Tag Archives: Germany

Germany’s hydrogen trains and boats almost make sense

Germany’s green transition is a disaster. Twenty years ago, Germany had 23 nuclear power plants that generated 30% of the country’s electricity cleanly, cheaply, and reliably. These plants have all been shut by the government as part of a commitment to clean energy. What could be cleaner? Germany has switched to a mix of wind and solar, plus a significant shift to coal power. Wind and solar use a lot of land compared to nuclear, and they break down leaving fields of debris. There is now a lack of electricity to power homes and industries, and what power there is, is unreliable, due to the many dark windless days in Germany.

The lack of reliable electricity is crippling German industry now that Russian gas has been cut off. In this environment, why would the Germans order special trains and boats that burn, hydrogen that’s made from electricity and natural gas? My understanding of the reason is that, Germany sometimes has too much wind power and nothing to do with it. They plan to store this excess by making hydrogen that they can use to power their trains and boats. The cost is high, and the efficiency is poor, but the electricity is free.

Hydrogen is not as compact a fuel as gasoline, nor is it as cheap as electricity, but it’s cleaner than gas, and in some ways it’s better than battery-stored electricity. While hydrogen takes a lot of storage space relative to gasoline, high pressure helps, and the storage is cheaper than with batteries. Also, hydrogen fuel is transferred faster than electric fuels. Trains and ships are chosen for hydrogen because they are good at carrying bulky items. The transition to hydrogen is relatively straightforward with trains, since many are already powered by electricity. Hydrogen fuel cells can make the electricity on board (in theory), while avoiding the need for expensive overhead wires. The idea sort-of makes sense.

Germany’s first hydrogen train. cancelled after 1 year of poor operating.

The first German train to use hydrogen powered them with fuel cells that generated electricity. It began service in October 2022, but the fuel cells proved unreliable. Service ended one year later, October 2023, replaced by polluting diesel (see here). The Hannover line plans to replace these with battery-powered trains over the next few years. There are also plans for a hydrogen-powered ferry, but it is not clear why the ferry should prove more reliable than the train, or cheaper.

San Francisco’s hydrogen-powered ferry, $30 million, 15 knots top speed, 75 passengers, no cars. Long delayed.

In the US, the Biden administration has paid, so far, $30 million for a hydrogen ferry in San Francisco. It’s two years behind schedule and over cost, taking only 75 passengers and no cars at 15 knots, 17mph. In the US, and likely in Germany, most of the hydrogen will be made from natural gas. A better solution, I think would be to power the ferris and trains by natural gas and to store the excess electricity in land-based batteries or as land-based hydrogen for land-based fuel cells.

Germany is committed to electric trains, though, and hydrogen provides a route to power these trains with excess electricity. German customers take the train, in part, because they like them, and in part because German politicians have banned short-hop planes on competing routes, and subsidized electric trains. Yet another option to balance times of excess solar and wind power would be to subsidize electric cars, or at least allow theirs owners to trade electricity: to buy electricity when it’s cheap and resell it to the grid when demand and prices are high.

Robert Buxbaum, June 8, 2024

The Ukraine war could go for years. Don’t make a famine.

Russia is a collapsing, corrupt state with no meaningful elections. It is also the biggest exporter of food, fertilizer, gas, and oil. Nearly 2 years ago, it invaded Ukraine, another collapsing, corrupt, food-exporting state with suspended elections.

Both countries are in the midst of demographic collapse, with Ukraine worse off. Ukraine was invaded though, and thus has the better claim to our support. Then again Russia has atomic bombs. It’s also the largest exporter of wheat (or was), while Ukraine is only the 5th largest (or was before the war). The other three big exporters are the US, Canada, and France. They have benefitted financially, but don’t have near enough output to make up for lost Russian and Ukrainian production.

Ukraine’s grain terminals in flames, Odessa..

Food and energy prices have gone up, world wide, and will probably continue to rise as the war stretches on. This could lead to a global famine and mass starvation, particularly in the poorest areas of Africa, the Mid East, and India. Unfortunately, the war is popular and patriotic, in Europe, Russia, Ukraine, and the US. It’s good business for our armaments industry, and for our recent mega-farmers (like Bill Gates). Also, for our political and spy class. They spend with little government oversight, and just recently misplaced $16 billion. Surely some of that lost money snuck back to the CIA and our politicians’ pockets. We’d have oversight, but “there’s a war on.”

