Posts tagged ‘Mother Jones’

My New Rules

Well, I guess it should be obvious that I have not totally given up blogging.  I thank everyone for the nice emails and the nice comments.

However, I am going to try some new rules for the next month, less on my blogging and more on how I engage with the news.

  1. No more Twitter.  For those of you who use Twitter as a news aggregator, my posts will still appear on twitter and from time to time I will post things there that fit on twitter better than in a full blog post.  But I am not going to read my feed, and I am really not going to engage with things in my feed.  Everyone is trying to piss me off, and worse, a few times they have been successful and I have posted juvenile retorts that I later regretted.  I am going to keep a Civ 6 game on my computer and every time I am even tempted to open twitter I will play a couple of turns of Civ 6, worrying instead how to keep Gandhi from nuking me again.  Ironically, I just today ticked over 1000 followers on Twitter, so thanks very much for the support, but if you tweet at me over the next month I won't see it.
  2. Paring down my RSS feed.  I have read partisan political blogs on both sides of the aisle for years.  In fact it has been a point of pride that I read from both sides.  But these folks are all crazy, all the more so because they waste so many electrons arguing their side is sane and the other is crazy.  Everyone on these blogs is trying to just make me angry or afraid.  I am not going to play.  I can get angry and afraid all by myself.  All the political blogs are going out the window for the next month.  The more polemical climate blogs are going out.  Anyone who uses the words "Comey" or "Russia" or "Impeach" or "Benghazi"  in two out of three posts is gone.  Unfortunately, this means, at least for this month, that I cast off Instapundit as well, which is hard for me because Professor Reynolds really gave me my first traffic and helped promote my book.
  3. I have been reading the same stuff for years.  Over time I need to find some like-minded folks interested in discussing policy while still capable of assuming that folks who disagree with them may actually be people of good will.  But I don't want to spend my time in full wonk mode either.  I will call Megan McArdle my benchmark of what I am looking for, and I am accepting recommendations for folks Left and Right of her to read.  Kevin Drum for example on the Left was pretty good on this dimension when his guys were in office but he is much more in team politics mode now (Mother Jones banning me didn't help, particularly since they banned me for referring to the "NRA" in a comment -- particularly funny since I was referring to FDR's National Industrial Recovery Act and not to the much-hated-by-progressives National Rifle Association).

My wife never reads my blog and probably is not too in touch with my existential blogging angst of late, but out of the blue the other day she suggested it would be fun to set up a salon where we could bring together folks across the political spectrum to have discussions of issues of the day.  I thought this was a great idea and have been thinking about how to pull this off.  Unlike what seems to be fashionable today, we actually have friends across the political spectrum -- something that has been easy considering one of our families consists of Massachusetts Progressives (from Antioch, no less!) one is of Texas Conservatives (with oil company executives, no less!).  Our families always got along great but I worry that a few of my friends my be at each others' throats if we have them talking politics in the same room.  So we have to figure out how to discuss policy, not politics.

Another Trump Triumph -- He Has The Left Defending the American Economic System

The American Left generally spends most of its time telling us how much better things are in Denmark or France.  I can't find a lot of reasons to like Trump, but he has apparently convinced the Left that they need to defend the American economic model against other countries.  This post by Kevin Drum at Mother Jones reasd more like what one might expect from Mark Perry at AEI.

"We're a poor country now." I wonder how many people believe that just because Donald Trump keeps saying it? In case anyone cares, the actual truth is in the chart on the right. There's not a single country in the world bigger than 10 million people that's as rich as the US.

I agree!   In fact, not only are American rich richer, but the American middle class is richer and the American poor are richer.  From an earlier post, here is the purchasing power of individuals across the income spectrum in the US vs. Denmark

click to enlarge

US Temperature Trends, In Context

There was some debate a while back around about a temperature chart some Conservative groups were passing around.

Obviously, on this scale, global warming does not look too scary.  The question is, is this scale at all relevant?  I could re-scale the 1929 stock market drop to a chart that goes from Dow 0 to, say, Dow 100,000 and the drop would hardly be noticeable.  That re-scaling wouldn't change the fact that the 1929 stock market crash was incredibly meaningful and had large impacts on the economy.  Kevin Drum wrote about the temperature chart above,

This is so phenomenally stupid that I figured it had to be a joke of some kind.

