Book Review: "These Truths" by Jill Lepore

I find it appropriate that to close a year that has been marked by personal highs & lows and by so much national political tumult, despair, and existential questioning, I should read the book These Truths by Jill Lepore. This is a book that I got as a birthday gift from my family within 12 months of the publication of this book, but I didn't get around to reading it until these winter holidays because I didn't want my busy schedule at work to lead me to start reading it and never finish, and because in truth I was intimidated by its length & subject matter to start it during the summer (even though I had a lot of time before starting my new job in the fall). As discussed in the preface, the book aims to be a comprehensive political history of the US, starting with the explorations & conquests by Christopher Columbus and then moving mostly chronologically forward from there, and frames this history with the overarching question of the extent to which the US has lived up to its founding ideals over the centuries. The author makes clear that the focus on political history, in conjunction of the length of the book, will require lessening focus from military & cultural history, but I felt that aspects of military & cultural history were adequately covered to support the main arguments, and I didn't feel like I missed those things so much. The author puts forth the ideal that history should be a form of inquiry that goes beyond record-keeping and her hope to be neither blindly praising nor blindly disparaging of the US, while acknowledging that her prioritization of available written records will bias the discussion toward the narrative told by people in power.

The book is rather long, spanning more than 800 pages (in the original hardbound edition) from the preface through 16 chapters and the epilogue. However, as this book is for laypeople as opposed to scholars (the latter exemplified by the book The Invention of Science by David Wootton, which I have reviewed here), the font is a little larger and has generous spacing, making it easier to read. Furthermore, the content of the writing itself flows smoothly, and this is a very engaging read. Thus, I was able to finish the book faster than I originally anticipated. Also, I initially wondered whether such a long book would be useful, because I usually like to seriously grapple with the ideas presented in a book like this, and I envisioned that every page of this book would be so chock-full of ideas that it would be too long; however, as I came to see that the narrative was a bit more fast-paced as opposed to dense, my concerns were allayed.

As I have understood, the main points of this book are as follows. In the opening statement of the Declaration of Independence, "We hold these truths to be self-evident that all men are created equal", there have been endless debates about who "we" are and to which "men" these "truths" should apply. The questions about "we" and "men" have been seen from the beginning through the conflicts about slavery and about the treatment of indigenous tribes, immigrants, and women, and in disputes since then. The questions about "truths" have been seen relatively more recently, since the 1890s, with the rise of political consultants who aim to shape public opinion to their own ends even if such actions lead to divisions that destabilize the country and lead to rejections of notions of objectivity; the author makes this point clear, drawing a straight line from the political consultants of the 1890s to the pollsters of the 1930s to the misguided idealistic computational social scientists of the 1960s to the cynical conservative political strategists of the 1970s to the conservative media personalities of the 1990s to companies like Facebook in the 2010s. Initially, I thought these points could have been made in a better way to form a more coherent narrative through the book. However, I am now more convinced by the book that further reduction of these ideas into a narrative that seems too neat would do a disservice to the complexity and dynamism of US history.

Although the author aims to stay ideologically neutral, it is clear that she writes from a more liberal perspective. This is of course obvious from the central thesis, framing issues of race, gender, and class as central to understanding US history, but it also becomes clear at various points through the text in which the author decries liberal electoral losses or things like that. While the author doesn't hesitate to criticize liberals for hyperbolically overreacting to certain conservative beliefs or public figures or for going so deep into identity politics as to reject the very notion of objectivity, the author's criticism of conservative politicians since the 1950s is more pointed, explicitly casting many such politicians & movement leaders as acting cynically even though many liberal politicians, movement leaders, and political consultants have acted in similarly hypocritical & cynical ways (giving the example of how many consultants for the Obama campaign have been hypocritical in their denunciations of Republican corruption & profit); perhaps it is true that since the 1960s, conservative politicians, movement leaders, and political consultants have behaved more cynically (in frequency and intensity) than their liberal counterparts, and I certainly learned a lot about how extensive Nixon's cynicism was, how early he developed such cynical instincts, and how much it influenced the Republican Party after his presidency, but I would still have preferred to see explicit characterizations as appropriate of certain liberal political actions as cynical. At the same time, the author's moderate stance on racial issues, decrying the ways that conservatives in the 1980s denounced "welfare queens" and the epidemic of police brutality against black people that only became broadly visible beyond black people in the 2010s while also decrying the ways that liberals sanctimoniously call conservatives racist buffoons and the splitting of racial justice movements into racial factionalism via identity politics, liberal stance on gender issues, decrying the ways that women were stymied by men in power in the quest for equality while also looking skeptically upon women who wanted to be free from male society altogether, and apparently progressive stance on economic issues, looking for real antitrust action as well as welfare, seems to align in many ways with my views; I don't know if that is due to real alignment or if that is because people of different political persuasions can feel like they align with the author, because the latter would be an act of genius on the part of the author, and in any case, it all adds up to a striking criticism of liberal politics from the 1950s onward (and especially in the 1990s).

