Great post by Rich Karlgaard
http://blogs.forbes.com/digitalrules/2009/12/its-the-incentives-stupid/?partner=rich_karlgaard_newsletter
Wednesday, December 23, 2009
Parliment of whores...
Good OpEd in today's WSJ: "The Price of 'History'"
"The special deal for Nevada was wrong, the carve-outs for Louisiana, Vermont, and Massachusetts are wrong, and the same applies to the backroom deal for Nebraska. All of the special deals should be removed. If the bill cannot pass without carve-outs, what further evidence is needed that it is bad policy?"
"The special deal for Nevada was wrong, the carve-outs for Louisiana, Vermont, and Massachusetts are wrong, and the same applies to the backroom deal for Nebraska. All of the special deals should be removed. If the bill cannot pass without carve-outs, what further evidence is needed that it is bad policy?"
Tuesday, October 13, 2009
WSJ Obamacare op-ed links
A compilation of the Wall Street Journal's Op-Ed's on Obamacare can be found at the following link:
WSJ ObamaCare Articles
WSJ ObamaCare Articles
Thursday, August 20, 2009
The Promotion of human freedom
Quick article in WSJ on the passing of Rose Friedman, co-author of one of the most influential books out there.
"Our central theme in public advocacy," wrote Rose in "Two Lucky People," their joint autobiography, "has been the promotion of human freedom. . . . it underlies our opposition to rent control and general wage and price controls, our support for educational choice . . . an all-volunteer army, limitation of government spending, legalization of drugs, privatizing Social Security, free trade, and the deregulation of industry."
and
"We asked her not long ago if she thought the recent economic troubles and revival of statist policies was a repudiation of Milton's legacy. "Oh heavens no," she said. "Milton's ideas are timeless."
From her lips to God's ears....
Dave Ramsey on Cash for Clunkers
Great video railing against this disgusting government rip off, "Cash for Clunkers."
“Whether you use a government or you use a gun, theft is still theft.”
Wednesday, August 19, 2009
Obamacare = Rationing. Period
And the articles just continue to pour in. Why does anyone think Obamacare is a good idea?
"Like virtually every economist I know, I believe the right approach to limiting health spending is by reforming the tax rules. But if that is not going to happen, let's not destroy the high quality of the best of American health care by government rationing and misplaced egalitarianism. "
and:
"Impromptu Obamanomics is getting scarier by the day. For all the president’s touted intelligence, his un-teleprompted comments reveal a basic misunderstanding of capitalist principles. "
Spend MORE on Health Care!
I love a good contrarian viewpoint. Craig Karpel's column in last Sunday's WSJ made me sit up and take notice. It's entitled "We Don't Spend Enough on Health Care." The basic premise is that we're looking at the "high" percentage of GDP represented by health care spending in the wrong way. As Karpel points out, "No one thinks the 20% of our GDP that's attributable to manufacturing is weighing down the economy, because it's intuitively clear that one person's expenditure on widgets is another person's income. But the same is true of the health-care industry."
What follows is a fantastic argument that the large spend on health care in the United States is good. It is the logical extension of fullfilling human needs after food, clothing, and shelter -- key drivers of the industrial revolution, as well as the last century.
"The U.S. health-care economy should be viewed not as a burden but as an engine of growth. Medical and orthopedic equipment exports increased by 65.1% from 2004 through 2008. Pharmaceutical exports were up 74.6%. The unprecedented advances expected to come out of American stem cell, nanotechnology and human genome research—which other countries' constricted health sectors cannot support—will send these already impressive figures skyward."
Well worth the read.
What follows is a fantastic argument that the large spend on health care in the United States is good. It is the logical extension of fullfilling human needs after food, clothing, and shelter -- key drivers of the industrial revolution, as well as the last century.
"The U.S. health-care economy should be viewed not as a burden but as an engine of growth. Medical and orthopedic equipment exports increased by 65.1% from 2004 through 2008. Pharmaceutical exports were up 74.6%. The unprecedented advances expected to come out of American stem cell, nanotechnology and human genome research—which other countries' constricted health sectors cannot support—will send these already impressive figures skyward."
Well worth the read.
Tuesday, August 18, 2009
Trust the People
An outstanding article contrasting Reagan's communication style to that of Obama's. Defintiely worth checking out: "Newt Gingrich: The Great Communicator and the Great Obfuscator"
"Contrast the faith in Americans shown by Reagan with the distrust shown by the Obama Administration. While Reagan had enough confidence in his ideas to leave their fate to the American people, Obama has time and again tried to cut the people out of the democratic process. Instead of having the confidence to defend its ideas, Obama has tried to rush his agenda through Congress with little or no debate, attempted to demonize those who disagree with it, and even asked Americans to inform on their fellow Americans who disagree. "
"Contrast the faith in Americans shown by Reagan with the distrust shown by the Obama Administration. While Reagan had enough confidence in his ideas to leave their fate to the American people, Obama has time and again tried to cut the people out of the democratic process. Instead of having the confidence to defend its ideas, Obama has tried to rush his agenda through Congress with little or no debate, attempted to demonize those who disagree with it, and even asked Americans to inform on their fellow Americans who disagree. "
What's wrong with this picture?
