Sing, Muse, of the incompetent rage of the police shooters

To my mind, there is only one genuinely surprising thing about the recent police shootings in Dallas, which is that they were carried out with unusual competence. This is also the main reason you're reading about them. Killing multiple police all at once, at a protest that ensured there was already a media presence, is too dramatic to ignore. You can't just paint it as some 'piece-a-shit' incident gone wrong (in Tom Wolfe's memorable phrase).

This puts the media in a difficult bind, because I suspect that they very much would like to ignore this black on white rage, like they do for most such rage. The only thing that could have made it worse would have been if the shooter had used something other than a gun. In that case, progressives would have been deprived of the opportunity to at least try to redirect the conversation to gun control, and the story would already be in the process of being actively memory-holed.

As soon as the reports were suggesting a sniper from an elevated position, my guess was that whoever was doing this had some formal training with this stuff. Sure enough, the shooter was in the Army Reserves. Initial reports said that it was multiple snipers from a triangulated position, which made it even more likely. Now they're saying that it's a lone wolf, but they would, wouldn't they?

To shoot 12 officers, kill 5 of them, and hit only 2 civilians, is a surprisingly difficult task, especially if the shooter was indeed acting alone.

The typical pattern of black rage against police is far less planned, and far more likely to result in immediate arrest before actually killing many, if any, police. To take just the last couple of police shootings in the immediate aftermath, we had the following:

Authorities say a man called 911 in south Georgia to report a break-in, then ambushed and shot the officer who came to investigate. Both men were wounded in the ensuing gunfire, and both are expected to survive.

That is far closer to what I expect. Point blank, ambush, incompetent, resulting in immediate arrest.

This was his best plan to kill as many police as possible - leave a 911 call with his own voice, calling a single policeman to his own home, just to make absolutely sure the police would know who the prime suspect was in the unlikely event that he actually got away. Moreover, his choice of target was a policeman who would already be slightly on edge due to being on an active call.

And that's what you get with actual forward planning. Without that, it's even more incompetent:

In a fourth attack early Friday, a motorist fired at a police car as the officer drove by. In all, four officers were wounded. The officer wounded outside St. Louis is in critical but stable condition. The wounded officers are expected to survive 

A suburban St. Louis police chief says a motorist shot an officer three times as the officer walked back to his car during a traffic stop.

St. Louis County Police Chief Jon Belmar says the suspect, who is in his 30s, ``ambushed'' the officer, who is in critical but stable condition. 

Just taking pot shots with a handgun at cops who happen to be in the vicinity. Great way to end up in prison for decades with a low probability of actually killing anybody, you really stuck it to the man.

As Randall Collins noted in his excellent book (first chapter free here), the probabilities of actually hitting someone in a combat scenario with a handgun are very low. Here's some numbers from police incidents, the highest annual police 'hit' probability from a gunfight is 25%, the lowest is 9%. Now subtract out most of the formal training that police receive, and you can see why these clowns have such a low chance of success in general.

We should be thankful to have such imbeciles as enemies.

The reality is that not many people in the west, black or white, are actually ready for the effective suicide mission of shooting at the police. If you start shooting at figures of official authority, the absolute best case scenario in the overwhelming number of cases is life imprisonment. Most pathways just end up with you dead, like this, or this.

At one extreme, I suspect that most of the the low impulse control rage shootings like the above happen because the perpetrators haven't actually considered the consequences much at all. This explains why they're so poorly carried out. In the west, it's easier to find thoroughly stupid people than suicidal people.

Of course, among those that have considered it in advance, hope springs eternal in the human breast. Most people cling to some small probability that they'll actually get away, even if they don't have a clear idea of the end game.

Hence the preference for being a sniper. It was true here, it was true with John Allen Muhammad. Being a sniper allows a mental "out". Perhaps I won't get caught. Perhaps I'll shoot a few, get away, and live to tell the tale.

If you fully embrace the idea that you're going to die, you could kill a whole lot more people. You might become a suicide bomber, and drive a truck bomb into police headquarters. The optics of this are very bad, of course. Suicide bomber goes to crazy terrorist. Not a good way to spread your message, whatever exactly it is.

So America will continue to have black rage shootings. This has happened before, of course. In the 1970s, this stuff was frequent among black power groups. Just look at the Zebra Murders, which nobody much seems to remember.

The worst worry is that more shooters begin to twig onto the tactics that actually work, in which case you don't want to be around to find out what happens to a) the number of police killed, and b) the homicide rate in your city as police retreat to areas of relative safety.

For the moment, the main thing saving us is the fact that people smart enough to carry out a competent mass shooting are deterred by the fact that they're also smart enough to realise that doing so is a death sentence.

Modernity produces both blind rage and suicide in considerable quantities. It is a small mercy that these don't usually coincide in the same person.

Great Ways to Troll Progressives About Colonialism

Colonialism, in the eyes of the great and the good, is responsible for all of the third world's ills.

This hypothesis is obviously absurd, but if you've ever tried to argue this with a progressive, it turns into a game of whack-a-mole. You point out that social indicators were better under colonialism, they claim that the fact that it got worse afterwards was actually due to the colonialism (how, we are never told - something about borders being too straight or something.).

This is, of course, an enormous game of shifting the goalposts. The only way to win is to pin them down about what the goalposts are ahead of time. Naturally, they will pick goalposts that they think are so narrow that you couldn't possible sneak in. Fortunately, as long as you know more about the history of a couple of what we economists call 'natural experiments', they probably won't pick small enough goalposts even under the most self-serving of definitions.

For instance:

Shylock: Let's assume that colonialism might have some negative effects that survive after it leaves. Presumably these effects don't last forever. How long is it reasonable to use that as an excuse before you have to admit that colonialism can't be the real problem? In other words, if you have a third world country that was colonised by a European power and then gets independence, how long should it be before they're able to become a functional country?

Progressive Foil: (thinking quickly about time frame of African independence, trying to come up with a number greater than the maximum period of independence). Hmm, maybe 100 years. (Thinks again, adds a margin of error). Maybe 200.

SH: Haiti has been independent for almost 225 years, and it's one of the worst places on the planet. How does that work?

PF: (if uninformed) Um...derp...
(if a bit more informed): That's different! They were slaves brought in from all sorts of places with no cultural or linguistic links.

SH: I thought diversity was our strength.

PF: Plus the US Marines occupied it for 19 years in 1914.

SH: That's fair, it's possible that the place was just about to turn the corner after a mere 125 years of dysfunctional independence, I guess we'll never know. Odd that the US occupation was surprisingly functional compared with the rest of its history.

PF: It was not! It was horribly brutal and racist.

SH: I take it you haven't read much about the administration of Papa Doc Duvalier.

PF: (flicks through Wikipedia page) Hmm. Yeah, that's not ideal. But still, you can't make the comparison.

SH: Okay, okay, fair point. Haiti isn't a perfect example. Let's try a different thought experiment. African countries are inevitably marred by their colonial occupation. If we could see what Africa would look like today if it hadn't ever been colonised, it would be a lot more peaceful, rich and stable.

PF: Absolutely.

SH: Ethiopia was never colonised.

PF: Really?

SH: Yes, and you may notice that it's not Switzerland.

PF: Okay, but it's going a lot better than its neighbours.

SH: See, at this point, I know you're just guessing. You know how I know that? Because I researched this in advance. Let's compare Ethiopia with two nearby neighbours that were colonised - Djibouti, which was colonised by the French, and Kenya, which was colonised by the British. Here's a few numbers.

Ethiopia: GDP Per Capita (Nominal) $575. Homicide Rate: 12.0 per 100,000. Life Expectancy: 64
Djibouti: GDP Per Capita (Nominal) $1692. Homicide Rate: 10.1 per 100,000. Life Expectancy: 61
Kenya: GDP Per Capita (Nominal) $1416. Homicide Rate: 6.4 per 100,000. Life Expectancy: 61.

