We Need A Radical Restructuring of Scientific Publishing

I have written a number of times before that having only a few page-limited scientific journals is creating a bias towards positive results that can't be replicated

During a decade as head of global cancer research at Amgen, C. Glenn Begley identified 53 “landmark” publications — papers in top journals, from reputable labs — for his team to reproduce. Begley sought to double-check the findings before trying to build on them for drug development.

Result: 47 of the 53 could not be replicated. He described his findings in a commentary piece published on Wednesday in the journal Nature.

I observed:

This is not really wildly surprising.    Consider 20 causal relationships that don’t exist.  Now consider 20 experiments to test for this relationship.  Likely 1 in 20 will show a false positive at the 95% certainty level — that’s what 95% certainty means.  All those 1 in 20 false positives get published, and the other studies get forgotten.

Actually, XKCD did a better job of making this point.  It's a big image so I won't embed it but check it out.

Also, Kevin Drum links a related finding that journal retractions are on the rise (presumably from false positives that could not be replicated or were the results of bad process).

In 1890, there were technological and cost reasons why only a select few studies were culled into page-limited journals.  But that is not the case today.  Why do we still tie science to the outdated publication mechanism.  Online publication would allow publication of both positive and negative results.  It would also allow mechanisms for attaching critiques and defenses to the original study as well as replication results.  Sure, this partially breaks the academic pay and incentive system, but I think most folks are ready to admit that it needs to be broken.

Engineering Intuition and The Media

I don't really want to ridicule Kevin Drum here for thinking out loud.  I really hate partisan Conservative and Liberal team-politics blogs, but I read a few to stay out of the echo chamber, and Drum is smarter and incrementally more objective (a relative thing) than most.

But this is really terrible, awful engineering intuition:

These two things together reminded me about an energy factoid that's always struck me as slightly odd: virtually every form of energy seems to be almost as efficient as burning oil, but not quite.

For example, on either a power/weight basis or a cost basis, batteries are maybe 2x or 3x bigger and less efficient than an internal combustion engine. Not 50x or 100x. Just barely less efficient. And you see the same thing in electricity generation. Depending on how you do the accounting, nuclear power is maybe about as efficient as an oil-fired plant, or maybe 2x or 3x less efficient. Ditto for solar. And for wind. And geothermal. And tidal power.

I'm just noodling vaguely here. Maybe there's an obvious thermodynamic explanation that I'm missing. It's just that I wouldn't be surprised if there were lots of ways of generating energy that were all over the map efficiency-wise. But why are there lots of ways of generating energy that are all surprisingly similar efficiency-wise? In the great scheme of things, a difference of 2x or 3x is practically invisible.

First, we have to translate a bit.  He mentions power to weight ratios for batteries in the second paragraph.  In fact, batteries have terrible power (actually energy storage) to weight ratios vs. fossil fuels, much worse than 2-3x for energy storage per unit of weight or volume.  That is why gasoline is still the transportation energy source of choice, because very few things short of plutonium have so much potential energy locked up in so little volume.  But I will assume he is comparing an entire electric drive system compared to a gasoline drive system (including not just energy storage but the drive itself) and in this case the power to weight ratios are indeed closer.

But here is the problem:  in engineering, a 2-3x difference in most anything -- strength, energy efficiency, whatever -- is a really big deal.  It's the difference between 15 and 45 MPG.   Perhaps this is Moore's Law corrupting our intuition.  We see electronic equipment becoming twice as powerful every 18 months, and we start to assume that 2x is not that much of a difference.

But this is why Moore's Law is so much discussed, because of its very uniqueness.  In most fields, engineers tinker for decades for incremental improvements, sometimes in the single digit percentages.

The fact that alternative energy supporters feel like their preferred technologies are just so close, meaning they are only 2x-3x less efficient than current technologies, explains a lot about why we skeptics of these technologies have a hard time getting through to them.

First Rule of Budget Politics

Proponents of higher taxes and larger government often criticize small government folks in Congress for being "obstructionist" and "not willing to compromise."