As wars go, the death toll is low, a total of 354,000 dead and injured on both sides, as revealed by recently leaked documents. This is a small fraction of the countries population. Russia has lost 223,000 soldiers killed or wounded, 0.2% of the population, while the Ukrainians had lost 131,000. That’s 0.3%, many of them civilians. The death rate in the two countries during this time was 3.1 million people, 1.8% of the total, mostly from heart disease, accidents, and alcoholism.

The Ukrainian population. Lots of retirees, few kids, very few of military age. This is a disaster, not a country.

Even more destructive to Russia and Ukraine is the demographic collapse. The fertility rate in Russia is 1.5 child per woman, up fro 1.2 in 2000. For a stable population at low infant death, you need about 2.1 children per woman. Russia has had this low rate for a generation, at least 30 years. The net result is that we can expect that Russia’s population will drop by a third or so over the next generation, about 50 million. In Ukraine the fertility rate is even lower, 1.21 per woman, up from 1.1. It’s been this way for 30 years, the equivalent of killing off 1/2 of the population. Aside from leaving the countries full of old people, with no one to do the work, the demographic collapse is producing a cultural shift that virtually guarantees the breakup of Ukraine and the Russian federation. Europe also has this problem, but they have immigration, and that helps a little. Russia has no immigration, and recently resorted to kidnapping Ukrainian children.

The loss of Russian and Ukrainian exports means famine for the poor importers and food inflation for all.

The coming food and energy shortage is likely to lead to mass migration, I expect. Europe has stopped taking delivery of Russian food and energy, in solidarity with Ukraine. Meanwhile Russia has been destroying Ukrainian fields and food infrastructure. Russia ruined a dam last month, flooding Ukraine’s fields, and yesterday destroyed the grain terminals at the port of Odessa,. This was tit-for-tat since Ukraine destroyed a key bridge, and Crimea’s irrigation canal. What’s more, evidence suggests that Ukraine blew up the Nord Stream pipeline — a key source of finance for Russia and Germany. This sort of tit-for-tat escalated to WWI, fueled by a belief, on both sides, that they would win “decisively and quickly.”

The result of WWI is that Germany was the biggest loser, losing men and land, and suffering a killing famine in 1916. It militarized to prevent it happening again, leading to WWII. Germany is the biggest loser of this war, I’d say, aside from Ukraine. I fear it will militarize. Russia invaded Ukraine but claims a need to militarize. Biden’s promise that Ukraine’s will join NATO is a threat to Russia, as is our delivery of F16s, missiles and cluster bombs. We are killing Russians, and Putin doesn’t like it. Add to this, that Ukraine’s claim for independence rests mostly on its Nazi collaboration. For the good of everyone, maybe we can stop adding gasoline to this fire.

Ukraine deserves our support, I think, but that support need not go beyond small-ish arms, energy deliveries, and tariffs on Russian goods. I think we should Ukraine and Russia export food and energy. Even without WWIII, a world famine and a military Germany does no one any good.

Robert Buxbaum, July 20, 2023. When I was a teen, it was a given that war was bad. Now, for some reason, the kids are in for war, especially the more liberal classes. I find this absolutely bizarre.

Britons did better than Germans since Brexit

Britain and Germany are the two largest economies in Europe. When Britain voted to leave the EU seven years ago, 23 June 2016, economists, royals, and the richer, smarter set predicted disaster. The unemployment rate at the time was 5.2% in the UK; economists guaranteed it would rise with Brexit due to the loss of access to the common market. Unemployment fell to 3.7% today: Embarrassing for economists, a bonus for British workers. Germany unemployment today is 5.6%, basically slightly higher than the 4.3% of 2016. There has been a large influx of Ukrainians into both countries, and of illegal boat people into the UK. These are people coming to get jobs, seeking a better life than available in the rest of the EU. That boat people don’t go the other way suggests that things are better in the UK.

Fromm Bloomberg, October 2022. See full article here. UK unemployment is down to 2.5% in February 2023.

