IMF: Stop With the Protectionism

Image result for protectionismA new IMF publication finds that “[t]he waning pace of trade liberalization over the past few years and the recent uptick in protectionist measures could be limiting the sustained policy-driven reductions in trade costs achieved during 1985–2007, which provided a strong impetus to trade growth (Evenett and Fritz 2016; Hufbauer and Jung 2016)” (pg. 63). Their suggestion? “[R]esisting all forms of protectionism and reviving the process of trade liberalization to dismantle remaining trade barriers” in order to “provide much-needed support for trade growth, including through possibly kicking off a new round of global value chain development” (pg. 86). The Wall Street Journal reports,

Rising protectionism, record debt levels and a continuing economic malaise in wealthy countries will drag on global growth next year despite a turnaround in several key emerging markets, the International Monetary Fund said Tuesday. Global growth should only marginally pick up in 2017 to 3.4% from 3.1% this year, the fund said in its latest World Economic Outlook, despite policy makers pushing central bank stimulus into uncharted territories…A political backlash against the perceived negative effects of globalization threatens to undermine an already-weak and precarious recovery, the IMF warned.

“Subpar growth at recent levels risks feeding on itself through the negative economic and political forces it is unleashing,” IMF chief economist Maurice Obstfeld said, referring in large part to the surge in trade barriers around the world and the rise in opposition to free trade and immigration in the politics of the U.S. and Europe. Fearful of a trend toward protectionism when the global economy is already struggling with deflation risks, the IMF highlighted the potential shocks to growth from a sudden increase in tariffs and other trade barriers.

…The IMF also took pains to caution policy makers against the temptation to revert to protectionism as trade growth stalls in the low-growth era. Such anti-trade trends risk tilting the world economy deeper into a long-term funk. The fund estimated that a surge in trade barriers around the globe that pushed up import prices by 10% could sap nearly 2 percentage points off world growth over five years, force a 15% decline in exports and pull investment down by more than 4%.

This makes the anti-trade rhetoric of politicians all the more frightening. For example, take Donald Trump’s ill-conceived anti-NAFTA stance, especially in regards to the automobile industry. The WSJ again:

U.S. automotive competitiveness is highly dependent on global free trade. According to the Mexico City-based consulting firm De la Calle, Madrazo, Mancera, 37% of the U.S.’s imported auto components came from Mexico and Canada in 2015. This sourcing from abroad is important to good-paying U.S. auto-assembly jobs. But parts also flow the other way. U.S. parts manufacturers sent 61% of their exports to Mexico and Canada in 2015.

This synergy has made the U.S. auto industry attractive for investment. In the aftermath of the 2008 financial crisis investment in the auto sector contracted. But from 2010-14 almost $70 billion was invested in the North American automotive industry. Mr. Trump claims that investment is going to Mexico but two-thirds of it went into the U.S., according to a January 2015 report by the Michigan-based Center for Automotive Research.

This investment dynamism helped generate 264,800 new U.S. jobs in motor-vehicle production and parts between January 2010 and June 2016, according to the Bureau of Labor Statistics. That’s a 40% increase in employment despite the increasing trend toward robotics in the industry. Shut down Nafta and these workers and future job seekers will pay.

The kind of protectionist rhetoric and policies we’ve seen in both Europe and the U.S. is worrisome to IMF managing director Christine Lagarde and World Bank president Jim Yong Kim, with Lagarde going so far as to call it “economic malpractice.”

Let’s hope these recent populist movements are just a blip amongst the increasing economic freedom worldwide.

2016 NAS Report on GMOs: Safe With Relatively Minor Concerns

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The National Academy of Sciences released a comprehensive report earlier this year that “builds on previous related Academies reports published between 1987 and 2010 by undertaking a retrospective examination of the purported positive and adverse effects of GE crops and to anticipate what emerging genetic-engineering technologies hold for the future.” Here are the highlights from the press release:

