Are Electric Cars The Future of Driving?

Wednesday, May 19th, 2010

Are electric cars the future of driving? Experts disagree:

As Nissan prepares to sell its Leaf electric sedan it predicts electrics will account for 10% of the auto market by 2020. That means you’d see them about as often as you see Honda vehicles today. But some analysts and industry insiders put the expected market share at about 2% — about the same as Mazda or Subaru. Essentially it’s the difference between seeing them “all the time” and seeing them “once in awhile.”

Jonathan Welsh, the writer, is “just waiting for something cooler than the Leaf, with better battery range than the Chevy Volt and more interior space than the models BMW is test marketing” — which, I commented there, is a mistake:

If you want better battery range than the Chevy Volt, I suggest that you’re looking in the wrong direction. Batteries are extremely heavy and expensive for the amount of energy they store, while gasoline and diesel are extremely light and inexpensive for the amount of energy they store.

If anything, the Volt should have less battery range and rely more on its gasoline generator. If you’re always using batteries, you’re carrying too many heavy batteries around.

Trailblazers in a Box

Wednesday, May 19th, 2010

A manned mission to Mars would take roughly 500 days, so six trailblazers have volunteered to spend a year and a half cooped up to see what happens when people stop being polite and start getting real:

The three Russians, two Europeans and one Chinese national will be sealed away for one-and-a-half years inside a 180-square-metre (1,000-square-feet) spaceship module on the outskirts of Moscow starting on June 3.

“It will be trying for all of us. We cannot see our family, we cannot see our friends, but I think it is all a glorious time in our lives,” enthused Chinese participant Wang Yue, who is the youngest volunteer at age 27.
[...]
The Mars-500 team’s contact with the outside will also be delayed and often disrupted to mimic a real situation, preventing chats with friends and family and leaving the crew to fend for themselves in a crisis.

To stave off the blues and break up daily routines, the crewmen can only count on each other, Charles told AFP.

I would think you could just send a half-dozen 18-year-old computer science majors on this pseudo-mission, and they could pursue their degrees just fine via correspondence courses — no opportunity cost.

Campfire

Wednesday, May 19th, 2010

Geeks tell scary stories around the campfire too.

Murphy’s Week in Haiti

Wednesday, May 19th, 2010

Robert Murphy describes his week in Haiti, volunteering with Hands On Disaster Response (HODR):

During my short visit, one of the major themes relayed to us from the Haitians who interacted with our base was that the locals viewed us with suspicion. In particular, when they would see a team of HODR volunteers engaging in literal hard labor, using sledgehammers and wheelbarrows to remove rubble from a collapsed residence, many of the Haitians apparently resented the fact that we were “stealing their jobs.” In other words, the Haitians — where unemployment is apparently 90 percent — thought they should be getting paid to remove the rubble from their collapsed homes.

When those who were affiliated with HODR would explain to the people that we were all volunteers, some of them were still suspicious. They speculated that even if we weren’t being paid right then, we would probably be paid when we returned back home.

Now here’s what struck me about all this: isn’t it incredible that after their neighborhoods got wiped out, and hundreds of thousands of Haitians died, that many Haitians were apparently devoting a lot of mental effort to speculating on how much we were getting paid to cart away their rubble? (Ironically, when I got back to Nashville, I heard a lady complaining on a local radio talk show that illegal immigrants were signing up for the paid positions to clean up the flooded Opry Mills mall, thereby “stealing jobs that could have gone to Tennesseans.” So the Haitians aren’t unique in this respect.)

Please note, I’m not whining about a lack of gratitude; my purpose in going to Haiti wasn’t to get a pat on the head from someone who just lost his house and possibly much of his family. But what I am saying is that it makes sense, in a perverse way, that Haiti is the poorest country in the hemisphere. If this is the predominant mindset, how could anyone start a successful business? I would imagine the jealousy and gossip of his neighbors would be unbearable.

(Hat tip to Bryan Caplan.)

The Futility of Raising Taxes

Wednesday, May 19th, 2010

Nathan Lewis shares a graph, straight from the U.S. Congressional Budget Office, which illustrates the futility of raising taxes:

From this, he says, we make a few observations:

1) The trend is flat. There is no appreciable long-term rise or decline in revenues as a percent of GDP.