PF: Ah ha! Their life expectancy is 3 years higher!

SH: Yes, I took a fair sampling of statistics, not just ones that support my case. But compared with its neighbours there's more murders, and they're literally one third as rich. You were the one claiming that Africa would be functional except for colonialism. A life expectancy of 64 puts it up there with paragons of civil society such as Yemen and Senegal. I'm even willing to grant you that it's broadly similar to its neighbours, but this doesn't exactly prove your case.

PF: Hmm, this is a puzzle. I'm sure I'm still right, but I need to research this more.

As Mencius Moldbug once said, I will win because I know all of his arguments and he knows none of mine.

The worst law in London

What does absurd government monomania in the face technological irrelevance look like?

Back in the early years of the 20th century, before computers had become widespread, the word 'calculator' actually referred to people. They would perform large numbers of arithmetic calculations, essentially being a slow and kludgy version of a spreadsheet.

Let's suppose, hypothetically, that being a human computer was a licensed and highly regulated profession in 1920. The government required you to study for years, and prove that you could do hundreds of long division calculations without making a mistake. A whole mystique grew up about 'doing the sums', the examination required to become a calculator. Only licensed calculators were permitted to perform arithmetic operations for more than half an hour a day in a commercial setting

Then IBM popularises the computer, and  Richard Mattessich invents the spreadsheet, and it becomes totally clear to absolutely everybody that 'doing the sums' is completely worthless as a skill set. Not only is keeping the current regulation raising costs by a lot, but it's producing huge deadweight loss from all the people devoting years of their life to studying something that's now completely redundant.

What do you think the response of the government and the public would be once it became apparent that the new technology was cheap and easily available? Immediate repeal of the absurd current regime? Outcry and anger at the horrendous government-mandated inefficiency?

Ha! Not likely,

I suspect the old regime would trundle merrily along, and the New York Times would write philosophically-minded pieces extolling the virtues of it.

Because, dear reader, there actually exists regulation exactly this disgraceful - The Knowledge, the required examination for London taxi drivers.

The New York Times Magazine wrote a long piece describing just how much taxi drivers are required to memorise:

"You will need to know: all the streets; housing estates; parks and open spaces; government offices and departments; financial and commercial centres; diplomatic premises; town halls; registry offices; hospitals; places of worship; sports stadiums and leisure centres; airline offices; stations; hotels; clubs; theatres; cinemas; museums; art galleries; schools; colleges and universities; police stations and headquarters buildings; civil, criminal and coroner’s courts; prisons; and places of interest to tourists.

 Test-takers have been asked to name the whereabouts of flower stands, of laundromats, of commemorative plaques. One taxi driver told me that he was asked the location of a statue, just a foot tall, depicting two mice sharing a piece of cheese. It’s on the facade of a building in Philpot Lane, on the corner of Eastcheap, not far from London Bridge.

What, in the name of all that is holy, is the purpose of making it a legal requirement of driving a taxi that you can name the location of a foot-tall statue of two mice that exists somewhere in London?

In the first place, the demand for finding the location of a statue like this from your taxi driver is zero. A precisely estimated zero, as the statisticians say. The revenues side of the ledger is a donut. It is literally inconceivable that the location of this statue has been the subject of a legitimate question towards a London taxi driver in the history of the entire profession. The only benefit is rent-seeking and limiting the size of the taxi industry. So why not just make them memorise the Roman Emperors in chronological order, or the full text of War and Peace? It would serve just as much purpose.

Not only is there no value to your taxi driver knowing this, but if I type in 'statue of two mice in London' into Google, the first image lists the location as 'Philpot Lane'. (The only sites that come up, ironically, are ones referencing the damn test, suggesting just how pointless this knowledge is). The internet has made memorising this kind of trivia, for all possible sets of London trivia, irredeemably useless.

Everything a taxi driver needs to know has been replaced by a smartphone. Everything. Which is why every man and his dog can drive Uber around just fine.

So what threadbare arguments does the NYT offer when, three quarters of the way through the article, it finally gets around to discussing the question of whether this damn test is worth anything?

Taxi drivers counter such claims by pointing out that black cabs have triumphed in staged races against cars using GPS, or as the British call it, Sat-Nav. Cabbies contend that in dense and dynamic urban terrain like London’s, the brain of a cabby is a superior navigation tool — that Sat-Nav doesn’t know about the construction that has sprung up on Regent Street, and that a driver who is hailed in heavily-trafficked Piccadilly Circus doesn’t have time to enter an address and wait for his dashboard-mounted robot to tell him where to steer his car.

Okay, I'll bite. They beat them in staged races by... how much? One minute? Maybe two? Perhaps 60 or 70% of the time? And the value of this time-saving is what, exactly? How does it compare to the extra time the person waited trying to hail a cab because of the artificial limit on the number of taxis?

It seems that New York Times writers are not required to distinguish between statements like 'the revenue side of the income statement here has literally no items on it' and the statement 'this is a positive NPV project that should be invested in'. Disproving the first statement is sufficient to establish the truth of the second. Look, there's a benefit! Really! See, it shows it must be a good idea to do the project.

Perhaps sensing the unpersuasive ring of this argument to anyone who's ever ridden in an Uber and found it cost 40% of the price, we then get another tack:

Ultimately, the case to make for the Knowledge may not be practical-economic (the Knowledge works better than Sat-Nav), or moral-political (the little man must be protected against rapacious global capitalism), but philosophical, spiritual, sentimental: The Knowledge should be maintained because it is good for London’s soul, and for the souls of Londoners. 

Well, in that case!

But riddle me this - how, exactly, can I tell whether this egregious rent-seeking and artificial deadweight loss monopoly is good for London's soul? 

The Knowledge stands for, well, knowledge — for the Enlightenment ideal of encyclopedic learning, for the humanist notion that diligent intellectual endeavor is ennobling, an end in itself. 

'Enlightenment'. You keep using that word, I do not think it means what you think it means.

Learning is definitely good. Government-mandated learning, especially when used as part of banning the consensual commercial activity of many individuals, is a wholly separate matter.

Just ask someone from the Enlightenment, like John Stuart Mill:

But, without dwelling upon supposititious cases, there are, in our own day, gross usurpations upon the liberty of private life actually practised, and still greater ones threatened with some expectation of success, and opinions propounded which assert an unlimited right in the public not only to prohibit by law everything which it thinks wrong, but in order to get at what it thinks wrong, to prohibit any number of things which it admits to be innocent.

Like, for instance, driving a cab without studying for years to satisfy a ludicrous exam requirement. 

But it's not just the higher taxi fees and difficulty getting a cab at the wrong time of night that make up the real tragedy here. What's the human toll of making every potential taxi driver learn this kind of nonsense, regardless of whether they ultimately succeed?

McCabe had spent the last three years of his life thinking about London’s roads and landmarks, and how to navigate between them. In the process, he had logged more than 50,000 miles on motorbike and on foot, the equivalent of two circumnavigations of the Earth, nearly all within inner London’s dozen boroughs and the City of London financial district. 

 It was now 37 months since he’d paid the £525 enrollment fee to sign on for the test and appearances. “The closer you get, the wearier you are, and the worse you want it,” McCabe said. “You’re carrying all this baggage. Your stress. Worrying about your savings.” McCabe said that he’d spent in excess of £200,000 on the Knowledge, if you factored in his loss of earnings from not working. “I want to be out working again before my kids are at the age where someone will ask: ‘What does your daddy do?’ Right now, they know me as Daddy who drives a motorbike and is always looking at a map. They don’t know me from my past, when I had a business and guys working for me. You want your life back.”

Apparently this must be a strong case of the false consensus effect, because reading this paragraph filled me with furious rage, but the NYT writes about it as one of those quaint things they do in old Blighty.

