Answers = good data + reasonable thinking


It’s always frustrating to make a case that you are thinking clearly where others are not, but I do think it’s reasonable to suggest that most political arguments are NOT valid because they fail the test above.  Good answers come from taking good data and applying  reasonable thinking to that data.     Bad answers come from faulty reasoning or, more often in my view, simply starting with bad information – most common is to use non-representative or narrowly focused data.

We see this bogus “logic” in practice in the presidential political arena daily as well as in most of the clever propagandistic “documentaries” which in turn are used to support more bad thinking.     For example a right wing talk show whacko will point to Obama’s association with some socialist in his past  and suggest this makes him a socialist, failing to note that Obama’s also been associated with people from center and right wings of politics.    Left wingers will fret over imaginary conspiracy arrangements between the US Government and corporations as they note real corporate/government connections but fail to note the many legal checks on corporate power.

These aren’t the best examples but I think the point is more than sound – if you want good answers you need to stop narrowly focusing on the data that supports what you already believe, and look instead for the broadest representative data samples on which to apply some good reasonable thinking.

The exception to this, though it’s used as the rule for most people, is a *debate* format where one’s  job is to support a point of view as strongly as possible.    Debates almost guarantee that the data used by each side will be  selective, focused on supporting a point of view rather than uncovering truth.    Often, people get so wrapped up in the debating aspect of discussion that they actually start to believe they are seeking truth rather than supporting a point of view.

We cannot escape this challenge – people will keep fighting for their points of view in irrational ways, using bad data and bad reasoning.   But I do think we should all work a lot harder to define the goal of discussion as  finding a fuller, richer truth rather than simply scoring debate points or promoting our own political agenda.

Just don’t  hold your breath waiting for that …

Do you ignore the poor or exploit the poor?


There is a small (but I think growing) group of folks who are REALLY working hard to help people.  They neither EXPLOIT the poor nor IGNORE the poor as they seek solutions to the  world’s pressing problems.  

The rest of us – I still put myself in this category but hope to escape it someday – pretty much ignore the world’s pressing problems in favor of pet peeves, political nonsense, and the many usually trivial injustices faced in most of the western wealthy world.     So many  Americans don’t get this because they have not seen much of the rest of the world and/or they are incredibly self absorbed, but ironically the challenge of fretting over nonsense plagues most of us in the western world who collectively have … most of the wealth of the world.

As a reminder for those of you who get all their news from silly personal blogs (!)  local sources, the interwebz, or cable news outlets, the MOST PRESSING problems of the world are mostly related to poverty and include preventable diseases like malaria, bad water, poor sanitation, and lack of health care in developing world  (no, US health care is NOT a pressing global problem!   Just review the health care for the massive majority  living at the average standards in Africa, North Korea, rural India, Pakistan, China or Indonesia.   Studies of costs and benefits clearly indicate that the USA has great quality but wastefully and massively expensive health care system.

In  my opinion we need to seek *reductions in quality and cost* in many sectors of health care here in USA in favor of the huge cost savings that would bring.    For example if you shifted costs from expensive MRIs and CAT scans for the marginally ill to more funding for inner city nutrition programs the *net effect* would probably be a lot more life years saved.     Why?   high tech care is hugely expensive and only marginally helpful in terms of long term outcomes where low tech interventions have much higher return on investment.  Let’s start focusing on ROI, not politically motivated budgeting that favors interest groups over the truly needy.

Much of the world’s population is dying – literally dying – for the conditions we take for granted (and even complain about as inadequate) here in the USA.   To be rational, if we want to “make the world a better place” we need to discuss human needs in a global context rather than the local context.    Obviously there are reasons to discuss these topics within a local context, as when one is working to create better health care for their family, their city, their state, or their country.   But those discussions are selfish ones.   Selfishness is OK, it’s natural, and it will always be part of the human condition, but it’s important that we recognize that what’s good for our family, our state, or our country is NOT likely the optimal solution for the world at large.     I have no good resolution for this  but it always frustrates me how people tend to think the systems that work best for them  are the ones that are best.    That would be nice, but it’s almost never the case.     This extends broadly to other things as well.    There’s generally opposition to higher taxes in the private sector and support for higher taxes in sectors where taxes are paying the salaries.