But here is the problem:  Coyote's first rule of budget politics is to never trade current tax increases or "temporary" spending increases for future spending cuts, because the future spending cuts never happen.  Ever.  Not once.  In fact, I would not agree to trading current tax increases for current spending cuts, because taxes will stay forever but spending cuts will just be over-ridden in a few months.

Here is a recent example:

Last summer, Republicans in Congress agreed to increase the federal debt limit in exchange for the Democrats’ pledge to cap future spending at agreed-upon levels. The compromise was embodied in the Budget Control Act; discretionary spending was to increase by no more than $7 billion in the current fiscal year. I wrote yesterday about the fact that the Democrats intended to violate the Budget Control Act by increasing deficit spending on the Post Office by $34 billion. The measure probably would have glided through the Senate without notice had Jeff Sessions not challenged it. Sessions insisted on a point of order, based on the fact that the spending bill violated the Budget Control Act. It required 60 votes to waive Sessions’ point of order and toss the BCA on the trash heap.

Today the Senate voted 62-37 to do exactly that. This means that the consideration that Republicans obtained in exchange for increasing the debt limit is gone. Moreover, some Republicans–I haven’t yet seen the list–voted with the Democrats today.

One principal lesson can be drawn from this experience. It happens all the time that Congressional leaders will trumpet a budget agreement that allegedly saves the taxpayers trillions of dollars–not now, of course, but in the “out years.” But the out years never come. Tax increases are rarely deferred to the out years; they take place now, when it counts. But spending cuts? Never today, always tomorrow.

Purported agreements about what federal spending will be years from now are utterly meaningless. Congressmen will make a deal, brag about the ostensible savings in the press, and then walk away from it the moment our backs are turned, as the Democrats (and a handful of Republicans) did today.

When folks say, "we just want a compromise" on budget issues, what they are really saying is "we want to roll you.  We are hoping you are stupid enough to trade for future cost reductions that will never happen.  We can get away with this because we have an ally in the press, who always treats promises of future cost reductions as entirely credible and believable and thus paint those who are skeptical of them as radical obstructionists."

Origins of the Crash

One of the complexities of analyzing causes of the financial crash was that there were two simultaneous leveraging events.  Clearly, financial firms were over-leveraging securitized mortgages and their derivatives.  But at the same time, home buyers were over-leveraging their real estate assets:

In 1989, only 1 in 230 homebuyers bought a house with a down payment of 3% or less.  In 2003, the ratio was 1 in 7.  By 2007, it was 1 in 3.

These charts make the case that government policy had a lot to do with this change.

California Schadenfreude

From Zero Hedge:

The hoped-for April spike in personal income tax revenues for the State of California fell once again below theoveroptimistic assumptions used to get the budget to “balance.” Instead of the $9.4 billion that the government had counted on collecting in April, it only collected $7.4 billion, according to the nonpartisan Legislative Analyst's Office. A 21% shortfall! In addition, corporate taxes were $450 million below forecast. After months of “disappointing” tax revenues, the total shortfall in income taxes now amounts to $3.5 billion for fiscal 2012 ending June 30.

The budget, supposedly balanced when it was passed last summer, had been spewing red ink from day one. Tax revenues were one problem. Expenditures were the other. The most recent re-revisions pegged the deficit at $9.2 billion. That was a few weeks ago. Now it’s going to be re-re-revised to nearly $12 billion.

Just how bankrupt does a budgeting process have to be for a budget that is supposedly in balance turn out to be $12 billion overdrawn barely 9 months later?  I have a California state tax refund on my desk -- better cash it quick or else its going to be replaced by scrip again.

The same article has this interesting tidbit about California high speed rail:

The CHSRA plan assumes that it would cost 10 cents per passenger mile (the average cost of carrying one passenger one mile at a given load factor) when international high-speed rail systems averaged 43 cents per mile, according to a report that just surfaced. The low-cost leader was Italy with 34 cents per mile; at the upper end were Germany and Japan with 50 cents per mile; Amtrak’s Acela Express, though not truly high speed, was in the middle with 44 cents per mile. And in California, it’s going to be 10 cents per mile?

