What do Terrorists Read and Are Tech Companies Suppressing Wages?

First, an interesting article claiming that tech companies are using artificial labor shortages to claim they need to import more H1-Bs in order to keep wages low:

That study was a key link in a chain of evidence leading to an entirely different view of the real origins of the Immigration Act of 1990s and the H1-B visa classification. … Their aims instead were to keep American scientific employers from having to pay the full US market price of high skilled labor. They hoped to keep the US research system staffed with employees classified as “trainees,” “students,” and “post-docs” for the benefit of employers. The result would be to render the US scientific workforce more docile and pliable to authority and senior researchers by attempting to ensure this labor market sector is always flooded largely by employer-friendly visa holders who lack full rights to respond to wage signals in the US labor market.

I rate this credible.

Second, an article by Donald Holbrook, “What Types of Media do Terrorists Collect?” [PDF] Unfortunately, the article only looks at religious/historical/political media, and so does not answer the eternal question of whether terrorists prefer Asuka or Rei, or whether their media consumption differs in other ways from other people’s.

The author looked at media collected by ten Islamic terrorists in, I believe, Britain. It would be interesting to compare these collections to those of NRA terrorists and people of similar backgrounds who didn’t commit terrorism–maybe someone can do a follow-up study on the matter.

So what media do they consume?

Holbrook found, first of all, that most of their media is pretty innocuous–things like 17-part audiobook series on some historical topic. (Audio–rather than written or video–media predominated, but that may not hold in the future with YouTube videos now quite easy to produce.) Only a small percent of the media was coded as “extreme” (that is, advocating violence)–even terrorists don’t spend all of their time reading about how to build bombs.

A few items were consumed by multiple people (this was generally more extreme media, which probably just exists in much lower quantities,) but most of the media was of sufficient variety that different people read different things.

Most of it was in English, since the terrorists speak English. The author expressed some concern that translations of much older religious material were not entirely accurate, but also noted that the terrorists possessed a fair amount of religious/historical commentaries that expressed counter-extremist messages.

So what can we conclude from this?

  1. It seems unlikely to me that radicalization is simply due to exposure to extreme material, since most of what they consumed was mild. It seems more likely that people who are prone to radicalization seek out more extreme material.
  2. However, it is possible that a strong sense of historical or religious identity is an important part of radicalization–most people don’t listen to 17 part serieses on obscure religious history topics.
  3. People who live in Britain but have a strong identity as something other than British are probably more likely to engage in anti-British terrorism
  4. The internet/modern technology have increased the availability of historical/foreign documents, especially in translation, allowing for people to communicate across nations and through time in ways that were much more difficult and limited before.

#4 is, I think, quite important–across a range of different human activities, not just radicalization. I think the increased availability of printed material in the early modern period allowed for the spread of the European witchcraft hysteria, for example, as the gullible public eagerly consumed pamphlets purporting to report on heinous crimes of witchcraft occurring in neighboring towns.

Increased literacy probably also went hand-in-hand with the Protestant Revolution, which emphasized the importance of people reading the Bible for themselves in order to have a personal relationship with God–something that was impossible before the era of relatively cheap Bibles.

This, of course, launched years of religious warfare that scourged the European continent and led to a lot of people being burned at the stake, at least until people mellowed and decided religious differences weren’t that big a deal.

Today, changes in media availability/ease of communication is changing how Westerners think about morality. It may also be changing how non-Westerners approach the world too–but not necessarily in the same ways.

Unsurprisingly, this study contradicts the common claim that terrorists aren’t religiously motivated or aren’t practicing “true Islam.” Of course, I have yet to see anyone, ever, admit to practicing a false version of a religion. Everyone believes that they are practicing the true version (or the true lack of a version, in the case of atheists,) and that everyone else is practicing a false version. Of course I also think terrorists have got religion wrong, but that doesn’t mean they aren’t practicing it to the best of their abilities–and of course, they think I’m doing it wrong.

But the fact that these folks are religiously motivated is undeniable–they definitely consume far more religious media than the average person.

 

 

 

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When GDP is a Scam

Look, just… think about this for a moment. How does a group in which 65% are unemployed and can’t speak the language add anything to the economy?

You could do some sleight of hand where a few very productive workers, a random billionaire like Carlos Slim or Steve Jobs, get lumped in with a bunch of people they have nothing to do with on the grounds that they are all “Syrian,” and come up with numbers like this, but that would be a sleight of hand. It’s deceptive, and it’s obviously lumping together completely disparate groups in order to make one group look much better than it is.

How to tell if someone is lying to you with GDP:

  1. Consider splitting the population in two. Say, Germans and non-Germans. Would GDP for one group go down?If yes, then you’re being lied to. Simply “growing” the GDP by drawing a bigger circle on the map and adding up the GDP inside of it doesn’t mean the people inside the circle have more money. It just means you drew a bigger circle.
  2. Is this GDP “growth” entirely due to government spending to deal with the problems brought by the newcomers, like funding schools to teach them German?If yes, then it is not real spending. Everyone who was already in Germany was just taxed to provide service to non-Germans. You could do that without anyone immigrating to Germany.
  3.  

    Does this “growth” translate into a higher standard of living or happiness for the average or median German?

    If not, you are being lied to.

  4.  

    If you could magically replace every one of those migrants with a German of the same age and sex, would GDP go up or down?
    If Up, then these migrants are a bad investment.

  5. If these immigrants are so great for the German economy, why were they so bad for their home economies?

Let’s summarize these varieties of “GDP” abuse: 1. Not looking at Per Capita, 2. “Growth” that doesn’t help the locals, 3. Growth that goes to elites, 4. Opportunity cost, 5. Not making any sense.

GDP is one way to measure the economy, but it isn’t the only way–and it certainly isn’t the only thing that matters.

Let us consider the simplest possible economy:

Joe and Bob are sailors who have been marooned on a desert island. They have plenty of fish to eat and two coconuts, which they use as currency. When Joe wants something from Bob, he pays him one Coconut. When Bob wants something from Joe, he pays him one Coconut.

Bob and Joe are also economists, so they keep track of their local GDP, tallying up every Coconut exchange. After two months, they have a robust GDP of 4,000 Coconuts per month–and then the coconuts sprout. For the next two months, Bob and Joe abandon the Coconut and just do favors for each other. The economy crashes. The island has a GDP of 0 Coconuts–but oddly, Bob and Joe are doing just as well and eating just as much fish as before.

You might be objecting that the Coconut Economy is a bit contrived, but it is relevant to our real world.

Over in our economy, if I hire a maid to vacuum my carpet, this is “economic activity” and it counts toward the GDP–but If I vacuum it myself, it doesn’t count. If I am hired as a nanny to take care of someone else’s children, this is “economic activity,” but if I take care of my own children, it doesn’t count. Even hiring a prostitute is “economic activity” as far as GDP is concerned, but having sex for free is not.

It is easy to see how something like “women entering the workforce” might generate a substantial GDP boost–while not actually changing anything but the location where particular jobs are done. There is no more economic value to vacuuming my carpet or yours. It’s all carpet.

There are plenty of non-economic arguments relevant here. I might be happier hiring someone to vacuum my carpet so I can spend my time on other activities, or I might be happier tidying up my own home to get everything just the way I like it. I might provide more nurturing childcare to my own children, or a professional might be able to invest in expensive toys and games that can be enjoyed by the many children in their care. People may enjoy consensual sex with their spouses more than with prostitutes–or may hate people and just want to visit the occasional prostitute. Etc.

All of these nuances of life are missed in any simple argument about GDP.