  • Effects on human health: “The committee carefully searched all available research studies for persuasive evidence of adverse health effects directly attributable to consumption of foods derived from GE crops but found none. Studies with animals and research on the chemical composition of GE foods currently on the market reveal no differences that would implicate a higher risk to human health and safety than from eating their non-GE counterparts. Though long-term epidemiological studies have not directly addressed GE food consumption, available epidemiological data do not show associations between any disease or chronic conditions and the consumption of GE foods. There is some evidence that GE insect-resistant crops have had benefits to human health by reducing insecticide poisonings. In addition, several GE crops are in development that are designed to benefit human health, such as rice with increased beta-carotene content to help prevent blindness and death caused by vitamin A deficiencies in some developing nations.”
  • Effects on the environment: “The use of insect-resistant or herbicide-resistant crops did not reduce the overall diversity of plant and insect life on farms, and sometimes insect-resistant crops resulted in increased insect diversity, the report says. While gene flow – the transfer of genes from a GE crop to a wild relative species – has occurred, no examples have demonstrated an adverse environmental effect from this transfer. Overall, the committee found no conclusive evidence of cause-and-effect relationships between GE crops and environmental problems. However, the complex nature of assessing long-term environmental changes often made it difficult to reach definitive conclusions.”
  • Effects on agriculture: “The available evidence indicates that GE soybean, cotton, and maize have generally had favorable economic outcomes for producers who have adopted these crops, but outcomes have varied depending on pest abundance, farming practices, and agricultural infrastructure. Although GE crops have provided economic benefits to many small-scale farmers in the early years of adoption, enduring and widespread gains will depend on such farmers receiving institutional support, such as access to credit, affordable inputs such as fertilizer, extension services, and access to profitable local and global markets for the crops. Evidence shows that in locations where insect-resistant crops were planted but resistance-management strategies were not followed, damaging levels of resistance evolved in some target insects. If GE crops are to be used sustainably, regulations and incentives are needed so that more integrated and sustainable pest-management approaches become economically feasible. The committee also found that in many locations some weeds had evolved resistance to glyphosate, the herbicide to which most GE crops were engineered to be resistant. Resistance evolution in weeds could be delayed by the use of integrated weed-management approaches, says the report, which also recommends further research to determine better approaches for weed resistance management. Insect-resistant GE crops have decreased crop loss due to plant pests. However, the committee examined data on overall rates of increase in yields of soybean, cotton, and maize in the U.S. for the decades preceding introduction of GE crops and after their introduction, and there was no evidence that GE crops had changed the rate of increase in yields.[ref]I’m surprised by this finding considering there are numerous studies that find GMOs increase crop yields.[/ref] It is feasible that emerging genetic-engineering technologies will speed the rate of increase in yield, but this is not certain, so the committee recommended funding of diverse approaches for increasing and stabilizing crop yield.”

Add this to the statements by the World Health Organization, the American Medical Association, and the American Association for the Advancement of Science that GMOs are safe. Concerns over increased chemical use may be somewhat legitimate, though this tends to be complicated. However, fears about herbicides like glyphosate are often overblown, seeing that both the EPA and the U.N.’s Food and Agriculture Organization and WHO declare that it is not a cancer risk. Furthermore, it is important to note that uncontrolled weeds are actually a potentially huge threat, making weedkillers all the more important. As for increased herbicide resistance, science writer Ronald Bailey explains in his book The End of Doom: Environmental Renewal in the Twenty-First Century,

What about “superweeds”? Again, the evolution of resistance by weeds to herbicides is nothing new and is certainly not a problem specifically related to genetically enhanced crops. As of April 2014, the International Survey of Herbicide Resistant Weeds reports that there are currently 429 uniquely evolved cases of herbicide resistant weeds globally involving 234 different species. Weeds have evolved resistance to 22 of the 25 known herbicide sites of action and to 154 different herbicides. Herbicide resistant weeds have been reported in 81 crops in sixty-five countries. A preliminary analysis by University of Wyoming weed scientist Andrew Kniss parses the data on herbicide resistance from 1986 to 2012. He finds no increase in the rate at which weeds become resistant to herbicides after biotech crops were introduced in 1996. Since Roundup (glyphosate) is the most popular herbicide used with biotech crops, have the number of weed species resistant to Roundup increased? Kniss finds that the development of Roundup resistant weeds has occurred more frequently among non biotech crops. Glyphosate resistant weeds evolved due to glyphosate use, not directly due to GM crops,” he points out. “Herbicide resistant weed development is not a GMO problem, it is a herbicide problem (pgs. 155-156).

In summary, GMOs are indeed safe with relatively minor concerns. Or, as Slate‘s William Saletan puts it,

The more you learn about herbicide resistance, the more you come to understand how complicated the truth about GMOs is. First you discover that they aren’t evil. Then you learn that they aren’t perfectly innocent. Then you realize that nothing is perfectly innocent. Pesticide vs. pesticide, technology vs. technology, risk vs. risk—it’s all relative. The best you can do is measure each practice against the alternatives. The least you can do is look past a three-letter label.