This book illustrates how US history rhymes, even if it doesn't repeat exactly. I found myself surprised at many junctures to see how even in the 19th and early 20th centuries, so many of the debates about the nature of facts, polling, partisanship, economic inequality, civil rights, and things like that are echoed in current affairs. For example, I was surprised to see how so many court cases involving the Fourteenth Amendment in the 1870s involved questions about the extent to which corporations can legally be considered to be persons, and to see how the Republican Party of the 1880s supported trickle-down theories of economics (using almost the same terminology). In this way, there were a lot of things that I learned about US history that reaffirmed my view that arguments based on history must go beyond the last 7 decades and must properly contextualize the circumstances of the last 7 decades within the full 244 years of this country's history. Plus, the author seems to have written this book in a way that makes clear to laypeople with even a passing interest in current affairs how so many past events resemble current affairs. With respect to the point about proper contextualization, the author also does a good job of avoiding common traps of simplistic conventional wisdom. For example, the author clearly shows how the supposed consensus from people watching the same TV news sources in the 1950s & 1960s was an artifact of the Cold War and of lack of racial & ideological diversity, because the first decade of the Cold War largely forced both major political parties to become essentially indistinguishable, preserved a status quo in which positions of power in politics & the media would be held by old white men, and thereby ensured in practice that any deviation from these norms would be implicitly censored. However, the author isn't perfect in this regard, and I think the author's lapses in this way could have been solved by more explicitly connecting discussions of later events to previous discussions in the book of earlier events. Using the same example as before, the author contrasts the partisan media fragmentation of the cable TV environment of the 1990s with the unified network TV environment of the 1950s but fails to connect this with the earlier discussion of why the supposed consensus of the 1950s was actually artificial to a large degree.

There are some bigger problems that I have with this book given its central thesis, and these are all about what the book doesn't discuss in sufficient detail. First, the book doesn't properly discuss the electoral college of relevance to electing the president. There are mentions of electoral shenanigans in the elections of 1796, 1800, 1876, 2000, and 2016, but given how the author clearly shows the expansion of the president's powers and the growing dysfunction of the political system at the federal level in the US, I think there should have been much more discussion of when, why, and how the electoral college shifted from an meaningful body of electors selected by state legislators to a winner-take-all (except in Maine & Nebraska) accounting of the presidential winner & congressional representation in each state. Second, there isn't much mention of Native American affairs following the ratification of the Constitution, nor of the systems of government by Native American tribes before then. Perhaps it can be argued that Native American systems of government didn't really inform and therefore weren't really relevant to the system of government laid out in the US Constitution, or that Native American affairs weren't central to US political disputes after that because those tribes' populations were already so small after the genocides & pandemics committed by & following Christopher Columbus, but this should have been made clearer. Perhaps the relatively small number of extant written records by Native Americans influenced the author's focus, as the author herself admitted could be a possible source of bias, but if the author anticipated that, then she should have consulted other Native American sources too as is evident from the Smithsonian National Museum of the American Indian in DC. Third, there could have been a much more thorough discussion of race in the context of immigration from Europe, treatment of Native Americans, and slavery: I've already read about many of these subtleties in the book The Half Has Never Been Told by Edward Baptist (which I have reviewed here), and read on Wikipedia about how even Native Americans owned black slaves, so I think at least a bit more discussion of these issues would have greatly strengthened the central thesis of this book.

Overall, I really enjoyed reading this book, and I learned a lot about US history from it, even as I felt that it reinforced some of the facts that I already learned as well as some of the views that I already held. I highly recommend this book to anyone who has even a passing interest in current affairs & US history.

Book Review: "Bad Blood" by John Carreyrou

I've recently read the book Bad Blood by John Carreyrou, who is an investigative journalist with the Wall Street Journal. It is essentially a reworking of a series of investigative articles he did with that newspaper about the company Theranos and its founder Elizabeth Holmes, showing how that company's promise of a revolution in medical diagnosis and treatment by replacing expensive medical testing equipment and the need for large blood draws with small devices that can do hundreds of tests using only a few drops of blood was based on fraud, through fabricating and falsifying test results submitted to investors & regulators and even when demonstrating their devices to investors in person. While it does give some background about the early life & motivations of Elizabeth Holmes as well as some of the other key players in Theranos, and though it does give at least a little background on everyone introduced by name, the story makes clear that lies and falsification of data were occurring even within the first couple of years of the company's existence, and shows how as more people got involved, it became clear just how much more deceit was occurring. In this sense, I expected there to be a sharper transition period from reasonable activity to fraud but was surprised to see such fraud taking place so early on and so consistently throughout the story, though there certainly was a transition from fraudulent behavior being limited to occasional circumstances mixed with typical Silicon Valley hyperbole to fraudulent behavior being the modus operandi of the company at a systemic level especially as the company neared its product rollout through corporate partnerships, to the point where Holmes and her second-in-command/boyfriend Ramesh Balwani had basically turned the company culture into a religious cult that tolerated no dissent or raising of ethical concerns.