In the end, McCabe gets his license, so it's all a happy story!

He does not, however, get the three years of his life and £200,000 back.

How on earth do the parasites who run the testing and administration of this abomination justify all this to themselves? How do they explain their role in this shameful waste of money and fleeting human years, the restrictions on free and informed commerce, the ongoing fleecing of consumers, and the massive, groaning, hulking, deadweight loss of this monstrous crime against economic sense and liberty?

They must be either extraordinarily intellectually incurious, morally bankrupt, or both.

As the Russians are fond of saying, how can you not be ashamed?

Of Behavioural Red Flags and Unfunded Campaign Promises

One of the key meta-points of the rationality crowd is that one needs to explicitly think about problem-solving, because one's intuitions will frequently be wrong. In general, sophistication about biases is crucially important - awareness of the possibility that one might be wrong, and being able to spot when this might be occurring. If you don't have that, you'll keep making the same mistakes over and over, because you won't consider that you might have screwed up last time. Instead, the world will just seem confusing or unfair, as unexpected (to you) things keep happening over and over.

For me, there are a number of red flags I have that indicate that I might be screwing something up. They're not ironclad indications of mistakes, but they're nearly always cause to consider problems more carefully.

The first red flag is time-inconsistent preferences (see here and here). When you find yourself repeatedly switching back and forth between preferring X and preferring Not X, this is usually a sign that you're screwing something up. If you go back and forth once or twice, maybe you can write that off as learning  due to new information. But if you keep changing your mind over and over, that's harder to explain. At least in my case, it's typically been due to some form of the hot-cold empathy gap - you make different decisions in cold, rational, calculating states versus hot, emotionally charged states, but in both types of state you fail to forecast how your views will predictably change when you revert back to the previous state. I struggle to think of examples of when repeatedly changing your mind back and forth over something is not in fact an indication of faulty reasoning of some form.

The second red flag is wishing for less information. This isn't always irrational - if you've only got one week to live, it might be entirely sensible to prefer to not find out that your husband or wife cheated on you 40 years ago, and just enjoy the last week in peace. (People tempted to make confessions to those on their deathbed might bear in mind that this is probably actually a selfish act, compounding what was likely an earlier selfish act). But for the most part, wishing to not find something out seems suspicious. Burying one's head in the sand is rarely the best strategy for anything, and the desire to do so seems to be connected to a form of cognitive dissonance - the ego wanting to protect the self-image, rather than admit to the possibility of a mistake. Better advice is to embrace Eugene Gendlin

What is true is already so.
Owning up to it doesn't make it worse.
Not being open about it doesn't make it go away.
And because it's true, it is what is there to be interacted with.
Anything untrue isn't there to be lived.
People can stand what is true,
for they are already enduring it.

The third red flag is persistent deviations between stated and revealed preference (see, for instance, here and here). This is what happens when you say you want X and are willing to pay for it at the current price, and X is within your budget set, and you keep not purchasing X. The stated preference for liking X is belied by the revealed preference to not actually buy it. Being in the budget set is key - if one has a stated preference for sleeping with Scarlett Johannson but is not doing so, this is unlikely to be violating any axioms of expected utility theory, whatever else it may reveal.

Conflicts between stated and revealed preference may be resolved in one of two ways. As I've discussed before, for a long time I had a persistent conflict when it came to learning Spanish. I kept saying I wanted to learn it, and would try half-heartedly with teach yourself Spanish MP3s, but would pretty soon drift off and stop doing it.

This inconsistency can be resolved one of two ways. Firstly, the stated preference could be correct, and I have a self-control problem: Spanish would actually be fun to learn, but due to laziness and procrastination I kept putting it off for more instantly gratifying things. Secondly, the revealed preference could be correct: learning Spanish isn't actually fun for me, which is why I don't persist in it, and the stated preference just means that I like the idea of learning Spanish, probably out of misguided romantic notions of what it will comprise.

Having tried and failed at least twice (see: time-inconsistent preferences), I decided that the second one was true - I actually didn't want to learn Spanish. Of course, time-inconsistency being what it is, every few years it seems like a good idea to do it, and I have to remind myself of why I gave up last time.

Being in the middle of one such bout of mental backsliding recently, I was pondering why the idea of learning another language kept holding appeal to me, even after thinking about the problem as long as I had. I think it comes from the subtle aspect of what revealed preference is, this time repeated with emphasis on the appropriate section:

when you say you want X and are willing to pay for it at the current price, and X is within your budget set, and you keep not purchasing X

Nearly everything comes down to actual willingness to pay. Sure, it would be great to know Spanish. Does that mean it is great to learn Spanish? Probably not. One thinks only of the final end state of knowledge, not of the process of sitting in the car trying to think of the appropriate Spanish phrase for whatever the nice-sounding American man is saying, and worrying if the mental distraction is increasing one's risk of accidents.

Of course, it's in the nature of human beings to resist acknowledging opportunity cost. There's got to be a way to make it work!

And it occurred to me that straight expressions of a desire to do something have a lot in common with unfunded campaign promises. I'll learn the piano! I'll start a blog! I'll read more Russian literature!

These things all take time. If your life has lots of idle hours in it, such as if you've recently been laid off, then great, you can take up new hobbies with gay abandon.

But if your week is more or less filled with stuff already, saying you want to start some new ongoing task is pointless and unwise unless you're willing to specify what you're going to give up to make it happen. There are only so many hours in the week. If you want to spend four of them learning piano, which current activities that you enjoy are you willing to forego? Two dinners with friends? Spending Saturday morning with your kid? Half a week's worth of watching TV on the couch with your boyfriend? What?

If you don't specify exactly what you're willing to give up, you're in the exact same position as politicians promising grand new spending schemes without specifying how they're going to pay for them. And this goes doubly so for ongoing commitments. Starting to listen to the first teach-yourself-Spanish MP3, without figuring out how you're going to make time for the remaining 89 in the series, is just the same as deciding you want to build a high speed rail from LA to San Francisco, and constructing a 144 mile section between Madera and Bakersfield without figuring out how, or if, you're going to be able to build the whole thing.

And like those politicians you scorn, you'll find yourself tempted to offer the same two siren-song mental justifications that get trotted out for irresponsible programs everywhere.

The first of the sirens is that you'll pay for the program by eliminating waste and duplication elsewhere. Doubt not that your life, much like the wretched DMV, is full of plenty of waste and duplication. But doubt it not as well that this waste and duplication will prove considerably harder to get rid of than you might have bargained for. If your plan for learning Spanish is 'I'll just stop wasting any time on the internet each day'... yeah, you're not going to get very far. Your system 2 desire to learn piano is like Arnie, and your desire to click on that blog is like the California Public Sector Unions - I know who my money's on. The amount of waste you can get rid of is probably not enough to fund very much activity at all. Just like in government.

The second siren is the desire to just run at a budget deficit. The area of deficit that almost always comes up is sleep. I'll just get up and hour earlier and practice the piano! Great - so are you planning to go to bed an hour earlier too? If so, we're back at square one, because something in the night's activities has to be cut. If not, do you really think that your glorious plan to switch from 8 hours a night to 7 hours a night, in perpetuity, is likely to prove feasible (absent long-term chemical assistance) or enjoyable (even with such assistance)? Every time I've tried, the answer has been a resounding 'no'. I say 'every time' advisedly, as this awful proposal manages to seem appealing again and again. You can in fact live on less sleep for extended periods - just ask parents with newborn children. It's also incredibly unpleasant to do so - just ask parents with newborn children. They'll do it because millions of years of evolutionary forces have caused them to feel such overwhelming attachment to their children that the sacrifice is worth it. And you propose to repeat the feat to learn the piano? That may seem like a great idea when you start out for the first night, fresh from a month of good sleeping. It seems like less of a good idea the next morning when your alarm goes off an hour earlier than usual. And I can assure you it almost certainly will not seem like a good idea after a month of being underslept, should you in fact get that far. Iterate forward, and don't start.

