Teachable Moments

The President has condescendingly talked about Teachable Moments in the past. In other contexts, he has promoted and promised Openness in Government. His Administration has been far from transparent, and has relied on Washington-insider deals to do and mostly not do anything. While modest gains have been made particularly in terms of transparency of government contracts, precious little of the vast amount classified data has been revealed to the public.

Meanwhile, in the name of safety and security, Federal Government drones, undeserving of basic customer service roles, have been deputised to examine naked photographs of all travellers and to grope their genitalia as a matter of standard procedure. When I was travelling last week, I sustained an uppercut to the groin because the TSA agent was nervous, untrained, and utterly incompetent. At this time, I am still considering legal action.

Recently, citizens have taken matters into their own hands and have shared classified documents with the public through WikiLeaks. This action has been condemned by the same administration which has promised openness. Upholding the law is the appropriate role of the Executive. However, an administration that has promised openness and has been elected on such reasonable assurances ought to use this Teachable Moment to open the records and procedures of the government, as was promised.

Secure Obfuscated and Encrypted Web Browsing for Iranians

For those, particularly Iranians, who wish to browse the web safely, Haystack may be a good solution.

Haystack is not an ordinary proxy system. It employs a sophisticated mathematical formula to hide users' real Internet traffic inside a continuous stream of innocuous-looking requests. In addition to providing anonymity, Haystack uses strong cryptography, ensuring that even if users' traffic is detected, it cannot be read. Trying to find and decipher our users' traffic amidst all the other traffic on the web really is like trying to find a needle in the proverbial Haystack.

Once installed Haystack will provide completely uncensored access to the internet from Iran while simultaneously protecting the user's identity. No more Facebook blocks, no more government warning pages when you try to load Twitter or access news sites -- just unfiltered Internet.

...Not that Facebook is how you should be spending your time online.

The Folly of Near Term Manned Mars Exploration

The Mars Underground (torrent) (imdb) is a well made documentary film featuring director of the Mars Society Robert Zubrin. Zubrin was instrumental in shaping the current direction of NASA towards a Manned Mission to the Red Planet. Despite any romanticism, this is a complete waste of time, effort, and resources.

Long term, of course people will need to inhabit Mars and establish presence elsewhere beyond the Earth if we are to guarantee human existence. However, in the short term, governments would be better off developing artificial intelligence and robotics, and sending their best and most robust machines to explore and one day terraform Mars. The public investment in such useful technology pays off for everyone. The Mars Underground film does not even address this possibility. It unquestioningly assumes that the pinnacle of Humanity's existence would be to make physical contact with the Mars then expediently return to the Earth. Ultimately, the film amounts to a piece of cultist propaganda.

Make no mistake, the Apollo Moon programme was a waste of resources, but it did produce some political, scientific and economic dividends that offset some of the costs. At the time, computers were primitive although robotic probes were nonetheless useful. The Moon is also significantly closer to the Earth.

Regarding Mars, there is a third way which would waste far fewer resources, and do something to satisfy the Monkeys on Mars Cultists. The answer of course is to send people on a one way trip to establish a permanent Mars colony. Put in this context, the cultists are forced to ask themselves why they are so obsessed with returning people to Earth if Mars is worth visiting. Is this nothing more than a sexually frustrated egotistical fantasy of trillion dollar tourism, or is there some sensible purpose? If Mars is worth visiting, it should be worth staying. This is the argument of Lawrence Krauss who fundamentally advocates robotic explortation of Mars. Audio of his NPR Science Friday Interview. Crazy though it may be, plenty of sexually frustrated scientists who would jump at the chance for a one way ticket to Mars.

Robots are expendable, cheaper, and far more effective as a tool of scientific exploration and human colony construction than people will ever be. Let the private sector send people into space if it is economical and put public funds back where they belong: in scientific and technological research and development.

C-SPAN Funding

Given the lack of commercials or NPR style begathon fund-raising and the intended lack of political bias of C-SPAN, it is surprising to learn from their recent public service announcements that they do not receive public ie government money. They are in fact sponsored as a public service by the US Cable Television companies.

We all owe these companies a debt of gratitude for documenting and archiving governmental proceedings, bringing more openness to government, and making it widely and freely available without a hint of commercialism or political favouratism. This is a task which should have been the responsibility of the National Archives in a well run government, yet corporate charity has come through to do the job better and cheaper than a Government run programme ever could.

