Shipments of babies to Paris, sure, sure … wait, what? — January 12, 2014
Business confidence? How about middle-class confidence? — January 10, 2014

Business confidence? How about middle-class confidence?

I’ve thought for a while that the focus on business confidence — specially, businessmen’s purported inability to make forecasts about the future, because policies ostensibly keep changing out from under them — came at the expense of *everyone else’s* confidence. Here’s an example by the banker Bob Rubin from today, via Paul Krugman:

> The US recovery remains slow by historical standards even if recent signs of improvement are borne out. One reason is that our unsound fiscal trajectory undermines business confidence, and thus job creation, by creating uncertainty about future policy and exacerbating concerns about the will of Congress to govern. Business leaders frequently cite our fiscal outlook as a deterrent to hiring and investment.

To be very specific about it: suppose you believe that you’ll lose your job tomorrow. That’s going to change your behavior today, isn’t it? It’s going to cause you to save a lot of money in the bank(assuming you have money to save), rather than spend it. In a world without universal health insurance, fear of job loss might, for instance, make you head to the hospital and the dentist’s office for all the checkups you’ve been avoiding.

I’ve not put together the economic model, but I could easily see a story under which the effects of consumer uncertainty dwarf the effects of business uncertainty. Businesses, owing to their economies of scale, can prepare for policy uncertainty more easily than I can prepare for unemployment. Really large businesses can engage in hedging schemes, wherein they’re protected from rises and falls in interest rates, for instance. I cannot so easily prepare for the loss of my job. And in an environment of high involuntary unemployment, employers have an advantage over me: they have more people waiting in line for every job opening. So my uncertainty over the future, and my ability to hedge against downturns, would seem to get worse during recessions.

But now imagine that there’s a strong social-safety net, such that, whatever else happens, you’re going to be able to get medical care even if you’re unemployed. Imagine that unemployment insurance is so strong that you breathe a little more easily and sleep a little more soundly at night. (For that matter, imagine that everyone gets a guaranteed minimum income.)

Imagine a safety net so strong that you could consider starting a new business without fear that you would impoverish your family.

Imagine that your kids’ school offered them free lunch, regardless of their income level (thereby removing the stigma of poor kids receiving free lunch), 365 days a year; that would remove the uncertainty over whether they’d be fed; in turn this would, it’s fairly easy to imagine, reduce your fear and increase your freedom of action.

Imagine that, no matter which neighborhood you lived in, you could live free of fear that your kids would be hit by stray bullets, and you could send them to whichever school was best for them (in Boston, you could live in Roxbury and send your kids to school in Brookline). You could choose to live anywhere in this world without fear. That would remove some more uncertainty from your life.

My strong suspicion is that Bob Rubin doesn’t care about these things, because he doesn’t have to. Bob Rubin’s class cares about interest rates far more than it cares about involuntary mass unemployment. Bob Rubin’s class lives in neighborhoods without fear. Bob Rubin’s class has the spare money to start new businesses without fear of their failing. The only sort of uncertainty that Bob Rubin’s class cares about is the uncertainty in interest rates.

Let’s aim for a society where the bulk of middle-class people both a) understand the real sources of uncertainty and b) don’t come to identify our needs with those of the bankers. Their needs are not ours. Their fears are not ours.

French Revolution reading plan — January 5, 2014

French Revolution reading plan

I read Hobsbawm‘s “long nineteenth century” series years ago, but I probably wasn’t ready for it. And it’s very British, in the sense that it just sort of ambles around for a while; I’m sure it has a plan, and I’m sure that someone who came at it with a different background would get more out of it than I did. Other very British works, like [book: The Victorians] (a gift to me, on the occasion of my 30th birthday, by the sadly departed Dan Weinreb), or Gellner’s astonishing [book: Nations and Nationalism], work great, so I don’t know what my problem with Hobsbawm was.

Anyway, so I picked up Carlyle on the French Revolution the other day and made it literally one page before realizing that this was not the book for me. Whereupon I turned to Google.

So now on the list:

* [book: The Oxford History of the French Revolution] by William Doyle. It backs up a few steps and should, if I chose wisely, give me Just The Facts, Ma’am. I’m in the middle of it now. It’s very good so far. I’m up to Jacques Necker.
* [book: Twelve Who Ruled], recommended effusively by Lynn Hunt:

Palmers [book: Twelve Who Ruled] is my single most favourite book on the French Revolution. He does precisely what I was just talking about. He doesnt do it for the tens of thousands Im more interested in the tens and the hundreds of thousands but for the 12 who ruled. Hes incredibly good at giving you a sense of what these people are confronted with, the incredible difficulty of their situation and the unbelievable stress of the circumstances they find themselves in. Hes just fantastic at recreating that atmosphere and, as a result, forcing you to sympathise with these men. His position is much closer to my own position. He sees this as trying to do something really important, coming up against enormous obstacles in the course of trying to do it, failing, but completely understanding why this would happen in this particular way.

* [book: France, 1789-1815: Revolution and Counterrevolution], recommended in the bibliography at the end of Doyle’s book.
* Alexis de Tocqueville, [book: The Old Regime and the French Revolution].
* Edmund Burke, [book: Reflections on the Revolution in France].

This should help me understand the period up to the Congress of Vienna (covered so ably in Kissinger). It’s not much of a jump from there to Bismarck — such a short jump, in fact, that I may know everything I need. And I’ve got there to World War I covered. Then maybe I’ll be able to re-digest Hobsbawm and Gellner as thoroughly as they deserve. And I dunno, maybe Hegel and Kant would fit well into this reading plan. Unsure. Check back later.

Vacation reading, 2013-12 — January 3, 2014

Vacation reading, 2013-12

(__Attention conservation notice__: 3600-some words on the four books I read over Christmas and New Years. A lot of it is my processing and synthesizing my understanding of the runup to World War I. Valuable for *me*, anyway.)

Not a bad run: four books from December 21 to December 31. My total for 2013 was 30 books, which is quite a bit south of where I want to be. Alas.