Paying Their Fair Share

Making “the rich” pay their “fair share” has been a talking point for some time and became a bit of a slogan during the presidential race. Drawing on the Congressional Budget Office’s most recent report, the Tax Foundation posts,

One of the main takeaways from this year’s report is that the richest Americans pay a lot in taxes. In 2013, the top 1 percent of households paid an average of 34.0 percent of their income in federal taxes. To compare, the middle 20 percent of households paid only 12.8 percent of their income in taxes.

Moreover, taxes on the rich are much higher than they’ve been in recent years. Between 2008 and 2012, the top 1 percent of households paid an average tax rate of 28.8 percent. However, in 2013, this figure spiked to 34.0 percent, as a result of tax increases in the “fiscal cliff” deal and the Affordable Care Act.

We’ve known for a while that taxes rose on the rich in 2013, but the new CBO report puts in perspective exactly how high taxes on the rich are now, compared to the last three decades. For instance, in 2013, the top 1 percent of taxpayers paid a higher tax rate (34.0 percent) than in the year President Reagan took office (33.2 percent).

According to the CBO, the federal tax system is now “the most progressive it has been since at least the mid-1990s.” Writing in The Atlantic, Derek Thompson notes that “the government is doing more to fight inequality right now than any year on record.”

Economist Mark Perry provides additional insights (as he has in the past) to the CBO report. For example,

  • The bottom three income quintiles are net recipient households, meaning they receive more in transfer payments than they pay in federal taxes. The top two could be designated as net payer households. The top income quintile in particular “finance[s] almost 100% of the transfer payments to the bottom 60%, as well as almost 100% of the tax revenue collected to run the federal government.”

  • The bottom three quintiles receive “more than $1 in government transfer payments for every $1 paid in federal taxes in 2013. The fourth quintile consists of minor net payer households, receiving “slightly less than a dollar in transfer payments on average ($0.85) for every $1 paid in federal taxes. In contrast, “net payer households” in the top income quintile received only $0.17 in government transfer payments per $1 paid in federal taxes in 2013.”

 

  • “Adjusting for government transfers received, the light blue bars in the chart are calculated by dividing “Federal taxes paid minus government transfers received” (row 6 in the table) into Before-Tax Income (row 3), and show average federal tax rates by income quintile after government transfers. For example, the average “net recipient household” in the lowest income quintile received a “negative tax” payment of $8,800 in 2013, had an average before-tax income of $25,400, for a negative federal tax rate of 35%…This further demonstrates that after transfer payments, Americans in the bottom 60% by income are “net recipient households” with negative federal income tax rates, while only households in the top two “net payer” income quintiles had positive federal income tax rates after transfers in 2013.”

Perry concludes,

The CBO study released [in June] provides ample evidence that the richest Americans are paying their “fair share” of federal taxes. In fact, the richest 20% of Americans by income aren’t just paying a share of federal taxes that would be considered “fair” – it goes way beyond “fair” – they’re shouldering almost 100% of the entire federal tax burden of transfer payments and all other non-financed government spending.

…It’s also important to note here that the US has the most progressive federal tax system among all OECD-24 countries, see Tax Foundation president Scott Hodge’s article “No Country Leans on Upper-Income Households as Much as the US.” Specifically, the top 10% of American households pay 45.1% of all income taxes (both personal income and payroll taxes combined), which is the highest tax share for that group in any of the OECD-24 countries and far above the 31.6% average for the tax burden of the top income decile. Accounting for the income share of the top income decile, the US also has the highest ratio of the income tax share of the top 10% (45.1%) to the total income share of that group (33.5%) of 1.35 times, compared to the OECD average ratio of only 1.11.[ref]You can see more commentary on the CBO report in Scott Winship’s Forbes article.[/ref]

Healthcare Inequality

Image result for healthcare insuranceA June 2016 study from George Mason University’s Mercatus Center finds “that both scholars and politicians have largely overlooked a key contributor to earnings inequality: the role of rapidly increasing healthcare costs.” The study “analyzes the link between earnings inequality and rising healthcare costs using unpublished data from the Bureau of Labor Statistics. The study finds that the increasing cost of employer-provided healthcare benefits accounts for a significant portion of rising earnings inequality.[ref]It doesn’t help that premiums have been increasing under Obamacare.[/ref] The study urges policymakers interested in addressing earnings inequality to shift their focus from failed redistributive policies to policies aimed at lowering the cost of healthcare benefits.” The key findings:

  • Most previous analyses of inequality focused exclusively on earnings, ignoring total compensation (including healthcare benefits). This oversight significantly inflated the perceived severity of workers’ earnings inequality.
  • While dollar earnings have grown significantly faster for higher-income workers than for lower-income workers, total compensation (including increasingly expensive healthcare benefits) has not.
  • Surging healthcare costs have depressed the annual earnings growth rate for lower-paid, full-time workers four times as much as for the top 1 percent of workers.
  • Redistributive policies do not address the root cause of the apparently increasing inequality, and may be counterproductive because of their negative implications for overall economic growth.
  • The key to lessening earnings inequality is to reduce the rate of increase for healthcare costs.

