Sunday, October 24, 2010
I have a similar reaction to the celebrity video and subsequent apology published by a British environmental group called 10:10. The video presents several vignettes in which people are encouraged to volunteer to reduce their personal greenhouse gas footprints by 10 percent...and those who refuse are shown being blown to pieces in blood-spattering explosions at the press of a big red button.
Opponents have responded with outrage, suggesting that the film exposes the brutally totalitarian mindset of the 10:10 group in particular, and the environmentalist movement in general. The apology reassures readers that the whole thing was intended to be funny, not threatening--the script was, after all, written by Richard Curtis, the screenwriter behind such wildly successful comedies as the Blackadder series and Four Weddings and a Funeral.
Here's where Kinsley's point comes into play. Let us assume, for a moment--and I see no reason to doubt it--that the film was, indeed, meant to be humorous. What does that say about its creators? Certainly not that they're wild-eyed totalitarian fanatics--such people might find the idea of blowing up opponents heartening and praiseworthy, but they wouldn't consider it particularly funny. On the contrary, blowing up dissenters only comes off as humorous if the punishment is understood to be wildly disproportionate to the crime, rather than commensurate with it.
In particular, the premise of social annoyances--queue-jumping, inconsiderate driving, loud and disruptive cellphone use and the like--being punished with over-the-top violence has been a stock comedy theme for years. In the 2000 horror film spoof, "Scary Movie", for example, a disruptive moviegoer is murdered by a masked killer, to the applause of annoyed fellow audience members.
And indeed, the 10:10 film never depicts anyone either justifying or acting on environmentalist principles--the rigidly enforced social norm it depicts requires only vocal embrace of the general idea of "saving the planet", and a cheery promise to do something concrete toward that end at a later date. The gory fate imposed on those who dare dissent isn't argued for or justified--it's simply a Scary Movie-style comic exaggeration of the cold disgust that we all feel towards those whose behavior we find unacceptably rude, crass or tasteless.
The 10:10 movement's critics' rants about bloodthirsty totalitarians are thus badly off the mark. The filmmakers have in fact shown themselves to be nothing more than shallow conformist trend-followers, for whom failure to pay nominal lip service to fashionable environmentalist cant is intolerably rude and inconsiderate, in the same way that talking loudly on a cellphone in a movie theater is intolerably rude and inconsiderate. If they really believed that shirkers who neglect the 10:10 commitment deserve to die, then they could never have portrayed the idea of killing them so lightheartedly.
Friday, October 08, 2010
Second, it's only peripherally about society's attitudes towards homosexuality. While Clementi's roommate, Dharun Ravi, appears to have been unhappy about Clementi's use of their shared dorm room for gay sex (among other points of friction between them), he is not known either to have directly disparaged homosexuality, or to have been motivated by Clementi's orientation. Indeed, Ravi's action appears to have been completely opportunistic--he simply activated the Webcam on his own computer, sitting in his own dorm room, from a friend's dorm room. There's no reason to believe he would have behaved differently had his disliked roommate's companion been female. (It's likely, though, that had either participant in such a heterosexual tryst committed suicide on hearing of having starred in a live Internet video, the public reaction would have been far more muted and less passionately sympathetic.)
No, the real moral of this story is one I have touched on before: the failure of modern etiquette to evolve quickly enough to keep up with modern communications technology. Ravi and his friend appear to have thought little about the propriety, let alone the consequences, of their video streaming project before embarking on it. Perhaps they were simply not tuned in to current social conventions regarding such acts--but far more likely, such social conventions simply don't exist yet.
In Robert Altman's 1970 film M*A*S*H*, the story's "heroes" engage in an audio, heterosexual version of Ravi's stunt, publicly humiliating two "villains". (There was no Internet at the time, of course, but the army camp's public address system served as a substitute.) Now, I've long condemned this film's celebration of its heroes' shocking cruelty, but to the best of my knowledge, no other commentator has characterized the stunt of broadcasting audio of a sexual tryst between two unsympathetic characters as anything other than hilarious. On the other hand, the scenario enacted in the film was until recently sufficiently remote from common experience to be easy for audiences to distance themselves from. What makes the Clementi story so unsettling is precisely that what was once a wildly improbable gag, suitable for a ribald, off-the-wall comedy, can now be a casual, unthinking act by a disgruntled college student with no special equipment. And it will probably be quite some time before social conventions catch up to that technological shift.
Thursday, August 26, 2010
- The evolution of pop music lyrics over the last forty-three years: from here to here (foul language warning), over essentially the same melody.
- In film: from terrorist to would-be pop star; in real life: from would-be pop star to terrorist.
Sunday, August 22, 2010
In another respect, though, both Frum and Douthat hew to the standard conservative line about traditional marriage, by fretting about the effects on society of its collapse. In their characterization, disdain for the traditional family is a kind of pernicious cultural fashion, rather like uneconomical recycling programs or ugly, annoying "transgressive" art, that affluent Westerners have affected as a form of social snobbery, and that has by now percolated down to--and wrought havoc upon--the masses. The middle and lower classes, according to their theory, have embraced the elite's lack of sexual and domestic discipline, thereby ruining their prospects for social and economic stability, let alone advancement.
To be frank, I once subscribed to this view myself. But the stubborn failure of traditional marriage to revive itself, despite all the supposed incentives it offers, has led me to rethink this analysis. And I've arrived at a very different conclusion: the feminist and sexual revolutions of the 1960s, far from being mere elite cultural fads, were in fact fundamental, historic breaks with the past, of which the collapse of the traditional family is just one facet.
Although it is rarely stated explicitly, the traditional family rests on a basic assumption: that in the vast majority of cases, a woman needs (or at least benefits greatly from having) a man to provide for her. And for most of human history, that was simply true, because much of the business of survival involved physically strenuous activities--first hunting, later agriculture, and even, fairly recently, heavy industry--to which men were significantly more suited, and which were incompatible with maternal care of infants.
By the late twentieth century, however, technology and its attendant prosperity together allowed women to be more or less fully competitive with men at the majority of reasonably well-paying occupations. Meanwhile, medical advances have vastly reduced the amount of time a woman has to spend caring for infants in order to be confident of raising a small number of them to adulthood. Thus, for the first time in history, a critical mass of women have truly come to need men, as the old feminist saying goes, "like a fish needs a bicycle".
And it is this newfound independence that has brought about the destruction of the traditional family, not vice versa. While the conventional wisdom characterizes men as reveling in their sexual freedom while women still pine for a stable marriage and family, it is in fact women who have shifted their position on marriage most dramatically. Well over half of divorces, for example, are instigated by women, and the surge in extramarital sexual partnerships, from casual relationships to long-term unmarried cohabitations, would be impossible without women's consent to them--something that would have been simply unheard-of fifty years ago, when most women's economic stability was dependent on marital stability. Today's women, freed by the prospect of financial independence, can now structure their personal relationships the way men have long preferred to: based on emotional preference, rather than material need. And as it turns out--for many of them, though certainly not all of them--emotional preference is less conducive to stable, lifelong marital commitment than material need used to be.
Now, it's quite possible that social conservatives are correct in warning that this shift has had, and will continue to have, deleterious effects on society. In particular, there's the whole matter of childrearing: now that women are no longer bound by economic need to the role of wife and mother, they are having, on average, far fewer children, and caring for them less. The effects of this new family profile on society are only beginning to make their impact, and we don't know for sure that they will be even tolerably benign in the longer term.
