Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts

Thursday, June 04, 2015

How the crazy works

Capitalism in Bizarro world

Last month I briefly indulged my nasty habit of scanning the AM radio dial. As usual, the cesspit that is KSFO served up a memorable dollop of right-wing nonsense. The old stalwarts are gone now—Lee Rodgers to eternal silence and Melanie Morgan to the scandal-tainted Move America Forward—but Brian Sussman and Katie Green are doing their best to maintain the morning program's standard of irrational extremism.

Sussman, a weather man who thinks himself competent to pretend to be a climatologist, has apparently fixated on Hillary Clinton the way Cato was obsessed with Carthage. Although I suspect he will be disappointed with the eventual outcome, his overreach inspires a kind of head-shaking awe. Making money is usually honored by the KSFO tribe, but Sussman was willing to make an exception for Clinton's success. When Hillary makes money, it's evil and corrupt (two words you'll never hear Sussman use while discussing the excesses of the banking industry).

In this particular instance, Sussman was offended that Clinton commands top dollar for her speaking engagements:
Sussman: Hillary Clinton. Remember when she addressed the eBay summit? And we had asked this question: what did she make for this 20-minute talk? We literally asked the question. And now we find out: 315,000 dollars from eBay! Katie, that's your money and my money—because we use eBay.

Katie Green: Yeah, it is.
Welcome to the new KSFO theory of capitalism. Since Sussman is a customer of eBay, he shares ownership of the company's money. Sorry, Brian. When you patronize a company, your dollars become theirs, to do with as they please. Even if that means bringing in a nationally-known speaker to amp up attendance at one of their conferences. Your permission is not required.

I'm not going to hold my breath waiting for a correction or clarification. That would be fatal.

Saturday, April 25, 2015

Pick a number

The art of data denial

The United States economy has climbed out of the hole created by the Great Recession and the Obama Administration has presided over an unbroken string of increasing job numbers lasting more than five years. I commented on this accomplishment and posted an illustration summarizing the data.


This did not sit well with one of my Facebook “friends,” who promptly took me to task:
Really, you are smarter than this BS!
It's a puzzlement how many people assure me I'm smart while insisting I'm also stupid. I asked my accuser how I had gone astray when my evidence-based conclusion was supported by the published numbers. She didn't hesitate:
Evidence that can be changed or tampered with. Too easy to make things look good for the moment!
Ah, yes. We must question authority and doubt the data. No doubt she took comfort in 2012 from the “poll correcters” who disdained the conclusions of the professional pollsters that President Obama was heading toward reelection. Remember them? (I'm sure folks in the Romney campaign do.)

I shared a story with my data doubter, explaining to her that data tampering in this context is a myth. It doesn't happen. Perhaps that sounds like simple-minded credulity, but I actually know what I'm talking about.

Once upon a time I worked for a state agency that was responsible for the annual computation and publication of the California Necessities Index. The CNI had been adopted by the legislature as the standard for indexing public assistance benefits (mostly because, at the time, it was lower than the Consumer Price Index). I was the person within the agency who was assigned to perform the actual computation, since I was the closest thing to a staff mathematician.

My father was amused by this situation and jokingly suggested it would be nice if I shaved off a fraction of a percentage point, thus denying full benefits to welfare cheats (most of the people on public assistance, in Dad's proto-tea-party view of the world). Contrariwise, I could have been a benefactor to California's destitute and downtrodden by judiciously rounding up the factors of the CNI, giving them an unexpected windfall. We could tamper with the numbers!

No. The very notion was ridiculous, as well as impossible. The components of the CNI were public information, factors selected from the published data for the CPI. Anyone could look up the factors that went into the CPI, apply the weights stipulated for the CNI, and derive the number. My role was simply a formality, providing the number that appeared in our agency's publications to make it official, pursuant to state law. Well before we published the number, the governor's Department of Finance had done its own independent calculation, as had the Legislative Analyst's Office and anyone else who needed the index number or was just curious about it.