I came across this article on the best and worst places in America to look for a job. You can see the full article here. June 2009 Job postings to unemployed persons. #1 place to find a job is Washington D.C. You can't tax your way to growth!
Saturday, August 15, 2009
Consumer-based Healthcare
It is my belief that health-care reform in the United States is absolutely critical, but what must be at the center of any health care reform is choice and control by the consumer. Consumer choice and a healthy price system is key to bringing down the cost and increasing the quality of health care. This system (also known as- “Capitalism” J ) is at the root of every other consumer market where we enjoy high-quality and low prices in our society today (e.g. Groceries, automobiles, consumer electronics, etc.). This is also what will allow us to afford to take care of those in our society who need help. What successful healthcare reform in the U.S. will entail is far less government intervention, not more.
With that in mind, I have collected the following set of articles, videos, and websites that I think offer interesting contributions to the healthcare debate. For links to articles on both sides of the debate, I recommend the Real Clear Politics website, which aggregates opinions on a number of issues from both sides of the aisle: http://www.realclearpolitics.com/
Resources:
The Whole Foods Alternative to ObamaCare - This is my favorite editorial so far. It is written by John Mackey, co-founder and CEO of Whole Foods. It details reforms of many obstacles to health care reform. The article can be found at: http://online.wsj.com/article/SB10001424052970204251404574342170072865070.html
Obama’s Senior Moment – This editorial brushes past some of the fear mongering around “death panels,” and instead discusses the reality of services-rationing that must be part of a single payer government system. And the very real affect it will have on the elderly. http://online.wsj.com/article/SB10001424052970203863204574344900152168372.html
Defend your Healthcare –This site is run by Betsy McCaughey, the former Lt. Governor of New York State, and closely details the health care legislation. This is the best source of information for ways the current legislation will limit your freedom (i.e consumer choice) for health care if the current legislation passes. http://defendyourhealthcare.us/
Ronald Reagan on Socialized Medicine – (WWRD? What would Reagan Do? – yes, I love the Gipper that much J ). The following audio file was recorded by RWR in 1961 to argue against Socialized medicine. It is priceless, as the arguments are entirely applicable today. http://www.youtube.com/watch?v=fRdLpem-AAs
Paul Ryan on the Patient’s Choice Act – In this four minute video, Representative Paul Ryan (R. from Wisconsin) introduces the Patient’s Choice act. Health care reform that puts control and ownership of decisions in the hands of individuals! Addresses issues such as: Why is health care tied to your job? Why does health care have tax exempt status for companies, but not the self employed? Why can’t you purchase health insurance across state lines? Get the Federal Government out of the way! Patients first!
http://www.youtube.com/watch?v=S6H3aEob_mo&eurl=http%3A%2F%2Fwww%2Ehouse%2Egov%2Fryan%2Fhealthcare%2Findex%2Ehtm&feature=player_embedded
Newt Gingrich video – Put aside what you think about “Newt” from the 90’s – it was his job to be the tough opposition. “Mr. Newt” is one of the best thinkers on public policy out there. This five minute video is a great introduction to conservative thought on how to reform healthcare. Did you know that it’s estimated that over 10% of New York state Medicad is pure fraud – over 4.4 billion dollars a year. “Why would you raise taxes on honest people before you stop paying the crooks?” (see next item as well) http://www.youtube.com/watch?v=34URI54WXlc&eurl=http%3A%2F%2Fwww%2Efacebook%2Ecom%2Fhome%2Ephp&feature=player_embedded
Center for Health Transformation – This is Newt Gingrich’s group that advocates for six steps to healthcare reform: 1. stop the massive fraud in the system, 2, move to electronic health system, 3. tax reform, 4. “health” based health system, 5. reform health justice, 6. invest in R&D.