But neither are we likely to be able to put the genie back into the bottle. If I'm correct that today's radically altered options and incentives for women are a result of prosperity and technology--two things we probably can't give up even in the unlikely event that we wanted to--then it's surely far more productive to consider how society can best adapt to the new reality of domestic instability, than to pine for a not-so-happy past era in which economic and technological backwardness made it less of a problem.
Monday, May 31, 2010
I'm reminded of this joke when reading about the recent "Gaza flotilla incident", in which Israeli naval forces boarded a boat attempting to run Israel's blockade of the Gaza Strip, only to be set upon by dozens of "peace activists" wielding knives, iron bars and other weapons. The consensus so far among pro-Israel commentators (of the reaction from the usual anti-Israel suspects, the less said the better) seems to be that (1) this episode was a public relations fiasco, and (2) the Israeli Navy was derelict in not using overwhelming force to subdue the thugs aboard the boat without offering any opportunity for effective resistance.
This consensus strikes me as utterly wrongheaded. Given the level of preparation and dedication displayed by the "activists" aboard the Mavi Marmara, casualties were simply inevitable. If the figures being bandied about (10-15 killed, dozens injured) are accurate, then the fighting must have continued despite casualties having been taken. And if the knife-and-bat-wielders were willing to take casualties and go on fighting, then the Israelis would simply have had no choice but to inflict them in the course of taking control of the ship, no matter how overpowering their numbers. The spectacle of Hamas and its allies waving the bloody shirts of killed or injured "peace activists" was thus a foregone conclusion, once the Israelis had made the decision not to allow the ship to run the blockade.
On the other hand, if overwhelming force had been used to suppress the resistance, several Israeli commandos would have avoided injury--but there also would have been no footage of "peace activists" stabbing and beating Israeli soldiers. If the main point of the exercise was to win the propaganda war, then the Israeli Navy's (probably inadvertent) decision to let a few of its commandos get badly roughed up was quite possibly the best option available. Like the Israeli in the joke, they're harder to brand as Zionist aggressors now that they've taken a figurative fist to the stomach.
The most important test, though, is yet to come: the disposition of the boats. Having been used in a violent attack on Israeli military personnel, they should be treated as captured enemy materiel, and confiscated. This would be by far the most effective measure the Israeli government could take against the would-be blockade-busters. Fanatical "activists", after all, are a dime a dozen. But large boats are really expensive, and even Hamas' backers can't afford to keep supplying them--and losing them--indefinitely.
Sunday, May 30, 2010
Now, as a purely objective matter, this argument suffers from multiple serious historical distortions. Beinart's bizarre suggestion that "[f]or several decades, the Jewish establishment has asked American Jews to check their liberalism at Zionism’s door" is simply not accurate--during the Oslo years, American Jewish liberals had no problem supporting the Rabin, Peres and Barak governments.
Nor is there any historical basis for Beinart's claim that "comfortable Zionism has [recently] become a moral abdication". The liberal, secular Labor governments of the pre-Likud era, while certainly more liberal and secular, were objectively no less guilty of any of the "crimes" of which the current Israeli state typically stands accused. The annexation of Jerusalem, the establishment of Jewish communities in the West Bank and Gaza strip, pre-emptive invasions of neighboring territory, the assassination of terrorists--all these predated the first Likud government. And the consequences of these actions for Arab civilians were no less severe back when the lead perpetrators were Laborites.
Of course, back then, that was the whole point. It wasn't, after all, Israel's granola-munching pacifism that thrilled American Jews in 1967, when it turned apparent imminent doom into lightning conquest, or in 1976, when it launched a daring hostage-freeing raid hundreds of miles away in Entebbe. In those days, an unapologetically aggressive Israel was a source of pride, not shame, for American Jews.
But if Israel hasn't changed as much as its critics claim, American Jews have changed a great deal more. It was only during the 1960s that the discriminatory barriers that had previously kept Jews out of the highest levels of the American establishment began to crumble. To an American Jew in 1967, a beleaguered Israel turned conquerer was a fitting symbol for an insecure minority finally winning a chance to conquer the highest rungs of American society. Zionism was thus the rallying cry of the assimilationist, proclaiming that secular, liberal Jews, by shedding their pious, persecuted shtetl identities, could be proud, equal citizens of America, just as secular, liberal Israel, by shedding its diaspora vulnerability, could be a proud equal member of the society of nations.
Today, however, the children of those assimilated liberal Jews have completely arrived. No longer haunted by the sense of apartness that dogged their parents and grandparents, Jews like Ezra Klein and Matthew Yglesias see themselves as liberal, secular Americans tout court. For them, Zionism--even without the Likudnik/Haredi angle--is an unwelcome reminder of the old sense of otherness that they would rather avoid feeling, now that they have the option.
It is this swing against Zionism among assimilated American Jews that is creating so much conflict in more seriously Jewish liberals such as Beinart, who aren't seeking assimilation into American society as a whole, but rather into the liberal intelligentsia--including its nominally Jewish contingent. Mere anti-Israel animus on the left can't be the explanation--it's nothing new, after all, and pro-Zionist liberal Jews have long resisted its pull and vigorously countered its arguments (including a lonely few, such as Goldberg, Wieseltier and Jonathan Chait, who continue to do so to this very day). In fact, the liberal arguments in defense of Zionism are stronger than ever these days, now that even the Likud accepts a Palestinian state in principle, while Israel's Arab and Palestinian opponents have swung towards a rejectionism that's not only as brutally violent as ever, but also increasingly theocratic, quasi-fascist and nakedly anti-Semitic.
On substantial grounds alone, then, the liberal Zionist's defense against leftist anti-Zionist agitation ought to be far stronger and more confident today than, say, twenty years ago. (In the very issue of the New York Review of Books containing Beinart's essay, an advertisement by a long list of American leftists accuses the Obama administration of war crimes in the Middle East--specifically, the targeting of Al Qaeda civilians for airstrikes by unmanned drones. Yet somehow, mainstream liberals seem to have managed not to collapse in anguish over the alleged incipient fascism of the Obama administration.)
But as I've pointed out before, international political campaigns like the current one against Israel (or the one against South Africa before it, for that matter) aren't motivated by substance, but rather by their symbolic value in the context of other (usually more local) political battles. And now that such a large fraction of assimilated, secular, liberal American Jews have abandoned Zionism altogether--while non-secular, non-liberal American Jews continue to embrace it--it's much more difficult for a self-identified liberal American Jew like Beinart to break ranks with his chosen side in this domestic sectarian conflict.
Thursday, May 13, 2010
Saturday, March 13, 2010
Monday, March 01, 2010
I discussed here what we learned from the films "Groundhog Day" and "Superman" about how a typical man should go about winning the heart of the woman he desires. But what if, in addition, he wants to regain the respect of his nine year old son?
(Spoilers ahead!)
Fortunately, Hollywood has some answers for us here as well. One helpful film is "Night At The Museum". Ben Stiller is rejected by both his son and the woman he loves, until he hits upon the obvious solution: become the night watchman at a magical museum where everything comes alive at night! Of course, that's not nearly enough. He has to gain the trust of most of the museum's inhabitants -- including monkeys, dinosaurs, cowboys, ancient Romans, Teddy Roosevelt and Attila the Hun -- and organize them all to defeat the bad guys. Then he introduces the woman he loves to her role model Sacajawea and voila, he gets all the love and sex and respect he deserves. Piece of cake.