Mother Jones has banned me from commenting on Drum's site, so I could not participate in the conversation over this chart.  But I thought about it for a while, and I think the chart's author perhaps has a point but pulled it off poorly.  I am going to take another shot at it.

First, I always show the historic temperature anomaly on the zoomed in scale that you are used to seeing, e.g.  (as usual, click to enlarge)

click to enlarge

The problem with this chart is that it is utterly without context just as much as the previous chart.  Is 0.8C a lot or a little?  Going back to our stock market analogy, it's a bit like showing the recent daily fluctuations of the Dow on a scale from 16,300 to 16,350.  The variations will look huge, much larger than either their percentage variation or their meaningfulness to all but the most panicky investors.

So I have started including the chart below as well.  Note that it is in Fahrenheit (vs. the anomaly chart above in Celsius) because US audiences have a better intuition for Fahrenheit, and is only for the US vs. the global chart above.  It shows the range of variation in US monthly averages, with the orange being the monthly average daily maximum temperature across the US, the dark blue showing the monthly average daily minimum temperature, and the green the monthly mean.  The dotted line is the long-term linear trend

click to enlarge

Note that these are the US averages -- the full range of daily maximums and minimums for the US as a whole would be wider and the full range of individual location temperatures would be wider still.   A couple of observations:

  • It is always dangerous to eyeball charts, but you should be able to see what is well known to climate scientists (and not just some skeptic fever dream) -- that much of the increase over the last 30 years (and even 100 years) of average temperatures has come not from higher daytime highs but from higher nighttime minimum temperatures.  This is one reason skeptics often roll their eyes as attribution of 15 degree summer daytime record heat waves to global warming, since the majority of the global warming signal can actually be found with winter and nighttime temperatures.
  • The other reason skeptics roll their eyes at attribution of 15 degree heat waves to 1 degree long term trends is that this one degree trend is trivial compared to the natural variation found in intra-day temperatures, between seasons, or even across years.  It is for this context that I think this view of temperature trends is useful as a supplement to traditional anomaly charts (in my standard presentation, I show this chart scale once and the standard anomaly chart scale further up about 30 times, so that utility has limits).

Disney's Amazing Star Wars Deal, Which Might Help Fill In Disney's Amazing ESPN Profit Hole

How did Disney buy Star Wars for only $4 billion?  I first saw this question asked by Kevin Drum, though I can't find the link (and I am not going to feel guilty about it after Mother Jones banned me for some still-opaque reason).  But Disney is going to release a new movie every year, and if it is anything like the Marvel franchise, they are going to milk it for a lot of money.  Plus TV tie-ins.  Plus merchandising.  Plus they are rebuilding much of their Hollywood Studios park at DisneyWorld in a Star Wars theme.

The answer is that this is the kind of deal that makes trading in a free market a win-win rather than zero-sum.  Lucas, I think, was played out and had no ability, or no desire, to do what it would take to make the franchise worth $4 billion.  On the flip side Disney is freaking good a milking a franchise for all its worth (there is none better at this) and so $4 billion is starting to appear cheap from their point of view.

By the way, Disney is going to need the profits from Star Wars to fill in the hole ESPN is about to create.  A huge percentage of the rents in the cable business have historically flowed to ESPN, which is able to command per-subscriber fees from cable companies that dwarf any other network. Times are a-changin' though, as pressure increases from consumers to unbundle.  If cable companies won't unbundle, then consumers will do it themselves, cutting the cable and creating their own bundles from streaming offerings.

ESPN is already seeing falling subscriber numbers, and everyone thinks this is just going to accelerate.  ESPN is in a particularly bad position when revenues fall, because most of its costs are locked up under long-term contracts for the acquisition of sports broadcasting rights. It can't easily cut costs to keep up with falling revenues.  It is like a bank that has lent long and borrowed short, and suddenly starts seeing depositors leave.   And this is even before discussing competition, which has exploded -- every major pro sports league has its own network, major college athletic conferences have their own network, and competitors such as Fox and NBC seem to keep adding more channels.

