Percentiles
One of the most striking successes of the Occupy Wall Street movement has been the “We are the 99 per cent” idea, and more specifically in the identification of the top 1 per cent as the primary source of economic problems.
One of the most striking successes of the Occupy Wall Street movement has been the “We are the 99 per cent” idea, and more specifically in the identification of the top 1 per cent as the primary source of economic problems.
Two great outcomes in successive days[1], and neither would have happened without a hung parliament. I never accepted the horror with which many commentators viewed the election results (after all, minority governments have been common at the state level and have generally worked fine), but now I’m a positive enthusiast. It would be a pity if the independents who supported the government are punished by their electors – I’d say we need more independents of all kinds as a check on the executive power of the PM and the majority party
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… but the legislation for a carbon tax/fixed price emissions scheme has finally passed the House of Representatives, and is assured of passage through the Senate. Assuming the government can survive that long, it will come into force at the beginning of 2012-13.
Before any analysis, some (qualified) congratulations are in order. The Greens (with my support at the time, for what that was worth) took a big gamble in rejecting the badly-compromised Rudd-Turnbull deal, and have contributed to the passage of a much better bill now. Still, it turned out to be a long-shot. If the Gillard government had either won an absolute majority or lost to Tony Abbott, there would be no carbom tax. Kevin Rudd laid a lot of the groundwork, but failed to call a double dissolution, which he would surely have won, when the first version of the emissions trading scheme was blocked. Malcolm Turnbull has been a voice of sanity throughout, but still voted the party line. Last but not least, Julia Gillard, having almost succeeded in killing the whole idea in 2010 demonstrated her skills in getting an exceptionally contentious piece of legislation through, despite disastrous polls and the most fragile conceivable majority.
Now, a bit of a look towards the future
In the event that Julia Gillard lasts as PM until December, she’ll presumably be faced with a resolution making equal marriage rights part of Labor policy. Gillard’s handling of this issue is emblematic of her disastrous leadership in general – simultaneously unprincipled, unconvincing and politically unsuccessful.
Unlike our PM, I’m just old enough to remember when the phrase “living in sin” could be used with a straight face to describe living arrangements like hers. So, I find it hard to believe that her stated opposition to equal marriage rights is sincere (unlike with Kevin Rudd). Rather it’s the result of the kind of political calculation standard on the right wing of the Labor Party (see also Kristina Kenneally), in which the ‘real’ Labor voter is typecast as an aspirational bogan[1] whose views on social issues are unchanged since the 1950s. The key text here is Michael Thompson’s Labor without Class. There’s no evidence for this – views on social issues in Australia are largely uncorrelated with social class.
Allowing that some Labor voters are socially conservative, Gillard’s strategy is still politically stupid. Given the desperate state of the polls, she can’t hope to win by caution on an issue like this. It’s probably too late now, but a strong stand in favor of equal marriage rights might have done something to stop the drift of Labor voters off to the Greens, independents or the kind of apathy that makes it easy to shift to the Liberals, given an attractive promise or two.
fn1. To be boringly clear, I don’t use or endorse the term “bogan” to describe anybody. But the stereotypical image of a bogan coincides perfectly with the Labor Right view of Labor voters.
It’s been eighteen months since George Mason University began an investigation into allegations of plagiarism by Edward Wegman and his co-author Yasmin Said. Wegman and Said became famous for writing, at the invitation of anti-science Republican Joe Barton, an attempted takedown of the work of Mann and others on the “hockey stick” increase in global temperatures observed over the 20th century. Along with the statistical “analysis’, the report included a ludicrous foray into network analysis. Unfamilar with the field, Wegman and his co-authors cribbed extensively from Wikipedia, something that has turned out to be common pattern in his work. They were silly enough to submit it for publication in a journal with a friendly editor, leading to a highly embarrassing retraction.
Now there’s yet another piece of Wikipedia cribbing, reported by Dan Vergano in USA Today, with more from Andrew Gelman and Deep Climate who, along with the redoubtable John Mashey, have done most of the hard work in this case
The big question is how long GMU can keep on getting away with doing nothing. They ignored a critical editoral in Nature in May, and it looks as though they will keep on doing nothing unti some external agency forces them to move (or perhaps Wegman will decide to retire and render the case moot for them).