The real lesson is to only undertake things that you're actually willing to pay for. If you don't know what you're willing to give up, you don't actually know if you demand something, as opposed to merely want it. Confuse the two at your peril.

Lies, Damn Lies, and STD Risk Statistics, Part 2

Continued from Part 1.

If you've just joined us, we're giving a good fisking to the Mayo Clinic's worthless list of STD risk factors, namely:

Having unprotected sex. 
Having sexual contact with multiple partners. 
Abusing alcohol or using recreational drugs. 
Injecting drugs. 
Being an adolescent female 

The biggest proof that their advice is completely worthless comes from the full description of the first point, 'having unprotected sex'. At a very minimum, they don't make the most minimal distinction between vaginal, anal and oral intercourse. But even within that, the whole thing is basically a ridiculous scare campaign:

Vaginal or anal penetration by an infected partner who is not wearing a latex condom transmits some diseases with particular efficiency. Without a condom, a man who has gonorrhea has a 70 to 80 percent chance of infecting his female partner in a single act of vaginal intercourse. Improper or inconsistent use of condoms can also increase your risk. Oral sex is less risky but may still transmit infection without a latex condom or dental dam. Dental dams — thin, square pieces of rubber made with latex or silicone — prevent skin-to-skin contact.

This one I know is in the 'deliberately misleading to fool the public' category. You know why? Because they use the weasel words 'some diseases'. They then back it up with the gonorrhea example, where one-off unprotected vaginal transmission rates are high. But people don't generally stay up late at night freaking out about getting gonorrhea, do they? As a matter fact, you don't hear about it much, because it can be treated with antibiotics. What people actually worry about the most is HIV. Why not tell them about that instead?

So what are the chances of HIV transmission from unprotected vaginal intercourse with someone who is HIV positive? This is such a classic that I want to put the answer (and the rest of the post, which gets even more awesome by the way, though you may not believe it's possible) below the jump. Suppose a man and a woman have unprotected vaginal intercourse once. 

a) If the man is HIV positive, what is the chance the women contracts HIV?

b) If the woman is HIV positive, what is the chance the man contracts HIV?

Lies, Damn Lies, and STD Risk Statistics, Part 1

Every time I read anything about STD risks, I tend to get mightily annoyed at how difficult it is to get any useful information from the medical profession, at least in the popular press, about the actual magnitude of different types of risks. I remember talking about this problem in the case of cancer risks and smoking. Smoking causes cancer, living under power lines causes cancer, and eating burnt steak causes cancer, but they do not all cause cancer at anything like the same rate. Same thing with STDs. I sometimes find it hard to tell how much of this is because the people writing it are morons when it comes to causal inference, and how much is due to them knowing the right answer but spinning nonsense for public consumption, assuming that everyone is a child unable to make their own risk assessments. 

Let's hear from the Mayo Clinic, they're a famous hospital, surely they'll have top quality medical advice about what big ticket items to avoid. And their list of risk factors is ...(drumroll).... :

Having unprotected sex.
Having sexual contact with multiple partners.
Abusing alcohol or using recreational drugs.
Injecting drugs.
Being an adolescent female

Seriously. 

The first thing you know is that what people mostly want to know are estimated treatment effects of particular actions. If I do X, my chance of an infection go up by Y%. Instead, what you get are a mish-mash of treatment effects, correlations with prevalence, correlations with transmission rates, and absolutely nothing on relative magnitudes, all leading to answers that are just laughable.

'Abusing alcohol or using recreational drugs' is hilariously stupid, because it doesn't map to anything directly. It could be correlation, it could be treatment, it could be both, who knows. They explain it as if it's mostly a treatment effect - "Substance abuse can inhibit your judgment, making you more willing to participate in risky behaviors.". In other words, the whole of their advice is that once you're drunk, you might do other stupid stuff. So just list that stuff! Of course, there's a strong correlation between people who get drunk all the time and people who do other stupid things. At a minimum, any treatment effects are going to be wildly heterogeneous. I'm pretty sure if your Aunty Gladys has a few too many sneaky shandies, the increase in her STD risk is zero. If you're a normally sensible person and you get drunk once, the chance of you picking up an STD are similarly low, because I'm guessing that most people will be unlikely to rush out and have anal sex with strangers just because they got drunk, though obviously some will. Most of the effect that makes this a risk factor has to be straight correlation with omitted factors, namely a tendency for reckless and risky behaviour. This is marginally actionable, if it tells you to avoid sleeping with perpetual drunks, but that's about it.

'Being an adolescent female' is even more stupid. The actionable interpretation of the previous statement was that perhaps we were being given correlations with overall prevalence. But how the hell do you interpret this one then? Do you really think that 'adolescent females' have high STD rates? Of course not. They may have higher transmission rates of certain diseases relating to cervical cancer, but this is a very different proposition. In what sane ordering is this among the five biggest STD risks for the general population to worry about? What adolescent females do have is a high rate of unplanned pregnancies, and it would be greatly in their interest to start using condoms regularly. So just say that! Stop trying to sell us a bunch of bull$#!& about how they also have massively high STD risks.

Since this post is already turning into a monster, I'll be back with Part 2 in a few days.

Magical thinking about evolution and the environment

It is almost an article of faith among certain parts of the left that they are the party of science. The right is full of knuckle-dragging, global-warming denying, creationism-boosting ignoramuses. Obviously science will confirm progressive principles.

Of course, this is generally false when it comes to matters of race. But it's also frequently wrong when it comes to various aspects of environmental policy too.

Take, for instance, the problem of species extinction.

Environmentalists take it practically as a given that the potential extinction of any species is a source of grave concern necessitating immediate action, almost regardless of cost. Some tiny fish that you've never heard of might be endangered? Better shut down the water flow to lots of California farmland!

Of course, they never explain exactly what large problem would occur if the damn delta smelt were to go extinct after all. Occasionally, they'll appeal in vague terms to the interconnectedness of ecosystems, and how the whole edifice might come crashing down if any one part is changed, but they never seem to present much evidence for this contention. It's almost as if they feel that they identify so much with all the parts of the natural environment that this excuses them of the need to identify a likely problem for the environment as a whole. Species extinction is an inherent problem in their world.

Here's the actual reality - by the time a species is on the endangered list, it would create very few environmental problems if it actually became extinct.

Mostly this is a simple matter of accounting. If there are in fact only 900 mountain gorillas left in the wild, how much of the rest of the ecosystem can they possibly be sustaining? Not very much. This isn't to say that if the entire continent of Africa were blanketed with mountain gorillas, there would be no consequence to killing them all. But that's not the world we live in. If most of the mountain gorillas have already died out over the decades, this tells you that most of the ecosystem has already adjusted just fine to the absence of mountain gorillas. Whatever the consequences of their absence might be, you're already seeing most of them. Do you see an environmental problem in the world today that you can attribute to a lack of gorillas? I sure don't.

Do you know what part of science tells me that species extinction is not, in fact, an inherent problem for the environment? @#$%ing evolution, that's what. For all the joy that leftists take in using evolution as a club to beat the right (not without some justification, it must be noted), lots of them seem to display a pretty dim grasp of its basics.

You might have thought that the phrase 'survival of the fittest' would have given them a clue, but no. The flip side of 'survival of the fittest' is 'extinction of the unfit'. This is the feature of evolution, not the bug. Some species are hardy and survive. Those that don't either evolve to something sturdier, or they die.

Every glorious species in today's ecosystem is there because some previously glorious species was no longer able to compete and went extinct. We have the Delta smelt because it evolved from or out-competed some other fish that used to be there but now isn't.