The CHSRA correctly assumes that train tickets compete with air fares and the cost of driving, which, despite our incessant complaints, are lower in California than overseas. Thus, the US market requires cheaper tickets. And to make the project appear profitable, and thus more digestible for the taxpayer, the CHSRA lowered its projected operating costs to less than a quarter of the international average.

But if actual operating costs are 43 cents per mile and not 10 cents per mile, annual subsidies of $2 billion to $3 billion would be required just to keep the trains running, according to the report. Yet, AB3034, the California High-Speed Train Bond Act, makes these subsidies illegal. A conundrum that the Legislature, the Administration, and the CHSRA have so far successfully ignored.

Loyalty to the State Day

Unbelievable.  Obama has declared May 1, the traditional day used by the Soviet Union to celebrate the power of the state through military parades and such, to be "loyalty day."  Not "let's respect what America stands for" day or "celebrate liberty day" but "promise unthinking loyalty to our government masters" day.

This is particularly ironic as the other major competing proposal for Mayday is as a remembrance for the people killed by communism.  So, your choice today.  Salute the victims of out-of-control state power, or pledge your loyalty to the state.

I Wonder if this Lesson is Getting Through?

There are certain contradictions involved in attempting minimum-rules radical self-expression on government land via a government permit.  Government employees incentives are all geared towards following procedures.  There are no rewards for results or innovation, just punishments for violations of bureaucratic minutia.  It is not surprising that the government and Burning Man cultures have come into conflict.

An Author That Actually Loves The Movie of His Book

The movie Blade Runner is a pretty substantial departure from the Phillip Dick book "Do Robots Dream of Electric Sheep" on which it was based.  Even so, and perhaps uniquely in literary history, Dick seems to have absolutely loved the movie.  It kept the right elements of the book - ie, what makes us human -- and shed the silly, trippy stuff.

I don't remember it being a huge box office success.  Probably too dark, even with the last minute change of ending (the happy notion that Rachael had no programmed termination date was added to give audiences a more upbeat ending.)  But the movie certainly had a huge effect on the look and feel of sci-fi.  After the Matrix and the Terminator, we are used to future dystopias, but in the 1970's most popular sci-fi had cities that were as bright and shiny as a new penny.   I remember seeing it the first time, and Blade Runner was arresting, a whole new category of sci-fi noir.  I still love the movie, and it wears pretty well, but nowadays fan argue endlessly of the merits of the original release vs. the directors cut.  The latter purges the Harrison Ford narration and happy ending that were tacked on to make the movie more audience friendly.  I personally like the narration-- it feels consistent with the noir genre -- though the faux happy ending is lame.

Whatever the Motives, the Results Look Eerily Like Racism

I have been reading of late some histories of Germany in the 1930's, with a particular emphasis on racial laws and policy.   Over time the expanding bans on Jewish participation in the economy and society as well as preferences given to non-Jews for government jobs led to some practical problems, including:

  • What percentage of Jewish blood made one Jewish?  The Nazis messed around with this problem a long time, in part because of Hitler's absolute reluctance to get involved in such details.  Was it one grandparent?  Three grandparents?
  • How does one test for such things?  In the thirties, there was an boom in geneology research in Germany, as everyone raced around trying to figure out what evidence was sufficient to establish someone's race

It would be nice to think we put this kind of thing to bed, but here we are in the 21st century running around trying to answer the exact same questions

This story reminded me of the 1980s case of the twin red-haired Boston firefighters who claimed to be black, based on a photo of a great-grandmother and alleged oral history. While I remembered that they had gotten fired for their alleged fraud, I didn’t remember this detail:

Under current rules, said [general counsel to the state personnel office] Ms. Dale, candidates who say they are members of minority groups are judged by appearance, documented personal history and identification with a minority community. Disputes over claims of minority status are resolved by the Department of Personnel Administration.