Britain’s GDP was supposed to suffer from Brexit, too. Instead, GDP has grown by 18% since 2016, about 2.5% per year on average, outpacing Germany’s 10.6% total growth, 1.5% per year. Between 2016 and 2022, the British GDP rose to $3.19T from $2.7 T. Germany’s GDP increased to $3.57T, from $3.14T (data from the world bank). Separating from the EU helped, it seems and helped us too something Trump promoted. Germany chose close ties to Russia instead. That does not seem to be a big plus.

German Inflation has traditionally been low. It has increased in the past few months due to rising food and energy costs.

Inflation is higher in the UK than in Germany, 10.4% as of February 2023 versus 8.7% in Germany, or 9.9% in the European Union and a whole. I don’t think that’s Brexit. The UK typically has seen higher inflation rate than Germany, something seen by the steady drop of the pound. They have a tradition of inefficiency and silliness. Part of the problem today is that Britain gets much of its electricity from natural gas, while the French use nuclear power. Nuclear is cheap and clean, compared to natural gas. Coal is cheap and dirty; China uses it extensively and plans to use more. But the real cause of the UK’s higher inflation is inherent in the British and Germans, IMHO. The Germans hate inflation, the Brits don’t mind.

Population growth (green) or decline (orange) in Europe

For high-power, white collar workers, Britain seems to be as good a spot as Germany, maybe better. Maximum tax rates are slightly lower than in Germany (45% vs 47.45%), and the population is growing (slowly). Apparently, people like it enough to come there and have children; children are a good sign, IMHO. It’s harder to get good workers, but population growth suggests that the problems won’t be catastrophic (as they were in Japan, and likely will be in Germany). If you want a developed economy with yet-lower taxes, plus good workers, the US is the place to be, IMHO. Our maximum tax rate is 37%. You get fewer free services (healthcare), but you can earn enough to afford it. Prince Harry moved to the US recently, joining foot-baller David Beckham, and Pele a few years back. Former Python, John Cleese, came here too… They complain that Americans are cheap when it comes to helping others (but that’s out attraction). They claim that we’re violent and crass (true enough!) but say that the UK isn’t what it was. The fact that refugees seem to prefer the UK to Germany, suggests that Britain is a place to go. Britain, I’d say seems to have come out pretty well from Brexit.

Robert Buxbaum, April 11, 2023

Germany is the biggest loser in a long Ukraine war

Early in the Ukraine War with Russia, Poland sent 200 T-72 battle tanks to Ukraine. Most other NATO members joined in, sending tanks, missiles, guns, supplies and technology. Germany sent nothing and have continued to avoid helping Ukraine as much as possible while the war dragged on for a year. Germany seems to have hoped for a quick Russian victory leading to a quick return to the pre-war, state of affairs. That’s not likely. Even early on, the war looked like a slow, long slog. Reluctantly, this month, Germany promised to send 18 Leopard tanks to Ukraine, requesting as replacements, mothballed tanks from Switzerland.

Germany is currently the 4th largest economy in the world, just behind Japan, and ahead of India (for now). They also have the 3rd oldest population. Their place as the leading economic and political power in Europe rests on a close relationship with Russia that is fading, bringing Russian goods west and manufacturing with them. Before the war, Germany imported most of its oil and 65% of its natural gas from Russia. Much of the gas came via two direct pipelines, Nord Stream, that bypassed the rest of Europe. Well into the war, while the rest of Europe disengaged, Germany is still buying from Russia and funneling it west: steel, aluminum, titanium, ammonia and platinum. Germany is still buying some Russian natural gas by way of Poland. The German economy is based on turning these materials into cars, high tech machines, and chemicals for export to the US, the EU, and China. Despite the very old population, Germany counts on cheap labor from low wage EU nations. These transient, long term. workers do not get citizenship or retirement benefits. The current war has presented Germany with more potential workers, Ukrainian refugees, but far fewer Russian supplies. The German economy is shrinking, and so far, the Ukrainian refugees have been mostly left unemployed.

Ex German Chancellor, Gerhard Schroeder, with Putin. He’s now head of Nordstream and Rosneft.

