Economics – Page 39 – artdiamondblog.com

“Mind-Bending” Automatic Braking Trickles Down to Cheaper Cars

(p. B4) I first experienced radar-assisted cruise control in a $70,000 Mercedes in 2001. Slowing automatically to keep from hitting the car ahead felt like a magic trick. In 2009, I was told to drive a new $50,000 Volvo into the back of a “parked car” (really, an inflatable mock-up). Every fiber of my body wanted to stomp on the brake pedal. Instead, the car did it for me. Automatic braking is mind-bending the first time.
Both of these technologies are standard equipment on 2017 Toyota Corollas, which start at $19,385. So is lane-keeping assist, which nudges the car back between the road stripes if you wander. Automatic high-beam headlamps, too.
Huzzah for technology trickle down!

For the full story, see:
TOM VOELK. “Tech Trickles Down into a Safer Corolla.” The New York Times (Fri., MARCH 17, 2017): B4.
(Note: the online version of the story has the date MARCH 16, 2017, and has the title “Video Review: Not-So-Standard Equipment on the Otherwise Standard Corolla.”)

Employers Less Likely to Hire Older Workers

(p. A3) Using a method of uncovering discrimination well known in economics, David Neumark, an economist at the University of California at Irvine, led a study that sent out 40,000 fake résumés to employers who had posted openings. Mr. Neumark and his co-authors found that résumés suggesting an applicant was 64 to 66 years old got a response 35 percent less often than résumés suggesting that the applicant was 29 to 31.
Labeling it discrimination is another matter, however. “The one thing that people always point out is that acceptability for age stereotyping is extremely high,” Mr. Neumark said. “The number of people who make age-related jokes are way more frequent than people who make race-related jokes. For whatever reason, the social stigma for age discrimination is really weak.”
Aside from fairness, evidence suggests that finding ways to keep older Americans working has benefits to the broader society: Working keeps older Americans happier, healthier and more mentally engaged. And forestalling retirement could relieve some of the pressure a large aging population places on this country’s social safety net.
“Governments all over the world are trying to figure how to get old people to stay at work longer,” Mr. Neumark said. “If we have discriminatory barriers, then all these reforms will be less effective.”

For the full story, see:
Quoctrung Bui. “As More Older People Look for Work, They Are Put Into ‘Old Person Jobs’.” The New York Times (Thurs., AUG. 18, 2016): A3.
(Note: the online version of the article has the title “More Older People Are Finding Work, but What Kind?”)

The Neumark paper mentioned above, is:
Neumark, David, Ian Burn, and Patrick Button. “Experimental Age Discrimination Evidence and the Heckman Critique.” American Economic Review 106, no. 5 (May 2016): 303-08.

