Category Archives: Business

Qatar, unbalanced but stable

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Doha Airport, Qatar.

Doha Airport, Qatar.

I visited Qatar twice this month, just passing through and only visited in the airport, but there were several things that so impressed me that I had to write. What impressed me most was not so much the size and richness of the airport, but the clothes of the locals. All of the local men wore the same, very sharp robes: blindingly white, long sleeved, and floor-length. They’re called Thobes. While other nations wear something similar. Here, every one was unwrinkled, and unstained. They all looked new, with no signs they’d ever been washed. Some were worn with cuff-links (gold), and most had a pen sticking out of the breast pocket (gold). White pants peak from underneath and a headress usually sits on the head. It’s a really dramatic look, like seeing dozens of Ricardo Montaubans of Fantasy Island in one place. Local women and children were these too, but I found the thobes so dramatic that the women and children disappeared from my mind-space almost immediately. There is a local woman in the picture above, but you hardly notice.

Not everyone wears the thobes. There are lots of stores filled with gold and technology, beer and coffee, and these are maned by non-locals, Moslems mostly, almost all men. The non-locals wear western garb, not particularly sharp; none wear thobes of any sort. Some months ago, I wrote that China had severe imbalance and speculated that it was ripe for revolution. As it happens the large number of foreign worker means that Qatar is far more unbalanced. To some extent this is shown by the male-female population pyramid below.

Qatar demographic pyramid. Vastly more males than females, mostly foreign workers.

Qatar demographic pyramid. The imbalance is caused by the presence of vastly more male than female foreign workers.

Qatar is a country of 2,500,000 residents, of whom 310,000 are locals — citizens and permanent residents. The rest are foreign workers; long term inhabitants without permanent residency or citizenship. They make up 85% of the population. They are  recruited from poor, English-speaking Muslim countries mostly: Egypt, Malaysia, Tunisia. They do all the work, as best I could tell. I saw no one who looked like a local working, male or female.

Foreign workers have very few rights, but don’t seem unhappy. There is no right to unionize, and not even the right to roam around the country. For the most part, they live in employer-owned housing, and are transported back and forth to work in employer vans. They sign up for year-long contracts, and at the end of the year, they have the choice to re-up or leave. Up a year ago, foreign workers could not become permanent residents. As of last year, the Emir’s order 10 authorized permanent residency status for as many as 100 foreign workers who had sufficient means, had been in Qatar for 10 to 20 years (depending on whether they were born there), had stayed out of trouble, and who otherwise were considered desirable. It’s a step.

I suspect that the foreign workers feel lucky to have good pay, decent hours, and a clean bed. Then again, the workers are recruited for positive outlook. And the ones I saw might have had more rights than most. The airport is part of the Umm Al Houl, free enterprise zone. These are areas of Qatar where westerners and their vices like alcohol are tolerated and welcome.

Qatar natural gas production. Natural gas provides 90% of the country's income as best I can tell.

Qatar natural gas production. Natural gas provides 90% of the country’s income as best I can tell. That’s half the GDP almost, the rest of the GDP is Qataris spending the money

There are three “free enterprise zones” in Qatar; the name for the one near the airport, “Al Houl” interestingly enough means “bird trap”. What’s going on with them, as best I can tell, is diversification. Qatar is the worlds second largest exporter of natural gas, with most going to Europe, and a significant portion to India and China. But the gas will run out eventually. They are trying to supplant this income with tourism, industry and transport: running a major airline, a bustling, air hub, and tourist hotels. The airline is only marginally profitable, and though I didn’t see the hotels, I imagine they are luxurious and marginally profitable too. Saudi Arabia, next door, is trying to diversify the same ways, aiming to control west-east, air-traffic via Emirates air.