Any argument that hinges solely on what immigrants add (or subtract) from GDP is misguided because ultimately, people don’t exist to make economies better–economies exist to make people better.

Would you try to “improve” the lives of the Amish by inviting a bunch of Silicon Valley executives to settle in their area and boost GDP?

Of course not. It wouldn’t even be a meaningful exercise–the Amish are perfectly happy the way they are. Different people want different things in life. Sometimes that’s more money. Sometimes it’s community, free time, health, or nature. The Silicon Valley folks wouldn’t be too happy having to deal with the Amish, either.

About 30 years ago, economists-on-TV and pundits became convinced that the key to the economy was “spending” and therefore we had to convince people to spend more. Tracking things like “how much people spend on Christmas shopping” became an annual theme.

Of course, spending comes at a cost (future saving), and future saving comes at a cost (current consumption).

Here is a good article on why GDP and CPI are Broken:

Imagine China is implementing a mercantilist policy. An American spends cash to buy goods exported from China. The Chinese recycle the money earned from exporting goods to America into buying mortgage backed securities. The American takes out a big mortgage to buy a house, mortgage bought by the Chinese. The American is effectively borrowing from the Chinese in order to fund current consumption. The net result is that America is a net seller of home equity and in return has recieved goods. The price of homes will be pushed up. In the GDP statistics this will actually show up as economic growth (since the cheap Chinese goods will push down the GDP deflator). But in reality, there has been no growth, the U.S. is simply selling off its own wealth and getting poorer.

Of course, this is what is actually happening.

Meanwhile:

The GDP numbers do not include depreciation. So if existing infrastructure is crumbling faster than it gets replaced, GDP might show the country as actually growing while in reality things are falling apart.

If the entire city of Detroit gets destroyed in riots, fires, crime waves, and ethnic cleansing, and is left in ruins, this catastrophe not show up in GDP numbers. In fact, GDP might actually increase since the destruction would spur the creation of new housing (which does show up in the numbers) and the average home price might actually fall (reducing the GDP deflator) due to violence making the neighborhoods unlivable.

GDP for GDP’s sake is burning houses down just so you can rebuild them–or importing foreigners just so you can spend money to teach them to speak your language.

Cathedral Round-Up: Checking in with the Bright Minds at Yale Law

Yale Law’s Coat of Arms

Yale Law is the most prestigious lawschool in the entire US (Harvard Law is probably #2). YL’s professors, therefore, are some of the US’s top legal scholars; it’s students are likely to go on to be important lawyers, judges, and opinion-makers.

If you’re wondering about the coat of arms, it was designed in 1956 as a pun on the original three founders’ names: Seth Staples, (BA, Yale, 1797), Judge David Daggett aka Doget, (BA 1783), and Samuel Hitchcock, (BA, 1809), whose name isn’t really a pun but he’s Welsh and when Welsh people cross the Atlantic, their dragon transforms into a crocodile. (The Welsh dragon has also been transformed into a crocodile on the Jamaican coat of arms.)

(For the sake of Yale’s staple-bearing coat of arms, let us hope that none of the founders were immoral in any way, as Harvard‘s were.)

So what have Yale’s luminaries been up to?

Professor Yaffe has a new book on Criminal Responsibility, titled The Age of Culpability: Children and the Nature of Criminal Responsibility. The blurb from Amazon:

Gideon Yaffe presents a theory of criminal responsibility according to which child criminals deserve leniency not because of their psychological, behavioural, or neural immaturity but because they are denied the vote. He argues that full shares of criminal punishment are deserved only by those who have a full share of say over the law.

The YLS Today article goes into more depth:

He proposes that children are owed lesser punishments because they are denied the right to vote. This conclusion is reached through accounts of the nature of criminal culpability, desert for wrongdoing, strength of legal reasons, and what it is to have a say over the law. The heart of this discussion is the theory of criminal culpability.

To be criminally culpable, Yaffe argues, is for one’s criminal act to manifest a failure to grant sufficient weight to the legal reasons to refrain. The stronger the legal reasons, then, the greater the criminal culpability. Those who lack a say over the law, it is argued, have weaker legal reasons to refrain from crime than those who have a say, according to the book. They are therefore reduced in criminal culpability and deserve lesser punishment for their crimes. Children are owed leniency, then, because of the political meaning of age rather than because of its psychological meaning. This position has implications for criminal justice policy, with respect to, among other things, the interrogation of children suspected of crimes and the enfranchisement of adult felons. …

He holds an A.B. in philosophy from Harvard and a Ph.D. in philosophy from Stanford.

I don’t think you need a degree in philosophy or law to realize that this is absolutely insane.

Even in countries where no one can vote, we still expect the government to try to do a good job of rounding up criminals so their citizens can live in peace, free from the fear of random violence. The notion that “murder is bad” wasn’t established by popular vote in the first place. Call it instinct, human nature, Natural Law, or the 6th Commandment–whatever it is, we all want murderers to be punished.

The point of punishing crime is 1. To deter criminals from committing crime; 2. To get criminals off the street; 3. To provide a sense of justice to those who have been harmed. These needs do not change depending on whether or not the person who committed the crime can vote. Why, if I wanted to commit a crime, should I hop the border into Canada and commit it there, then claim the Canadian courts should be lenient since I am not allowed to vote in Canada? Does the victim of a disenfranchised felon deserve less justice than the victim of someone who still had the right to vote?

Since this makes no sense at all from any sort of public safety or discouraging crime perspective, permit me a cynical theory: the author would like to lower the voting age, let immigrants (legal or not) vote more easily, and end disenfranchisement for felons.

Professor Moyn has a new book on Human Rights: Not Enough: Human Rights in an Unequal World. According to the Amazon blurb:

The age of human rights has been kindest to the rich. Even as state violations of political rights garnered unprecedented attention due to human rights campaigns, a commitment to material equality disappeared. In its place, market fundamentalism has emerged as the dominant force in national and global economies. In this provocative book, Samuel Moyn analyzes how and why we chose to make human rights our highest ideals while simultaneously neglecting the demands of a broader social and economic justice. …

In the wake of two world wars and the collapse of empires, new states tried to take welfare beyond its original European and American homelands and went so far as to challenge inequality on a global scale. But their plans were foiled as a neoliberal faith in markets triumphed instead.

As Yale puts it:

In a tightly-focused tour of the history of distributive ideals, Moyn invites a new and more layered understanding of the nature of human rights in our global present. From their origins in the Jacobin welfare state

Which chopped people’s heads off.

to our current neoliberal moment, Moyn tracks the subtle shifts in how human rights movements understood what, exactly, their high principles entailed.

Like not chopping people’s heads off?

Earlier visionaries imagined those rights as a call for distributive justice—a society which guaranteed a sufficient minimum of the good things in life. And they generally strove, even more boldly, to create a rough equality of circumstances, so that the rich would not tower over the rest.

By chopping their heads off.

Over time, however, these egalitarian ideas gave way. When transnational human rights became famous a few decades ago, they generally focused on civil liberties — or, at most sufficient provision.

Maybe because executing the kulaks resulted in mass starvation, which seems kind of counter-productive in the sense of minimum sufficient provision for human life.

In our current age of human rights, Moyn comments, the pertinence of fairness beyond some bare minimum has largely been abandoned.

By the way:

From Human Progress

Huh. Why would anyone think that economic freedom and human well-being go hand-in-hand?

The Dramatic Decline in World Poverty, from CATO https://www.cato.org/blog/dramatic-decline-world-poverty

At the risk of getting Pinkerian, the age of “market fundamentalism” has involved massive improvements in human well-being, while every attempt to make society economically equal has caused mass starvation and horrible abuses against humans.

