Scott Alexander on what passes for socialism these days

Scott Alexander

Most of the policies being mooted by the supposedly socialist left today – Medicare-for-all, better social safety nets, et cetera – are well within the bounds of neoliberalism – ie private property and capitalist economies should exist, but the state should help poor people. “Socialism” should be reserved for systems that end private property and nationalize practically everything. I’m worried that people will use the success of neoliberal systems in eg Sweden to justify socialism, and then, socialism having been justified, promote actual-dictionary-definition socialism. To a first approximation, Sweden is an example of capitalists proving socialism isn’t necessary; Venezuela is an example of socialism actually happening.

Louisa Lim on elite turnover 68 years after the Chinese revolution

Louisa Lim

Research by the University of Sydney’s David Goodman has found that around 84% of today’s elite are direct descendants of the elite from pre-1949. This suggests that six decades of Communism may not have a dramatic impact upon the elites, who have the advantage of decades of capital accumulation — including economic, cultural and social capital — which have apparently continued to benefit them under the party-state system…

Matt Ridley on socialism  

Matt Ridley

Remember that we have run two very careful randomised controlled trials to see if full-blown socialism or half-hearted free enterprise works better. One in the Korean peninsula, the other in Germany. And the results were unambiguous. Socialism was a humanitarian catastrophe.

Communism was not really a new or radical idea, even in 1917. It was simply a clever repackaging of the old, old story that the king knows best. That the state should decide how to plan and run society. It matters not whether his name is Rameses or Augustus or Suleiman or Henry or Napoleon or Adolf or Vladimir or Josef or Mao or Fidel or Kim or Hugo. It’s the same recipe…

Is it not bizarre, after the 20th century, that people are so forgiving of the state and so mistrustful of the market?…

Chief Justice Roberts on learning life lessons

John Roberts

Now the commencement speakers will typically also wish you good luck and extend good wishes to you. I will not do that, and I’ll tell you why. From time to time in the years to come, I hope you will be treated unfairly, so that you will come to know the value of justice. I hope that you will suffer betrayal because that will teach you the importance of loyalty. Sorry to say, but I hope you will be lonely from time to time so that you don’t take friends for granted. I wish you bad luck, again, from time to time so that you will be conscious of the role of chance in life and understand that your success is not completely deserved and that the failure of others is not completely deserved either. And when you lose, as you will from time to time, I hope every now and then, your opponent will gloat over your failure. It is a way for you to understand the importance of sportsmanship. I hope you’ll be ignored so you know the importance of listening to others, and I hope you will have just enough pain to learn compassion. Whether I wish these things or not, they’re going to happen. And whether you benefit from them or not will depend upon your ability to see the message in your misfortunes.

Timothy Taylor and Joe Louis on how to fix what’s wrong with America

Timothy Taylor

There’s an old story about when heavyweight boxing champion Joe Louis decided to enlist in the U.S. Army in 1942. A friend of his objected, and said: “It’s a white man’s Army, Joe, not a black man’s Army.” But Joe Louis had observed the Nazi propaganda machine close up, as the result of his two epic fights against the German Max Schmeling (who was not a Nazi, but whom the Nazis attempted to exploit). So Louis told his friend: “Lots of things wrong with America, but Hitler ain’t going to fix them.”

In that spirit, I’d say lots of things are wrong with America, but often, the best answers for what’s wrong with America are a bigger dose of what’s right with America…

More on whether state disinvestment is causing rising tuition

The Times Higher Education (UK) ran a short piece based off this recent post. From the Times Higher Education piece:

over the past 26 years, average real state funding per student has fallen by $780, while tuition revenue has increased by more than $3,500. This means that cuts in state funding can only explain about 22 per cent of the increase in tuition over the past quarter century.

But there is a second empirical problem… when you plot tuition rises against changes in state funding, for every year since 1992, a $1 change in state funding per student is rarely associated with a $1 increase in tuition…

 

 

When looking at the past quarter century, on average, a $1 change in state funding is associated with only an $0.08 change in tuition…

Check out the full piece here.

