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Saturday, 18 June 2016

So Britain, are you ready to enter the United Kingdom of Ukip?

Marina Hyde in The Guardian


 

‘Don’t get me wrong on Nigel – he’s fine for a fag, a pint, some jolly japes on the Thames.’ Illustration: Nate Kitch

Right now, in the Ukip bunker, there is a search going on. It is urgent. It is probably desperate. It is the search for a tone. The emotional Rolodex of Nigel Farage is being riffled through in the hope it might throw up something usable. Top presentational aides have been dispatched on a vital quest to find the outer limits of his range. The journey is unlikely to detain them very long. Yet at the most recent reckoning Farage stands a few disputed percentage points away from being acclaimed – like it or not – the most extraordinarily successful British politician of a generation. Globally, he may soon be seen as reflecting us.

A man who yesterday morning was standing in front of a poster eerily similar to genuine Nazi propaganda is today in seclusion, his campaign suspended – like all the official referendum efforts - “out of respect”. And, presumably, out of uncertainty as to what the hell he does next.

Yesterday morning Farage was playing dog-whistle politics. Forgive me: he was playing whistle politics. Understanding the import of the words “BREAKING POINT” across a snaking queue of stricken brown-skinned people does not require ultrasonic capabilities. You can stand down, Lassie. You’re not needed today, girl.

Yesterday afternoon, the MP Jo Cox was killed in the street in her Batley and Spen constituency. That her alleged killer had years of mental health issues seems likely. That he is alleged to have shouted, “Britain first” – perhaps a reference to an organisation with which Ukip were last year forced to deny an electoral pact – is a matter of acute sensitivity. If the party barkers were a hundredth as careful about anything else as they are instructing everyone to be about that alleged “Britain first” cry, then they would have moderated themselves into retirement years ago.

“We are not won by arguments that we can analyse,” the great liberal supreme court justice Louis Brandeis observed, “but by tone and temper; by the manner, which is the man himself.”

Character is not always destiny, but tone matters. As we head towards polling day, all eyes must be on the man himself, Nigel Farage, who did more to bring about this referendum than any other, and whose artless, divisive bait-and-switch has felt like its governing spirit. How bound up Britain’s destiny has seemed with the character of this rather small man. Where does Britain’s-most-successful-politician-in-waiting go from here? Cometh the hour, whence cometh the tone?

Farage will, of course, have to find some words that address the utter loathsomeness of where we find ourselves, and the shame and despair it makes many people feel. Like him or not, David Cameron can do this. Like him or not, Jeremy Corbyn did so on Thursday. Together in Birstall, they found the bearing. And then … Well, it ought to be noted mildly that Thursday’s repulsive poster was merely the first in a planned series. Will we see the rest? At this moment of national and personal destiny, will Farage manage to be the politician of stature he assures us he is?

Hitherto, Farage has had a tried and tested shtick for Serious Moments. I notice it all the time now, but I first saw it when I asked him with sledgehammer flippancywhether Nelson Mandela was one of his political heroes. Immediately, Farage lowered his voice and opened his eyes very wide. “He’s a human hero,” he intoned. “That day he came out of Robben Island” – it wasn’t Robben Island, but anyway – “and stood there and forgave everybody, I just thought: ‘This is Jesus.’” Hugely idiosyncratic for a man on the right of the Tory party at the time, considering most of his political soulmates had only just given up wearing “Hang Mandela” badges, but there you go. “I don’t regard him as a political hero,” Nigel went on very quietly and with his eyes still open very wide. “I think he’s on a rather higher plane than that.”

Drop the voice, widen the eyes. He’ll probably do it this weekend. He certainly does it when anyone accuses him of borderline racism. Down goes the voice, as though he is personally trying to smother their insinuation in the appalled hush it deserves. I have to confess the Farage mind trick doesn’t work on me. Instead, every time Nigel deploys it, it makes me think of a Truman Capote line from In Cold Blood. “The quietness of his tone italicised the malice of his reply.”

That the political atmosphere was febrile and fetid before Jo Cox’s death hardly needs stating. “How foul this referendum is,” wrote the novelist Robert Harris this week. “The most depressing, divisive, duplicitous political event of my lifetime. May there never be another.” Boris Johnson’s sister Rachel has since retweeted the observation.

So many of the things that have felt bizarre or even vaguely comic at one Atlantic Ocean’s remove have suddenly alighted on our shores. Lies are knowingly painted on buses; previously unsayable things have been said on platforms that lend them a hideous legitimacy; the word “expert” has become as dirty as the word “Westminster”; and the shift to post-factual political discourse feels rapidly under way. No one is more post-fact than Farage. Asked why he was back on the cigs again this week, he replied: “I think the doctors have got it wrong on smoking.”

