Walker

Walker joined Difficult Run as an editor in August 2013. He graduated from the University of North Texas with an MBA in Strategic Management and a BBA in Organizational Behavior and Human Resource Management. He's currently a grad student in Government at Johns Hopkins University. He has been published in SquareTwo, BYU Studies Quarterly, Dialogue, Graziadio Business Review, and Economic Affairs. He also contributed to Julie Smith's (ed.) 'As Iron Sharpens Iron: Listening to the Various Voices of Scripture'. His other online writing can be found at Worlds Without End and Times & Seasons. He lives in Denton, Texas, with his wife.

The Great Enrichment

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Economist Deirdre McCloskey presented a paper entitled “The Great Enrichment Came and Comes From Ethics and Rhetoric” at a New Delhi conference for the Centre for Civil Society in January. The following excerpt is, in large part, why I support markets:

Free markets, that is, have not been bad for the poor of the world. The sole reliable good for the poor, on the contrary, has been the liberating and the honoring of market-tested improvement and supply. Private charity and public works, socialism and central planning, by contrast, have often made people worse off. Yet economic growth since 1800 has almost always made them better off, by enormous factors of increase. The enrichment of the poor, that is, has not come from charity or planning or protection or regulation or trade unions, all of which, despite their undoubted first-act popularity among our good friends on the left, merely redistribute a constant or a shrunken pie. The mere arithmetic shows why. If all profits in the American economy were forthwith handed over to the workers, the workers (including some amazingly highly paid “workers,” such as sports and singing stars and big-company CEOs) would be 20 percent or so better off, right now. One time only. The 20 percent is to be compared with a rise in real wages 1800 to the present by a factor of 10 or 30 or (allowing for improved quality of goods) 100, which is to say 900 or 2,900 or 9,900 percent. If we want to make the non-bosses or the poor better off by a significant amount, 9,900 percent beats 20 percent every time. At 5 percent per year market-tested improvement and supply goes beyond the one-time 20 percent in a scant four years, and then cumulates to a quadrupling.

Check it out. The third volume of her trilogy on the Bourgeois Era- (the 2nd of which is pictured above)-The Treasured Bourgeoisie: How Markets and Innovation Became Virtuous, 1600-1848, and Then Suspect–will be out in 2015.

Closers Only: Higher Education and Business Leaders

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Back in 2011, I graduated from the University of North Texas with a BBA in Organizational Behavior & Human Resource Management. My excitement over it was lackluster to say the least. I rarely mentioned my upcoming graduation in the months prior. My own sister hadn’t even been aware I was graduating until afterwards (much to her irritation). I wrote my thoughts about my business education over at The Slow Hunch, noting its pros and cons:

While it may be true that businessmen and economists alike are not as accustomed with philosophy, ethics, or literature as they should be, this does not by default mean that the philosophers opining on the state of the economy have any justification for doing so. Business majors may need to crack open the work of Aristotle, but liberal arts majors would do well to be acquainted with Economics 101. Why? Because one advantage of business education is the focus on practical application, even in management. Theory is important, but whether it actually works is critical.

I didn’t stop with just business majors, but instead commented on the state of higher education as a whole:

The critiques of business education are valid. However, before the [insert liberal arts degree] majors begin their victory dance or crowing about their more nuanced understanding of the world…it should be pointed out that this decline in business major standards is fairly typical across the board. I often quip that the bachelor degree is the new high school diploma. Given the grade inflation that has taken place over the past several decades, I think it is fair to say that higher education as a whole has suffered. Economist Richard Vedder has found that “some 17,000,000 Americans with college degrees are doing jobs that the [Bureau of Labor Statistics] says require less than the skill levels associated with a bachelor’s degree.” With tuition increasing, Vedder has no problem labeling the push for more college graduates a scam. Vedder explains, “Employers are using education as a screening and signaling device, at a low cost directly to them (although not costless because of the taxes they pay to sustain much of this), but at a high cost to the prospective employees and to society as a whole.” Apparently, another type of bubble has popped: higher education.