__Albert Hirschman, [book: The Rhetoric of Reaction: Perversity, Futility, Jeopardy]__

You really need to read Hirschman. This is the third of his books that I’ve read, after [book: Exit, Voice, and Loyalty: Responses to Decline in Firms, Organizations, and States] and [book: The Passions and the Interests: Political Arguments for Capitalism before Its Triumph]. I’ve also read Jeremy Adelman’s biography of Hirschman. The man really is worthy of a biography. Apart from a legendarily eclectic academic career, he saved thousands of people from the Nazis and much besides. Again, I’m way behind on reviews; suffice to say in the meantime that Adelman’s book is well worth a read, because Hirschman’s life is fascinating.

The Hirschman method, based on the few books of his that I’ve read, is deceptively simple, but it’s all about the execution. In writing [book: Exit, Voice, and Loyalty], he considered some typical reactions to a failing institution — think about your local public school, or your favorite mobile-device manufacturer. The reactions are to abandon the failing institution (e.g., send your kids to a private school instead, or use an iPhone), which he calls “exit”; or to stick around and try to change it (lobby the public school to better educate its students, send lots of letters to the CEO explaining that their phones are behind the times). “Loyalty” is really sort of a turbocharger for voice: it’s an extra bit of stickiness that might make you exercise your voice more.

Even on their own, these little concepts are tremendously useful and clarifying; humans respond to a great many situations through exit and voice. Yet the concepts are small-scale and non-vacuous enough that you really can say meaningful things about them, rather than just gesticulating vaguely in their direction.

*But there’s more!* Hirschman really turns on the magic when he shows how these three pieces interact with one another. Again, let’s focus on the example of a failing public school. If private schools are encouraged, you can exit from the public school freely. You might, then, be willing to use your voice less. In particular, the people who care most about their kids’ educations — the ones who would otherwise be using their voice — may be the first to exit, leaving behind only the less-interested parents, thereby accelerating the school’s decline. So exit can weaken voice.

Flesh out these concepts, apply them to a mass of interesting situations, do it with shockingly brief writing that nonetheless manages to say a lot, do some formal mathematical modeling in the appendix, and pack the whole thing into 176 pages. That’s [book: Exit, Voice, and Loyalty]. It’s breathtaking.

But that’s not important right now! We were talking about [book: The Rhetoric of Reaction]. I’m angry that you distracted me from my point.

The same series of tricks applies here. Again, we have three components. This time, the question is how reactionaries respond, in their rhetoric, to any kind of social change. Hirschman is at pains to be clear that he’s not looking down on reactionaries; he’s merely trying to understand their responses to the world. He’s pretty clearly read more people reacting to social change than you and I have; I imagine the man heading off to the library for months and years, reading, studying, synthesizing, processing, and abstracting. At the end of all that, he picked three classic responses to social change:

* __Perversity__: You think you’re going to improve x, but in fact the change you envision is going do achieve exactly the opposite of what you intend: it’s going to make x worse.

* __Futility__: The real structure of the world underlying the thing you’re trying to change is absolutely immobile. You think you’re toppling the ruling class, say, but they will always manage to stay on top. Real social change is impossible.

* __Jeopardy__: Trying to change the thing you’re trying to change is going to make something else — something that we care about just as much — worse.

Again, on their own these are really powerful concepts. They help put a large class of conservative argument into focus. From there, they can be studied with greater clarity. Futility is an interesting one, which can be used by both the left and the right. The left says, “Yes, the ruling class will continue to pull the levers, so at worst our attempts to overthrow it will be fruitless; but try we must.” The right says the opposite: that the ruling class will continue to pull the levers, so why bother?

Here’s Hirschman, in a delightfully arch way, addressing the simultaneous complaints that a) means-tested welfare programs don’t actually reach the people they’re supposed to reach (the money goes to the middle class instead, or to the bureaucrats who provide social services), and b) that those same programs encourage a life of indolence:

> It requires special gifts of sophistry to argue at one and the same time that welfare payments have those highly advertised perverse effects on the behavior pattern of the poor *and* that they do not reach these same poor.

It’s hard to convey, without reading the book in its entirety, just how effortless Hirschman makes all of this. His book is both dense with historical evidence dating back to the French Revolution (which, I gather, is the time when the Western world first learned about “revolution” in its modern sense *and* thereby created reactionaries like Edmund Burke), rich in style, and somehow light as a feather. He reminds me very much of Quine:

> He calls to mind […] one of the exceedingly refined diners at those [formal] suppers, for whom the proper use of the fish-knife is automatic, second nature and almost first; for one of the qualities of Quine’s writing is that he makes everything, not least his minute clarity and precision, seem easy, obvious and spontaneous.

Just like [book: Exit, Voice, and Loyalty], [book: The Rhetoric of Reaction] is short: just 224 fairly large-print pages. It’s absolutely worth the few hours it will take you to read.

One final note: Hirschman entered this project as he watched, seemingly with great dismay, the polarization of the American political debate, whereby *my* political beliefs are reasoned, rational responses to empirical truth, while *yours* are mere visceral mutterings. By its end, he found just as much rhetorical incoherence in liberals’ positions as in conservatives’, and this wasn’t just a search for pox-on-both-your-houses David Brooks balance; there really are certain tried-and-true liberal rhetorical devices which share just as unreliable a connection to the facts as conservative ones. For instance, there’s the “if we don’t do this now, then far worse consequences will come later” trope. And there’s the slippery-slope argument, of course, which is maybe the flip side of the previous one: if we do this now, then we open the door for far worse possibilities later on.

The thing to note about rhetorical devices generally is that they needn’t bear any connection to the actual truth of the matter. Indeed, the wide variety of contexts in which they’re called into battle suggests that they’re used more often than when the facts alone would call for.

Hirschman’s main achievement, then, may be that he helps us recognize when something that looks like an empirical or logical claim is merely a rhetorical one.

__Corey Robin, [book: The Reactionary Mind: Conservatism from Edmund Burke to Sarah Palin]__

I read this directly after Hirschman, and I’m glad I did. First, there’s something to Hirschman’s balance and humanity that is missing in Robin’s book, which I might not have noticed had I not read Hirschman first. Second, there’s a concision to Hirschman that isn’t there in Robin.