Digital Currency Trading Declared Illegal in China

Virtual Currencies threaten the power of governments by weakening their grip over the medium of exchange - ie Fiat Currency. In that sense, it is not surprising to see one of the more Authoritarian States definitively cracking down on Virtual Currency exchange. In practise, this will lessen the booming virtual currencies business and put many Chinese "gold farmers" out of work, but generally drive the digital currency market to ever higher levels of sophistication and security.

We have touched on this issue before.

An exposition on the topic of secure digital currencies can be found in David Friedman's Future Imperfect.

We suspect that the collapse of the value of the private US Federal Reserve Dollar will spark a real push for legalisation of competing Commodity backed digital currencies.

WC Socialism

Anyone who has ever traveled to Amsterdam or a developing country can appreciate a clean city and good sanitation when suddenly it is no longer there. In Amsterdam, and to a lesser extent the rest of Holland, bathroom usage comes at a price varying by establishment. The result of this price means that a large percentage of inhabitants use the city itself as their toilet rather than the costly facilities all around. In Amsterdam, the practice is so widespread that the city wreaks of urine and public outdoor urinals without proper drainage are placed through the city as a patch on a problem seen as impossible to enforce. The United States and many other developed countries by contrast mandate that most establishments which serve food and all gas stations provide free facilities which meet some minimum health standards though results vary. As a result, most places in those countries do not smell of human waste. Sensible Switzerland, on balance the best run country on Earth, provides very clean, well designed, and low-maintenance public toilets complete with drug paraphernalia disposal facilities in many public parks.

Bathroom regulation is a good example of how a minimal and passive government standards on quality and service provision can create tremendous welfare benefits for society as a whole as widespread negative externalities are cheaply eliminated. In general, I prefer a society in which government governs as little as possible and only when the welfare benefits far outweigh the costs to the affected members of society. Though it is vague to say it, freedom itself should be valued at a high price in social welfare calculations in evaluating the merits of a potential new tax, public work project, or regulation. Negative externalities can however quickly outweigh even very high freedom opportunity costs in justifying regulation. There is unquestionably some role for government to grease the wheels of society and preserve social order and wellbeing. After visiting Amsterdam, I did become a bathroom socialist.

Missile Defence

Under the Bush administration, in 2002 the United States withdrew from the anti-Ballistic Missle Treaty and began to pursue an ABM system. According to a Congressional Budget Report, the total estimated expense of the system by 2024 could be as high as 247 billion USD. In the Cold War, an ABM system would have been quite an advantage given the Nuclear Missile Technology of the 20th Century. I put forward the idea that if a legitimately recognised Nation State possessing nuclear weapons did wish to deliver them to a target, 21st Century technology including unmanned subs and UAVs will make the delivery of such devices far easier to deliver than launching a Ballistic Missile. Even using 3000 year old technology such as shipping the nuclear device covertly in a standard shipping container would have a high probability of success. Subverting an advanced technology is always much cheaper than the technology's development.

A regular criticism of the US military is that they are constantly fighting the previous war rather than looking ahead. The money spent on Missile Defence will be completely wasted. The United States in developing this technology continues to alienate its allies, a cost which is high but difficult to quantify. Imagine if instead the $247 billion were either never spent at all or rather spent on basic scientific research grants or technological competition such as the DARPA Challenge.

NASA

Thanks to one of Bush's brilliant ideas, NASA's budget is now mostly wasted in M2M (the human Mission to Mars) and the rest on the shuttle and ISS. A recent NPR interview put the orginisation further in question. Michael Griffin, director of NASA, doubted whether we would not all be better off under global warming and therefore should not prioritise its abatement.

With regards to the manned Space programme, NASA has recently experienced an astronaut bizarre love triangle and now allegations of drunken flight and systems sabotage. If NASA is to exist, which I believe it no longer should, its beneficial role should be to fund Earth Science, Astronomy, Aerospace Engineering, and general technology research in the public interest.

The Mars Rover and the Galileo and Cassini missions are examples of the incredible benefits that can come from a serious scientifically driven Space agency. The scientific value for those programmes has vastly exceeded the costs because they had the right idea: robotic exploration of outer space. Humans were not designed to live in space and so far the cost of such adventures is no were close to the benefits. Let human space exploration take place commercially as Richard Branson and Burt Rutan are demonstrating. Let scientists do their jobs correctly, and stop distorting their mission and their budgets with a child's fantasy. If children want to go into space, let them finance it themselves.

