Gongol.com Archives: March 2018
March 15, 2018
There is a tension in having the President act both as head of government and head of state. Senator Jeff Flake is right to sound the alarm that the part about being head of state isn't being taken seriously. Preserving the dignity of the office as a tool of moral suasion is one of the reasons why so many people were interested in punishing President Bill Clinton for his bad behavior in office -- it wasn't a matter of policy, it was a matter of behavior. President Barack Obama conducted himself generally quite well as a head of state, but made a lot of errors as head of government. Today, it's entirely incomplete for people to approve of President Donald Trump's policies in government when his words and behavior as head of state are reprehensible. It's time for a pro-civic wing of the Republican Party to speak up and demand accountability for the duties of a head of state.
The US only has a trade deficit with Canada if you exclude services
And excluding services is a ridiculous way to count economic output. Can we all just take a minute to reflect on the anachronism of thinking that goods are somehow better outputs than services? Any parent who has ever encouraged their kid to become a doctor, lawyer, or engineer has revealed a preference for providing services. Goods and services need one another -- you can't build a bridge without designing it, too. Someone makes a pair of shoes, and someone else sells them. Boeing can build an airplane, but Delta has to fly it.
Where do traded dollars go when we are a net importer?
A hypothesis: Agglomerative network effects could neutralize the ordinarily negative effects of trade deficits. Suppose we run a trade deficit with country "B", buying things that help increase our growth rate. Country "B" returns some of the resulting cash surplus here, buying property or firms (maybe at inflated prices) that only exist because of the high growth rate in the first place. In a framework where certain imports of goods or services end up contributing to the creation of capital (of which some is sold to the exporting parties), the trade deficit might be more of a catalyst than a cost. In the short run, we show a current-accounts deficit; in the long term, the resulting capital creation (and thus future productive potential) is much greater than the proportion of the capital stock that is sold off to repatriate the dollars exchanged in trade early on. This would depend, though, on the US market having certain characteristics making it a uniquely high-return locaion for investment.
Russian cyberattacks compromise power and water plants in the US and Europe
A Symantec executive says "They have the ability to shut the power off. All that's missing is some political motivation". One particular piece of the New York Times report puts the problem in stark terms: "[A]t least three separate Russian cyberoperations were underway simultaneously. One focused on stealing documents from the Democratic National Committee and other political groups. Another, by a St. Petersburg 'troll farm' known as the Internet Research Agency, used social media to sow discord and division. A third effort sought to burrow into the infrastructure of American and European nations." That doesn't preclude the possibility of yet other operations, as well. That's what makes the use of cyberwarfare so unnerving: It involves asymmetries between the inputs required and the outputs it can create. Thus it is highly attractive to those parties that calculate a low cost (in terms of retaliation) for high potential gain. This might be a good time for private and public parties in places like the United States to consider having a backup plan, like secondary operating systems.
Queen Elizabeth "consents" to her grandson's marriage
Queen Elizabeth ascended to the throne in 1952. Imagine if we were talking today about Harry Truman (POTUS in 1952) "giving consent" to permit his grandson to marry an actress from the UK. The institution itself is such a peculiar artifact of past civilizational habits that it's interesting to superimpose their order on our facts and see how it would look. All monarchies (even parliamentary ones) are a bit silly -- but if their political gravity didn't matter, they would be republics by now. There's an implicit public consent to the status quo which itself is a form of political power.
Putting "savings" into Daylight Saving Time
Give us back the hour -- with interest!