Not quite as scary huh?
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Common-sense used to be common... Is it still?
“And when I talk about shared responsibility, it’s because I genuinely believe that in a time when many folks are struggling, at a time when we have enormous deficits, it’s hard for me to ask seniors on a fixed income, or young people with student loans, or middle-class families who can barely pay the bills to shoulder the burden alone. And I think to myself, if I’m willing to give something up as somebody who’s been extraordinarily blessed, and give up some of the tax breaks that I enjoy, I actually think that’s going to make economic sense. But for me as a Christian, it also coincides with Jesus’s teaching that “for unto whom much is given, much shall be required.” It mirrors the Islamic belief that those who’ve been blessed have an obligation to use those blessings to help others, or the Jewish doctrine of moderation and consideration for others.”
The servant who knows the master’s will and does not get ready or does not do what the master wants will be beaten with many blows. But the one who does not know and does things deserving punishment will be beaten with few blows. From everyone who has been given much, much will be demanded; and from the one who has been entrusted with much, much more will be asked.
And, as many of you know, yesterday was the first day of trial in a case that the State of Texas filed against the Justice Department, under Section 5 of the Voting Rights Act, seeking approval of its proposed voter ID law. After close review, the Department found that this law would be harmful to minority voters – and we rejected its implementation... Many of those without IDs would have to travel great distances to get them – and some would struggle to pay for the documents they might need to obtain them.Here is the invite to the speech:
This simple idea—that voluntary exchange is mutually beneficial—is at the heart of modern economics.
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Indeed, a national economy, with all its sophistication and complexity, is simply a very large number of mutually beneficial trades. And a recession is nothing more than a collapse in the number of such trades. Moreover, as individuals expand the number of people with whom they exchange, they are able to consume a wider diversity of products while becoming more specialized in production. Specialized production, in turn, permits greater productive efficiency and allows us to do more with less. It is no exaggeration to say that the expansion of mutually beneficial exchange accounts for the lion’s share of human progress.
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Think of the thousands of talented lawyers, lobbyists, and strategic thinkers who occupy the expensive office buildings lining K Street in Washington, D.C. All of this talent might be employed in the discovery of new ways to bring value to consumers and to expand the gains from exchange. Instead, many of these smart and hardworking people spend their time convincing politicians to hand out privileges to their own firms or fending off attempts to hand out privileges to their competitors
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Privilege can also have a profoundly negative effect on innovation. And a lack of innovation, in turn, can disadvantage an entire society.
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In a classic, sweeping study, economist Mancur Olson went so far as to claim that special-interest privilege can account for the “rise and decline of nations.” As societies grow wealthy and stable, he argued, the seeds of their own destruction are sewn. Stable societies are fertile ground for special interests. These interest groups grow in power and influence over time, and once entrenched, rarely disappear. “On balance,” they “reduce efficiency and aggregate income in the societies in which they operate and make political life more divisive.” Eventually, “The accumulation of distributional coalitions [those that seek rents] increases the complexity of regulation, the role of government, and the complexity of understandings, and changes the direction of social evolution.
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But we need not look so far for examples. Atif Mian of the University of California at Berkeley and Amir Sufi and Francesco Trebbi of the University of Chicago recently conducted an extensive examination of the political activity of the U.S. mortgage industry and housing interests in the run-up to the subprime meltdown of 2008.101 The authors found, “Beginning in 2002, mortgage industry campaign contributions increasingly targeted U.S. representatives from districts with a large fraction of subprime borrowers.” Analyzing more than 700 votes related to housing, the authors found that these contributions became an increasingly strong predictor of congressional votes. They also found that the share of constituents with low credit scores exerted increasing influence over voting patterns. Thus, “Pressure on the U.S. government to expand subprime credit came from both mortgage lenders and subprime borrowers.”102 Indeed, a slew of policies encouraged the expansion of credit in the subprime market. These policies, of course, benefited the privileged firms as well as the privileged subprime borrowers. But they also fanned the flames of an overheating housing market. For nearly a decade, capital and labor poured into housing and related industries, and when the bubble eventually burst, it threw the United States into its worst recession in decades.