Robin’s basic aim is to show that, from Edmund Burke to now, conservatism has basically been about two things: 1) keeping the rabble in line, and 2) violence as a creative spark — war as an essential element in maintaining a dynamic society.

This work makes me uncomfortable in a few ways. First, these may be accurate synopses of what important conservatives have thought over time, but it’s really not clear to me that this is what animates conservatism-as-she-is-lived today. Walk up to a Republican friend of yours and ask him or her why he or she is conservative. I doubt the answer you’ll get is that he or she wants to claw back some of the freedoms that the poor and disfranchised have gained — at the expense of the privileged — over the last 200 years. I also doubt you’ll hear this notional Republican explain that he or she voted for Mitt Romney because Romney promised more wars.

There are at least a couple reasons why this objection might be irrelevant. Maybe conservatives believe these things without articulating them. Maybe the actions of conservative voters betray these underlying motives, even when their words do not. These are both possible, but Robin doesn’t consider them. Robin doesn’t really consider the experience of lived conservatism.

My conservative friends — and even friends who wouldn’t outright identify themselves as conservatives but have conservative leanings — tend to be conservative, not because they feel like the lower classes deserve to be crushed, but rather because they feel that the liberal alternative of greater government intervention is a non-starter. They believe that government is likely to be in the pockets of those it’s supposed to be regulating; that government wastes taxpayer’s money; and that market competition is a better alternative to government monopolies. For starters.

Mind you, I have retorts to all of these. And I have retorts to all of these, specifically, when we get down to specific topics like health insurance or retirement security. Conservatives have surreplies to the retorts. And so goes the debate.

Granted, I also know conservatives who have stated explicitly that they were going to vote against Obama because he was going to raise their taxes. This is less a “debate … within a shared objective function” than is the peaceful discussion about Social Security and Medicare that I outlined above. Robin is on surer ground against these folks: it’s pretty straightforwardly about keeping something to yourself that you don’t want someone poorer than you to get. Or, again, you could just want the government not to take your tax money because you think you can do something better with it than the government can.

My point is just that, when you come face to face with actual conservative ideas, the “screw the working class and start wars” argument seems like a Procrustean bed for lived conservatism. It’s just hard for me to buy it.

I’d also have a hard time if the conservative equivalent of Corey Robin wrote a book claiming that liberalism, all throughout its history, has preferred rational theory to lived experience (which is a rough outline of how conservatives viewed the French Revolution, and viewed Thomas Jefferson), and would prefer to centralize everything under a wise, all-knowing state. Maybe that’s been true of certain thinkers, but that’s not at all why I consider myself a liberal. I would more or less immediately stop reading any book that described me in that way; its violations of realism would call the rest of it into question.

The best Robin could try to claim is that when Republicans argue for lower taxes, they’re actually just disguising their real intentions. Paging Lee Atwater:

> “You start out in 1954 by saying, ‘Nigger, nigger, nigger.’ By 1968 you can’t say ‘nigger’ — that hurts you. Backfires. So you say stuff like forced busing, states’ rights and all that stuff. You’re getting so abstract now [that] you’re talking about cutting taxes, and all these things you’re talking about are totally economic things and a byproduct of them is [that] blacks get hurt worse than whites.
>
> “And subconsciously maybe that is part of it. I’m not saying that. But I’m saying that if it is getting that abstract, and that coded, that we are doing away with the racial problem one way or the other. You follow me — because obviously sitting around saying, ‘We want to cut this,’ is much more abstract than even the busing thing, and a hell of a lot more abstract than ‘Nigger, nigger.'”

Another way to put this is that, whatever their *intentions*, their actual policies have the inevitable consequence of screwing the poor and starting wars. And maybe the Republican voter is being hoodwinked into voting for policies that he doesn’t actually want (or which actively undermine his own interests). I would enjoy a book about this premise quite a lot. It would get me closer to an understanding of my fellow-citizens. Robin’s book, sadly, does not do this.

The “conservatives believe in violence” argument is interesting, even if you replace “conservatives” with “people”. The basic gist is that conservatives believe a technocratic, rationally managed society whose GDP curves always bend gently upward is boring. Societal greatness comes through acts of boldness, through fighting, and through conquest. Hence, in particular, conservatives’ support for the free market, and their love of foreign domination. Again, it’s hard for me to believe that my conservative friends would accept this as an accurate description of why they, for instance, supported the Iraq War. That’s not why George Packer did. They were driven by genuine humanitarian impulses — that Hussein was a bad dude. (Let’s not get started down the “but there are lots of other bad dudes” road; that’s not an actual argument.)

There’s something to this: Americans (and Germans; see the Pflanze review below) do seem to love war, regardless of their political leanings. They dutifully get in line behind their leaders whenever we pick the latest poor little country to blow up. And we certainly do venerate the bold business conquistador.

To back out a step, I think the positive way to frame this — rather than the negative way that Robin frames it — is that we liberals need a living, breathing, bold, energizing ideology for the 21st century; that Keynesian technocratic demand management combined with a strong welfare state probably lacks the vigor necessary to inspire greatness in Americans; and that, in the absence of a compelling ideology, people will succumb to the allure of violence, xenophobia, and selfishness. If this argument itself wasn’t in Packer’s [book: Blood of the Liberals], it could easily find a home there.

So I think I’d be happier with Robin’s book if it were less about What Conservatives Really Think, Deep In Their Brainstems, than if it were about a liberalism that could inspire. I’m pretty sure Robin does have such ideas in him; they probably involve organizing labor and helping out the world’s marginalized. I’d be proud to read such a book; it would help me produce the world I want, in which we all believe that we’re part of a community. I’m less proud to read [book: The Reactionary Mind].

__Otto Pflanze, [book: Bismarck and the Development of Germany, Vol. 1: The Period of Unification, 1815-1871] and [book: Vol. 2: The Period of Consolidation, 1871-1880]__

I think my obsession with Bismarck started when I realized, a couple years ago, that the modern welfare state began under him in the late 1800s. How did Germany manage to create what took the U.S. either half a century or a century-plus to implement? Long story short: I haven’t yet come to a solid understanding of the answer. But Bismarck himself is fascinating, so it’s okay.

