demographics

Coddle the Old, Spoil Them; Everybody Else, Back to Work!

Jacques Delacroix Current Events, Liberty , , , , ,

I am more worried by the day about the economic consequences of the current isolation policy intended to change the shape (not the numbers) of the corona-virus epidemic in America. This, in spite of the a large infusion of (national debt) money, that I would approve regretfully if it were my sole decision. (Note: I am not an economist but I have been reading the Wall Street Journal daily for thirty years. I am also a scholar of organizations including businesses.) What inspires most of my fear is that the issue of small-scale entrepreneurship is seldom discussed, as if it did not exist.

I believe that the larger businesses, those that survive the current crisis, may well come back with a roar (as the president seems to predict for the whole US economy.) The problem is that small businesses, restaurants, but also dry cleaning establishments, hair dressers, bookstores, and the like, have short financial lifelines. Many must be dying like flies, right now. It will be difficult or impossible for them to make a comeback once the health emergency is gone. Also we can’t count on fast replacement of those failed business by new entrepreneurs. The collection of small business that accrued over many years at a particular location is not going to be replaced in the course of a few months, I think. (Yes, I know something about this topic. Ask me.)

All the above, in spite of large infusion of my granddaughter’s money by the federal department. (She is 11.) And, repeating myself, I would do it too if it were my decision, but regretfully.

The ruinous strategy of idling much of the workforce could have been avoided and could still be modified quickly, it seems to me. The alternative solution would be to confine all the sick and most of the aged, and to keep children out of school (because they are veritable cesspools, as everyone knows).

Everyone else would be invited to go back to work by agreement with his employer. Some financial dispositions should be offered at state’s expense to help parents who lose income because they must stay home to care for their children. Under such conditions, the economy would grow again and many irreplaceable small businesses would survive. Sweden is currently trying something like this policy. That country never ordered most people to stay home. I hope this experiment stays in the news. It may not because the liberal media are afraid of rational responses and of responses that don’t proceed from panic.

I only know two people who have consistently advocated for an American policy and a California policy of confining only the old and the sick. The two are myself and Jimmy Joe Lee, a singer composer musician from Boulder Creek, near Santa Cruz. Both of us are old dudes. We are both close to the center of virus’ target. I am 78 and Jimmy Joe may be even slightly older. (OK, let the whole truth come out: He is taller, straighter than I am and a much, much sharper dresser.) I am just pointing to the obvious: neither of us is speaking out of selfishness.

Now, let’s imagine the old are confined from, say, the age of 65, even 60. First, some of them wouldn’t even know anything has changed because they don’t go out much anyway. For the rest of us, all you would have to do is serve us promptly two hot meals a day. They would have to be of gourmet quality. That would be easy to achieve because so many expensive restaurants are idle and hurting. It would be a nice touch if the meals were brought and served by a youngish woman wearing a short skirt. We may not remember why we like it but we do. Yes, and speaking for myself and I am sure, for Jimmy Joe, don’t forget to send along each meal a couple of glasses of really, really good old wine. I assure you that however extravagant you went with that last component of our confinement regimen, it would be a lot cheaper than what you are currently doing. At least, promise to think about it.

Nightcap

Brandon Christensen Links , , ,
  1. Why didn’t we see this coming? Scott Sumner, MoneyIllusion
  2. Against ageism Irfan Khawaja, Policy of Truth
  3. Expose the young Robin Hanson, Overcoming Bias
  4. Humility, not certainty Victor Davis Hanson, City Journal

Nightcap

Brandon Christensen Links , , ,
  1. Same old story, same old song and dance Johanna Möhring, War on the Rocks
  2. Why Britain Brexited Tom McTague, the Atlantic
  3. Is it rational to vote? Julia Maskivker, Aeon
  4. Large countries and bad government Arnold Kling, askblog

Eye Candy: Most popular porn categories, by country, in 2019

Brandon Christensen Culture , , , , ,

Well then. Discuss? This is from PornHub. Thanks to r/mapporn.