A new report from the Lumina Foundation and Gallup fuels my pessimism:

  • Seven in 10 leaders say they would consider hiring someone without a degree or credential over someone with one.
  • Just 13% of business leaders say higher education institutions collaborate with business a great deal.
  • Most leaders (88%) favor an increased level of collaboration with higher education institutions.
  • About one in ten business leaders strongly agree that higher education institutions in this country are graduating students with the skills and competencies their business needs.
  • Just (14%) of executives say they are very likely to hire a candidate who has a degree from an online higher education over a candidate with a traditional higher education.
  • Business leaders were most likely to indicate the amount of knowledge a candidate has in the field is a very important factor to managers making hiring decisions for organizations.
  • For business leaders, work skills top the list of factors that should drive immigration policy decisions.[ref]”What America Needs to Know About Higher Education Redesign,” pg. 23[/ref]

Gallup summarizes,

There is a disconnect between what business leaders need and what higher education institutions think they are producing. A separate Gallup study for Inside Higher Ed finds that 96% of chief academic officers at higher education institutions say their institution is very or somewhat effective at preparing students for the world of work. Quite the reverse, business leaders say that college graduates do not have the skills that their particular businesses need such as applicable knowledge and applied skills in the field. Even though leaders are not yet turning to foreign-born workers when hiring, they favor increasing green card policies for foreign-born international graduate students in the U.S.

This is likely why “a strong majority of business leaders favoring an increased level of collaboration between higher education institutions and businesses. An increased level of collaboration will benefit both business leaders and higher education institutions in preparing students with the right knowledge and applied skills so that they are ready for the real world and have the best opportunity to find a good job.”

While we may be complacent in thinking the shiny degree hanging on the wall means we’re educated and highly-skilled, business leaders are providing a much-needed wake up call. It’s not about the piece of paper, but what you can actually do. In the immortal words of Alec Baldwin in Glengarry Glen Ross, “You wanna work here — close.”

(Neo) Traditional Marriage

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Over at The Atlantic, Brooking’s Richard Reeves argues that “the most affluent and educated Americans…are creating a new model for marriage—one that is liberal about adult roles, conservative about raising children.” Reeves calls these “high-investment parenting” marriages or HIP. “The central rationale for these marriages,” explains Reeves, “is to raise children together, in a settled, nurturing environment.” These couples “take their time to select a partner; and then, once the marriage is at least a couple of years old, take the final step and become parents. Money, marriage, maternity: in that order.” According to Reeves, this represents a new child-centric, gender-equal model of marriage.

However, a couple recent articles demonstrate that this isn’t exactly new. Kay Hymowitz of the Manhattan Institute points out that far from being a product of the Industrial Revolution, “the nuclear family—a mother, father and child(ren) in a “simple house,” as Laslett put it—was the dominant arrangement in England stretching back to the thirteenth century.” In northwestern Europe “men and women married later than in other parts of the world, only after they had saved enough money to set up an independent home. By the time they were ready to tie the knot, their own parents were often deceased, making multi-generational households a relative rarity. In fact, the family arrangement so common to England helps explain why it and other nations of northwest Europe were the birthplace of the Industrial Revolution, the launching ground for modern affluence. The young nuclear family had to be flexible and mobile as it searched for opportunity and property.” This led to expanding roles between genders.[ref]As historian Mary Hartman explains, “Within households, men came to depend less on their own male blood relatives and more on their wives for livelihood and support, whereas outside households they came increasingly to rely on unrelated men rather than on kin networks. Women, for their part, emerged as more active if not equal partners with their husbands in decisionmaking within households and also within their local communities . . . Husbands requiring responsible partners were obliged, however reluctantly, to abandon the image of the irrational and unruly female, and to refashion women’s image more closely to their own. . . . [t]he whole society was becoming less, not more, patriarchal, starting at the basic level of the household . . . the unity of kin and property that for thousands of years had been the central focus of most men’s worlds began to dissolve” (Quoted in V.H. Cassler, “‘Some Things That Should Not Have Been Forgotten Were Lost’: The Pro-Feminist, Pro-Democracy, Pro-Peace Case for State Privileging of Companionate Heterosexual Monogamous Marriage,” SquareTwo 2:1, Spring 2009).[/ref] Furthermore, this arrangement was “uniquely child-centered… The older brides of northwest Europe…had fewer fertile years ahead of them and smaller families, which enabled them to provide more focused attention on each child.” This means that “the children of married couples are internalizing their parents’ bourgeois aspirations and child-centeredness, both of which lie deep in the bones of the institution they have chosen to enter.”

Sociologist W. Bradford Wilcox notes that “family life is organized along neo-traditional lines, and has been since the 1990s, when the gender revolution stalled out in married families. It’s new in the sense that today’s married dads do a lot more child care and housework than dads of the 1950s, and that most married moms are working in the paid labor force. But it’s “traditional” in the sense that most husbands take the lead when it comes to breadwinning, and most wives take the lead when it comes to childrearing.” Married mothers still handle close to 70% of the child care and housework, while married fathers work 65% of their households’ hours in paid labor force and earn nearly 70% of their families’ income. This fits their preferences: “53 percent [of married mothers] prefer part-time work and 23 percent prefer to be stay-at-home mothers. (This stands in marked contrast to married fathers: 75 percent of them think working full-time is ideal and an additional 13 percent prefer part-time work, according to Pew data.)”