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As often happens with privilege, the “solution” to this problem involved more privilege.
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Government-granted privileges are pathological. Privileges limit the prospects for mutually beneficial exchange—the very essence of economic progress. They raise prices, lower quality, and discourage innovation. They pad the pockets of the wealthy and well-connected at the expense of the poor and unknown. When governments dispense privileges, smart, hardworking, and creative people are encouraged to spend their time devising new ways to obtain favors instead of new ways to create value for customers. Privileges depress long-run economic growth and threaten short-run macroeconomic stability. They even undermine cultural mores, fostering cronyism, blurring the distinction between productive and unproductive entrepreneurship, and eroding people’s trust in both business and government.
The two biggest winners look to be Canada and the United States. Canada, with something like two trillion barrels worth of conventional oil in its tar sands, and the United States with about a trillion barrels of shale oil, are the planet’s new super giant energy powers. Throw in natural gas and coal, and the United States is better supplied with fossil fuels than any other country on earth. Canada and the United States are each richer in oil than Iraq, Iran and Saudi Arabia combined.I predict within the next 20 years, we will be the Saudi Arabia and Iran of the world in terms of cheap reliable energy production.
Cacey only missed the cut on his MAP scores by 3 pts. I think he will do just fine in Advanced. I'll fill out the form and have him sign it. Then I'll put it in guidance. You need to come in … to meet with a counselor and sign it. I'm glad you're moving him up. He needs the challenge and definitely can do it. I just couldn't do it because of the requirements.

“During the decades to come, one such development is expected to be a slower rate of growth of the labor force relative to the average growth rate of the past few decades. That slowdown is anticipated to occur primarily because of the aging and retirement of large numbers of baby boomers and because women’s participation in the labor force has leveled off since the late 1990s after having risen substantially throughout the three decades before that.”However, they are not a large impact right now, for even the oldest of the baby boom generation are just reaching retirement age. The average is at the peak of their careers, in their mid/late 50’s. Those that are retiring early could be 1) well off and able to 2) given early retirement packages due to the bad economy as my company has done or 3) lost their job and on benefits that will permanently move them out of the job market. The poor economy is certainly a driving factor of our current depressed labor participation rate:
“The downward trend since 2000 can be attributed largely to the aging and retirement of the baby boomers. It also reflects a leveling off in participation among women between the ages of 25 and 54—who are no longer participating at higher rates than their predecessors did at the same age—and a pronounced decline in participation among people under 25. Participation has fallen even further since mid-2008, as a lack of job opportunities has caused many people to withdraw from or to remain out of the labor force.”So how do we know how much? Is the current drop in the labor force just demographics or the economy or other factors? The CBO tries to answer that:
“The effect of demographics on the overall participation rate can be calculated by holding group-specific participation constant at 2007 (prerecession) rates but allowing population shares to adjust in line with CBO’s projections. CBO estimates that the demographic effect has already reduced the overall rate of participation by about 0.5 percentage points since 2007”So, the aging baby boomers and other demographic affects have reduced the participation rate by 0.5% from 2007. The participation rate has dropped by 2.2% from that time. That is 1.7% or 5.3 million people that left the job market for economic or other reasons.
I am certainly not blaming Obama for all our problems. But if he is going to run around trumpeting a drop in U3 unemployment as proof that is policies are working. We should at least look at how much those policies are costing, what is happening to the labor force and are there other factors involved. That is what I am trying to do. Of course my chart is biased, and zoomed in to the most convenient scale factors, and only puts selected information on it. All data can be manipulated to say what you want. I just wish more people were as critical of the “official” data as they are of those on the opposite political aisle.“Two factors are especially important to the current projections of participation in the labor force. The first is near-term economic conditions. Because of the weakened state of the economy, the labor force is currently well below its potential size.”