The book is quite well-written for the most part. The introduction of each character in the story is clear & relatable, and the progression of events is fairly easy to follow, making for a compelling & engaging story. There are two minor criticisms that I have of the book, and in some sense they may not really be addressable given the way the events themselves unfolded. One is that the last 6 (out of 24) chapters, in which the author suddenly introduces his own role in the story after describing how one of the people involved calls the Wall Street Journal, felt a bit disjointed. In particular, the chapters before seemed to tell a cohesive story from the points of view of those directly involved in the story, whereas those final chapters had rougher transitions between the author's own conflicting attachment to the story and detachment from the various players' personal lives versus those players' own attachment to the scandal as they directly observed it; this could have been made smoother, though I think the suspense built by reading about the extremes to which Theranos went to harass & intimidate its former employees (without having direct proof of their involvement with journalistic activities) made up for this deficiency. The other is that perhaps just because of how early fraudulent activity played a role in the operations of Theranos, there wasn't much room to really meditate on how Holmes and the others who really believed in Theranos could willingly resort to fraud (apart from a short statement about this in the epilogue), so in that sense, I felt a little let down as I simply read a straightforward story about corporate fraud without being prompted to think about broader ethical & moral implications. Overall, I enjoyed reading this book, and would recommend it to anyone who wishes to read a nonfiction thriller about corporate fraud involving medical technology.

Book Review: "Capitalism Without Capital" by Jonathan Haskel & Stian Westlake

I've recently read the book "Capitalism Without Capital" by Jonathan Haskel & Stian Westlake. I found out about this book from a reading list by Bill Gates that was circulated by various media outlets online, which suggested that this book would have a lot to say about the currently relevant issue of people's personal data held by large online companies like Facebook & Google. This turned out to not be the case, as there was only a single brief mention of this point later in the book. Instead, this book is a discussion about how companies in many developed countries rely more on intangible assets than tangible assets, how associated trends can explain many issues faced by societies in those countries today, and why governments need to take notice of these trends. The authors start by carefully defining their notions of investments & assets, along with tangibility (essentially physical goods that can be valued & traded relatively easily) versus intangibility (things like institutions, rules, know-how, intellectual property, and social relationships that are much harder to quantify & trade), and then discuss why the values of intangible assets are harder to measure and how various econometric organizations are trying to improve this situation. They then describe their central thesis, which is that intangible assets have much greater scalability, sunk costs, spillover effects, and synergistic effects compared to tangible assets, and this leads to qualitatively different economic & political outcomes. This leads to discussion of specific points, including the role of intangible assets in secular stagnation (low business investment levels despite low interest rates) as well as income & wealth inequality, the issues associated with creating infrastructure for as well as financing investment in intangible assets, the role of intangible assets in promoting a cult of management and the greater role of management in turn as intangible assets become more important, and the questions governments will have to face with respect to managing this growth in intangible assets.

I thought this book was meant for lay readers, but it seems more meant for policymakers, entrepreneurs, and the like, and it is a bit dense. Nonetheless, it is quite well-written, and I enjoyed gaining more perspective about these aspects of the economy that I wouldn't have consciously considered otherwise. I particularly appreciated the summaries at the end of each chapter, as the authors seemed to implicitly acknowledge the density of information in their book and wanted to refresh readers' minds after going through each chapter. Moreover, I really liked the fact that the authors were more interested in laying out the facts as they interpreted them instead of making bold, sweeping proclamations about the generality of their analysis: they really tried to avoid the golden hammer fallacy of trying to contort their explanation to fit every possible problem. As a particular example, one of the features of intangible goods being synergy would seem to suggest that as synergistic/agglomeration effects are correlated with dense urban development, then policymakers should promote dense urban development to promote the formation of synergy/agglomeration clusters and that this should be a guaranteed way of growing a local economy; however, the authors take pains to mention at multiple points in the book that the empirical evidence for this is sparse in general, and where it does exist, the results are mixed, thereby providing a testable & falsifiable scenario that leads to a failure to reject the null hypothesis. As another example, both this book and the book Radical Markets by Eric A. Posner & E. Glen Weyl (which I have reviewed here) discuss Friedrich Hayek's anecdote of pencil-making to illustrate how markets efficiently communicate information via prices, but while the authors of the other book uncritically praise and extend that notion, the authors of this book are quick to show how in practice, gathering price & other information as well as conducting bargaining can be quite costly, which is how Ronald Coase concluded that people organize into firms with hierarchies in order to lessen these costs and uncertainties. Also, in the chapter about what governments should consider doing, the authors explicitly state that they are not trying to suggest the existence of quick fixes, but are instead laying out the challenges in full and suggesting possible general approaches that governments can tailor to their specific needs. Overall, I would need to read a lot more to more seriously evaluate the claims in the book, so I wouldn't be able to recommend this to lay readers, but specialists in the field may find this book interesting & thought-provoking.

Book Review: "Hidden Figures" by Margot Lee Shetterly

I've recently read the book Hidden Figures by Margot Lee Shetterly. It weaves together the true stories of a few particular mathematicians, who happened to be black women (among a larger group of such female black mathematicians), who made extremely important contributions to the development of American warplanes in WWII and then spacecrafts during the 1950s and 1960s, including the crafts that took John Glenn to space and then the Apollo 11 astronauts to the moon. It highlights the skills of these women and their own personal lives, in conjunction with the broader social issues of that time.