http://www.healthtransformation.net/
TAKE TWO ASPIRIN AND CALL ME WHEN YOUR CANCER IS STAGE 4 - Like her or not, Ann Coulter is a brilliant analyst. This column puts the focus on the source of the health care problem – government mandates, regulations, and general meddling with the free market. Also brilliantly funny. http://www.anncoulter.com/cgi-local/article.cgi?article=322
heydits.blogspot.com - For a continuing set of links and ramblings, you can also visit my blog at http://heydits.blogspot.com/
With that in mind, I have collected the following set of articles, videos, and websites that I think offer interesting contributions to the healthcare debate. For links to articles on both sides of the debate, I recommend the Real Clear Politics website, which aggregates opinions on a number of issues from both sides of the aisle: http://www.realclearpolitics.com/
Resources:
The Whole Foods Alternative to ObamaCare - This is my favorite editorial so far. It is written by John Mackey, co-founder and CEO of Whole Foods. It details reforms of many obstacles to health care reform. The article can be found at: http://online.wsj.com/article/SB10001424052970204251404574342170072865070.html
Obama’s Senior Moment – This editorial brushes past some of the fear mongering around “death panels,” and instead discusses the reality of services-rationing that must be part of a single payer government system. And the very real affect it will have on the elderly. http://online.wsj.com/article/SB10001424052970203863204574344900152168372.html
Defend your Healthcare –This site is run by Betsy McCaughey, the former Lt. Governor of New York State, and closely details the health care legislation. This is the best source of information for ways the current legislation will limit your freedom (i.e consumer choice) for health care if the current legislation passes. http://defendyourhealthcare.us/
Ronald Reagan on Socialized Medicine – (WWRD? What would Reagan Do? – yes, I love the Gipper that much J ). The following audio file was recorded by RWR in 1961 to argue against Socialized medicine. It is priceless, as the arguments are entirely applicable today. http://www.youtube.com/watch?v=fRdLpem-AAs
Paul Ryan on the Patient’s Choice Act – In this four minute video, Representative Paul Ryan (R. from Wisconsin) introduces the Patient’s Choice act. Health care reform that puts control and ownership of decisions in the hands of individuals! Addresses issues such as: Why is health care tied to your job? Why does health care have tax exempt status for companies, but not the self employed? Why can’t you purchase health insurance across state lines? Get the Federal Government out of the way! Patients first!
http://www.youtube.com/watch?v=S6H3aEob_mo&eurl=http%3A%2F%2Fwww%2Ehouse%2Egov%2Fryan%2Fhealthcare%2Findex%2Ehtm&feature=player_embedded
Newt Gingrich video – Put aside what you think about “Newt” from the 90’s – it was his job to be the tough opposition. “Mr. Newt” is one of the best thinkers on public policy out there. This five minute video is a great introduction to conservative thought on how to reform healthcare. Did you know that it’s estimated that over 10% of New York state Medicad is pure fraud – over 4.4 billion dollars a year. “Why would you raise taxes on honest people before you stop paying the crooks?” (see next item as well) http://www.youtube.com/watch?v=34URI54WXlc&eurl=http%3A%2F%2Fwww%2Efacebook%2Ecom%2Fhome%2Ephp&feature=player_embedded
Center for Health Transformation – This is Newt Gingrich’s group that advocates for six steps to healthcare reform: 1. stop the massive fraud in the system, 2, move to electronic health system, 3. tax reform, 4. “health” based health system, 5. reform health justice, 6. invest in R&D.
http://www.healthtransformation.net/
TAKE TWO ASPIRIN AND CALL ME WHEN YOUR CANCER IS STAGE 4 - Like her or not, Ann Coulter is a brilliant analyst. This column puts the focus on the source of the health care problem – government mandates, regulations, and general meddling with the free market. Also brilliantly funny. http://www.anncoulter.com/cgi-local/article.cgi?article=322
heydits.blogspot.com - For a continuing set of links and ramblings, you can also visit my blog at http://heydits.blogspot.com/
Friday, August 14, 2009
The Gipper vs. Obamacare
There is a great link on the Drudge Report today to an audiophile of Ronald Reagan speaking out against socialized healthcare in 1961. You can listen to the audio by clicking this link: http://www.youtube.com/watch?v=fRdLpem-AAs
I'd pay good money to see the debate between President Obama & this recording!
Seniors beware
Great Op Ed today in the WSJ entitled "Obama's Senior Moment." If you're older, or you love someone who is older (which pretty much covers everyone, right?) you should give it a read. Scare tactics aside - rationing is and will be a government controlled fact of life in a single payer system.
As this article points out, resources are already rationed the right way -- with a price system! What America needs is more free markets and less government in health care.
As this article points out, resources are already rationed the right way -- with a price system! What America needs is more free markets and less government in health care.
Friday, August 07, 2009
Wednesday, July 29, 2009
What a total punk (Congress stinks!).
“What good is reading the bill if it’s a thousand pages and you don’t have two days and two lawyers to find out what it means after you read the bill?” - House Judiciary Chairman John Conyers (D-Mich.)
Professional politicans, for the most part, are scum. These people are going to socialize one sixth of the American economy, and these pukes who are voting on it will not even read the bill. If it's too long and complicated to read, perhaps that's a sign that it's too complicated and full of things they want to hide from the American people.
Punks.
Professional politicans, for the most part, are scum. These people are going to socialize one sixth of the American economy, and these pukes who are voting on it will not even read the bill. If it's too long and complicated to read, perhaps that's a sign that it's too complicated and full of things they want to hide from the American people.
Punks.
Nothing to worry about....
Interesting quick article about a geologist who's working to debunk the myth of man-made global warming. Considering my last post about getting shouted down by "people of science" who's bias makes them unwilling to even listen to an opposing viewpoint, I thought it was interesting he has trouble getting the book published:
"That book [A Brief History of Planet Earth], published in 2001, was a best-seller and won several prizes. But Plimer found it hard to find anyone willing to publish this latest book, so intimidating has the environmental lobby become."
Hmmm... a best selling author who can't find a publisher for a new book because of intimidation from the environmental nazis. That's "open" mindedness for you ;-).