The Supreme Court Ends Patent Troll Friendly Forum Shopping

Walter Olson reports:

This morning’s Supreme Court opinion in TC Heartland v. Kraft Foods… A unanimous Court (8-0, Thomas writing, Gorsuch not participating) rejected the broad reading of a venue statute by which the Federal Circuit had empowered lawyers to forum-shop disputes from all over the country into a few decidedly pro-plaintiff venues, above all the largely rural Eastern District of Texas. From here out, defendants can still be sued in a district such as E.D. Tex. if they have a regular and established place of business in it, but the decision is likely to shrink what I called in my January preview a “jackpot patent litigation sector… that shifts around billions of dollars.” By redirecting cases into more neutral venues, it should bring outcomes closer to reflecting cases’ actual merits, which would in turn do much toward restoring confidence in this sector of the law…

New Record High Revenue per Student for Public Colleges in Fiscal Year 2016

Reanalysis of SHEEO data reveal that public college revenue per student reached a new record high for the second year in a row. For the most recent year (fiscal year 2016), revenues increased by $140 to set the new record of $13,259.

(Previous posts describe why reanalysis of SHEEO data is necessary – to adjust for inflation rather than costs.)

Three points stand out from this reanalysis.

  1. There is a small upward trend in revenue per student at public colleges.

As the chart below shows, there is a slight upward trend in revenue per student at public colleges. Revenue in 2016, was $2,789 higher than in 1991, an average increase of $107 per year.

  1. There is no long-term trend of state disinvestment. State funding is cyclical while tuition revenue steadily increases.

The second chart unstacks the bars by revenue source which makes it easier to see two things.

First, despite numerous assertions to the contrary, there is no long-term trend of state disinvestment in higher education. While educational appropriations in 2016 were $780 less than in 1991, the pattern is driven by the business cycle rather than showing a consistent long run trend. Indeed, appropriations are up $885 from the recession low of 2012.

Second, in contrast to changes in state funding, which swing from positive to negative with the business cycle, tuition almost always increases. Only two years saw decreases in tuition revenue (2000 and 2008). In 2016, tuition revenue per student was $3,569 higher than in 1991, an average annual increase of $137.

  1. Increases in tuition are not driven by changes in state funding.

Declines in state funding are the most common explanation for why tuition keeps increasing. But as the chart below shows, there is little relationship between the two. Each year label illustrates the change in state funding and the change in tuition revenue for that year. For example, the 2012 in the upper left corner indicates that between 2011 and 2012, state funding per student fell by $645 and tuition revenue per student increased by $391.

If tuition increased to offset declines in state funding, then each of the years should fall along the red line, which simply plots a $1 for $1 relationship. But statistical analysis does not support the idea that changes in tuition are driven by changes in state funding. In fact, historically, tuition only changes by 8 cents when state funding changes by $1, as shown in the blue line, a relationship that is not even statistically significant at conventional levels (p = 0.27). A more promising avenue for exploration is hinted at by the intercept term ($140, p < 0.01), which indicates that even if there is no change in state funding, tuition revenue would still increase by $140. Figuring out what’s driving this result is more likely to yield solutions to the problem of rising tuition than continuing to believe in the myth that tuition increases are driven by cuts in state funding.

Recalling when the NYT hinted that inventor Thomas Edison should be hanged

From a 1878 New York Times editorial:

Something ought to be done to Mr. EDISON, and there is a growing conviction that it had better be done with a hemp rope. Mr. EDISON has invented too many things, and almost without exception they are things of the most deleterious character. He has been addicted to electricity for many years, and it is not very long ago that he became notorious for having… invented the phone- graph, a machine that catches the lightest whisper of conversation and stores it up, so that at any future time it can be brought out…

Thanks to Mr. Edison’s perverted ingenuity, this has not only become a literal truth, but every shelf, closet, or floor may now have its concealed phonographic ears…

 The phonograph was, at the time of its invention, the most terrible example of depraved ingenuity which the world had seen; but Mr. EDISON has since reached a still more conspicuous peak of scientific infamy by inventing the aerophone–an instrument far more devastating in its effects and fraught with the destruction of human society…

 From morning till midnight our ears will be tortured with the uproar of aerophonic talk, and deaf men will be looked upon as the favored few to whom nature has made life tolerable…

 The result will be the complete disorganization of society. Men and women will flee from civilization and seek in the silence of the forest relief from the roar of count- less aerophones. Business, marriage, and all social amusements will be thrown aside, except by totally deaf men, and America will retrogade to the Stone Age with frightful rapidity... Far better is it to starve in solitude than to possess all the luxuries of civilization at the price of hearing every remark that is made within a radius of four miles…