Don’t get me wrong on Nigel – he’s fine for a fag, a pint, some jolly japes on the Thames. The entire campaign’s only moment of levity came on Wednesday, as his flotilla did battle with Bob Geldof’s. In fact, it was while aboard Farage’s boat that I saw two children on one of the small remain dinghies and wondered who they were. They looked the same age as my eldest two – about five and three – and I thought how hilarious and exciting mine would have found the whole spectacle. I smiled and waved at them, because there is obviously a law stating that people in or aboard funny forms of transport should always wave at children. I only found out the next day that those children had been Jo Cox’s. Her husband Brendan had tweeted: “Kids seriously disappointed there isn’t another flotilla today.”

My God, the horror. Lying in wait, the unthinkable horror. Twenty-four hours later, Brendan Cox was issuing a statement on his wife’s murder. That he was able to find the words and tone that I am sure I never could in such unimaginable circumstances has been a thing of marvel to so many. We know the heights of humanity when we see them.

And I’m afraid we know when we don’t. I’m not sure I’ve ever heard humanity emanate from Nigel Farage, certainly not convincingly. On the eve of what he hopes will be his finest hour, he must rise to the challenge now. People expect. Britain expects. If you haven’t the words and the deportment for this sort of horror, and the politics that the timetable dictates will have to be conducted while it is still so fresh, then you are not fit for office or the sniff of it.

There are many people I respect and admire voting leave – there are people in my family voting leave. I understand their reasons. But they must stomach the reality that a vote for leave will be taken by Farage and countless others as a vote for him, a vote for his posters, a vote for his ideas, a vote for his quiet malice, a vote for his smallness in the face of vast horrors. Is it worth it?

Friday, 17 June 2016

More freeloaders than free market. How Britain bails out the business chiefs


 
‘In an age of untrammelled greed, company executives are rewarded for cannibalising their businesses and bilking their staff.’ Illustration by Andrzej Krauze


 Aditya Chakrabortty in The Guardian


On Wednesday, two very different men will have to explain themselves. Both appear in London, to a room full of authority figures – but their finances and their status place them at opposite ends of our power structure. Yet put them together and a picture emerges of the skewedness of today’s Britain.

For the Rev Paul Nicolson, the venue will be a magistrate’s court in London. His “crime” is refusing to pay his council tax, in protest against David Cameron’s effective scrapping of council tax benefit, part of his swingeing cuts to social security. In order to pay for a financial crisis they didn’t cause, millions of families already on low incomes are sinking deeper into poverty. In order to pay bills they can’t afford, neighbours of the retired vicar are going without food. The 84-year-old faces jail this week, for the sake of £2,831.

Meanwhile, a chauffeur will drive Philip Green to parliament, where he’ll be quizzed by MPs over his part in the collapse of BHS. A business nearly as old as the Queen will die within a few weeks, leaving 11,000 workers out of a job and 22,000 members of its pension scheme facing a poorer retirement.
There the similarities peter out. Nicolson was summoned to court; Green wasn’t going to bother showing up at Westminster. When the multibillionaire was invited by Frank Field to make up BHS’s £600m pension black hole, he demanded the MP resign as chair of the work and pensions select committee.

But then, Green is used to cherry-picking which rules he plays by. Take this example: he buys Arcadia, the company that owns Topshop, then arranges for it to give his wife a dividend of £1.2bn. Since Tina Green is, conveniently, a resident of Monaco, the tax savings on that one payment alone are worth an estimated £300m. That would fund the building of 10 large secondary schools – or two-thirds of the annual cut to council tax benefits.

Just as Green underinvests in society, so he underinvests in his companies. The man to whom he sold BHS last year, Dominic Chappell, told MPs last week that “for the past 10 or 12 years there had been little or no inward investment in the stores”. A staple of the high street had been run down.

Then again, what incentive has he had to do otherwise? Green bought BHS with just £20m of family money and borrowed the rest. Within four years, he had pulled £400m of dividends out of the firm – 20 times his initial outlay.

He used the same tactic to buy Arcadia – stumping up £9.2m in equity and taking out £1.2bn three years later. This isn’t retailing as you might think of it, it’s balance-sheet shazam – the kind of financial engineering that posed as real business in Britain’s bubble years. And it’s enabled Green to turn major retailers into what Robert Peston, in Who Runs Britain?, calls “giant gushers of cash”.

But in today’s Britain, the poor are forced to pay the unaffordable, while the tax-avoider is honoured for his contribution to society. Green was knighted by Tony Blair, while David Cameron appointed him a government adviser.