Another sandpit. You know the drill.
It’s time again for weekend reflections, which makes space for longer than usual comments on any topic. Side discussions to sandpits, please
There’s been a lot of discussion about the need for concrete demands from the #AmericanAutumn #OccupyWallStreet protests.
I just want to toss up the wholly unoriginal idea of a tax on financial transactions, originally proposed by James Tobin (he focused on international transactions, but the distinction is no longer meaningul). I’ve seen a sign advocating this on one of the videos of the protest, but I think it deserves more attention, for a bunch of reasons
* It’s directed squarely at Wall Street
* It’s global in its orientation
* It doesn’t require complicated structural change, as would a return of Glass-Steagall
* There’s an existing global movement supporting it
* It’s on the elite policy table right now, with support from the EU
* It would potentially raise substantial revenue, while greatly reducing the volume of short-term financial transactions
Here’s a a piece I wrote about not long ago in Politics and Society and an older article on the Tobin tax, and over the fold some notes I prepared for our Parliamentary Library a few years back
It’s time to talk about the Occupy Wall Street movement. As with the movement itself, I have more enthusiasm than analysis to offer at this point. I’m in Washington DC at present and i went to a (very small) meeting [1] a couple of weeks ago which was part of the planning for a similar protest starting on 6 October (more info here). Things have certainly grown since then, and it could be quite a big event.
In the generally undirected spirit of the movement, here is an open thread for your comments, predictions and so on.
fn1. As a visitor to the US, I’m not actually involved in the organization, but I was interested to hear about it and sympathetic to what I heard. Those at the meeting seemed more ordinary, and of all ages, compared to the media images of ragtag youth at the Wall Street protest.
A newspaper story I once read (almost certainly apocryphal) claimed that advertisement to this effect asked for a small payment in return for a guaranteed method of cutting energy bills in half. If you paid up, you received, by return mail, a pair of scissors.
A more serious version of this question occurred to me in relation to yet another dispute about the allegedly special character of energy as a commodity. It occurred to me to ask the following question: suppose that my family and I had to reduce my personal energy consumption, immediately and permanently by 50 per cent. How feasible would it be, and how much worse off would we be? So, assuming we attempted it evenly across the board, this would mean
* Reducing car travel by 50 per cent, until we could get a more fuel-efficient car, or share rides
* Reducing lighting by 50 per cent, until we could get more energy-efficient lightbulbs
* Reducing air travel by 50 per cent, until airlines introduced more fuel-efficient planes
* Reducing use of airconditioning and central heating by 50 per cent, either by turning it off half the time or by adjusting thermostats
* Reducing use of existing consumer durables and purchase of new ones by 50 per cent, until substitutes with less lifecycle energy use became available
To make it a bit tougher, we might try to achieve bigger reductions in these areas, to offset various forms of indirect energy use, such as the energy used in food production.
My assessment is that this would be very difficult. But do some comparisons, and it looks easy.
The case against Bolt began with a series of clearly defamatory claims against individuals, shown in the court decision to be false[1]. That’s never been part of the concept of free speech in Australian law, so, as far as the facts in this particular case are concerned, there is no problem. The main issues are whether it would have been more appropriate for the complainants to rely on ordinary defamation laws, and whether this case sets a precedent that might be used against legitimate expressions of opinion, for example on the appropriate criteria for determining indigenous status.
On the first issue, Mark Bahnisch (at LP, no link because of an annoying bug that stops me reaching the site from here) makes the point that the complainants wanted to address the attack on indigenous people in general embodied in Bolt’s piece, rather than simply the attack on their individual reputations. This is a strong argument. However, for cases of this kind, it might be better to change defamation laws to make racial attacks an aggravating factor, and evidence of malice, so that someone defamed because of their race could secure a judgement that made this clear, both in the findings and in the determination of damages. In particular, in a case like this, there should be no need to prove particular damage: the defamation should be sufficient for a judgement and damages.