German industrial production is down by about 4% this year leaving its GPD at about $4T/year, about where it was in 2018. The US economy and the rest of Europe has grown. For an explanation, consider Germany’s ex-chancellor, Gerhard Schroeder, shown at left with Putin. Schroder remains a leader in the ruling SDP party, the party of Ms Merkel and of the current chancellor. He is also the chairman of the board for Nord Stream AG and of Rosneft, (Russian aerospace). He also sits on the board for Gasprom (Russia’s energy conglomerate), Rothschild, a prominent International bank, and is chairman of the board of the Hannover 96 football club. He is symbolic of Germany’s attachment to Putin and Russia. But the rest of the EU, along with the rest of the developed world, has come to hate Putin and Russia (they’re not too fond of Rothchild either). Europe is unlikely to tolerate Germany’s Russian imports, including titanium (65% of Airbus titanium comes from Russia) or natural gas. Germany has asked for a titanium exception (and been denied). What’s more, three of the four Nord Stream pipelines have been blown up (by whom?) leaving Germany to buy natural gas from its NATO allies: Norway, Britain, France Holland, and the US. Gas purchases are expensive for Germany while helping its NATO neighbors — Germany has asked to be subsidized for energy too (unlikely, imho). It has also restarted old coal-burning power plants, an insult to the EU given how hard Germany pushed them on climate change.

Germany is now near recession. Much of Europe is close, but Germany is worse-off since they are buying from the rest.

Percent of population over 65, CIA Factbook.

Much of the EU can sell gas and food to Germany, and Russia can export to China, India, and Iran. German inflation averaged 8.5% last year (9.2% in January). That is not hyperinflation, but a shock for a country that’s averaged 1% inflation over the last 25 years. US inflation, by comparison was 7.5% last year — due to excess spending by the Democrats (imho), the so- called “inflation reduction act,” but at least the US economy grew, along with the US population. It seems to me that, without Russian supplies, Germany will continue to slip versus the world and versus the EU.

Excess mortality for European countries has been very high for the last 6 months, especially in Germany. Death rates are up by 25% or so. Much of it is heart-related. Perhaps it’s COVID, or long COVID, or air pollution, or vaccines, or depression.

The German population is dying too. They too among the highest percent population over 65, see map. The death rate has spiked 25% over the last 6 months, too. Europe and much of the EU saw similar spikes earlier in the pandemic, partially from COVID, the rest is alcoholism, drugs, the vaccine, pollution, or a psycho-somatic response to isolation and the war. Sweden has largely avoided these problems so far.

Germany has been propping up its inefficient industries with low cost loans. The idea, presumably, is that things will go back to normal soon, and the companies will make good. So far, the war goes on, and the loans discourage competition and modernization. It becomes ever more likely that these inefficient German companies will default. If so, they could take down their lenders as happened in Japan in the 90s, and as happened to Lehman Bros. in the US. The same seems likely for China.

It becomes ever more likely that these inefficient German companies will default.

Even if the war ended tomorrow, it’s not clear that Germany could go back to its pre-war status. The blown Nord Stream pipelines will need a year or more to repair. And may never restart, as sanctions might remain long after the fighting ends, as with Cuba or North Korea. Russia seems to have recognized this possibility, and has begun sending titanium, gas, and oil elsewhere, mostly to Iran, India, and China. Iran has become a major customer of Russian aluminum, and food, and is a major supplier of drones and consumer goods to Russia. In the last two years, the Iranian GDP has doubled to about $2T/year. It is now nearly half the size of Germany’s GDP and growing while Germany shrinks.

Russia’s trade with India and China has grown too. They are working to improve the Trans-Iranian railroad that would allow easy shipments from Russia to India and China via the port of Tehran. The first direct shipment of this sort was completed in July 2022– Caspian Sea containers to an Iranian train to ship to India and China. If the war goes on, Iran, India, and China will benefit at the expense of Germany, it seems. India, in particular. India’s economy is already approaching the size of Germany’s, and will probably pass it with the help of Russia’s energy and raw materials. Meanwhile, Germany is left with an aging population and aging industries; with few suppliers, and no obvious competitive advantages. Europe is almost as badly positioned, but they can still sell to Germany. As for Ukraine, it seems to be doing well, despite the war — or because of it. They still grow and export food and energy, and they are holding their own in the war, for now. There is destruction in the east, but Ukraine might come out stronger, as happened with South Korea and Vietnam. Russia too seems to have found new customers and might come out OK. It is hard to see how Germany comes out well. This, at least, is how I see things today.