Under Communism Inventiveness Did Not Yield Economic Benefits

(p. A17) The Soviet Union may have pioneered in space with Sputnik and Yuri Gagarin, but today Russia has less than 1% of the world commercial market in space telecommunications, the most successful commercial product so far stemming from space exploration. Russians may have won Nobel Prizes for developing the laser, but Russia today is insignificant in the production of lasers for the world market. Russians may have developed the first digital computer in continental Europe, but who today buys a Russian computer? By missing out on the multi-billion-dollar markets for lasers, computers and space-based telecommunications, Russia has suffered a grievous economic loss.
Accompanying this technical and economic failure was a human tragedy. Russian achievements in science and technology occurred in an environment of political terror. The father of the Russian hydrogen bomb, Andrei Sakharov, wrote in his memoirs that the research facility in which he worked was built by political prisoners, and each morning he looked out the window of his office to see them marching under armed guard to their construction sites. The “chief designer” of the Soviet space program, Sergei Korolev, was long a prisoner who worked in a special prison laboratory, or sharashka. The dean of Soviet airplane designers, A.N. Tupolev, also labored for years as a prisoner in a special laboratory. Three of the Soviet Union’s Nobel Prize-winning physicists were arrested for alleged political disloyalty. Probably half of the engineers in the Soviet Union in the late 1920s were eventually arrested. In 1928 alone 648 members of the staff of the Soviet Academy of Sciences were purged.
When one looks at these statistics and at the genuine achievements of Soviet science, one is forced to ask basic questions about the relation of freedom to scientific progress.
. . .
Mr. Ings admirable effort to reach nonspecialized readers sometimes leads him to make exaggerated statements. He claims that we have “good agricultural and climate data for Russia going back over a thousand years” when in fact the data is incomplete and unreliable.
. . .
The claim that the Soviet Union was a scientific state brings Mr. Ings close, in his conclusion, to condemning science itself. He sees science and technology as causing a coming global ecological collapse, and he thinks that in some ways the demise of the Soviet Union was a preview of what we will all soon face. In one of his final sentences he says: “We are all little Stalinists now, convinced of the efficacy of science to bail us out of any and every crisis.” “Stalin and the Scientists” deserves attention, but a very critical form of attention. It is based on an impressive amount of study, and most readers will learn a great deal. It is, however, incomplete and overdrawn.

For the full review, see:
LOREN GRAHAM. “BOOKSHELF; No Good Deed Went Unpunished.” The Wall Street Journal (Tues., Feb. 21, 2017): A17.
(Note: ellipses added.)
(Note: the online version of the review has the date Feb. 20, 2017, and has the title “BOOKSHELF; Science Under Stalin.”)

The book under review, is:
Ings, Simon. Stalin and the Scientists: A History of Triumph and Tragedy, 1905-1953. New York: Atlantic Monthly Press, 2017.

Chinese Government Stimulus Inflated Egg Futures Bubble

(p. A1) HONG KONG — China is pouring hundreds of billions of dollars into its economy in a new effort to support growth. Some of it is going into roads and bridges and other big projects that will keep the economy humming.
And some of it is going into eggs.
China’s latest lending deluge has sent money sloshing into unexpected parts of the economy. That includes a financial market in Dalian where investors can place bets on the future productivity of the country’s hens.
Egg futures have surged by as much as one-third since March, the sort of move that would be justified if investors believed China’s chicken flocks were headed for an unfortunate fate.
But the market’s usual participants say the flocks are fine. In fact, the actual price of eggs in the country’s markets has fallen from a year ago, according to government statistics.
The reason for the unusual jump in egg futures, they say, is China’s tendency to experience investment bubbles when the government steps up spending and lending. China’s previous efforts to bolster growth unexpectedly (p. B2) sent money into real estate and the stock market — markets that had unexplained rises followed by striking drops.
“Many commodities prices have gone up crazily,” said Du Shaoxing, a futures trader in Guangzhou, in southern China. “We surely hope for a more stabilized trend where futures can reflect economic fundamentals. The way in which recent commodity prices went up is worrisome.”
China’s latest bubble illustrates the potential risks of its newest effort to spur growth. The Chinese economy is already burdened with too much debt, economists say. And sometimes, stopgap measures to help the economy create long-term problems.

For the full story, see:
NEIL GOUGH. “China’s Flood of Cash Roils Egg Futures.” The New York Times (Weds., May 2, 2016): A1 & B2 [sic].
(Note: the online version of the article has the date May 1, 2016, and has the title “China Lending Inflates Real Estate, Stocks, Even Egg Futures.”)

Amateur Tinkerers Keep Steam Power Alive

(p. D4) Most people, when they think of steam power, they think of rusty farm tractors from 150 years ago. But there’s such a thing as modern steam power. Steam is the most direct way to get power out of heat. You can’t build an internal combustion engine in your garage. But you can build a steam engine, and the interesting thing is, it can run on anything that will burn, even sawdust.
At my farm, I have about 100 steam engines, many of them homemade, plus a library of technical papers, patents, and books on steam technology. I have Volkswagen engines converted to steam, outboard boat engines, etc. I collect and preserve this stuff. I get a lot of it from old widows whose deceased husbands were tinkerers; these women are so happy to get rid of it. Some of the engines are well built, others not, but you can learn as much from a bad example as a good one.

