should we trust the experts

Psychologist Peter Gray of Freedom to Learn reports:

How common is scientific fraud? Nobody really knows. Defenders of science’s purity often argue that such fraud is very rare, the product of a tiny number of “bad apples.” But I doubt that. My suspicion is that the cases of fraud that are exposed are just the tip of the iceberg.

… replication is rare in most areas of science. Most scientists want to do something new, and funding agencies rarely provide grants to repeat already published experiments. Even when replications are conducted and fail, there are almost always ways to explain the discrepancies without suggesting fraud.

This sentiment is echoed in a recent article in the Atlantic entitled “Lies, Damned Lies, and Medical Science“:

To get funding and tenured positions, and often merely to stay afloat, researchers have to get their work published in well-regarded journals, where rejection rates can climb above 90 percent. Not surprisingly, the studies that tend to make the grade are those with eye-catching findings. But while coming up with eye-catching theories is relatively easy, getting reality to bear them out is another matter. The great majority collapse under the weight of contradictory data when studied rigorously…

His model predicted, in different fields of medical research, rates of wrongness roughly corresponding to the observed rates at which findings were later convincingly refuted: 80 percent of non-randomized studies (by far the most common type) turn out to be wrong, as do 25 percent of supposedly gold-standard randomized trials, and as much as 10 percent of the platinum-standard large randomized trials. The article spelled out his belief that researchers were frequently manipulating data analyses, chasing career-advancing findings rather than good science, and even using the peer-review process—in which journals ask researchers to help decide which studies to publish—to suppress opposing views

As illustrated by Climategate and by scientists continually refusing to release original data, scientific dishonesty is rampant. Real scientists release data.

Gray and Freedman paint a bleak picture about the current state of science, and there is good reason to believe them. As government funding expands and personal powers grow more concentrated, people will fight harder and harder to reach the upper echelon of their chosen groups. Millions of dollars, unquantifiable power, and limitless prestige are all given to the top ranks of each field. It is all about statis. That is what drives Science, Politics, Business and any other field in which humans compete. The truth is often the innocent bystander that gets ignored.

Compounding this problem is what Arnold Kling identifies as inbreeding and what Daniel B. Klein and Charlotta Stern identify as groupthink:

At the very top departments, more than 90 percent come from the worldwide top-35 departments; the top is almost entirely self-regenerating. According to the regression line, the department ranked 100th would have about 65 percent of its faculty from the top 35.

When people say to “just trust the experts“, that advice should be taken with a grain of salt.

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in the copyright news

Just as homosexuals have to keep changing their group identification name (queer, gay, homosexuals, etc) because their actions naturally discredit the word, copyright infringers seem to be having the opposite effects on their group name:

Some of those concerned about online copyright infringement now realize that they may have created a monster by using the term “piracy.” This week, at the unveiling of a new study for the International Chamber of Commerce which argued that 1.2 million jobs could be lost in Europe as a result of copyright infringement by 2015, the head of the International Actors’ Federation lamented the term.

“We should change the word piracy,” she said at a press conference. “To me, piracy is something adventurous, it makes you think about Johnny Depp. We all want to be a bit like Johnny Depp. But we’re talking about a criminal act. We’re talking about making it impossible to make a living from what you do.”

In other news, 4chan is finally doing something that does not involve hatred of God. 4chan shut down Gene Simmons website:

In the last few weeks, the group began a series of attacks it calls “Operation Payback,” targeting organizations that legislate in support of copyright laws. The RIAA, the Motion Picture Association of America, and even the U.K. government’s Intellectual Property Office have been target; Simmons is their most recent victim…

True to its manifesto — “For this, you will be held accountable before the people, and you will be punished by them. We will not stop. We will not forget. We will prevail. We are anonymous” — the group reacted swiftly to the remarks.

Simmons’ sites succumbed again to a second wave of hacker attacks, and 4chan’s Anonymous group added GeneSimmons.com and SimmonsRecords.com to its “official” hit list.

Gene Simmons, couldn’t have happened to a nicer guy.

Although, 4chan should not be using these DOS methods (the equivalent to French protesters blocking factory doors), they are finally giving a visible voice to the younger generation fed up with the dinosaurs in power. If you tend to bully, oppress, and generally harass people they might just lash back.

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overpopulation is a myth

I stumbled across the following brilliant video on YouTube. There are several more just like it and all just as powerful, but that will not matter to those who see significant profit/power in keeping the myth of overpopulation alive:

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how federal contracting works

Congress passes a new law or the president creates a new executive order changing federal contracting, but how does that filter down to the agencies?