The reason I'm writing a(n infrequent) blog post about this is because I just finished watching "2012". John Cusack has the same problem that Ben Stiller had: how to gain the love of a woman (his ex-wife) and the respect of his son (who won't even call him "dad"). It turns out that John's solution is a bit more difficult than Ben's. John must save his family from, quite literally, the end of the world. He must drive the car while dodging huge projectiles emitted from sudden volcanoes, while at the same time avoiding massive rifts that are opening up in the Earth, and driving around and through falling skyscrapers. For a start. He must then get everyone on board a number of airplanes (strangely, he doesn't have to pilot the airplanes himself) and make their way to a secret location in China, stowaway aboard an "Ark", dive underwater to fix the Ark's hydraulic system, and then surface for a well deserved hug from woman and son.
I suppose one can say that these movies are really about special effects, and the motivations of the characters are irrelevant. But both of the directors felt they had to give some motivation to the main character other than survival, and they both chose the same motivation. They felt that the audience would naturally and unthinkingly accept the premise that for a man, winning the love of a woman and the respect of a son is a Herculean task of Earth-shattering difficulty.
Friday, January 29, 2010
Saturday, January 16, 2010
What I was not at all prepared for, though, was Avatar's take on relations between the sexes. Not since the laughable Antonia's line--which, despite its wide acclaim, appears to have been made primarily by and for lesbians--have I seen a film so strongly premised on the assumption that women are superior and dominant, and men inferior and subordinate.
The Omaticaya, Avatar's idealized indigenous hunter-gatherers, are, of course, highly matriarchal: their deity is an earth-goddess, their most powerful figure is a shamanistic high priestess, and their women are fierce hunters at least on par with their males. The only Omaticaya men portrayed in the film are the tribe's chieftain, who appears outranked by his high-priestess wife, and the chieftain's heir apparent, a rather sullen young man whom the film's hero quickly supplants. (Remarkably, Omaticaya children are nowhere to be seen in the film--perhaps because depicting women in a childrearing role might cast doubt on their seeming complete dominance over men.)
The earthlings aren't much different--the film's human males are, for the most part, followers, dupes or fools. The corporate executive overseeing the entire mining operation, for instance, is portrayed as a vapid, golf-playing buffoon. The soldiers--with the exception of a single female pilot--are simply disposable grunts following orders. The male scientists are meek minions of the hard-driving female project leader. Even the film's hero is essentially a lost, confused soul unsure whether to be a pawn of the military, a servant of science or a follower of the Omaticaya cult.
(The single exception, of course, is the film's arch-villain, who, despite being portrayed as a brutal, racist psychopath, nevertheless shows enough leadership, drive and independence of mind--enough manliness, in short--to make him by far the most genuinely interesting male character in the whole movie. Like Mad Men's Don Draper--a cold-eyed, philandering snake who has become something of a sex symbol in the eyes of the show's female fans--Avatar's Colonel Miles Quaritch benefits greatly from being, despite his flaws, a welcome island of cojones in a sea of feckless beta males.)
Now, it might seem surprising that a film clearly intended for a young male audience would so glorify women running roughshod over hapless men. And it's certainly not typical of the sci-fi/fantasy film genre: consider, for example, that the most successful recent film series of this type have all featured wise, powerful father figures--viz., Yoda, Gandalf, Morpheus, Dumbledore. Yet in this film, there are only mother figures to admire.
We shouldn't forget, however, that nerdy males--presumably the film's core demographic--are widely understood to live in awe and fear of women. And it may be that Avatar's filmmaker, James Cameron, has in fact struck a chord with his gynocratic vision. After all, if there's anyone who would be expected to understand what appeals to a target audience of adolescent filmgoers, surely it would be the maker of Titanic...
Friday, January 01, 2010
Health care isn't quite dead, although it's far from a done deal. Otherwise, I'd say this prediction is pretty much spot-on.Barack Obama's first year in office will go as badly as his mentor's, as the sluggish economy and unresolved conflicts between the moderates and progressives within his own party undermines his popularity, making his cool, detached persona seem weak and indecisive. Republicans will be somewhat rejuvenated by being able to take responsibility-free potshots from the sidelines, although no particularly prominent GOP leader will emerge. More Keynsian "stimulus" spending packages and bailouts will be enacted into law, but other government initiatives popular among Democrats, such as health care reform, will fall victim to the party's internal rifts, with some Republican help.
This was my only prediction to miss the mark badly. While evidence of Iran's progress to the brink of nuclear weapons production has piled up relentlessly, I don't know of any authoritative claims that Iran has actually succeeded in building a nuclear weapon. And I failed to anticipate the unrest following the June elections in Iran, as well as the deteriorating situation in Afghanistan, which kept those two countries, as well as Pakistan (though not Iraq) still firmly entrenched on the front news pages.Some time during the year, a reputable source--perhaps an intelligence agency or a defense think tank--will declare that Iran most likely has already produced at least one nuclear weapon, and soon will produce more. Little attention will be paid. Likewise, Iraq will all but disappear from the news, as will Afghanistan and Pakistan, despite continuing unrest there. Domestic issues--particularly economic ones--will dominate public attention, and foreign news will focus on trade and economic matters, such as the fate of China's export industries and the Euro's troubles.
I underestimated Tzipi Livni's remarkable combination of personal ego and political incompetence, which caused her to gravely sabotage her own career by refusing to join Netanyahu's coalition. Otherwise, another pretty good prediction.Stephen Harper will continue to hobble along with his minority government in Canada. Bibi Netanyahu will become prime minister of Israel, but in a coalition with Kadima and other parties of the center and right.
As flawless a prediction as I've ever made, I'd say.Hamas and Hezbollah will lay low following Netanyahu's election, quietly building up their military strength as they did during most of 2008. They will take advantage of the inconclusive outcome of the current Gaza operation, which will have included a limited ground invasion that damaged Hamas but failed to dislodge its de facto government, and will have ended with a ceasefire agreement that effectively restores the status quo ante. Netanyahu will thus lack a pretext--or support from an exhausted, cynical Israeli public--for a more decisive engagement, even as the long-term threat on both fronts quietly builds.
Missed the stock market rebound, but again, otherwise pretty much on target.The US economy will remain in recession for most if not all of 2009. However, Japanese-style deflation will not set in, and the CPI will be positive by the end of the year. Oil prices will rebound, but only modestly. The stock market will bounce around its recent low levels and end little changed from the beginning of the year. Likewise, housing prices will stabilize. Interest rates will fall on risky assets and rise on risk-free ones, as depression-panic subsides. Unemployment will continue to rise.
Another spectacularly prescient call. Some will blame this or this, but we know the real story...Environmentalism will "jump the shark" this year, as the cost of being green in a lousy economy turns off enough otherwise sympathetic folks to make the movement's excesses a target of mainstream ridicule.
And now for this year's prognostications...
- The US economy will grow only modestly in 2010, and unemployment will remain high. Consequently, the stock market will end the year down slightly. The Fed will continue its highly expansionary (short-term) interest rate policy, but the combination of easy money and profligate government spending will spur fear of possible inflation risks down the road, forcing up longer-term rates and thus impeding economic growth. On the other hand, the US dollar will recover somewhat, and gold and other commodities will fall in tandem, as Europe and Japan continue to suffer from an even worse case of America's economic malaise. This will help dampen short-term inflation. Real Estate will, after a brief pause, continue its decline.
- The Iranian regime will not fall in 2010. In fact, it will begin a massive crackdown not only on oppostion leaders and groups, but also (as previously predicted) on insufficiently hardline elements among the government and clerical elite itself. As the repression gradually succeeds in quelling mass protests, Western attention to internal events there will subside.