For the full story, see:

Kimmel, Tom (as told to A.J. BAIME). “MY RIDE; Never Before Has Steam Been Quite This Cool.” The Wall Street Journal (Weds., Dec. 2, 2015): D4.
(Note: the online version of the story has the date Dec. 1, 2015, and has the title “MY RIDE; Never Has Steam Been So Cool.” )

Nano-Enhanced Fabrics Can Clean Themselves

(p. D3) Scientists in Australia, one of the sunniest places on the planet, have discovered a way to rid clothes of stubborn stains by exposing them to sunlight, potentially replacing doing the laundry.
Working in a laboratory, the researchers embedded minute flecks of silver and copper–invisible to the naked eye–within cotton fabric. When exposed to light, the tiny metal particles, or nanostructures, released bursts of energy that degraded any organic matter on the fabric in as little as six minutes, said Rajesh Ramanathan, a postdoctoral fellow at RMIT University, in Melbourne.
The development, reported recently in the journal Advanced Materials Interfaces, represents an early stage of research into nano-enhanced fabrics that have the ability to clean themselves, Dr. Ramanathan said. The tiny metal particles don’t change the look or feel of the fabric. They also stay on the surface of the garment even when it is rinsed in water, meaning they can be used over and over on new grime, he said.

For the full story, see:
RACHEL PANNETT. “An End to Laundry? The Promise of Self-Cleaning Fabric.” The Wall Street Journal (Tues., April 26, 2016): D3.
(Note: the online version of the story has the date April 25, 2016.)

The academic article describing the self-cleaning fabric, is:
Anderson, Samuel R., Mahsa Mohammadtaheri, Dipesh Kumar, Anthony P. O’Mullane, Matthew R. Field, Rajesh Ramanathan, and Vipul Bansal. “Robust Nanostructured Silver and Copper Fabrics with Localized Surface Plasmon Resonance Property for Effective Visible Light Induced Reductive Catalysis.” Advanced Materials Interfaces 3, no. 6 (2016): 1-8.

“The Powers of a Man’s Mind Are Directly Proportioned to the Quantity of Coffee He Drinks”

(p. C9) . . . certain aspects of 18th-century Parisian life diluted the importance of sight. This was, after all, a time before widespread street lighting, and, as such, activities in markets (notably Les Halles) were guided as much by sound and touch as by eyes that struggled in the near dark conditions. Natural light governed the lives of working people, principally because candles were expensive. Night workers–such as baker boys known as “bats,” who worked in cheerless basements–learned to rely on their other senses, most notably touch.
. . .
“For Enlightenment consumers, a delicious food or beverage had more than just the power of giving a person pleasure,” writes Ms. Purnell; taste, it was held, could influence personality, emotions and intelligence. Take coffee, “the triumphant beverage of the Age of Enlightenm ent.” Considered a “sober liquor,” it stimulated creativity without courting the prospect of drunkenness. Sir James Mackintosh, the Scottish philosopher, believed that “the powers of a man’s mind are directly proportioned to the quantity of coffee he drinks.” Voltaire agreed and supposedly quaffed 40 cups of it every day. Taste was also gendered: Coffee was deemed too strong for women; drinking chocolate was thought more suitable.

For the full review, see:
MARK SMITH. “The Stench of Progress.” The Wall Street Journal (Sat., MARCH 11, 2017): C9.
(Note: ellipses added.)
(Note: the online version of the story has the date MARCH 10, 2017.)

The book under review, is:
Purnell, Carolyn. The Sensational Past: How the Enlightenment Changed the Way We Use Our Senses. New York: W. W. Norton & Company, 2017.