Robert Buxbaum, March 8, 2023.

The Brexit, Trump, Johnson anti-crash

Before Brexit, I opined, against all respectable economists, that a vote for Bexit would not sink the British economy. Switzerland, I argued, was outside the EU, and their economy was doing fine. Similarly, Norway, Iceland, and Israel — all were outside the EU and showed no obvious signs of riots, food shortages, or any of the other disasters predicted for an exited Britain. Pollsters were sure that Britain would vote “No” but, as it happened, they voted yes. The experts despaired, but the London stock market surged. It’s up 250% since the Brexit vote.

Lodon stock market prices from January 2016 through the Brexit vote, August 2016, to the Boris Johnson election, August 2019. The price has risen by more than 250%.

A very similar thing happened with the election of Trump and of Boris Johnson. In 2016 virtually every news paper supported Ms Clinton, and every respectable economic expert predicted financial disaster if he should, somehow win. As with Brexit, the experts were calmed by polls showing that Trump would, almost certainly lose. He won, and as with Brexit, the stock market took off. Today, after a correction that I over-worried about, the S+P index remains up 35% from when Trump was elected. As of today, it’s 2872, not far from the historic high of 3049. Better yet, unemployment is down to record levels, especially for black and hispanic workers, and employment is way up, We’ve added about 1% of adult workers to the US workforce, since 2017, see Federal Reserve chart below.

Returning to Britain, the economic establishment have been predicting food shortages, job losses and a strong stock market correction unless Brexit was re-voted and rejected. Instead, the ruling Conservative party elected Boris Johnson to prime-minister, “no deal” Brexiter. The stock market responded with a tremendous single day leap. See above

Ratio of Civilian Employment to US Population. Since Trump’s election, we’ve added about 1% of the working age US population to the ranks of the employed.

You’d think the experts would show embarrassment for their string of errors. Perhaps they would save some face by saying they were blinded by prejudice, or that their models had a minor flaw that they’ve now corrected, but they have not said anything of the sort. Paul Krugman of the New York Times, for example, had predicted a recession that would last as long as Trump did, and has kept up his predictions. He’s claimed a bone rattling stock crash continuously for nearly three years now, predicting historic unemployment. He has been rewarded with being wrong every week, but he’s also increased the readership of the New York Times. So perhaps he’s doing his job.

I credit our low un-employment rate to Trump’s tariffs and to immigration control. When you make imports expensive, folks tend to make more at home. Similarly, with immigration, when you keep out illegal workers, folks hire more legal ones. I suspect the same forces are working in Britain. Immigration is a good thing, but I think you want to bring in hard-working, skilled, honest folks to the extent possible. I’m happy to have fruit pickers, but would like to avoid drug runners and revolutionaries, even if they have problems at home.

I still see no immediate stock collapse, by the way. One reason is P/E analysis, in particular Schiller’s P/E analysis (he won a Nobel prize for this). Normal P/E analysis compares the profitability of companies to their price and to the bond rate. The inverse of the P/E is called the earnings yield. As of today, it’s 4.7%. This is to say, every dollar worth of the average S+P 500 stock generates 4.7¢ in profits. Not great, but it’s a lot better than the 10-year bond return, today about 1.5%.

The Schiller P/E is an improved version of this classic analysis. It compares stock prices to each company’s historic profitability, inflation adjusted for 10 years. Schiller showed that this historic data is a better measure of profitability than this year’s profitability. As of today, the Schiller P/E is 29.5, suggesting an average corporate profitability of 3.5%. This is still higher than the ten-year bond rate. The difference between them is 2%, and that is about the historic norm. Meanwhile, in the EU, interest rates are negative. The ten year in Germany is -0.7%. This suggests to me that folks are desperate to avoid German bank vaults, and German stocks. From my perspective, Trump, Johnson, and the Fed seem to be doing much better jobs than the EU bankers and pendents.

Robert E. Buxbaum, August 16, 2019.

1939, when East and West became friends and partners

Forward Marx

The large mustache, Soviet Socialist it seems is very much like his neighbor, the small mustache, National Socialist.