2) The minor variation in the trend corresponds to recessions and booms, not tax hikes or tax cuts. We can see a fairly large decline in the 2002 recession, another around 1992, another around 1982, another around 1971 and one in 1958. These are all recessions. We see no correspondance between tax revenue declines and major tax cuts, such as the Kennedy tax cut (1964), the first Reagan tax cut (1983), the second Reagan tax cut (1986, in which the top income tax rate fell to 28%), or the capital gains tax cut of 1997. 2003, the year of the Bush tax cut, was a dip, but that was because the Bush tax cut was coincident with the recession. Actually, this was the passage of the tax cut, which did not really take effect until the second half of 2003 at the earliest, for which there is no appreciable dip in revenues.

Likewise, the major tax hikes, such as the Nixon tax hike of 1969, the “bracket creep” inflationary tax hikes of the 1970s, and the Clinton tax hike of 1994, do not produce any substantial or sustainable increase in revenues/GDP.

See what I mean?

3) The makeup of taxes changes, but the total remains the same. As we can see, payroll taxes have risen by several multiples since the late 1950s. Corporate taxes have, on average, declined, although this decline really dates from the 1970s rather than recent years. (If you consider that a little more than 50% of the payroll taxes are actually paid by corporations, corporate taxes have remained roughly flat over the years. The increase in payroll taxes was also matched by a decrease in excise taxes.)

There you go: tax rates up, tax rates down, new taxes introduced, old taxes eliminated, none of it has made a whit of difference to the tax revenues of the Federal Government — as a percentage of GDP. General economic conditions — expansion or recession — definitely have an effect, but that is transient.

Over that time, the U.S. tax system has been subject to all kinds of changes. The top income tax rate in 1957 was 91%! In 1979, it was 70%. In 1986, it was 28%, and today it is 35%.

What does this mean?

1) Raising tax rates will produce no new revenue (as a percent of GDP).

2) Cutting tax rates will not result in a fall in revenue (as a percent of GDP).

I am using the future tense (“will not”) here. Of course, the future is not so certain. But, that is the best guess we can make with the evidence at hand.

3) Budget surpluses/deficits are entirely due to the variation of spending as a percent of GDP. So, pretty much all the “tax cuts caused/will cause budget deficit” and “tax hikes caused/will cause budget surplus” talk you’ve heard over the past fifty years is baloney.

Does this mean that higher/lower taxes “don’t matter”? Absolutely not. It’s one of the most important things there is. But it doesn’t matter to tax revenue as a percent of GDP.

North-South Divide

Tuesday, May 18th, 2010

The sharp division between developed and developing countries is often described as the North-South Divide. J.F. Gjersø goes ahead and plots GDP per Capita vs Latitude:

The Ten Ships

Tuesday, May 18th, 2010

HBO’s The Pacific follows a handful of individual Marines as they endure hellish conditions fighting the Japanese for control of tiny islands none of them had heard of before the war.

This raises an obvious question: Why were we fighting so hard to take these specks of rock from the Japanese? We didn’t realize just how hard the Japanese would fight to hold onto them, but were they worth even the (low) expected casualties? What strategy should we have followed?

My naive understanding of the situation:

  • The Imperial Japanese Navy is big and strong.
  • The United States Navy is not so big and strong, after Pearl Harbor, but it still has a decent carrier fleet — and the US has so much more industrial capacity than Japan that the USN will dwarf the IJN within a year or two.
  • The Japanese empire, with its newly acquired sources of oil, rubber, etc., is spread across a large number of islands and bits of the Asian continent.

Maybe I’m biased by my interest in logistics, but isn’t the obvious strategy to harass their shipping with subs — something that’s working quite well for the Germans against England at this time — until our carrier fleet is big enough to crush their fleet, at which point their entire empire becomes helpless?