Achievement Unlocked: Banned by Mother Jones

Not really sure what I did to reach this achievement, but somehow I got banned in the last 2 days by Mother Jones, and probably by Kevin Drum.   My comment history is here, and I am totally perplexed what led to this.  My last comment was on a post of Drum's about hospital price competition, where I wrote:

The authors portray this (at least in the quoted material) as an anti-trust issue, but I suspect a bigger problem is the cronyist certificate of need process. In many locations, new hospitals, or hospital expansions (even things as small as buying a new cat scanner) require government permission in the form of a certificate of need. As one may imagine, entrenched incumbents are pretty good at managing this process to make sure they get no new competition. This, by the way, is a product of classic progressive thinking, which in its economic ignorance saw competition as duplicative and wasteful. We are lucky the Supreme Court shot down FDR's NRA or we would have this sort of mess in every industry.

Hard to believe this got me banned, unless Mother Jones has gotten really thin-skinned.   The second to last comment I made there was actually in support of Mother Jones, congratulating them on winning a libel suit against them.   The most recent one before that was over 2 months ago.  This leads me to believe the comment above had to have gotten me banned, but the mind boggles -- did I run into some secret National Industrial Recovery Act fetishist?

Update:  Mr. Drum, who I respect while disagreeing with frequently, was nice enough to write me back and said he didn't ban me, it had to come from Mother Jones staff somewhere.  Which leaves me even more confused.   Not sure why this comment among all the flotsam that washes ashore in the totality of Mother Jones comment sections would earn the ire of some intern.

Victory Against Speech Suppressing Libel Suits

As someone currently being sued for libel by a deep-pocketed corporation who wants me to take down a product review they don't like, I am happy to see Mother Jones prevail in their libel case brought by Frank VanderSloot, a case pretty transparently brought to suppress speech Mr. VanderSloot didn't like.  The bad news is that Mother Jones ended up with a bunch of legal bills for which they cannot get reimbursed (the exact same situation I am likely to face when I inevitably win my case).

This is exactly why we need better state and Federal anti-SLAPP laws, though I have found from personal experience campaigning for them here in Arizona that it is easy to run up against bipartisan opposition.  I will say that as happy as I am about Mother Jones' victory, there is a teenie tiny bit of schadenfreude seeing them lament the lack of loser-pay rules, something they would oppose in most any other case but their own.

I Thought This Was A Spoof At First: "Bitcoin's Problem with Women"

Felix Salmon, guest-blogging for Kevin Drum at Mother Jones, had a post yesterday titled "Bitcoin's Problem with Women."

Men make up an estimated 96% of the Bitcoin community, which means that if Bitcoin does end up succeeding, as its adherents think it will, and if the people who own Bitcoin see their holdings soar in value, then all of the profits will end up going to what Brett Scott calls the "crypto-patriarchy." Not many men, to be sure: as Charlie Stross says, the degree of inequality in the Bitcoin economy "is ghastly, and getting worse, to an extent that makes a sub-Saharan African kleptocracy look like a socialist utopia." But it's not many men, and effectively zero women.

I guess I don't get it.   Is this the result of some sort of active discrimination, or is it just one of those choices that tend to skew male or female (like the decision to become a lumberjack or a health care worker)?   I know most of the cryptography world is dominated by paranoid men, and many of these same folks were the early adopters of Bitcoin.

Beyond one lame anecdote (where one random guy at some Bitcoin function mistook a female VC for a girlfriend of the real VC), the author does not seem to present any evidence of systematic discrimination and exclusion.  Knowing some of these Bitcoin and cyptography people, though, many are from the family of guys who are socially inept and were shunned by girls in high school, so I would not be surprised if they are awkward around women.

If anything, much of his post seems actually be an exercise in gender stereotyping, arguing that men care about politics and ideology and women about community and practicality.  Seriously, under the guise of somehow defending the equality of women, he bares his gender assumptions:

If you talk about Bitcoin with the people who use it, the language they use is always about technology and finance. Bitcoiners tend to think in terms of how things work, rather than how they're used in the real world. Buying and selling Bitcoin is still much more difficult than it should be, despite many years of development, which implies that people aren’t concentrating enough on real-world ease-of-use....