Check it out.

The Evidence for Syringe Exchange Programs and Drug Decriminalization

Image result for syringe exchange programAn article in The New York Times last month highlights some important policies that could be more effective than our currently abysmal War on Drugs: syringe exchange programs. “Evidence abounds that they work,” writes economist Austin Frakt.

A study of the first American program–started in the Tacoma, Wash., area in 1988–found that use of the exchange was associated with a greater than 60 percent reduction in the risk of contracting hepatitis B or C. Another study of over 1,600 injection drug users in New York found that those who didn’t use a syringe exchange in the early 1990s were more than three times as likely to contract H.I.V.

It turns out these programs are also cheaper for taxpayers:

A cost-effectiveness analysis published in 2014 replicated the findings of others that came before it: A dollar invested in syringe exchange programs saves at least six dollars in avoided costs associated with H.I.V. alone. 

But don’t these programs promote drug use and crime? Well, “according to many studies, that isn’t so. Instead, they are associated with increased participation in treatment programs.” When taken with the evidence of the positive effects of Portugal’s drug decriminalization, it seems we have multiple reasons to give up the War on Drugs and the programs to erect in its stead.

What Happened?: Republicans on Trade

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I’ve mentioned in passing the oddity of Democrats being more supportive of free trade than their supposedly capitalism-loving Republican opponents. A brand new poll by POLITICO and the Harvard T.H. Chan School of Public Health further confirms this shift. Some of the findings:

  • 47% of Republicans think free trade has hurt their communities, twice that of Democrats (24%). Only 18% of Republicans think free trade has helped, while nearly twice as many Democrats do (33%).
  • When broken down by country (Canada, EU, Japan, South Korea, Mexico, China) and by party, Republicans exceed both Democrats and Independents on every country in claiming that trade hurts. Over 60% of Republicans think trade with Mexico and China have hurt Americans. Democrats were surprisingly the lowest on every country.
  • “54% of Democrats believe that free trade has lost more U.S. jobs than it has created, compared to 66% of Independents and 85% of Republicans. Similarly, 38% of Democrats believe free trade has lowered U.S. wages, compared to 50% of Independents and 66% of Republicans. Only 8% of Republicans, 11% of Independents, and 19% of Democrats think free trade has led to higher wages for U.S. workers” (pg. 3).

There’s much more, including attitudes about the state of the economy and the Affordable Care Act. As one who grew up in a conservative household, I find this all rather worrying. As Trump’s senior policy adviser and economist Peter Navarro told POLITICO, “There’s been a schism for a long time between registered Republicans and the party leadership. That was the essence of the primary election. You had a group of insider politicians singing the same old globalization song. And one candidate saying the emperor has no clothes.” The problem, of course, is that the emperor is fullyclothed.

The Republican party has become a party of mercantilists.

Protest Votes Exist

There's a reason for using a pic of an iceberg that you'll see below. But if it made you think of the Titanic well, this election year, that fits, too. (Photo by AWeith, CC BY-SA 4.0)
There’s a reason for using a pic of an iceberg that you’ll see below. But if it made you think of the Titanic well, this election year, that fits, too. (Photo by AWeith, CC BY-SA 4.0)

A Facebook friend shared a link to Clay Shirky’s Medium post (There’s No Such Thing As A Protest Vote) and tagged me. I had thoughts, and so I thought I’d share them.

I’m not sure if Shirky’s slapshot case is meant as a serious argument or merely a pretext for a rant. This paragraph, which comes towards the end when the tone shifts abruptly from reasoned to strident, highlights my confusion:[ref]Never go full rant[/ref]

Throwing away your vote on a message no one will hear, and which will change no outcome, is sometimes presented as ‘voting your conscience’, but that’s got it exactly backwards; your conscience is what keeps you from doing things that feel good to you but hurt other people. Citizens who vote for third-party candidates, write-in candidates, or nobody aren’t voting their conscience, they are voting their ego, unable to accept that a system they find personally disheartening actually applies to them.