Just as Green pretends to be a cheeky chappy even though he went to boarding school, so any charlatan in pinstripes can claim to be a businessperson – and be handsomely rewarded. The barons who run our rail services tout themselves as “investors”, but for every quid they put into their trains, they take out £2.47. That level of underinvestment ensures commuters are never sure of getting in on time and having a seat – but shareholders and managers can make a fortune.

From Margaret Thatcher through Tony Blair to David Cameron, successive prime ministers have preached the virtues of free enterprise. We’ve ended up with an economy comprised of what parliament’s public accounts committee calls “quasi-monopolies” – from water to banks to electricity to public outsourcing – and big businesses being treated as money-sponges to be wrung dry by their owners and managers.

In the 1970s, £10 of every £100 in corporate profits was paid to shareholders. Now between £60 and £70 of every £100 is handed out. Workers, companies and the economy are thus starved of investment and growth opportunities so that, as Andy Haldane at the Bank of England warns, firms are “eating themselves”.

In an age of untrammelled greed, company executives are rewarded for cannibalising their businesses and bilking their staff. The typical FTSE-100 boss is now on a total pay of around £5m, the High Pay Centre calculates, even while the average employee is still earning less in real terms than in 2008.

This is less about the free market than freeloading. The banks collapse and are bailed out. The Sports Direct billionaire Mike Ashley walks away from a collapsed business, giving hundreds of workers 15-minutes notice of redundancy – and handing taxpayers the £700,000 bill to clean up the mess. Tax-avoider Amazon receives tens of millions of public money to build warehouses, and even has a road in Swansea built for it. Richard Branson takes £28m to open a call centre in Wales.

The public pay for apprenticeships, so that companies get readymade workers. We shell out for upgrading the railways. Most of all, we top up poverty pay. Official figures show that 37% of working-age households in this country now take more from the public purse than they pay in. Not because they’re lazy or unemployed – employment has never been so high – but because their bosses can rely on the rest of us to pay their way.

Survival of the fittest? This is a deformed capitalism, barely worthy of the name – and it won’t improve by slinging a few rotten tomatoes in parliament. We need a working capitalism, where the public no longer give away their protections and subsidies for free – but instead make businesses take their responsibilities seriously.

If rail operators rely on taxpayer billions, they should train staff and pay them a living wage. Why shouldn’t big supermarkets that need public planning permission and licensing to trade be required to stock some locally sourced goods? And why shouldn’t local and central government, which allocate billions in procurement and tendering, foster a diversity of business models – from not-for-profit to mutually owned.

Some of you may think such measures impossible, others may see them as baby steps. They should be the first heaves on the pendulum, turning our economy away from the interests of the wealthy to the rest of us.

Last week Nicolson promised: “I shall start paying my tax again when they stop taxing benefits.” Good for him. The rest of us taxpayers should do the opposite: asking businesspeople what they’ll do to deserve our corporate welfare. That question should not just be put to Green and Ashley, but to those who run all our major corporations. Otherwise, we’re merely chasing out a few big names and hanging up a sign over Britain that reads: “Under new owners, business as usual.

Thursday, 16 June 2016

THE MISTRUST OF SCIENCE

By Atul Gawande in The New Yorker


PHOTOGRAPH BY ERIK JACOBS/THE NEW YORK TIMES/REDUX


The following was delivered as the commencement address at the California Institute of Technology, on Friday, June 10th.

If this place has done its job—and I suspect it has—you’re all scientists now. Sorry, English and history graduates, even you are, too. Science is not a major or a career. It is a commitment to a systematic way of thinking, an allegiance to a way of building knowledge and explaining the universe through testing and factual observation. The thing is, that isn’t a normal way of thinking. It is unnatural and counterintuitive. It has to be learned. Scientific explanation stands in contrast to the wisdom of divinity and experience and common sense. Common sense once told us that the sun moves across the sky and that being out in the cold produced colds. But a scientific mind recognized that these intuitions were only hypotheses. They had to be tested.

When I came to college from my Ohio home town, the most intellectually unnerving thing I discovered was how wrong many of my assumptions were about how the world works—whether the natural or the human-made world. I looked to my professors and fellow-students to supply my replacement ideas. Then I returned home with some of those ideas and told my parents everything they’d got wrong (which they just loved). But, even then, I was just replacing one set of received beliefs for another. It took me a long time to recognize the particular mind-set that scientists have. The great physicist Edwin Hubble, speaking at Caltech’s commencement in 1938, said a scientist has “a healthy skepticism, suspended judgement, and disciplined imagination”—not only about other people’s ideas but also about his or her own. The scientist has an experimental mind, not a litigious one.