You may feel sad that a species goes extinct, but the environment itself doesn't give a rat's. The earth's ecosystem as a whole is incredibly tough and resilient. The form it takes will differ over time, but life will survive. Do you think humans could really destroy all life on the planet deliberately, let alone by accident or negligence? We can't kill all the weeds on our front lawn. We can't even kill all the cockroaches in the average house, despite an entire industry equipped with modern technology devoted exclusively to the task!

Now, there is another reason why we perhaps should mourn species extinction - that we as humans enjoy seeing the splendours of nature in all her forms, and wish to preserve as much of it as possible.

I am actually quite sympathetic to this argument. But proponents should be honest enough to admit that this is only an aesthetic argument. There is no inherent moral basis why all species should be preserved, or why the species is even a relevant unit of account if you cared about animal welfare.

In other words, preserving all the world's species is only an important goal because modern humans generally value it so.

But this is a highly contingent argument - people value lots of stuff, and there are tradeoffs. Perhaps they value the delta smelt to some extent, but they also value cheap food, and farmers not being put out of jobs, and democratic decision-making. There is no particular reason why the continued existence of a relatively unimportant type of fish should dominate all these other things as a categorical imperative. Would you mourn the extinction of the Ebola virus or polio? If not, why should you mourn the possible extinction of man-eating sharks? I'd celebrate it. Good riddance! Think of all the families who would never know that in an alternative universe where the environmentalists got what they wanted, their father might have been eaten by a shark.

Of course, if environmentalists actually acknowledged that this is an aesthetic and contingent argument, they'd need to try to convince people that they actually ought to care about some damn fish they'd never heard of until yesterday.

That, of course, would be beneath their dignity. A rat is a pig is a dog is a boy, after all, and if you don't see it they're not in the mood to explain why.

Me, I'm pro-human, and I'm pro things that humans think are important. Sometimes that includes preserving certain species, particularly ones that are cuddly and photogenic. Sometimes it doesn't.

But doubt it not, the environment will be just fine either way.

A non-rhetorical question for people who believe race has no genetic basis

A certain class of trendy lefty and soft social science academic is fond of asserting loudly that 'race doesn't exist', or 'race is only a social construct', or other such nonsense. Bonus points are awarded when it is also asserted that 'science' has determined that race doesn't actually exist.

If there are any such people reading this diary, I have a proposition for you. I will bet you $1 at 1000-1 odds in your favor that by the end of this article I can ask you a question that you will not be able to give any coherent answer to if race has no genetic basis at all. If I'm right, you can pay me a dollar. If I'm wrong, I'll pay you a grand. Sound fair? We economists believe that those who think they're right should put their money where their mouth is, so here's mine.

One example of the 'race is just a social construct' acolyte is noted nitwit Justice Mordecai Bromberg at the Australian Federal Court. From his judgment in the disgraceful Andrew Bolt case:

"It is now well-accepted among medical scientists, anthropologists and other students of humanity that ‘race’ and ‘ethnicity’ are social, cultural and political constructs, rather than matters of scientific ‘fact’. 

Despite what is now known about the invalidity of biology as a basis for race or ethnicity, legal definitions of Aboriginality, at least until the 1980s, exclusively concentrated on biological descent."

Got that? Mordecai Bromberg's lazy appeal to authority has declared it from the temple mount that everyone knows that race has no biological basis.

For sure, there are aspects of the way that we describe racial groups in casual conversation that vary over time and across countries. There were large changes over time in social acceptability of the Irish and Italians in America, for instance (although it's not clear they were thought of as being 'not white' as much as just 'not desirable'.) Barack Obama's race is viewed differently in America than it would be in Kenya or Brazil.

But this is a very different claim from the one they make, namely that race actually has no genetically identifiable basis at all.

I assert, dear reader, that this claim is laughably, demonstrably stupid, and that it is not hard to show that this is so.

To do this, there are two strands of argument you might consider.

First, you can patiently explain things like Lewontin's Fallacy, and the idea that race is best thought of as capturing the principle components of genetic variation in lots of alleles all at once. Want to bet on how much impact that's going to have?

But a much simpler technique is to pose the following conundrum:

If you go to 23andme, for a hundred bucks they'll send you a tube into which you can put a saliva sample. Send that tube back to them, and they'll analyse it in their lab and tell you the percentage of your ancestry made up by each different racial group.

Now, granted, if you're a diehard sceptic it's hard to prove that there answers are actually correct. But I would wager large amounts of money that if you have a reasonably good knowledge of what your family history is, they will give you answers that line up with that. I will also wager my entire life savings that they will not find that you have a majority of your DNA from an ethnic group that you neither look like nor have any known family history of. If you look white, and your parents look white, and they tell you that their parents came from England, it is vanishingly unlikely that 23andme will tell you that the majority of your ancestors 500 years ago were living in Sub-Saharan Africa.

So here's my $1000 question to Mordecai Bromberg:

How do you think they're able to do that?

No joke. No rhetorical flourish. Take as long as you want to think about the answer. I've got my stack of hundreds at the ready.

In your own mind, how is 23andme actually generating these answers?  How are they able to pretty accurately describe the very same 'social constructs' that your parents were talking about using only information contained in your saliva?

Bear in mind that this is a huge puzzle even if the answers they're giving are imperfect and error prone. How are they able to generate any answers whatsoever? Dumb luck? Guessing? IP or postal addresses? Traces of food you've been eating recently contained in your saliva? Private Investigators?

Be careful which of these you answer, because they're all easily refutable. If it's private investigators digging into your family history, that's easy to test - just secretly send in a saliva sample from someone of a different race and don't tell them, and see what comes back.

But this aside, I genuinely have absolutely no idea how the blank slate see-no-race-hear-no-race crowd explains this magic to themselves.

Jim Goad very aptly described this kind of race fantasy. He called it 'liberal creationism'. And he's exactly right. It is an article of faith, not science. Science made up its mind long ago. The hypothesis that race has no genetic basis is not just falsifiable, but falsified.

A series of mostly rhetorical questions to the people complaining on Facebook about the Indian Supreme Court decision upholding the constitutionality of laws criminalizing homosexual acts

1. The decision itself can be found here. Have you read it, even if only briefly? Did it occur to you to even search for it? Have you read a summary of the main arguments the court advanced? Do you know which protections in the Indian constitution the law was alleged to have violated?

2. In your opinion, is there such thing as a law that is sound policy but nonetheless unconstitutional?

3. In your opinion, is there such thing as a law that is poor policy but nonetheless constitutionally valid?

4. Related to #3, the court stated in its decision:

"It is, therefore, apposite to say that unless a clear  constitutional violation is proved, this Court is not empowered  to  strike  down  a  law merely by virtue of its falling  into  disuse  or  the  perception  of  the society having changed as regards the legitimacy of  its  purpose  and  its need."

Do you agree?

5. If you did not agree in #4, on what basis should the court decide which laws to strike down?

6. If you did agree in #4, how do you personally decide whether you think a law is constitutional or not? How does this relate to your answer to #1?

7. The court concluded its decision with the following:

"While parting with the case, we would like to make it clear that  this Court has merely pronounced on the correctness of  the  view  taken  by  the Delhi High Court on the constitutionality of Section 377 IPC and found  that the  said  section  does  not  suffer  from  any  constitutional  infirmity. Notwithstanding this verdict, the competent legislature  shall  be  free  to consider the desirability and propriety of deleting  Section  377  IPC  from the statute book or amend the  same  as  per  the  suggestion  made  by  the Attorney General."

If you do not like the policy implications of the current decision, why is your displeasure directed at the court, and not the relevant legislature, who has had the power to repeal this law all along but chose not to exercise it? Or the voters for the politicians in said legislature?

8. If a court comes to a decision that supports good policy by utilising arbitrary and shoddy reasoning that departs from what it has stated before, can you think of any negative consequences to this? Do you think these consequences are important or not?