Nevertheless, the first 1,000 words present a case, and so we’ll take it on the merits. But first, let us simply observe that accusations of disloyalty are Plan A when it comes to browbeating recalcitrant idealists into conformity.That’s not to say there’s never truth to the idea that we should sometimes put our personal preferences aside for the sake of a group’s welfare. It is to say that deploying the exact logic under which despotic regimes have justified silencing voices of protest throughout history ought to be treated as a red flag. Besides which, there’s a big difference between issues of personal taste and issues of conscience. That’s something we’ll return to in the end.

Shirky’s argument about protest votes boil down to two claims. First, it’s a “message no one will hear” and second, it “will change no outcome.” Both these claims are false.

When it comes to “no one will hear,” Shirky argues that since it doesn’t change the outcome of the vote, not voting and voting for a third-party candidate are equivalent. His argument seems to be that, since we can’t guess why a voter would pick Gary Johnson or Jill Stein or to abstain altogether, no information is transmitted. But if no information is transmitted, then we ought to be able to say absolutely nothing whatsoever about the differences in political preference between a group of Gary Johnson voters, a group of Jill Stein voters, and a group of non-voters. But we can infer all kinds of things about the preferences of these groups from the votes they cast. What’s more, if we can’t derive why they voted from the who they voted for, then that applies to voters who pick Hillary Clinton or Donald Trump as well. If we can’t say anything about third-party voters or non-voters based on their votes (or lack thereof), then we can’t say anything about anybody based on voting behavior.

On the other hand, maybe Shirky isn’t saying that it’s impossible to derive the why from the who, but just that nobody will take the trouble to do the derivation: “But it doesn’t matter what message you think you are sending, because no one will receive it. No one is listening.” This approach doesn’t fly either. As Shirky points out, in a parliamentary system the coalition-building happens after the votes are cast when various small, relatively ideologically pure parties have to form a coalition to govern. In a 2-party, winner-take-all system the coalition-building happens before the votes are cast, with the Republican and Democratic parties pulling together various constituencies to form coalitions. But how does he think that this happens if the respective parties don’t pay very careful attention to what they can infer about voters from every source available, including third-party votes? It is emphatically not the case that “no one is listening.” We have an entire industry of pollsters, analysts, and consultants who make a living by listening to the signals that voters send, and a protest vote is a pretty clear signal.

It’s easy to see how the argument that protest votes “will change no outcome,” falls immediately after the argument that they are a “message no one will hear.” The Democratic and Republican parties are not going to spend millions and millions of dollars every year on small armies of pollsters, analysts, and consultants to infer voter preferences for the purpose of crafting their coalition and then just ignore the results.

If literally the only thing that you are willing to consider is the result of one, particular election then–and only then–does it make sense to say that protest votes are indistinguishable from non-voting and therefore don’t exist. But pretending those future elections don’t exist doesn’t actually mean that they don’t.

icebergs-and-elections

If you want to change the behavior of one of the two major parties, then the best way to do it is not to stay home, but rather to vote for someone else. If you would like to change one of the two major parties to be more like the other one, than by all means switch from R to D or from D to R. In that case, protest votes don’t enter into it. But if you wan to move either (or both) of the major parties in a direction neither is amenable to, then the best and clearest way to send that signal is through a third party.

Of course, there is a cost associated with that. The protest vote is going to have no impact on today’s election and only a possible impact on future elections. And so the most reasonable theory of protest voting is to attempt to weigh the benefit of sending a corrective signal for the future against the cost of not influencing an election in the present. This is a very, very difficult calculation to make and the stakes are high. That is why reasonable people can come to differing conclusions, even when their political views are quite similar.

Notably, however, the simplest and most straight-forward explanation of protest voting is omitted from Shirky’s piece, which posits only three options: boycott, defection, or “step to third-party victory.” Each of these options has some validity to it, but none of them are as potent or as simple as the one given here. Most tellingly: none of them incorporate Shirky’s own analysis of the incentives of coalition-building in a 2-party system. Defection is closest to what I have in mind, but Shirky explains it only in terms of simplistic: “voters believe they can force a loss on either the Democrats or the Republicans, and thus make that party adopt their preferred policies, rather than face another such loss in the future.”

It is neither necessary nor possible for protest votes to “force a loss.” It is not possible for the simple reason that–like any complex event–there is never one, singular explanation for the outcome of a vote. It is not necessary because the two major parties are in constant competition with each other to build the bigger coalition. Protest voters do not need to threaten or coerce them–although that might help–but only to clearly communicate what they want.

One major thing to keep in mind: the entire point of having an election is that we don’t know ahead of time what people want. If we had perfect knowledge of preferences, we wouldn’t need to vote.[ref]We would still need a system for integrating those preferences into laws and policies and government actions, but that doesn’t require elections.[/ref] Ergo, the parties don’t actually know–with perfect precision–what constituencies exist out there and how best to appeal to them. Protest votes are an extreme form of conveying that information, and that is a much lower bar than the idea of having to “force a loss.”