Otto Pflanze’s three-volume work is, very clearly, the canonical work on Bismarck. That would be obvious even if I had never read another Bismarck work, just as Caro’s four-volume LBJ series will very clearly never be surpassed in its sphere. (As it happens, I have read another work on Bismarck, namely Steinberg’s one-volume bio, which is more psychological study than Pflanze’s. There’s important overlap, which I’ll try to get to.)

Very, very long story short: Bismarck unified the German states in 1870 into what we now call Germany. I wouldn’t have understood the magnitude of that achievement if it weren’t for Pflanze. For one thing, I was not aware that the south of Germany is quite distinct from the north. The south was more Catholic, the north more Protestant; the south was more agricultural, the north more industrial. The south includes Bavaria; the north includes Prussia. How Bismarck fused these disparate states into the nation we know today consumes the first, gripping volume of Pflanze’s work.

The very short answer is: nationalism. Bismarck’s interests were essentially those of the absolutist Junker power structure, and he spent his entire career defending those interests in the face of an industrializing, democratizing, nationalizing world. His central challenge was to harness the forces of the modern world against one another to achieve a unified Reich. He used liberals’ patriotism and nationalism first to defeat Austria and defeat dreams of a wider union between Germany and Austria (“great Germany”); then acquired Schleswig-Holstein in its entirety from Denmark without dividing the territory in half; and finally turned German nationalism outward toward France, in the Franco-Prussian War, in 1870 and 1871, to effect the final union of German states.

This is something I only recently realized: the Franco-Prussian War is really, really important:

First, it gave us Germany as we know it today.

Second, German seizure of Alsace-Lorraine during that war was a continuing thorn in the French side.

Third, that seizure of Alsace-Lorraine contained some of the first serious notions of the German [foreign: Volk]: that even though Alsatians identified as French, Germans (initially not including Bismarck, it seems) believed that it was part of a broader Germany which had to be reunited with the fatherland.

Fourth, German atrocities — particularly during the siege of Paris — left France with a burning hatred of Germany. This hatred seemed to be personified in Raymond Poincaré, just in time for World War I. (Though of course it’s possible that any French statesman, given this context, would have behaved the same way.)

Fifth, the war’s end made the French pay a crushing indemnity to the Germans, which seemingly has echoes in the post-WW1 treaty of Versailles, whose manifest failings were an important contributor to World War II. (Indeed, the German states named Wilhelm their emperor under the newly formed Reich at Versailles upon the war’s conclusion. Pflanze doesn’t explain exactly how this location was chosen, nor how the French felt about it, but I do wonder whether the World War I treaty was signed there as a final coda to the Franco-Prussian War.)

Sixth, the war empowered generals in dangerous ways. Bismarck had exploited Prussian respect for the military in his plans for German union, and seems thereby to have opened Pandora’s box. When the war came, the generals fought with only military ends in mind, while Bismarck raged at the strategic damage that their brutal siege had done to Germany’s international relations. This echoes loudly in David Halberstam’s [book: The Best and the Brightest], about how the U.S. military took on an autonomous power in Vietnam, with disastrous results. (You can also see it in Douglas MacArthur’s decision to invade China without support from his civilian superiors, in his grudging return to the States, in the American public’s outrage that Truman had “lost China”, in his battle before the U.S. Senate, and in the public’s eventual realization that the generals’ view of the world is narrower than that of their civilian superiors.)

So I think it’s really important that I read up on the Franco-Prussian War. That’s the very long way round to explaining one reason why it’s important that you know about Bismarck. [1]

There’s so much else to say about Pflanze. The man’s sense of balance is exquisite; never do I feel that I’m in the hands of a hagiographer. Pflanze is trying to understand, from a historian’s distance, whether Bismarck shares any part of the blame for what Friedrich Meinecke called “the German catastrophe“. At two volumes in (out of 3), I only have the beginnings of an answer. First, Bismarck established a state which, by design, only had the appearance of democracy, while it was in fact autocratic and centralized. Second, his cooptation of German nationalism left the traditional Prussian structure — a strong monarch, a Junker landowning class, and an obedient military — in place on a grander and more dangerous scale. And third, his delicate puppetry, by which he controlled every situation throughout his nearly half-century of rule, couldn’t survive his death.

The second volume is less exciting than the first. The second volume is about the humdrum, but vitally important, work of lashing nominally unified German states together so that they’d act as an empire. This involved parliamentary maneuvering that would make LBJ proud, and endless bureaucratic tinkering. No wonder Bismarck had to spend increasingly long periods taking the baths to repair his damaged nerves; the man embodied, and indeed created, the German Reich. Its problems were his problems. (Thankfully, Pflanze only spends as much time on the man’s psyche as is necessary to explain the broader problems. He’s less of a psychological historian than Steinberg.)

The second volume also discusses Bismarck’s famed [foreign: Kulturkampf], which was essentially a war against Catholics and socialists. The Catholics were in Germany’s south and in Polish parts of Germany. They didn’t go gentle into that good night. In fact they organized the Center Party. This was a long, pointless battle that took Bismarck the better part of a decade.

I can’t quite recommend that someone coming to this topic from ground zero should dive right into Pflanze, in the same way that 69 Love Songs is not the best intro to The Magnetic Fields. I’m still looking for the right one-volume work on Bismarck. But if you want the full meal, look no further than Pflanze. Your grandkids will still be reading him when they want to understand what went wrong in 20th-century Germany.

[1] – A note here about how I, at least, read and learn history. I had one block of knowledge about World War I previously, and a bit of knowledge about the post-Napoleonic world by way of Henry Kissinger. I knew the *words* “Franco-Prussian War”, but didn’t know the first thing about them. Now that I’ve got some context, it’s very easy for me to remember that the Franco-Prussian War comes at the end of the formation of the German Empire, and that it predates World War I, and that it provides important context for the latter. This is how I remember U.S. presidents, as well. Can other people remember historical facts and dates on their own, without needing to situate them within a longer story?