 

This is why “public policies and cultural norms related to work and family should be geared toward maximizing flexibility, rather than locking in approaches geared to serving full-time, dual-income families, and toward renewing the employment opportunities of poor and working-class men who have become less “marriageable” in recent years.”

Apparently, child-centeredness and adaptation of gender roles to economic circumstances and preferences aren’t all that new. We should remember that before skewering “traditional” marriage.

North Korea: Feel the Shame

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The Boston Globe reports on the brand new UN panel report on human rights violations in North Korea:

It has been known for years that North Korea is a totalitarian hellhole ruled by megalomaniacs who have turned the country into a vast concentration camp. Millions of North Koreans have died from starvation caused by their government’s deranged policies; millions more have been victimized by its fanatical efforts to repress any hint of independent thought, and by its merciless assaults on human dignity. But the report issued by the UN panel this month, after a year-long investigation that gathered evidence from more than 320 victims and witnesses, paints such an extensive and meticulous portrait of evil that it compares in significance, as the Washington Post observed, to Alexander Solzhenitsyn’s devastating history of the Soviet labor camps, “The Gulag Archipelago.”

…“These crimes against humanity,” the report concludes, “entail extermination, murder, enslavement, torture, imprisonment, rape, forced abortions and other sexual violence, persecution on political, religious, racial and gender grounds, the forcible transfer of populations, the enforced disappearance of persons and the inhumane act of knowingly causing prolonged starvation.”

North Korean concentration camps have “lasted twice as long as the Soviet gulag did, and 12 times as long as the Nazi death camp at Auschwitz. Nelson Mandela spent 27 years in prison, and people the world over rallied for his freedom…Who rallies for the freedom of North Korea’s martyrs?”

“We should be ashamed,” says Justice Kirby, “if we do not act on this report.”

Yes, we should.

Slavery and African-American Christianity

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Christianity Today has an excellent article that explores “The Inconceivable Start of African-American Christianity.” It turns out that “Presbyterian theology and Anglican liturgy…held little appeal to most blacks. Not until Methodists and Baptists arrived—with their emphasis on conversion as a spiritual experience—did black Christianity begin to take off…The Great Awakening, then, planted the seed of a more experiential type of Christianity that blossomed suddenly late in the eighteenth century. Black Methodism in the U. S. grew from 3,800 in 1786 to nearly 32,000 by 1809. Membership in black Baptist congregations increased as well, from 18,000 in 1793 to 40,000 in 1813.”

The abolition movement “prompted increasingly more slave owners to take the Great Commission seriously. Slave owners wanted to prove that slaveholding could be a positive good for both owners and slaves. In 1829, the South Carolina Methodist Conference appointed William Capers to superintend a special department for plantation missions—the first official and concerted effort of the sort.” Charles Jones, “the apostle to the negro slaves” and a slave owner himself, “began a ministry to evangelize slaves and to convince others to do likewise” four years later. “Southern whites were eager to show northerners that a gentle, Christian society—slave and free—could flourish in the South.”

Despite the intentions of slave owners, slaves were nonetheless “struck by something that transcended their culture. Many of them described how they were seized by the Spirit, struck dead (so to speak), and raised to a new life. Such conversions took place in the fields, in the woods, at camp meetings, in the slave quarters, or at services conducted by the blacks themselves.” While “some of the success must be credited to white missionaries—both slave owners and abolitionists—who insisted that slaves hear at least the rudiments of the Christian message,” ultimately “the Christianity that finally took hold of black souls, that grew and blossomed in its own distinct way, and that comforted and gave hope to a sorely oppressed people, was a different thing altogether than what whites had imagined. It was in some sense created and nurtured by blacks themselves, who refused to let whites frame their faith.”

A moving read. Check it out.

The War on Reason

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Paul Bloom
Paul Bloom

Psychologist Paul Bloom has a fantastic article in The Atlantic exploring the fields of neuroscience and social psychology and how the general public tends to draw the wrong conclusions from them. Bloom explains,

Everybody loves nonintuitive findings, so researchers are motivated to explore the strange and nonrational ways in which the mind works. It’s striking to discover that when assigning punishment to criminals, people are influenced by factors they consciously believe to be irrelevant, such as how the attractive criminals are, and the color of their skin. This finding will get published in the top journals, and might make its way into the Science section of The New York Times. But nobody will care if you discover that people’s feelings about punishments are influenced by the severity of the crimes or the criminals’ past record. This is just common sense.