The easiest answer to that question is: bureaucracy, bureaucracy, and more bureaucracy. Once a rule, quota, or recommendation is established by the President (through executive orders such as Order 13101 “Greening the Government”) or through legislators (through acts or amendments such as the JWOD Act or Berry Amendment [poorly written wikipedia article]), a whole host of bureaucrats busy themselves with the practical implementations. Not only must the new change be added into existing rule books but it also has to be prioritized and must be compatible with hundreds of years of existing rules. Of course, these also must jive with rulings from the courts on various issues, which might or might not be tangential.

Rules implementing these changes are proposed by a host of existing federal agencies (e.g. SBA). Think of it like a feeding frenzy. Each agency vies for benefits to themselves. Each affected vendor screams out (some wanting special privileges for themselves, some fighting special privileges to others). Chaos ensues. This is the internal fighting (backroom dealings, compromises, strong-arming, ego padding, etc) never visible to the public, but present none-the-less.

New proposals can be added at any time, so a change created in 2000 might only now be recommended for updating or new methods of implementation based on the effects of previous implementations, the original intent of the rule itself, or mismanagement of the previous implementations. Many changes happen due to presidential power shifts. No reason is really necessary for federal agencies that see these regulations as an easy and covert way to collect more power for itself (e.g. SBA) or those who style themselves as moral crusaders (e.g. SBA). Affected vendors must always keep a vigilant watch or else something might slip through with earth-shattering consequences.

Those approved proposals are recorded in the Federal Registry, and then they get filtered down to the Federal Acquisition Regulation (FAR), which outlines guides for Contracting Officers to issue contracts (the primary way for the government to purchase items). Each agency has sub-FARs that also must be updated based on the unique sub-regulations that affect their specific organization. Sometimes agencies must filter their actions through much more than one FAR. The Air National Guard, for example, gains its Contracting authority through the Army so it must comply with the FAR, DFAR, AFAR, NGFAR and to what extent possible the AFFAR.

The FAR and various sub-FARs can be edited at any time, “improving on rules” or giving further restrictions and rules originating at an agency level. As can be expected, changes often complicate and contradict each other. These rules might be legislatively guided or not. They might just be agency policy. Various agency authorities might likewise overlap and contradict each other. All these changes must be adapted into the various tenuously interconnected software programs for all the various contracting steps (PD2, AIMS, FedBizOps, NG-FPDS, etc). It is the Contracting Specialist’s job to navigate these crevasses and determine what is applicable and how to make things work.

By the time the rules and regulations get down to an operational level, the web of bureaucracy is thick. Every transaction is subject to audit, dispute, scrutiny, and legal consequences (jail time) for neglecting these rules. Each Contract is unique and must be uniquely inspected to figure out which rules are applicable and what set-asides need to be met. Key variables include: item being purchased (NAICS, SIC, FSC. ect), dollar amount, where the funds are coming from, amount of funds set aside, when the funds are given, what the funds are to be used for, type of purchase (supply, service, construction), where the Contract is to be performed, where the Contract is to be purchased, the country of origin of any supplies, vendor classifications and the like. It is quite amazing the government gets anything done at all.

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the tempest

Another of Shakespeare’s plays are coming to the big screen by the same director of Titus. I have not been this excited since Chronicles of Narnia hit theaters.

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the gold standard fallacy

One area in which I find major problems with the Austrian school of economics, is their counter-intuitive support of a currency based on the Gold Standard. That is, a money which is backed by gold in that the ratio of money to owned gold is fixed. Granted, if the US did this, they would not be able to inflate their currency at whim, but why do the Austrians concede the point that the government should have a monopoly on issuing currency in the first place and that the monopoly should be based on their choice metal?

The Gold Standard is counter-intuitive because is goes against the basic premise that markets are a good thing. If a free market is good in the case of health care, schools, and any other good, why not money as well? If there was a free market in issuing currencies, then the free market would decide the best way to value the currency.

For example, if there was a bank issuing notes on fiat (no precious metal backing it up) but they did not inflate their currency, it might in fact be worth more than a currency backed by a resource that might be found in troves by random discovery. The best part about the free market system is that it does not matter what we think is value, the free market will auto-calculate the relative values of currency without our conjectures.

In the various countries in which private currency have been tried the system tended to work fairly well.* Lawrence H. White and George Selgin write :

The history of private currencies in Scotland, Sweden, Canada, and many other nations shows otherwise [that private currency holds large exchange costs]. As a rule, bank-issued currencies circulated at par (face value).

The real reason private currency in the US was eventually outlawed by the US government was so that the government could inflate the currency (a tax on those who hold currency).