- In Iran's vicinity, conditions will continue to deteriorate slowly (with the Iranian regime's help, of course). The already-unpopular war in Afghanistan will grind on without anything like the dramatic progress achieved in Iraq in 2008. Pakistan will continue to totter on the edge of collapse, without actually collapsing. And sectarian violence in Iraq will increase, although again not enough to jeopardize the government. Elections there will proceed more or less normally, with the usual chaotic, not-entirely-conclusive results.
- The Israeli government will fairly soon make a deal with Hamas to free hundreds of Hamas terrorists in exchange for the return of captured Israeli soldier Gilad Schalit. The deal will powerfully energize terrorist groups in the West Bank, who will respond with a surge of terrorist violence and disturbingly effective subversion of the new American-trained Palestinian Authority security forces. However, Israel will step in firmly to fill the gap left by the suddenly floundering locals, and will harshly suppress the violence. This show of resolve by the Israeli government will dampen the usual global hysterics--American and European official condemnations being predicated largely on Israel's past meekness in the face of international bombast--and American and European relations with Israel will actually strengthen in the aftermath.
- The Obama administration will hobble through 2010 weakened and flailing. Health care legislation, if it passes at all, will be watered down still further from the already-perfunctory Senate version, after the bill's big losers (Medicare beneficiaries, "Cadillac plan" customers, and most doctors) band together and start exerting serious political pressure. The administration will turn its attention to the economy, but sluggish growth and stubbornly high unemployment will nevertheless persist throughout the year (see above). The president's foreign policy will appear similarly feckless, with the already-unpopular Afghan campaign dragging on inconclusively, the "engage America's enemies" strategy garnering nothing but contempt from the likes of Iran, and the Middle East conflict (unsurprisingly) continuing to resist resolution despite the administration's best efforts. The administration will also make major personnel changes to his inner circle at some point during the year, replacing one or more key advisors with establishment figures intended to add gravitas and centrist appeal. Needless to say, the shuffle will accomplish little.
- Exploiting the economy's weakness and the administration's poor approval ratings, the Republicans will launch a grand policy platform akin to the "Contract with America" that led to huge GOP electoral gains in 1994. Like the previous one, the new program will consist of broad, vague, impractical proposals that poll well but stand no chance of being implemented. Armed with this putative platform and buoyed by populist conservative outrage and disappointment-bred apathy among the liberal base, the Republicans will make large gains in both houses of Congress. They will, however, fail to take control of either one.
- There will be a cultural backlash against recession-driven frugal-mindedness, and stories about straitened times for the once-profligate will give way to 30s-style otherworldly depictions of ostentatious wealth and glamor.
Thursday, October 01, 2009
She does concede, however, that "Great Men - and other men - sometimes do find pliant, young flesh irresistible. Geniuses are usually forgiven for it." Well, she would know, wouldn't she?
Saturday, August 08, 2009
What does surprise me, though, is the timing of this broadside against middle-class frugality. Sure, Eric Schlosser's Fast Food Nation could ooze contempt for the unwashed peasantry and their appalling affinity for inexpensive, convenient, tasty food--in 2001, when even those who'd dropped a bundle in the tech crash had little reason to feel particularly vulnerable. But in these difficult economic times, is there really still such a large cohort of readers so insulated from financial concerns that they feel no discomfort while sharing Shell's snooty disdain for ordinary folks and their crude habit of saving money by shopping for the best deal?
Saturday, July 04, 2009
Well, if history is any guide, you launch a massive purge of your own party and all institutions with the potential to foster leaders or ideas that might challenge your absolute rule. This will certainly cement your hold on power for a while (as well as boost your personality cult), but it'll make your subjects' lives pretty miserable in the process. So if anyone out there happens to be living in a country that fits this description, now might be a good time to get out...
Monday, June 08, 2009
I discussed here the complaint by the New York Times about the administration's "headlong rush" towards the computerization of medical records. That was the Bush administration of course, and we all still have the whiplash to show for it. By contrast, Obama recently held a health-care summit at which "the flagship proposal ... was the national adoption of electronic medical records". This time it is the Wall Street Journal that is concerned. Apparently there is no reason to believe that computers should be used for medical records, any more than they were in the writing of that article. And of course, once mistaken medical decisions are committed to computer, they will tend to propagate. Perhaps we'd be better off if doctors wrote nothing down. (I do agree with the article, however, that this proposal will not yield great savings.) Interestingly, the New York Times is not (or at least was not) completely on board. It appears that some democrats want to make sure that the privacy issues are completely settled first. Right.
A friend of mine also feels that privacy issues must be perfected before we go ahead: "Just think about how bad a person with AIDS would feel if his medical information became public." This is true, of course, but I pointed out that there is another group of people for whom it is absolutely crucial that medical records be computerized: people with AIDS. It all comes down to the fact that there are two types of people in the world: those who think that people with AIDS primarily have a privacy problem, and those who think that people with AIDS primarily have a medical problem.
It should be clear that any system that makes it easier for good guys to access (medical) data will also make it at least somewhat easier for bad guys to access it as well. That is, we will lose at least some privacy when we computerize medical records. Also, in the initial version of the system, there will be horrible bugs; with time these will be decreased, but the system will never be perfect in any sense. I think it's worth it. If you don't, then you should explain just what degree of disorganization and inaccessibility you desire for medical records.
An interesting question is: why has this computerization not happened already? Surely the privacy-mongers are partly to blame, but there are many other reasons as well. Two culprits are the medical profession, and facts of life about how standards come about. I hope to write more about this in the future.
Monday, May 25, 2009
Arguments of this type pop up every time something negative happens to the credit card industry. Yet here we are, with annual fees hovering around zero--often with "cash back" rebates of one percent or more--for customers who pay off their balances. If credit card companies could get away with charging balance-free customers annual fees, then why don't they already?
In fact, the supposed free ride enjoyed by non-borrowers is a product of two factors:
- Whatever they may say, credit card companies make good money off non-borrowing customers. The transaction fee charged merchants for credit card purchases more than covers the costs and risks of serving those customers, given that their current balance and default risk is so consistently low.
- Customers careful and stingy enough to pay off their balances every month are also typically willing to shop around for the best credit card deal, forcing credit companies to compete for their still-profitable business.
Neither of these factors is at all affected by the latest legislation. It's therefore a good bet that any future attempts on the part of the credit card companies to squeeze more money from low-risk customers will be feeble, short-lived and unsuccessful.
Wednesday, February 25, 2009
One such population, of course, is the Jewish people, and the Madoff scandal illustrates the extent to which Jewish success is a result of what Fukuyama would call a "high-trust" culture, where norms and traditions cause members to expect and rely on high standards of behavior from each other. There is a downside to these expectations, though: Madoff was able to bilk so many people out of so much money precisely because they considered it implausible that someone so deeply embedded in, and respected by, the Jewish community could be such a crook.
This sort of "affinity fraud" is a familiar weakness of trust based on cultural norms. Trust is inherently brittle: the more weight it carries--that is, the greater the reliance that is placed in it--the greater the temptation for a Madoff type to come along and betray it for his own gain. Back in the days of family-owned banks and letters of introduction, for example, Madoff might have been able to wipe out the life savings of a few relatives and gullible acquaintances. But in an age of highly portable capital and global commerce, inhabited by much larger, richer networks of trust, Madoff was able to tap into, and ultimately destroy, an amount of wealth equivalent to the annual GDP of a small country.