The GDP of Qatar is $191 B as of last year at the going exchange, and over $450 B at price parity. That suggests a few things. For one that the Qatari currency is undervalued. It also suggests a per-capita GDP of at least $76,400, or perhaps of $616,000 or higher depending on how you count buying power and foreign workers. This money buys a nice lifestyle, if not republican freedoms.  In terms of government, Qatar is a real monarchy, Emir Hamad bin Khalifa al-Thani’s is an absolute ruler who came to power the traditional way: he overthrew his father. Similar to this, his father, Khalifa al-Thani, came to power by overthrowing his cousin. Supporting the Emir’s rule, there is an Advisory Council. The 35 ministers are mostly relatives, and as in North Korea, it has only advisory power. The Prime Minister and Minister of Foreign Affairs is Sheikh Hamad bin Jasim bin Jabir al-Thani; the Deputy Prime Minister is Abdallah Al-Thani. The Economy and Commerce minister is Fahd Al-Thani, and the Communications and Transport minister is Ahmad Al-Thani. Nasir al-Thani heads Cabinet Affairs; Hamad al-Thani is the Secretary of State, and the Governor of the Central Bank is Abdallah bin Saud al-Thani.

Qatar main mosque. Residents stand out from the foreign workers.

Qatar main mosque. Residents stand out from the foreign workers.

My sense was that Qatar was the Disneyland version of Islam. Life in the Qatari free zones resembled normal Islamic life the way that Main Street of Disneyland resembles an actual main street in the US. Every citizen is well dress and rich without having to work. Western visitors are welcome, and not forced to follow the local customs with vices in their own zones. And the state supports all ecological and left-wing causes except for unionization. It’s anti Israel, pro revolution (elsewhere of course) and virulently against petroleum production in all counties outside of Qatar. Al Jazeera, the Emir’s left-leaning news agency, spreads money and influence world-wide. Left-flavored news is presented with high-quality graphics, and different versions of the news story published in different languages. The Emir acknowledges that Al Jazeera is a money-losing propaganda agency, but as with Disneyland, most people seem happy to live the fiction.

Qatari woman and shop. They blend into the scenery compared to the resplendent men

Qatari woman and shop. They blend into the scenery compared to the resplendent men

The local Qataris seem happy with their lot, as best I can tell. The next world soccer tournament will be held in Qatar, 2022, and Qatari’s are excited, as best I can tell. There is a lot of building going on, some for the world cup, the rest for general tourism and the free enterprise zones. The free enterprise zones may catch on, but there is a cold war going on with Saudi Arabia, and the Saudi’s are doing what they can to pour cold water on the programs. So far Qatar seems to be winning the propaganda war at home and abroad. Its people are happy, it shows a beautiful, progressive face to the west, and it seems to have the majority of the middle east travel. Stable but for how long?

Robert Buxbaum April 15, 2019. As I side note, I just bought a Qatari Thobe.

Speed traps penalize the poor

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On a street corner about 1/4 mile from my house, at the intersection of the two busiest of the local streets, in the center-median of the street, is parked a police car. He’s there, about 18 hours a day, looking to give out tickets. The cross-street that this officer watches is where drivers get off the highway. In theory, they should instantly go from 65 mph on the highway to 35 mph now. Very few people do. The officer does not ticket every car, by the way, but seems to target those of poor people from outside the city limits. The only time ai was ticketed, I was driving a broken-down car while mine was in the shop. As best I can tell, he choose cars for revenue, not for safety. It’s a speed trap. It’s appalling. And our city isn’t alone in having one.

Speed traps are an annoyance to rich, local folk who sometimes get ticketed, but they’re a disaster for the poor. Poor people are targeted, and these people don’t have any savings. They don’t have the means to pay a suddenly imposed bill of $150 or more. Meanwhile, the speed-trap officer is incentivized to increase revenue and look for other violations: expired registrations or insurance, seat-belt violations, open alcohol, unpaid tickets. Double and triple fines are handed out, and sometimes the car is impounded. A poor driver is often left without any legal way to get to work, to earn money to pay the fines. Police officers behave this way because they are evaluated based on the revenue they generate, based on the number of tickets they write. It’s a horrible situation, especially for the poor

Speed traps to little and cost much.