I realize I’m kind of ridiculous, but I still can’t convince myself to buy a Kindle — January 2, 2014

I realize I’m kind of ridiculous, but I still can’t convince myself to buy a Kindle

Reasons for and against:

For:

1. Everyone seems to love their e-reader. (I would just say “their Kindle” if there weren’t people in my life using Nooks and such.)
2. Everyone I know who has one tells me that it increases the amount they read, if only because the “you have only 30 minutes left” indicator constantly tempts them from the bottom of the page.
3. E-books obviously present lots of possibilities for note-taking and such. And I do a lot of note-taking.
4. Imagine, wild as it may sound, that you’re traveling with your partner and her family to a distant beach. Might it be nice not to burden you and your partner with 11 pounds of books? (Not a remote hypothetical. I just asked Amazon how much [book: The Reactionary Mind] and [book: The Rhetoric of Reaction] in paperback, plus the three volumes of Otto Pflanze’s Bismarck biography in hardcover, plus [book: King Leopold’s Ghost] in hardcover, plus [book: Iron Kingdom] [sensing a theme?] in hardcover, totaled, and the answer is 11.4 pounds.)
5. Variable text size is nice. I can just set the Kindle on the elliptical machine’s handlebars at work, tap the text size up appropriately, and read from a distance.

Against:

1. I am still all about beautiful books. Would the Kindle ever preserve pages this beautiful?
2. Until the Kindle can do hyphenation with justified lines, it is going to make me cringe. I don’t understand why the Kindle doesn’t yet use the Knuth and Plass algorithm, which as far as I understand it is public domain and in use by everyone, up to and including Microsoft Word.
3. I want to actually *own* the books I read, rather than have them constantly subject to Orwellian deletion.
4. Just as my kids will not know what cassette tapes are, or CDs, or DVDs, and will live in an entirely virtual world, they will also likely not know books. They will surely not understand why daddy has a 20-volume dictionary which he is always tempted to supplement, even though he spends all his dictionary time accessing the online OED through the Cambridge Public Library. And they will definitely not have the same experience daddy had, wherein he’d lay on the floor of his parents’ office, flip open to a random page in the World Book Encyclopedia, and go exploring for a little while. If they existed today, they would be using the Wikipedia, which — while it may be more accurate — is obviously no substitute for a real encyclopedia. (I use the Wiki every day, and have donated hundreds of dollars to its upkeep, but this is still obvious to me.)

So my job is to stand athwart history yelling Stop. I realize this is ridiculous. Nonetheless, here we are. I want my kids to be able to amble over to the bookshelves, see something interesting, grab it off the shelf, and give it a read. I’m inclined to buy an [book: Encyclopædia Britannica] off eBay just to have it around, and a [book: Dictionary of American Regional English], and the [book: Historical Statistics of the United States] (even while these perfect mythical children annually burn sacred incense to mourn the passing of the [book: Statistical Abstract of the United States]), and [book: Bartlett’s Familiar Quotations]. Absurd? Absolutely. Going to get progressively more absurd with the passing of time? You bet.
5. I really really *really* hate using a computer when I’m not at work. Reading e-books on my iPad would be so much not my speed that I don’t even want to discuss the prospect. Kindles are just on the boundary: closer to an Etch-a-Sketch than to an iPad, but still too close to a computer for comfort.

Having laid these out, I imagine most people are still on the Pro side. Whereas writing out this list has made me decisively Anti. I can’t be alone on this, can I?

Three humble requests for the creators of online stores — December 19, 2013

Three humble requests for the creators of online stores

1. You don’t need to ask me for *both* my city/state *and* my ZIP. The latter implies the former. We have the technology.
2. If I enter a ZIP+4, and your system isn’t equipped to handle 10-character ZIP codes, just silently drop the final four digits. Here, I’ll give you the Perl code you need: $zip =~ s#(d{5})-(d{4})#$1#; . You can thank me later. (I gather that it’s similar in PHP.)
3. Don’t tell me to leave spaces out of my credit-card number. Again, we have the technology. ($credit_card =~ s#s+##g;)
4. Just don’t create a retail website. The only company that would be allowed to create a retail website in Stevetopia would be Amazon. Maybe Google.

Corey Robin gets at what’s so annoying about Obamacare — December 10, 2013

Corey Robin gets at what’s so annoying about Obamacare

Excellent post. Just one sample:

> A version of this notion came home to me not long ago when my wifes employer announced that they were changing their healthcare coverage. It used to be that our entire familymy wife, daughter, and Iwere covered under her plan, which provided great insurance for fairly low cost. Very old school. Then the employer announced that from now on any member of the familyi.e., mewho was eligible for coverage from their employer would have to use that insurance first. But, and heres the kicker, if that insurance didnt cover some particular procedure or doctors visit, then my wifes insurance would cover it. So now, on certain procedures or visits, I have to submit two claims: one to my insurance, and then, once they refuse to provide coverage, one to my wifes insurance. And then, because we have one of those health care accounts that makes the right so giddy, I can submit a third claim to that company (in the event that my wifes insurance does not provide full coverage).
>
> One procedure, three claims, all to get what, in more mature democracies, would be mine by right. Thats some freedom.

That comes by way of Robin’s post at Crooked Timber. Like Robin, “Im not interested in arguing here over what was possible with health care reform and what wasnt; weve had that debate a thousand times.” I too would like single-payer. I too think it would just be radically simpler. You pay your taxes, you get your services. Done.

I’m feeling this lately in particular. Our insurance has decided to emphasize “consumer-directed health care,” which means “making the user of health insurance pay more attention to how much things cost.” (We’ve also been offered a new, low-premium, higher-deductible health-insurance plan, paired with a health savings account. An HSA is like a 401(k) for your medical expenses. I hate 401(k)s and love Social Security for the same reason that I hate HSAs and love Medicare.) Two things to note about this:

1. Most of us are not responsible for most of this country’s health-care costs. Getting me to buy a generic medication rather than a name-brand one is just not going to solve any problems. So when a health-insurance company tells me that it’s “consumer-directed,” that’s when I reach for my revolver.
2. There are numerous points of negotiation in the health-care system. There’s the insurer negotiating with the provider (refusing to pay for certain services, say). There’s the insurer negotiating with the health-services consumer (refusing to cover certain procedures). There’s the health-services consumer negotiating with the provider (insisting on generics, or opting for a CAT scan at a scan center rather than at a hospital). And then there’s the government interacting with all the other parties. “Consumer-directed health care,” as I understand it, only works on the provider-consumer side. I’m not convinced that there’s very much negotiation to be had there.