And here's where Madoff's other cultural affiliation comes into play. America is exceptional in many ways, but one of them is that among high-trust cultures, it's the least rooted in cultural norms, traditions and expectations. As the world's most culturally diverse, individualistic and libertarian nation, it simply cannot, and collectively has no desire to, cultivate in its inhabitants the kind of rigid adherence to reliable behavioral norms that's inculcated in, say, every Japanese. Instead, America has built a remarkable infrastructure of trust out of a combination of private institutions and governmental regulations that effectively substitute for cultural norms as a way of mediating trust between parties that wouldn't otherwise trust each other.
Consider, for example, that quintessential American institution, the credit card. With it, an American can walk into an office thousands of miles from home and buy or rent very valuable goods--a luxury car, for instance--from a total stranger, without so much as a downpayment. Yet the card represents no personal acquaintance to speak of, either between the cardholder and the issuer, the issuer and the merchant's acquirer, or the merchant's acquirer and the merchant. The bonds that restrain their behavior are rather a combination of laws, commercial practices and incentives that successfully convince the participants--most of the time--that obeying the rules of the credit card game is in their interest.
Obviously, this type of behavioral restraint is less effective than the social norms of other high-trust societies, as America's stratospheric rates of crime, bankruptcy, lawsuits and other forms of conflict demonstrate. But its flexibility and libertarian commercialism seem to make it more efficient--in the dynamic modern world, at least--than trust based on tradition and social norms. In much of the world, in fact, financial structures have gradually been pulled towards American styles of operation, rather than vice versa.
On the other hand, the brittleness of trust doesn't go away just because it's mediated by commercial institutions rather than social norms. What affinity fraud has been to high-trust societies, financial bubbles have been to American-style economic trust systems. And the longer and more large-scale the mutual trust gets, the more catastrophic the shattering.
The recent (and ongoing) financial crisis , for example, apparently culminated in a massive run on money market funds. Money market funds are, of course, largely unregulated, uninsured funds that store trillions in ordinary depositors' money--money that could instead have been stored in government-guaranteed deposit accounts at banks. (Those government guarantees, let us remember, were put into place after similar runs on banks during the early 1930s.) Apparently, millions of depositors trusted the funds enough to prefer their higher returns to the comfortable security of government-guaranteed bank deposits--and would have collectively lost trillions of dollars as a result, had the government not intervened to protect them. Lulled into a collective overextension of trust, these investors came close to having their trust instantaneously and utterly destroyed--with all the inevitable economic consequences such a drastic drop in social trust can be expected to bring.
I've explained previously how expectations of continued economic prosperity can undermine that same prosperity. The effect of trust is similar: a continued boom inflates social trust, increasing the opportunities for exploiting it, until it suddenly shatters, leaving society much the worse off economically. As we observe the twin wrecks of a housing system built on trust in homebuyers' reliability, and a retirement savings system built on trust in the stock market's reliability, we would do well to remember that trust is as subject to bubble dynamics as any other valuable commodity.
Tuesday, January 20, 2009
But I find it fascinating that they felt compelled to identify their "Jewish origin" in their letter. Why should their ethnic roots matter? Would a group of seventy or so Americans of British origin ever get together to express their opposition to British policy? Do critics of the Chinese government who happen to be of Chinese descent (as opposed to, say, Chinese birth or citizenship) like to call attention to that fact?
Indeed, it's a good bet that the Guardian letter's signatories are predominantly secular leftists who disdain Judaism as a relic of arcane superstitions, consider Jewish peoplehood a reactionary chauvinism impeding international solidarity, and condemn Israel as a colonialist imperialist outpost. In other words, in any other circumstances, they'd take great pains to minimize the significance of their Jewish heritage. Why, then, would they mention it so prominently here?
The answer, I believe, has to do with one of the more minor, less well-known costs of the Holocaust: while powerfully discrediting (to say the least) anti-Semitism, it has also implicitly raised the bar, so to speak, for anti-Semites. Whereas previous Jew-hatred was founded on libels about Jewish religion, culture, moral character or group behavior, the Nazis went a step further, concocting elaborate theories of Jewish genetic inferiority. As a result, many classic anti-Semitic slurs--such as, say, conspiracy theories positing various Jewish plots to achieve world domination--have actually come to seem somewhat milder by comparison, to the point where their modern promulgators often straight-facedly claim that they're not really anti-Semitic at all, since they make no genetic claims about Jews. (One obnoxious commenter here at ICBW, for example, tried this tack, apparently in all sincerity.)
It is in this context that the Guardian letter writers' assertion of Jewish origin makes sense. If extreme hostility towards Israel is widely associated with anti-Semitism, and anti-Semitism is is widely associated with a belief in Jewish genetic inferiority, then rabid critics of Israel might be expected to attempt to insulate themselves against charges of anti-Semitism by identifying their own Jewish genetic heritage. In effect, they're saying, "Hitler would consider us Jewish--so when we say we think Israel is behaving like Hitler, you can believe us."
Perhaps they should stop letting Hitler set the standard for so many of their moral distinctions.
Wednesday, December 31, 2008
- Hillary Clinton will be elected president in November, by a solid margin, in an election with relatively light turnout by recent standards. The Democrats will retain control of both houses of Congress.
Well, she would have, if her staff had been competent enough to pay attention to those caucus states...
- The US counterinsurgency effort in Iraq will suffer significant setbacks in Iraq this year, but the political reconciliation process there will in fact make progress. Iran's nuclear program will last another year without either a military strike or a successful nuclear test.
The very first part was off, but the rest was on target.
- The Taliban insurgency in Afghanistan will grind on without resolution, aided by safe havens in Pakistan, where Pervez Musharraf will continue to rule, in one guise or another, replicating his neighbor's stalemate with its Islamists.
Again, on target with the exception of one key detail (Musharraf's fate).
- Ehud Olmert will survive another year in office. The Winograd report will criticize him harshly for being too recklessly aggressive during the Lebanon war, thus providing him with cover against his more hawkish main rivals. He will also authorize at least one fairly large-scale incursion into the Gaza Strip, which will achieve little but will further shield him against charges of dovish, indecisive softness. Meanwhile, Hezbollah's position as the largest single power in Lebanon will be consolidated and officially enshrined in the country's political power structure.
It was touch and go there for much of the year, and he's of course on his way out, but darned if he isn't hanging on to the bitter end, and charging into Gaza--almost as if to validate my prediction with his last ounce of strength...
- The US economy will narrowly avoid recession this year, but will experience very sluggish growth. Inflation will stubbornly refuse to fall, preventing the Fed from easing enough to really boost the economy. The stock market will have a down year, and oil prices will fall modestly. The housing market will not recover, but the US dollar will, somewhat, from its recent plunge.
Rather too optimistic about the economy, but I figure I'm in pretty good company on that one, and possibly more on target than most prognosticators. Also, correct on the direction (if not always the magnitude) of the movements of the stock market, oil, housing and the dollar.
- "Product placement"--advertising embedded into content such as music, films and television shows--will become more widespread and conspicuous, to the point where it becomes a subject of pop-culture irony.
Not this year (that I noticed), but then, I'm always ahead of the curve on these things...
And now for this year's reckless forecasts:
- Barack Obama's first year in office will go as badly as his mentor's, as the sluggish economy and unresolved conflicts between the moderates and progressives within his own party undermines his popularity, making his cool, detached persona seem weak and indecisive. Republicans will be somewhat rejuvenated by being able to take responsibility-free potshots from the sidelines, although no particularly prominent GOP leader will emerge. More Keynsian "stimulus" spending packages and bailouts will be enacted into law, but other government initiatives popular among Democrats, such as health care reform, will fall victim to the party's internal rifts, with some Republican help.