Moyn’s argument that we have abandoned “social justice” is absurd on its face; in the 1950s, the American south was still racially segregated; in the 1980s South Africa was still racially segregated. Today both are integrated and have had black presidents. In 1950, homosexuality was widely illegal; today gay marriage is legal in most Western nations. Even Saudi Arabia has decided to let women drive.

If we want to know why, absurdly, students believe that things have never been worse for racial minorities in America, maybe the answer is the rot starts from the top.

In related news, Yale Law School Clinics Secure Third Nationwide Injunction:

The first ruling dramatically stopped the unconstitutional Muslim ban in January 2017, when students from the Worker and Immigrant Rights Advocacy Clinic (WIRAC) mobilized overnight to ground planes and free travelers who were being unjustly detained. The students’ work, along with co-counsel, secured the first nationwide injunction against the ban, and became the template for an army of lawyers around the country who gathered at airports to provide relief as the chaotic aftermath of the executive order unfolded.

Next came a major ruling in California in November 2017 in which a federal Judge granted a permanent injunction that prohibited the Trump Administration from denying funding to sanctuary cities—a major victory for students in the San Francisco Affirmative Litigation Project (SFALP) …

And on February 13, 2018, WIRAC secured yet another nationwide injunction—this time halting the abrupt termination of the Deferred Action for Childhood Arrivals program (DACA). … The preliminary injunction affirms protections for hundreds of thousands of Dreamers just weeks before the program was set to expire.

And Rule of Law Clinic files Suit over Census Preparations:

The Rule of Law Clinic launched at Yale Law School in the Spring of 2017 and in less than one year has been involved in some of the biggest cases in the country, including working on the travel ban, the transgender military ban, and filing amicus briefs on behalf of the top national security officials in the country, among many other cases. The core goal of the clinic is to maintain U.S. rule of law and human rights commitments in four areas: national security, antidiscrimination, climate change, and democracy promotion.

 

Meanwhile, Amy Chua appears to be the only sane, honest person at Yale Law:

In her new book, Political Tribes: Group Instinct and the Fate of Nations (Penguin, 2018), Amy Chua diagnoses the rising tribalism in America and abroad and prescribes solutions for creating unity amidst group differences.

Chua, who is the John M. Duff, Jr. Professor of Law, begins Political Tribes with a simple observation: “Humans are tribal.” But tribalism, Chua explains, encompasses not only an innate desire for belonging but also a vehement and sometimes violent “instinct to exclude.” Some groups organize for noble purposes, others because of a common enemy. In Chua’s assessment, the United States, in both foreign and domestic policies, has failed to fully understand the importance of these powerful bonds of group identity.

Unlike the students using their one-in-a-million chance at a Yale Law degree to help members of a different tribe for short-term gain, Amy Chua at least understands politics. I might not enjoy Chua’s company if I met her, but I respect her honesty and clear-sightedness.

 

On a final note, Professor Tyler has a new book, also about children and law, Why Children Follow Rules: Legal Socialization and the Development of Legitimacy. (Apparently the publishers decided to stiff the cover artist.) From the Amazon blurb:

Why Children Follow Rules focuses upon legal socialization outlining what is known about the process across three related, but distinct, contexts: the family, the school, and the juvenile justice system. Throughout, Tom Tyler and Rick Trinkner emphasize the degree to which individuals develop their orientations toward law and legal authority upon values connected to responsibility and obligation as opposed to fear of punishment. They argue that authorities can act in ways that internalize legal values and promote supportive attitudes. In particular, consensual legal authority is linked to three issues: how authorities make decisions, how they treat people, and whether they recognize the boundaries of their authority. When individuals experience authority that is fair, respectful, and aware of the limits of power, they are more likely to consent and follow directives.

Despite clear evidence showing the benefits of consensual authority, strong pressures and popular support for the exercise of authority based on dominance and force persist in America’s families, schools, and within the juvenile justice system. As the currently low levels of public trust and confidence in the police, the courts, and the law undermine the effectiveness of our legal system, Tom Tyler and Rick Trinkner point to alternative way to foster the popular legitimacy of the law in an era of mistrust.

Speaking as a parent… I understand where Tyler is coming from. If I act in a way that doesn’t inspire my children to see me as a fair, god-like arbitrator of justice, then they are more likely to see me as an unjust tyrant who should be disobeyed and overthrown.

On the other hand, sometimes things are against the rules for reasons kids don’t understand. One of my kids, when he was little, thought turning the dishwasher off was the funniest thing and would laugh all the way through timeout. Easy solution: I didn’t turn it on when he was in the room and  he forgot. Tougher problem: one of the kids thought climbing on the stove to get to the microwave was a good idea. Time outs didn’t work. Explaining “the stove is hot sometimes” didn’t work. Only force solved this problem.

Some people will accept your authority. Some people can reason their way to “We should cooperate and respect the social contract so we can live in peace.” And some people DON’T CARE no matter what.

So I agree that police, courts, etc., should act justly and not abuse their powers, and I can pull up plenty of examples of cases where they did. But I am afraid this is not a complete framework for dealing with criminals and legal socialization.

Your own, Personal, Immigrant (pt 2)

Reach out and touch poverty

Politico recently ran an article titled “What if you could get your own immigrant?” which was so terrible, I don’t even know where to begin. (Even they now realize their headline was atrocious, so they changed it to “Sponsor an immigrant yourself”.)

Politico wants to know: why do only corporations get to sponsor immigrants? Why not individuals? What’s so good about companies that they get special rights that we mere plebian humans don’t? That’s not a terrible question, but then they rip off the mask of decency and show their complete misunderstanding of, well, everything:

Right now, special classes of citizens—mostly corporations (and in practice, big corporations) and family members—can sponsor temporary or permanent migrants, benefiting shareholders mainly, as well as ethnic enclaves.

This system should be wiped away and replaced with a system of citizenship sponsorship for immigrants that we call a Visas Between Individuals Program. Under this new system, all citizens would have the right to sponsor a migrant for economic purposes.

Here’s how the program would work: Imagine a woman named Mary Turner, who lives in Wheeling, West Virginia. She was recently laid off from a chicken-processing plant and makes ends meet by walking and taking care of her neighbors’ pets. Mary could expand her little business by hiring some workers, but no one in the area would accept a wage she can afford. Mary goes online—to a new kind of international gig economy website, a Fiverr for immigrants—and applies to sponsor a migrant. She enters information about what she needs: someone with rudimentary English skills, no criminal record and an affection for animals. She offers a room in her basement, meals and $5 an hour. (Sponsors under this program would be exempt from paying minimum wage.) The website offers Mary some matches—people living in foreign countries who would like to spend some time in the United States and earn some money. After some back and forth, Mary interviews a woman named Sofia who lives in Paraguay.

In no particular order:

1. Mary is not an “individual” in this scenario, she is a small business owner looking to hire employees, so we are right back at square one: a company hiring immigrants. Now, maybe Mary hasn’t filed all of the paperwork to become a proper corporation–in which case she is running tremendous legal risks.

Look, corporations don’t exist because someone needed to split the cost of a big building. They exist to minimize the legal risks to individuals from running a business.

Corporations enjoy what is called “limited liability.” This means that while a corporation can be sued for all it is worth, the corporation’s owners get to keep whatever money they have in their personal bank accounts. If Donald Trump’s hotels get sued for, say, hiring discrimination, they can go bankrupt, go out of business, and get converted into very tall waterslides by a new round of developers, but the money in Donald Trump’s personal wallet is untouchable. (Which is why Trump is still wealthy after numerous bankruptcies.)

