We are developing the social individualist meta-context for the future. From the very serious to the extremely frivolous... lets see what is on the mind of the Samizdata people.

Samizdata, derived from Samizdat /n. - a system of clandestine publication of banned literature in the USSR [Russ.,= self-publishing house]

Economic groundhog day

Keynesian policies will keep us in a constant loop of distorted markets and growing imbalances. They guarantee us a Groundhog Day of economic depression.

— Detlev Schlichter, 8th November 2012

…triple-dip recession…

— The Bank of England, 14th November 2012

Election Party

Patrick Crozier, Michael Jennings and Brian Micklethwait are currently sat around my television discussing the election. We plan to stay here eating pizza and drinking beer for as long as we can stand. I will be posting some sort of running commentary in a hastily prepared chat room. If you want to join in, give yourself a username and leave the password blank.

Ethiopian unschooling

In primary school I very much enjoyed arithmetic. I distinctly remember rattling through activity books with names like “Starting Points” and “Fletcher”. One day, someone, possibly a teacher, alluded to a kind of mathematics that involved letters instead of numbers. It sounded very interesting, and I looked forward to “getting to” that. That was how it was, in school. You sort of learned what you were told to learn.

At the time it did not occur to me that I could just go and study algebra. In fairness I remember individual teachers in later years who gave me out-of-curriculum books to take home. But looking back on this I am left thinking that it is very easy for schools to hold children back, and even beat the enthusiasm out of them. I think the unschooling movement gets a lot of things right. Self-directed learning is more efficient because you are always studying what you are interested in.

Meanwhile, in Ethiopia, we find out what happens when you leave a big pile of tablet computers (loaded with Neal-Stephenson-Diamond-Age-esque software) in a village with no school.

We left the boxes in the village. Closed. Taped shut. No instruction, no human being. I thought, the kids will play with the boxes! Within four minutes, one kid not only opened the box, but found the on/off switch. He’d never seen an on/off switch. He powered it up. Within five days, they were using 47 apps per child per day. Within two weeks, they were singing ABC songs [in English] in the village. And within five months, they had hacked Android. Some idiot in our organization or in the Media Lab had disabled the camera! And they figured out it had a camera, and they hacked Android.

First sale

The US Supreme Court is going to be discussing the legal doctrine of first sale today, in a case that has something to do with school textbooks but will ultimately have further repercussions. Your right to first sale means that you are allowed to sell on books and DVDs that you bought. However publishers are attempting to license, rather than sell, such materials, and these end user license agreements seek to prevent such selling on.

I find it hard to agree with either side in the debate. On the one hand, if you want to sell on a book that you bought in a book shop, this should not be answered with violence. On the other hand, if you write a book and want to sell it on the condition that the buyer does not then sell it on to someone else, this should not be answered with violence. What if you attempt to make this agreement and the buyer then breaks it? Refuse to deal with that buyer again and tell all your friends. Not practical? Consider alternative business models. The state should neither uphold nor prohibit specific business models, and I suspect it should not be involved in contract enforcement either.

For a publisher there are plenty of non-violent solutions, such as encryption, digital rights management, watermarking, subscription services or being so awesome that everyone wants to throw money at you.

Dogs and civil asset forfieture

I have been reading the libertarian sub-Reddit lately. I recommend it. Interesting links are posted, discussion ensues, and thanks to the voting system, interesting comments float to the top. Such as:

Due process has now been reduced to a signal from a dog, which doesn’t even have to be documented.

And why did we do this? What cause was so noble that its pursuit justified the mutilation of our one protection against arbitrary punishment? Oh yeah – protecting people from their own bad decisions.

This is from the discussion of a story from the Institute for Justice about police using an alert from a sniffer dog as an excuse to seize assets even if no drugs are found.

The Institute for Justice is “our nation’s only libertarian public interest law firm”. They have also taken an interest in eminent domain.

You can prise my graphics card

…out of my cold, dead hands. I am always using the tech industry as an example of how wonderful things can be when largely unregulated by governments. But of course it is not really true.

There are currently seven specifications for graphics cards – G1, G2, G3, G4, G5, G6 and G7. Graphics cards of the G7 classification have a bandwidth of 128 GB/s (GigaByte per Second) and more, without an upper limit today. The category depends on the performance – in this case measured in memory bandwidth. These GPU categories are also paired with a certain level of energy efficiency. If a graphics card doesn’t live up to the standard set by the EC it can be removed from all markets within the EU. The rules will now be constricted, which threatens next generation graphics cards.

Blah, blah, blah, etc. The thing to realise is that the EC is taking an arbitrary measurement (memory bandwidth), making arbitrary categories, and then applying energy consumption limits to the categories. But innovation does not work that way. Specialised graphics processing hardware might choose any number of other trade-offs than memory bandwidth to achieve other goals. What will happen now is that human effort will be spent on maximising performance within constraints set by bureaucrats.

Hat-tip to the libertarian sub-Reddit.

Update: The source article has been updated (thanks to Sigivald for noticing). It seems graphics cards with a high enough memory bandwidth are now said to be exempt from the regulations. But this is in itself a restriction and regulations only ever get more restrictive.

Game developers jailed

ARMA III is a realistic first person military simulation game set on an accurate, high-definition rendering of the Greek Island of Lemnos which is close to Turkey. Last year the mayor of Lemnos expressed his displeasure at this, citing the Island’s peaceful reputation, while the head of the town council worried about national security.

