Let’s Assume…

Let’s assume, for a moment, that Red and Blue really are inalterable and opposed. It’s not a wise or accurate assumption, but, for the sake of argument, let’s assume just that. What could Democrats do?

Grant McCracken has had a series of posts giving Democrats advice from a semi-disinterested Canadian’s point of view. It’s probably worth a read, left or right. He wants a conversation to really argue sincerely down to first principles in order to build respect for one another. He hopes it isn’t so that there are only a few fundamental, inarguable differences. Free markets can achieve social justice goals, or gay marriage can strengthen families overall.

But pretend for a moment he’s utterly wrong, and there’s no compromise possible on these first principles, but given the shared history and sheer annoyance of it all, you rule out total war or secession (or just giving in, buying a plaid flannel shirt and learning who Michael Waltrip is). What would be a political strategy for Red staters and Blue staters to both get what they want, assuming they still want to live in the same country?

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Not Getting It, Dutch Edition

Well, perhaps I spoke too soon, it looks like some of the Dutch have taken to vigilante action against Muslims and Muslim institutions in Holland. I’d even go so far as to remind them that except for some very sporadic incidents (including the murder of a Sikh, not even a Muslim) that were quickly prosecuted, the aftermath of 9/11/01 in the US where nearly 3000 of us were killed was not very violent.

Remember, wait until you figure out what country may have been involved, and send your military over to do the hurtin’. Then whallop one or two others you noticed on the way in that you never liked anyway. That’s the New European/Transatlantic civilized way. Sigh.

USPS Gets Attack of Clue

OK, it’s well-known that I’m not a fan of the (indirectly) government-subsidized U.S. Postal Service, but they warmed the cockles of my libertarian heart this week.

Apparently an indie/electronica band used the name Postal Service, and the usual protection-money types (lawyers) sent the usual unthinking trademark infringement notice. Then, things got weird:

[T]his week the United States Postal Service – the real one, as in stamps and letters – signed an agreement with Sub Pop granting a free license to use the name in exchange for working to promote using the mail. Future copies of the album and the group’s follow-up work will have a notice about the trademark, while the federal Postal Service will sell the band’s CDs on its Web site, potentially earning a profit. The band may do some television commercials for the post office.

I just have to ask. Has someone at the USPS been reading the Cluetrain Manifesto? Have the last remaining pro-free-market Republicans somehow been shuffled off to administrative jobs there, much like out-of-favor Communists were sent by Stalin to “count trees” in Siberia? Did Joan Baez quit her blackface routine long enough to spike the tea there, trying to one-up Grace Slick?

Whatever it is, it’s working. Although Postal Service (the band) still has an uphill battle with convincing me to use snail mail for anything other than, say, a cheap way to send books around. But seriously, guys, keep it up. With this attitude you will survive when Congress removes your monopoly.

The Dutch Get It

Regardless of who I voted for in Debacle 2004, I still support the idea of fighting back against Islamic terror. My objections are objections over tactics more than the goal. The Dutch of Old Europe are now getting what the difference is: it’s not us versus them, it’s free speech versus Islamicism.

In short, a Dutch director who made a film about the treatment of women under current Islamic traditions was apparently killed for criticizing the way Islam is practiced by much of the umma. His family wanted people to make noise in support of free speech rather than a silent vigil. That’s exactly the right response.

Sadly, this is something that Bush doesn’t get. I’m not convinced Kerry does either, but he at least has made better noises about it so far. But I don’t forget that we are indeed fighting for freedom, and that the most important part of the whole battle is remaining true to that freedom even when it seems tempting to weaken.

You feel me, Ashcroft?

Countries Versus States

I’ve been meaning for some time to explore the myth and reality of national boundaries, and a post over at Cafe Hayek has prompted me to bring out a piece of it.

Don Boudreaux takes on Samuelson on immigration, and points out that there’s nothing about transnational migration that is different in principle from intranational migration. In other words, there’s nothing you can say about immigration of foreigners that doesn’t apply to Mississippians:

Consider California. It is completely open to people from Mississippi. California’s median household income is a whopping 54% higher than is Mississippi’s. […] Californians enjoy environmental and social amenities — beautiful beaches, snow-capped mountains, fabulous weather, big and exciting cities, professional sports franchises — that Mississippians lack. And yet, despite being free to move to California en masse, Mississippians don’t do so. Nor do West Virginians, or Arkansans, or Alabamians.

The reason is that prices and other economic data govern immigration. Most significantly, immigrants must rent or buy living quarters, and each must find remunerative employment (or live with family members). As demand for living quarters increases, rents and real-estate prices rise — putting a natural economic (and non-coercive) break on immigration. Likewise with job opportunities: if the supply of labor rises and thereby lowers employee pay in those jobs experiencing especially rapid increases in labor supply, the urge to immigrate will be dampened.

You can broaden the argument: any interaction between countries that is governed primarily by non-political forces is going to behave much the same way as interactions between regions inside a country. There’s nothing magical about a country-to-country boundary: you have different political rules among U.S. states, yet the District of Columbia (not even a state) has never emptied out , infested the commonwealth of Virginia, and TOOK AHR JAHRBS.