The same thing is largely true of the numbers published by the Bureau of Labor Statistics. The worker bees of the federal government compile the monthly data each month, analyze the figures, and publish the summary information. The monthly unemployment rate, for example, is not vetted, suggested, or even approved by the White House. The faceless bureaucrats who crunch the numbers for the Obama Administration did the same exact thing when Bush was president (and, for some of these civil servants, they did it under both Bushes). They have no more control over the conclusions or final numbers than I did when I was a California civil servant. (It's popular within the right wing these days to decry unemployment data as unrepresentative of the “truth” because the usual unemployment number is deemed to have fallen when people just give up and stop seeking jobs. If they think the U3 measure published by the BLS is insufficiently informative, they are welcome to cite U6, which the BLS also publishes. You want numbers? Go to the BLS. They publish practically everything and the numbers aren't fudged.)

Data denial is a fundamental component of the refusal to recognize global-warming induced climate change. Data denial is also currently hard at work in California, giving aid and comfort to people paranoid about vaccinations, who pick and choose among an Internet stew of “research” and anecdotes to bolster their arguments that vaccines are more dangerous than now-rare childhood diseases (rare because of vaccines!).

If you want your conclusions to be rational and evidence-based, you have to avoid the denial of well-established data. We have seen, however, that even the most robust numbers are rejected when they get in the way of political ideologies.

Tuesday, November 11, 2014

Econ 101

Teabaggers are experts

A special interest group called the California Drivers Alliance is sounding the alarm. We in the Golden State are in imminent danger of assault:
On January 1, 2015, a new hidden gasoline tax will go into effect. ... There is still time to stop it, but we must act now. Contact state officials today and urge them to put the brakes on this new hidden gas tax!
A “hidden” tax? Scandalous! I did some research.

First of all, the California Drivers Alliance is one of those industry-funded “astroturf” organizations. The faux grassroots movement is bankrolled by the California Independent Oil Marketers Association. Second, the so-called hidden tax is nothing more than the state's cap and trade program, administered by the California Air Resources Board. I could not resist posting a snide comment on the California Drivers Alliance's Facebook page:
How can a gas tax be “hidden” if was enacted by Assembly Bill 32, a 2006 measure that is public record and was defended by the voters' overwhelming rejection of Proposition 23? Besides, oil companies who are eager to compete in the free market could choose to trim their profits a bit to maintain the attractiveness to consumers of their product.
People hastened to educate me. Here are some paraphrases, edited to correct misspellings and delete expletives:
Why can't stupid libtards understand that corporations don't pay taxes? They pass them on to us and we pay them!

Tax, tax, tax! That's socialism for you.

The tax is hidden because people don't know about it!!!!!

Take an econ class, you idiot! Higher taxes kill jobs!

Taxes on gas producers are taxes on drivers!
The immediate lesson I learned is that we should do away with the personal income tax and stick it to the corporations. It shouldn't matter, since we're going to pick up the tab anyway when we purchase goods and services from those corporations. Right?

I also learned that the free market doesn't function very well. The members of the California Independent Oil Marketers Association have no choice but to pass along the entire 10 cents per gallon (usually misstated by the California Drivers Alliance as 16 cents to 76[!] cents per gallon). If anyone dared attract more customers and more revenue by eating part of the AB 32 surcharge, evidently it would not be enough to restore their profits, which can never be high enough.

That's econ for you.

Sunday, September 05, 2010

Proof by pundit

Quaintly Erroneous Demonstration

I am not fond of “slippery slope” arguments, despite their subtle Archimedean underpinnings. The sage of Syracuse enunciated the principle that you can get a lot from a little—provided you can have all you want. Switching from my clumsy prose to an elegant example, suppose you want to be a billionaire. I foolishly tell you that I refuse to give you any dollars, but you can have all the pennies you want. Are you defeated?

I hope not. In order to become a billionaire (in dollar terms), you need merely ask for 100 billion pennies. (Please don't spend it all in one place.)

By the way, I'm not good for it, so you can't be a billionaire after all (at least, not in this way).

The principle holds if you were similarly offered an unlimited number of farthings (each worth one quarter of a cent) or mills (one tenth of a cent).