As regards defamatory statements about a racial or religious group, of the general form “All/most Group X members display Bad Characteristic Y”, it would be possible to extend existing laws to allow class actions. That hasn’t been allowed in the past, but there is no good reason for a distinction between defaming someone as an individual and as a member of a group.
That would leave the case of statements that might “offend, insult or humiliate” members of some group without being defamatory in the ordinary sense of the term. While it’s easy to imagine some very troublesome cases, there are a number of defenses in relation to academic discussions, public interest matters and fair personal comment, and so far there isn’t significant evidence that the provisions have in fact worked to constrain free speech in any meaningful way. Still, if there are changes needed, this is the place to look.
fn1. In this context, the defence that Bolt honestly believed the claims to be true would be irrelevant. In any case, he obviously took so little care in his research that a defence of this kind would fail to meet the test of reasonable belief.
Here’s an open thread for succinct posts on any topic. Lengthy side disputes and idees fixes to the sandpit, please. Also, thanks to everyone for (mostly) maintaining civil discussion, despite my limited monitoring. Please keep it up.
At long last, another sandpit for those continuing debates people have been waiting for
An open thread on this topic. Obviously, please avoid anything that might be seen as defamatory, either of Bolt, the plaintiffs, other commentators or anyone else.
The stages of grief when a political leader is doomed differ a little in sequence from the classic Kubler-Ross order, since bargaining is a real process rather than an adjustment mechanism. Altering the order to Denial, Anger, Depression, Acceptance and Bargaining, I’d say the Labor Caucus is now in the Depression stage. Acceptance must happen before too long – the evidence that Labor will be crushed under Gillard is overwhelming and no-one really wants to try a third leader in less than two years.So, after Acceptance, it will be time for Bargaining. The key is for Rudd to accept enough collegial control to prevent a repetition of the failure last time.
Steve Williamson has written a much longer critique of Zombie Economics. It’s a lot more temperate in tone than the blog post I criticised here, and there are some valid points. Nevertheless, the new version exhibits the same fundamental confusion I pointed out last time, trying to claim that rationality assumptions are both important and unfalsifiable.
I’m criticising it again because, in making this mistake, Williamson is not exactly Robinson Crusoe[1]. The same confusion is evident among a great many economists, and even more among proponents of rational choice models in political science and other social sciences. This, despite the fact that the key error was skewered by William Hazlitt nearly two centuries ago, writing on self-love and benevolence.
A bunch of standard measures of US economic wellbeing (median household income, real wages for workers with high school education, educational attainment by age 25 and so on) show strong improvement from 1945 to the early 1970s, followed by stagnation or very slow growth thereafter. A variety of arguments, have been put forward to suggest that the standard statistical measures understate improvements in wages, incomes and so on since the 1970s. Some of these arguments are valid (for example household size has fallen), some not (for example, the fact that we now have more of goods that have become relatively cheaper). Regardless of validity, the main reason people believe these arguments is that, for anyone who was around at the time, it seems implausible that our parents’ living standards in the 1970s were comparable to our own today (assuming roughly similar class positions)
This reasoning is invalid for a reason that should be familiar to those on the conservative side of debates over inequality. The measures mentioned above compare snapshots of incomes at different times. But (as conservatives regularly point out) standards of living are determined mainly by lifetime incomes, not by income in any particular year. Given the pattern described above, lifetime income for someone who worked, say, from 1940 to 1985 was well below that for someone in a similar class position who started work in 1970, just when the long increase in real wages was slowing for most and stopping for some. For every year of their working life, the 1970 starter gets a wage (adjusted for age, education and so on) that’s as high as the maximum attained by the 1940 starter after 30 years of steady growth. Unsurprisingly, that translates into a bigger house, and more of most items that require savings, whether or not their price has risen relative to the CPI.
… got some interesting reactions on Crooked Timber. Its is set out over the fold. I’m confident readers who take a little time to think about it will realise it’s far superior to existing policy, and to any alternative proposed so far.