Full article here.
"That book [A Brief History of Planet Earth], published in 2001, was a best-seller and won several prizes. But Plimer found it hard to find anyone willing to publish this latest book, so intimidating has the environmental lobby become."
Hmmm... a best selling author who can't find a publisher for a new book because of intimidation from the environmental nazis. That's "open" mindedness for you ;-).
Full article here.
Monday, July 06, 2009
How dare you not assimilate!
I was at a baseball game the other day with a friend when the topic of global warming came up. He asked, “are you one of these people who don’t believe there is a problem?” This is always a tough question for me to answer—not because I don’t know what I think, but because I’m internally doing the calculus around “is this person going to bother listening to what I have to say?”
The problem with global warming is that it has fallen into the “everybody knows” category, meaning that the “fact” that man is killing the Earth through various activities is a known fact, and questioning this in ANY way puts you on par with the “Flat Earth” set. Well, I am not a global warming denier, but having doubts or even asking for clarification does not make me into a criminal. Perfectly “normal” everyday people will shout you down in a heartbeat, “oh come ON! Don’t know anything?”
The irony is that the people shouting you down are typically the ones that have been spoon-fed their information. They’ve heard it enough times that they’re more than comfortable feeling smart by tearing down your opinion, though they haven’t a scientific bone in their body, and haven’t bothered to ever consider a single dissenting opinion. Real “informed.”
The very real truth is that global warming is an uber-politicized issue. That by definition makes it ripe for misinformation and exaggeration. People who take the time to think about the issue would of course be on guard for biased opinion.
The Wall Street Journal had an op-ed the other day about the EPA’s silencing of a noted NASA scientist and global warming critic. (The EPA silences a climate skeptic). Alan Carlin, a 35 year veteran of the EPA doesn’t believe in global warming. Having amassed an argument against man made global warming, your government, in the form of the EPA management has silenced him. Essentially telling him to not publish or speak on the topic if he values his job.
If “everyone knows” that man made global warming is a fact, and the proof is absolutely incontrovertible, why are so many so threatened by people who ask questions? Hmmm… could it be that the Al Gore stands to benefit personally from the “fact” of global warming? Could it be that Democrats and their henchman at Goldman Sachs stand to benefit both politically (power grab) and economically from a massive Cap & Trade system? Funny, I don’t stand to make a dime from asking for a little more proof.
The problem with global warming is that it has fallen into the “everybody knows” category, meaning that the “fact” that man is killing the Earth through various activities is a known fact, and questioning this in ANY way puts you on par with the “Flat Earth” set. Well, I am not a global warming denier, but having doubts or even asking for clarification does not make me into a criminal. Perfectly “normal” everyday people will shout you down in a heartbeat, “oh come ON! Don’t know anything?”
The irony is that the people shouting you down are typically the ones that have been spoon-fed their information. They’ve heard it enough times that they’re more than comfortable feeling smart by tearing down your opinion, though they haven’t a scientific bone in their body, and haven’t bothered to ever consider a single dissenting opinion. Real “informed.”
The very real truth is that global warming is an uber-politicized issue. That by definition makes it ripe for misinformation and exaggeration. People who take the time to think about the issue would of course be on guard for biased opinion.
The Wall Street Journal had an op-ed the other day about the EPA’s silencing of a noted NASA scientist and global warming critic. (The EPA silences a climate skeptic). Alan Carlin, a 35 year veteran of the EPA doesn’t believe in global warming. Having amassed an argument against man made global warming, your government, in the form of the EPA management has silenced him. Essentially telling him to not publish or speak on the topic if he values his job.
If “everyone knows” that man made global warming is a fact, and the proof is absolutely incontrovertible, why are so many so threatened by people who ask questions? Hmmm… could it be that the Al Gore stands to benefit personally from the “fact” of global warming? Could it be that Democrats and their henchman at Goldman Sachs stand to benefit both politically (power grab) and economically from a massive Cap & Trade system? Funny, I don’t stand to make a dime from asking for a little more proof.
Sunday, July 05, 2009
True now more than ever...
"The nine most terrifying words in the English language are, 'I'm from the government and I'm here to help.' "
- Ronald Reagan
Sunday, June 21, 2009
It's the Government's fault
A few months ago, I was driving home and passing by the Boston Federal Reserve building and saw a huge protest against the Fed. Ever since my UMASS days I have always thought that protesters are usually...well, stupid. Okay, I'm not a "protest" guy. Not so much because I don't believe (hey, it's meaningful in Tehran), but more that the activity gets so watered down when people protest at the drop of a hat.
My first reaction the protestors, which included small childred with signs demanding "End the FED!" (you have to be an adult to even remotely understand the arcana of "the FED"), was that these people were moonbat, beatnick, nutjobs... I mean hey, someone has to clear our checks, and set interest rates....right? Right?