Finally, the reactions to protest vote are going to be subtle, temporally distant, and often intentionally muted. They will be subtle because a major party is a coalition: a delicate balance of overlapping constituencies. They do not, with rare and historical exceptions, make abrupt changes in any direction because it threatens the cohesiveness of the overall balance. They will be temporally distant because the very earliest that a party can visibly react is the next election, a minimum of two years away, and in practical terms the lag will be even greater.[ref]It’s not like parties have the power to arbitrarily swap out candidates on a whim based on the most up-to-date information.[/ref] And they will often be intentionally muted because part of the narrative every party tries to present is that it’s always been right, and so changes–especially in reaction to third-party protest votes–will be deliberately downplayed in front of most audiences.

But the fact that the impact of protest votes is not easy to spot doesn’t mean that they don’t exist. To believe that, you’d have to believe either that protest votes convey no useful information about voter preferences or that Democrats and Republicans ignore useful information about voter preferences, neither of which is tenable.

Shirky’s argument is very hard to take seriously on its merits, since it requires us to ignore obviously relevant factors (like future elections) and accept flagrantly false premises (like the idea that protest votes either convey no useful information or that major political parties don’t care about that information). However, it does provide an approximately thousand-word pretext for the real payload of this article, which consists of claims like these:

  1. Advocates of wasted votes don’t bring up this record of universal failure, because their votes aren’t about changing political results. They’re about salving wounded pride.
  2. Citizens who vote for third-party candidates, write-in candidates, or nobody aren’t voting their conscience, they are voting their ego…
  3. The people advocating protest votes believe they deserve a choice that aligns closely with their political preferences.

This makes this whole piece an example of bulverism, a coin terms by C. S. Lewis.

You must show that a man is wrong before you start explaining why he is wrong. The modern method is to assume without discussion that he is wrong and then distract his attention from this (the only real issue) by busily explaining how he became so silly.[ref]I got the quote from Wikipedia, which has the original source.[/ref]

Another explanation of how bulverism works shows how it relates in this case:

Suppose I think, after doing my accounts, that I have a large balance at the bank. And suppose you want to find out whether this belief of mine is “wishful thinking.” You can never come to any conclusion by examining my psychological condition. Your only chance of finding out is to sit down and work through the sum yourself. When you have checked my figures, then, and then only, will you know whether I have that balance or not. If you find my arithmetic correct, then no amount of vapouring about my psychological condition can be anything but a waste of time. If you find my arithmetic wrong, then it may be relevant to explain psychologically how I came to be so bad at my arithmetic, and the doctrine of the concealed wish will become relevant — but only after you have yourself done the sum and discovered me to be wrong on purely arithmetical grounds. It is the same with all thinking and all systems of thought. If you try to find out which are tainted by speculating about the wishes of the thinkers, you are merely making a fool of yourself. You must first find out on purely logical grounds which of them do, in fact, break down as arguments. Afterwards, if you like, go on and discover the psychological causes of the error.[ref]Again, my immediate source is Wikipedia.[/ref]

I’ve also seen this general tactic referred to as “the heuristic of suspicion.” The general idea is that we give very short shrift to what our opponents actually think–to the objective case they are making–and instead rush quickly past it to psychological analysis that takes their error for granted and indulges in self-satisfied dissection of their inferiority. I’m not saying we can indulge in zero time spent on analyzing the motives or intentions of our interlocutors, but I do think we should try to shift the balance onto the arguments at hand and take them seriously. And, on that basis, Shirky’s argument that protest votes are indistinguishable from non-voting, simply do not hold up to any level of scrutiny.

Now, at the very end, I want to return to the first comment I made about personal taste and conscience. Here is the beginning of Shirky’s concluding paragraph:

None of this creates an obligation to vote, or to vote for one of the two viable candidates. It is, famously, a free country, and you can vote for anyone you like, or for no one.

If Shirky really believes that there is no obligation to vote for a major party candidate, than his entire essay collapses into nonsense. The whole point–from start to finish–is that protest voters are selfish egotists who are abdicating their duty and “making the rest of us do the work of deciding.” If that isn’t a violation of an obligation, then what on Earth could be?

That fact that we are allowed under the law to behave in a certain way is not the only nor the final word on what our obligations may or may not be. The set of things that are obligatory (in any sense) and the set of things that are legally required are not the same. So–far from celebrating a genuine sense of freedom in which government refrains from attempting to demarcate the boundaries of the permissible–Shirky is engaging in a kind of totalitarian thinking in which what we must do and what the law requires are assumed–despite all common sense–to be identical.