“In late 2010, the unemployment rate averaged 9.6 percent, more than 4 percentage points above CBO’s estimate of the long-term natural rate. Accordingly, labor force participation has fallen significantly below its trend rate, as some workers (especially men between the ages of 25 and 54) have withdrawn from the labor force in the face of a poor job market and others (especially teens) have refrained from entering. By the final quarter of 2010, the actual labor force participation rate—64.4 percent—was more than a full percentage point below the potential participation rate as estimated by CBO. It also was lower than what would have been expected on the basis of the historical relationship between the labor force participation rate and the unemployment rate.”
“On balance, the recession has a modest downward influence on the participation rate projected for the 2016–2021 period, principally because some men in their 50s who have become unemployed or have left the labor force as a consequence of the recession are not expected to return to the labor force.”
“CBO’s labor force projections reflect the influence of public policies, especially those that involve taxes on labor or that directly affect the incentive to work in some other way”… “CBO estimates that scheduled changes in policies relative to the policies that were in effect in 2010 will reduce the labor force participation rate in 2021 by about 0.9 percentage points, thus reducing the size of the labor force by slightly more than 2 million people.”…“Specifically, changes in the tax code that are scheduled under current law will increase marginal tax rates on labor income (the tax rates applied to the last dollar earned) during the coming decade and, in CBO’s estimation, reduce labor force participation.”
From: Phil Jones
Sent: 20 December 2007 13:58
To: Bob Ward
Subject: Re: More nonsense on climate change
Bob,
Quickly re-reading this it sounds as though I’m getting at you. I’m not – just at the idiots who continue to spout this nonsense. It isn’t an issue with climatologists. All understand. If I tried to publish this I would be told by my peers it was obvious and banal. I will try and hide it in a paper at some point. I could put it on the CRU web site. I’ll see how I feel after the Christmas Pud.
I would have thought that this writer would have know better! I keep on seeing people saying this same stupid thing. I’m not adept enough (totally inept) with excel to do this now as no-one who knows how to is here.
What you have to do is to take the numbers in column C (the years) and then those in D (the anomalies for each year), plot them and then work out the linear trend. The slope is upwards. I had someone do this in early 2006, and the trend was upwards then. It will be now. Trend won’t be statistically significant, but the trend is up.
This is a linear trend – least squares. This is how statisticians work out trends. They don’t just look at the series. The simpler way is to just look at the data. The warmest year is 1998 with 0.526. All years since 2001 have been above 0.4. The only year before 2001 that was above this level was 1998. So 2cnd to 8th warmest years are 2001-2007
The reason 1998 was the warmest year was that it resulted from the largest El Nino event of the 20th century in 1997/8. We’ve not had anything resembling a major El Nino event since – they have all been minor.
Using regression, it is possible to take the El Nino event into account (with a regression based on the Southern Oscillation Index). This accounts for about 0.15 deg C of 1998′s warmth. Without that 1998 would have been at about 0.38.
There is a lot of variability from year-to-year in global temperatures – even more in ones like CET. No-one should expect each year to be warmer than the previous. The 2000s will be warmer than the 1990s though. This is another way of pointing out what’s wrong with their poor argument. The last comment about CET is wrong. 2007 will be among the top 10 warmest CET years – it will likely be 2cnd or 3rd.
Cheers
Phil
Ward responds:
Dear Phil,
Thanks for responding so comprehensively. I have plotted the data before, and as you observe, the trend is up but the result isn’t statistically significant, which I think makes it open to attack. I think the problem is that NOAA made the following statement in its report on the 2006 data:
“However, uncertainties in the global calculations due largely to gaps in data coverage make 2006 statistically indistinguishable from 2005 and several other recent warm years as shown by the error bars on the [1]global time series.”
I’m not sure how to argue against this point – it appears to imply that there is no statistically significant trend in the global temperature record over the past few years.
Best wishes,
Bob