 And indeed, there eventually was a two-day administrative hearing, in which the hearing officer determined that the twins failed all three criteria, and thus were not black. A judge upheld the ruling, finding that the twins had claimed minority status in bad faith.I have to admit being under the impression until now that as a legal matter, minority status was an in issue of self-reporting. But at least in the Massachusetts Civil Service system, one can get fired for “racial fraud.”

  • Every year, in the name of some sort of racial harmony, I have to sit down and report to the government on the race of each of my employees.  For 364 days a year I can ignore the race of my employees, but one day a year the government makes me wallow in it.  Here are part of the instructions:

Self-identification is the preferred method of identifying the race and ethnic information necessary for the EEO-1 report. Employers are required to attempt to allow employees to use self-identification to complete the EEO-1 report. If an employee declines to self-identify, employment records or observer identification may be used.

Where records are maintained, it is recommended that they be kept separately from the employees basic personnel file or other records available to those responsible for personnel decisions.

Race and ethnic designations as used by the Equal Employment Opportunity Commission do not denote scientific definitions of anthropological origins.

I am told we are trying to create a society free of racism, but the results sure look a lot like racism to me.

Evening of September 11, 2001

I've already told the story of being in Manhattan on 9/11.  Through the day, vehicles could leave the city, but they could not come back (even taxis).  That evening, most people who could leave Manhattan had done so.  We were stuck until the next day.   We ended up finding a restaurant for dinner in Times Square that was open.

Times Square was just totally bizarre.  There were no cars at all.  Perhaps one car would pass every five minutes.  A couple of guys were roller skating around the streets, I supposed just because they could.

I was reminded of this experience by this photograph by Lucie and Simon, who take pictures of cities and digitally remove the cars and people.

 

 

And We Climate Skeptics Get Called Evil

From the Gaurdian via Bishop Hill

The Guardian is reporting that UK climate change aid money has been used to fund forced sterilisation programmes in India.

Tens of millions of pounds of UK aid money have been spent on a programme that has forcibly sterilised Indian women and men, the Observer has learned...

Court documents filed in India earlier this month claim that many victims have been left in pain, with little or no aftercare. Across the country, there have been numerous reports of deaths and of pregnant women suffering miscarriages after being selected for sterilisation without being warned that they would lose their unborn babies.

Yet a working paper published by the UK's Department for International Development in 2010 cited the need to fight climate change as one of the key reasons for pressing ahead with such programmes. The document argued that reducing population numbers would cut greenhouse gases, although it warned that there were "complex human rights and ethical issues" involved in forced population control.

The Two Reasons Why People Buy Electric Cars

1.  They want to say something about themselves.  This is the Leonardo DiCaprio buyer, using the electric car to pronounce that he cares about his carbon footprint.  And it looks great parked next to his Gulfstream V.

2.  There is no meter on the electric line you plug into the car.  When you fill your car up with gas, you get to stand there watching the spinning money dial.  There is no parallel experience for plugging in an electric car.  The costs and fossil fuel use of an electric car are not necessarily less than the same size (e.g. subcompact) gasoline-engine car, they are just better hidden.

Owners of electric cars are not smarter about managing the energy costs of their driving, they are substantially more ignorant.  I know exactly how many dollars of gas I have put in my car this month.  How many electric car owners have the first idea how many dollars of electricity they put in theirs?

A Modest Proposal

The PPACA instituted a cap on health insurance spending such that at least 80% of health insurance premiums must be spent on care. Academics like Elizabeth Warren love this idea.  So here is my modest proposal -- let's require that public universities spend at least 80% of tuition on classroom instruction.  If they spend more than 20% on administration and overhead, it gets rebated back to students.  Having nearly universally supported such a provision in the PPACA, academics surely can't oppose this, can they?

Wag the Dog

I will fight when my liberty is truly threatened.  But I have absolutely no trust in politicians to determine when this is the case.

Which is why my reaction to this is, Oh Crap!

I am sure it is a total coincidence that, after 35 years of butting heads with Iran, this is occurring during a sputtering economy and within months of a Presidential election.