After reading Ron Paul's book, The Revolution, A Manifesto, I signed up for a Ron Paul mailing list somewhere, and the Congressman Paul's recomendation of this book is what turned me on to it. Well, I have to say that after reading Meltdown: A Free Market Look at Why the Stock Market Collapsed, the Economy Tanked, and Government Bailouts Will Make Things Worse, next time, I might be making my own sign and joinging the protest.
If you're a free market guy, or proclaim to be, this is a must read. It hits home. This book makes a whole hell of a lot of sense. The ENTIRE point of the belief in free markets is that individuals (in aggregate) will always make better decisions with their money and resources than a third party (e.g. government). As any economist will tell you, the "price" of anything is a piece of information. In order for free markets to work...prices must float and be determined by supply and demand. Allowing the market to work is what sets the right price for any product or service.
What this book does best, is explain the problem of the Federal Reserve. The Federal Reserve is essentially a central planning entity that sets the price of money. It's price controls. The Fed's price controls essentially screw up the free market by setting prices at the most basic level of a free market economy. "Fiat money," that is money that is controlled by a centrally planned entity (in this case the Federal Reserve board) drives the business boom/bust cycle that we experience in our economy. It also provides an irresistable, crack-cocaine-like opportunity for governments to devalue money by just printing more.
It's government's fault. Centrally planned money is subject to the whims, foibles, and just plain corrupt motives of a small set of people in our goverment (The Fed, plus the political pressure of Washington D.C.). The right solution, as this book also advocates, is "Commodity money." The United States should go to the Gold standard as fast as possible. Do not "pass Go," and we WILL collect "$200" in the form of stable money that will gain value over time.
"Hey, hey, ho, ho, the Federal Reserve has got to go!"
Tuesday, March 24, 2009
Question Mr. President...
"Thank you Mr. President. You have been President now for over two months. Can you give a timeframe tonight to the American people that you will commit to stop answering every quesiton with the words, "I didn't create these problems, I inherited them. This is how it was when I got here...?"
Thursday, March 05, 2009
"Work, ideas, innovation..."
There is a great article in today's WSJ by Daniel Henniger called "Has Obama buried Reagan?"
The article makes the perfect point that if we could get one person who could explain Reganomics (a.k.a. ECONOMIC GROWTH!) only HALF as well as Ronald Reagan, we'd win back this country. As a conservative it is SO frustrating that nationaly known Republicans are so poor at articulating our basic fiscal values. Who are these gutless idiots? For crying out loud-- LOW TAXES, Stable MONETARY POLICY, BALANCED BUDGETS throug smaller and smaller governement...And for the love of God almighty -- FREEDOM!!!! LIBERTY! Why can't these LOSERS get this basic concept out there. We're Americans, we don't need this disgusting, revolting nanny state that Obamunism is foisting upon us.
Rush is totally right. DO NOT BE EMBARASSED TO BE CONSERVATIVE. This IS a Conservative-right nation. Even people who don't consider themselves conseravtive DO act and believe based on fiscal conservative values.
Henniger is right - Economics in one Lesson, Free to Choose, The Reagan Diaries...if only they taught these texts in school!
Sigh.
Tuesday, February 24, 2009
Heeeeeeeer's Socialism!!!
....er....I thought the automobile was invented in Germany.
Did he just promise to cure cancer?
Socialized health care...this year? Don't get sick.
Monday, February 23, 2009
A Bipartisan idea for the Stimulus
William J. Suntz’s cover article in the February 23, 2009 issue of The Weekly Standard entitled “Law and Disorder – the case for a police ‘surge,’” is brilliant. What’s more, if it was in a different publication (say, The Atlantic, or Newsweek) its premise would be falling off the lips of both Democrats and Republicans. The basic premise of the piece is that as the “surge” in Iraq was successful in tamping down violence there, so could a domestic surge of Police quell the violence in the United State’s urban centers.
The author points out that the front line of America’s race problem is very much entwined with the crime rate. You probably wouldn’t be shocked to learn that poor black neighborhoods have a much higher murder rate that the suburbs – but listen to the actual numbers. “In the United States in 2005, the homicide rate among wintes stood at 3.5 per 100,000. Among blacks, the figure was 26.5.” Almost eight times the rate! The argument he goes on to make is compelling, that government is falling flat on it’s obligation to keep urban black populations safe. That is racism, isn’t it? (Related 2005 posting).
Stunz makes the case that the correct response to crime in urban centers is not more efficient imprisonment of offenders, but rather deterrence brought about by the increased safety felt by a community:
“The answer is the same in American cities as in Iraqi ones. General Patraeus saw the process: Increase soldiers’ street presence, make civilians feel safe, and the local traffic increases; before long, the streets are inhospitable to terrorists and militia members. Over time, the real work of pacification is done by civilians reclaiming their own streets.”
Stunz goes on to make a nice comparison of criminal acceptance of risk and price stability. As he puts it, “Criminals are what economists call ‘risk-preferring;’ they enjoy taking changes.” He points out that when punishment for crimes varies widely, it’s a form of “price-instability,” more like a lottery. “Fluctuating ‘prices’ thus rob criminal punishment of its deterrent power.” I think this example is interesting and it makes sense – the decision to commit a crime is of course – at least by the rational minded – weighed against potential consequences. Potential crime is only prevented when the prevailing feeling is you’re more likely to get caught than not.
