an interest in manipulating our attention on behalf of advertisers, instead of letting us connect as we wish.
  • Many users think their feed shows everything that their friends post. It doesn’t. Facebook runs its billion-plus users’ newsfeed by a proprietary, ever-changing algorithm that decides what we see. If Facebook didn’t have to control the feed to keep us on the site longer and to inject ads into our stream, it could instead offer us control over this algorithm.
  • we’re not starting from scratch. Micropayment systems that would allow users to spend a few cents here and there, not be so easily tracked by all the Big Brothers, and even allow personalization were developed in the early days of the Internet. Big banks and large Internet platforms didn’t show much interest in this micropayment path, which would limit their surveillance abilities. We can revive it.
  • What to do? It’s simple: Internet sites should allow their users to be the customers. I would, as I bet many others would, happily pay more than 20 cents per month for a Facebook or a Google that did not track me, upgraded its encryption and treated me as a customer whose preferences and privacy matter.
  • Many people say that no significant number of users will ever pay directly for Internet services. But that is because we are misled by the mantra that these services are free. With growing awareness of the privacy cost of ads, this may well change. Millions of people pay for Netflix despite the fact that pirated copies of many movies are available free. We eventually pay for ads, anyway, as that cost is baked into products we purchase
  • A seamless, secure micropayment system that spreads a few pennies at a time as we browse a social network, up to a preset monthly limit, would alter the whole landscape for the better.
  • Many nonprofits and civic groups that were initially thrilled about their success in using Facebook to reach people are now despondent as their entries are less and less likely to reach people who “liked” their posts unless they pay Facebook to help boost their updates.
  • If even a quarter of Facebook’s 1.5 billion users were willing to pay $1 per month in return for not being tracked or targeted based on their data, that would yield more than $4 billion per year — surely a number worth considering.
  • Mr. Zuckerberg has reportedly spent more than $30 million to buy the homes around his in Palo Alto, Calif., and more than $100 million for a secluded parcel of land in Hawaii. He knows privacy is worth paying for. So he should let us pay a few dollars to protect ours.
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