“Slow Is Smooth and Smooth Is Fast”

(p. B2) WASHINGTON — Jeff Bezos, the billionaire chief executive of Amazon, founded a rocket company as a hobby 16 years ago. Now that company, Blue Origin, finally has its first paying customer as it ramps up to become a full-fledged business.
Mr. Bezos announced that customer, the satellite television provider Eutelsat, on Tuesday. In about five years, Eutelsat, which is based in Paris, will strap one of its satellites to a new Blue Origin rocket to be delivered to space, a process it has done dozens of times with other space partners.
. . .
Blue Origin’s deal with Eutelsat is a “definite statement to the industry that Blue Origin will be a viable commercial launch vehicle,” said Carissa Bryce Christensen, the chief executive of Bryce Space and Technology, a consulting firm.
. . .
Mr. Bezos “is investing because he wants to transform people’s lives with space capabilities, but the expectation has always been that this will be a successful business,” Ms. Christensen said.
. . .
Mr. Bezos said he was approaching his space project with an abundance of patience.
“I like to do things incrementally,” he said, noting that Blue Origin’s mascot is a tortoise. With such high costs and risks with each rocket launch, it is important not to skip steps, he said.
“Slow is smooth and smooth is fast,” said Mr. Bezos, who also owns The Washington Post and a clock that will keep time for 10,000 years. “I’ve seen this in every endeavor I’ve been in.”

For the full story, see:
CECILIA KANG. “Blue Origin, Bezos’s Moon Shot, Gets First Paying Customer.” The New York Times (Weds., March 8, 2017): B2.
(Note: ellipses added.)
(Note: the online version of the story has the date March 7, 2017, and has the title “Blue Origin, Jeff Bezos’s Moon Shot, Gets First Paying Customer.”)

Panopticon: “Bentham’s Most Infamous Idea”

(p. C6) Perhaps the most fascinating chapter of the book, highlighting Mr. Crawford’s ability to mix philosophy and reporting, is the one about the panopticon. The idea of an annular building with a central observation tower was conceived by the philosopher Jeremy Bentham (1748-1832). The utilitarian is known most superficially by students of and visitors to University College, London, as the eccentric who willed that, after his death, his body be preserved seated on a chair in a glass case.
Mr. Crawford fleshes out the story, noting that, in fact, the smartly dressed Bentham figure that sits inside a glass display case today is actually a skeleton of the man, his head a wax replica of the real one that did not survive the preservation process. When I was a regular at University College one summer, I was told that the cabinet holding the “Auto-Icon” (Bentham’s term) was rolled over to the lecture hall on occasion, something that I don’t recall witnessing.
The author’s real purpose in discussing Bentham’s most infamous idea is to describe the utopian–or dystopian, depending upon one’s point of view–concept. In one embodiment, it took the form of a rimless wagon wheel, in which someone situated at the hub could oversee activities in all directions, making the layout ideal for insuring that workers in a factory did not take more breaks than allowed, inmates did not misbehave in a prison or students did not cheat on an exam.
Bentham’s insight was that the mere fact that those being observed knew that they were being watched would cause them to alter their behavior for the better. Could Bentham have imagined that his idea would form the foundation of our surveillance society? Looking at our culture today–with its CCTV, smartphones and so on–to some it surely seems that we live in a permanent panopticon. “All this,” Mr. Crawford writes, “from a ‘simple idea in architecture.’ “

For the full review, see:
HENRY PETROSKI. “What Goes Up.” The Wall Street Journal (Sat., MARCH 11, 2017): C6.
(Note: ellipses added.)
(Note: the online version of the story has the date MARCH 10, 2017, and has the title “The Lives and Deaths of History’s Greatest Buildings.”)

The book under review, is:
Crawford, James. Fallen Glory: The Lives and Deaths of History’s Greatest Buildings. New York: Picador, 2017.

Category: Economics