9. Related to #8, what is the value of precedent? Do you think it is important that the likely decision of the court on a particular legal question is mostly predictable in advance to legislators and citizens?

I'm not holding my breath for any answers.

Economists are often astounded at the sheer number of people who have little appreciation for basic principles of economic reasoning. On the other hand, the appreciation for economics is ubiquitous when compared with the legal equivalent - the number of people who have zero conception that a court case has any important dimensions other than whether you personally would have voted to support the law or principle whose constitutionality is being called into question.

Short answers to stupid questions

"Because they enjoy it. Why does anyone do anything?"

The most logical software purchasers, on the other hand....

‘The Best-run businesses run SAP’

Let’s heroically assume that this statement is true.

It’s a long way from this statement to the statement they’re implying, which is that ‘The best-run businesses are well-run because they run SAP’.

It is an even larger stretch from there to the statement they actually want you to believe, namely ‘If you run SAP then you too will become one of the best-run businesses’.

It is depressing, but highly probable, that people too stupid to understand these distinctions are in charge of deciding enterprise software choices for major corporations. At a minimum, the marketing folks at SAP seem to believe that the people in charge of deciding whether to buy their products are actually fools.

The Stupidity of the 'China is a Currency Manipulator' Argument

Sometimes it's hard to know whether stupid-sounding statements by politicians are genuinely believed, or just thrown out there for the rubes. Or both.

One firmly in this category is the line that Mitt Romney kept repeating in the debates, about how China is a 'currency manipulator' and he's going to label them as such on day one of his presidency (presumably so that he can start imposing tariffs. Or maybe just for cathartic value - who knows?)

Romney is not unusually obtuse in this matter - Hillary Clinton has moaned about the same thing in terms every bit as stupid.

Now, is there anything implausible about the claim that China is printing lots of yuan in order to keep their currency low in value? Absolutely not - they are. It's a matter of public record. Is there anything incorrect in the statement that this is hurting  US exports to China, and making Chinese imports in the US more competitive relative to domestically produced goods? No, this too is obvious - it's microeconomics 101.

What is far less clear is the implication that the net effect of all this is negative for the US economy. For a long time, the US deliberately pursued a policy of wanting a strong dollar - i.e. they wanted the yuan to be weak relative to the dollar. Why? For exactly the same reason that politicians are now bitching about - it makes imports cheap, which is great news if you're someone who needs to import things, or if you're worried about keeping inflation low. Frankly I wasn't aware that this policy had even been officially abandoned, but what do I know?

Still, if this were all there were to the debate, I'd let it slide - you don't really expect nuanced economic discussion at these rube-fests.

But what's hilariously unexplored is the question of what exactly China is doing with all those extra yuan they're printing that keeps their currency artificially low. How do these translate into an expensive dollar?

Simple - the Chinese pump tons of money into buying US Treasury Bills. You remember those, right? They're the means by which this thoroughly bankrupt nation keeps running trillion dollar deficits and kicking the can down the road on its untold trillions of unfunded liabilities.

Reader, if China ever took the US up on their offer to stop making their currency cheap by printing yuan and buying T-Bills, do you know what would happen? The viability of US T-Bill auctions would become a hell of a lot less certain. And I can promise you, if (or more likely, when) a US Treasury auction fails, it will create consequences far worse than those of China having a currency that may or may not be too cheap. The specifics of how exactly it would play out is not something that you'd want to explore, as things like stock market crashes, runs on money market funds and bank failures start to become realistic possibilities.

As the Hilltop Hoods put it - like a free trip to Afghanistan, you don't want it.

Do you know who agrees with me about this?

Hillary @#$%ing Clinton, that's who. In between complaining about the Chinese currency being too cheap, she was begging the Chinese to keep buying T-Bills which would keep their currency cheap. At least Romney hasn't descended to that level of stupidity of demanding both [A] and [Not A]. Yet.

It is difficult to help people who know what they want but can't achieve it.

It is nigh on impossible to help people who don't even know what they want.

When those people are running the government, it is even more disturbing.

On the plus side though, there's two positive aspects.

One is that these politicians may not actually believe this nonsense, but might just be cynically manipulating the idiots of the electorate that will determine the outcome of the election.

The other is that the federal reserve is buying so much of the current T-Bill auctions already (by just printing money) that the auctions may never fail, and we'll just get pleasant hyperinflation instead.

Small victories, I suppose.

Digging ditches with teaspoons, Drug War make-work edition

We previously encountered this country's illustrious drug czar, Gil Kerlikowske, here, making ridiculous claims that the drug war has ended under the Obama administration. At the risk of being impolite, it's hard to describe this as anything other than a shameless, bald-faced lie. I mean, sure, the DEA is still locking up college kids for smoking marijuana and leaving them for five days without food or water until they attempt suicide,

But on the plus side, the war on drugs has ended! I take this statement to mean merely that they're relabeled the same old crap sandwich of policies as 'Therapeutic involuntary harm-restraint of at-risk individuals' or 'community protection and engagement policies' or some other junk.

If you were tempted to conclude that Gil Kerlikowske must be a mendacious fool, I have little news with which to dissuade you. Via Radley Balko comes a dispatch from another speech of Kerlikowske's, described here:

"Just last year, the Department of Justice released data that health, workplace, and criminal justice cost of drug abuse to American society totaled over $193 billion...Contributing to the immense cost are the millions of drug offenders under supervision in the criminal justice system"

I'll give Kerlikowske this much credit - he hasn't yet taken his argument to the logical extreme that all this spending is a form of stimulus to the nation's prison warders.

But it's the same old wine of make-work accounting, poured into the slightly new bottles of the credits side of the ledger, instead of the debits.

To white, the argument is in essence: 'Look at all this money I'm spending combating this problem! Surely this illustrates how large the problem itself is, and thus the necessity of the very spending that I'm defending.'

I need to get from my house to the airport. Rather than take a bus or a taxi, I hire the Gil Kerlikowske Party Bus, decked out with government funded champagne, a bouncy castle and gold-plated seat belts, to take me there in style. This runs up a tab of $1000, which I then use to argue how crucial it is to get extra funding to address the obviously dire need of massively increased costs in the airport transportation business. Vote for my policies!

Let's let our favourite 19th Century Frenchman school the fool over this stupidity:

But let us go to the root of the matter. We are deceived by money. To demand the cooperation of all the citizens in a common work, in the form of money, is in reality to demand a concurrence in kind; for every one procures, by his own labour, the sum to which he is taxed. Now, if all the citizens were to be called together, and made to execute, in conjunction, a work useful to all, this would be easily understood; their reward would be found in the results of the work itself.

But after having called them together, if you force them to make roads which no one will pass through, palaces which no one will inhabit, and this under the pretext of finding them work, it would be absurd, and they would have a right to argue, "With this labour we have nothing to do; we prefer working on our own account."

Like M. Bastiat, I too prefer working on my own account. So too do the millions of people locked up in US prisons for non-violent drug offenses. As it turns out, neither of our opinions matters one jot.

Gil Kerlikowske has actually gone one better than the French government. Spending the drug war money on building roads no one will pass through and palaces no one will inhabit would be an enormous improvement on the current situation. Setting the money on fire would be an enormous improvement.

Instead, we spend our money to lay waste to the human capital of the nation's youth, creating untold wages of woe inside the US and abroad.

As I said, in the end it's stupid to blame the politicians for responding to the incentives we give them.

Somebody keeps voting for this madness, year after year. Lots of somebodies, in fact.

The ultimate shame is theirs. What folly, what mad, senseless folly.