Privatised Currency

Introductory Economics teaches that there are 3 fundamental properties of money: divisibility, transferability, and storing of value. Traditionally, various commodities which were rare, small, and relatively indestructible such as precious metals were the dominant currency or at least backed the value of dominant currencies. As governments became more stable and dominant in people's lives in the last two centuries, they were able to abandon all commodity backing of their treasury notes whilst letting currencies stand on their own merit as stores of value. This served to further governments grip over its populace by permitting enormous macroscopic control over wealth, interest rates, and inflation in the economy for good or ill.

We are now entering the information age where anyone may be able to create their own effective "virtual" currencies through modern technology. This soon will allow encrypted and anonymous transactions which will effectively transfer value beneath the radar of government. Governments will try to suppress this activity, but ultimately currency simply represents information and the preservation of information is a law of physics. With satellite internet available in a wristwatch, who will possibly be able to destroy the flow of information? Currency is an important example of the gradual inevitable decline in power and authority of governments and the rise of the multinational corporations as the dominant world powers of the future. After all, the modern system of Nation-States is an idea less than 200 years old, having been created at the Congress of Vienna. It will pass, like all previous forms of rule and diplomacy, into mere history texts.

The currencies of the near future will be varied, exchangeable, customised to individual financial needs and desires, and backed by a tradable basket of securities. To buy a haircut, you could be paying with shares of IBM and GOOG whilst the barber is receiving credit towards his new telescreen and futures contracts on organic wheat. I must thank David Friedman for first sharing this revelation with me in his book 'The Machinery of Freedom.'

This post was prompted by this WSJ article describing the current "virtual" currency, QQ, now being suppressed in Zhong Guo for doing just what I have described, undermining the legitimacy of the Yuan. As with other forms of information oppression, Zhong Guo is doomed to fail.

School Vouchers

School vouchers is an idea which I first heard proposed by Milton Friedman in 1962 in 'Capitalism and Freedom.' The idea is a public good with positive externalities and therefore needs subsidy. However, rather than a limited and uncompetitive system of public schooling, education should be subsidised as vouchers which can be applied to private or public education. Especially in the United States, the educational system is completely broken. Public schools are funded by neighbourhoods, which result in well funded and decent public school in rich school districts, and absolutely abysmal prison-like schools in poorer areas. The problems are compounded by teachers unions which block the firing of incompetent teachers and support the interests of established teachers instead of students' education. Even George Bush campaigned for president by supporting school vouchers, but as with most of his campaign promises, they had very little to do with his actual policies. Having attended private school and realising their enormous superiority over their public counterparts, I have always supported the idea of school vouchers. If education should be subsidised at all, then private schooling should be accessible by anyone who is accepted, not just the wealthy. Financial limitations on access to education serve only to reinforce class differences, reduce competitiveness of the public schools, distort real estate markets, and dampen long run productivity of the economy.

Tyler Cowen on vouchers.

Caloric Restriction versus Obesity

This is my response to David Friedman's thought that a parent who does not enforce a Calorie Restricting diet (ie provides a standard diet) on their children is nearly as unfit a parent as one who overfeeds their children because in both cases lifespan is being shortened.

Standards and Openness

Norway's consumer ombudsman has declared the Apple iTMS (iTunes Music Store) illegal for selling music which may only be played on the Apple iPod or through the iTunes software. I agree with this action by the Norwegian government and I strongly encourage other enlightened governments to join Norway to hopefully force an opening of iTunes standards setting a good precedent.

Openness and standardisation within the media as with electrical outlets and computer parts are only to the advantage of consumers and society as a whole. It is true that hundreds of millions of people have purchased iPods or have used iTMS despite the unfair limitations. This speaks very highly of Apple's technology and design. However, Apple will continue to have overwhelming success with this product even in a more competitive environment for music distribution.

I mentioned electrical outlets because while travelling last week, I forgot to bring my cellphone charger. Since virtually every cellphone provider and every manufacturer has their own recharger standards, the markets on rechargers are virtually cornered with artificially created demand. I could not just borrow a friends charger because likely they use a different provider, so in a bind one must buy an entirely new charger for somewhere around $25 USD. Luckily in my case, my hotel had a whole collection of chargers that unlucky guests had left in the room so I was able to find a compatible charger for my phone.