This article is so commonsense it makes you wish you could make every politician sit and absorb it. The sad part, as pointed out in the beginning of the article, is that with all this completely wasted (my words) spending in the stimulus package, we could easily finance a surge in police officers across America’s violent urban neighborhoods. The first and maybe most important purpose of government is protecting its citizens. We’re spending crazy amounts of money anyway – why wouldn’t bringing safety and security to all neighborhoods be something both Democrats and Republicans would support? Surge or no surge, that is government spending I can get behind!
The author points out that the front line of America’s race problem is very much entwined with the crime rate. You probably wouldn’t be shocked to learn that poor black neighborhoods have a much higher murder rate that the suburbs – but listen to the actual numbers. “In the United States in 2005, the homicide rate among wintes stood at 3.5 per 100,000. Among blacks, the figure was 26.5.” Almost eight times the rate! The argument he goes on to make is compelling, that government is falling flat on it’s obligation to keep urban black populations safe. That is racism, isn’t it? (Related 2005 posting).
Stunz makes the case that the correct response to crime in urban centers is not more efficient imprisonment of offenders, but rather deterrence brought about by the increased safety felt by a community:
“The answer is the same in American cities as in Iraqi ones. General Patraeus saw the process: Increase soldiers’ street presence, make civilians feel safe, and the local traffic increases; before long, the streets are inhospitable to terrorists and militia members. Over time, the real work of pacification is done by civilians reclaiming their own streets.”
Stunz goes on to make a nice comparison of criminal acceptance of risk and price stability. As he puts it, “Criminals are what economists call ‘risk-preferring;’ they enjoy taking changes.” He points out that when punishment for crimes varies widely, it’s a form of “price-instability,” more like a lottery. “Fluctuating ‘prices’ thus rob criminal punishment of its deterrent power.” I think this example is interesting and it makes sense – the decision to commit a crime is of course – at least by the rational minded – weighed against potential consequences. Potential crime is only prevented when the prevailing feeling is you’re more likely to get caught than not.
This article is so commonsense it makes you wish you could make every politician sit and absorb it. The sad part, as pointed out in the beginning of the article, is that with all this completely wasted (my words) spending in the stimulus package, we could easily finance a surge in police officers across America’s violent urban neighborhoods. The first and maybe most important purpose of government is protecting its citizens. We’re spending crazy amounts of money anyway – why wouldn’t bringing safety and security to all neighborhoods be something both Democrats and Republicans would support? Surge or no surge, that is government spending I can get behind!
Thursday, February 12, 2009
Bill Gates on Talent Management
Bill Gates directly addressed the issue of Talent Management in education during his address at last week’s TED conference. After an initial discussion of the battle against Malaria in the poorest parts of the world (complete with an actual release of mosquitoes into the crowd) Gates gives a great example of a true Performance Management process at work. It’s useful to look at because it mirrors exactly what HR professionals would like to accomplish inside of their own organizations.
You can watch the video of the talk here (the Malaria discussion is about ten minutes at the start): http://www.ted.com/talks/bill_gates_unplugged.html
As you watch the discussion, note each piece or step of an integrated talent management process that comes into play:
1. Defining Organizational Goals – In the U.S. the top 20% of individuals get a superior education, but the balance of people are continually getting a less and less competitive education versus some other countries. The goal then is to increase the performance of the bottom 80%.
2. Identifying key Jobs that affect the desired outcome – Gates presents evidence from studies that show the difference in performance between top quartile teachers and bottom quartile. It turns out that teachers in the top quartile are able to increase the performance of their classes on test scores by 10% in a single year.
Gates puts an exclamation point on this with the example, “If the entire U.S. for two years had top quartile math teachers, the entire difference in test scores between us and Asia would go away.” This of course begs the question, how do we find, recruit, and or grow more top performing teachers?
3. Characterizing what predicts success in that role (Competencies, Skills, and Experience) – Once you’ve decided which key jobs drive the economic value of your company, or in this case your organizational goal to improve education, you need to describe what traits are predictive of success (in say, your Job Profile!) Gates simply asks, “How do you make a great teacher?”
Mr. Gates then takes us through a quick set of attributes that might be predictive of what makes a top quartile teacher: Seniority, whether the person participated in Teach for America, whether they have a math degree (he’s talking about math teachers), or whether the person has a Master’s degree. In real life of course, there might be 10, 20 or 100 different measures.
4. Measuring variability of performance in that job – Gates illustrates the problem of feedback in the teaching role. He actually hits on what is more of an Education specific issue – that is, that teacher’s contract might only allow a principal to observe in his or her classroom a single time a year, and only with notice. The problem is the total lack of coaching or feedback on the behaviors and competencies that make someone a great teacher. Union issues aside, there are certainly comparisons to the once a year appraisal process common in most corporate settings. Does anyone believe that type of appraisal process is core to changing the behaviors that drive top quartile performance? Of course not!