That's a product design job, and frankly, it's a product design job well-suited for women who aren't approaching the problem while grinding the ideological axes so widely held inside the Bitcoin community. As one woman involved with Bitcoin put it to me, "Money is a political issue for Bitcoiners. It's a human issue for everybody else."...

Let's say you wanted to build a mobile savings app in sub-Saharan African. If you asked male Bitcoin developers to build such a thing for a target audience of young African girls, they might have talked about how to maximize the amount of money saved. But, working on the ground in South Africa, the Praekelt Foundation came from a different perspective. Apps like these aren't really about maximizing savings, so much as they're about empowerment. If you can build a product for girls that ratifies their identity and individuality and gives them self-esteem, then you're creating something much more valuable than a few dollars' worth of savings: you're keeping them in school, and you're keeping them healthy, and you're helping themto not get pregnant. That's the kind of way that cryptocurrencies could change the world. The problem is that the men in Popper's book just don't think that way.

But I digress.  The key point is this:  Bitcoin is a freaking open source, anonymous platform.  Anyone can work with it.  No one even has to know your gender (like the old internet joke about no one online knows you are a dog).

Throughout the piece he talks about the "Bitcoin community" as if it is some structured body, the membership in which is required to work with Bitcoin, like saying that one has to be a long-standing member in good standing of the Communist Party to join the Soviet Politboro.  But the Bitcoin community is no such thing.  A better definition of it is "people who happen to be working with Bitcoin today."  You no more need to be a member of the current bitcoin community, or even be known or liked by them, to create your business or service model in Bitcoin than you need to be pals with Tim Berners-Lee to be able to create an Internet company.

The whole point of why we wacky (male) libertarians get all excited about bitcoin is not that it somehow ends gender or racial or any other sort of discrimination, but that it helps makes all of these more irrelevant.  I won't pretend to read Salmon's mind, but if I had to guess, he is frustrated because he sees the capability of Bitcoin to help end discrimination.  If that is true, great.  But many of us assume that bad people with bad motives will always exist, so we seek out anonymous currencies and cryptography so we can live our lives without the permission or even knowledge of these people.

 

Kevin Drum Inadvertently Undermines His Own Keynesianism

This is a follow-up from a post this morning here.  Kevin Drum is a Keynesian who thinks that the government is committing economic suicide if it does not increase its spending substantially during and after a recession.  Kevin Drum is also a fierce partisan who wants to defend President Obama against his detractors.  Unfortunately, trying to do the two simultaneously has led to what I think may be an embarrassing result for him.

In the chart below, I combine two graphs of his.  The one on the left is a chart from last year in a Mother Jones cover story blasting "austerity" and lamenting how dumb it was to decrease spending in the years after a recession.  The chart on the right is from the other day, when Drum is agreeing with Paul Krugman that the recession recovery under Obama has been much stronger than the one under Bush II.  The result is a juxtaposition that seems to undermine his Keynesian assumptions - specifically, the recession where we had the "austerity" was the one with the better recovery.  The only thing I have done to his charts is removed lines in the left chart for other past recessions and changed the line colors on the two charts to match.   You can click to enlarge:

click to enlarge

The blue line is the Bush II recession, the red line is the Obama recession.  I believe the start dates are consistent in both charts.  All the numbers and choice of start dates and measurement scales are Drum's.  Don't yell at me for something in the chart construction being unfair -- they are his choices.

The conclusion?  Higher government spending seems to inhibit recovery.  Thanks Kevin!

Kevin Drum Undermines His Own Cover Story and Refutes His Own Keynesian Assumptions

Update:  I have posted an update with a side by side chart comparison here.

Last year, Kevin Drum wrote what I believe was the cover story of the September / October issue of Mother Jones (I read the online edition so exactly how the print version is laid out is opaque to me).  That article, entitled "It's the Austerity, Stupid: How We Were Sold an Economy-Killing Lie" features this analysis:

Click to enlarge

 

He described the chart as follows:

 In the end, for reasons both political and ideological, Obama decided that he needed to demonstrate that he took the deficit seriously, and in his 2010 State of the Union address he did just that. "Families across the country are tightening their belts," he said, and the federal government should do the same. To that end, he announced a three-year spending freeze and the formation of a bipartisan committee to address the long-term deficit.