Don't tell them it's also linked to tax revenues in the City of London which finance their existence

The BBC has a classic case of 'English Majors Trying To Write About Finance', with this clanger of a headline:

Black-Scholes: The maths formula linked to the financial crash

Bravo! Never mind that the 'financial crash' is nearly universally recognised as being about a crisis in:

-Banks and Bank Runs

-Housing

-Sub-Prime Leverage

-Counter-party Risk

-Contagion

-Over-leverage

none of which have anything  to do with options or the Black-Scholes formula. It's like the Black Scholes formula has become the Economic Whipping Boy that SMBC hilariously described.

Here's a fun game - identify other scary sounding 'linkages' that the BBC may be interested in exploring:

-Chemotherapy linked to patients having cancer

-SAT scores linked to students failing to get into college

-Cars linked to increase in bank robberies

etc.

Like Raaaaaiiiiiinnnnnnnn, on your Wedddddiiiinnnggggg Daaaaayyyyyy

In honour of world backup day being a mere three days ago, the hard drive on my 8 month old Dell laptop decided to die.

The answer to the implied question is, of course, 'No'.

Unless the implied question was 'why on earth would you buy a Dell laptop', to which the answer is' 'if you've ever owned a Lenovo laptop, a Dell laptop seems like an awesome choice by comparison!'. Sure, neither of them work very well, but the Dell is a lot cheaper. The advice to get a Lenovo Thinkpad came from SMH, who had one when they were still the IBM Thinkpad, and his one was excellent. Yeah, the moral of that story isn't hard to figure out. Apparently two other friends of SMH got burned by the same advice though, so I don't feel like a total fool.

Fortunately, I've had enough computers die on me that my friendly IT guy at work left me with a copy of an Ubuntu CD to boot from and rescue as much as possible. Which, thankfully, looks like being most of it.

Good times, good times...

Judgment Jerry, Judgment!

The worst mistakes are the ones you don't realise you're making. The most poignant mistakes are the ones that you don't realise you're making, but everyone else does realise, even though they're unable to help you.

It's time for some Tarantino-style non-sequential narratives about what happens when Silicon Valley co-founders get jilted. The Hacker News discussion is interesting, but I want to focus on another lesson that can't be repeated often enough.

Let's start with the cut-scene at the end, featuring YouSendIt co-founder Khalid Shaikh:

Shaikh agreed to pay $48,194 in restitution to YouSendIt. His sentencing hearing is scheduled for April 30, 2012. The sentencing guidelines recommend six to 12 months of imprisonment, but under the terms of the plea agreement, that may be reduced to house arrest.

Hmmm. How did this happen? Time to cut back to the narrator and where it began:

Ranjith Kumaran didn't found YouSendIt on his own, though. Another man, one whom YouSendIt doesn't like to talk about, wrote the original code, built the first servers by hand, and served as the first president. His name is Khalid Shaikh, and he's 34. He was a computer-engineering student at McGill University and a former intern at Microsoft, and he once worked at Hewlett-Packard and Intel. More recently, he has been living in a Motel 6 outside Denver, awaiting sentencing for launching a cyberattack three years ago that crippled YouSendIt's servers.

There's more details at inc.com, but the story is a common one in Silicon Valley - a bunch of guys start a company, big-time investors come on board, the investors plus one guy feel that the other guy isn't pulling his weight, other guy gets booted. Think the Facebook story, as told in The Social Network. Or Steve Jobs (although there it wasn't Wozniak that booted him).

Except this time the guy who got booted ended up bitter and launched a bunch of denial of service attacks on his former company, and (apparently) added to the poor decisions by messing with their wikipedia page. (Fire the passive-aggressive ion cannon!).

So, on a chilly Tuesday morning in December, Shaikh ran a piece of testing software, called ApacheBench, that flooded YouSendIt's servers with traffic. The servers keeled over immediately. Later that day, a sentence appeared on YouSendIt's Wikipedia page: "Looks like the company may be out of business, their site is down." (Shaikh says he didn't write it.)

Okay, so while I have sympathy with what it must be like to get booted from a company that you start, this guy has some pretty serious judgment issues. Apparently the FBI takes computer crime pretty seriously! Who knew?

So they started nosing around after Shaikh's former co-workers trying to find out what was going on. Shaikh got wind of this. Like a slow motion car crash that you can see coming, which of the following alternatives do you think Shaikh did?

a) Called around to find the best criminal defense lawyer he could

b) Cross his fingers and hope that the whole thing would blow over.

c) Decide to head down to talk to the FBI to straighten the whole thing out himself.

Yeah, no prizes for guessing the outcome:

That night, the couple returned to the FBI office. [Shaikh's wife] Saroash was told to wait in the lobby while her husband was interviewed in an adjoining room. Because it was late on a Friday, and almost everyone at the FBI office had gone home, no one noticed when she got up and listened at the door. Inside, the agents asked Shaikh about his background. He told them about going to McGill, moving to the Valley, founding YouSendIt.

They're just asking about my background! What harm could it do?

The agents began asking Shaikh about buying and selling websites with the teenager. They asked him about a site called e.tv. It had been stolen, they said. They asked Shaikh if he knew anything about the sale of that site. Shaikh wouldn't say. Then they showed him documentation that the money for the sale, about $18,000, had been transferred online using Shaikh's IP address.

Oh. Ooooohhhhh.

Hmm, that's quite a pickle, no?

"That puts me in a very negative light," Shaikh said, according to the FBI report.

1. You don't say!

2. You're going to enjoy hearing that quoted back at you at trial.

"Where do we go from here?" He asked the agents if they knew of any "FBI-friendly attorneys."

Now I'm just feeling sorry for the guy. He's so clueless that he's asking the guys whose job it is to put him in the hole with help on how to get himself out of the hole. Good luck with that.

The couple hired a criminal defense attorney and prepared for the worst.

Like buying a fire extinguisher after you just burned down your house by trying to deep fry a frozen turkey.

About a week after Shaikh's wife gave birth to a girl, their lawyer received discovery documents that included FBI reports. Shaikh had said enough during that meeting to give the FBI plenty of evidence to work with.

No kidding! *facepalm*.

Red hot tip - when the interview is over, you'll always have given the FBI plenty of evidence to work with. Trust me.

In this case, the FBI had already gotten a former friend to wear a wire and record a conversation, so he may have been boned anyway.

BUT WHY WOULD YOU GO TALK TO THE FBI BEFORE YOU'VE HIRED A LAWYER??? Especially when you know you're guilty!!

Remember, these investigators are seasoned professionals whose sole job it is to get you to incriminate yourself. They've done this thousands of times. You've done this... never. Who do you think is going to win?

Like a lamb to the slaughter. 

Suppose that you're too broke to hire a lawyer. What can you do then?

I recommend you follow this 24-carat gold advice from Penn Jillette on what you should do when the FBI wants to talk to you.



Speak to the cops in haste, repent at leisure.

(subject line reference)

Raise Those Prices, Jean-Pierre - The French Government Demands It

The French are determined to continue their unofficial national motto of 'Le Ass, Le Gas or Le Grass - Nobody Can Provide Stuff For Free'.

Check out this classic decision - Google Maps was fined for providing maps for free to businesses.

In a ruling Tuesday, the Paris court upheld an unfair competition complaint lodged by Bottin Cartographes against Google France and its parent company Google Inc. for providing free web mapping services to some businesses....

The French company provides the same services for a fee and claimed the Google strategy was aimed at undercutting competitors by temporarily swallowing the full cost until it gains control of the market.

Trying to provide maps for free, eh? That'll cost you 500,000 euros!

It's true that Google has begun charging for corporations that make large use of their mapping service.

So what can developers do against this vicious, anti-competitive behaviour?

One option is to switch to free, open-source mapping services. Which some companies have indeed started doing.

Now, you may look at this as evidence that there's plenty of competition for Google's free service.

But that just shows that you don't understand French courts! No, instead it is the open source mapping service being equally, if not more, anti-competitive. Once their open source product has driven out the competition, think how much they'll be able to exploit consumers by jacking up their prices!