In August, 1939, just about 77 years ago to the day, Germany and the Soviet union signed a non-aggression pact — The Molotov von Ribbentrop agreement. The open text suggested peace, but there was a secret rider that was made widely available. The large mustache soviet socialist and the small mustache national socialist had divided up the land between them. “In case there was war,” Russia would get Lithuania, Finland, Eastern Poland, and Bessarabia (Northern Romania). Germany would get Denmark, Western Poland, and Greece.

Commemoration of the Soviet -German non-aggression pact, August 1939.

Commemoration of the Soviet – German non-aggression pact, August 1939.

Up till then, we in the US assumed that these nations were bitter enemies and that their enmity would protect us. It turned out they were friends, or at least that they had the common goal of conquest and domination. Both were socialists in the sense that they did not respect the property rights of their neighbors. In the cartoon at right, Uncle Sam is standing on the battlements, looking stupid, holding his useless umbrella (The League of Nations? US foreign policy?). The title, “Watchman, What of the Night.” Is from Isaiah. In August, 1939 night was most definitely coming along with a combined storm of aggression from Germany and the USSR.

I’m posting this as a reminder that East and West are more similar than is generally believed. That left and right too are often useless distinctions. That folks will generally seek their own advantage over philosophical purity, and over the advantage of the US. Internationalism, thus, is not a panacea for peace. Generally speaking, I suspect that Flavius’s dictum still applies: “if you wish for peace, prepare for war.” Also, I had these great cartoons, courtesy of my friend, Jim Wald.

Robert Buxbaum, August 25, 2016. People often forget/ ignore that the USSR started its part of WWII by invading Finland and Poland. Finland resisted invasion a lot better than Poland. So well that, when Germany broke the agreement and Russia became our friend, Finland became our enemy– sort-of. They were still fighting Russia. And, in the East, Russia remained an ally of Japan for another year, even briefly after Japan attacked Pearl Harbor. This made sending aid to Russia problematic, though Roosevelt did it. I’ve written about WWII in terms of mustaches because, to me, it makes as much sense as anything, and more sense than east vs west.

The mystery of American productivity

Americans are among the richest and best paid people in the world. On a yearly basis, Americans produce and earn about 20% more than Britons and about 30% more than Japanese. On an hourly basis, counter to what you might expect, American workers produce about 30% more than Britons or Canadians, and about 50% more than the vaunted Japanese.

Per hour worker productivity, from the Economist.  We do OK for backward hicks.

Per hour worker productivity, from the Economist. We do OK for backward hicks.

French and German workers produce about as much as we do, per hour, but tend to work fewer hours. Still, the differences are not quite what you might expect. French workers take many more hours off than we do and are still so much more productive than the British that it appears they could take an extra month off and still beat them in yearly output. Japanese workers meanwhile produce only as much as the French, per year, but take far more hours to do it. One thought is that it’s all the vacation time that makes French so productive and it’s perhaps the lack of vacations that causes the Japanese to be relatively unproductive.

Not that vacation time alone explains our high productivity, nor that of the Germans or Italians relative to the Canadians and Britons. One part of an answer, I suspect, is that we put fewer roadblocks to workers becoming business owners, and to running things their own way. Another thought is that US and Germany have a low minimum wage, comparatively, and Italy has no minimum wage at all; Germany had no minimum wage in 2013, the time of the productivity comparison. In countries like this, there is a larger profit to be had by clever individuals who work hard, think, and start their own businesses. With minimal requirement on how much to pay, the business owner can bring to bear a mix of low-wage, minimally productive workers with labor-saving innovation, allowing them to become rich while decreasing unemployment. It also allows them to serve otherwise under-served parts of the market and profit from it. And profit is a powerful motivator. As Friedrich Nietzsche said, “a why beats a how.” 

The nine European countries with no minimum wage are among the richest on the continent, and among those with the lowest unemployment: Iceland, Lichtenstein, Norway, Sweden, Finland, Denmark, Austria, Italy, and Switzerland. By contrast, England, Canada, and Japan have relative high minimum wages and relatively high unemployment. There are also some poor countries with no minimum wage (Egypt, Zimbabwe, Rwanda…) but these countries suffer from other issues, like rampant crime. I’ve argued that the high “Living Wage” in Detroit is a major cause of Detroit’s high unemployment and bankruptcy. If low minimum wage is a major source of American worker productivity and wealth, it would be a real mistake to raise it.