Apparently John A. Adams’ book, If Mahan ran the Great Pacific War: an analysis of World War II naval strategy, recommends at least the second part. Richard “Wretchard” Fernandez references Adams’ book — which emphasizes focusing on destroying the ten ships at the core of Japan’s battle fleet:

One of the reasons the Navy opposed a Southwest Pacific campaign during the Pacific War was the shrewd appreciation that once bureaucracy started on a task it would grow with it like a cancer whatever its original purpose. Admiral King wasn’t against an action in the Solomons. He was just afraid that it would take on a life of its own.
[...]
Admiral Nagumo launched his infamous attack on Pearl Harbor from a nameless patch of ocean 200 miles North of Oahu. But Admiral King had the sense to understand that the location itself had little significance. It was the Kido Butai, the ten carriers which made up the Japanese Fast Carrier force which momentarily occupied that ocean waste that he had to destroy. While the Kido Butai existed it could move across the vast spaces and attack at a point of its choosing. While it survived every patch of ocean was dangerous. Once it had been neutralized all the oceans of the world were potentially safe. As John Adams in his book If Mahan Ran the Great Pacific War wrote: “sink ten ships and win the naval war”. Both the Nihon Kaigun and the CINCPAC understood this. The entire purpose of subsequent American naval operations was to find and sink these ten ships; and the Nihon Kaigun’s subsequent efforts revolved around their attempt to preserve them.

The Mahan mentioned in the title is Alfred Thayer Mahan (1840–1914), author of The Influence of Sea Power Upon History (1890), a book both sides’ Navies — and neither side’s Army — had studied.

Wretchard’s reference to the ten ships is an oblique one, by the way; his article is actually about our misplaced emphasis on Afghanistan, rather than radical Islam, rogue regimes, and oil.

Pentagon Virus Detector Knows You’re Sick Before You Do

Monday, May 17th, 2010

Since 2006, Pentagon-funded researchers at Duke have been hunting for a genetic signature that can assess, before symptoms appear, whether someone’s been infected with a virus:

Healthy participants were exposed to three different viral strains. Their blood, saliva and urine were then tested for “viral specific signatures,” that would characterize illness.

“Traditionally, we’ve diagnosed these conditions by testing for the actual pathogen, but that’s a slow process and it’s not effective until you’re already symptomatic,” Ginsburg told Danger Room. “To look at the actual host response instead is a really novel approach.”
[...]
Not only have they found a specific genetic signature that indicates viral infection, but the team has concluded that viruses and bacterial infections trigger different genes. Which means physicians could one day know whether to prescribe antibiotics, which can treat bacteria but not viruses.
[...]
Ginsburg anticipates a suitcase-sized device in the war-zone within “a couple years,” and says the devices are already showing excellent accuracy 24 hours before an infected patient becomes symptomatic. In an effort to validate the results in a real-world setting, his team has turned to Duke’s campus, using crowded dorms — already human petri dishes of infection — as improvised research labs.

Now, Ginsburg’s biggest concern is that the devices will be ready before the Food and Drug Administration, who’ve yet to establish regulatory benchmarks for genetic tests, knows what to do with them.

China Marine

Monday, May 17th, 2010

The conclusion of HBO’s The Pacific depicts E.B. Sledge — who went on to write With the Old Breed: At Peleliu and Okinawa decades later — returning to the States and having trouble readjusting to civilian life in Mobile, Alabama. In a postscript it mentions that he eventually went on to get a Ph.D. in biology.

What it does not mention is that he finished off his military career as a China Marine:

After the fighting stopped, Sledge went to China, where everybody and his faction from Szechwan was struggling to fill the power vacuum left by the Japanese surrender, and where armed Japanese awaiting repatriation were frequently vital to keeping order. Sledge’s regiment was the first marine unit to return to Beijing, and he saw the last of the old China as well as the vanguard of the Communists. His local acquaintances were more numerous than the average marine’s and included middle-class professionals, his houseboy, and a Belgian priest. While on duty he rescued Chinese staff from dogs and tried to rescue fellow marines from their alcoholism. He was finally released to go home, long after many rear-echelon types.