As a student, this seemed to me more than a way of thinking. It was a way of being—a weird way of being. You are supposed to have skepticism and imagination, but not too much. You are supposed to suspend judgment, yet exercise it. Ultimately, you hope to observe the world with an open mind, gathering facts and testing your predictions and expectations against them. Then you make up your mind and either affirm or reject the ideas at hand. But you also hope to accept that nothing is ever completely settled, that all knowledge is just probable knowledge. A contradictory piece of evidence can always emerge. Hubble said it best when he said, “The scientist explains the world by successive approximations.”

The scientific orientation has proved immensely powerful. It has allowed us to nearly double our lifespan during the past century, to increase our global abundance, and to deepen our understanding of the nature of the universe. Yet scientific knowledge is not necessarily trusted. Partly, that’s because it is incomplete. But even where the knowledge provided by science is overwhelming, people often resist it—sometimes outright deny it. Many people continue to believe, for instance, despite massive evidence to the contrary, that childhood vaccines cause autism (they do not); that people are safer owning a gun (they are not); that genetically modified crops are harmful (on balance, they have been beneficial); that climate change is not happening (it is).

Vaccine fears, for example, have persisted despite decades of research showing them to be unfounded. Some twenty-five years ago, a statistical analysis suggested a possible association between autism and thimerosal, a preservative used in vaccines to prevent bacterial contamination. The analysis turned out to be flawed, but fears took hold. Scientists then carried out hundreds of studies, and found no link. Still, fears persisted. Countries removed the preservative but experienced no reduction in autism—yet fears grew. A British study claimed a connection between the onset of autism in eight children and the timing of their vaccinations for measles, mumps, and rubella. That paper was retracted due to findings of fraud: the lead author had falsified and misrepresented the data on the children. Repeated efforts to confirm the findings were unsuccessful. Nonetheless, vaccine rates plunged, leading to outbreaks of measles and mumpsthat, last year, sickened tens of thousands of children across the U.S., Canada, and Europe, and resulted in deaths.

People are prone to resist scientific claims when they clash with intuitive beliefs. They don’t see measles or mumps around anymore. They do see children with autism. And they see a mom who says, “My child was perfectly fine until he got a vaccine and became autistic.”

Now, you can tell them that correlation is not causation. You can say that children get a vaccine every two to three months for the first couple years of their life, so the onset of any illness is bound to follow vaccination for many kids. You can say that the science shows no connection. But once an idea has got embedded and become widespread, it becomes very difficult to dig it out of people’s brains—especially when they do not trust scientific authorities. And we are experiencing a significant decline in trust in scientific authorities.


The sociologist Gordon Gauchat studied U.S. survey data from 1974 to 2010 and found some deeply alarming trends. Despite increasing education levels, the public’s trust in the scientific community has been decreasing. This is particularly true among conservatives, even educated conservatives. In 1974, conservatives with college degrees had the highest level of trust in science and the scientific community. Today, they have the lowest.

Today, we have multiple factions putting themselves forward as what Gauchat describes as their own cultural domains, “generating their own knowledge base that is often in conflict with the cultural authority of the scientific community.” Some are religious groups (challenging evolution, for instance). Some are industry groups (as with climate skepticism). Others tilt more to the left (such as those that reject the medical establishment). As varied as these groups are, they are all alike in one way. They all harbor sacred beliefs that they do not consider open to question.

To defend those beliefs, few dismiss the authority of science. They dismiss the authority of the scientific community. People don’t argue back by claiming divine authority anymore. They argue back by claiming to have the truer scientific authority. It can make matters incredibly confusing. You have to be able to recognize the difference between claims of science and those of pseudoscience.

Science’s defenders have identified five hallmark moves of pseudoscientists. They argue that the scientific consensus emerges from a conspiracy to suppress dissenting views. They produce fake experts, who have views contrary to established knowledge but do not actually have a credible scientific track record. They cherry-pick the data and papers that challenge the dominant view as a means of discrediting an entire field. They deploy false analogies and other logical fallacies. And they set impossible expectations of research: when scientists produce one level of certainty, the pseudoscientists insist they achieve another.

It’s not that some of these approaches never provide valid arguments. Sometimes an analogy is useful, or higher levels of certainty are required. But when you see several or all of these tactics deployed, you know that you’re not dealing with a scientific claim anymore. Pseudoscience is the form of science without the substance.

The challenge of what to do about this—how to defend science as a more valid approach to explaining the world—has actually been addressed by science itself. Scientists have done experiments. In 2011, two Australian researchers compiled many of the findings in “The Debunking Handbook.” The results are sobering. The evidence is that rebutting bad science doesn’t work; in fact, it commonly backfires. Describing facts that contradict an unscientific belief actually spreads familiarity with the belief and strengthens the conviction of believers. That’s just the way the brain operates; misinformation sticks, in part because it gets incorporated into a person’s mental model of how the world works. Stripping out the misinformation therefore fails, because it threatens to leave a painful gap in that mental model—or no model at all.