A libertarian response to “OK Boomer”

Brandon Christensen Links , , ,

No, not from me (I’m at home with the flu). Nick has a great post up on the topic. Vincent does, too. Jacques, a boomer himself, has a post up on American demographics. All three are well worth your time.

As is this short piece by Rick.

Nightcap

Brandon Christensen Links , , ,
  1. Not all Indian reservations are alike Ryan McMaken, Power & Market
  2. Is the UK about to become Canada? Scott Sumner, EconLog
  3. Why economists are wrong so often Chris Dillow, Stumbling & Mumbling
  4. Life, fate, and the assault on liberalism Gideon Rachman, Financial Times

Nightcap

Brandon Christensen Links , , ,
  1. The moral economists and the critique of capitalism Katrina Navickas, London Review of Books
  2. Can you step in the same river twice? David Egan, Aeon
  3. Don’t forget about the indigenous populations Vincent Geloso, NOL
  4. Anthropology and the problem of the archives Morgan Greeen, JHIBlog

Nightcap

Brandon Christensen Links , , ,
  1. China’s cultural appropriations Hawkins & Wasserstrom, Aeon
  2. Why does population density matter? Branko Milanovic, globalinequality
  3. An ethnography of globalization, Thai-style TF Rhoden, Asian Review of Books
  4. Why communities decline Wilfred McClay, Modern Age

Nightcap

Brandon Christensen Links , , ,
  1. Keep unions out of grad school Tyler Cowen, Bloomberg
  2. Universal Basic Income, in perspective David Henderson, Defining Ideas
  3. Is America is a violent country? Kieran Healy, Monkey Cage
  4. Who have Americans hated most, historically? RealClearHistory

Nightcap

Brandon Christensen Links , , ,
  1. Plato and teaching foreign policy Luke Perez, Duck of Minerva
  2. Suicidal elites Joel Kotkin, Quillette
  3. Debating the far right Chris Dillow, Stumbling & Mumbling
  4. Buddhist Hell park Laetitia Barbier, Atlas Obscura

Nightcap

Brandon Christensen Links , , ,
  1. Let us now turn to the criticisms of Rothbard’s anarchism David Gordon, Power & Market
  2. Why Sri Lanka? Vishal Arora, the Diplomat
  3. Sincere religious belief can still be plain old bigotry John Holbo, Crooked Timber
  4. The real “trap” created by two-earner culture Ross Douthat, New York Times

The nonexistent moral decay of the west

Alexander Albrecht Books, History, Liberty, Philosophy , , , , , , , , ,

Humankind’s struggle with moral is of course nothing new, it rather inherent to our nature to revolt against the meaningless world and the manmade system of reason. Furthermore, moral values vary over a specific period of time swinging from rather high moral standards to very low ones. Regarding morality as an abstract compass guiding our thought, goals and behaviour, Economist, in general, are not known for dealing in depth with the metaphysical reason behind our behaviour yet they explore and explain human actions through our surrounding incentives, which also structure and direct our action. Economist such as Daron Acemoglu & James Robinson or William J. Baumol have explored these changes in human behaviour through changing incentive structures thoroughgoingly.

However, folks mourning the moral decline of today’s west often fail to provide concrete evidence for their argument. They either cherry-pick events or legislatures to infer a macro trend inductively or they lose themselves in difficult language trying to somehow save their argument by making it incomprehensible. I cannot help feeling that mourning the moral decay of the west has somehow become a shibboleth for eloquently expressing the “Things used to be way better back then” narrative. However, I admit that there were probably a couple of sociological papers who have covered this issue very well which I am unaware of. Contrary, the public debate was dominated by a few grumpy intellectuals holding the above-named attitude. I was recently provided with a very concrete set of indicators to measure moral decline while digging through Samuel P. Huntington’s infamous classic “The clash of civilization” from 1996. He states that there are five main criteria which indicate the ongoing decline of moral values in the West. [1]

After being provided with a concrete framework to quantify the moral decline of the west, I was keen to see how the moral decline of the west has developed in the 20 years since the book has first been published in 1996. Although I also take issue with some of these indicators to measure moral decline, I avoid any normative judgement in the first part and just look at their development over time. Furthermore, since Samuelson himself mostly takes data from the USA representing the West, I might as well do so too for the sake of simplicity. So, let’s see what happened to moral values in the West in the last years by checking each of Huntington’s indicator one by one.