The book is moderately long, but it is very well-written and engaging. I liked seeing the descriptions of these towns that flourished during the wartime years and the space race as bustling with life and energy, because with the trends of deindustrialization starting from a few decades ago, I haven't really been able to see descriptions such towns as much beyond shells of their former selves. This also ties in with the discussions of the military-industrial complex and how the formation of these towns during the wartime was a symptom of that phenomenon, which in turn meant that as wartime research facilities and organizations were often temporary, even if they hired black people, allowing them to economically advance to the middle class, those economic advancements became tenuous due to the temporary nature of such jobs, such that when the goal was met (whether it was winning the war or landing on the moon), those facilities would be closed and the employees there would be displaced with few, if any, alternatives available to them. Of course, pervading the book were descriptions of the explicit and implicit forms of institutionalized racism and sexism, whether at work in the form of barriers to career advancement or collegiality/free exchange of ideas, or in the context of daily life with respect to the civil rights movement, sit-ins, et cetera. Not only were those issues discussed in a broader context, but their impact on the specific protagonists of the book was detailed, showing how these women had to deal with so many struggles just to stay afloat while still trying to achieve the same goals to which any other family of any ethnicity would strive, namely, caring for spouses and children, putting food on the table, balancing work and family, and being able to raise children in a safe environment and educate them well; it really helped that the author so masterfully portrayed the mundanity of daily daily life for these women to show how stupid obstacles, like legalized segregation and institutionalized barriers to career advancement, could get in the way of the passion that these women had for STEM. It was also interesting to see that black communities like those in this book were acutely aware of how much more advanced the USSR and other communist countries were in terms of race and gender relations, and actively called out the US on its own failings in that regard (in the context of the US trying to ally with African and Asian countries that used to be European colonies), while these black women, despite being in the middle of such institutional bigotry, kept their heads held high and persevered in pursuit of their goals to contribute to STEM R&D. Related to that, it was also chilling to see how de facto segregation has persisted in education in many places through the US resulting in school facilities that in many poor places are no better than they were several decades ago, and also to see how many of the arguments for white parents sending their kids to private schools at that time were more explicitly about preserving racial segregation in education. Overall, I enjoyed this book thoroughly and would strongly recommend it to people for a clear and engaging account of how NASA and the social issues of the middle of the 20th century became intertwined.

Book Review: "Our Declaration" by Danielle Allen

I recently got to read Our Declaration by Danielle Allen. It's a book that carefully goes through every word, sentence, and passage of the US Declaration of Independence from 1776 to argue that the broad notion of equality of all people, not just of white landowning males, was embedded in the text even then (and are not simply hopeful modern reinterpretations), and that such a notion of equality is a precursor, rather than subjugate, to liberty (the latter point being more commonly found in today's political culture).

The first few chapters seem rather distracting, because while it's nice to hear about the author's own passion for and history with this subject, those plus the next few chapters obscure the structure of the argument of the book; only when the author starts to analyze the text of the Declaration starting from the beginning of the first sentence does the book really pick up and the structure of the argument of the book actually become self-evidently clear (which is in some sense appropriate, given that the author herself took time to conclude that this methodical and structured reading of the Declaration is the correct one, so it would likely take others quite a bit of time to reach the same conclusion too). Most of the book is structured as a detailed, slow, careful, methodical exegesis of the text of the Declaration in the service of a defense of equality as a companion, not subjugate, to liberty; its drawing forth philosophical arguments and examples through only the text and the immediate history surrounding the drafting of the text, rather than focusing too much on the broader events surrounding that time, makes this a compelling alternative view of the Declaration, and seems carefully crafted to essentially be a liberal form of the originalism and textualism espoused by conservative jurists today (of the mould of Antonin Scalia), so for these reasons, I rather enjoyed the argumentative style of the book. While there are some parts of the book that may seem repetitive, given that the Declaration is covered from start to finish in order, the structure of the Declaration is almost like a fractal, and I appreciated the author making this structure evident: at many different scales (whether within a sentence or over the entire text itself), arguments emerge like that of people having the right to good government, that bad government does not respect those rights, and that people therefore have the right to alter their government in such cases.

There are a few main criticisms I have of this book. Throughout the book, the author argues that the essence of democratic government is that everyone has a qualitatively equal capability of judging their own happiness and considering their past and present to then judge their own futures, and that these come together through communication, giving the example of how the drafting of the Declaration required the revolutionary framers to rely not only on their own judgment but mostly upon the experiences of ordinary people from all of the American colonies. While the author presents this as a model of democratic information-collection going into democratic writing, I think the confirmation bias inherent in this approach is actually the main flaw of the book: the author tries to be too clever in separating qualitative from quantitative statements of equality, forcing her to sweep under the rug the issues of demagoguery & mob mentality overwhelming critical thinking (especially in conjunction with lack of education among large groups of people), as well as of different marginalized groups (whether poor white people, black slaves, or native peoples) perhaps feeling differently about continued British rule than those who were more willing to share negative feelings therein — these issues of mob rule, factionalism, and guaranteed rights would be fleshed out more in the Constitution, but they are not so self-evident in the Declaration as the author seems to suggest. Furthermore, the author argues that the dissonance between the lofty ideals of equality in the Declaration and the brutality of chattel slavery and genocide committed upon black and native peoples, respectively, is only due to the lack of willpower and desire at that time to bring those lofty ideals into concrete action applicable to black and native peoples, and that would come later; while that may be empirically true in a historical sense, from a philosophical standpoint it seems strange to give the revolutionaries such a pass on those issues given that the author argues in the same passage that the Confederacy was founded in the Civil War using words that made explicit the opposition to notions of equality in the Declaration (thus justifying a more expansive reading of equality from the Declaration even in those days), and given that the author takes care to point out the many drafts of the Declaration that explicitly speak out against chattel slavery and brutality in war. Additionally, people complain about those who say one thing and do another, exactly because those who put forth a call to action can be reasonably be expected to be most likely to take such action, so such dissonance makes one wonder whether such action is really feasible at all, or whether those calling upon others to act in some way but themselves act differently are trying to exploit a loophole (like dehumanizing black people to justify their continued enslavement as being consistent with the notion of human equality). Moreover, while the author does point to several drafts denouncing slavery to mitigate the reality of slavery in the face of the ideals of the Declaration, there seems to be no such argument with respect to women or native peoples, and the latter is especially troublesome given that the Declaration does make a few extremely negative references to native peoples (appropriating land, or fighting "savages").

