Archive for January, 2007

Markets – Expanded Explanation

Wednesday, January 24th, 2007

Markets are not a human invention per se but an impenetrable fact of individualistic human psychology. Markets existed in ancient Rome, in Greece before then, in Indian civilizations farther back, all the way to the primitive civilizations in Africa. Markets existed in the Soviet Union, too, in spite of attempts to eradicate them. The point is that markets existed. They were simply not recognized. The market is a natural phenomena that will continue to arise as long as humans consider themselves seperately from each other and seek to bring about conditions that are favorable to them and those they care about.

Everything exists on a market. Everything has a price. It is not just the sword that bears a price, but the loyalty of the sword-carrier. Prices are not just monetary. A price can also be temporal or psychological, a price against one’s time or happiness. They can be against one’s reputation or power. They can be against one’s health. They can be against one’s charisma. Everything has a price, and everything with a price is dealt with in a market. When you look at the market as being the costs of everything it becomes a lot more obvious that the market isn’t zero-sum, particularly because some of these costs are not paid directly to the person being purchased from. I can sell my time for money by working, my health for money by being a medical test subject, my reputation for money (assuming I have enough reputation to sell, which I personally don’t) by joining advertisements, my charisma for money by public speaking, my power for money by being a politician. All of these transactions generally diminish the resource being utilized (although in some cases, such as medical test subject, politician, or public speaker, you’re not being paid for the loss but rather the risk that loss might occur). These things exist in the market and it is not the market that is new but the money and our study of economics.

Understanding that the market is ever-present and revolves around costs of every kind, around suppliers and demanders, we follow then that like all natural laws we cannot live in perpetual opposition to the market. We are not ants and cannot behave like them. Our diversion from the behaviour of ants – our individual differences and the resultantly different actions taken all throughout our lives – represent market forces. Those who do not value money have some other value which they seek to maximize in every transaction, and they live their lives accordingly.

The fact is that everyone seeks to maximize such values as they care about.

My Wish List

Monday, January 8th, 2007

Five things I would love to see the government do:
1. Enforce 1% turnover of teachers. During the summer, 1% of teachers should not return to their jobs. If less than this number have quit or retired, fire the teachers with the lowest student grade-pass rate from the year previous.
2. Instate a grandfathered elimination of social security. Those who are currently recieving funds would recieve their full check. Those who are not yet recieving funds should not recieve anything.
3. Eliminate federal highway programs. Sell all highways that can be sold. Such highways as can’t be sold are offered to the states or dismantled.
4. Ban logging on public land. Logging should be done on privately owned plots of forest.
5. Privatize the oceans. End open-access policies, divide the ocean into strips, and auction these strips off to the highest bidder.

Reasons why the government should do these things:
1. The educational system is year after year mediocre. The processes for firing teachers are awful, complex and hard. A mandatory 1% turnover rate would help get rid of the worst and push bad teachers into jobs where they are more productive to the economy and less harmful to other people’s children.
2. The social security system depresses our already dismal savings rate, encourages consumerism and debt, and reduces people to dependence on the state. It also requires theft in the form of excessive taxation to fund.
3. The highway system is not good infrastructure. It costs more to maintain than even the smartest owner could get out of it in profit. Roads are terrifyingly inefficient. If the highway system and automobile transport were not so massively subsidized, railroads would take over, with associated improvements in the national economy – and the environment!
4. Logging on public land has always been shown to be environmentally destructive, while logging on private land is usually done in a sustainable, renewable manner. That’s reason enough.
5. Fish stocks are collapsing. I happen to like fish. Open access policies cause over-fishing. Private ownership will cause sustainable fishing. Again, that’s reason enough.

Schools Damage Intelligence?

Monday, January 8th, 2007

You’re looking at the title and I suspect I know what you’re thinking. I know, it surprised me too. There’s an interesting online book which I have been reading lately though. It can be found at http://www.johntaylorgatto.com/underground/toc1.htm and is quite an interesting read. I haven’t finished it yet though, nor done any work verifying the sources. So expect another post when I finish.

The gist of the work is that bad practices at schools are seriously undermining individuality, creativity, literacy, entreprenurial capacity, and even our human potential itself. The book implies that these things are the intent of the system. I doubt whether they’re the intent of the system, but Mr. Gatto makes a highly compelling case that they are indeed happening.

Anyways, I’ll save further reviewing for when I finish the book. In the meanwhile, I encourage everyone to use the link and check it out for yourselves.