Incidentally, Norwegian legend Jon Lech Johansen may have already solved the iTunes DRM difficulties in practice.

Science Further Undercut

Economically and scientifically relevant data on the Earth are no longer important priorities for NASA as shown by budgetary cuts in satellite based Earth observation. Robotic space exploration is the only scientifically or economically effective sort, yet funds are being diverted instead on a fool's errand to send men to the Moon and Mars. Observation of the Earth is important especially to measure climate change. Hopefully the ESA will pick up the pieces on this.

Carl Sagan

Carl Sagan was one of the most articulate and rational thinkers of the past 50 years. A visionary, humanist, planetary scientist and professor at Cornell University, he put considerable effort into communicating the knowledge and implications of scientific revelation to the general public. On issues from science, public and foreign policy, and informed religious belief, he was an important voice for mankind. Indeed, when in my previous post I declared that technocrats should be the ones setting policy, I was referring to men such as him. His public television series 'Cosmos' should be required viewing.

He died 10 years ago.

Incidentally, most of his public writing was shaped by his regular use of cannabis. While he remained private about this issue during his life so as not to detract from his important public message, he anonymously advocated very strongly for its legalisation and responsible use.

Recently, his wife was interviewed recently by Ira Flatow on NPR Science Friday. This is an archived interview of Carl Sagan himself with Flatow from 1994 which I highly recommend.

My good friend Timothy recently posted about Sagan as well.

Johnny Hallyday

French music legend, Johnny Hallyday, has decided to leave his Fatherland to live in Switzerland. Hallyday's sole reason: he is fed up with the cut-throat tax structure in France. As Thomas Jefferson once said, "The power to tax is the power to destroy." The general socialist attitude particularly pronounced among the French is one of contempt for people of wealth. In addition to taxes on income, citoyens are taxed again on aggregate wealth. I am reminded of Ayn Rand's endless ranting novel 'Atlas Shrugged' in which the wealthy and productive captains of industry, disillusioned with the contempt the socialist society has for them and unwilling to watch all of their fortunes nationalised, bankrupt their industries which underpin the economy and escape to a mountain fortress to live in libertarian peace. Charles Bremner's say.

See also the classic Tom Baker 'Doctor Who' episode 'The Sun Makers.'

Foreign Aid

I am a firm believer in the moral imperative of wealthy nations with immigration controls to assist the World's poorest. Unfortunately, when foreign aid distribution is administered by wealthy governments, the worthless inefficiencies of bureaucracy usually squander all the resources.

This NY Times article about condoms for Africa via Cowen illustrates the point. I propose governments begin to divert such funds to well-established, efficient, and successful charitable foundations such as Bill and Melinda Gates run by true captains of industry.

Holding Government to Account

Very often, there is a vacuum of accountability at the upper echelons of Political and Fiscal power. This WSJ Opinion piece correctly argues for the SEC to hold San Diego city council members criminally responsible for their actions in defrauding and underfunding the city pension fund. Government fiscal irresponsibility should be considered tantamount to corporate accounting fraud.

Zhong Guo's Population Control

China is the only place that has taken the radical yet necessary steps to halt population growth. Through the one China policy, China is now below the replacement rate of fertility, common in Europe, but phenomenal for a developing country. Unfortunately, given cultural biases, female children are less common than male owing to deliberate abortions or neglect by parents disappointed by a daughter and inwardly hoping to try again for a boy. Statistics are examined in a new study by Qu Jiang Ding and Therese Hesketh in a recent British Medical Journal article (full pdf)

The male:female ratio in Zhong Guo is now 1.23, the highest anywhere. The female-devaluing cultural problem exists elsewhere in Asia. From the article:

"[M]any other Asian countries that have declining birth rates and traditional preferences for male babies are seeing serious sex imbalances: 1.19 for Taiwan, 1.18 for Singapore, 1.12 for South Korea, and 1.20 for parts of northern India."

Any discussion of population control is controversial especially among religious fundamentalists, but I would propose that governments contending with such issues should impose progressive taxation on children born, with higher rates for males. Without doing a thorough welfare analysis, such a system could allow for determined parents to have more than one child while controlling population and mitigating sex ratio imbalances. Age old cultural preferences are a bit harder to change.