1. Increasing antisocial behaviour such as acts of crime, drug use and general violence

Apart from the global long-term trend of declining homicides, we can also observe a recent downward trend in the reported violent crime rate since 1990 in the USA. Scholars agree that the crime rate is in an extreme decline. Expanding the realm towards Europe, you will see similar results (see here).

1Source: Statista

Despite these trends, the public (as well as some intellectuals as well I assume) vastly still holds a distorted perception of the crime rate. The sharp decline in actual crimes strongly contradicts the fact that a majority of the people still uphold the myth of increasing crime rates.

2

Source: Pew Research Center

Regarding drug use in the USA, it is important to mention that the absolute amount of illicit drugs consumed has slightly gone up since 1990. This development is mostly driven by an increasing  consumption of marijuana: “Use of most drugs other than marijuana has stabilized over the past decade or has declined.”, states the National Institute on drug abuse in 2015.

Contrary, the number of deadly injections are increasing. However, the share of the population with drug use disorders has remained on the same level of 5.3% over the last 20 years.

2. Decay of the family resulting in increasing divorce rates, teenage motherhood and single parents

It is hard to measure the “Decay of the family” itself. Luckily, Huntington further concretizes his claim by naming some of the measurable effects. There is nothing much to do to refute these statement except for looking at the following graphs.

a) Firstly, the divorce rate is sharply declining.

3

Source: Statista

b) Second, teenage pregnancy rates are also dropping since 1990.

4Source: National Vita Statistics Report

c) Third, the number of Americans living in single parenthood is not increasing drastically since 1990.

5Source: Statista

I often take issue when (especially conservative) scholars mourn the declining importance of family. Even if there are certain indicators which would back up Huntington’s claims, he does not name them himself. While it is indeed true that “family” as an institution is undergoing changes, there is no evidence (at least named by Huntington) to back up the claim of a decline of its importance.

3. Declining “social capital” and voluntarism leading to less trust.

It is indeed true, that the adult volunteering rate declined from early 2000 to 2016 from 27.4% to 24.9%. Interestingly, it recently bounced back to a new high in 2018, hitting the 30% target. Really the only point where one must agree to Huntington’s claim is the decrease of interpersonal trust as well as trust in public institutions. This trend is indeed very worrisome considering that trust is a major factor for flourishing societies.

4. The decline in work ethic

The research here is a little bit tricky and points in both directions. Although there has been wide academic coverage of the millennial work ethic scholars could not find a consensus on this issue. Its is especially difficult to extract the generational influence from other key determinants of work ethic, such as position or age. Academics warn to mistake the ever-ongoing conflict between young vs. old with the Boomer vs. Millenial conflict. I haven’t settled my opinion on this one. These Articles from Harvard Business Review and Psychology Today provide a good overview of both sides of the medal.

5. Less general interest in Education

This indicator is particularly interesting for me because as a member of the 90’ generation, I have experienced quite the opposite in Germany. But let’s have a look at the data.

Despite ranking only in the middle in a global country comparison, the US students still made a huge leap in terms of maths and reading proficiency, which only slowed down in 2015:

6

Source: Pew Research Center

Furthermore, the overall educational level of the USA continues to rise, resulting in the fact that  “the percentage of the American population age 25 and older that completed high school or higher levels of education reached 90% [for the first time ] in 2017.” Contrary, there are still major differences when one looks at features like race or parent household (See here), but the overall trajectory of the educational level is sloping upwards.

What do these criteria measure?