Overall, while my criticisms do make me feel a little less certain about some of the specific arguments promulgated in the book, I did rather enjoy the methodical textual analysis with only the most relevant external information injected when appropriate. I should admit that I read through this book perhaps a little faster than the author wants readers to read it, but having gotten a new view of the Declaration, I'd be more inclined to reread both the Declaration and this book at a more deliberate pace at a later date. The arguments are interesting and clear, so I'd recommend this to anyone who's interested in the subject, especially those who may be feeling a bit down on the notion that the US is a country for them too. Follow the jump to see a few more of my specific thoughts about this book.

Book Review: "Weapons of Math Destruction" by Cathy O'Neil

I've recently read Weapons of Math Destruction by Cathy O'Neil. It is a short but dense exposition into the various ways that computer algorithms can determine the courses of people's lives and exacerbate existing societal inequities and biases/prejudices, in areas like education, civic engagement, education, health at the workplace, and many others. It argues that while many algorithms used in big data can be used for good, many instead widen inequalities and reinforce various cycles of poverty because of their opacity, lack of accountability, poor use of statistics, and lack of critical examination by those in charge (who instead use results and predictions generated by such algorithms to fire workers, deny opportunities to potential employees, financially prey on poor people, and so on, making such predictions self-fulfilling prophecies as only confirmatory data is fed back in); in particular, many of these algorithms and models use questionable proxies to predict certain attributes or behaviors (especially when the desired attributes are hard to quantify but the proxies are easy), these models are rarely transparent in what inputs are collected and how they are manipulated to produce outputs, and further research and fine-tuning are rarely performed to correct models that most humans would recognize produce incorrect results (but which computers would miss). It concludes that extensions of existing regulations on use of health and financial data are needed to curtail the misuse of such algorithms, and that simultaneously data scientists need to be scrupulous about the ways that their work is used and developed.

I rather enjoyed reading this book: it's pretty fast-paced, yet gives many detailed examples of the abuse of these algorithms to form a compelling narrative. Additionally, it in many ways follows the book The Attention Merchants by Tim Wu (which I have previously reviewed), because as that book shows the various ways that companies collect and sell customer data, this book shows the various ways that data can be used for the benefit of those companies (even if that works against some of those customers). There are only two issues that I have with this book. One is that the few times that politics comes up, the author's political bias (in favor of liberals in the US) is obvious; perhaps this is just due to the nature of the author's passionate crusade against abuse of algorithms and for institutional action uplifting poor and marginalized people, as that would necessitate regulation of such mathematical instruments, which would be (and has been) loudly opposed by large corporations maintaining their short-term profits and long-term status quo through these algorithms as well as the conservative politicians that they support. The other is that there aren't too many examples of big data and related algorithms truly working toward greater socioeconomic equity, especially when such algorithms are finding patterns that wouldn't be found by humans; while I get that the author is trying to build a brief but dense narrative warning against the excesses and abuses of such algorithms (as she professes herself to not be a big data evangelist), I would have liked to see more nuanced examples of proper uses of big data, because as this book stands, it seems just as one-sided/polemical as uncritical big data evangelism. Overall, I certainly feel like I got a better sense of the potential dangers of unchecked and uncritical use of algorithms to shape the economy and society. Plus, now that I'm about halfway through my PhD, I've started to think more about the sorts of jobs that I'd like to take after I finish. I've decided that I don't want to go into finance because (as mentioned in this book too) I'm not comfortable with playing with other people's money, as it is too easy to be seduced by mathematical simplicity and elegance into doing questionable things. That said, one thing (among the many) that has caught my fancy has been studies of policy problems (especially as related to STEM fields, but as they affect ordinary people); however, the story in this book about the role of the Mathematica Policy Research company in developing the arbitrary and statistically unsound metrics for evaluating teachers in DC public schools has made me realize that I'll need to make sure if I end up joining a policy research organization/consultancy/think tank that the organization that I join is responsible and transparent about the data that it collects and processes as much as possible.

Book Review: "The Victorian Internet" by Tom Standage

I recently read The Victorian Internet by Tom Standage. It's a brief history about the technical development of the telegraph, developments in telegraph operations, its uses, its rise, and its eventual decline. It particularly goes into the various ways that optical and then electrical telegraph systems were developed by different independent inventors, the difficulties in laying cables for long-distance telegraphy, and the ramifications of the telegraph for business, politics, military actions, newspapers, and day-to-day communications among ordinary people (despite the usual hype of that time about how instant communication would bring people together and effect world peace), comparing these issues to the issues people care about with regard to the Internet, given their similar network structures (though do note that this book was written in the late 1990s, so the author couldn't have even imagined things like Google, Facebook, or Twitter at that time). It's a short book that is a fairly engaging and fast-paced read throughout, so I'd recommend it; my only minor complaint is that the discussion of messaging through pneumatic tubes, while certainly relevant to the chronological history of the telegraph, seems to be a bit of a distraction from the main point of how relatable the 19th century telegraph system would be to users of today's Internet. Follow the jump to see a few more points about the book.

