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Skeptical Debunker

Switzerland Keeping the Secrets of Alleged Tax Evaders - Yahoo! News - 0 views

  • Pick a dictator, almost any dictator - Cuba's Fulgencio Batista, the Philippines' Ferdinand Marcos, Haiti's Papa and Baby Doc Duvalier, the Shah of Iran, Central African Republic Emperor Jean-BÉdel Bokassa - and they all have this in common: they allegedly stashed their loot in secret, numbered accounts in Swiss banks, safely guarded by the so-called Gnomes of Zurich. This association - of bank secrecy and crime - has been fed into the public's imagination by dozens of books and movies. It's a reputation that rankles the Swiss, who have a more benevolent view of their commitment to privacy - one that happens to extend to tax privacy. Don't ask, because we won't tell. But the dramatic federal investigation of Switzerland's UBS has blown the lid off bank secrecy - and revealed how Swiss banks abet tax evasion on a far more widespread, if more banal, level. Over the past two decades, these secret banking services have been peddled progressively downmarket - first to the lesser-known fabulously wealthy, then to just the wealthy; more recently, private bankers have been tripping over themselves soliciting business from doctors, lawyers and other folks who are what the biz generally calls "high net worth" individuals. "The IRS has been concerned for decades that a combination of a global economy, the Internet, offshore banking, was really going to take offshore tax evasion from the old so-called 'gentlemen's sport' to tax evasion for the masses," says Mark Matthews, a former deputy IRS commissioner and now a tax attorney with Morgan, Lewis & Bockius LLP.
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    The federal investigation into UBS, which led to a $780 million fine and an agreement to turn over the names of more than 4,450 suspected tax cheats, is now in tatters after Swiss courts ruled against the executive-branch deal. To get around it, a special law has been proposed to accomplish the handoff, but that may not get anywhere in the legislature either. One outcome is already known: tax evasion had become a key service of the Swiss economy, not some isolated event. "They have been outed completely because a very large chunk of their business has been shown to include people cheating on taxes," says Jack Blum, a tax-haven expert. Being "reasonably conservative," he estimates 30% of Swiss banking is related to tax evasion, a figure that jibes with recently released bank data. These revelations come as the financial meltdown has punched a huge hole in projected revenues for governments, which are suddenly a whole lot less tolerant of tax cheats. That's particularly true in Germany, whose wealthy account for a significant portion (at least 10%) of the $1.8 trillion in Swiss banking assets. That translates into hundreds of millions in lost revenue and is the reason the German Finance Minister recently thundered, "There's no future for bank secrecy. It's finished. Its time has run out." The Swiss are not going to be so easily convinced. The Swiss government has already warned that it will not cooperate with German authorities if they go ahead with plans to purchase purloined data about Germans with Swiss bank accounts.
Skeptical Debunker

For better trade, give peace a chance - 0 views

  • Trade's effect on military conflict is one of the most important issues in international relations. The last decade has seen research and debate into the role of trade intensify; Liberals argue that trade brings peace, neo-realists and neo-Marxists reason that trade brings conflict, and classical realists contend that trade has no impact. This debate is not just academic: some key U.S. policymakers (Senator McCain and former President Clinton for instance) believe that trade brings peace, a view that contributes to their support for free trade. Economists developed bilateral trade models in isolation from models of interstate conflict, which were the work of political scientists. These two types of models handle distance between nations differently. Bilateral trade takes its cue from Isaac Newton's formula for the gravitational attraction between two objects: the larger the objects' masses and the shorter the distance between them, the larger the attraction. So the larger the trade partners' economies and the closer they are to one another, the greater their trade. However, conflict models instead incorporate shared borders by land or close distance over water (contiguity) - stressing the role of border disputes in sparking interstate conflict. Distance is included in conflict equations based on the idea that an army gets weaker the farther it strays from its base, but what point in a nation to pick for the trade and conflict equation is unclear. Often theorists use the distance between capital cities, which is problematic: wars generally happen around borders where armies are often based, and capitals have historically changed without this altering the likelihood of war between the nation and its neighbours. The authors suggest that the trade data set plugged into trade and conflict equations is critical. This type of data often contains gaps - there are a number of reasons why data from a particular nation might be unavailable, inevitably leaving researchers to make assumptions. The majority of trade and conflict studies define conflict to include all types of militarised interstate disputes (MIDs). But Keshk, Reuveny, and Pollins question the results generated when different conflict definitions are chosen. For instance, a conflict such as a threat to use nuclear weapons would not cause fatalities, but may still have some impact on trade and vice versa. In fact, by altering the data treatment and assumptions in the equation, the authors generated a variety of results, which supported several different theoretical viewpoints. The authors suggest that future research should investigate questions of missing bilateral trade data, and attempt a more subtle use of the meaning of "military conflict". Researchers might also develop distance and contiguity measures at a more sophisticated level. "Any signal that trade brings peace remains weak and inconsistent, regardless of the way proximity is modelled in the conflict equation. The signal that conflict reduces trade, in contrast, is strong and consistent," say the authors. "Any study of the effect of trade on conflict that ignores the reverse fact is practically guaranteed to produce estimates that contain simultaneity bias." Studies of the relationship between international trade and military conflict can be traced back many centuries, particularly in the works of luminaries such as de Montesquieu, Immanuel Kant, John Hobson, Vladimir Lenin, Henry Morgenthau, Kenneth Waltz, Frederic List, and Albert Hirschman. This latest study emphasises that international politics are affecting trade between nation pairs, while it is far less obvious whether trade systematically affects politics. "To our colleagues from the liberal camp we would like to say that we still believe there are limited circumstances in which more trade may help lead countries to more peaceful resolutions of their differences, particularly if they are already at peace," the authors state. "However, it is past time for academics and policymakers to look beyond the naive claim that the cultivation of trade ties will always and everywhere produce a more peaceful world."
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    Liberal theorists and politicians have long argued that trade leads to peaceful relations between nations - a view that informs the push for free trade. However, many international relations experts dispute this claim. New US research out today, in the journal Conflict Management and Peace Science published by SAGE, finds that rather than trade being the driver, peace is actually the vital ingredient that allows trade to flourish.
Skeptical Debunker