As you can see, there is little to no evidence to empirically back up the claim of western moral decay. Furthermore, while many case studies have shown that lack of interpersonal trust, lack of education or a declining work ethic can pose a great threat to society, I refuse to see a connection (a no known to me study disproves me here) between (recreational) drugs consumption, alternative family models, increasing hedonism and moral decline. Thus I believe that many advocates of the moral decay theory regard it as an opportunity to despise developments they personally do not like. I do not imply that everyone arguing for the moral decline of the west is unaware of the global macro-trends which heavily improved our life, but I highly doubt their assumption, that we are currently in a short-to-medium term “moral recession”. Even when one upholds the very conservative statements such as drug consumption adding to moral decline, is hard to argue that we are currently witnessing a moral decay of the west. Contrary, It may be true that Huntington has observed something different in the period before publishing “The clash of civilization” in 1996. Of course, I myself witness the ongoing battle against norms on the increasing hostility towards the intellectual enemy in the west, but one should always keep in mind the bigger picture. Our world is getting better – in the long- and in the short-run; There is no such thing as a moral decline of the West.

[1] Huntington, Samuel P. (2011): Kampf der Kulturen. Die Neugestaltung der Weltpolitik im 21. Jahrhundert. Vollst. Taschenbuchausg., 8. Aufl. München: Goldmann (Goldmann, 15190). P. 500

Nightcap

Brandon Christensen Links , , ,
  1. Modernity and the loss of human dignity Lee Trepanier, Law & Liberty
  2. Gorbachev Joshua Dill, Modern Age
  3. The old problem of old age Carol Tavris, Times Literary Supplement
  4. Silas Dinsmoor, Indian Agent yours truly at RealClearHistory

Legal Immigration Into the United States (Part 19): How to Go About It

Jacques Delacroix Culture, Current Events , , , , , , , ,

Admitting immigrants legally for the benefit of American society need not be bureaucratically demanding. The existing H-1B visa program could fairly easily be turned into a merit system. It would require only minor tweaking. The main tweak would be to forbid or, at least, to restrict severely employers’ reliance on labor contractors through which most of the abuses occur, I believe. (See, for example, the infamous Disney case, described below.) Let each employer applying for such visas be squarely on record as vouching for the individual beneficiaries’ quality.

Following the example of Canada, some degree of priority could be assigned to obvious contributions to successful adaptation to American society, beginning with knowledge of English. (This might actually require a new law making English the official language of the US.) I listed above other examples of immigrants features that might be scored positively. Note again that avoiding the drawbacks of a completely relative-based system does not necessarily imply the rejection of the simple idea that having relatives in the country often facilitates adjustment. Within the framework of a H-1B-type point system, some degree of preference could be assigned to the fact that the beneficiary has relatives in the US close to where he will first settle. This would not be family re-unification under a different guise because family relations would be subordinate to work capabilities and other features facilitating adaptation.

The next necessary tweak has to do with the fact that the H-1B program has a bad reputation among the unemployed and  the uncertainly employed. So, in 2016, the Walt Disney company was sued, famously for having American workers train their F-1B visa replacements before they were laid off. The suit was dismissed by reason of what I think was a big loophole in the protective measures in favor of American workers in connection with the H-1B program. No one denied that Disney had done what it was accused to have done. Many believe furiously that the program actively discriminates against American workers and keeps their wages low. To make it more acceptable, the existing H-1B safeguards against noxious practices undermining the employment of the American-born and of legal resident immigrants would have to be widely publicized and remedies against abuses would have to be made judicially more accessible than they are now.

The American public would also have to be ready for the predictable consequences of merit policies in terms of culture and in terms of politics. The merit-based program I envisage would result quickly in a large increase in Indian immigration. Although Indians have been very good immigrants by most counts, there might be objections because nearly all of them seem to suck some form of leftism or other with their mother’s milk. In addition, and although India is often celebrated as the “world largest democracy,” there is some question about educated Indians’ attachment to the constituent forms of historically Western democracy, specifically. (I am a small-time expert on this because I read items in and through the Indian press and because I have Indian relatives. They are a tiny biased sample, of course but also an informational gateway of sorts. See also India-born commentator Jayant Bhandari in the October 5 2017 issue of Acting Man: “Canada: Risks of a Parliamentary Democracy.”)