The latest round of controversy between Robert Manne and The Australian has followed a pattern that is now familiar. Manne presents the evidence that The Australian routinely distorts the news to fit its political agenda, and equally routinely denies that it has any such agenda. The Oz responds with a stream of opinion pieces, snarky items in Cut and Paste, objectionable cartoons and so on.
If we try to understand this in old media terms, it’s a bit hard to follow. Not only does the Oz violate basic rules like separation between news and opinions, but its reactions seem absurdly oversensitive. As I and others have demonstrated many times now, a single piece of criticism from a relatively obscure academic can drive the country’s only national newspaper (not counting the Fin with its special focus) into absurd paroxysms of rage.
On the other hand, if you think of the Australian as a rightwing group blog (readers can fill in their own examples), everything makes sense.
That’s the title of my most recent Fin column, over the fold
As I’ve mentioned a few times, I got a lot out of Erik Olin Wright’s Envisioning Real Utopias, and am still hoping our long-promised book event comes to fruition. The general idea of the book was in line with my thinking that technocratic rationality, of the kind offered by, say Obama or Blair, is not a sufficient answer to the irrationalist tribalism of the right – the left needs a transformative vision to offer hope of a better life, both for the increasing proportion of the population in rich countries who are losing ground as a result of growing inequality and for the great majority of the world’s population who are still poor by OECD standards[2]. So, Utopia matters.
But it’s just as important that utopia be feasible. Utopia as a dream may be comforting, but is unlikely to inspire effective political action. And attempts to implement a utopia that isn’t feasible are bound to end in failure, quite possibly disastrous failure, as the experience of communism showed us.
So, my idea was to think about what kind of transformative vision might be both feasible, and capable of inspiring effective action. I had a first go at this here and here, in relation to education.
Turning to health care, we could start with a utopian ideal where everyone got all the health care that could benefit them. But that would be utopian in the pejorative sense – the scope for expanding health services is effectively infinite, and the resources available to society are not.
Thinking about feasible utopia, on the other hand, it seems to me that the system of socialised health care in modern social democracies is not a bad model. That is, if all of society worked like the health care system at its best, we could regard the political project of social democracy as a success.
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That’s the tagline of Crooked Timber, the group blog of which I’ve been a member for quite a few years. I knew that it was quoted by Isaiah Berlin as a translation of something written by Kant, but I’ve never, until yesterday, seen it in a more complete context. That’s when I finally stumbled across Berlin’s, The Crooked Timber of Humanity, Chapter 1 of which ‘The Decline of Utopian Ideas in the West’ ends as follows
a liberal sermon which recommends machinery designed to prevent people from doing each other too much harm, giving each human group sufficient room to realise its own idiosyncratic, unique, particular ends without too much interference with the ends of others, is not a passionate battle-cry to inspire men to sacrifice and martyrdom and heroic feats. Yet if it were adopted,it might yet prevent mutual destruction, and, in the end, preserve the world. Immanuel Kant[1], a man very remote from irrationalism, once observed that ‘Out of the crooked timber of humanity no straight thing was ever made.’ And for that reason, no perfect solution is, not merely in practice, but in principle, possible in human affairs, and any determined attempt to produce it is likely to lead to suffering, disillusionment and failure.
Broadly speaking, I’m sympathetic to what Berlin is saying here. Revolutionary utopianism has been a disaster, particularly for the left. But, we still need a feasible version of utopia to oppose to the appeal of irrationalist tribalism and the naked self-interest of the top 1 per cent. And, whatever Berlin may have intended by it, “prevent people from doing each other too much harm” should not mean leaving the rich to enjoy the fruits of a system constructed in their own interests, and letting the devil take the hindmost.
A social democratic and feasible utopia should giving all human beings (individually and as a member of various groups) sufficient room and resources to pursue their own idiosyncratic, unique, particular ends with a reasonably equal capability of achieving ends that are feasible given the resources available to society as a whole.