Intellectual Non-Diversity

Saturday, May 15th, 2010

David Foster comments on the intellectual non-diversity of our Supreme Court, which is now composed entirely of Harvard and Yale law school grads, with a passage Peter Drucker wrote in 1968:

One thing (a modern society) therefore cannot afford in education is the “elite institution” which has a monopoly on social standing, on prestige, and on the command positions in society and economy. Oxford and Cambridge are important reasons for the English brain drain. A main reason for the the technology gap is the Grande Ecole such as the Ecole Polytechnique or the Ecole Normale…

By contrast, one of the strengths of American education is the resistance to any elite monopoly. To be sure, we have institutions that enjoy (deservedly or not) high standing and prestige. But we do not, fortunately, discriminate against the men who receive their training elsewhere. The engineer whose degree is from North Idaho A and M does not regard himself as “inferior” or as “not really an engineer.”… And five or ten years later, nobody cares much about where the fellow got his degree…

The Harvard Law School might like to be a Grande Ecole and to claim for its graduates a preferential position. But American society has never been willing to accept this claim.

…It is almost impossible to explain to a European that the strength of American higher education lies in this absence of schools for leaders and schools for followers.

221B Baker Street Illustration

Friday, May 14th, 2010

Russell Stutler’s 221B Baker Street Illustration confirms his obsessive Sherlock Holmes fan status:

I first drew the 221B Baker Street illustration in pen and ink in 1995. At that time I read the entire collection of sixty Sherlock Holmes stories twice in a row, back to back, and took notes of every detail I could find of the Baker Street flat which began to take shape in my imagination. In the years since that time, this illustration has appeared on many other other web sites, and in various languages. It has also appeared in print publications around the world such as the Financial Times in London.

As I mentioned in the interview with the Financial Times, this is the only depiction I know of that deals with the challenges found in “The Adventure of the Mazarin Stone” and reconciles them with the various descriptions found in other stories. If one could just ignore that story, then constructing a floor plan would be very easy — and most reconstructions of the Baker Street have apparently done just that. The Baker Street illustration published in Strand Magazine in 1950 addresses some of the problems in “The Adventure of the Mazarin Stone” but doesn’t deal with details found in other stories. I’ve posted my notes on every detail I’ve found so you can judge for yourself.

The Three-Minute Rule

Thursday, May 13th, 2010

Anthony Tjan suggests the three-minute rule:

While there are obvious ways to gain significant customer understanding, such as surveys and focus groups, some of the most interesting insights come from less direct analyses. Take our three-minute rule as an example. You can learn a great deal about customers by studying the broader context in which they use your product or service. To do this, ask what your customer is doing three minutes immediately before and three minutes after he uses your product or service.

An example:

At Thomson, one of our products provided investment analysts with financial earnings data. What we hadn’t fully appreciated — until we applied the three-minute rule — was that immediately after getting our data, a large number of analysts were painstakingly importing it into Excel and reformatting it. This observation led us to prioritize developing a more seamless Excel plug-in feature with enhanced formatting capability over other product development initiatives. The result was an almost immediate and very significant uplift in sales.

(Hat tip to Kevin Meyer, who doesn’t normally like the Harvard Business Review.)

Thank Zeus It’s Thor’s Day

Thursday, May 13th, 2010

Thank Zeus it’s Thor’s day:

Last week we had dinner at a quiet restaurant on the Oregon coast, and sat near two people that were obviously on a first date. (“So, do you have any siblings?”)

When their conversation took an interesting turn, we couldn’t help but listen:

“You’re an atheist? How can you not believe in God?”

“How can you not believe in Zeus or Thor?”

“That’s stupid. Those are old folk-tales.”

“They were God! You’re dismissing others’ beliefs, calling them folk-tales? So you’re also an atheist for most gods that have ever existed. I just go one further.”

“I’m not an atheist!”

“You and I are almost identical in our beliefs! If history has named, say, 520 gods, you don’t believe in 519 of them, I don’t believe in 520 of them.”

(long pause)

“What do you do on Christmas or Easter, then? Do you feel weird as a non-believer?”

“What do you do on Thursday?”

“Huh?”

“Thursday was named after Thor. It’s Thor’s day. Do you feel weird as a non-believer?”

“That’s not fair.”

“All the English days of the week are named after gods, sun, and moon. Look it up on Wikipedia. It’s wild.”

“Why are you so into this?”

“I’m not. Spent maybe 20 minutes on it, tops. I’m not on a mission to dis-prove God any more than you’re on a mission to dis-prove Zeus. It’s really no big deal to me.”