This problem and others like it could be mitigated by placing a numerical ceiling on the total number of immigrants from any one country. I predict informally that this particular problem would turn out to be limited because, once the gates of legal immigration opened for real, there would be a sharp increase in applications from European countries with democratic systems similar to ours. This too would have consequences: As I have pointed out, by and large Europeans are not shy about using any form of welfare, broadly defined, including unemployment benefits. I note shyly that placing a ceiling on the contribution of any one nation-state to US immigration would seem “fair” to liberal opinion, making the whole project more acceptable than would otherwise be the case.

Incidentally, a reasonable merit-based system, aimed as it would at foreigners of some competence, might produce additional revenue to help defray both the cost of better enforcement of immigration laws, and the cost of caring for people admitted on altruistic grounds.

[Editor’s note: in case you missed it, here is Part 18]

Legal Immigration Into the United States (Part 5); The Net Contribution of Immigrants: An Attempt at Critical Quantification

Jacques Delacroix Culture, Current Events , , , , ,

In his October 2006 article in Liberty, (“Immigration: Yes, No, and Maybe” by Richard Fields, Stephen Cox, and Bruce Ramsey), Cox tries to summarize the net cost that (then) current immigrants impose on American society by working out a quantitative example. He stages an imaginary but realistic (Mexican) immigrant family of five living in Los Angeles – two parents and three minor children. He assigns reasonable earnings to the parents and sets those against the probable costs that the whole family imposes in the form of normal local and other services. He arrives at the conclusion that the family annually costs American society 38,900 2006 dollars. (I agree with Cox that this may be a conservative estimate. That would be about 48,000 June 2018 dollars, using the CPI Inflation Calculator of the Bureau of Labor Statistics).

To gauge the real magnitude of the overall normal costs legal immigrants  thus impose on American society, let’s suppose further that all of the 2016 legal immigration is composed of Cox’s families of five. That’s 240,000 such families. The aggregate excess of their social costs over their earnings is 48,000 x 240,000 = 11.52 billion dollars. As a percentage of 2016 GDP, this figure is less than 7/10,000 (seven over ten thousand – 2016 GDP from CountryEconomy.Com).

Now, let’s suppose that Cox was too conservative by one half in his estimate of the cost his family imposes on American society. This would imply that the legal immigrant families that compose all of 2016 immigration cost American society an amount that is like 14/10,000. The numerator in this last estimate includes only legal immigrants. Let’s suppose further that the number of illegal immigrants for the year of reference equals the number of legal ones and that they cost the same and contribute the same as legal immigrants. The cost that all immigrants impose on American society is then approximately 28/10,000 or about 1/3 of one per cent of GDP. If you assume that illegal immigrants earn only half as much as legal immigrants, the net cost of immigration overall goes up correspondingly. It’s still not much. My point is this: In the worst case scenario I can conjure, the net cost that immigrants impose on American society is very low. It’s of the order of 12 million Americans buying a $10 lottery ticket at Nine/Eleven every payday.

This is still certainly an overestimation, for two reasons. One, this scenario is the extreme, limiting case. There is, of course, zero chance that the total legal immigration in any one year is composed entirely of the kind of families of five Cox describes. Among the immigrants, as with nearly all immigration everywhere, there must be a preponderance of healthy young men and young women without children. This happens through self-selection: emigration is very difficult. It requires courage and even a solid dose of unrealism; children are a big impediment in this respect. But, in most cases, younger people without children must easily contribute more than they cost American society because they land all raised up and ready to work (as I said). The exceptions concern those who fall seriously sick– uncommon among the young – and those who end up in jail or prison. The latter is not a rare occurrence among the young in general, among young males in particular. As I said, I deal below with the particular cost of incarcerating immigrants.