PS-  I watched Wag the Dog the other night.  Every time Dustin Hoffman said "he f*cked a Firefly girl" all I could think of was Gina Torres, Morena Baccarin, Jewel Staite, and Summer Glau.  Well worth losing the Presidency for.

College Baseball Recruiting, Part 2

Back in August, when I wrote the first section of this guide, I was sitting in Long Island at a baseball recruiting camp.  Now that my son has completed the process, I want to share the rest of our experience for others who, like myself, have an athletic kid but no idea how the college sports recruiting process works.

Some reminders.  First, this is baseball-specific -- other sports work differently, I presume.  Second, this is the experience of a kid with good baseball skills but not good enough to have been scouted by a Division I baseball power like Texas or Arizona State.  Third, my son was not looking for scholarship money.  He was looking to play baseball in college, and to parlay his baseball talent into admission in a top academic school.  We were looking at division III (DIII from now on) schools like Williams, Amherst, Haverford, Pomona and a few DI Ivies.  Finally, our experience is heavily colored by the fact that he plays for one of the smallest high schools in the state, so getting attention and recruiting advice was much harder than if he had played for a baseball powerhouse.

Here were some of the lessons from our first episode:

  • The DIII baseball recruiting process does not really even begin until the summer between Junior and Senior year.  My son landed a good spot without a single coach even knowing he existed as of June 1 before his Senior year of high school.  As late as January of his senior year he was still getting emails from coaches asking him if he might be interested in their school.
  • In baseball, coaches mostly ignore high school stats and records unless it is a school with which they are very familiar.  They use their eyes to pick talent - ie from video or watching kids play at recruiting camps  (more on the video and camps in our first episode)
  • As we will see in a minute, only about three things my son did in recruiting really mattered -- see the first episode for more detail on what we did
    • He proactively contacted coaches to tell them he was interested
    • He sent coaches a 5-10 minute video of himself pitching and hitting.  We made it from game film but I think most of the videos are just taken in a cage (you can see a bunch of these on YouTube, or email me and I will give you a link to ours)
    • He went to several camps, which fell into two categories:  School camps, at schools he was really interested in; and multi-school camps run by third parties.  Of the latter, I am convinced the Headfirst Honor Roll camps are the best if you are interested in DIII or DI "smart schools" (e.g. Ivies, Duke, UVA, Stanford).

OK, so we left off with my son at a two-day baseball camp.  My son sent out emails afterwards to the coaches that were at the camp and from schools in which he was interested.  Basically he said "nice to have met you, still really interested in your school; now that you have seen me, I'd like to know what you think."  He had a few good conversations with coaches at the camp, but after that we really did not hear much until after Labor Day.  In retrospect, this delay is probably because the coaches have lots of camps and they want to synthesize their prospect list after all the camps before talking in earnest with players.

We really did not know what to expect.  Would coaches call, and if they did, what were the next steps?  It was only later that we learned what outcome we should be hoping to hear:  Basically, each coach is given some spots by the admissions office (the average seems to be 5 for the baseball guys).  If your kid can make that list, then two good things happen:  a) it means the coach wants the kid on the team. And b) it generally means the kid will get a good shove to help him through the admissions process, not an inconsequential thing at a school like Princeton or Amherst.

Here is what happened next.  This was just our experience, but since it was repeated at five or six schools, almost identically, its a good bet this is a fairly standard process at colleges with high admission requirements:

  • The coach asks my son to send his transcript and SAT scores early to the Admissions office.
  • The Admissions office vets these, and gives the coach a reading -- for us, that reading was generally "if you put this kid on your short list, coach, he very likely will get in."
  • The coach then passed this message to my kid, saying there are no guarantees (etc. etc.) but all the kids with this same read from the admissions office who have been on his list have gotten in in the past.

BUT, there is a bit of a catch.  The coach will say that he can only put my kid on his list if we will commit to applying early decision.  Early decision (ED) means that one applies in November and hears in December (so well earlier than the April 1 regular admit date), but it is a binding commitment to attend if admitted.  This means that one can only apply to one school early decision.  Coaches aren't dumb.  They can't afford to waste the few recruiting spots they have on kids who aren't going to come.  So there is a quid pro quo - the coach will commit to the kid and help him through admissions, but the kid has to commit to the program.