This is not an incidental misstep. It’s integral to Shirky’s case. After all, if a protest vote is really just a matter of personal preference–if I prefer Candidate Alice to Candidate Bob in the same way in which I prefer rocky road to mint chocolate chip or blue to red–then it would be the height or selfishness to become an absolute stickler on that point to the detriment of the group. This is a world of moral relativism, where all moral decisions are reflections of personal preference and can pretend to no greater validity.

It’s not a very coherent world. In it, Shirky first argues that protest votes are immoral because they place one’s personal preferences ahead of the common good. But, in this incoherent world, Shirky has to immediately repudiate his own argument. You are an arrogant, hypocritical egoist if you vote third party! Not that that means you can’t do it, of course. You can do whatever you’d like. Who am I to judge? I’m not saying. I’m just saying. The whole thing collapses into irrelevant, incomprehensible muttering.

But if there is such a thing as an objective moral reality, then when a person refuses to vote the way you’d like them to out of conscience, you can’t simply browbeat them for being selfish. Perhaps they are! But perhaps they are acting out of an earnestly held believe in a universally applicable moral stand, one that does not suddenly become irrelevant or disposable merely because it is unpopular or inconvenient. And so, in this world, the specifics actually matter. In this world, some people who vote third party are irresponsible and selfish and some are responsible and selfless. It’s frustrating that we can’t always line up the good guys and the bad guys based on how they vote. It’s downright dangerous when we try to do so anyway.

Shirky offers a thin pretense of not telling you how to vote, but in fact he not only tells you how to vote, but specifically who to vote for.[ref]Does anyone think for an instant he is voting for Donald Trump?[/ref] His post has a form of non-judgmentalism but denies the power thereof. I’ll do you the courtesy of not pretending to be neutral. Instead, I’ll just go ahead and tell you what I think you should do without any caveats or qualifications: you should vote, and you should vote informed, and you should vote your conscience. Consider the costs and the benefits of voting for one of the two candidates who will almost certainly win vs. the costs and benefits of voting for a candidate who will almost certainly not win. Take it it seriously, do your homework, and if you’re religious pray for guidance. Then vote accordingly.

And hey, if you’re looking for a silver lining during this awful election, here’s one. In the past, I always felt that there was a clear-cut candidate that should win. There was always a little strain and tension when family or close friends felt the same, but about the other guy. This year, I don’t have that strain. It’s all a mess, and I can see compelling cases for voting in a lot of different ways. I have people I respect voting for Clinton, voting for Trump, voting for Johnson, and voting for McMullin.[ref]No one I know is voting for Stein, that I’m aware of.[/ref] And–for the first time–I actually have absolutely zero reservations about their voting differently than I am. Not to say I agree with all of them–I don’t! I can’t!–but I can see where they are coming from. So that, at least, is a nice side-effect of this ongoing train wreck.

 

The Basics of Syria’s War

There’s an excellent write-up in The New York Times titled “Straightforward Answers to Basic Questions About Syria’s War.” Foreign policy is not my strong suit and so articles like this are extremely helpful. The questions answered include:

  • Who is the Syrian civil war?
  • How did the war happen?
  • Which countries are involved?
  • Why is the war so bloody?
  • Why is it divided by religion?
  • How did the Islamic State form?
  • Why is the refugee crisis so large?

Check it out. It goes nicely with Vox‘s video below.

Think of the Children: Teacher Collective Bargaining

Cornell’s Michael Lovenheim and Alexander Willen had an article earlier this year in the journal Education Next discussing their research regarding teacher collective bargaining. “In this study,” they write,

we present the first evidence on how laws that support teacher collective bargaining affect students’ employment and earnings in adulthood. We do so by first examining how the outcomes of students educated in a given state changed after the state enacted a duty-to-bargain law, and then comparing those changes to what happened over the same time period in states that did not change their collective-bargaining policies.

We find no clear effects of collective-bargaining laws on how much schooling students ultimately complete. But our results show that laws requiring school districts to engage in collective bargaining with teachers unions lead students to be less successful in the labor market in adulthood. Students who spent all 12 years of grade school in a state with a duty-to-bargain law earned an average of $795 less per year and worked half an hour less per week as adults than students who were not exposed to collective-bargaining laws. They are 0.9 percentage points less likely to be employed and 0.8 percentage points less likely to be in the labor force. And those with jobs tend to work in lower-skilled occupations.