Worker productivity is the best single predictor of long-term national success. As such, the long-term prediction for Britain, Canada, and Japan is not good. Unless something changes in these countries, we may expect to see them off to a long, dark tea-time of declining significance. Perhaps, it is a fear of this that was behind the resounding defeat of the Labour party in British elections last week. The Labour government oversaw England’s last big drop in productivity.

R.E. Buxbaum, May 28, 2015. It’s also possible (unlikely) that US universities are really good, or at least not as bad as thought. We don’t seem to quite beat the enthusiasm out of our students, though we do drug them quite a lot. Here’s a Forbes article on minimum wage.

Criminal Punishment Theory

I’ve often wondered about the theory of criminal punishment. How long should sentences be? For which crimes and external circumstances should people be let off, for which should there be alternative punishments, like civic work, or a fine instead of jail time. I’ve a few ideas, but here are some thought cases:

Someone steals an expensive handbag from a clothing store. What should the punishment be for (a) a ghetto black with no job, (b) a middle-class, college sophomore (c) a famous actress? Should it be the same for all? Is jail the best punishment — it costs money, and doesn’t help the criminal or the store. If jail, how long is appropriate? Should the length of stay correspond to the cost of the bag? If the punishment is money or civic service, how should the fine vary with the wealth of the thief, or if the person is a repeat offender? Many countries have corporal punishment — why or why not?

My sense is that sentences should be shorter for less-expensive items, and longer for more expensive. My sense is that a fine or civic service is appropriate for most first offenses, and while jail seems necessary for serious crimes, if only to keep criminals off the streets, the sentences should be reasonably short and include rehabilitation. I suspect that long sentences don’t help the criminal or society. I suspect that victimless crimes, e.g. prostitution or drug sales should have very short sentences or non-jail punishments, and I’m not quite sure what to do if the thief reforms in prison or appears to.

The US leads Russia, China, South Africa, and all of Europe in terms of percent of population is prison.

The US leads Russia, China, Cuba, India, and all of Europe in terms of percent of population in prison. It’s caused byvery long sentences, a product of fixed minimums. Strangely, our crime rate is low. Chart from the international business times.

Regarding prostitution perhaps it should be policed by the clergy, that’s why they get tax breaks. And why is sex between consenting adults punished as prostitution if money changes hands but not otherwise, or if the only pay is dinner? Why should the professional offender (the prostitute) pay more than the casual (the john). Why is drug use punished more than alcohol. Many drug and alcohol users live happy productive lives. To the extent that these crimes should be punished, it seems to me that fines, community service, or corporal punishment might be appropriate — I can not see prison healing a moral failing or reforming a victimless criminal.

And then there is rape. As a crime, the definition of rape has a long slippery slope, but the punishment does not. It isn’t quite clear where consensual become criminal, but the punishment is strict and undivided. We treat some cases as extreme crimes and others are let completely free. We have cases where the sex-criminal man or woman marries his or her underage partner, but is still guilty of statutory rape, and is then listed forever as a sex-criminal.

Children under 21 can not drink alcohol in the US, but they can in many other countries, and in some countries even older people can not drink at all. Is Saudi Arabia a very productive country; is Germany falling apart because of young drinkers? It seems not, so why is 21 the drinking age when you can choose to marry or join the army at 18. Soldiers are allowed to drink earlier than non-soldiers, but young marrieds are not afforded the same benefit. I don’t see why. The punishment for underage drinking varies too, as does the punishment for underage driving.

The Bible has some enlightened ideas on punishment, prescribing the use of fines of double or four or five times the value going to the victim (the thief pays 4 times for a stolen sheep, 5 times for a stolen cow, for example), but in other cases, it’s positively draconian prescribing death for homosexuality, violating the sabbath or for taking God’s name in vain. A seducer has to marry his seducee, but can not divorce her (assuming she agrees) but what if it’s an unhappy marriage? There is no room for judicial leniency in the bible, but there is in traditional applications; I’m not sure that’s not an improvement.

Robert E. Buxbaum, May 30, 2014. I’ve been wondering about the theory of appropriate punishment for at least 35 years. Are we protecting society, extracting vengeance, helping the criminal or doing some vague combination. My sense is we’re just bumbling blindly, and sorry to say, I have no answers.