So, then, what is a science believer to do? Is the future just an unending battle of warring claims? Not necessarily. Emerging from the findings was also evidence that suggested how you might build trust in science. Rebutting bad science may not be effective, but asserting the true facts of good science is. And including the narrative that explains them is even better. You don’t focus on what’s wrong with the vaccine myths, for instance. Instead, you point out: giving children vaccines has proved far safer than not. How do we know? Because of a massive body of evidence, including the fact that we’ve tried the alternate experiment before. Between 1989 and 1991, vaccination among poor urban children in the U.S. dropped. And the result was fifty-five thousand cases of measles and a hundred and twenty-three deaths.

The other important thing is to expose the bad science tactics that are being used to mislead people. Bad science has a pattern, and helping people recognize the pattern arms them to come to more scientific beliefs themselves. Having a scientific understanding of the world is fundamentally about how you judge which information to trust. It doesn’t mean poring through the evidence on every question yourself. You can’t. Knowledge has become too vast and complex for any one person, scientist or otherwise, to convincingly master more than corners of it.

Few working scientists can give a ground-up explanation of the phenomenon they study; they rely on information and techniques borrowed from other scientists. Knowledge and the virtues of the scientific orientation live far more in the community than the individual. When we talk of a “scientific community,” we are pointing to something critical: that advanced science is a social enterprise, characterized by an intricate division of cognitive labor. Individual scientists, no less than the quacks, can be famously bull-headed, overly enamored of pet theories, dismissive of new evidence, and heedless of their fallibility. (Hence Max Planck’s observation that science advances one funeral at a time.) But as a community endeavor, it is beautifully self-correcting.

Beautifully organized, however, it is not. Seen up close, the scientific community—with its muddled peer-review process, badly written journal articles, subtly contemptuous letters to the editor, overtly contemptuous subreddit threads, and pompous pronouncements of the academy— looks like a rickety vehicle for getting to truth. Yet the hive mind swarms ever forward. It now advances knowledge in almost every realm of existence—even the humanities, where neuroscience and computerization are shaping understanding of everything from free will to how art and literature have evolved over time.

Today, you become part of the scientific community, arguably the most powerful collective enterprise in human history. In doing so, you also inherit a role in explaining it and helping it reclaim territory of trust at a time when that territory has been shrinking. In my clinic and my work in public health, I regularly encounter people who are deeply skeptical of even the most basic knowledge established by what journalists label “mainstream” science (as if the other thing is anything like science)—whether it’s facts about physiology, nutrition, disease, medicines, you name it. The doubting is usually among my most, not least, educated patients. Education may expose people to science, but it has acountervailing effect as well, leading people to be more individualistic and ideological.

The mistake, then, is to believe that the educational credentials you get today give you any special authority on truth. What you have gained is far more important: an understanding of what real truth-seeking looks like. It is the effort not of a single person but of a group of people—the bigger the better—pursuing ideas with curiosity, inquisitiveness, openness, and discipline. As scientists, in other words.

Even more than what you think, how you think matters. The stakes for understanding this could not be higher than they are today, because we are not just battling for what it means to be scientists. We are battling for what it means to be citizens.

Wednesday, 15 June 2016

How to argue with a non listening CEO

Priscilla Claman in Harvard Business Review

A senior vice president I know was working on a merger and had come up against a roadblock.

He pulled the merger implementation team into a room and said: “We’ve analyzed it over and over, but it really isn’t possible to complete this merger in the time frame Walter wants. Now, what do we do?”

Walter was the CEO. He had a reputation for not listening to anyone who disagreed with him. But, missing the merger deadline would be an embarrassing and very public failure. Walter had made a big deal of completing the merger in three months. Someone had to convince him that the merger wasn’t going to happen then, but no one wanted to volunteer. Everyone knew that Walter was a shoot-the-messenger kind of guy.

The team tried several things to get Walter to understand. First, they prepared a data-rich PowerPoint presentation. Walter just waved it away. Then, they hired a respected consultant, who confirmed the fact that it couldn’t be done in the time allotted. Walter just thought she was the team’s patsy. All the while, the clock was ticking, getting closer and closer to failure.

Finally, the SVP came up with something that worked. He knew one of Walter’s buddies who was within months of retirement. Walter wouldn’t fire him. Using all the data the team had prepared, the SVP convinced Walter’s buddy to get the message through to Walter, and disaster was averted.

This true story contains a lot of ideas for how to disagree successfully with a person who is senior to you. Fortunately, there aren’t that many senior managers as unapproachable as Walter out there. Still, disagreeing with someone senior isn’t something you want to do every day. Save it for important issues, even in organizations that say they encourage people to express their own opinions. If you disagree too often, you will get a reputation for negativity.