If Mary is just an individual and not a corporation, she bears personal liability for anything she or her employees do. For example, if a client’s prize-winning akita chokes on a chew toy and dies while at doggy daycare, she can be personally sued for the full $15,000 her clients paid for the pooch. If Sophia crashes the company car while on the way to a client’s house to pick up a dog, totaling another car in the process and putting a four year old girl in the hospital with crushed femurs and a punctured lung, Mary will be sued for every last penny while Sophia skips bail and hightails it out of the country.

In other words, once your small business is at the point where you are looking to hire employees and wondering how to do payroll taxes, you should be filling out that incorporation paperwork for your own benefit. “What if we let people who haven’t incorporated their small businesses and so face a lot more legal risks personally sponsor immigrants for economic gain?” is not good logic.

2. Dog walking business in West Virginia. Let me repeat that: Dog. Walking. Business. In. West. Virginia.

Yeah, after the chicken processing plant laid off all of its workers, apparently Mary’s neighbors discovered that they had tons of cash lying round just waiting to be spent on luxuries for their pets.

(Clarification for the stupid: normal West Virginians either walk their own dogs or just let them poop in the backyard. Professional dog-walkers are a New York thing, where urbanites assuage their guilt about leaving their surrogate children alone in tiny apartments for 14 hours a day while they file biglaw briefs by hiring other people to actually care for them.)

3. Mary is already barely making ends meet at an extremely low-income job that not many of her neighbors need done with zero barriers to entry, and her idea for making more money is to find someone who can live on even less income than herself? Is Sophia expected to eat in this scenario? Don’t forget that you now have to keep track of payroll taxes and deductions–most businesses hire a payroll service to do this for them, because legal compliance is tricky and doing it incorrectly can get you into very expensive trouble with the IRS.

4. If Sophia can make enough to live on, why would she give Mary any of the money? It’s not like dog walking is a complicated business that requires a professional to handle all of the client information. Sophia can just negotiate with the clients herself and give Mary nothing.

Tags used to mark hired slaves in South Carolina, evoke

5. Oh, wait, Sophia lives in Mary’s basement and is required to give Mary the money she makes? We have a word for that: SLAVERY.

No, really, that actually happened under slavery. People who didn’t have slaves or needed a worker with a particular skill that a slave happened to have would hire slaves from the people who had them. The slaves received a certain amount of wages, most of which went to the owner but a certain percent of which went to the slaves themselves, who could save up money for pleasant things like new clothes or freedom.

Here’s a quote from the article:

According to our calculations, a typical family of four could boost its income by $10,000 to 20,000 by hosting migrants. The reason is that migrants to the United States usually increase their wages many times, allowing them to pay as much as $6,000 to hosts for sponsorships (and our average family could sponsor up to four visas, one for each member).

Where exactly are these four extra people sleeping in a household of four? The sofa?

And here’s a quote on slavery at South Carolina College:

Most slaves who worked for South Carolina College were “hired” on a short-term basis. Hiring out, or hiring, referred to a system in which a hirer would temporarily lease a slave from an owner. In doing so, owners generated revenue from their slaves’ labor without having an investment in the actual work itself. Slaves were more likely to face weekly, monthly, or yearly hiring than being permanently sold. Each year, five to fifteen percent of the slave population was hired for outside work. Conversely, less than four percent of slaves permanently exchanged hands. Hired slaves performed all kinds of labor: women worked domestic jobs such as laundering and wet-nursing, while men labored on roads, canals, and railroads. Others worked in industries such as mining coal, smelting iron, and processing tobacco. Skilled slaves might work as carpenters or blacksmiths. The number of hired slaves and the variety of jobs reflected not only the flexibility of slavery but also the importance of slaves as capital for owners and hirers.

The Smithsonian has some more information on the slave-hiring out system.

6. You economists should realize that under a scenario like this, with unlimited visa supply, the equilibrium price of visas will drop to the cost of the visa and families will make nothing.

7. No minimum wage, but only for the immigrants. Sure, let’s just make Americans unemployable.

Look, I understand if you want to do away with the minimum wage for everyone. There are coherent arguments you could make in favor of letting everyone work for whatever wage they can get and letting the market work it out. But this is legally creating two classes of people in which one group is more expensive to hire than the other–which obviates the entire point of having minimum wage laws and just doesn’t work.

8. There used to be a group of Americans who could be hired for slightly below minimum wage for small jobs: teenagers.

Teenagers mowed lawns, babysat, walked dogs, even picked fruit and flipped burgers. We still have teenagers in West Virginia who can walk and groom dogs–even 10 year olds can probably be convinced to walk dogs for a dollar a dog per hour. Teenagers also have the benefit of having low living expenses because they still live with their parents, and the work experience they acquire in their highschool years can translate into a sense of accomplishment, real jobs, and eventually, allow them to pay for real expenses. There is no sensible reason to import people from the third world to do the same job Mary’s 13 year old neighbor could do equally well, unless you just hate children.

The elimination of jobs teenagers traditionally did (through the influx of low-wage immigrants who end up doing the jobs instead,) means that modern teens no longer get that early experience with working, sense of accomplishment, and gradual transition to productive, working life. Instead, they graduate from college with no work experience and start looking for jobs that require 3-5 years of previous experience in the field.

9. The article seems to think that American society is some kind of bottomless money pit that can keep growing if we just put more poor people at the bottom. There’s a technical term for this: pyramid scheme.

“We can get richer if we just find more poor people to exploit” is not a long-term economic policy. It’s more like someone read Marx and thought “Wow, extracting Surplus Value from the proleteriat sounds awesome!”

10. You might be thinking, “What if people just want to hire someone to be their personal servant?”

As the article notes, that’s already a thing. If you need a gardener, chef, maid, or live-in nanny, you can already find plenty of hireable people (immigrants included) to do these jobs–and these are not jobs that ordinary, working-class Americans are hiring anyone to do.

11. Enforcement. Say what you will for Google, at least I don’t have to worry about it keeping H1-Bs chained up in its basement, feeding them nothing but table scraps in between coding projects.

I have much less confidence in the sorts of people who think it would be a good idea to have 4 immigrants sleeping in their basements in order to reap their visa fees. In fact, in think these people will strongly resemble the sorts of people who take in foster kids for the fees, adopt orphans to get another pair of working hands, and generally thought indentured servitude was a great idea.

And who is going to pay federal agents to comb people’s basements in search of immigrant mistreatment? Me.

However, the article suggests that the primary reason abuses won’t happen is that if people like Sofia don’t like their treatment, they’ll just use their extensive savings to buy an international plane ticket and hop back home.

The horrific old village of Hollókő, Nógrád, Hungary (UNESCO World Heritage Site)

12. Sofia, who grew up in a village, has endured hardships that few Americans can imagine. 

A village. A VILLAGE, I TELL YOU. You cannot imagine the horrors of growing up in a a clustered human settlement or community, larger than a hamlet but smaller than a town, with a population ranging from a few hundred to a few thousand.

I mean, just look at this Hungarian village:

Traumatic.

Overall, I don’t think the author was totally crazy when he thought, “Hey, why do corporations get special rights that individuals don’t? Why let corporations pick immigrants and not ordinary people?” I, too, am uncomfortable with the idea of corporations having special rights. But trying to preserve the part of immigration that is based on “hiring people to do jobs” while doing away with the part where corporations are doing the hiring is missing the point of what corporations are: organizations that we route hiring through. The logic here is thus completely garbled.