But we only learned this later.  When coaches started calling, we weren't sure what to expect.   A couple called early to say that my son would not be on their list.  I have to give kudos to Coach Bradley from Princeton -- he called and told my son he wouldn't make the list.  It was not the news we wanted to hear, but he was up front and honest with us so we did not waste our time.  He was also the one who really explained all the stuff I wrote above, so we were more knowledgeable when other coaches called.

Soon, however, we were getting floods of interested contacts.  Many were from the coaches he had proactively contacted.  Some were from schools we never had heard of, and some were from very good schools but in parts of the country that weren't in his college search area (e.g. Kenyon, Grinnell, Carlton in the midwest).  Many of these coaches asked for him to come to campus (on our own dime, they were not paying) for a visit, including an overnight stay with someone on the team.  Eventually my son scheduled visits at Wesleyan, Bowdoin, Vassar, and Haverford.  He chose these in some cases for the school and in some cases because he really liked the coach.  All four of these offered him a spot on the short list for admissions if he was willing to go ED.

It was at this point that we hit the highlight of the whole process.  Like many parents, I just want to see my kid gain life skills.   My son will never be a good sales person.  He is really, really hesitant to cold call adults to ask them for something.  This process was good for him in that sense, because he began to see the fruits of having proactively cold-called these coaches earlier in the process.  But I still had to poke and prod him to do it.

However, with these other visits set up, my son was apparently thinking "these would all be good schools, but they are not in the top tier of my aspirations."  He was thinking about skipping ED, and trusting his grades and resume to the regular admissions process so he could still take a shot at his top choices (places like Princeton and Stanford).

He decided that the ideal choice for him would be Amherst - he loved the school, it was top-notch academically, had a great baseball tradition and an engaging coach.  That was the school he would be willing to go ED for.  He had met the Amherst coach on a school visit and at camp and Coach Hamm had been very nice.  But in the Fall,we had not heard anything from him.  (I have to insert a story here -- way back in March my son was on the Amherst campus and dropped by without an appointment at Coach Hamm's office.  At that point, Hamm did not know who my son was -- for all he knew he might have been the strikeout leader in T-ball.  But he spent a whole hour with Nic showing him around the facility and later at practice.)

This is where the breakthrough came.  Without my prodding or even involvement, my son contacted Coach Hamm one more time, to say he had not heard from Amherst but he was still really interested and he would be touring other nearby colleges in a week or so and would still love to meet with him.

We will never know exactly what happened.  Perhaps the coach was late in kicking off his recruiting.  Perhaps another kid on his list dropped out.  Perhaps he just wanted to sit back and see which kids were the hungriest.  Whatever the case, Coach Hamm wrote back immediately and said he would love to meet my son on campus  (he actually changed around a trip to be there).  The process described above played out (grades to the Admissions office, offer to be on the "list", ED application) and long story short, Nic will be at Amherst next year.

As I mentioned earlier, there was no money offered for baseball (nor could there be in leagues like the Ivies or the NESCAC which ban athletic scholarships).  Amherst has a great financial aid program, and there are great possibilities for scholarships, grants, and tuition discounts -- but these are offered to all admits, not just to athletes.

I hope this is helpful to some folks who are just starting this process -- I know it would have been a huge help to us to understand in advance.

Postscript:  One of the hardest things in the world is to get a good honest reading on your son's talent, particularly if he does not play for a top high school team.  People have told my son that he should not have gone DIII, he could be playing DI or he should be in front of pro scouts.  You have to take all this stuff with a grain of salt.  Sure, you don't want to cut off an opportunity, but on the flip side, sort of like the fox and the cheese, you don't want to lose a good thing chasing the illusion of something better (we know folks this happened to in other sports).