This year, two of the game’s developers visited the island and ended up in prison for allegedly taking photographs of military installations there. Perhaps they had not heard of what happens to plane spotters in Greece. They are having to wait in jail for their trial for a long time because Greek judges have gone on strike in protest against austerity measures.

I am not sure what all this means but I will be considering other holiday destinations. Hat tip to Reddit.

Unofficial London Underground signs

What I like about these fake London Underground signs is the implicit disrespect of authority. If this idea catches on, some poor Transport for London official will have to make a statement about the importance and seriousness of signage on the London Underground and the terrible risks of meddling with it. This will only add to the fun, much as the fake cigarette health warning stickers were made funnier by the neo-puritans’ humourless reaction to them.

I want to see more of this kind of misbehaviour.

Choice blindness

Participants completed a survey asking them to agree or disagree with statements such as “large scale governmental surveillance of e-mail and Internet traffic ought to be forbidden as a means to combat international crime and terrorism”. When they reviewed their copy of the survey their responses had been covertly changed, but 69% failed to notice at least one of two changes, and when asked to explain their answers 53% argued in favor of what they falsely believed was their original choice

Whoah. This is from a post on Less Wrong, wherein some more details and links to the study and video, along with discussion.

Consumer protection without government regulation

Anand, I’d like to thank you on behalf of pretty much every single person on the planet. You’re doing an amazing job with making companies actually care about their customers and do what is right.

Thank you so much, and keep up the amazing work.

This comment was left on the Anandtech review of a solid state data storage device. Anandtech is something of a force in the tech world. It reviews computer components, developing ways of testing and comparing them. It describes in detail how they work and how this affects what they can and can not do, and how relatively well they do this or that thing. Because so much detail is provided, and because Anandtech listens to its commenters and makes corrections when errors are noticed, I find it is usually sufficient for my needs to skip to the end of a 10,000 word review, knowing that I can trust the summary.

The quote above is in response to the description of an email conversation between the site’s founder, Anand Shimpi, and top executives at the company producing the solid state drives. The essence of the discussion is that Anand has found that use of internal components from different manufacturers affects the performance of the drive. Customers can not tell what they are getting just by looking at the outside of the product, so he would like the company to label their products accordingly so that customers can decide which ones to buy.

Anandtech is such a force in the tech world that the company immediately agreed.

Imagine that. Improved product labelling without any government regulation required.

Update: title changed as suggested by Brian in the comments.

Excess power

According to the New York Times:

In an attempt to erase a $210,000 penalty the utility said the company owed for [over]estimating its power use, Microsoft proceeded to simply waste millions of watts of electricity, records show. Then it threatened to continue burning power in what it acknowledged was an “unnecessarily wasteful” way until the fine was substantially cut, according to documents obtained by The New York Times.

To which my initial reaction was, “hell, yes. Go Microsoft! You kick ass!”, and my more considered reaction is, yes, that is perfectly rational. Microsoft used “giant heaters” to burn $70,000 worth of electricity in three days and avoid the penalty; an impressive feat.

[Edit for clarity]: The utility “requires large industrial customers to file load forecasts each fall for the next calendar year and face a penalty if they are off by a significant margin in either direction”. Microsoft used less electricity than it forecast and realised it could just burn some up to avoid paying the penalty.

The obvious question is, why would the penalty for overestimating use be more than the cost of the estimated use? It is a question that commenters at the Verge, where I first read this story, are speculating about. My favourite comment here is a response to complaints that all the comments are excusing Microsoft: “I don’t think it’s MS apologists in this instance. They seem more like libertarians and climatology deniers.”

It could simply be that the fees really are in line with the utility’s costs, but in that case Microsoft’s actions would be nothing for anyone to complain about. It seems more likely that some sort of market distortion is going on. The “utility” in question is Grant County Public Utility District, tagline “Community Owned and Operated”. Perhaps there are some clues there.

The Verge also reports on a New York Times crusade against the energy cost of the Internet. Sigh.

The difficulty of establishing a free market in taxi rides

Occasionally a taxi driver will complain to me about the costs of licensing or the expensive safety test he is about to send his car in for. I always suggest that there is no need for taxi licensing at all. The taxi driver does not like this one bit. Of course not: the main purpose of licensing is to restrict supply and keep prices high.

This is rarely admitted. Instead we are warned of the dangers of unlicensed taxis. And dangers there are, but it is nothing that can not be solved with private certification schemes or branding.

The makers of a smartphone app called Uber are currently having various battles with taxi licensing authorities. They want to make it easier for people to order and pay for taxis and presumably in return take a cut of the fares. Price controls, metering and rules about how drivers are paid are getting in their way.

Meanwhile in Chennai, auto-rickshaws (known elsewhere as tuk tuks) are not metered. There is a campaign to have meters installed in them to fix the prices along with “proper” regulation and licensing. One problem people are complaining about is high prices; another is the behaviour of drivers, such as choosing customers and forcing people to share rides. These problems suggest to me that there is a shortage of auto-rickshaws, but my friend from Chennai disagrees. She explains that there are plenty of drivers, but they agree amongst themselves who will take which passenger so that passengers can not choose between drivers to get a better deal. This sounds like union behaviour, and an obvious question with perhaps an obvious answer is: what stops drivers operating outside of the union?

Here is a typical comment from the Missing Meter Facebook page:

the auto stand in my area itself (near perungudi bus stop – OMR)…… they will ask triple the charge if they see me in urge of going (dressed like professional)…. they will not let the autos to stop which are passing by… so we will end up in negotiating with those guys & pay atleast double the amount of real charge… apprx – 20 rs / km… this happens almost all the time….

Establishing free markets is never easy.