5. Turnover & Retention in that role – Guess what? According to Gates, “On average, the slightly better teachers leave teaching. There’s a lot of turnover.” That may have a lot to do with the next step…
6. Pay-for-Performance – Spoiler alert. If you haven’t watched the video, this ruins the payoff. As it turns out, the characteristics that are predictive of top quartile performance map out like this:
- Possession of a Master’s Degree: Almost no effect
- Teach for America: A little bit more effect
- Math major in college: A bit more effect
- Actual past top performance: GINORMOUS effect
Gates kicker in this section, of course, is around the pay portion. What do teachers get bumps in pay for? Seniority, and earning a Master’s degree.
7. Coaching & Learning and Development – Finally, the most optimistic part of Gate’s presentation comes at the end. If you can move around some of the incentive systems the real opportunity is around developing individual teachers. Using various tools to coach and develop individuals, the hope is that they can encourage the behaviors that drive top quartile performance.
The one major piece of a talent management process Gates doesn’t mention in all this is Recruiting. However, from here it’s an easy leap to see the value in integrated talent management. If we fully understand our Organizational goals, the jobs that drive the goals, and the job behaviors that predict top performance, we can focus hiring efforts on measuring those behaviors and skills.
Did you notice there is no discussion here about managing “A” players? While you want to identify key players, it’s not to manage them, it’s to learn what behavioral competencies they use to produce top performance. The “managing” part is about managing “A” jobs. How do I reduce the variability of performance in the key roles that drive my Organizational goals? By focusing on a foundational piece of the system, in this case jobs, they’re looking to increase the performance of the whole. THAT takes an integrated approach to talent management. Of course, there’s no discussion here of technology, just the process. However, in practice, you must have technology in place to support a systematic approach to this many individuals.
“By thinking of this as a Personnel system, we can do it better.” - Bill Gates
You can watch the video of the talk here (the Malaria discussion is about ten minutes at the start): http://www.ted.com/talks/bill_gates_unplugged.html
As you watch the discussion, note each piece or step of an integrated talent management process that comes into play:
1. Defining Organizational Goals – In the U.S. the top 20% of individuals get a superior education, but the balance of people are continually getting a less and less competitive education versus some other countries. The goal then is to increase the performance of the bottom 80%.
2. Identifying key Jobs that affect the desired outcome – Gates presents evidence from studies that show the difference in performance between top quartile teachers and bottom quartile. It turns out that teachers in the top quartile are able to increase the performance of their classes on test scores by 10% in a single year.
Gates puts an exclamation point on this with the example, “If the entire U.S. for two years had top quartile math teachers, the entire difference in test scores between us and Asia would go away.” This of course begs the question, how do we find, recruit, and or grow more top performing teachers?
3. Characterizing what predicts success in that role (Competencies, Skills, and Experience) – Once you’ve decided which key jobs drive the economic value of your company, or in this case your organizational goal to improve education, you need to describe what traits are predictive of success (in say, your Job Profile!) Gates simply asks, “How do you make a great teacher?”
Mr. Gates then takes us through a quick set of attributes that might be predictive of what makes a top quartile teacher: Seniority, whether the person participated in Teach for America, whether they have a math degree (he’s talking about math teachers), or whether the person has a Master’s degree. In real life of course, there might be 10, 20 or 100 different measures.
4. Measuring variability of performance in that job – Gates illustrates the problem of feedback in the teaching role. He actually hits on what is more of an Education specific issue – that is, that teacher’s contract might only allow a principal to observe in his or her classroom a single time a year, and only with notice. The problem is the total lack of coaching or feedback on the behaviors and competencies that make someone a great teacher. Union issues aside, there are certainly comparisons to the once a year appraisal process common in most corporate settings. Does anyone believe that type of appraisal process is core to changing the behaviors that drive top quartile performance? Of course not!
5. Turnover & Retention in that role – Guess what? According to Gates, “On average, the slightly better teachers leave teaching. There’s a lot of turnover.” That may have a lot to do with the next step…
6. Pay-for-Performance – Spoiler alert. If you haven’t watched the video, this ruins the payoff. As it turns out, the characteristics that are predictive of top quartile performance map out like this:
- Possession of a Master’s Degree: Almost no effect
- Teach for America: A little bit more effect
- Math major in college: A bit more effect
- Actual past top performance: GINORMOUS effect
Gates kicker in this section, of course, is around the pay portion. What do teachers get bumps in pay for? Seniority, and earning a Master’s degree.
7. Coaching & Learning and Development – Finally, the most optimistic part of Gate’s presentation comes at the end. If you can move around some of the incentive systems the real opportunity is around developing individual teachers. Using various tools to coach and develop individuals, the hope is that they can encourage the behaviors that drive top quartile performance.
The one major piece of a talent management process Gates doesn’t mention in all this is Recruiting. However, from here it’s an easy leap to see the value in integrated talent management. If we fully understand our Organizational goals, the jobs that drive the goals, and the job behaviors that predict top performance, we can focus hiring efforts on measuring those behaviors and skills.