There are ways to disagree successfully with a senior person without having your head handed to you. Here are some ideas:

Don’t just blurt out your point of view; be strategic about it. Think it through. Why do you disagree? Could your disagreement be perceived as “political?” Or do you have the good of the organization at heart? You are more likely to be believed if you don’t have anything to gain from your point of view.

Make sure you’re right. Senior people usually have access to more information than the people below them. Is there something you might be missing?

Do what the SVP did, and bounce your point of view off of a few trusted peers. If you can’t convince them, you’re probably not going to convince the senior person. Ask for their feedback on how to be persuasive. But don’t ask your direct reports — they may not want to disagree with a senior person!

Prepare a presentation – no loaded words or hypotheticals; use data and charts instead. Keep it businesslike. PowerPoint can help keep your presentation brief and to the point.

Find a respected, credible expert to go over your conclusions. She doesn’t have to be an outside consultant, but she should be recognized for her expertise by your senior person.

The SVP’s buddy strategy is also a good approach. People trust people they are friends with, particularly if they are at the same level in an organization. Find someone you know who is the same rank as the more senior person you are trying to convince. Persuade him using the data you have put together. Then, ask him to share that information with his buddy.



It takes courage to disagree with someone senior to you. But it is a professional skill you need to learn. Sooner or later, like the senior vice president in the story, you will face a situation where you have to disagree. Besides, if you just agree all the time, senior people will think of you as a doormat with nothing to contribute. To gain the respect of senior people, you need to learn when it’s important to disagree, and then, how to do it in a strategic way.

Sunday, 12 June 2016

Arrogant Indian liberals are doing a big disservice to liberalism

Gurcharan Das in Times of India
A few months ago, I was at an attractive event in Delhi, surrounded by elegantly dressed, articulate Indians and a sprinkling of foreigners. Into this privileged gathering walked an awkward young man who someone recognized from Hindi television. He seemed to be lost and was mostly ignored until someone provoked him and there followed a loud, ugly argument over the JNU controversy. He put up a spirited defence of the Hindu nationalist position but he was quickly shouted down. He felt humiliated and left hurriedly. Once he was gone, the ‘secular-liberal’ gathering relaxed, but not before heaping condescension on this ‘low life’ with his ‘crazy ideas.’
I do not believe in sedition and I did not agree with any of the unwanted guest’s arguments. But I felt sorry for him and unhappy at the way he was treated. Of course, he was narrow-minded in his majoritarian approach to minorities; he was bigoted in the way he characterized Muslims. But he was also a vulnerable human being. He was less well-educated, and his weak English put him at a social disadvantage. Instead of empathy, he got supercilious scorn from a self-important liberal establishment that encourages diversity of identity but is intolerant of the diversity of ideas.
Disagree, don’t demonize: A condescending attitude only reinforces resentment and pushes Hindutva supporters deeper into its embrace.Disagree, don’t demonize: A condescending attitude only reinforces resentment and pushes Hindutva supporters deeper into its embrace.
Over the past two years an unhappy divide has grown, something we did not expect when the nation elected Prime Minister Modi on the promise of ‘sabka saath, sabka vikas’. I am a classical (not a left) liberal and do not share the beliefs of Hindu nationalists. I do not eat beef but I will defend your right to eat it. I was disturbed by the violence at Dadri and upset that the Prime Minister reacted so late. A few weeks ago, I was outraged by Swami Adityanath’s bizarre demand for the arrest of Akhlaq’s family for cow slaughter. I deplore the violence of rightwing extremists around the world. Having said this, I am also saddened by the arrogance of my fellow liberals. In the name of tolerance they behave just as intolerantly towards those whose beliefs differ from theirs. They are just as guilty of tribal behaviour as their opponents. And this may be a reason why liberalism is not growing in our country.
The problem with secular liberals is that we go to the same elite schools and universities where the faculty is liberal and left-leaning. Some economics teachers may have shifted after the reforms from Marxism to market-based thinking, but culturally everyone is homogeneous. It is hard for a Hindu nationalist to get into an elite college, either as a student or a teacher. It may be because the candidate is less comfortable in English but there exists a clear bias in favour of liberal privilege. (It is easier, oddly enough, for a Dalit or an OBC to break into elite ranks because of reservations.) If you believe, as I do, that the Hindutva ideology is based on empirically false grounds, we must encourage its supporters to enter top universities and engage in free debate. Only thus will India produce genuine conservative intellectuals, whose arguments will be based on verifiable facts rather than on technological fantasies from the Puranas. By demonizing them or treating them condescendingly, we reinforce resentment and throw them deeper into Hindutva’s embrace. As a result, the liberal ideology remains confined to a small elite. And then we complain, “Why are there so few liberals in India?”
The arrogance of the secular liberal is not only morally wrong, it is bad electoral strategy. If the Congress or the Left parties want to convert the voter to a liberal ideology, they will not succeed by the sort of contemptuous and dismissive talk spokespersons engage in on television screens night after night. Liberals need to remember their own creed: “I disapprove of what you say, but I will defend to the death your right to say it.” Instead, they practise: “I disapprove of what you say; so shut up, you idiot.” This sort of behaviour drives people away. The liberal ideal is too precious to become the preserve of a political party or of sanctimonious intellectuals. It is also not an issue of the Right versus the Left — all Indians must embrace the liberal idea of a plural India that protects minorities. But we shall only win the heads and hearts of people with humility and by example.

