A striking article by Robert Murphy on Mises today, about the earlier Depression of 1920-21, and how raising interest rates was the painful, but quick way out.
"... the high rates of the 1920–1921 depression had certainly been painful, but they had cleaned the rot out of the structure of production very thoroughly....Going into 1923, the capital structure in the United States was a lean, mean, producing machine."
Saturday, February 07, 2009
Friday, February 06, 2009
Personal choices
I have always been a great believer in personal choice, as I defended in the recent discussion on drug use.
Sometimes, however, I feel a surge of the draconian autocrat that comes from the Prussian part of my ancestry.
Such is the case today: Nadya Suleman, the mother of the octuplets born this week, is already the mother of six other children. She is unmarried, unemployed, and on disability for a back injury at work 10 years ago. In spite of all of those problems, and the fragile state of the US economy, she found a doctor willing to implant another 6 embryos in her womb (2 split later).
Sometimes, however, I feel a surge of the draconian autocrat that comes from the Prussian part of my ancestry.
Such is the case today: Nadya Suleman, the mother of the octuplets born this week, is already the mother of six other children. She is unmarried, unemployed, and on disability for a back injury at work 10 years ago. In spite of all of those problems, and the fragile state of the US economy, she found a doctor willing to implant another 6 embryos in her womb (2 split later).
Investment Trust success stories
The Telegraph lists 20 ITs that have increased dividends annually for at least the last 20 years.
One factor helping these companies, says the article, is that they are permitted to keep up to 15% as cash in reserve. How much would you, now, be keeping in reserve?
One factor helping these companies, says the article, is that they are permitted to keep up to 15% as cash in reserve. How much would you, now, be keeping in reserve?
A warning for world-improvers
There are so many proposals to improve the world, and such a short supply of humility and plain, ordinary fear of change. Take spelling, for example, and read this logically-refined paragraph:
Kontinuing cis proses, year after year, we would eventuali hav a reali sensibl writen langug. By 1975, wi ventyur tu sei, cer wud bi no mor uv ces teribli trublsum difikultis, wic no tu leters usd to indikeit ce seim nois, and laikwais no tui noises riten wic ce seim leter. Even Mr. Yaw,wi beliv, wud be hapi in ce nog cat his drims fainali keim tru.
For the whole thing, click here. (There are other versions doing the rounds, since the idea is so good.) (htp: Paddington)
Kontinuing cis proses, year after year, we would eventuali hav a reali sensibl writen langug. By 1975, wi ventyur tu sei, cer wud bi no mor uv ces teribli trublsum difikultis, wic no tu leters usd to indikeit ce seim nois, and laikwais no tui noises riten wic ce seim leter. Even Mr. Yaw,wi beliv, wud be hapi in ce nog cat his drims fainali keim tru.
For the whole thing, click here. (There are other versions doing the rounds, since the idea is so good.) (htp: Paddington)
Agreement is not the same as 50:50 compromise
For a technical discussion of how we should adjust our opinions scientifically in debate with others, see Overcoming Bias. This follows an earlier post on the impossibility of disagreeing unless you (rather unreasonably) assume the other person is somehow misinformed, wrong-headed or stupid.
It does look very valuable, though I'd be grateful for a clearer explanation, notwithstanding the participants evidently think they've already given it.
There's a story about Einstein from his time at Princeton. In the lecture room, he discussed his ideas in free-ranging talks, which were so revolutionary and complex that the students begged him to put some formulae on the board so they could follow him properly. He promised he would, and next time gave another dense, extempore peroration, at the end of which he said, "It's as easy as two and two make four". He then walked to the board and wrote "2 + 2 = 4". That's mathematicians for you.
It does look very valuable, though I'd be grateful for a clearer explanation, notwithstanding the participants evidently think they've already given it.
There's a story about Einstein from his time at Princeton. In the lecture room, he discussed his ideas in free-ranging talks, which were so revolutionary and complex that the students begged him to put some formulae on the board so they could follow him properly. He promised he would, and next time gave another dense, extempore peroration, at the end of which he said, "It's as easy as two and two make four". He then walked to the board and wrote "2 + 2 = 4". That's mathematicians for you.
Go drugs!
Gary Becker thinks we should legalize and tax drugs. Look at how this approach has decimated alcohol and tobacco usage, for example.
And the joys to be had from drugs! As the Moroccan saying goes,"A pipe of khif before breakfast is worth a hundred camels in the courtyard." Though I think the Devils' Dictionary needs updating: we need slogans like, "A six-pack of wife-beater in the morning is worth a hundred business calls", "Sixty a day is worth death before sixty", "Dropping a tab is worth the risk of grinning at the backs of your hands for the rest of your life."
So what's it to be, Falstaff or the pain-in-the-mule Puritans?
I think it's to do with work. In the old days, the ordinary person couldn't afford (financially or otherwise) to be almost constantly intoxicated; now, most of us are richer than Roman Emperors: central heating, carpets, hot water, ice cream, multimedia entertainment 24/7, no starvation if you don't work. Once, the Tree of Idleness was for the few surviving old men, who were past it; now, while we still have The Energy of Slaves (ie. machines and fossil fuels) to do the hard stuff for us, we don't know what to do with ourselves.
Freedom makes you fall apart.
And the joys to be had from drugs! As the Moroccan saying goes,"A pipe of khif before breakfast is worth a hundred camels in the courtyard." Though I think the Devils' Dictionary needs updating: we need slogans like, "A six-pack of wife-beater in the morning is worth a hundred business calls", "Sixty a day is worth death before sixty", "Dropping a tab is worth the risk of grinning at the backs of your hands for the rest of your life."
So what's it to be, Falstaff or the pain-in-the-mule Puritans?
I think it's to do with work. In the old days, the ordinary person couldn't afford (financially or otherwise) to be almost constantly intoxicated; now, most of us are richer than Roman Emperors: central heating, carpets, hot water, ice cream, multimedia entertainment 24/7, no starvation if you don't work. Once, the Tree of Idleness was for the few surviving old men, who were past it; now, while we still have The Energy of Slaves (ie. machines and fossil fuels) to do the hard stuff for us, we don't know what to do with ourselves.
Freedom makes you fall apart.
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