Similarly, jobs moving from New York to South Carolina are, from the point of view of New Yorkers, identical to those same jobs moving to China. The only difference is that federal taxes are recouped on the (lower) wages paid to South Carolinians but not to Chinese workers. Everything else is the same, except the likely racial makeup of the replacement workers–which provides a hint about the fundamental revulsion people feel about offshoring. Corporate profits are still taxed, and any consumption taxes on the product or service are still collected. Since most of the government services that immediately affect New Yorkers come from state and local taxes rather than federal money, the South Carolina relocation is nearly identical to the Chinese case (and since I once lived in South Carolina, I can tell you the factory workers are equally likely to spend their newfound wealth on a vacation to New York City).

There is only one thing that distinguishes trans-national relations from trans-locality relations: the lack of an authoritative governing legal structure. This makes it harder to sue someone in Bangladesh for negligence. Anything else, up to and including armed conflict, can occur equally between localities within a country. The Sudan is proof of that. Just because New York and New Jersey rarely come to physical violence over their disagreements doesn’t mean intra-national fighting doesn’t occur. You could equally give the example of the U.S. and Canada to “prove” that fighting between nations doesn’t occur.

So the only times that your thinking about borders between countries should differ from your thinking about borders between localities is when the lack of a supra-national governing body (and no, the U.N. doesn’t count) makes some fundamental difference. The more you think about it, the less you’ll find that applies.

Too Stupid to Live

I hope I’m missing some key piece of information, but it looks like Darwin has claimed three women who called a friend instead of 911 when their SUV (natch) went into a river. OK, panic reaction, you call the first person you can once you get out and get to shore if you’re not knocked unconscious, right?

Au, contraire. The stupidity went further than that. They did this IN the car instead of, you know, trying to get out in waist-deep water.

Rafael Miranda said he saw the Jeep go off the road and into the water. He grabbed a flashlight and ran to the vehicle, banging on its roof and windows as he attempted to free the victims.

“I tried and I tried and I tried, but I couldn’t do it,” Miranda said. “They were conscious. They were screaming, screaming ‘Help me, help me!”‘

So they sat around and waited for somebody to help them instead of just rolling down the windows or breaking the glass and getting out.

Apparently, they had just come from a party, and one of their number works as a drug counselor, so I’m thinking that psychoactive substances were involved. Whether alcohol or THC, just ‘cuz I think they should be legal doesn’t mean use of them in all situations is smart. And I’m thinking there was a hefty hurdle of “stupid” to overcome here.

Despite This, I Still Think You Should Get a Mac

The Beeb has a piece describing how Macintoshes were used to clean up the original Star Wars Trilogy. In this case, literally, as the main problem seemed to be dirt.

John Lowry, CEO of Lowry Images, says the biggest single problem with the Star Wars series was dirt.

“The films have been, as everybody knows, extremely successful, and success means dirt, scratches, handling of the film.

“Film is, in fact, a very delicate medium. A New Hope, for example, which was the worst of all, had maybe a million pieces of dirt in the first couple of reels of that movie. Unbelievable.”

The praise given to the G5 for video editing should pretty much remove my colleague Corey to have a last-second renunciation of the Dark Side, much like Anakin Skywalker in the last installment of this trilogy.

For me, on the other hand, anything having to do with George Lucas ripping me off for any more money or bastardizing and pussifying his old films (Sorry, George, Han is a much better hero if he shoots first, because then he has what we like to call a “character arc.” This is from a process known as “writing” which has nothing to do with scripting computer graphics.) is anathema. So while these may be marginally the best Star Wars movies, I’m going to give this a miss as Lucas already has too much of my and my parents’ money that he doesn’t deserve, and more importantly, several hours of my life that I’ll never get back.

In spite of this, I still think Macs are cool. If this technology could be used for evil, maybe some clever souls out there could take the DVD and restore the original scenes, or even restore the movies of a better director.

Alcohol Freedom Index

My brother and I were co-ranting about some of the injustices of state alcohol restrictions, when I casually mentioned that it would be great to have an Alcohol Freedom Index so states could be ranked by the freedom you have to purchase and consume alcohol. I did international relations, rather than political science, but some of the techniques to operationalize such an index would be similar.

The tricky thing would be figuring out what goes into the index. The more difficult thing for a lazy SOB such as myself would be doing the grunt work to collect the data for all 50 states. Weirdly, it looks like the US Army has made that a little easier.

As to the tricky thing, I can brainstorm a few but additional measures would be welcome.

  • Are beer and wine sold through special state stores?
  • Can localities make themselves “dry”?
  • Is liquor sold through special state stores?
  • Can individuals receive shipments of alcohol?
  • Does the state only allow the importation of “approved” beverages?
  • Do state labeling requirements block the sale of many beers, particularly imports? (Texas, I’m looking in your direction)

Such an index would be useful in turning the tables on modern-day prohibitionists, left and right. You could easily see examples of laws that serve no public safety or food quality purpose and be able to set state governments against one another. Prohibitionists might attempt to use the index for the opposite reason, but I suspect once Marylanders find out that Virginia is not a drunken hellhole because beer and wine can be purchased in grocery stores (certainly it hasn’t affected property values relative to Maryland), the prohibitionists’ arguments might look silly, and the laws themselves would be revealed for what they are: taxation and middleman job security measures.