But garbled logic aside, there is a much deeper problem. I’ve been saying for a long time that the demand for low-wage immigrants skirts perilously close to the logic behind slavery. “Americans are too good for these icky jobs; let’s import some brown people and make them do it.” This article strips away all pretense of valuing immigrants for their skills, perspectives, or can-do spirit: they are nothing but mobile economic units, cogs in an increasingly post-industrial machine.

They just want cheaper labor, humanity be damned.

Your Own, Personal, Immigrant

A reaction to Politico’s “What if you could get your own personal immigrant” article (with apologies to Depeche Mode):

Reach out and touch poverty
Your own personal immigrant
Someone to hear your orders
Someone who cares for your kids
Your own personal immigrant
Someone to hear your orders
Someone who’s trapped
Feeling unknown
And they’re all alone
Flesh and bone
No minimum wage at home
Just like Uber
I’ll make you a believer
Take second best
Put indentured servitude to the test
Things on your chest
You need to confess
You just want a slave

I will deliver your luxury
You know I’m expendable
Reach out and touch poverty
Your own personal immigrant
Reach out and touch poverty

Unemployment, Disability, and Death

Source: NPR, Bureau of Labor Statistics, Social Security Administration
Credit: Lam Thuy Vo

I’ve been reading about the rise of disability, eg NPR’s Unfit for Work: The Startling Rise of Disability in America:

In the past three decades, the number of Americans who are on disability has skyrocketed… every month, 14 million people now get a disability check from the government. The federal government spends more money each year on cash payments for disabled former workers than it spends on food stamps and welfare combined. … The vast majority of people on federal disability do not work. Yet because they are not technically part of the labor force, they are not counted among the unemployed.

In other words, people on disability don’t show up in any of the places we usually look to see how the economy is doing. But the story of these programs — who goes on them, and why, and what happens after that — is, to a large extent, the story of the U.S. economy. It’s the story not only of an aging workforce, but also of a hidden, increasingly expensive safety net.

A friend of mine was homeless for a couple of decades. During that time he was put on disability. To this day, he doesn’t know why. He kept trying to fight it. It offended his sensibilities that some bureaucrat thought he was “disabled.” He wanted to prove to them that he was able, that he could still work and do valuable things.

He eventually ended up with full-blown schizophrenia, so the government official was probably correct in the first place–people who are homeless for multiple years tend to have something wrong with them, even if they themselves don’t recognize it. But he didn’t have schizophrenia then. Then he was just poor, and “disability” is backup welfare for the poor.

If that doesn’t seem obvious, ask yourself what disability means. For the government, disability isn’t a matter of how much pain you’re in or how many limbs you have; it’s a matter of whether you’re too impaired to work.

The article points out that “unemployment” numbers are kept artificially low by not counting the disabled among the unemployed, even though many of the “disabled” are really “people who can’t get job”:

There’s a story we hear all the time these days that doesn’t, on its face, seem to have anything to do with disability: Local Mill Shuts Down. Or, maybe: Factory To Close. …

But after I got interested in disability, I followed up with some of the guys to see what happened to them after the mill closed. One of them, Scott Birdsall, went to lots of meetings where he learned about retraining programs and educational opportunities. At one meeting, he says, a staff member pulled him aside.

“Scotty, I’m gonna be honest with you,” the guy told him. “There’s nobody gonna hire you … We’re just hiding you guys.” The staff member’s advice to Scott was blunt: “Just suck all the benefits you can out of the system until everything is gone, and then you’re on your own.”

Scott, who was 56 years old at the time, says it was the most real thing anyone had said to him in a while.

There used to be a lot of jobs that you could do with just a high school degree, and that paid enough to be considered middle class. I knew, of course, that those have been disappearing for decades. What surprised me was what has been happening to many of the people who lost those jobs: They’ve been going on disability.

Note: the text string “imm” does not appear anywhere in the article.

In Hale County, Alabama, nearly 1 in 4 working-age adults is on disability.

Source: NPR Bureau of Labor Statistics, Social Security Administration
Credit: Lam Thuy Vo

As the article discusses, since the definition of “disabled” depends on your ability to get (or not) jobs, it depends, in turn, on the kinds of jobs a person is qualified to work. A programmer who has lost both legs in an accident can, with a few accommodations, still program perfectly well, whereas a farmer who needs to be able to do manual labor all day cannot. It’s easier to work despite a back problem if you have a college degree and can qualify for a white-collar job where you can sit down for most of the day. It’s harder if you have to carry heavy objects.

If you have a back problem and the only work you can get involves standing and carrying heavy things, well, that’s going to hurt.

Humans are fine at standing. Being on your feet a lot isn’t abstractly a problem. The Amish do tons of manual labor and they’re fine. But the Amish get to take bathroom breaks whenever they want. They can stretch or sit down if they need to. They get to dictate their own movements.

If you’re working at McDonald’s, your movements are dictated by the needs of the kitchen and the pace of the customers.

And that’s assuming you can get a job:

[Scott] took the advice of the rogue staffer who told him to suck all the benefits he could out of the system. He had a heart attack after the mill closed and figured, “Since I’ve had a bypass, maybe I can get on disability, and then I won’t have worry to about this stuff anymore.” It worked; Scott is now on disability.

Scott’s dad had a heart attack and went back to work in the mill. If there’d been a mill for Scott to go back to work in, he says, he’d have done that too. But there wasn’t a mill, so he went on disability. It wasn’t just Scott. I talked to a bunch of mill guys who took this path — one who shattered the bones in his ankle and leg, one with diabetes, another with a heart attack. When the mill shut down, they all went on disability.

Source: NPR Bureau of Labor Statistics, Social Security Administration
Credit: Lam Thuy Vo

The human body isn’t designed to stand in one place all day. We’re designed to move. A strong or desperate person can do it,but the vast majority find it unpleasant or painful. Do it for years, combine it with another condition, close the factory… and you’ll find a lot of people willing to take that disability check over moving to a new city to try their luck at the next factory, again and again and again as each factory shuts down, moves, or fires everyone and replaces them with immigrants willing to work for wages that make disability sound attractive:

But disability has also become a de facto welfare program for people without a lot of education or job skills. … Once people go onto disability, they almost never go back to work. Fewer than 1 percent of those who were on the federal program for disabled workers at the beginning of 2011 have returned to the workforce since then, one economist told me.

People who leave the workforce and go on disability qualify for Medicare… They also get disability payments from the government of about $13,000 a year. This isn’t great. But if your alternative is a minimum wage job that will pay you at most $15,000 a year, and probably does not include health insurance, disability may be a better option.

But, in most cases, going on disability means you will not work, you will not get a raise, you will not get whatever meaning people get from work. Going on disability means, assuming you rely only on those disability payments, you will be poor for the rest of your life. That’s the deal. And it’s a deal 14 million Americans have signed up for.

I know people who’ve taken this deal. The really sad part is the despair. When people are filing for disability, it means they’ve given up. It’s like we decided to have Universal Basic Income, only we structured it the wort way possible to make recipients miserable.

I mean, this is AMERICA. Our ancestors were PIONEERS. They BUILT this place from the ground up.
My grandmother still lives in the house my grandfather built. Nearby, you can still visit the house my great-grandfather built. Those houses have all sorts of oddities because they were built by hand with whatever was available.

And say what you will, much of America is still beautiful. Forests mountains lakes rivers grasslands deserts. Beautiful.

An elderly woman I know lives in an an area with stunning natural beauty. “I hate it here,” she complains. Why? Is she blind? People stay inside and watch TV and grow lonelier.

I saw this “wine glass” at the store last night.