The Beltway establishment may have applauded Obama's pivot to the deficit, but much of the economic community saw it as nothing short of a debacle. Sure, there were still a few economists who believed that even in a deep recession government spending merely crowded out private spending and thus did no good, but they were a distinct minority. Most economists acknowledged that deficit spending was appropriate at a time like this. Paul Krugman fumed that Obama was cravenly trying to score political points by doing a "deficit peacock-strut" that would be destructive in the wake of the financial crisis. Mark Zandi, a centrist economist who has advised leaders of both parties, used more judicious language, but likewise warned that spending cuts might "cost the economy significantly in the longer run."...

Taken as a whole, these measures have cut the deficit by $3.9 trillion over the next 10 years. And that doesn't even count the expiration of desperately needed stimulus measures like the payroll tax holiday and extended unemployment benefits.

This was unprecedented, as the chart above shows. After every other recent recession, government spending has continued rising steadily throughout the recovery, providing a backstop that prevented the economy from sliding backward. It happened under Ronald Reagan after the recession of 1981, under George H.W. Bush after the recession of 1990, and under George W. Bush after the recession of 2001. But this time, even though the 2008 recession was deeper than any of those previous ones, it didn't.

 

I thought the choice of baseline dates for his charts was deceptive, but never-the-less for the moment lets accept this at face value.  Make sure to take a note of the red line, which is the current recession, and the brown line, which was the recovery from the recession in the late Clinton / early Bush years.  By Mr. Drum's earlier analysis, the earlier 1990 recession was better handled than the current one (against his Keynesian assumptions) by the government continuing to increase spending after the recession to keep the recovery going.   The point of Drum's earlier article was to say that Republicans in Congress were sinking the current economy by not increasing spending as was done after these earlier recessions.

So this is what Drum published the other day, I think based on a Paul Krugman article.

But I think Krugman undersells his case. He shows that the current recovery has created more private sector jobs than the 2001-2007 recovery, and that's true. But in fairness to the Bush years, the labor force was smaller back then and Bush was working from a smaller base. So of course fewer jobs were created. What you really want to look at is jobs as a percent of the total labor force. And here's what you get:

blog_private_employment_2001_vs_2010

The Obama recovery isn't just a little bit better than the Bush recovery. It's miles better. But here's the interesting thing. This chart looks only at private sector employment. If you want to make Bush look better, you can look at total employment instead. It's still not a great picture, but it's a little better:

Awesome, Kevin!  So I guess that austerity you were complaining about was the right thing to do, yes?

Seriously, in his article a year ago Drum argued that the Republicans in Congress were sinking the economy vis a vis the 1990 recession by not continuing to boost spending in the years after the recession.  Now, he admits  (though since he does not refer back to the original article I guess it is not an admission per se) that this "austerity" led to a stronger recovery than the spending-fueled 1990 version.  All hail smaller government, the solution to growing employment!

PS-  I wonder how much of this change in private employment since the last recession came in the oil and gas industry, whose expansion the Left generally opposes?  Well, they'll bash on oil tomorrow but today, they will take credit for the jobs added.

Update:  Here are the two charts combined, with other recessions removed and the colors on the data series set to match (click to enlarge)

click to enlarge

Kevin Drum's Sensible Thoughts on Ray Rice: Why Doesn't The Same Logic Apply to Universities?

Kevin Drum has some sensible thoughts on Ray Rice, discipline and the NFL -- "Sensible" defined in this case as largely mirroring my own:

Ray Rice committed a crime. We have a system for dealing with crimes: the criminal justice system. Employers are not good candidates to be extrajudicial arms for punishing criminal offenders, and I would be very, very careful about thinking that they should be.

Now, I'll grant up front that the NFL is a special case. It operates on a far, far more public level than most employers. It's a testosterone-filled institution, and stricter rules are often appropriate in environments like that. Kids take cues from what they see their favorite players doing. TV networks and sponsors understandably demand a higher level of good behavior than they do from most employers.