- Some time during the year, a reputable source--perhaps an intelligence agency or a defense think tank--will declare that Iran most likely has already produced at least one nuclear weapon, and soon will produce more. Little attention will be paid. Likewise, Iraq will all but disappear from the news, as will Afghanistan and Pakistan, despite continuing unrest there. Domestic issues--particularly economic ones--will dominate public attention, and foreign news will focus on trade and economic matters, such as the fate of China's export industries and the Euro's troubles.
- Stephen Harper will continue to hobble along with his minority government in Canada. Bibi Netanyahu will become prime minister of Israel, but in a coalition with Kadima and other parties of the center and right.
- Hamas and Hezbollah will lay low following Netanyahu's election, quietly building up their military strength as they did during most of 2008. They will take advantage of the inconclusive outcome of the current Gaza operation, which will have included a limited ground invasion that damaged Hamas but failed to dislodge its de facto government, and will have ended with a ceasefire agreement that effectively restores the status quo ante. Netanyahu will thus lack a pretext--or support from an exhausted, cynical Israeli public--for a more decisive engagement, even as the long-term threat on both fronts quietly builds.
- The US economy will remain in recession for most if not all of 2009. However, Japanese-style deflation will not set in, and the CPI will be positive by the end of the year. Oil prices will rebound, but only modestly. The stock market will bounce around its recent low levels and end little changed from the beginning of the year. Likewise, housing prices will stabilize. Interest rates will fall on risky assets and rise on risk-free ones, as depression-panic subsides. Unemployment will continue to rise.
- Environmentalism will "jump the shark" this year, as the cost of being green in a lousy economy turns off enough otherwise sympathetic folks to make the movement's excesses a target of mainstream ridicule.
As always, past performance is no guarantee of future results, although it's pretty good evidence that this blog's name is no idle boast...
Sunday, December 14, 2008
Much discussion has ensued in the blogosphere, all of it completely missing the point. Of course the most extremely successful people have all been extremely lucky--just as they've all been extremely talented, and extremely hardworking. That's precisely why they've succeeded far beyond the ranks of competitors who only excelled in two or fewer of these three respects.
The far more interesting question is what proportions of luck, talent and work typically contribute to the kind of moderate success that sensible, realistic people aspire to achieve. In those cases, I strongly suspect, talent and dedication weigh far more heavily than luck. Then again, that's probably not the kind of study that would help make Malcolm Gladwell the spectacularly successful writer that he's become.
Unfortunately, Chabad's missionary service is rooted in essentially the same messianism as Christian missionaries': they believe that winning Jews back to observance hastens the coming of the Messiah. Ultimately, that motive can't sustain a generic service ethic, because it inevitably draws the missionaries towards more susceptible recruitment targets, such as the poor and the distressed. (Christian missionaries, for example, certainly follow this pattern.)
It's possible, though, that Chabad (or perhaps an offshoot, or a rival sect) could gradually evolve its beliefs in a way capable of sustaining its passion for serving fellow Jews in general. All it would require is a subtle shift away from believing in the need to convert all Jews to its brand of piety, and towards believing in its members' need to maintain its own brand of piety--including its practice of helping all Jews--as an end in itself.
I believe that such a shift would be of enormous benefit to the Jewish people. For the truth is that the fanatically observant, the fanatically secular, and the broad spectrum in between are all parts of a far stronger whole than any single one of those groups would be on its own. Other religions have discovered this, and typically maintain a pious class--priests, monks, monastics, and so on--that is respected for its dedication and service to its correligionists, but understood to coexist with a more worldly majority, rather than rejecting it.
Already, ultra-Orthodox Jews in general act as a kind of priestly class among Jews, devoting themselves entirely to study and piety at the cost of living on charity, and typically in poverty. They also perform a number of purely religious services to the community, such as recovering bodies for ritual burial (most famously after terrorist attacks). Unfortunately, rather than consider themselves a kind of spiritual elite serving a larger Jewish nation, they tend to view other Jews as apostates doomed to drift away from Judaism towards paganism of one kind or another. And of course, they denounce the state of Israel as a secular travesty.
That's strange, because the Jewish religion itself provides an admirable model for a "spiritual elite", rejecting both militant proselytizing and cultish insularity in favor of the role of duty-bound "light unto the nations". If only the ultra-Orthodox were to embrace that role themselves, they could become as valuable a resource for the Jewish people as the Jewish people have proven, time and again, to be for the entire world.
Wednesday, November 05, 2008
Well, the future is always difficult to predict, of course. But experience suggests a few do's and don'ts:
- DON'T expect the free ride from the media to continue. Given their irrationally stratospheric expectations, attack-dog mentality (possibly exacerbated by guilt over their previous obsequiousness) and lack of a suitable alternative powerful figure to tear down, your every scandal, misfortune or embarrassing incident, no matter how big or small, will be jumped on.
- DON'T pander to your base with appointments and executive orders that alienate moderates and inflame conservatives. You'll only end up backing down under pressure to save your administration's tattered reputation.
- DON'T attempt to create any grand, elaborate new social programs of breathtaking scope and complexity. You may think you have a mandate to do such things, but you don't.
- DO go ahead and raise taxes at the high end of the income scale. If the economy hasn't recovered in a couple of years, your presidency is doomed anyway, and if it has, then the resulting improved fiscal condition of the government will more than compensate for the slight drag on spending, laying the foundation for a robust economic recovery.
- DON'T get lured into expanding ill-defined foreign military missions. Your crisis manager and commander-in-chief cred is shaky enough already.
- DO support free trade. Again, good economic fundamentals will come in handy once the current economic storm passes--and if it doesn't, then having pandered to unions years before won't do you much good.
- DON'T expect your first midterm election to be a happy one.
If any of you readers happen to be in this situation, I hope this list has been helpful...
Thursday, October 30, 2008
Unfortunately for these thought-peddlers, that's simply not the way politics works. Newt Gingrich, for example, will no doubt insist that it was the collection of policy ideas known as the "Contract for America" that led to his greatest political victory, the Republican congressional sweep of 1994. Anybody remember what was in the "Contract for America"? Which parts were actually enacted into law and which never made it? Which ones actually had their intended effect?
In fact, the 1994 Republican victory had nothing to do with the particular policy details of that year's Republican platform. Rather, after four decades in power, the Democrats' flaws and political missteps--corruption, arrogance, captivity to "special interests", and so on--were immediately conspicuous, whereas the party out of power had been away long enough for their roughly comparable flaws to be forgotten.
Needless to say, after twelve years of Congressional dominance and eight years in the presidency, the roles are at least somewhat reversed. Barack Obama and the Democrats aren't now ascending to power with an exciting agenda of new, innovative and popular ideas that the Republicans were somehow too hidebound or ideologically blindered to embrace. Rather, they have been elected to avoid repeating, and where possible to reverse, the political and policy blunders committed by their predecessors--and that is agenda enough for any party.
Of course, once they begin governing, they will accumulate their own set of missteps and unpopular actions. And astute Republicans will notice them, and add their reversal to the list of goals of the new Republican agenda. That--not the combined chin-tugging of a bunch of conservative policy wonks--is what will eventually rejuvenate the conservative movement.
Friday, July 04, 2008
The answer is quite simple, really, and has to do with the concept of parsimony in scientific theories. Pace Quiggin, what makes the HIV theory of AIDS compelling is not the overwhelming consensus of the scientific community--which is routinely wrong about all sorts of things, after all--but rather the difficulty of coming up with an alternative theory that explains the documented spectacular correlation between HIV infection and AIDS symptoms, as well as all the other evidence amassed in favor of the HIV theory. Similarly, the problem with homeopathy is not that mainstream medical opinion discounts it, but rather that accepting it requires reconciling its effectiveness with the entire body of physical, chemical and biological evidence which argues for its uselessness. (Creationism actually has the reverse problem: it's so parsimonious that it would easily "explain" anything--that is, absolutely any set of phenomena that might be observed--and therefore explains nothing.)