Health care in this country costs more because it’s more expensive. This is not a tautology. For a given unit of care, we pay more for it. You can break down costs in various ways, but basically (total health care cost) = (cost per unit) times (number of units consumed). We don’t consume more units of care; we use hospitals less, in fact. We just spend more for a given unit of care than other countries do. One very obvious way to pay less for a given service is to change the balance of power between the provider (the doctor) and the insurer. If there were only one insurer out there that paid for all of your medical services, it could strong-arm the doctors. This is not rocket science; it’s how Wal-Mart offers low prices. It’s how Medicare offers low prices.

So whose problems is the insurance company solving when it makes me negotiate more with my doctor? It’s not solving the health system’s problem as a whole. It’s not likely to lower my prices. [foreign: A priori], my assumption is just that this is a disguised way for the insurer to make more money, by covering a smaller fraction of my costs with Obamacare’s blessing and with a friendly pat on the back while they tell me I’m on my own. If we had perfect price transparency, then maybe our negotiating power would have some teeth. And maybe Obamacare has some innovations to push in that direction; it certainly is filled with experiments that may really pay off. And Medicare is putting price data for individual providers up on the web. It’s not consumer-friendly at the moment, but it’s a start. With that sort of transparency, maybe we could actually make some use of “consumer-directed health care.” Even then, I’d still prefer that someone else — someone who spends all his or her time working to get good deals on health care — do this for me. Someone like my employer, say. But then, why would my employer want to do this? My employer is good at building software; there’s no reason to expect that it’s any good at judging which tests the doctor should give me. Let’s centralize the bargaining.

Incidentally, I’m also convinced that, within my employer, everyone is going to end up on bronze plans, or what would be called bronze plans if we were buying them through the exchanges rather than through our employers. Imagine that you have a choice between a high-deductible, low-premium plan and a low-deductible, high-premium plan. People who believe that they’re not going to need much health care (the young, the healthy) will opt for the high-deductible plan. Those who are more worried about their health will opt for the low-deductible one. This will lead to something that looks a lot like the classic adverse-selection death spiral: since the high-deductible plan is getting the healthy people, the low-deductible plan will have higher costs this time next year, which means it’ll have to raise its premiums. But then more people (now a somewhat sicker group) will rationally decide that the low-deductible plan doesn’t make financial sense for them, and will opt for the high-deductible plan. And so on.

I don’t know how much of this was planned ahead of time, but it seems perfectly obvious now. The cynical but, I’m afraid, probably correct take on it is that we now have two choices:

> to be ground down a bit at a time by technocrats who either wont admit to or do not understand the ultimate consequences of the policy infrastructures they so busily construct or to be demolished by fundamentalists who want to dissolve the modern nation-state into a panoptic enforcer of their privileged morality, a massive security and military colossus and an enfeebled social actor that occasionally says nice things about how it would be nice if no one died from tainted food and everyone had a chance to get an education but hey, thats why you have lawyers and businesses.

The McDonald’s coffee case — December 8, 2013

The McDonald’s coffee case

The [newspaper: New York Times] returns to the famous McDonald’s coffee case, and explains why it’s been massively misunderstood. The trouble is that, as a self-contained argument, I don’t find this [newspaper: Times] redux all that convincing, either. Let me put a few words of preface here:

1. As a general matter, I will almost always defer to juries. I will *certainly* defer to them when it’s a choice between deferring to them and deferring to the public rumor mill. Whom do you trust more: a group of people who have sat before the evidence for seven days, then spent four hours arguing over the verdict, or people like you or me who only know what we read in the papers?

So it says a lot to me that the McDonald’s jury ruled unanimously in Ms. Liebeck’s favor. On that basis alone, I would defer to them and question my own ability to infer that this was “a runaway jury” or what have you.
2. This case seems to have turned into a shibboleth for liberals, just as much as for conservatives. If you suggest that *as an argument*, you’re not convinced that McDonald’s did anything wrong, you are immediately put in the bucket with *those* people — the people who believe that corporations are people, say. The same thing has happened with abortion: claim for a moment that you have any ethical troubles with it, but that *even still* it must remain legal, and you’re immediately in a bucket with the bad guys over there who probably want women to go back to coat-hanger abortions in back alleys. It happens all over the place in American culture. I don’t know if that’s at all new, but in any case: we’re dichotomized even when there is obvious territory for agreement.

Let me be clear, then, about my ideological priors. When it comes to a choice between a corporation and an individual, I err on the side of the individual — just as, when it comes to a fight between labor and management, I err on the side of labor.

My claim here is simply that, *on the basis of that video*, viewed on its own as an argument, I am not convinced that Ms. Liebeck deserved a large monetary reward. Maybe the way to approach this is to abstract away from the issue of McDonald’s; that company’s presence in the argument is going to pull in all kinds of other heated beliefs. So suppose you come over to my house and I make you a cup of coffee. [1] I heat up the water in my Cuisinart kettle. Here’s what the kettle’s temperature-control panel says:

160-degree water for 'delicate' beverages, 175 for green tea, 185 for white, 190 for oolong, 200 for French press, 'boil' for black tea.

I make all my coffee these days in a French press, so I follow Cuisinart’s instructions –helpfully laid out on the button — and use 200-degree Fahrenheit water. Or maybe I follow George Orwell’s advice — consistent with the black-tea button on the Cuisinart kettle — and I ensure that “The water should be actually boiling at the moment of impact, which means that one should keep it on the flame while one pours”. So the first thing to note, in contrast to the video: it’s not at all clear that very hot water — indeed, water even hotter than what McDonald’s used — is uncommon. [2]

So suppose I make you a cup of coffee using very hot water, you accidentally spill it in your lap, you get third-degree burns, you go to the hospital, they charge you $10,000, you’re there for a week, and I offer you an insultingly low amount of money to cover your costs. Am I now liable for your injuries?