An article on the effect of speed traps. It appears they do little good and cause much pain, especially to the poor. Here is a link to the whole article.

The article above looks at the impact of speed traps on poor people. The damage is extreme. The folks targeted are often black, barely holding it together financially. They are generally not in a position to pay $150 for “impeding traffic,” and even less in a position to deal with having their car impounded. How are they supposed to pay the bill? And yet they are told they are lucky to have been given this ticket — impeding traffic, a ticket with no “points.” But they are not lucky. They are victims. Tickets with no points is are money generators, and many poor people realize it. If they were to get a speeding ticket, they would have the opportunity to void the penalty by going to traffic school. With a ticket for impeding traffic, there is no school option. Revenue stays local, mostly in that police precinct. Poor people know it, and they don’t like it. I don’t either. After a while, poor people cease to trust the police, or to even speak to them.

In what world should you pay $150 for impeding traffic, by the way? In what world should the police be taken from their main job protecting the people and turned into a revenue arm for the city? I’d like to see this crazy cycle ended. The first steps, I think, are to end speed traps, and to limit the incentive for giving minor tickets, like impeding traffic. As it is we have too many people in jail and too many harsh penalties. 

Robert Buxbaum, April 10, 2019. I ran for water commissioner in 2016, and may run again in 2020.

A probability paradox

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Here is a classic math paradox for your amusement, and perhaps your edification: (edification is a fancy word for: beware, I’m trying to learn you something).

You are on a TV game show where you will be asked to choose between two, identical-looking envelopes. All you know about the envelopes is that one of them has twice as much money as the other. The envelopes are shuffled, and you pick one. You peak in and see that your envelope contains $400, and you feel pretty good. But then you are given a choice: you can switch your envelope with the other one; the one you didn’t take. You reason that the other envelope either has $800 or $200 with equal probability. That is, a switch will either net you a $400 gain, or loose you $200. Since $400 is bigger than $200, you switch. Did that decision make sense. It seems that, at this game, every contestant should switch envelopes. Hmm.

The solution follows: The problem with this analysis is an error common in children and politicians — the confusion between your lack of knowledge of a thing, and actual variability in the system. In this case, the contestant is confusing his (or her) lack of knowledge of whether he/she has the big envelope or the smaller, with the fixed fact that the total between the two envelopes has already been set. It is some known total, in this case it is either $600 or $1200. Lets call this unknown sum y. There is a 50% chance that you now are holding 2/3 y and a 50% chance you are holding only 1/3y. therefore, the value of your current envelope is 1/3 y + 1/6y = 1/2 y. Similarly, the other envelope has a value 1/2y; there is no advantage is switching once it is accepted that the total, y had already been set before you got to choose an envelope.

And here, unfortunately is the lesson:The same issue applies in reverse when it comes to government taxation. If you assume that the total amount of goods produced by the economy is always fixed to some amount, then there is no fundamental problem with high taxes. You can print money, or redistribute it to anyone you think is worthy — more worthy than the person who has it now – and you won’t affect the usable wealth of the society. Some will gain others will lose, and likely you’ll find you have more friends than before. On the other hand, if you assume that government redistribution will affect the total: that there is some relationship between reward and the amount produced, then to the extent that you diminish the relation between work and income, or savings and wealth, you diminish the total output and wealth of your society. While some balance is needed, a redistribution that aims at identical outcomes will result in total poverty.

This is a variant of the “two-envelopes problem,” originally posed in 1912 by German, Jewish mathematician, Edmund Landau. It is described, with related problems, by Prakash Gorroochurn, Classic Problems of Probability. Wiley, 314pp. ISBN: 978-1-118-06325-5. Wikipedia article: Two Envelopes Problem.