Now, I'm no expert on climatological research, but my impression is that the consensus predictions of global warming rely on elaborate computer models that incorporate and combine all sorts of influences on climate, whose likely effect and interaction are estimated using elaborate statistical methods applied to past data. Given the complexity of these models, I would be absolutely astonished if it weren't possible to introduce extra factors, or alter the behavior of existing ones, in a way that radically changes the predicted outcomes without creating any significant inconsistencies with the known inputs. In other words, the exceedingly complex theories embodied in the current models don't offer much parsimony, and hence one can likely embrace alternative models with significantly different outcomes that are very nearly as parsimonious as the widely accepted ones.
Now, perhaps I'm wrong, and the models are constructed so generally as to rule out any such alternatives. If so, though, then I would expect the claims for the models' predictions to be much stronger than I have seen--something along the lines of, "the predictions are scientifically irrefutable", or some such. More likely, they are nothing more than "best current guesses"--valuable, of course, but hardly conclusive. And skeptics of their predictions should certainly not be lumped together with doubters of various more established, more parsimony-generating scientific theories.
Wednesday, June 25, 2008
two possible explanations. Either Barak is risking the lives of Israeli soldiers and civilians to pander to the most radical elements of Israeli society while seeking to win sympathy points from Cairo in a general election campaign, or he is gullible enough to believe that Israel's radical left and the Egyptian regime are moved by facts rather than interests.There is in fact a third, far more plausible explanation, confirmed by the subsequent deal between Labor and Kadima: Barak knows full well that an Israeli invasion of the Gaza strip is necessary and inevitable, but prefers for personal political reasons to delay it until after PM Ehud Olmert has been ousted. More than anything else, Barak wants to return to the prime ministership, and this ordering of events maximizes his chances of doing so.
Consider the consequences for Barak of an immediate assault on Hamas: if the operation is a success, then Olmert will have repaired, to a large extent, one of the biggest stains on his reputation: his disastrous mismanagement of the Lebanon war in 2006, and its implications for his capacity as PM to command the nation's defenses. His credentials thus restored, he might well succeed in retaining his leadership of Kadima, and thus the prime ministership, until the next election, at which point voters favoring the current government are more likely to vote for his party than for a Labor party that has subordinated itself to his rule.
Of course, the Gaza operation could also go badly, whether as a result of Olmert's meddling, Barak's errors or IDF blunders. In that case, Barak will be at least as badly tarnished by the failure as Olmert. Indeed, the latter has already proven his skill at deflecting blame for military failures onto his subordinates, and Barak would be an ideal target. Either way, then, Barak's chances of succeeding Olmert as prime minister are poor.
Now consider his chances under the two new deals: after a summer of relative calm--probably punctuated by attacks from Gaza that inflame the public even more against the Olmert government--Kadima casts Olmert aside and replaces him with a relative novice, most probably Tzipi Livni. The newcomer will have to ensure the continued support of Kadima's coalition partners, of which Labor is the most important, and Barak can use this leverage to guarantee not only a Gaza invasion soon afterwards, but also plenty of freedom of action for both the IDF's military campaign and his own political campaign. If the military campaign goes well, he should be able to claim the lion's share of the credit--and if it goes badly, he's far better placed to scapegoat Olmert's more junior, less experienced successor than the wily Olmert himself.
Glick is of course quite correct in one respect: Barak appears to be willing to sacrifice the lives and safety of Israeli soldiers and civilians for the sake of politics. however, his political calculations are neither naive nor deluded. They're quite subtle and deep--and if all goes according to plan, I give him tolerably good odds of succeeding.
Wednesday, April 02, 2008
First, some history: in the 1970s, Western economies all seemed to be going haywire simultaneously. Inflation was running rampant, governments were running huge deficits, unemployment was skyrocketing, and the world's major economies were lurching from crisis to crisis. In retrospect (most modern economists will tell you), the problem was that the old Keynsian approach to government intervention in the economy had reached its limits. Further government spending only seemed to exacerbate inflation and deficits, without providing much of a stimulus to the economy. The problem was fixed (again, most modern economists will tell you) by governments shifting to monetarism as the new, better way to guide the economy to prosperity.
What this story doesn't explain, however, is why Keynsianism, which had fueled two and a half decades of postwar prosperity, suddenly stopped working. Some economists will say that it was always too imprecise a tool, and its wielders were bound to lose control eventually. Others will say that it was "abused" by governments eager to keep the good times rolling. Like an antibiotic, the latter would explain, Keynsian pump-priming loses its effectiveness when overused unnecessarily during prosperous times, rendering it incapable of mitigating the inevitable downturn.
But economies aren't bacteria. How do they become immune to economic stimuli? Why wouldn't "overuse" of Keynsian stimulus, whatever its side effects, at least succeed in its basic purpose of warding off recessions?
The answer can be summed up in one word: expectations. Once enough people start assuming that the government's response to any economic slowdown will be more government borrowing and spending, they can place financial bets on that assumption. For example, they can bet that the government will ensure that lots of money remains available in the economy, and that they can therefore raise prices accordingly, or demand higher wages. As these bets pile up, they dampen the effect of the intervention they anticipate, forcing the government into an even more extreme intervention to achieve the same result--further heightening expectations for future interventions. Eventually, expectations match the government's maximum feasible effort, and all interventions fail. Only a completely new, unanticipated form of intervention can hope to work.
Let us return now to the subprime crisis. In 1987, Alan Greenspan massively expanded government credit and cut federal interest rates in response to a stock market crash. He was to do this multiple times over the course of his career--in 1998, and again in 2001--in response to similar economic crises. This maneuver--which came to be known as the "Greenspan put"--was remarkably effective at mitigating the effects of economic shocks. However, it has also been blamed for the stock bubble of the late 1999s and the real estate bubble of the early 2000s.
The connection between these bubbles, the policies that preceded them, and the lethal effect of expectations is nicely illustrated by the investor behavior that led to the subprime crisis. Why did so many sterling financial firms pour money into highly questionable investments based on mortgages of dubious quality? Were they fools or maniacs, caught up in some kind of frenzy? More likely, they were sensible people making a very reasonable bet: that when the bubble burst, the Federal Reserve would come to the rescue with a massive interest rate cut, and most if not all of their bubble profits would be preserved. And indeed, plenty of subprime mortgage investors, Bear Stearns notwithstanding, have ended up netting a hefty profit from this bet.
Unfortunately, the bet only increased the magnitude of the crisis, while dampening the government's capacity to resolve it. The subprime-driven real estate bubble was not only far bigger than previous bubbles, thus requiring a much bigger liquidity infusion than previous ones--it also juiced the economy enough to nudge inflation upward, limiting the government's leeway to cut interest rates without triggering an inflation spiral. As in the 1970s, the reigning paradigm for government management of the economic cycle has become too predictable, and has thus lost its curative power.
I don't know what the next paradigm will be, but it had better be pretty darn complicated. Financial firms have enormous analytical resources at their disposal these days, and are much better at predicting government policies than they used to be. It'll take an even more inscrutable policymaker than the famously Buddha-like Greenspan to keep them from catching on to the government's methods very quickly--and promptly undermining them.