The dilemmas of trying to live ethically

Eva Wiseman in The Guardian


My friend and I bought the same book on Amazon, and it changed us, but in quite different ways. The book was Eating Animals by Jonathan Safran Foer, an examination of the gruesome way poultry and cattle are slaughtered to produce cheap meat for people like me. A quarter of the way through I closed it, tucked it on to the shelf – I knew that if I continued to read I would no longer be able to enjoy roast chicken, or Peking duck, or oily lardons knotted in spaghetti. I knew I’d have to be a better person; I’d have to live a slightly less lovely life. I stopped reading. While it opened my eyes to my failings and limits, Becca, who finished the book, became a vegetarian.

As I read about the ethical problems with Airbnb, Uber and every other smiling company that makes our lives easier, I am under no illusions about my own goodness. I believe it is almost impossible to live ethically as a human being. There is no way for humans to inhabit the world, is there, without spoiling something crucial. We are massive ruiners. If we want to stay clean and warm, and if we want to have a laugh, it is highly likely somebody or something will feel the negative effects of our basic joy. And when we do act ethically, isn’t the main gain simply a “sense of wellbeing”, perhaps the most vanilla of the senses? However hard we try, there will be something we get wrong. Since giving up meat, Becca brushes off regular questions from local bores about things like the carbon footprint of her salad, yet on she crunches, trying.

Here are some of the ways in which I am dreadful. Regardless of the books I buy, whether on meat eating or true crime, I continue to buy them from sites that avoid tax and treat their workers like machines, because they arrive so promptly and because they cost 10p plus postage. I pay that 10p on a phone built under slave-like conditions with materials the profits of which may or may not have funded a genocide. More: our flat is on the market for wild and pretend money, which means I am becoming part of the problem crippling my beloved, disgusting city. I even arranged flowers on our kitchen table with the quiet thought that potential buyers might pay even more for a place that smells of sweetpeas. I am scum. Worse, when I see people trying to be better – when I have lunch with Becca, with her peanut noodles and fishless fingers – I feel a silent judgment. It comes from inside me; she doesn’t care what I eat. It’s me. I feel bad about the route my sandwich filling took to get to my plate, and sitting with her reminds me of that, so I will be tempted to try and undermine her choice by asking about the leather of her shoes. Scum. But I guilt-barter. We each have a certain moral budget, and I choose to spend mine on meat and Amazon. I choose my thing.

When you stare straight into the horrors of the modern world, they can blind you. There’s a moment before I click to buy the 10p book when I begin to add up the wrongs I’ve committed that day, that hour. The long shower, with the exfoliator that kills fish, the bottle of water I bought on the way to work. The £7 dress, the potentially trafficked manicure, the leftover lunch I threw away, the lights I left on, the heating in May. And I vow to be better, soon, as payback. My attempts, however, like signing an online petition, barely touch the sides of my shittiness. It is impossible to live ethically.

But how bad should we feel, really? Surely the responsibility shouldn’t all be ours. Products and services should not come to market if there is any chance they have passed through the hands of a slave. It doesn’t sound like too much to ask. And shouldn’t there be an equivalent to the nutritional facts on tins, a label with quantities of evil? We’d be able to budget more effectively – an Amazon Prime here, a speak-up-when-an-acquaintance-makes-a-racist-joke there. That’s how I’m learning to live. A charity bake sale, an Uber home. A meat-free day, but wearing a really cheap T-shirt.
Putting down that book has made me look at how much I choose not to see. It’s no revolutionary realisation, but as we find increasingly meaningless ways to balance our ethical chequebooks, I am embracing my limits. As long as we try not to be the complete worst and accept our scumminess, then there is little point in asking how to be good. The answer, surely, is to try and simply be good enough.

Saturday, 11 June 2016

Economics Struggles to Cope With Reality

Noah Smith in Bloomberg

There are basically four different activities that all go by the name of macroeconomics. But they actually have relatively little to do with each other. Understanding the differences between them is helpful for understanding why debates about the business cycle tend to be so confused.