I could even see cases made that alcohol restrictions aid alcoholism: when beer is only available from state stores, then any time you go to purchase beer you have an opportunity to purchase a case, rather than a six-pack. Good way to market binge drinking, Maryland! “See the Terps and Tie Twenty-Four On!” It’s even worse in Pennsylvania: you can’t even buy small quantities of beer.

Right now, politically-connected middlemen (such as beer and wine distributors) have a reason to pressure their legislators to preserve their business model, but there’s isn’t an easily-digestable way for the average citizen to realize how much they’re being screwed in favor of a tiny, well-off portion of the population. An Alcohol Freedom Index might be a way that Texans could take a good, hard look at their government and ask why the state that celebrates its independence from Mexico is less free than next-door New Mexico.

The Cato Institute would be the logical think tank to publish such an index, and it looks like Radley Balko would be the logical person to compile it.

What a Crappy Investment

According to CNN:

LONDON, England — A 1,200-year-old Anglo-Saxon penny has sold for �230,000 ($409,000), setting what the auction house said was a new world record for the most expensive British coin.

Curious, I put in a penny in a compound interest calculator at an APR of 3% for 1,200 years, which I thought would be fairly conservative for the range of time. The result?

That original penny, had it been invested, would be worth $25,390,406,045,714.81, which is considerably more than the net worth of the planet as near as I can tell. $25,390,406,045,714.81 is slightly more than $409,000.

The Economics of Open Source Software

At Cafe Hayek, Don Boudreaux writes about cheaper versus costless goods, and how costless is better than cheaper for the overall economy. His main point is about eliminating some of the fear over global trade, but I noticed it’s a nearly perfect analogy for Free/Libre Open Source Software (FLOSS — a catchy, but not sexy acronym).

His hypothetical scenario is thus:

Suppose a housewife one day accidentally discovers that a gallon of tap water combined with a dash of salt, a pinch of flour, a drop of ammonia, a splash of cooking oil, and tiny bits of several other ordinary kitchen ingredients will produce a concoction that cleans and sanitizes dishes, clothing, countertops, sinks, windows, automobile exteriors and interiors, household pets, and infant children. It also is astonishingly effective at fighting cavities, whitening teeth, and keeping gums healthy – and it keeps breath fresh for 24 hours. This remarkable all-purpose cleaner is 100% safe and totally effective. The cost of producing each gallon of this stuff is $0.02.

Further, in a fit of magnanimity, this resourceful woman publishes her finding on the Net, free of charge.

He then contrasts this against her other option, if she chooses to go public:

Now change the example just a bit. This housewife makes this discovery but, in a fit of self-interestedness, she keeps the concoction secret and starts producing it herself, selling it retail at, say, $5.00 per gallon. Its popularity is immediate and immense.

Notice that in both cases the source of innovation is not the production, but rather the recipe for production. In the first example she gives the recipe away, and production is done by anybody who finds it on Google and makes it in the kitchen. In the second example, it’s secret, and she sells the resulting product.

This is identical to FLOSS software. The recipe (code) is given away, and production (installation, sometimes compiling, and configuration) is done by the end-user. So the money that would have been spent on that software is now free to be used elsewhere. The overall economy is better, as other industries can benefit from this efficiency and the money will likely be spent there, and wealth will be created.

Note that only the cleaning products the woman obviates will be affected. Other cleaning products may see growth as people have more to spend. Similarly, programmers at Microsoft may see cutbacks from FLOSS software, but software development will likely just move up the chain. As operating systems become free, businesses may spend more on collaboration software.

Obviously, that’s what I’m betting on with my job. We provide our platform, Syntax CMS for free to anyone who wants to download it. I’m paid to:

  • Further develop the platform for use by my company for our clients’ needs
  • Provide advice on how best to use the platform to implement strategies we come up with for our clients
  • Program new, unrelated software
  • Program new applications using our platform

Our clients also pay us rather than do it themselves as it’s worth it to them to leave the configuration, programming, and hosting to us rather than manage that in-house. They’re experts at policy and other non-profit activities, generally, not software implementation, development, and maintenance. In other words, they outsource to us. And the reason they pay the premium for me to do it as opposed to a guy in Bulgaria or India is that I’m nearby, understand their organization, know the system better because I help develop it, and come up with creative solutions that push the limit of the software.

The time may come when CMSes are a dime a dozen, but then again, we’re not exactly waiting for that time to come. The reason we open-sourced our CMS is that we don’t see much benefit in keeping it secret. There are plenty of other programs out there. We wanted to remove that issue and focus on what makes us worth hiring.

Time will tell, but it’s nice to know that at least some economists think I’m doing the right thing for the economy, not just the right thing for policy-oriented non-profits.