It was advertised as “for mom!” because what every kid wants is a drunk, alcoholic caregiver.

The marketing of chic-tee-hee isn’t it cute that we’re alcoholics? alcoholism to women is disgusting. It’s a sign of how far we’ve sunk that people see this as funny instead of a desperate cry for help.

And I don’t think I need to delve into the statistics on the opiate crisis and rising death rates among younger white women. All of the people who’ve lost their lives to drug addictions.

. Most of you live near museums, rivers, forests, parks, or other lovely places.

I can’t solve our problems. But please, don’t stop living. Keep fighting.

Do Sufficiently Large Organizations Start Acting Like Malevolent AIs? (pt 1)

(and Society is an Extremely Large Organization)

What do I mean by malevolent AI?

AI typically refers to any kind of intelligence or ability to learn possessed by machines. Malevolent AI occurs when a machine pursues its programmed objectives in a way that humans find horrifying or immoral. For example, a machine programmed to make paperclips might decide that the easiest way to maximize paperclip production is to enslave humans to make paperclips for it. Superintelligent AI is AI that has figured out how to make itself smarter and thus keeps getting smarter and smarter. (Should we develop malevolent superintelligent AI, then we’ll really have something to worry about.)

Note: people who actually study AI probably have better definitions than I do.

While we like to think of ourselves (humans) as unique, thinking individuals, it’s clear that many of our ideas come from other people. Chances are good you didn’t think up washing your hands or brushing your teeth by yourself, but learned about them from your parents. Society puts quite a bit of effort, collectively speaking, into teaching children all of the things people have learned over the centuries–from heliocentrism to the fact that bleeding patients generally makes diseases worse, not better.

Just as we cannot understand the behavior of ants or bees simply by examining the anatomy of a single ant or single bee, but must look at the collective life of the entire colony/hive, so we cannot understand human behavior by merely examining a single human, but must look at the collective nature of human societies. “Man is a political animal,” whereby Aristotle did not mean that we are inherently inclined to fight over transgender bathrooms, but instinctively social:

Hence it is evident that the state is a creation of nature, and that man is by nature a political animal. And he who by nature and not by mere accident is without a state, is either above humanity, or below it; he is the ‘Tribeless, lawless, hearthless one,’ whom Homer denounces—the outcast who is a lover of war; he may be compared to a bird which flies alone.

Now the reason why man is more of a political animal than bees or any other gregarious animals is evident. Nature, as we often say, makes nothing in vain, and man is the only animal whom she has endowed with the gift of speech. And whereas mere sound is but an indication of pleasure or pain, and is therefore found in other animals (for their nature attains to the perception of pleasure and pain and the intimation of them to one another, and no further), the power of speech is intended to set forth the expedient and inexpedient, and likewise the just and the unjust. And it is a characteristic of man that he alone has any sense of good and evil, of just and unjust, and the association of living beings who have this sense makes a family and a state. –Aristotle, Politics

With very rare exceptions, humans–all humans, in all parts of the world–live in groups. Tribes. Families. Cities. Nations. Our nearest primate relatives, chimps and bonobos, also live in groups. Primates are social, and their behavior can only be understood in the context of their groups.

Groups of humans are able to operate in ways that individual humans cannot, drawing on the collective memories, skills, and knowledge of their members to create effects much greater than what could be achieved by each person acting alone. For example, one lone hunter might be able to kill a deer–or if he is extremely skilled, hardworking, and lucky, a dozen deer–but ten hunters working together can drive an entire herd of deer over a cliff, killing hundreds or even thousands. (You may balk at the idea, but many traditional hunting societies were dependent on only a few major hunts of migrating animals to provide the majority of their food for the entire year–meaning that those few hunts had to involve very high numbers of kills or else the entire tribe would starve while waiting for the animals to return.)

Chimps have never, to my knowledge, driven megafauna to extinction–but humans have a habit of doing so wherever they go. Humans are great at what we do, even if we aren’t always great at extrapolating long-term trends.

But the beneficial effects of human cooperation don’t necessarily continue to increase as groups grow larger–China’s 1.3 billion people don’t appear to have better lives than Iceland’s 332,000 people. Indeed, there probably is some optimal size–depending on activity and available communications technology–beyond which the group struggles to coordinate effectively and begins to degenerate.

CBS advises us to make groups of 7:

As it turns out, seven is a great number for not only forming an effective fictional fighting force, but also for task groups that use spreadsheets instead of swords to do their work.

That’s according to the new book Decide & Deliver: 5 Steps to Breakthrough Performance in Your Organization (Harvard Business Press).

Once you’ve got 7 people in a group, each additional member reduces decision effectiveness by 10%, say the authors, Marcia W. Blenko, Michael C. Mankins, and Paul Rogers.

Unsurprisingly, a group of 17 or more rarely makes a decision other than when to take a lunch break.

Princeton blog reports:

The trope that the likelihood of an accurate group decision increases with the abundance of brains involved might not hold up when a collective faces a variety of factors — as often happens in life and nature. Instead, Princeton University researchers report that smaller groups actually tend to make more accurate decisions, while larger assemblies may become excessively focused on only certain pieces of information. …

collective decision-making has rarely been tested under complex, “realistic” circumstances where information comes from multiple sources, the Princeton researchers report in the journal Proceedings of the Royal Society B. In these scenarios, crowd wisdom peaks early then becomes less accurate as more individuals become involved, explained senior author Iain Couzin, a professor of ecology and evolutionary biology. …

The researchers found that the communal ability to pool both pieces of information into a correct, or accurate, decision was highest in a band of five to 20. After that, the accurate decision increasingly eluded the expanding group.

Couzin found that in small groups, people with specialized knowledge could effectively communicate that to the rest of the group, whereas in larger groups, they simply couldn’t convey their knowledge to enough people and group decision-making became dominated by the things everyone knew.

If you could travel back in time and propose the idea of democracy to the inhabitants of 13th century England, they’d respond with incredulity: how could peasants in far-flung corners of the kingdom find out who was running for office? Who would count the votes? How many months would it take to tally up the results, determine who won, and get the news back to the outlying provinces? If you have a printing press, news–and speeches–can quickly and accurately spread across large distances and to large numbers of people, but prior to the press, large-scale democracy simply wasn’t practical.

Likewise, the communism of 1917 probably couldn’t have been enacted in 1776, simply because society at that time didn’t have the technology yet to gather all of the necessary data on crop production, factory output, etc. (As it was, neither did Russia of 1917, but they were closer.)

Today, the amount of information we can gather and share on a daily basis is astounding. I have at my fingertips the world’s greatest collection of human knowledge, an overwhelming torrent of data.

All of our these information networks have linked society together into an increasingly efficient meta-brain–unfortunately, it’s not a very smart meta-brain. Like the participants in Couzin’s experiments, we are limited to what “everyone knows,” stymied in our efforts to impart more specialized knowledge. (I don’t know about you, but I find being shouted down by a legion of angry people who know less about a subject than I do one of the particularly annoying features of the internet.)

For example, there’s been a lot of debate lately about immigration, but how much do any of us really know about immigrants or immigrant communities? How much of this debate is informed by actual knowledge of the people involved, and how much is just people trying to extend vague moral principles to cover novel situations? I recently had a conversation with a progressive acquaintance who justified mass-immigration on the grounds that she has friendly conversations with the cabbies in her city. Heavens protect us–I hope to get along with people as friends and neighbors, not just when I am paying them!