Back to the point here:  Aside from that small group of missionaries, NGO workers, and a few others most of the rest of us simply IGNORE the poor.

For me, ignoring the poor is the pressing issue rather than exploitation.  In fact I think this point is missed by many of the amazing, wonderful folks who work in NGOs that do so much to fight poverty.    It’s easy to point at the wealthy and think they are “sucking up” resources that would go to the poor rather than the more accurate view that they are keeping most of the EXTRA wealth they created through innovation and entrepreneurship, not exploitation.    I realize this is a sweeping assumption and needs data, so if you have ideas about how to measure this objectively I’m very interested.

Definitions and symantics challenge us here.   For some Apple is exploiting those who work in the iPhone factories because they make a fraction of what they’d make in USA, where for others Apple is helping the poor by providing better jobs than they’d have without an iPhone factory.     I lean strongly to the latter view but recognize that this is a complicated subject, relating to the relationship of how to combine wealth creation with better wealth distribution.     Right wingers typically ignore inequality and distribution issues in favor of maximizing production while left wingers typically see economics as zero sum game and thus only pay attention to wealth distribution.    Of course there is no “right answer”, but we should always be looking to find a “better way” to combine the challenges of wealth creation and distribution.

…. more coming on my favorite topic …  please chime in ! ….

Blue Brain Project Progress …


Arguably the world’s most significant science project along with DARPA SyNAPSE, Blue Brain is working to create a functioning NeoCortical column (think “how we think”) simulation via a supercomputer. Progress seems pretty steady although DARPA SyNAPSE has been getting a lot more press and money lately.
http://thebeautifulbrain.com/2011/08/bluebrain-year-two/

Capitalism, wealth disparity, and the end of Western Civilization as we know it … what would Adam Smith do?


Thanks to my good pal Keith (Check out his cool Travel blog about the Tuvaluan Island of Nanumea  ) I’m directed once again to the capitalist controversies.

www.ft.com

A letter to capitalists from Adam Smith

By David Rubenstein

To: Capitalists of the World

From: Adam Smith

What has become of my beloved capitalism? Countries teeter, protests rage, unemployed multiply, deficits abound the virtues of capitalism are questioned. Based on a few hundred years of observation, I have some fresh thoughts on how to sustain this system for a few hundred years more, or at least do better in 2012 than it did in 2011.  

….  CONTINUED at FT – free registration required.

——————————–

My (Joe’s) take on that article:

I like the first part – the setup – by far the most.

In my opinion Adam Smith would be fine with the ups and downs and wealth disparities as long as the poor keep getting richer – which is in simple terms what is happening now, esp. when one does not (absurdly) remove Chinese and Indians from the equation.

The disparity controversies  remind me of the OWS ranting against the big system, and I remain somewhat unmoved by that until I can find better data about money flows.  There may be some merit for the case that wealth is flowing “too disproportionately” to the wealthy, but we need a LOT more than simply observing disproportion, which is the cornerstone of smart markets.   Without it you tend to get a race to the bottom, where the lack of incentive  makes it hard to get folks to work “harder” than others.   Simplification?  Yes of course, but if we are ever going to improve the disparity issues we need the American left to recognize how brilliantly the American system has worked over a long history to *improve* things using the architecture of entrepreneurial incentive, combined with a very progressive federal and state taxation system where those with the most pick up most of the tab for those who don’t have as much.
 ——————-
Obviously about 99 % of us would like to see the extra wealth flow to US more than the 1 percenters who are reaping more than what some would call a “fair share”, but …
Let’s try to figure this out by simplifying:  Let’s say if you have a single very clever woman who builds a company that eventually consists of 101 people, the founder (who took risk, mortgaged her  house in process, and developed a brilliant idea into a business) and 100 other folks who were hired after the company was a success, all 100 of now make a living wage of $50,000 per year plus benefits.   Let’s also reasonably assume that the founder remains clever, and her departure would hurt the company to the tune of many millions in profits.
Question:  What is a “fair amount” for the founder to make in this example?    0 because she loves her work and she has no boss ?   50,000 because everybody else makes that?   100% of the extra profit she account for?   Very few would argue for any of these.  Obviously she should make MORE than the others, and LESS than the total extra profit.
Really, the only smart issue on the big economics table is HOW MUCH MORE?
VERY IMPORTANTLY note this.   Assume she’s been making 50k, same as the wage of her workers.  Then, after a great year that she single handedly engineers that give the company an extra 5 million in profits – profit from accounts that are likely to continue into the future –  she raises her pay to 500k  (a 900% raise) and doubles all her worker’s pay to 100k (100% raise).    How do we interpret that action?
OWS is incensed – the new wealth was distributed VERY disproportionately.  She got 900% the raise she gave her workers.
I, on the other hand, think she’s great and would love to work for her.   That’s GREAT pay when you have so little risk, and she’s the architect of the innovations.    Both in fairness terms and in pragmatic terms I want her to get more.   I want SOME of that extra profit, after all, I’m part of the company, but the architects of the wealth creation “should” be disproportionately compensated.
There are exceptions to this simplification, such as CEOs that preside over lowered valuations yet make big money, but in simple terms this is pretty much how things work, and we change that at our enormous peril, because you can bet dollars to yuan that China will choose that model over the OWS more socialistically inspired model.
Key questions are this:  HOW do we optimally distribute and redistribute (tax)  “new wealth”?   and “old wealth”, such as inheritance money?