The other imaginary limiting case is this: Among the 1,200,000 immigrants in 2016, there is a single family of five as described by Cox and the balance is made up of vigorous young women and young men who never become sick and never transgress the law. In that other limiting case, immigrants are almost certainly a net economic boon to American society. I don’t know where the reality lies and it may change from year to year. It’s doable research which, I think, has not been done.

The second reason why the figure of 28/10,000 is probably an overestimation, or why it leads to fallacious inferences, has to do with life cycles. First, there will probably be a period during the family’s life when the children will be grown and capable of working while the parents themselves are working, undisturbed by family obligations. During that period, three or four, or all five immigrants will in all likelihood contribute more than they take from American society, in spite of their low qualifications. This sweet spot may vanish when the parents reach Medicare and Social Security age. In the meantime, several family members will have contributed to the relevant social funds; one or more of the children will too, probably for 30 years or more. Hence, whether the family of five receives a net benefit or impose a net cost over a longer, trans-generational period depends on actuarial calculations that neither Cox nor I have performed.

I hasten to add that it’s quite possible that such actuarial calculations, performed with real numbers, would still show the five in my chosen family as perpetrating a net cost on American society. To be thorough, one would have to take into account two more things. One is the possibility that one of the three children will turn out to be a great, outsize contributor, like the 40% American Nobel Prize winners born abroad. Or all three. The relevant reasoning has to be trans-generational to some extent, it seems to me. Just look at the extreme imaginary scenario below.

For ten years in a row, the US admits as many immigrants as it did in 2016. That’s 12 million immigrants. Let’s assume none dies during that period and they have no children (We will see that this unrealistic assumption does not matter here.) Not one of the twelve million is able to pay his full fare. On the average, they each cost American society $20,000 there is no chance they will ever pay back, one way or another. However, one of these hapless immigrants is Steve Job’s biological father. You know the rest of this true story. Ask yourself: If it were your decision, knowing this and, and based solely on economic matters which are the stake here, would keep out all twelve million?

This quandary poses an interesting conceptual problem we keep encountering: Had Job’s biological father not accidentally made his girlfriend pregnant; had they not decided to give Steve up for adoption, would someone else have developed the personal computer with Wozniak? Without him? Would you bet on it? The truth is that American society is unusually inventive but it’s probably not the most inventive on a per capita basis. (Last time I looked, the Japanese were registering more patents than Americans – that’s per capita.) It’s also seems true that immigrants account for a disproportionate number of American innovations, including 40% of all Nobel prizes in other than literature. (And also excluding the often farcical Nobel Peace Prize.) It’s not absurd to think of American inventiveness as the happy encounter of American institutions unusually favorable to innovation with immigrant vigor. This is just a speculation, of course but how willing are you to discard it summarily?

Finally, the calculation of immigrants’ net burden imposed on American society necessarily fails to take into account real positive contributions that are difficult to quantify, more or less intangible contributions, some of which I have mentioned elsewhere. They go from Italian cuisine to my own ability to interpret some world events better than almost any native-born professor. Here is another mental experiment: Suppose a national society decided, through some process or other, to bring up the average quality of its every day food from, say English levels, to 1/3 of Italian level. The cost would be astronomical and the result would clearly constitute a significant improvement in the quality of Americans’ every day life – which is what the science of Economics is all about, of course. My point is that the fact that this felicitous result was achieved through the happenstance of immigration does not imply that its societal value is zero.

One of the highest per capita expenditures that immigrants–like every other population group over and below a certain age–impose on American society is the cost of incarceration. That cost is also mostly borne by state and local authorities, although there exists a process by which the federal government reimburses local governments for illegal immigrants incarcerated for crimes other than illegal border crossing (explained in Cox 2006). I examine below the tangled issue of the cost of immigrant incarceration.

[Editor’s note: In case you missed it, here is Part 4]