One gets the impression in conversation with Progressives that they regard Christian Conservatives as a real threat, because that group that can throw its weight around in elections or generally enforce cultural norms that liberals don’t like, but are completely oblivious to the immigrants’ beliefs. Most of our immigrants hail from countries that are rather more conservative than the US and definitely more conservative than our liberals.

Any sufficiently intelligent democracy ought to be able to think critically about the political opinions of the new voters it is awarding citizenship to, but we struggle with this. My Progressive acquaintance seems think that we can import an immense, conservative, third-world underclass and it will stay servile indefinitely, not vote its own interests or have any effects on social norms. (Or its interests will be, coincidentally, hers.)

This is largely an information problem–most Americans are familiar with our particular brand of Christian conservatives, but are unfamiliar with Mexican or Islamic ones.

How many Americans have intimate, detailed knowledge of any Islamic society? Very few of us who are not Muslim ourselves speak Arabic, and few Muslim countries are major tourist destinations. Aside from the immigrants themselves, soldiers, oil company employees, and a handful of others have spent time in Islamic countries, but that’s about it–and no one is making any particular effort to listen to their opinions. (It’s a bit sobering to realize that I know more about Islamic culture than 90% of Americans and I still don’t really know anything.)

So instead of making immigration policy based on actual knowledge of the groups involved, people try to extend the moral rules–heuristics–they already have. So people who believe that “religious tolerance is good,” because this rule has generally been useful in preventing conflict between American religious groups, think this rule should include Muslim immigrants. People who believe, “I like being around Christians,” also want to apply their rule. (And some people believe, “Groups are more oppressive when they’re the majority, so I want to re-structure society so we don’t have a majority,” and use that rule to welcome new immigrants.)

And we are really bad at testing whether or not our rules are continuing to be useful in these new situations.

 

Ironically, as our networks have become more effective, our ability to incorporate new information may have actually gone down.

The difficulties large groups experience trying to coordinate and share information force them to become dominated by procedures–set rules of behavior and operation are necessary for large groups to operate. A group of three people can use ad-hoc consensus and rock-paper-scissors to make decisions; a nation of 320 million requires a complex body of laws and regulations.

But it’s getting late, so let’s continue this discussion in the next post.

Time to Invest in Polish Real Estate?

DISCLAIMER: I am probably the last person you should listen to for advice about major investments. Please do lots and lots of your own research before buying anything big. Please take this post in the entertaining thought experiment style it is intended.

I’d like to start with an interesting story about Poland’s most famous daughter, Marie Curie, and her family:

1927 Solvay Conference. Marie is in the first row, between M. Planck and H. A. Lorentz

Marie was born in 1867 in what was then the Russian part of partitioned Poland. (Russia, Prussia, and Austria had carved up Poland into pieces back in the 1700s.) Her mother, father and grandfather were teachers–unsurprisingly, her father taught math and science. When the Russians decided to shut down science laboratories in Polish highschools, her father simply brought all of his equipment home and taught his kids how to use it instead.

Because of the Russian occupation and interference in the local schools, the Poles began operating their own, underground university known as the Flying University (there’s a name for you). As a woman, Marie couldn’t attend the official colleges in Warsaw, but was accepted to Flying U.

Marie’s sister wanted to study medicine in Paris, but unfortunately their parents and grandparents had lost all their money supporting Polish nationalist uprisings, and the girls were left to support themselves. So Marie and her sister had an agreement: Marie would work and send money to Paris while her sister studied, and then her sister would work and send Marie money while she finished her education.

Marie went to work as a governess for some distant relatives, and fell in love with one of the young men of the family, Kazimierz Żorawski, future mathematician. Unfortunately for the starry-eyed couple, his parents rejected the match on the grounds that Marie was penniless.

Żorawski went on to become a professor of mathematics at Krakow University and later Warsaw Polytecnic. Marie went to Paris, married Pierre Curie, won two Nobel prizes, and founded the Radium Institute at Warsaw Polytecnic. A statue of Marie was erected here, and as an old man, Żorawski would come and sit before the image of his young love.

You didn't seriously think we'd make it through this post without a polandball comic, did you?Poland has had a rough couple of centuries. According to Wikipedia:

An unsuccessful attempt at defending Poland’s sovereignty took place in 1794 during the Kościuszko Uprising, where a popular and distinguished general Tadeusz Kosciuszko, who had several years earlier served under Washington in the American Revolutionary War, led Polish insurrectionists against numerically superior Russian forces. Despite the victory at the Battle of Racławice, his ultimate defeat ended Poland’s independent existence for 123 years.[57]

Poland was unfortunately situated for both WWI and WWII, losing 1/5th of its population in the latter. The aftermath–occupation by the Soviets–wasn’t much better, as Ian Frazier recounts in his book, Travels in Siberia:

As Russia retook Poland, many Poles once again wound up in the gulag. Some who had lived through the Nazi occupation said Hitler was nothing compared to this, and they now wished they had fought on Hitler’s side. A prisoner who had survived Dachau hanged himself when he was shipped to Kolyma. Gulag prisoners who knew the novel Uncle Tom’s Cabin regretted that fate had put them in thsi time and place, and not in slavery in the American South, a hundred years before. As Negro slaves, they reasoned, at least they would have lived someplace warm, and would have been whipped and branded but not worked to death outright. In 1945, news reached the camps that the United States now possessed the atomic bomb. According to Solzhenitsyn, this unexpected development gave hope to many prisoners, who began to pray for atomic war.

But despite all of these troubles, Poland remains one of the world’s better countries–it’s ranked 36th out of 188 nations on the Human Development Index, and has an average IQ of 99, the same as its neighbors, Germany and Finland.

Despite this, Poland is ranked only 68th in per capita GDP ($27,700, lower than Puerto Rico, which isn’t even a country,) and has had a net negative migration rate (that is, more people have left than arrived) for most of the past 60 years. (Poland lost a net of almost 74,000 in 2015, most of them to other EU countries.)

In sum, Poland is a country with high human capital whose economy was probably artificially depressed by Communism, but has been steadily improving since 1990.

Net immigration increases the number of people in a country*, putting pressure on the local housing market and raising land prices. Net emigration decreases pressure on housing, leading to lower prices.

*Assuming, of course, that fertility rates are not collapsing. Poland’s fertility rate is slightly lower than Japan’s.

Poles have emigrated to countries like Germany and the UK because of their stronger economies, but if Poland’s economy continues to improve relative to the rest of Europe, Brexit goes forward, etc., Poland may become a more attractive employment destination, attracting back its migrant diaspora.

All of which leads me to suspect that Polish land is probably undervalued relative to places with similar long-term potential.

 

A Fertility Story: (Warning, image heavy)

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Tuesday’s post took longer to write than expected, so today’s post is being told entirely in images:

297px-world_population_v3-svg picture-5ba

cnn-trap-income dating

 

inflation-and-cost-of-goods

screenshot-2016-12-08-16-41-01

screenshot-2016-12-08-16-48-331

picture-40

 

intelligence vs desired number of children, from Cognitive dysgenics in the OKCupid dataset: a few simple analyses by Emil O. W. Kirkegaard http://emilkirkegaard.dk/en/?p=5942
intelligence vs desired number of children, from Cognitive dysgenics in the OKCupid dataset: a few simple analyses by Emil O. W. Kirkegaard — there are several other graphs in the post so be sure to check them out.
From Selection against variants in the genome associated with educational attainment (PDF)
From Selection against variants in the genome associated
with educational attainment
(PDF)

age-specific-fertilitty

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Source: CDC data, I believe

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800px-acceleration1

Cathedral Round-Up #14: The Business of being Harvard

Harvard has an endowment of $37.6 billion.