Book Reviews: "Modern Liberty" by Charles Fried & "Development as Freedom" by Amartya Sen

I recently finished reading the books Modern Liberty by Charles Fried, and Development as Freedom by Amartya Sen. The first was part of the "Issues of Our Time" series, edited by Henry Louis Gates Jr., of which Whistling Vivaldi by Claude Steele (which I recently reviewed) is also a part; the second was one I chose as a comparison book mentioned in a review for the first on Amazon. Both deal with liberty and freedom, but in rather different ways. Below are my brief, decidedly nonspecialist thoughts on these books (content and style). After the jump will be some musings about issues related to these books. I am not a philosopher, nor am I an economist or sociologist, so many of the things that I say will probably be wrong or inconsistent; please feel free to point out issues in the comments below.

The book by Fried is a detailed defense of what appears (to my untrained eye) to be a centrist libertarian conception of liberty. The author essentially posits that human actions, and therefore the liberty to do so, are essentially individual in origin, so individual liberty should be held paramount, and can be taken to exist even in the absence of the state. He acknowledges the legitimacy of the state to tax and spend (even when the taxation is progressive), but argues that people should keep in mind that the state can simultaneously be the best friend and worst enemy of liberty. Additionally, he argues for equal application of the law as much as possible, and for the state to not interfere with people's choices when such interference would reduce choices that they would otherwise have no problem making, especially when those choices do not directly harm others in a criminal manner, focusing on three examples in particular throughout the book. With this in mind, he argues that the state should discourage certain behaviors through taxation rather than through heavy-handed direct intervention, and that stability in the laws and tax systems enforced is the least bad thing that the state can do with respect to liberty. Though I've focused specifically in pointing out things related to the state, he focuses on more abstract philosophical notions of liberty while simultaneously bringing the reader's attention to more mundane matters such as work, market transactions, and even sexual intercourse to better illustrate these points.

The book itself is fairly short, and moves along reasonably quickly (though I admit that I did get lost in some of the finer philosophical points). When introducing each justification for its conception of liberty, it also introduces each common criticism of that justification, and tackles almost every criticism head-on, without fear. There are quite a few things that I don't agree with about the ideas in the book. The overarching difference that I have is that this conception of liberty focuses on its origin within individuals, whereas I see the manifestation of liberty as being more dependent on societal contexts. An example of this would be in his contention that things like language, music, and culture originate within individuals; I would posit that these things would be meaningless for a single human in vacuum without any human contact, and it is only contact (and the history of such contact) with other humans that gives these things meaning. This is what I see as further leading to the author's general neglect of the consequences of liberty, choosing only to talk about the origins and processes of liberty; while I can see that this is philosophically consistent with the axiomatic treatment of the individual origin of liberty (and this also seems to be consistent with the desire for a static, predictable state due to its focus only on the unchanging processes of liberty, though I wouldn't agree with that either), the biggest issue that I have is that the author brings up the problem of the homeless person who has liberty but cannot make use of it if all property in that person's area is privately owned (and would therefore lead to the homeless person being kicked off of that property), but dances around this issue without really addressing it in a satisfactory way. With all of that said, I did enjoy reading this book overall, as it got me to think about the fundamental origins and processes of liberty in a new way, because before that, I was really only thinking about its manifestations/consequences.

The book by Sen is a longer exposition into how economic and political freedoms have to go hand-in-hand if they are to both be meaningful, and how human development is part and parcel of both. The author goes into how while utilitarian consequential formulations and libertarian process formulations of liberty are both important, both must be taken together instead of taking one or the other for liberty to be meaningful in the context of economics or politics. He further discusses how measures of economic development based solely on income or GDP/GNP per capita are quite flawed, so more nuanced, granular metrics are required, based on how different people's "functions" and "capabilities" operate, are fulfilled, and can be altered. Ultimately, he demonstrates that free markets and economic liberty, in conjunction with institutional corrections for certain glaring inequalities in capabilities, would allow the greatest human development leading to the greatest freedom.