Belief In Climate Change Hinges On Worldview : NPR - 0 views

  • "People tend to conform their factual beliefs to ones that are consistent with their cultural outlook, their world view," Braman says. The Cultural Cognition Project has conducted several experiments to back that up. Participants in these experiments are asked to describe their cultural beliefs. Some embrace new technology, authority and free enterprise. They are labeled the "individualistic" group. Others are suspicious of authority or of commerce and industry. Braman calls them "communitarians." In one experiment, Braman queried these subjects about something unfamiliar to them: nanotechnology — new research into tiny, molecule-sized objects that could lead to novel products. "These two groups start to polarize as soon as you start to describe some of the potential benefits and harms," Braman says. The individualists tended to like nanotechnology. The communitarians generally viewed it as dangerous. Both groups made their decisions based on the same information. "It doesn't matter whether you show them negative or positive information, they reject the information that is contrary to what they would like to believe, and they glom onto the positive information," Braman says.
  • "Basically the reason that people react in a close-minded way to information is that the implications of it threaten their values," says Dan Kahan, a law professor at Yale University and a member of The Cultural Cognition Project. Kahan says people test new information against their preexisting view of how the world should work. "If the implication, the outcome, can affirm your values, you think about it in a much more open-minded way," he says. And if the information doesn't, you tend to reject it. In another experiment, people read a United Nations study about the dangers of global warming. Then the researchers told the participants that the solution to global warming is to regulate industrial pollution. Many in the individualistic group then rejected the climate science. But when more nuclear power was offered as the solution, says Braman, "they said, you know, it turns out global warming is a serious problem."And for the communitarians, climate danger seemed less serious if the only solution was more nuclear power.
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  • Then there's the "messenger" effect. In an experiment dealing with the dangers versus benefits of a vaccine, the scientific information came from several people. They ranged from a rumpled and bearded expert to a crisply business-like one. The participants tended to believe the message that came from the person they considered to be more like them. In relation to the climate change debate, this suggests that some people may not listen to those whom they view as hard-core environmentalists. "If you have people who are skeptical of the data on climate change," Braman says, "you can bet that Al Gore is not going to convince them at this point." So, should climate scientists hire, say, Newt Gingrich as their spokesman? Kahan says no. "The goal can't be to create a kind of psychological house of mirrors so that people end up seeing exactly what you want," he argues. "The goal has to be to create an environment that allows them to be open-minded."And Kahan says you can't do that just by publishing more scientific data.
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    "It's a hoax," said coal company CEO Don Blankenship, "because clearly anyone that says that they know what the temperature of the Earth is going to be in 2020 or 2030 needs to be put in an asylum because they don't." On the other side of the debate was environmentalist Robert Kennedy, Jr. "Ninety-eight percent of the research climatologists in the world say that global warming is real, that its impacts are going to be catastrophic," he argued. "There are 2 percent who disagree with that. I have a choice of believing the 98 percent or the 2 percent." To social scientist and lawyer Don Braman, it's not surprising that two people can disagree so strongly over science. Braman is on the faculty at George Washington University and part of The Cultural Cognition Project, a group of scholars who study how cultural values shape public perceptions and policy
Skeptical Debunker

Does promiscuity prevent extinction? - 0 views

  • Known as 'polyandry' among scientists, the phenomenon of females having multiple mates is shared across most animal species, from insects to mammals. This study suggests that polyandry reduces the risk of populations becoming extinct because of all-female broods being born. This can sometimes occur as a result of a sex-ratio distortion (SR) chromosome, which results in all of the Y chromosome 'male' sperm being killed before fertilisation. The all-female offspring will carry the SR chromosome, which will be passed on to their sons in turn resulting in more all-female broods. Eventually there will be no males and the population will die out. For this study, the scientists worked with the fruitfly Drosophila pseudoobscura. They gave some populations the opportunity to mate naturally, meaning that the females had multiple partners. The others were restricted to having one mate each. They bred several generations of these populations, so they could see how each fared over time. Over fifteen generations, five of the twelve populations that had been monogamous became extinct as a result of males dying out. The SR chromosome was far less prevalent in the populations in which females had the opportunity to have multiple mates and none of these populations became extinct. The study shows how having multiple mates can suppress the spread of the SR chromosome, making all-female broods a rarity. This is because males that carry the SR chromosome produce only half as many sperm as normal males. When a female mates with multiple males, their sperm will compete to fertilise her eggs. The few sperm produced by males carrying the SR chromosome are out-competed by the sperm from normal males, and the SR chromosome cannot spread.
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    Promiscuous females may be the key to a species' survival, according to new research by the Universities of Exeter and Liverpool. Published today (25 February) in Current Biology, the study could solve the mystery of why females of most species have multiple mates, despite this being more risky for the individual.
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