I don't know how to solve this, maybe people have experiences they can put in the comments.  For us, being from a small school, several summers playing club ball in a wood bat leagues with the big school kids finally convinced us our son could play at a high level (I say convinced us as parents, our son does not lack confidence so he always knew).

PS#2:  Fun Amherst facts

March of the Protected Groups

From California State contract language I am reviewing:

During the performance of this Contract, Concessionaire and its employees shall not unlawfully discriminate, harass, or allow harassment against any employee, applicant for employment, or any member of the public because of sex, sexual orientation, race, color, religious creed, marital status, need for family and medical care leave, ancestry, national origin, medical condition (cancer/genetic characteristics), age (40 and above), disability (mental and physical) including HIV and AIDS, need for pregnancy disability leave, or need for reasonable accommodation.

This is at least double the length of such passages in contracts I saw 8 years ago.  I wonder what the list will look like in another 10 years?

This used to be simple -- treat everyone equally.  But this is no longer sufficient to conform.  New groups added to the list require accommodations of one sort or another.  Non-discrimination requirements have morphed for us from "treat everyone the same" to "here is a list of groups with special privileges."  Generally, it's not that hard at present to fulfill but who knows how onerous it will be in a decade or two?

The Perfect Example of Politics over Policy

I don't think you could find any better example of paying off one's political constituents at the cost of out groups than this:

Congressional Democrats and the White House have agreed to pay for a bill to freeze student loan interest rates for a year by raising taxes on so-called S Corporations, according to a top Senate Democrat and senior House and Senate aides, but Republicans said the tax increase may ensure the bill’s defeat in the Senate.

Apparently, the taxpayer-subsidized rate of 3.4% on student loans is set to go up to a less-subsidized 6.8% in a couple of months.    So to keep this subsidy rolling, Congress is proposing to tax S-Corporations, mainly used by entrepreneurs and small businesses  (disclosure:  including mine) to avoid double taxation of business income.

I don't think its possible to come up with a real policy reason that money should be taken away from entrepreneurs and given to 18-year-olds so they can overpay for college, especially since most of the subsidy for student loans is captured by universities that have simply raised tuition to soak up each successive college subsidy program.  Note that Congress is instituting a permanent tax hike on entrepreneurs in order to give just a 1-year break (ie through the next election) to students.

But this is the perfect political bill.  It takes money from a group likely to be lost to the Administration in the next election anyway (e.g. entrepreneurs and small business people) and transfers it to a group that is very likely to vote for Obama if it votes at all, but needs to be energized to get to the polls.  The Obama Administration was obviously watching the Occupy movement carefully, and noted that much of the angst seemed to be aimed at student loans.

Expect similar payoffs to other constituencies over the next few months.  Oops, here is one already.

Wal-Mart's Bribery Problems

Walter Olson has been writing a lot about Wal-Mart and FCPA.  I don't have a lot to add except my own experience working for a large corporation in third world countries.

I worked for a manufacturer of industrial equipment for years.  In most countries in Europe and North America, part of our strategy was a dedicated in-house sales force that could provide a high level of technical support.  But we went away from that strategy when we went into third world countries, just the place where we needed more rather than less technical support for our customers.

Why?  A big reason was the FCPA.  There are many countries where it is simply impossible to do business without paying bribes.  Bribes are absolutely wired into the regulatory process.  In Nigeria, public officials are paid less with the expectation they will make it up on bribes, similar to the way we pay waiters who get tips.  The only way to legally work in these countries is to work through third party resellers and distributors and other such partners, and then tightly close your eyes to how they get things done.

What always ticks me off about these cases is the fake attitude of naivite in the press that seems to be constantly amazed that corporations might have to pay bribes to do basic things we take for granted here, like get the water turned on or have your goods put on a ship.  But in fact reporters can't be this naive, as they almost certainly have to deal with many of the same things in their business.  I would love to see an accounting of the grease payments the NY Times pays in a year in foreign countries.

I think most people when they hear these foreign bribery cases assume corporations were paying to get a special advantage or to escape some sort of fundamental regulation.  And this is possibly the case with Wal-Mart, but more likely they were simply paying because that is what you have to do just to function at all.