Nevertheless, do we really want employers—even the NFL—reacting in a panic to transient public outrage by essentially barring someone for life from ever practicing their craft? Should FedEx do that? Should IBM do that? Google? Mother Jones? Perhaps for the most serious offenses they should, and it's certainly common to refuse to hire job candidates with felony records of any kind. (Though I'll note that a good many liberals think this is a misguided and unfair policy.) But for what Ray Rice did?

I just don't know about that. Generally speaking, I think we're better off handling crimes through the criminal justice system, not through the capricious judgments of employers—most of whom don't have unions to worry about and can fire employees at a whim. I might be overreacting, but that seems like it could become a dangerous precedent that hurts a lot more people than it helps.

I agree 100%.  The NFL  was simply insane to venture into the role as a shadow legal system to apply punishments based on their investigation and judgement in parallel with those of the legal system.  They would have been much better off simply establishing a schedule of internal penalties that were based on the outcomes of the legal system.

That being said, I wish other writers on the Left would read Drum's column and ask themselves why this same logic wouldn't apply to colleges as well. It is unbelievable to me that Liberals of all people -- who have largely defended due process rights in the legal system for years against Conservative attempts to trim them -- would suddenly wage a campaign to substitute kangaroo courts run by university administrators in the place of normal police and judicial procedures for crimes as serious as rape.  I am historically skeptical of the legal system and the people in it, but all of these problems would only be worse trying to have a bunch of amateurs at universities setting up a parallel system.

There is certainly a problem to be solved -- though the 1 in 5 statistic is completely bogus and exaggerated -- but the diagnosis of the problem has been all wrong.  The problem is that Universities have historically created internal police forces and disciplinary processes for the express purpose of protecting their students from the normal legal system.  This is a practice and tradition that goes all the way back to the Middle Ages.  And it worked fine, at least as far as I am concerned, when the University was protecting students from marijuana or underage drinking busts by town police.

But institutions develop a culture, and the culture of university disciplinary processes has been to 1.  keep the student out of the legal system and 2.  get the student to graduation.  I have friends who have been kicked out of top universities a few times, but the University in the end bent over backwards to take them back and get them over the finish line.

So it is disappointing, but not surprising, that universities approached more heinous crimes with this same culture and mindset.  And some egregious sexual assaults got swept under the rug.  Again, I think some folks are exaggerating these numbers by assuming there are tens or hundreds of these cases for every one we hear about.  But we can agree on the core fact, I think, that the typical college disciplinary culture of protecting students from the legal system has failed some victims of sexual assault.

But this is where everyone seems to be going off track.  The Obama Administration solution for this problem is to demand that universities develop more robust fact-finding and disciplinary processes for such felonies, and remove procedural protections for the accused as a way to offset the historic university culture to go to far in protecting wrongdoers.

This is nuts.  Seriously.  Given the set of facts, a far simpler solution, fairer to both accused and victims, would have been for the Obama Administration simply to demand that Universities hand over evidence of crimes to police and prosecutors trained to know what to do with it.  If the University wants to take special steps to get victims help coping with their recovery using University resources, or help victims and the accused who are University students cope with the rough edges of the legal process, great.

Postscript:  Another problem is that punishments meted out by universities are going to always be wrong, by definition.  Let's say a student is accused of rape and kicked out.  Two possibilities.  If he is innocent of the charge, then he was punished way too much.  If he was guilty, if he really raped someone, he was punished way too little -- and by the University screwing around with it and messing up the chain of evidence and taking statements without following the correct process, they may have killed any chance of a conviction in the legal system.    The current process the Obama Administration is forcing punishes the innocent and protects the truly guilty.

Eeek! Austerity! Oh, Never Mind.

Yesterday I challenged a graph by Kevin Drum in Mother Jones as being a disingenuous attempt to paint US government spending as some sort of crazed austerity program which is making the recovery worse.  He uses this graph to "prove" that our fiscal response to this recession is weak vis a vis past recessions.  The graph is a bit counter-intuitive -- note that it begins at the end of each recession.  His point is that Keynesian spending needs to continue long after (five years ?!) after the recession is over to guarantee a good recovery, and that we have not done that.