This is of course in line with the French government putting mandatory prices on books, both electronic and paper. That'll teach you to try to sell products more cheaply.

Never mind that the benefits of lower prices tend to flow the most to the poor.

The French Government - putting the liberté in liberté économique.

Mankiw on SOPA

First off, I am working on fixing what I describe as the Steve Jobs problem - that you generally agree with a lot of what someone says (or does), but you're only motivated to write about the small amount you disagree with.

So, with that in mind N. Gregory Mankiw is a cool dude. I first became a fan of his when he was George W. Bush's Chairman of the Council of Economic Advisers. He distinguished himself by sticking to economic theory even when it was politically unpopular, in particular defending outsourcing as likely to be of economic benefit to America. Which it is, for much the same reason that trade is beneficial - if it's cheaper to build a car in Korea, build it in Korea. If it's cheaper to answer a phone call in India, answer it in India. And with the savings we get, export more in the areas that the US does particularly well. I remember cheering for this even before I knew anything else about him.

Also, in recent days he's done a great job of attacking the 'Warren Buffet pays less tax than his secretary' idea, noting (correctly) that he implicitly pays tax through the tax on corporate income. His blog is always a good read for interesting mainstream economic analysis

So I like a lot of what he writes. And he's impeccably polite in dealing with intellectual opponents, which is exceedingly rare.

But I did find myself a little ... underwhelmed... at his discussion last week of repugnant Stop Online Piracy Act, currently (thankfully) off the legislative agenda, at least in the short term. SOPA, and it's house equivalent, PIPA, sought to make content providers more liable for their user-submitted content, and liable to have their entire site (not just the offending material) taken down if copyright holders alleged any violation. It could also compel search engine sites not to include allegedly infringing sites, with the definition of infringing being shockingly vague. In short, these were terrible Bills, designed to try to pad recording company and movie profits, the viability of the internet be damned. If you want a great summary  of the problems of the bill, Sal Khan of the Khan Academy has a very good rundown.

But Mankiw was more ambivalent.

The anti-SOPA crowd argues that this is a matter of basic liberty. But it's not. In a free society, you don't have the freedom to steal your neighbor's property. And that should include intellectual property. Moreover, it is the function of the state to enforce those rights. We don't leave it up to civil litigation to protect property rights (although that is part of the solution). We give the state substantial powers to stop theft. Just as owners of tangible personal property have good cause to call for a police force and a system of criminal courts, owners of intellectual property have good cause to ask the state to stop those who would infringe on their rights.

I find the statements in bold to be particularly sloppy. And to explain why, let's revert to some terms I cribbed from Mankiw's own 'Principles of Macroeconomics', currently sitting on my bookshelf.

Why is it wrong to steal your neighbour's property? Generally speaking it is because most goods are rival. If I take my neighbour's Ferrari, he is deprived of the use of said Ferrari. Taking the good is thus a pure transfer - I take it, and he doesn't get it.

Now that's manifestly not true of nearly everything that SOPA is targeting. If I copy an MP3 or a movie, I make a replica of the original file. I have not deprived the original owner (that is, the person who had the mp3 on his computer) of anything. To a first order of magnitude, welfare has increased. Before, we only had one copy of the mp3 to be listened to, and now we have two.

What has been lost is the potential funds that might have been transferred to the copyright owner. But this is a nebulous concept - suppose I set the price of my CD at $10 million, and 100 people pirate a leaked demo from the studio. Have I been deprived of $1 billion? Of course not. None of these sales would have taken place absent the piracy. In addition, the world has gained utility ex post, because now 100 more people get the enjoyment of listening to the music.

And Mankiw doesn't just obliquely run into this error in logic - he rams into it head on :

If offshore websites find a way to distribute this intellectual property without paying for it, it is as if organized crime were stealing merchandise from a manufacturing firm at the loading dock. It is neither efficient nor equitable.

No! No it isn't! If I take merchandise from a dock, then the merchandise (which is rival) can't be consumed by anyone else. An mp3 can be consumed over and over. Ex-post, nothing is lost.

There is of course one good argument for these kinds of efforts - that without legally enforced grants of monopoly rents to owners, there won't be enough of these goods produced. This is saying that we need these protections ex ante, because otherwise society won't have a movie industry or a music industry. This is similar in logic to why we need patents - their non-rival nature makes them a public good, and the monopoly rents help them be produced more because the market will not provide enough otherwise.

But is that really true? Yes and no. Piracy represents an existential threat to the movie industry, if  it happens often enough. Nobody is going to spend $300-odd million making Avatar if they're not making a return on it. It's unclear that piracy will get that common, since there really is a benefit to seeing a movie on a huge screen versus on your computer. So there is some tradeoff here.

This seems way less persuasive for the music industry though. People have been making music for millennia, and will continue to do so. Even if piracy becomes complete, the industry will (and already is) evolving into being based off ticket sales for live shows, with free online clips being like promos for the show. This worked as a model for minstrel singers for centuries, and would work now.

And the argument that 'you have a moral obligation to not take anyone's intellectual contribution without paying for it' is ridiculous. Suppose I write a catchy pop song. Should Greg Mankiw have to send me a royalty cheque before he is allowed to play a cover version on the guitar in his own home? Should I need to send Black and Scholes a cheque before I can compute the Black Scholes formula? Of course not. So clearly there is a limit to how much this rule applies.

And this is all such a completely obvious argument that I'm really surprised that Mankiw doesn't make it. Instead he resorts to really weak reasons for defending it. Mankiw personally (as he acknowledges) stands to lose a lot from piracy, as he writes a best-selling economics textbook.

Frankly, if I stood to lose as much as he did, I'd be trying to make much better arguments for SOPA-like laws than the ones he is offering up.

How Password Reset Screens Should Work

There is a long literature on how the password requirements for most websites are ridiculous - they make life hard for users without actually making it that hard for people to crack. There was a great xkcd comic about this which covers the flavour of the problem.

In order to stop random cracking attempts, websites tend to make the following requirements

1. Lock out the user for [some period, e.g. 1 hour] after [N, usually 3] incorrect password attempts

2. Make a requirement about password length and certain characters.

So far, so annoying, but fairly manageable.

Let's assume that the website in question has a lockout attempt at 3 attempts. The problem arises because websites pick different versions of #2. I've come across:
-At least 6 letters
-At least 6 letters and at least one number
-At least 6 letters and at least two numbers
-At least 6 letters and one special character
-At least 8 letters and a number
-At least 8 letters and a special character
-Exactly 8 characters, including [some combination of the above]
-At least 6 letters, no special characters allowed.
etc.

One salient feature of the list - it's got more than three options.

Now, it seems that lots of people generate variants of the same password for each case, depending on the requirement. Give them the requirement, and they know what the password is.

But if you've got a slightly odd password requirement, the vast majority of my incorrect password attempts are me trying to remember what your damn password restriction is!

So what happens is that I'll try the most common case. Wrong. I'll think 'Hmm, does it need a special character' and try that. No luck. And now I can try a third time and risk having to wait an hour, or I can go through another pointless password reset. Sigh.

And there's absolutely no need to do this. It doesn't make life much easier for the hacker to know the requirements.

I'm pretty sure that Progressive Insurance has some bizarre requirement that I keep forgetting, because I think I need to reset my password just about every time I need to log in. Great customer experience, chaps!

So I really wish that more websites would follow Expedia's sterling example:

I dare the system admins to try this, and see how many fewer times the password reset function is used. If you've got a requirement of special characters or two numbers, I'm ballparking that the number of password resets will probably drop at least 80%.

You Keep Using That Word. I Do Not Think It Means What You Think It Means

The probability of a letter from a company containing important information is significantly less when the front is marked 'Important Information Enclosed'.

I recently got one from US Bank that, as far as I can tell, was a letter to remind me that I had a credit card with the,. Thanks for the heads up!