Lovenheim and Willen explain how states–beginning with Wisconsin in 1959–began passing “union-friendly legislation.” “Between 1959 and 1987, 33 states passed duty-to-bargain laws (see Figure 1); just 1 (New Mexico) has done so since. Of the 16 states without such a law, 9 have legislation that permits teachers unions and districts to bargain if both sides agree to do so. In the remaining 7 states (Arizona, Georgia, Mississippi, North Carolina, South Carolina, Texas, and Virginia), collective bargaining is prohibited either by statute or by court ruling[.]”

The debate over teacher collective bargaining is heated, which makes empirical evidence all the more important. The researchers found that teacher collective bargaining has several adverse long-term effects on children:

  • Earnings: “Attending school in a state with a duty-to-bargain law for all 12 years of schooling reduces later earnings by $795 dollars per year…This represents a decline in earnings of 1.9 percent relative to the average. Although the individual effect is modest, it translates into a large overall loss of earnings for the nation as a whole. In particular, our results suggest a total loss of $196 billion per year accruing to those who were educated in the 34 states with duty-to-bargain policies on the books.”
  • Hours worked: “exposure to a duty-to-bargain law throughout one’s school years is associated with a decline of 0.49 hours worked per week. This is a 1.4 percent decline relative to the average, and it suggests that a reduction in hours worked is a main driver of the lower earnings.”
  • Wages: “the evidence suggests a negative relationship between collective-bargaining exposure and wages. While this relationship is not statistically significant, it is consistent with our other results and suggests that teacher collective bargaining may also have a modest adverse effect on average wages.”
  • Employment: “when we use the share of individuals who are employed as the outcome variable, we find that duty-to-bargain laws reduce employment. Specifically, exposure to a duty-to-bargain law for all 12 years of schooling lowers the likelihood that a worker is employed by 0.9 percentage points.”
  • Occupational skill level: “being exposed to a duty-to-bargain law for all 12 years of schooling decreases the proportion of such workers in an occupation by almost half of a percentage point (or 0.6 percent relative to the average). This effect is modest in size, but it implies that teacher collective bargaining leads students to work in occupations requiring lower levels of skill.”
  • Educational attainment: “The reduced earnings and labor force participation associated with teacher collective bargaining raise the possibility that affected students may have completed less education. Our analysis, however, finds little evidence of bargaining power having a significant effect on how much schooling students completed…Even if students do not complete fewer years of education, they may be acquiring fewer skills while they are in school.”

The authors note that “in 2011 Wisconsin passed legislation that greatly reduced the ability of teachers to bargain with school districts…and in 2014 Michigan passed a public employee right-to-work law that sought to limit union negotiating power. Not surprisingly, teachers unions and their allies responded to these laws with fierce opposition.” Yet, the “results suggest that lawmakers in Wisconsin and Michigan have evidence on their side.”

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Assessing the Presidential Candidates’ Economic Proposals

A brand new study analyzes the economic proposals of both Trump and Clinton and the results aren’t encouraging. As reported by Financial Times,

US Republican presidential candidate Donald Trump’s protectionist trade policies would send the US into recession, result in the loss of almost 4.8m private sector jobs and lead to shortages of consumer goods such as iPhones, according to the most detailed study yet of his plan.

…The study also offers a sceptical view of Democratic candidate Hillary Clinton’s trade policies, and particularly her opposition to the Trans-Pacific Partnership,[ref]According to a couple new studies, the TPP would increase annual real incomes in the United States by $131 billion and result in net liberalization. And further trade liberalization is a good thing.[/ref] a vast new Pacific Rim trade pact the US has negotiated with Japan and 10 other economies. 

But Mr Trump’s threats to rip up existing US trade agreements and impose punitive 45 per cent tariffs on goods from China and a similar 35 per cent levy on products imported from Mexico would probably set off a trade war and wreak huge damage on the US economy, the study found. 

“While [Mrs] Clinton’s stated trade policy would be harmful, [Mr] Trump’s stated trade policy would be horribly destructive,” said Adam Posen, the institute’s president. “His stated approach to the global economy of waging trade war and protecting uncompetitive special interests would be disastrous for American economic wellbeing and national security.” 

While the “biggest trade-related employment impact…would be in manufacturing and on states such as Washington,” it turns out “the biggest impact on jobs would come as the consequences of a trade war reverberate out across the economy hitting retail distribution hubs, grocery stores, restaurants and even hospitals, the study found. It also would likely lead to shortages and higher prices of consumer goods — including popular products such as smartphones — and potentially even have an impact on US retirement savings.”

That’s exciting.

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