Whether this bias in what people find interesting is reasonable is a topic for another day. What’s important to remember is that some scholars and journalists fall into the trap of thinking that what they see in journals provides a representative picture of how we think and act.

Or, put another way,

Statistically significant…doesn’t mean actually significant. Just because something has an effect in a controlled situation doesn’t mean that it’s important in real life. Your impression of a résumé might be subtly affected by its being presented to you on a heavy clipboard, and this tells us something about how we draw inferences from physical experience when making social evaluations. Very interesting stuff. But this doesn’t imply that your real-world judgments of job candidates have much to do with what you’re holding when you make those judgments. What will probably matter much more are such boringly relevant considerations as the candidate’s experience and qualifications.

Bloom concludes, “Yes, we are physical beings, and yes, we are continually swayed by factors beyond our control. But as Aristotle recognized long ago, what’s so interesting about us is our capacity for reason, which reigns over all. If you miss this, you miss almost everything that matters.”

Worth the read.

The European Union (Europe) or Eurasian Union (Moscow): The Ukrainian Protests

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Protest rally in Maidan square, Kiev, Dec. 2013
Protest rally in Maidan square, Kiev, Dec. 2013

President Viktor Yanu­kovych apparently “signed a deal with opposition leaders to dilute his powers, form a caretaker government and hold early elections” according to The Washington Post. I know it is easy to get behind on international news and politics, so the Post had a wonderful piece that answers some of the most basic questions regarding the Ukrainian situation and the protests involved. The protests revolve around Yanukovych’s rejection of greater economic integration with the European Union. But why? As a recent article in The New York Review of Books explains, this integration was

an aspiration that for many Ukrainians means something like the rule of law, the absence of fear, the end of corruption, the social welfare state, and free markets without intimidation from syndicates controlled by the president.

The course of the protest has very much been influenced by the presence of a rival project, based in Moscow, called the Eurasian Union. This is an international commercial and political union that does not yet exist but that is to come into being in January 2015. The Eurasian Union, unlike the European Union, is not based on the principles of the equality and democracy of member states, the rule of law, or human rights.

On the contrary, it is a hierarchical organization, which by its nature seems unlikely to admit any members that are democracies with the rule of law and human rights.

The most interesting bit, however, was the following about the claim that these protestors are Nazis:

Why exactly do people with such views think they can call other people fascists? And why does anyone on the Western left take them seriously? One line of reasoning seems to run like this: the Russians won World War II, and therefore can be trusted to spot Nazis. Much is wrong with this. World War II on the eastern front was fought chiefly in what was then Soviet Ukraine and Soviet Belarus, not in Soviet Russia. Five percent of Russia was occupied by the Germans; all of Ukraine was occupied by the Germans. Apart from the Jews, whose suffering was by far the worst, the main victims of Nazi policies were not Russians but Ukrainians and Belarusians. There was no Russian army fighting in World War II, but rather a Soviet Red Army. Its soldiers were disproportionately Ukrainian, since it took so many losses in Ukraine and recruited from the local population. The army group that liberated Auschwitz was called the First Ukrainian Front.

There is much, much more. With Russia’s recent barring of journalist and former Moscow correspondent David Satter just prior to the Sochi Olympics, it might be worth taking a look at this troubled country and the people who suffer because of it.

The Dalai Lama and…Capitalism?

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The American Enterprise Institute hosted His Holiness the Dalai Lama for an event titled “Happiness, Free Enterprise, and Human Flourishing.” The two panels were “Moral Free Enterprise: Economic Perspectives in Business and Politics” and “Unlocking the Mind and Human Happiness.” The speakers (besides the Dalai Lama) included Arthur C. Brooks (AEI), Jonathan Haidt (New York University), Glenn Hubbard (Columbia University), Daniel S. Loeb (Third Point LLC), Diana Chapman Walsh (MIT), Richard Davidson (University of Wisconsin), Otto Scharmer (MIT), and Arthur Zajonc (Mind & Life Institute). “This is such a wonderful day when a religious leader particularly loved on the left comes to a free market think tank,” said Jonathan Haidt (as quoted in a Yahoo News piece). “It makes me think we can break out of the rut we’ve been in for so many years in our arguments about business and government.”

Check it out.

The Economics of Sex

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Controversial sociologist Mark Regnerus had a Slate article a couple years back entitled “Sex Is Cheap,” which argues that the “market price” of sex is currently very low. The Austin Institute for the Study of Family and Culture (where Regnerus is a senior fellow) recently put out a short video called “The Economics of Sex,” which seems to cover a lot of the same material. Check it out below.