Reading this book made me realize that I had intuitions for many ideas that the author clearly put into words (so I guess for now my lay economic views have a lot in common with those of Amartya Sen); in particular, I was already thinking about how Fried's neglect of the consequences of liberty made his treatment somewhat incomplete, and how humans being social animals means that the circumstances of one's political and economic existence cannot be ignored when considering the meaning of liberty, even before picking up Sen's book. However, there are a couple of issues that I have with this book. One is that there are several times where he repeats a point overly much. I don't mean that he just just repeats few words over the course of the book: I mean that he sometimes repeats entire multi-paragraph passages for no good reason, so the book could be a lot more terse and concise than it is. The other is that he argues that loss of income can affect a person mentally and physiologically in more lasting ways than simply by loss of purchasing power, especially if that person is ill, disabled, or so on, so he argues that specific institutional safety nets (presumably like social security, food stamps, and so on) and not simply lump-sum transfers of money (or increases in income) are necessary for countering poverty and promoting human development. I'd argue instead that if he can say that loss of income (and not just low income) is enough to push people into that downward spiral, then it would stand to reason that providing a strong enough guaranteed safety net through a simple money transfer (essentially, a minimum income, which I will discuss farther below) should be sufficient to prevent that, while simultaneously giving people the choice as independent agents to spend it as they like. Finally, at vary points, he promises to discuss how lessons from development in underdeveloped countries can be applied to the development of marginalized groups in more developed countries, yet as far as I could tell, that promise was never satisfactorily fulfilled. (Also, as a minor quibble: he makes reference to Madhavacharya having catalogued various schools of "Hindu" thought, including Buddhism, Jainism, and various atheist schools of thought, while calling him a Vaishnavite. A simple Wikipedia search shows that this Madhavacharya was a follower of Advaita philosophy, and was a separate person who was born only in the last few years of the life of the Dvaita founder Madhvacharya. It seems odd that Sen, who seems familiar with the "atheistic schools of Hinduism" catalogued by the later Madhavacharya, would make this error, so perhaps this was an oversight by the editor, or maybe the distinction between the two only became clear with scholarship after the publication of this book.)

In the Amazon review that I read, it seemed like these two books would oppose each other, but I would instead posit that they complement each other nicely. That brings me to the end of the review. Follow the jump to see some further thoughts on minimum income and related things that have been bouncing around in my head of late.

FOLLOW-UP: Personal, Corporate, and In-Between Fraud

This is a follow-up to my post from last month about the VW emissions cheating scandal and the case of the arrest of the "clock kid" Ahmed Mohamed.

Regarding the VW emissions cheating scandal, VW executives blamed (link from AP, Reuters, NBC News) "a couple of software engineers". Given how the cheat was pretty much impossible without a collaboration between many engineers of different kinds (mechanical, software, electrical, et cetera), all I can say is the following: HAHAHAHAHAHAHA!

Regarding the case of Ahmed Mohamed, it turns out that he and his family are moving (link from Jessica Contrera, Washington Post) to Qatar, and that this decision was supposedly made less than 24 hours after meeting President Obama in the White House. In my previous post, I pretty much unconditionally defended him against accusations of fraudulent behavior. I still don't believe that he personally would have brought the clock in just to incite the response from the school and police that transpired, because for one, that would require a massive conspiracy, and for another, that absolves the school and police of responsibility for their actions. That said, I am now less sure of his family's actions and motives following the arrest and its initial reporting. Clearly they took advantage of the massive publicity, and while I'm certainly not a fan of that sort of exploitation of publicity, I was hoping that would be the end of the story. Yet now, I can't believe that a Sudanese immigrant family, where the father has run for the presidency of Sudan before, would within the span of 24 hours decide to move to Qatar, unless they already had high-level connections there. My guess now is that while this story would have likely been widely shared regardless of the family's behavior, a lot of the publicity was probably due to the family's influence itself, and they were able to use that to move out to Qatar (and use the story to get the Qatar Foundation to provide Ahmed a scholarship to sweeten the deal). It probably wasn't because of Ahmed's inability to go back to school in his district, because there have been plenty of other cases of kids who have been in situations where they can't go back to school in their home districts because of similar high-profile incidents. In such cases, the family usually moves to another district within the state, another state, or maybe their home country if they immigrated here, as opposed to a totally different country. Anyway, I still do wish Ahmed the best in his studies of engineering, but I now feel at least partially duped in some way by this whole turn of events, and hope that this story finally dies once the family moves out of the country.

Personal, Corporate, and In-Between Fraud

I realize that the two (really, 1.5) main topics of this post are already somewhat old news, having happened last week and having not really persisted into the news cycle of this week. That said, I didn't have a good opportunity to write this last week, and the end of the month is coming (and I didn't have any other posts this month), so I figured now is the best time for me to write this. Follow the jump to see more.

Cap and Trade and Soda

A few days ago, my family and I went on vacation. On the way back, my family and I were discussing various things including some matters of politics. One thing that came up was some of New York City mayor Michael Bloomberg's recent actions. I expressed the view that the ban on soft drinks larger than 16 ounces seemed rather heavy-handed. (After reading a little more about the exceptions for fruit drinks along with sales at grocery stores, I'm a little more happy to see that, but I still feel the ban was heavy-handed.) I then heard the argument that even if it is heavy-handed, it does help combat the obesity crisis by reducing access to drinking 16 ounces of soda at a time, because even if it is still technically possible for someone to fill up an 8-ounce cup twice, human psychology is such that said person would only fill up once, because for many people the convenience of filling up once trumps the desire to have as much as possible. I then wondered what other alternatives could be considered. The simplest alternative would seem to be a tax akin to taxes on cigarettes; if the large sodas are taxed heavily at such venues, people would naturally be discouraged from drinking as much. I have taken the class 14.03 — Microeconomic Theory and Public Policy, though, so I have seen that in many cases a Pigovian tax scheme like that may not achieve the most efficient outcome because it is difficult to adjust tax rates to control quantities precisely. Then I also remembered learning about cap and trade schemes to control quantities. Would that work? Let's take a look after the jump.