It’s hard to spell out what that means, but I think easy enough to see that developed societies were moving in that direction, broadly speaking, until the 1970s, and are mostly moving away from it today (with some exceptions in areas like gay rights). The failure of the market liberal model to deliver on its promises, evident in the global financial crisis, along with the current struggle over austerity provides an opportunity to recover some of the ground lost in the last thirty years while, hopefully preserving the gains.
fn1. As in many such cases, our blog’s name and tagline owe at least as much to Berlin’s translation as to Kant’s original.
I’m not always in tune with the political zeitgeist, but my decision to run a post advocating a dignified resignation for Julia Gillard was made just ahead of the rush. Of course, the option of voluntarily stepping aside has now been foreclosed. When Gillard goes (I don’t think there’s a remaining question of “if”) it will be as a result the usual messy and unpleasant process of assembling a sufficient number of votes (not necessarily a majority) to render her position untenable.
Both because I don’t want to see any last-minute stuffups, I hope the carbon tax and mining tax legislation is passed before she goes. Certainly, whether or not she supported these measures, she did the hard yards to get them through.
On the question of her replacement, I had previously dismissed Rudd, on the basis that his abrasive personality and micro-management tendencies (not apparent in his public persona, but well-attested) would make him unacceptable to his colleagues. However, the High Court decision on asylum seekers changes all that. Rudd has more credibility on this issue than anyone else in the party. Labor has no choice but to revert to a more humane position and stress the point that the Court decision undermines Abbott as well as Gillard. It now seems highly unlikely that a policy based on long-term detention of people who have already been assessed as refugees can stand up, wherever they are held.
Stephen Smith seems like the natural choice for deputy, and it would be sensible to find a ministerial spot for Gillard, all of which would permit a reshuffle.
No one can tell for sure, but I think the return of Rudd would put the spotlight on Abbott’s total fraudulence, maybe even paving the way for the Rudd vs Turnbull election we should have had last time.
I’ve never been a big fan of scandals, but occasionally you can’t ignore them. That’s true of the scandals currently afflicting the Labor government. As regards the Thomson accusations, if he is guilty he should resign his seat and will in any case be forced to do so if convicted. That will probably end the government if it happens, but there’s not much I can add in the way of political analysis.
The accusations against Julia Gillard published, and quickly retracted, by The Australian under Glenn Milne’s byline are a different matter. Not only has the content of the retracted article become public knowledge, but News Limited appears to be walking back from what at first appeared to be an unreserved apology, notably in comments by Hartigan and in Andrew Bolt’s column on the topic.
In these circumstances, Gillard has no alternative but to disprove the allegation that she derived a financial benefit, even unknowingly, from the fraud committed by her former boyfriend. That seems like a pretty clear-cut question of fact, which should admit a resolution even nearly 20 years after the event.
On the other hand, if the falsehood of the allegation can be proved, the case that News Limited in Australia is playing the same dirty tricks as its UK and US operations becomes all that much stronger, as does the case for treating the entire organisation as a political propaganda/lobbying operation rather than a newspaper publisher in the traditional sense. And, of course, Gillard would have a very strong case for defamation.
All of this pretty much kills my suggestion for a graceful exit by Gillard after the passage of the carbon tax. Until she can put this one to rest, a resignation would look like an admission of guilt.
Because of writing and travel commitments, I’ll be blogging less frequently for the next few months. I’ll try to put up some open threads – please keep discussion on these threads civil and friendly, so that I don’t have to intervene in their management.
I’ve been planning for a while to write a post arguing that the one thing Julia Gillard can do to (at least, potentially) salvage her place in the history books is to secure passage of the carbon price package (and preferably the other outstanding items left over from the Rudd era, such as the mining tax legislation and health reform), then step aside, and let the Labor party choose a new leader. I was going to wait until the package was passed, but for various reasons, I’ve decided it’s time to speak up on this.
I’ve been very critical of Gillard, but I’m probably less hostile to her at this point than the majority of Australians. On the other hand, her success in holding a fragile government together, and in securing agreement on some complex pieces of policy, suggest she is much more appealing in person than her public persona would imply. My limited contacts with people who’ve worked directly with her support this view, as does the clear belief of her supporters that, if only we could see the “real Julia” we would all like her.