If a free market worked well in the past, think how much easier would this be in today’s electronic age. Imagine the world currency exchange, but at a local level. Consumers wanting to hold cash would no longer have to worry about inflation eating their savings. Governments could not just inflate their money without the consequence of it being abandoned as the de facto currency. Free markets would ensure only the best currency survives.

Of course, in the free market system, the government might benefit by printing its own currency still, for tax collection purposes, but that currency would be less susceptible to inflation due to competing currencies. If the government inflated its currency, people would only hold on to it long enough to pay their taxes, and the taxes would either keep going down or tax increases would be extremely visible.

It is true this debate is a little dated, now with electronic means of converting currency to just about any currency on earth. But just because things are getting better, does not mean they are the best it can be.

*HT to George Selgin for correcting my quote when I misleadingly stated the US held its value fairly well. In fact it did trade at a discount (due to anti-branching regulations), but better than popular assumptions.

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the myth of predatory pricing

Those who like to argue for government involvement in the market like to claim that monopolies will keep out competitors by lowering their price, driving out newcomers, and then raising their price to gouging levels. Not only is there no real historical examples of this (after all Standard Oil kept lowering prices without ever raising them) but counter-examples are commonplace.

One such example (and one I love), is the example of Bromine in the 1900s. Herbert Dow discovered a better manufacturing process for Bromine and broke into a market that was dominated by a German price-fixing cartel. Bromine was selling in Europe for 49 cents per pound and whereas Dow’s Bromine in America was priced at 36 cents per pound.

Then one day, Herbert Dow, being the fine philanthropist he was, decided that the consumers in England had spent too much time being shafted by the Germans. He began selling in England, and the Germans, doing what German’s do best, decided to lash out. As a repercussion, they flooded America with Bromine priced at 15 cents (remember the market value was at 36 cents). They wanted Dow to feel their wrath and be driven out of business.

Dow, seeing that the new products were under-priced, began buying as much as he could, repackaging it and selling it in Europe at 27 cents per pound. Not only was the cartel losing money in the American market, but they were also being under-priced in the European market. After the Europeans figured out what was going on, their little predatory pricing scheme fell apart. They came to an agreement with Dow for him to stay clear of Germany, them stay clear of America, and to mutually compete in the rest of the world.

Predatory pricing does not work. For every cartel, there is 100 speculators. Firms have no choice but to price at a natural market equilibrium price.

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the Chinese do not care about copyright

Check out this post. I was once told that the Chinese car industry buys foreign cars, ships them to China, strips them down, copies all the parts, and then builds their own. Apparently this even extends to the company logos.

bmw

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the United Way scam

At work they used a mandatory meeting to promote the United Way. While there is nothing wrong with giving to charity, the United Way is run more like a mafia than a charitable organization. United Way’s goal is to embed themselves with employers. They then use fear and intimidation to extract money from employees. Donations are expected from the entire workforce, and those who do not contribute are singled out as outliers. They might be skipped up for promotion or not given good assignments. After giving to the United Way, one feels more like they just got done with a mugging then a charitable donation.

The strong-arming is one thing, but the end projects for these donations range from worthless to absurd. No one in their right mind would claim that $100 donation to the United Way is the most efficient and sociality beneficial use of that $100.

The above video is for the South Dakota region. Excluding data from the Indian reservations (aka Tragedy of the Commons / Moral Hazard problems), not only does South Dakota have an extremely low poverty rate but also a minuscule unemployment rate as well. For example, Sioux Falls, the largest urban area in South Dakota, has a poverty rate of 8.4% compared to a national average of about 13% and also an unemployment rate of 4.4% compared to the national average of 9%. Usually urban rates tend to be higher than the rural rates.

This is also using the US definition of poverty ($22k per year) which is radically different than the world definition of poverty ($1.25 per day).

If any South Dakotan is in need of help, it would be the American Indians on the reservations. But, chances that the United Way would not just contribute to the problem are slim to none.

Instead, the United Way gives lavish food to rich Americans, all the while fostering pride in taking handouts (I wonder who they will vote for when they grow up). Other programs apparently involving following around janitors with video cameras and also stashing away the elderly. Does one think that this is the best use per dollar. I can think of a few much better uses off the top of my head.

The particular speaker to whom I listened stated that the backpack food program usage rose from 45% to 60% of children at his school. He said that this shows the US is increasing in poverty and that there is also a greater need for donations. Oddly, he also claimed this increase shows success, showing the usefulness of his organization. When a sign of “needing more money” is a sign of a successful program, that indicates that the program is broken.

Giving to the United Way is a scam.

Posted in Economics, Human Nature | Tagged , , , , | 33 Comments

Battlestar Galactica – new episode found

The finale of Battlestar Galactica left something to be desired. It is a good thing this lost episode was finally released.

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