Frictions, Subsidies, and Taxes

One of the things I learned in my high school AP Microeconomics class was that a tax causes the supply curve to shift to the left, making the equilibrium quantity decrease and price increase. Consumer and producer surplus both decrease, but while government revenue can account for some of the loss in total welfare, some part of total welfare gets fully lost, and this is what is known as deadweight loss. I didn't have a very good intuition for how this worked at the time (though I was able to get through it on homework, quizzes, tests, and the AP exam). At the same time, though, I thought that a tax should be fully reversible by having the government subsidize producers, and that as this would be the opposite of a tax, supply would shift to the right, the equilibrium quantity would rise and price would fall, and there would be a welfare gain.

Then, when I took 14.01 — Introduction to Microeconomics, we again discussed the situation with a tax. Then we talked about subsidies, but I was confused because the mechanism seemed to be in providing a subsidy to consumers rather than to producers. My intuition at that point was that taxes were creating deadweight loss because producers who wanted to produce and consumers who wanted to consume near the original equilibrium could not do so after the tax, so some transactions were essentially being prohibited. However, I still didn't quite understand why a subsidy would create deadweight loss, because it seemed to me like consumers who wanted to consume more and producers who wanted to produce more than the original equilibrium quantity could now do so, meaning it seemed to me like more transactions were being made possible. That said, I did understand why the government would never subsidize producers: unless the market is perfectly competitive, producers would rather collude and pocket their subsidies while keeping prices high when they can. On the other hand, consumers prefer consuming, so subsidizing consumers is a more surefire way of increasing the equilibrium quantity, even though the price would go up rather than down.

(In 14.04 — Intermediate Microeconomic Theory, we barely touched on deadweight loss in the way that it is covered in more traditional microeconomics classes.) Now, in 14.03 — Microeconomic Theory and Public Policy, I think I better understand the intuition behind deadweight losses stemming from taxes and subsidies, and why a subsidy is not the opposite of a tax. In a tax, the government might try to target some new equilibrium quantity below the original one, so the tax revenue collected, which increases total welfare, is the difference between the willingness of consumers to pay and the willingness of producers to accept at that quantity multiplied by that quantity. Consumer and producer surplus both decrease, and the tax revenue contribution to the increase in total welfare is not enough to offset these two, so there is an overall deadweight loss. A completely isomorphic way of picturing this is by considering the tax falling on consumers so that the demand shifts to the left; in both cases, the equilibrium quantity drops, the government collects its revenue, surpluses drop, so deadweight losses appear.
Meanwhile, for a subsidy, the government might target a higher quantity than the original equilibrium. The spending on that subsidy is the difference between the willingness of producers to accept and the willingness of consumers to pay at that quantity multiplied by that quantity. Consumer and producer surpluses both increase, but together they do not increase enough to offset government spending which is an overall drain on total welfare, so there exists a deadweight loss.

It's interesting that taxes and subsidies are not opposites. The intuition is that for a tax, the revenue is not enough to compensate for the welfare losses of consumers and producers because the new equilibrium quantity is lower. By contrast, for a subsidy, the spending is too high compared to the welfare gains of consumers and producers because the new equilibrium quantity is higher. It looks like it is not possible to spend money given by tax revenue to undo the effects of a tax; instead, the government can only overshoot and overspend. It reminds me very much of how friction works: moving in one direction on a surface with friction causes energy loss, while turning around to move in the other direction on that same surface most certainly does not cause energy gain. Essentially, in this model, the market is frictionless, and the government introduces friction.

Of course, this essentially contradicts Keynesian models of government taxation and spending and their respective effects. That's why care must be taken when putting microeconomic models in a macroeconomic perspective. This also doesn't consider externalities, less than perfectly competitive market structures, et cetera. Anyway, I hope my musings on this may help give other people some intuition on simple issues of deadweight loss in microeconomic theory.

Book Review: "The Undercover Economist" by Tim Harford

(CC-BY-NC-SA Das U-Blog by Prashanth)
This is also a borrowed book (from the same relative that lent me the book Mokshagundam Visvesvaraya). That said, I will say right off the bat that this is a far superior book in terms of writing style and quality.
I took an AP Economics course this past year, so I was somewhat familiar with most of the concepts presented in this book beforehand. However, when I read the book, I realized what I had been missing.
My class's questions didn't have any apparent relation with what was going on in the world. Why should I care if XYZ Corporation's average variable cost is higher than the market price of the good it sells? One is truly an economic theorist if one weeps at the thought of a hypothetical company shutting down to minimize costs. On the other hand, this book relates economic concepts to things that matter, like why coffee is sold at different prices and why different land areas fetch different prices.
Harford first talks about the ideas of rents and profits, continuing with the various functions of prices as signals and the various means companies try to extract different prices from different customers (for the same product). He then talks about externality taxes and subsidies, continuing with market failures occurring due to the presence of inside information (i.e. information that one side but not the other doesn't). He then continues with a discussion on the stock market and on bidding wars. He concludes with discussions on why poor countries remain poor and on the effects of globalization on various countries, both rich and poor.
In short, I am convinced. By using relevant, practical examples in explanations of every concept introduced, he has convinced me that while the free market can solve most problems, government intervention is generally required when externalities show up (and these can't be solved by market negotiations); this is a very reasonable-sounding idea, without resorting to the ideologies of either "government is always bad" or "markets are always harmful".