I can see a good argument that abstracting away from McDonald’s actually loses a valuable piece of information here. If *I* pay a lot of money to make you whole, the court will not have made life better for a large number of people; it will have made life better only for the small number of people for whom I make coffee. Whereas if McDonald’s lowers the temperature of its coffee, the evidence laid out in the video says that that would save hundreds of people pain and suffering.

So instead, perhaps you should be suing Cuisinart: if they lower their recommended water temperature for coffee and tea, perhaps thousands of people will be made better off. Do you think that Cuisinart deserves to be sued here? Do I deserve to be sued?

Or maybe the callousness of my response is more the issue than the coffee as such. Had I offered you the full $10,000 to pay off your medical bill, along with money to compensate you for the time you spent away from work and so forth, maybe that would have solved it. Is it mostly the callousness of the response that inspired such a large award from the McDonald’s jury?

On a society-wide level, I wonder if this would be handled better or worse by insurers. McDonald’s would carry liability insurance, and everyone would carry health insurance. If people spilled coffee on themselves and incurred medical expenses, the health insurer would try to make itself whole for the hundreds of burn cases it had paid for; to do so, it might raise premiums on everyone, or it might choose to sue McDonald’s liability insurer. I’m really not sure whether this would be better or worse: would the health insurer not do enough to inflict punitive damages, or damages for pain and suffering, on McDonald’s? Or would the damages it chose to pursue be in some sense optimal?

Gentle reader: am I missing any obvious parts of this case? Am I giving short shrift to any important parts of the argument from the video? If I am, I’d love to hear it.

__P.S.__: I recall reading somewhere that Milton Friedman believed tort law, and tort lawyers, were the saviors of capitalism. As a general rule, my sense is that libertarians and anarcho-capitalists are fans of the common law over statutory law, because the former is much “closer to the action” than the latter. And in particular, an idealized anarcho-capitalist — one who isn’t just working for the czar — is going to allow the distributed intelligence of the market economy work its magic: if we’re going to neuter the regulators, we’re going to empower the juries. So it makes a lot of sense to me that a self-consistent libertarian will fight for an unlimited right to sue companies when they do something that harms the public. That is, sure, we’ll eliminate the FDA, but people will then be able to sue food companies whenever they put dangerous chemicals in their products.

I think this suffers from some realism issues, however. First, “weaken the regulators and strengthen the juries” might be sensible as a matter of theory, but it’s hard to envision that the society in which regulation is gutted is the same society in which juries are empowered. I’m curious if those two conditions have ever existed alongside one another. Second, this is of course an iterated game. First I sue you for putting chemicals in your food; next, you fight like hell to hide the ingredients in your food so that no one can know that they should sue you. And by stipulation, there’s no regulation left to step in here, so you’re not required to put ingredients on your packages, and I can’t sue you when you fail to advertise the presence of horse meat; what’s my cause of action?

So as a matter of practical living within an actual society, it’s hard to picture this libertarian paradise existing. Nonetheless: can anyone point me to a place where Friedman argues this? … Ah: here (via Krugman, via Marginal Revolution).

> ROBINSON So your view is abolish the FDA..
>
> FRIEDMAN Absolutely [ROBINSON And what comes up in its place?] what comes up? It’s in the self-interest of pharmaceutical companies not to have these bad things. Do you think the manufacturer of Thalidomide made a profit out of Thalidomide or lost? [ROBINSON I see, ok.] And you have to have..people should be responsible for harm that they do. It should’ve been possible…[ROBINSON So tort law takes care of a lot of this.] Absolutely, absolutely..

I would like to see Friedman expand more on the lawsuit side of this. I understand as a matter of theory that he’s arguing “self-interest guarantees that the right outcome will obtain.” But one needs to unpack that. “Self-interest” could mean many things. In an iterated game, perhaps you’ll produce clean food because you want me to come back tomorrow. And “self-interest encourages you to do x” means specifically that more good than harm will come from your doing x. But that’s an empirical claim, and it depends upon the structure of tort law. The fundamental theorems of welfare economics only hold if all externalities are internalized — that is, if I pay the full costs of everything bad I do, and obtain all the benefits of everything good I do. Ensuring that all externalities are internalized requires an awful lot of institutions. We can’t just tap-dance over this problem; exactly how externalities will be internalized is essential to justifying the libertarian state.

[1] – It will likely be made, these days, with Equal Exchange Mind, Body and Soul beans. I actually get it by subscription, in the mail, every month from Amazon. That’s pretty convenient, you guys.

[2] – I’m leaving out a bit of technical detail here. After you pour water on the leaves or grounds, you usually leave them to steep for a few minutes. So even if the water was boiling at the moment of contact with the leaves, it wouldn’t be when steeping was done. I don’t know whether that means, in particular, that the water is in the safe zone by the time the coffee’s done steeping. That may be relevant here.

Christopher Clark, The Sleepwalkers: How Europe Went to War in 1914 —

Christopher Clark, The Sleepwalkers: How Europe Went to War in 1914

Soldiers marching, and ships forming imposing lines. The photograph of ships is apparently 'The Great Fleet assembled at Spithead for the King's review, 18 July 1914.'

This book is simply a must-read. If you’re like most of us, you really have no idea why World War I happened; that certainly was the case for me going into this book. I knew generally that there were some alliances, and that the terms of those alliances dictated that various people attack various other people. My knowledge essentially reduced to this Onion headline:

WAR DECLARED BY ALL / AUSTRIA DECLARES WAR ON SERBIA DECLARES WAR ON GERMANY DECLARES WAR ON FRANCE DECLARES WAR ON TURKEY DECLARES WAR ON DECLARES WAR ON BULGARIA DECLARES WAR ON BRITAIN / OTTOMAN EMPIRE ALMOST DECLARES WAR ON ITSELF / NATIONS STRUGGLE TO REMEMBER ALLIES

Having read Christopher Clark’s magisterial [book: Sleepwalkers], I wouldn’t say I’m an expert, but I certainly have a decent sense of how the pieces fit together. Clark does a particularly admirable job trying to overthrow the notion — reinforced by the Versailles Treaty’s war-guilt clause [1] — that Germany was solely responsible for the war. He attacks this from any number of directions, foremost of which were 1) the French government’s hatred toward Germany, and especially Raymond Poincaré’s, 2) the media’s role in stoking the flames, 3) the various governments’ use of the media as a tool, 4) the fact that many different nations were mobilizing their forces, and that Germany by no means acted first.