Did you notice there is no discussion here about managing “A” players? While you want to identify key players, it’s not to manage them, it’s to learn what behavioral competencies they use to produce top performance. The “managing” part is about managing “A” jobs. How do I reduce the variability of performance in the key roles that drive my Organizational goals? By focusing on a foundational piece of the system, in this case jobs, they’re looking to increase the performance of the whole. THAT takes an integrated approach to talent management. Of course, there’s no discussion here of technology, just the process. However, in practice, you must have technology in place to support a systematic approach to this many individuals.
“By thinking of this as a Personnel system, we can do it better.” - Bill Gates
Monday, February 09, 2009
Less Thomas, more Milton...
After reading Hot, Flat, and Crowded by Thomas Friedman, I have to say that what the United States really needs is not the prescriptions of Thomas Friedman, but a big dose of Milton Friedman!
With my dig out of the way, I have to go on to say that I consider Thomas Friedman must reading. The World is Flat and the Lexus & the Olive tree were both great reads, and Hot Flat and Crowded is just as interesting. While I ended up disagreeing with his conclusions, the reading is certainly fascinating and a great addition to the conversation on the environment.
The most interesting discussion in the book was about the correlation between freedom in the world and the price of oil at any given time. Studies have shown that when a worldwide “freedom index” (an amalgamation of different factors including free elections and other characteristics of free societies) is compared to the prevailing price of oil, a surprising correlation of less freedom comes with a higher price of oil. Basically, it works like this. The higher the price of oil, the more money Petro-dictators have to give away free goodies (in the form of social subsides) to their people. Then in turn, the higher level of goodies, the lower social unrest in these countries. Unfortunately, in return for higher standard of living/handouts, those same people are willing to live with reduced freedom. Or at the very least, it’s harder to get an opposition movement going.
The reverse is true as well. The lower the price of oil, the harder it is for Petro-dictators like you’ll find in Venezuela, Saudi Arabia, Iran, Iraq, and Russia to hold onto their tyranny. Friedman claims this is one of his main points when speaking in front of conservative groups who might be less interested in his global warming message. I have to say, the value of low-priced oil for national security reasons is compelling on its own. I just differ on how to get there (drill here, drill now!)
That discussion is worth the cost of the book on it’s own. Friedman than goes on to discuss several other aspects of the battle against global warming. If there is a flaw in the book, it’s Friedman’s total hook, line, and sinker buy-in to man-made global warming. Assumption after assumption is presented as fact, and if you don’t agree that it’s irrefutable facts you’re a “naysayer.” In the end it doesn’t matter. Even a naysayer like me sees the great benefits to a green revolution (“you had me at national security”).
My real point of contention with Friedman is his gas tax. He rightly observes that high oil prices represent a price signal makes a market for alternative energy. He’s also right that the unpredictable price volatility prevents true private sector investment in alternative energies (why would I put 100 million into wind-farms technology when oil might be a dollar cheaper six months from now – as it’s turned out to be).
It is the kind of conundrum that argues for some type of government intervention. Even a laissez-faire kind of guy like me can almost get over that (almost). Friedman’s solution is to tax you more. He’d like to put a floor on the price of a gallon of gas – still allowing shifting in the price, but any savings below a certain floor determine the amount of the tax (e.g. If the “real” price of gas is $2.50 and the floor is set at $3.00, Uncle Sam nets fifty cents). His goal is to set the price high enough and stable enough to foster investment in alternative energy sources.
It would be one discussion if this new consumption tax was offset with a reduction in other taxes such as income, but Friedman basically chalks it up to “hey, extra revenue for the government!” The real problem in my mind is the distortion of the market. “Price” is the most important piece of information for effective free markets, and price controls always corrupt the outcome. Because of that I just cannot get on board, as seductive as it might sound.
The real solution is in the passage on moon shot versus “1,000 garages.” The question he’s looking at is about whether this effort is a massive “moon shot” effort that needs an enormous centralized government solution, or whether it instead will get solved by the thousands of inventors and entrepreneurs out there. It seems to me that rather than mucking up a perfectly good free market system (bounded by law/contracts), why not sponsor the equivalent of the Ansari X Prize? Heck, we’re talking government here…even if you made the prize “one BILLLION dollars,” it would still be cheaper for American tax payer.
The Price of Everything
"The Price of Everything: A Parable of Possibility and Prosperity," should be required reading in every high school across America!
The book explains "how the world works" in the form of a parable. A young, professional tennis player is dismayed when a local hardware store raises its prices after a natural disaster in his town. The obvious "price gouging" infuriates him and he becomes the spokesman against the big box retailer in an on-campus movement at Stanford. When our hero's girlfriend comes home and talks about her unique economics professor the action is just getting started.
It's not such a page turner that I'm really risking ruining the ending for you here, but I'll save you the details. It's a parable, so it's about the lesson more than the story. The reason I loved the book is that it is able to explain in plain terms a free market system and how it works. Not a demand curve in sight but you'll take more away from this book than any basic economics class you had in college!
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