Click to enlarge

For anyone not steeped in the special reality of the reality-based community, it is a bit counter intuitive for those of us who have actually lived through the last 5 years to call government spending austere.

The key is in the dates he selects.  He leaves out the actual recession years.  So by his chart, responses that are late and occur after the recession look better than responses that are fast and large but happen during the recession.  This seems odd, but it is the conclusion one has to draw.

I took roughly the same data and started each line two years earlier, so that my first year is two years ahead of his graph and the zero year in my graph is the same as the zero point in Drum's chart.  His data is better in the sense that he has quarterly data and I only have annual.  Mine is better in that it looks at changes in spending as a percentage of GDP, which I would guess would be the more relevant Keynesian metric (it also helps us correct for the chicken and egg problem of increased government spending being due to, rather than causing, economic expansion).

Here are the results (I tried to use roughly the same colors for the same data series, but who in the world with the choice of the entire color pallet uses two almost identical blues?)

recession-redux2

You can see that Drum makes spending look lower in the current recession by carefully dating the data series to the peak of the spending, rather than comparing it to pre-recession levels.  The right hand scale is the difference in government spending as a percentage of GDP from the -2 year.  So, for example, in the current recession government spending was 34.2% in 2007 and 41.4% in 2009 for a reading of 7.2% in year 0.

Even with the flat spending over the last three or four years in the current recession (flat nominal spending leads do a declining percent of GDP) the spending increase from pre-recession levels is still about twice as high as in other recent recessions.

Does this look like austerity to anyone?

Deceptive Chart of the Day from Kevin Drum and Mother Jones to Desperately Sell the "Austerity" Hypothesis

Update:  OK, I pulled together the data and did what Drum should have done, is take the graph back to pre-recession levels.  Shouldn't it be even better if the increase in spending came during the recession rather than after?  See update here.

Kevin Drum complains about US government austerity (I know, I know, only some cocooned progressive could describe recent history as austerity, but let's deal with his argument).  He uses this chart to "prove" that we have been austere vs. other recessions, and thus austerity helps explain why recovery from this recession has been particularly slow.  Here is his chart

Austerity_2_WM_630

This is absurdly disingenuous.  Why?  Simple -- it is impossible to evaluate post recession spending without looking at what spending did during the recession.   All these numbers begin after the recession is over.  But what if, in the current recession, we increased spending much more than in other recessions.  We would still be at a higher level vs. pre-recession spending now, despite a lack of further increases after the recession.

In the time before this chart even starts, total state, local, Federal spending increased from 2007 to 2008 by 10.2%.  It increased another 11.1 % from 2008 to 2009.  So he starts the chart at the peak, only AFTER spending had increased in response to the recession by 22.5%.  Had he started the chart at the correct date and not at a self-serving one, my guess is that it would have shown that in this recession we increased spending more than any other recent recession, not less.  So went digging for some data.

I actually have a day job, so I don't have time to create a chart of total government spending since 1981, so I will look at just Federal spending, but it makes my point.  I scavenged this chart from Factcheck.org.  The purple bars are the year that each of Drum's data series begin plus the year prior (which is excluded from Drum's chart).  Essentially the growth in spending between the two purple lines is the growth left out just ahead of when Drum started each data series in his chart.  The chart did not go back to 1981 so I could not do that year.

click to enlarge

Hopefully, you can see why I say that Drum is disingenuous for not going back to pre-recession numbers.  In this case, you can see the current recession has an unprecedented pop in spending in the year before Drum starts his data series, so it is not surprising that post recession spending might be flatter (remember, the pairs of purple lines are essentially the change in spending the year before each of Drum's data series).  In fact, it is very clear that relative to the pre-recession year of 2008 (really 2007, but I will give him a small break), even after 5 years of "austerity" our federal spending as a percent of GDP will be far higher than in any other recession he considers.  In no previous recession in this era did post recession spending end up more than 2 points higher (as a percent of GDP) than pre-recession levels.    In this recession, we are likely to end up 4-5 points higher.