The first is what I call “coffee-house macro,” and it’s what you hear in a lot of casual discussions. It often revolves around the ideas of dead sages -- Friedrich Hayek, Hyman Minsky and John Maynard Keynes. It doesn’t involve formal models, but it does usually contain a hefty dose of political ideology.

The second is finance macro. This consists of private-sector economists and consultants who try to read the tea leaves on interest rates, unemployment, inflation and other indicators in order to predict the future of asset prices (usually bond prices). It mostly uses simple math, though advanced forecasting models are sometimes employed. It always includes a hefty dose of personal guesswork.


The third is academic macro. This traditionally involves professors making toy models of the economy -- since the early ’80s, these have almost exclusively been DSGE models (if you must ask, DSGE stands for dynamic stochastic general equilibrium). Though academics soberly insist that the models describe the deep structure of the economy, based on the behavior of individual consumers and businesses, most people outside the discipline who take one look at these models immediately think they’re kind of a joke. They contain so many unrealistic assumptions that they probably have little chance of capturing reality. Their forecasting performance is abysmal. Some of their core elements are clearly broken. Any rigorous statistical tests tend to reject these models instantly, because they always include a hefty dose of fantasy.

The fourth type I call Fed macro. The Federal Reserve uses an eclectic approach, involving both data and models. Sometimes the models are of the DSGE type, sometimes not. Fed macro involves taking data from many different sources, instead of the few familiar numbers like unemployment and inflation, and analyzing the information in a bunch of different ways. And it inevitably contains a hefty dose of judgment, because the Fed is responsible for making policy.


How can there be four very different activities that all go by the same name, and all claim to study and understand the same phenomena? My view is that academic macro has basically failed the other three.

Because academic macro models are so out of touch with reality, people in causal coffee-house discussions can’t refer to academic research to help make their points. Instead, they have to turn back to the old masters, who if vague and wordy were at least describing a world that had some passing resemblance to the economy we observe in our daily lives.

And because academic macro is so useless for forecasting -- including predicting the results of policy changes -- the financial industry can’t use it for practical purposes. I’ve talked to dozens of people in finance about why they don’t use DSGE models, and some have indeed tried to use them -- but they always dropped the models after poor performance.

Most unfortunately, the Fed has had to go it alone when studying how the macroeconomy really works. Regional Fed banks and the Federal Reserve Board function as macroeconomic think tanks, hiring top-level researchers to do the grubby data work and broad thinking that academia has decided is beneath it. But that leaves many of the field’s brightest minds locked in the ivory tower, playing with their toys.

Fortunately, this may be changing. Justin Wolfers, a University of Michigan professor and well-known economics commentator, recently presented a set of slides at a conference celebrating the career of Massachusetts Institute of Technology economist Olivier Blanchard. The slides, although short, are indicative of the sea change underway in the macro field.

Wolfers discusses how some of the main pillars of modern academic macro theory are now being challenged. The idea of “rational expectations,” which says that people on average use the correct mental model of the economy when they make their decisions, is being challenged by top professors, and many are looking at alternatives.
But that’s just the beginning -- far deeper changes may be in the offing. Wolfers suggested abandoning DSGE models, saying that they “haven’t worked.” That he said this at a conference honoring Blanchard, who was an important DSGE modeling pioneer, is a sign that the winds have shifted.

In place of the typical DSGE fare, Wolfers suggests that the new macroeconomics will focus on empirics and falsification -- in other words, looking at reality instead of making highly imaginative assumptions about it. He also says that macro will be fertilized by other disciplines, such as psychology and sociology, and will incorporate elements of behavioral economics.

I’d go even farther. I think the new macroeconomics won’t just be new kinds of models and a more empirical focus; it will redefine what “macroeconomics” even means.

As originally conceived, macro is about explaining national-level data series like employment, output and prices. Eventually, economists realized that to explain those things, they would need to understand the smaller pieces of the economy, such as consumer behavior or competition between companies. At first, they just imagined or postulated how these elements worked -- that’s the core of DSGE.

Economists now realize that consumers and businesses behave in ways that are much more complicated and difficult to understand. So there has been increased interest in what’s called “macro-focused micro” -- studies of businesses, competition, markets and individual behavior that have relevance for macro even though they weren’t traditionally included in the field. Examples of this would include studies of business dynamism, price adjustment, financial bubbles and differences between workers.

Let’s hope more and more macroeconomists focus on these things, instead of trying to make big, grandiose, but ultimately vacuous models of booms and recessions. When we understand the pieces of the economy better, we’ll have a much better chance of grasping the whole. If this continues, maybe the ivory tower will have more relevance for the Fed, the financial industry and maybe even for our coffee-house discussions.