And, as we all know, if you give certain people an inch, they'll take a mile.

Still, I doubt Archimedes—logical fellow that he was—would have been sympathetic to slippery-slope arguments that say things like:
  • if a city enacts zoning laws, then tyranny is imminent
  • if federal health care reform includes caps, then death panels will run riot
  • if assisted suicide is permitted, then wholesale euthanasia is inevitable
  • if marijuana is legalized, then cocaine kiosks will blossom in shopping malls
  • if same-sex couples are allowed to marry, then Rick Santorum will marry his dog

You get the idea. If a little, then a lot. I was reminded of this while perusing a political column by Debra Saunders in this morning's San Francisco Chronicle. She was doing her best to shore up Carly Fiorina, the wicked witch of Hewlett-Packard, and tear down Barbara Boxer, an icon of fear and loathing for the right wing. Saunders watched last week's debate between Sen. Boxer and challenger Fiorina and discerned an angle of attack:
The Democrats want to claim the mantle of fiscal responsibility, but they want to keep spending.

So they've developed this myth that if they support extending the Bush tax cuts for all but the wealthiest 2 percent of Americans—those who earn more than $250,000—they are being fiscally responsible. It's true, that proposal is supposed to reduce the federal deficit by $700 billion over a decade. But note that practically no one advocates ending the rest of the Bush tax cuts, which by that logic, would be the height of fiscal responsibility.
Her argument is clear, right? If fiscal responsibility entails limiting tax relief to those making less than a quarter million, then ultimate fiscal responsibility would involve no tax relief at all. In fact, we should raise taxes on absolutely everybody. Saunders would be sure to endorse it.

Saunders expects us to fall for her coy argument that there is no basis for drawing a dividing line between those who can afford to pay more and those who can't. She obviously thinks all dollars are equal (although Jesus would disagree) and that there cannot be a rational argument for picking priorities. Besides, it's cruel to single out millionaires and billionaires and tell them their Bush tax cuts are going to lapse. (First they came for the wealthy ...) I guess those poor rich folk will have to scrimp and save to get by under the same tax burden that allowed them to be fat and happy in the Clinton years. Remember those years? They were better for just about everyone.

Does it all give you a headache? Take a thousand aspirin and call me in the morning.

Sunday, July 11, 2010

Information hiding

Preordained political punchline

Lisa Benson is the talented political cartoonist who never lets reality mess up a good storyline. She leaves no daylight between herself and the right-wing talking points of the day. In the main, Democrats are always stupid, incompetent, or evil and Barack Obama is an ignorant ideologue. (That seems a bit like projection to me.) Here's a recent example:


See anything wrong or misleading about it? While we understand that the political cartoon is not a format that lends itself to detail and nuance, it still seems a terrible oversight to have omitted a “George W. Bush was here” sign on the stump of America's economy and a GOP sticker on the chain saw (which Obama undoubtedly found lying next to the fallen tree). Lisa probably knows that the economy was actually devastated under the stewardship of Obama's predecessor, but let's be fair: she's simply doing her job as a right-wing propagandist. I guess we're supposed to take this in stride.

Because, you know, everything is fair in love and war—and politics. Even lies, apparently.

As a math teacher, however, there are certain lines that I cannot bear to see crossed. Check out this peculiarity:


Today we all know that the original Obama stimulus was too small. (Paul Krugman warned us at the top of his lungs, but most of us ignored him at our continuing peril.) Hence the risk of a double-dip recession is all too real. While the Great Recession itself has George W. Bush's oil-stained fingerprints all over it, a second dip—if it occurs—will owe much to Obama's timidity at the beginning of his tenure (and his foolish penchant for seeking bipartisanship from an opposition party that doesn't know the meaning of the word).

So what's wrong with Lisa's double-dip cartoon? It seems more on target than most, and even depicts the president as trying to carry Uncle Sam across a perilous chasm. It's this: How the hell does one get a double-dip in a rope bridge, for crying out loud? Catenary curves are uniformly concave up (as they say in calculus class). Benson has deeply offended my sense of mathematical reality.

Much as she often does my sense of political reality.