By the way, isn't it possible that he has cause and effect reversed?  He argues that post-recession recovery was faster in other recessions because government spending kept increasing over five years after the recession is over.  But isn't it just possible that the truth is the reverse -- that government spending increased more rapidly after other recessions because recovery was faster, thus increasing tax revenues. Congress then promptly spent the new revenues on new toys.

Let's look at the same chart, highlighted in a different way.  I will circle the 4-5 years included in each of Drum's data series:

spending-2

You can see that despite the fact that government spending in these prior recessions was increasing in real terms, it was falling in two our of three of them as a percentage of GDP (the third increased due to war spending in Afghanistan and Iraq, spending which I, and I suspect Drum, would hesitate to call stimulative, particular since he and others at the time called it a jobless recovery).

How can it be that spending was increasing but falling as a percent of GDP?  Because the GDP was growing really fast, faster than government spending.  This does not prove my point, but is a good indicator that recovery is likely leading spending increases, rather than the other way around.

False Dichotomy

False dichotomy, via Mother Jones:

Faced with a world that can support either a lot of us consuming a lot less or far fewer of us consuming more, we're deadlocked: individuals, governments, the media, scientists, environmentalists, economists, human rights workers, liberals, conservatives, business and religious leaders. On the supremely divisive question of the ideal size of the human family, we're amazingly united in a pact of silence.

My guess is that the authoritarians at Mother Jones don't particularly care which is the outcome, so long as they get to wield the coercive power to make the choice for us.  Thank God these guys didn't run things in 1900.  Or 1800.  Or 1700.  Or 1600.  Or 1500.  Given their belief in zero sum choices and their complete lack of confidence in the power of the human mind to innovate, who knows what kind of sub-optimal world we would have been locked into?

The Technocratic Standard-Setting Urge

The Thin Green Line writes:

But other problems have such a straightforward solution the only question is, why haven't we implemented it already?So it is with the phone charger (H/T Mother Jones). How many old ones do you have kicking around in a drawer? If you're loyal to a particular phone, you may even have several identical chargers. Because they're electronic, you're also burdened with disposing of them properly lest they leach their toxins into some poor, unsuspecting landfill.

Not only that but chargers use a good bit more electricity than they need to and are vampires"”meaning they continue to draw power even when they're not, you know, charging.

Now imagine a world where not only did phone chargers use less energy, but they were universal, meaning any charger fit any phone. That would mean about 600 million fewer chargers each year stashed in drawers around the world and reduce greenhouse gas emissions by 15 to 24 million tons a year"”not even to mention e-waste.

The UN's International Telecommunication Union has approved this universal dreamboat of a charger. It will use half as much energy on standby. Samsung, Nokia and Motorola have already agreed to use it. Of course, they're hemorrhaging business to BlackBerry and Apple...no word yet from those guys.

I wrote:

There are at least two problems with this.  The first is that consumers are all different.   A lot of cell phones (and other devices like my kindle) are standardizing on a mini-USB connection.  Should I use the UN's solution, which is likely inferior?  Why?  Most of the time I don't even travel with a charger, I plug the mini-USB into my computer to charge.  That way I only have 1 charger on the road, for my computer.  You want me to carry 2, in the name of having fewer chargers?   You might say, "well, I hadn't thought of this situation," and I would say, "that's the point - you can't, there are 6 billion of us individuals out there."

The second problem is innovation.  Who says that innovation won't demand a different type of connection in 2 years?  Do you really want your technology gated to some working group at the UN?  Go back in time and imagine the government locking in a standard on something.  We still would have 801.11a wireless only, or cars would still all have crank starts (but they would all turn the same direction!) or cars would all have the same size wheels.  If the UN had invented something 3 years ago, it would have been power only and not data.  Today, most cell phones have power connections and connectors that double as data ports.

There is always a technocratic urge in messy changing technology markets to swoop in and mandate a standard from above, even while the technology is still evolving.  The problem is that neither you nor anyone else knows everything.  Hayek described this information problem well but you make it abundantly clear on this site you have no familiarity with Hayek.  You extrapolate what seems to be a good solution from your narrow knowledge, but cause many of us to sub-optimize because you did not anticipate how I use my charger or what technology some cell phone manufacturer today may be developing that requires a different kind of charger standard.