Wherein I Actually Advocate Regulation and the Precautionary Principle

Can we please make sure no one is able to put an AI into this thing.   We definitely don't want it to become self-aware.

Ken at Popehat Fires Off Another Classic Letter

There is nothing I find so entertaining as when Ken at Popehat fires off a legal letter in response to a particularly ludicrous legal action or threat thereof.  Check this one out.  I am not a fan of reality TV but I would tune in for a weekly show featuring Ken pouncing on yet another asshat.

PS-  the comments are hilarious, with random women throwing themselves at Ken.

Media: Turning Isolated Bizarre Incidents into National Trends

Teens ditilling hand sanitizer

By the way, why is it so easy for the media to see, say, back room abortions as a symptom of prohibitions on abortion but not see stories like this in the same light.

Who Said Economics Are Not Useful?

Wonder why no one thought of this before?  Prisoner's Dilemma as a game show.  Two players with two choices with rewards structured similar to a classic prisoners dilemma game (though not quite -- to be exactly the same the return of steal-steal should be higher than the returns of picking split in split-steal).

What Problem Are We Trying To Fix?

Do you ever wonder exactly what problem this Administration is trying to fix, beyond their bureaucrats' concerns that there is some corner of the economy over which they don't have authority?

A proposal from the Obama administration to prevent children from doing farm chores has drawn plenty of criticism from rural-district members of Congress. But now it’s attracting barbs from farm kids themselves.

The Department of Labor is poised to put the finishing touches on a rule that would apply child-labor laws to children working on family farms, prohibiting them from performing a list of jobs on their own families’ land. ...

The new regulations, first proposed August 31 by Labor Secretary Hilda Solis, would also revoke the government’s approval of safety training and certification taught by independent groups like 4-H and FFA, replacing them instead with a 90-hour federal government training course.

Change:  We won't satisfied until every single American reaches voting age without a bit of work experience.

An Amazing Hypothesis: Supernovas and Earth's Climate

A reader sent this abstract of a Henrik Svensmark study with a one word caption:  Wow!  I agree.  The notion that "local" (and by local, we mean unimaginably far away) supernova affecting the Earth's climate is certainly creative.  Haven't even read the thing so certainly not buying it yet, but it certainly is an amazing hypothesis.

Observations of open star clusters in the solar neighbourhood are used to calculate local supernova (SN) rates for the past 510 Myr. Peaks in the SN rates match passages of the Sun through periods of locally increased cluster formation which could be caused by spiral arms of the Galaxy. A statistical analysis indicates that the Solar system has experienced many large short-term increases in the flux of Galactic cosmic rays (GCR) from nearby SNe. The hypothesis that a high GCR flux should coincide with cold conditions on the Earth is borne out by comparing the general geological record of climate over the past 510 Myr with the fluctuating local SN rates. Surprisingly, a simple combination of tectonics (long-term changes in sea level) and astrophysical activity (SN rates) largely accounts for the observed variations in marine biodiversity over the past 510 Myr. An inverse correspondence between SN rates and carbon dioxide (CO2) levels is discussed in terms of a possible drawdown of CO2 by enhanced bio-productivity in oceans that are better fertilized in cold conditions – a hypothesis that is not contradicted by data on the relative abundance of the heavy isotope of carbon, 13C.

I was initially very skeptical of Svensmark's work attempting to link cosmic rays to cloud formation, with that affect acting as an amplifier (in terms of warming and cooling effects) of changes in solar output.  I must say that over time, that work has survived replication effects pretty well.

A Victory of Sorts

This is a nice but probably meaningless gesture to protecting basic Constitutional rights (Hat tip to a reader)

Just a week after the Virginia legislature approved a law to refuse compliance with NDAA“indefinite detentions,” an Arizona law committing the Grand Canyon State to noncompliance with any attempted federal kidnapping under the NDAA now stands just a signature away from implementation.

I guess I would be more thrilled if I thought the state would have passed this if there were a Republican in the White House, but I can't make myself believe it.