Wednesday, February 06, 2008
The problem is that taken at face value, the interactions in the film make no sense. The girl is impossibly self-assured, clinically detached and jaded. She treats the adults around her as equals, if not as inferiors, and the adults, likewise, respond to her as they would a poised, assertive adult--which is what she seems to be, in all respects but her actual age. Moreover, these adults scarcely exist apart from her--their lives seem to revolve around her, as if populating her life were their only purpose. This solipsistic unrealism is quite reminiscent of the film Peggy Sue Got Married, in which a middle-aged woman suddenly wakes up (or perhaps falls into a dream) to find herself back in high school, taking advantage of her knowledge and experience to recognize and correct her youthful mistakes in dealing with various people.
In the latter film, though, the title character eventually reconciles herself to the life she embarked on as a naive youth. Juno, however, hints at a much darker reality: the girl's jaded detachment, as well as several plot elements I'll refrain from revealing, suggest a sexually traumatized twentysomething fantasizing about re-experiencing her vulnerable teen years with the protection afforded by her adult knowledge. And indeed, the film's screenwriter, who goes by the pen-name Diablo Cody, turns out to be (as I suspected while watching the film) a twentysomething woman with what one might describe as sexual "issues"--her major previous work was a diary recounting the aftermath of her decision, on a whim, to give up her secretarial job and become a stripper and peep-show performer.
Granted, I don't know exactly what demons drove Ms. Cody to choose to spend years as a sex-industry worker. But I'd guess that for most audiences, a dramatized depiction of her battle with those demons won't be quite as bracingly comic as Juno's trailer implicitly promises.
Tuesday, February 05, 2008
Off-the-top-of-my-head explanation: As the establishment candidate, Clinton wins over Democrats in states where being a Democrat means identifying with the establishment. As the insurgent outsider, Obama wins over Democrats in states where being a Democrat means thinking of oneself as a rebel outsider.
Quick prediction: Within a couple of days, this observation will be widely noticed, often talked about, and probed for deep meaning. But you read it here first!
Tuesday, January 22, 2008
Saturday, December 29, 2007
- Any "surge" by US troops in Iraq, if it occurs at all, will be perfunctory and ineffectual. Likewise, any diplomatic initiative aimed at Iran or Syria will be half-hearted and come to nothing. Instead, Bush will rely on congressional pressure to force his hand, allowing him to reduce the American troop presence in Iraq while protesting that the mission would have succeeded if not for the meddling of lily-livered Democrats. More generally, the administration's popularity will improve now that it has a Democratic congress as its foil, although Iraq, and foreign policy generally, will not be the main arena of confrontation (see below).
My clunker of the year--it would have been hard to have been more wrong on every count, I guess. Who knew that the US military, having bungled Iraq for several years, could suddenly conceive and implement an effective counterinsurgency strategy there?
- The conflict between Hezbollah and Israel will not flare up again this year, as Hezbollah will be preoccupied with consolidating and increasing its power in Lebanon. Meanwhile, Israel will be preoccupied with the continuing chaos in Gaza, which will spill over into the West Bank as well. The low-level civil war between Fatah and Hamas will continue, with numerous outside interests lining up on one side or the other. Rocket launchings and other attacks from Gaza into Israel will continue, and Israel's response will be sporadically violent, and sufficient to reduce but not eliminate them.
This one was just about spot-on, although arguably pretty easy to nail. The only possible criticisms are that the West Bank is still relatively calm, and that I didn't actually predict Hamas' takeover of Gaza. Both are, I think, minor quibbles.
- Attention in the US will turn away from foreign policy and towards the economy, as (1) the economy slows and (2) economic policy becomes the focus of the Democratic congressional agenda--and of conflicts between Congress and the administration. Trade, taxes, fiscal policy, entitlements and regulation of business will be key flashpoints, against a backdrop of slower growth, a weakening dollar, a continuing real estate slump, and a retrenching stock market. Oil prices will drop slightly, though, and interest rates will decline slightly--although not enough to juice the economy, owing to lingering inflation worries.
Pretty good, I think, although Congressional Democrats haven't exactly grabbed the economic non-bull by the horns. Also, the stock markets are actually up modestly on the year, thanks to big gains early on, and of course oil prices have skyrocketed instead of falling. It's easy to forget, though, just how little attention the economy was receiving a year ago, and how optimistic most forecasts were back then.
- In addition to the usual suspects all making it through the year (barring accident or illness), Ehud Olmert will surprise many by remaining in power as prime minister of Israel. (Navigating Israel's byzantine political ecosystem is the one thing he's serious about and competent at.)
My big winner for the year--few prognosticators would have given a plug nickel for Olmert's survival chances back when I called this one.
- Neither of the two current frontrunners for the Democratic party presidential nomination (Clinton and Obama) will be considered a frontrunner by the end of the year. On the other hand, at least one of the two current frontrunners for the Republican nomination (Giuliani and McCain) will be considered a frontrunner at the end of the year.
Badly off-base both in substance (with respect to the Democrats) and in spirit (with respect to the overall tone of both primary races). This cycle, the parties appear to have adopted each other's traditional roles, with the Democrats rather stodgily anointing a consensus heir-apparent and the Republicans flailing around looking for a candidate with sufficient national stature.
- (This one contributed by someone I know) A scandal will tarnish the sterling, upscale image of Whole Foods.
As promised...
Now for this year's predictions...
- Hillary Clinton will be elected president in November, by a solid margin, in an election with relatively light turnout by recent standards. The Democrats will retain control of both houses of Congress.
- The US counterinsurgency effort in Iraq will suffer significant setbacks in Iraq this year, but the political reconciliation process there will in fact make progress. Iran's nuclear program will last another year without either a military strike or a successful nuclear test. The Taliban insurgency in Afghanistan will grind on without resolution, aided by safe havens in Pakistan, where Pervez Musharraf will continue to rule, in one guise or another, replicating his neighbor's stalemate with its Islamists.
- Ehud Olmert will survive another year in office. The Winograd report will criticize him harshly for being too recklessly aggressive during the Lebanon war, thus providing him with cover against his more hawkish main rivals. He will also authorize at least one fairly large-scale incursion into the Gaza Strip, which will achieve little but will further shield him against charges of dovish, indecisive softness. Meanwhile, Hezbollah's position as the largest single power in Lebanon will be consolidated and officially enshrined in the country's political power structure.
- The US economy will narrowly avoid recession this year, but will experience very sluggish growth. Inflation will stubbornly refuse to fall, preventing the Fed from easing enough to really boost the economy. The stock market will have a down year, and oil prices will fall modestly. The housing market will not recover, but the US dollar will, somewhat, from its recent plunge.
- "Product placement"--advertising embedded into content such as music, films and television shows--will become more widespread and conspicuous, to the point where it becomes a subject of pop-culture irony.
As always, my predictions are not for everyone. Consult your doctor if you experience sensations of plausibility while reading them.
Friday, November 09, 2007
Of course, I could put in a lot of extra time (if I had any) and effort into making my blog more readable. But given that most of my postings contain roughly a book chapter's worth of ideas, it's not clear that that strategy would actually gain me readers. And in the end, I suppose I'd rather be brilliantly right than widely-read.
Then again, since you're all such scintillating intellects yourselves, perhaps I can benefit from your collective wisdom. Here's the challenge: take one of my postings (I'm assuming that mine, not LTEC's, are the problem), and explain how it could be rewritten so as to be much more accessible, without altering its content. The winner (in the unlikely event that there are multiple entries) will be posted as a kind of blog "'after' picture".