Unfortunately, that’s no longer a relevant possibility. After more than a year in office, there seems very little likelihood that the negative view of Gillard, based on her public record, is going to change, no matter how many rebranding exercises she undertakes. Her last chance, a big bounce when the release of the carbon price package showed the spurious nature of Abbott’s scare campaign hasn’t come off. Moreover, despite her contribution to getting the package together, she can never get past her promise that there would be no carbon price under her government. Only with a change of leader can Labor sell the carbon price.
As regards the choice of alternative, my natural inclination is for Rudd, but it seems clear that his colleagues won’t go that way, and he is doing a good job as Foreign Minister. Wayne Swan has been a good Treasurer, but he is too closely tied to the coup against Rudd and the dumping of the CPRS. Greg Combet would be my preferred choice, but Stephen Smith would also be good.
Given a change of leader, and if they aren’t forced to an election early, I think Labor still has a good chance. Abbott is incredibly unpopular, considering the circumstances, and the hostility towards Labor is very much focused on Gillard personally. If the government can survive long enough to see the carbon price in place, Abbott’s scare campaigns will collapse completely.
Matt Yglesias says
Many on the right and center indicate that in order to restore the economy, President Obama needs to do more to cater to the whims of rich businessmen. Many on the left feel that this is exactly wrong and that in order to restore the economy, President Obama needs to do more to stick it to the rich and dispossess them. History suggests that both are wrong.
He goes on to give plenty of evidence for the wrongness of the first proposition, and none at all for the second.
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The seemingly imminent downfall of Muammar Gaddafi may not represent “the end of history”, but, for the moment at least, it’s pretty close to being the end of tyranny, in the historical sense of absolute rule by an individual who has seized power, rather than acquiring it by inheritance or election. Bonapartism (if you exclude its more specialised use to refer to supporters of the Bonaparte family claim to rule France) , is probably the closest modern equivalent. Forty-odd years ago, this kind of government was the rule rather than the exception in most regions of the world (notably including South America and the Communist bloc), and was represented even in Western Europe by Franco and Salazar.
Now, there’s Mugabe clinging to a share of power in Zimbabwe, along a bunch of less prominent, but still nasty, African dictators in the classic post-colonial mode (in the original CT version of this post, I underestimated the number of these who are still around, but they are clearly a dying breed). Add in a handful of shaky-looking strongmen in the periphery of the former Soviet Union, and that’s about it for tyrants in the classical sense.
Normally classed as tyrants but not meeting the classical definition, Kim jr, Assad jr and Castro minor (and some others mentioned in comments), the first two of whom are certainly tyrannical in the ordinary modern sense, but all of whom inherited their positions, as of course, did the remaining absolute monarchs. The historical evidence, starting with Cromwell jr, and running through Baby Doc Duvalier and others is that regimes like this hardly ever make it to the third generation. They combine the low average ability inherent in hereditary systems with a lack of either royal or revolutionary, let alone democratic, legitimacy.
More interesting cases are those of Museveni in Uganda and Kagame in Rwanda, illustrations of the point that tyrants in the classic sense need not be bad, at least relative to the alternative they displaced. But these seem to be isolated examples, owing much of their appeal to the horrors that preceded them and the fear that those horrors might return.
More surprising to me are the number of cases where classic tyrants, having established one-party states, have been succeeded by self-selecting oligarchies – China is the most striking example, but Singapore also fits. Looking at the evidence of the past, I would have predicted that such oligarchies would either collapse in short order or see the emergence of a new tyrant, but there is no sign of that for the moment.
I don’t have a good theory to explain the rise of so many tyrants in the modern period, beginning with Bonaparte (or maybe Cromwell), or the sharp decline of this form of government from around the mid-1960s. But it seems that it’s a development worth noting.
fn1. Putin is often presented as being a near-dictator. But he doesn’t need to repress his opponents – it’s pretty clear he would easily win elections in Russia with or without doing so. Conversely, there’s no real evidence to suggest that he could or would hold on for long if public opinion turned sharply against him.
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