Robert Buxbaum, February 27, 2019

Harvard Eunuchs

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Success is measured in different ways in different cultures. Among US academics, the first mark of success is going to a great college. If you graduate from Eureka college, as Ronald Reagan did, you are pretty-well assumed to be an idiot; if you went to Harvard and Princeton, as John Kennedy did, you’re off on a good start to popular acclaim, even if your entry essay was poor, and you got thrown out of one because of cheating. Graduation from a top college does not guarantee being seen as a success forever, though. You have to continue in the Harvard way: use big words — something that puts-off the less-educated; you have to win awards, write books or articles; have the right politics; work at a high power job and money, meet the right people, exercise regularly, etc. It’s hard work being successful; disposable income is tight, and one rarely has time for kids.

Fertility rates, 1950 and now

Fertility rates compared, world-wide, 1970 vs 2014.

By contrast, in ancient societies, success included food, leisure, land, and general respect. A successful person is seated at the front of the church, and consulted as few academics are. And there is another great measure: children. In traditional societies, children are valued, They are seen as a joy in your youth, and a comfort in your old age. They are you and your wife reborn, with reborn wonder. They are your future, and the defenders of your legacy; ready to take on the world with an outlook of their own, but one that you had a unique chance to mold. In the Bible, children are a sign of blessing, and the opposite is explicitly stated as a punishment for violating God’s commands.

I have come to wonder why rich countries have so few children, and why successful people in rich countries have yet fewer than the average. These people and countries are no worse than others, yet they are common. Harvard produces a surprising number of “Legal Eunuchs” — people with a refined place in society, but no time or children; people who work tirelessly for the pleasure and success of others. Harvard couples marry late, or not at all. If they marry, they usually produce childless households, DINKs — Double Income No Kids.

The same pattern is seen in Europe, UK, Japan, Canada, Russia, and China, as the map above shows. Particularly among the élite, the great works are being created for the deplorables and their children. Could anything be more depressing?

The seven things include that Eunuchs can be trusted, that they love to serve, that they are compassionate, that they are passionate (for excellence) and that they have fewer distractions.

There’s and organization for everything these days. In this case, the seven things you didn’t know include that Eunuchs can be trusted, that they love to serve, that they are compassionate, that they are passionate for excellence, and that they have fewer distractions. This is the opposite of toxic masculinity, but it comes at a cost. 

I think one reason for the growing ranks of Harvard Eunuchs is a dislike of masculinity; masculinity is sort-of toxic,  associated with war, revolution, and selfishness. In the 1800s, only Republicans and Communists had beards; the more-refined gentleman did not. The eunuch qualities listed above, are considered noble, charitable, and selfless. Clearly it helps others if you are selfless, but why do it? I think the answer is self-doubt about ones worthiness to enjoy the fruits of your labor. To get to Harvard takes striving, and that relates to a degree of self-doubt and loathing about your worthiness today.

I graduated from Cooper Union, and went to Princeton for graduate school. It was a magical place, I became machines chairman, then chairman of the Graduate College House Committee. I dealt with a lot of very bright, accomplished people, and a pattern I saw often was self-doubt and loathing. And the most accomplished students were the ones with the most self-loathing. It made them strive to be better; it drove the innovative research and the grant writing. It motivated graduates to try to become professors (only a few would succeed) or judges, or financiers, or politicians. All that takes time, striving, and putting off your wants in the here-and-now, for a reward to the future you that is worthy. It’s a system that produces greatness, but at great personal cost.

So what’s to be done? How do you help yourself, or some other, the bright, educated fellow see that he or she is good enough. Unfortunately, for those in the system, good enough equals bad. I found it helped to say, in my own words, the words or Solomon:”Eat, drink, and enjoy yourself.” “It is not good to be over-wise… Why wear yourself out?” Not that these words changed them, but they did seem to give comfort. I’d suggest the write things that were honest; that people understand, and that they take time for themselves. “May your fountain be blessed, and enjoy the wife of your youth.” (Ps.127:3-4, Ecc.8:15, Pr.5:18…) It suffices to retell old truths and raise a new generation. Only make sure that what you have to say is honest and logical, and trust your own value. As for toxic masculinity, it can have its own charm.