What’s Up Joe Duck?


It’s always annoying when folks say how busy they are when – almost always – – they are involved in many hours per day of unnecessary TV watching, Facebooking, gaming, making your own hair gel, hobbies, gardening, etc.   Nothing wrong with all those things but it’s not the same as “being busy” doing things you MUST do because of work and other “essential” committments.

That said, I think I’m into the “busy” realm now with more projects than I can possibly complete for some time.   It’s been a good motivator for me, but it’s a little intimidating too.

Here are some of them:

Retire USA Retirement Information.   This is a big project with four other partners where we’ll showcase retirement options in all 50 states.   States and cities are online and I’m building the connections to the 5000+ category records now.    We’ve had an Oregon retirement website for some time and a retirement blog for some time but will be revamping that soon to include more information from more writers and many experts in retirement.

US History, US History Blog, Online Highways Travel, Travel and History.  These are the sites managed mostly by my business partner but with some input by me, especially at our two travel blogs US History and Travel and History.    I LOVE travel blogging and wish I had even more time to travel and blog, but blogging is playing mostly a weak supporting role in my internet projects.   I still need to get my Vietnam trip of Feb 2011 integrated into Online Highways as well as create more opportunities for small businesses at the site.

House Remodel.   My son Ben and I bought a house for him to live in when he leaves home.  It was a good “REO” post foreclosure deal but it needs a huge amount of work to become a great place.    We’ll get some contractor help but do a lot of the work ourselves.  After a few days of pulling up flooring I’m sure glad they invented Ibuprofen.

The QuickAid.com Airport Information Directory.  This  project started me off over ten years ago as an internet entrepreneur.   I bought the website and data from another company and revamped it to include advertising.  However after good initial success I fell victim to Google’s changing algorithms.   They seem to be liking QuickAid again so I’ll be posting to that blog more often and revamping some of the old content about airports all over the world.

AirportCityCodes.com  This is my Airport Codes database of Airports and world airport code and airline code information that also needs some attention.

Twitter.  @JoeDuck  I still love twitter but not quite sure how to use it to business advantage.  I’m setting up individual accounts for many of my websites, but it’s hard to keep engaged with them all.

…. to be continued …

 

CES 2012 Wednesday – Fox news reporting from CES


CES 2012 Wednesday – Fox news reporting from CES

Originally uploaded by JoeDuck

Here is FOX news reporting (I think live) from CES 2012 here in Las Vegas. As always the show is a sea of consumer technology and people. Some 125,000 (approximate) attendees, 6000 press and 2700 Vendors. This appears to be Microsoft’s last CES and there’s som buzz about the show facing challenges, but my guess is that CES will remains the key tech showcase for the world and that we’ll see Asian companies take up the slack for Microsoft and others who opt out of the show. The costs here for exhibitors can be staggering with the larger players like Samsung and Microsoft spending more on exhibits that the smaller companies here make in several years. Yet generally the small vendors tell me they are happy with the show – for many their big event of the year in terms of meeting buyers and showcasing their stuff.