Yale’s is $25.6 billion.

Princeton’s is $22.7 billion.

Stanford’s is $22.2 billion.

For comparison, the GDP of the entire country of Serbia is about $37 billion per year, and the Apollo Space program spent only $2.18 billion (inflation adjusted) on the flight that landed Neil Armstrong and Buzz Aldrin on the moon.

How did these colleges get so rich? Mostly through investment. According to Wikipedia:

Harvard University‘s endowment (valued at $37.6 billion as of 2015)[1] is the largest academic endowment in the world.[2] Along with Harvard’s pension assets, working capital, and non-cash gifts, it is managed by Harvard Management Company, Inc. (HMC), a Harvard-owned investment management company.[3] …

HMC employs financial professionals to manage the approximately 12,000 funds that constitute the endowment. The company directly manages about one third of the total endowment portfolio while working closely with the external companies that manage the rest.[4]

Jack Meyer managed HMC from 1990 to September 30, 2005, beginning with an endowment worth $4.8 billion and ending with a value of $25.9 billion (including new contributions). During the last decade of his tenure, the endowment earned an annualized return of 15.9%.[5]

The university hired Mohamed El-Erian to succeed Meyer as HMC’s next president and CEO. … He announced his leaving September 12, 2007 to return to PIMCO after guiding the endowment to a one-year return of 23%.[7]

From the Atlantic
From the Atlantic, “Is Harvard so rich that it should be literally illegal?

But these colleges aren’t just rich. Harvard is a brand–a famous brand.

The big-name colleges are famous for their alumni, the wealthy people whose donations to their alma maters go back into their voluminous coffers, to be invested in the stock market and pay HMC’s multi-million dollar salaries:

  • Jane L. Mendillo, president and CEO: $9.6 million ($4.8 million)
  • Stephen Blyth, head of public markets: $11.5 million ($5.3 million)
  • Alvaro Aguirre-Simunovic, natural-resources portfolio manager: $9.6 million ($6.6 million)
  • Andrew G. Wiltshire, head of alternative assets: $8.5 million ($7.9 million)
  • Daniel Cummings, real-estate portfolio manager: $5.4 million ($4.2 million)
  • Marco Barrozo, fixed-income portfolio manager: $4.8 million

Numbers for fiscal year 2013; numbers in ( ) for 2012.

All this, and colleges are still taxed as non-profits.

Getting the right students, then, is critical. What interest has Harvard (or Stanford, Yale, or Princeton, for that matter) in accepting ordinary, hard-working Americans–even exceptionally intelligent ones–who will not become rich or famous? Harvard wants future Kennedies, Bushes, Obamas and Paulsons (John A. Paulson, founder of Paulson and Co., recently gave Harvard $400 million.) Best case scenario, their students absorb Harvard’s particular brand of secular Puritanism, furthering its spread. Worst case scenario, they get a Scalia, who doesn’t share their values but still increases the value of their brand.

(Okay, the actual worst-case scenario is a Nixon, who studied at podunk Whittier College, CA, and thus didn’t help their brand at all. I’m sure you’re all familiar with how the Cathedral treated Nixon.)

People discuss Affirmative Action as though universities had some sort of obligation to–or interest in–providing education for the good of the general populace. The point of the university, though, is to make money and promote the university’s brand. Low-class universities do this via sports, pumping billions into their football programs. High-class universities do this by attaching themselves to future leaders, like Harvard graduates Sebastian Pinera, President of Chile (2010,) Colombian President Alvaro Uribe, Pakistani PM Benazir Bhutto, three Mexican presidents, Peruvian President Alejandro Toledo, Tanzanian PM Frederick Sumaye, etc. According to Foreign Policy Journal:

From 1945 through early 2010, 71 heads of state and government from 41 countries have attended, or earned degrees, or held a variety of special scholarships and fellowships at Harvard or Oxford. …

In the second half of the 20th century, Harvard educated more than 11 percent of the top national American political elite, compared to Yale’s less than seven percent.  One Harvard program alone, the Law School, produced 37 national leaders, in contrast with the 38 who graduated from all of Yale’s colleges combined (author and M. A. Simon The Social Science Journal, 2007).

and according to the Washington Times:

The University of Chicago trained the now-famous “Chicago Boys,” a group a Chilean economists who went on to greatly influence that country’s monetary policy. …

The State Department and private groups keep running lists of foreign dignitaries who studied at American schools of higher education, a list that includes a king in Jordan, a crown prince in Norway and a crown princess in Japan. In some countries, the links can be extensive. When Indonesian President Susilo Bambang Yudhoyono, who got a master’s degree at Missouri’s Webster University, convenes his Cabinet, the group includes alumni of the University of California, Berkeley (defense minister), American University (justice minister), the Wharton School of Business at the University of Pennsylvania (finance minister), UC-Davis (trade minister) and the University of Colorado School of Mines (energy minister). …

In the 2010-11 school year, the number of foreign students in U.S. schools shot up to 723,277, an increase of 5 percent from the previous year, Institute of International Education reported. It has increased each of the past five years, and has risen 32 percent over the past decade. …

Chinese students accounted for much of the recent growth, with the total number from the burgeoning Asian power increasing by 23 percent overall and by 43 percent at the undergraduate level.

In the 2010-11 school year, 157,558 Chinese were studying at American schools, far more than from the No. 2 country, India, which had 103,895. Other nations with rocky relationships with the U.S. — Russia, Pakistan and Afghanistan, among others — also have sent their young people to the U.S.

Even if the most powerful guy in Jordan or the Philippines is an idiot (and I’m not saying he is–I’m drawing countries out of a hat,) it’s still more in Harvard’s interest to say he went to Harvard than some random American of equal IQ. The same is true at home: it’s more important for the most powerful black guy in the country to have gone to Harvard than for the second-most powerful white guy. The big universities of course want smart people, but they want powerful people even more.

In 2015, seven students–Fernando Rojas, Munira Khalif, Stefan Stoykov, Victor Agbafe, Pooja Chandrashekar, Harold Ekeh, and Alexander Roman–got into all eight Ivy League colleges. These students have one thing in common: they’re all immigrants.

(Since the Daily Mail is written by idiots, the writer didn’t realize that MIT is actually more prestigious than most of the Ivies.)

Kwasi Enin, another immigrant, was accepted into all eight Ivies in 2014 with a 2250 on his SAT (you can also read his essay here,) which is equivalent to a 1490 on the old, 1600-max score SAT. For comparison’s sake, if I had scored a 1490 on my SAT, my parents would have demanded to know what went wrong during the test.

Kwasi has teemed up at Yale with Shaan Patel, another immigrant and member of one of India’s upper castes, to help highschool students do SAT prep/apply for college. (Step one: Don’t be an American.)

To be fair, the immigrants likely have one thing in their favor independent of Harvard’s preferences: many of them grew up in poorer neighborhoods, unable to buy their way into the “good” school districts, where it was easier to out-shine their less-intelligent peers. While Americans labor under the illusion that schools make a significant difference in how smart students are, immigrants tend to believe that your parents making you study makes you smart.

But keep in mind that every year, Harvard rejects students with perfect SAT. The chances of getting into all 8 Ivy League schools is astronomically low; the chances that all 8 students who did so happen to also be immigrants/the children of immigrants is even lower, unless the Ivies are specifically selecting for them–and many of these immigrants are then used to fill the universities’ Affirmative Action quotas, because it is easier to find high-scoring Nigerians, Kenyans and upper-caste Indians than high-scoring African Americans.

In short: Universities want Affirmative Action because it benefits their bottom lines.