“So, I guess we’re not compatible, huh?”

“Of course we are! I like you a lot. And we do agree on 519 of the gods, so we’ll just not mention that last one.”

“OK. Deal. I like you a lot, too.”

(long pause)

“So what’s your favorite band?”

“Oh, God.”

Maps of Deep Time

Wednesday, May 12th, 2010

Lapham’s Quarterly presents a number of maps of deep time:

How America Can Rise Again

Wednesday, May 12th, 2010

A few months ago, James Fallows had a piece in The Atlantic, How America Can Rise Again, which Foseti found kind of Moldbuggian:

That is the American tragedy of the early 21st century: a vital and self-renewing culture that attracts the world’s talent, and a governing system that increasingly looks like a joke. One thing I’ve never heard in my time overseas is “I wish we had a Senate like yours.”
[...]
Our government is old and broken and dysfunctional, and may even be beyond repair.
[...]
What are the choices? Logically they come down to these, starting with the most fanciful:

We could hope for an enlightened military coup, or some other deus ex machina by the right kind of tyrants.

Unlike Foseti, Cullen Murphy (Are We Rome?) seems ambivalent about American decline:

When I spoke with him recently, he emphasized how much the current wave of “declinist” worry matches a tradition that has been an inseparable part of American strength.

“If you go back and pick any decade in American history, you are guaranteed to find the exact same worries we have now,” he said. “About our commercial capacities, about the education system, about whether immigrants are ruining our stock and not learning English, about what is happening to the ‘real’ values that built the country. Poke a stick into it, and you will get a gushing fount of commentary on the same subjects as now, in the same angry and despairing tone. It’s an amazingly consistent trait.

“Fifty years from now, Americans will be as worried as they are today,” Murphy said. “And meanwhile the basic social dynamism of the country will continue to wash us forward in the messy, roiling way it always has.”

Fallows believes that America still has the means to address nearly any of its structural weaknesses:

Yes, the problems are intellectually and politically complicated: energy use, medical costs, the right educational and occupational mix to rebuild a robust middle class. But they are no worse than others the nation has faced in more than 200 years, and today no other country comes close to the United States in having the surplus money, technology, and attention to apply to the tasks. (China? Remember, most people there still live on subsistence farms.) First with Iraq and now with Afghanistan, the U.S. has in the past decade committed $1 trillion to the cause of entirely remaking a society. We know that such an investment could happen here — but we also know that it won’t.

That seems like more than a minor problem — and it seems like a common problem of great empires that go into decline. Mancur Olson has a bit to say about this:

The late economist Mancur Olson laid out the consequences of institutional aging in his 1982 book, The Rise and Decline of Nations. Year by year, he said, special-interest groups inevitably take bite after tiny bite out of the total national wealth. They do so through tax breaks, special appropriations, what we now call legislative “earmarks,” and other favors that are all easier to initiate than to cut off. No single nibble is that dramatic or burdensome, but over the decades they threaten to convert any stable democracy into a big, inefficient, favor-ridden state. In 1994, Jonathan Rauch updated Olson’s analysis and called this enfeebling pattern “demosclerosis,” in a book of that name. He defined the problem as “government’s progressive loss of the ability to adapt,” a process “like hardening of the arteries, which builds up stealthily over many years.”

We are now 200-plus years past Jefferson’s wish for permanent revolution and nearly 30 past Olson’s warning, with that much more buildup of systemic plaque—and of structural distortions, too. When the U.S. Senate was created, the most populous state, Virginia, had 10 times as many people as the least populous, Delaware. Giving them the same two votes in the Senate was part of the intricate compromise over regional, economic, and slave-state/free-state interests that went into the Constitution. Now the most populous state, California, has 69 times as many people as the least populous, Wyoming, yet they have the same two votes in the Senate. A similarly inflexible business organization would still have a major Whale Oil Division; a military unit would be mainly fusiliers and cavalry. No one would propose such a system in a constitution written today, but without a revolution, it’s unchangeable.

Fallows concludes that America the society is in fine shape, even if America the polity most certainly is not. Somehow, it will all work out.