To back up a bit … actually, let’s back way up. Why should you care about World War I? Why do I care about it, in particular? My interest in it is actually as a bookend to the “long 19th century”. Henry Kissinger’s Ph.D. thesis, [book: A World Restored: Metternich, Castlereagh, and the Problems of Peace] traces the story from Napoleon’s final defeat until the structure of post-Napoleonic Europe had been more or less tentatively worked out. Skating past a lot of detail that Kissinger really ably dives into, the basic gist is that you had the Austro-Hungarian Empire trying very hard to keep itself together while nationalism was on the rise; you had Europe casting a wary eye toward France, which had so recently dominated the continent; somewhere in the distance you had the Ottoman Empire, which was veering toward collapse from the mid-19th-century on; and you had Britain coming into its own after the Industrial Revolution. Every slight move by any one of these powers led to a cascade of counter-moves to try to keep the uneasy peace. Soon after Kissinger’s story ends, you have Bismarck unifying Germany, thereby introducing another complexity on the continent. And by 1914 the whole thing fell apart spectacularly. A very-long-term intellectual project of mine is to understand, in detail, how exactly that happened. Were the seeds of 1914 planted in 1789? How about in 1815? Hobsbawm would say, I think, that World War I was a natural outgrowth of the French Revolution.

All of that might still not explain why you should care. I didn’t realize exactly why I cared until I was well into Clark’s book. The big question for modern life is: could we ever go back to a continental war? We’re in a world now where Europe is bound, if nothing else, by strands of commerce. (Here’s where I’d want to dig into trade statistics from before World War I to see whether this story holds up. I recall, also, that there was more migration across European borders before the war than there has been since. The Great War seems to have shut down borders permanently.) Is there some way to bond European states in some permanent, automatic way by their self-interest? Or would the end of the euro, for instance, bring us back to the bad old days? (I should probably reread Mazower.)

Then World War I is important for the changes that it wrought on the Continent. The war exposed the instability in the Russian monarchy: within four years of the gunshots at Sarajevo, the monarchy was over and the Russians had sued for peace. And not long after the war, the Ottoman Empire was done, and Turkey was its own country. And of course World War II was in many senses just the second half of World War I, or at least a resolution to the disastrous treaty that ended the first war. Much of the world we live in today is an outgrowth of the world that the Great War formed. Tying the history of the world from the French Revolution to the EU together into a single coherent thread is something I’d very much like to do.

So to run through the days before war quickly: as everyone knows, Gavrilo Princip assassinated the Archduke Franz Ferdinand, heir to the throne of the Hapsburg dual monarchy, on June 28th of 1914, thereby sparking the war. Clark starts, reasonably enough, with the runup to the assassination. Basically, preparations for the assassination ran deeply into the Serbian government — all the way to a man called Apis, who had earlier murdered King Alexander, and who died before a firing squad before World War I was over. The Serbian government’s complicity was known to all within days or weeks of the assassination. So first of all, it was by no means unreasonable of the Hapsburgs to declare war on Serbia. Point number one against the “it was Germany’s fault” argument.

Now the alliances fall in. On the one side you have France, the UK, and Russia. Exactly why France and the UK ended up on the same side is not at all obvious, and Clark picks it apart quite carefully. Indeed, the French had plans only a few years earlier to invade the UK. So maybe the hint to pick up from that is: history is not pre-determined. Next: why France and Russia? A substantial fraction of the book is devoted to answering just that question.

Russia was on Serbia’s side, though. Partly this gets down to dreams of a worldwide union of the Slavic peoples. And since Serbia was pretty clearly the bad guy in the assassination, this puts Serbia, Russia, France, and the UK on the opposite side from the Austro-Hungarian Empire. And the French and British thought (whoops) that Russia would be a great and unassailable power within a few years, so they wanted to be on Russia’s side when the inevitable conflict came.

Now add in the final days of the colonial era, with the European powers all snapping up countries in Africa, Russia trying to control Afghanistan, Japan invading China, and everyone hoping to swoop in after the Ottoman Empire collapsed and control the coast of Turkey. Germany, having only really been formed from Prussia and some other states in the late 1800s, was getting systematically excluded from the spoils: the UK and France didn’t want anyone else horning in on their possessions. It’s not obvious that this should make Germany an adversary to the other great powers, but it certainly didn’t bring Germany into the fold.

Unpacking all of these stories, and dozens more, down to the detail of individual actors and with the elegance of a novelist, is the great achievement of [book: The Sleepwalkers]. Highly recommended.

[1] – “Germany accepts the responsibility of Germany and her allies for causing all the loss and damage to which the Allied and Associated Governments and their nationals have been subjected as a consequence of the war imposed upon them by the aggression of Germany and her allies.”

I hate to be a stickler about Krugman’s data analysis, but — December 7, 2013

I hate to be a stickler about Krugman’s data analysis, but

When he starts a column with the phrase “underneath the apparent stability of the Great Moderation lurked a rapid rise in debt that is now being unwound”, and uses this graph as evidence

debt as % of GDP. Shows a rise from before 1990, with a kink upward at around 2000Q4, then a decline when the recession ended.

, then someone who is as much of a fan of FRED as I am is going to want to reproduce Krugman’s data, whence we end up with

Same graph as above, but on a longer time scale. Basically debt as a % of GDP increased continuously from the early 1950s until the recession.

I’ll grant that something especially crazy started happening around the year 2000, but I don’t think you’d really single out that particular era, if this graph were your only bit of evidence, and say, “Ah ha! Debt really became unsustainably large right there!” Debt has been increasing continuously since the 1950s. The point of Krugman’s article lies in other directions (namely, how much of a hit on future GDP we’ll take because the country is now deleveraging), but my question would be: how far do we have to fall? Back to where it was in 1999? Or back to where it was in 1960?