Robert E. Buxbaum, January 29, 2019. I got the title for this article, and the idea, from the phrase, “Legal Eunuchs” in this wonderful book review (2005) by Alan Dershowitz.

Google+ vs Facebook and Twitter; of virtue and sin

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Google has just announced the end of support for Google+; I’m sorry to see it go. It was supposed to be the better version of Facebook killer. It was, and I suspect that’s why it died. Unlike Facebook, Google+ allowed me to decide which group of friends I would get to see which group of my posts. I thought that was a good thing. I only shared political posts with some folks — those who I thought would not mind; and only shared jokes with other folks; family photos with yet others; religion thoughts with others, and technical thoughts with other folks still.

Google+ called the different groups in your life, “rings of friendship,” and it seemed to me that such rings were an important part of being able to live in a polite society. Any normal person shares different things with different people. There will be some overlap, of course, but rings of friendship allowed you to shield your friends from your religious and political views, and allowed you to shield technical colleagues from family photos that would bore them. Behaving this way is common sense and simple politeness.

Google+ died, in part I think, because maintaining rings of friendship requires forethought. It also requires that your friends honor your privacy, and accept that they will not be a complete part of your life and confidence. But such activity requires work, both on the part of the poster, and on the part of the recipient. Besides, posting this way tends to make your posts dull. It reduced the number of eye-ball-grabbing rants that get seen by people who are highly offended by seeing the rant. Facebook, by contrast, uses and algorithm to decide who sees what. It requires no work from us, and I suspect the algorithm makes posts more interesting as it seems to favor the sensational, salacious, and inappropriate.

Facebook spreads the most salacious posts, I think, to increase the amount of time people spend on FB. That would be entirely self-serving, but it also gives the user a thrill as you see how many likes and followers, Facebook suggests “friends” that you never knew, who your other friends know, or who have similar interests. People friend these folks they hardly know, and post the most controversial of things in hope of getting followers and “likes.” It’s destructive to privacy, but it’s a dopamine rush in having people think you are a more interesting and exciting person than you are. The graphic below associates FB with the deadly sin of Envy — the desire to have what you don’t have.

An interesting take on social media

An interesting take on social media — the main platforms are the seven deadly sins.

There are six other deadly sins, and six of the other major social platforms seem designed to target one each. LinkedIn seems to target greed; Tinder targets Lust and Yelp targets gluttony. Instagram targets pride, the greatest of the deadly sins. It was natural that Facebook would acquire Instagram as Facebook had the most money, and pride is the strongest draw among the sins. In the graphic above Netflix is associated with sloth; I’m not sure that’s entirely fair: Netflix is passive, but no more passive than YouTube (owned by Google).

Twitter deserves a special mention. It was designed to be more immediate than FB, and I find it’s even more tipped to the salacious. When you post to Twitter, you have no control over who sees it; your only control is over what you see, and most people like to see salacious. President Donald Trump’s presidency is largely built on his Twitter posts. He claims he’s the Hemingway of 140 characters, and he certainly is good at grabbing eyeballs with outrageous comments and short simplifications of difficult matters. Last week his Twitter insult of Congressman Adam Schiff caught the news services all about. Similarly several congressmen calling Trump a mother***ker made news, Trump’s insult was more amusing, IMHO, if you read the name Adam a variant pronunciation. Facebook can tolerate the salacious like this, but it still limits the number of eyeballs to friends and acquaintances. Twitter is the home of wrath, and so far it seems a lot more successful than Google+.

Google+ was a reminder that world of social media is not all darkness and deadly sins. To my mind, Google+ was supposed to contract the evils of envy and intemperance with the virtue of temperance. That is Google+ was one of the cardinal virtues: Temperance in this case amounted to giving the appropriate amount of information to each of your friends, and not being excessive with any. It’s possible that the failure of Google+ was that it did not directly go after the audience for LinkedIn, but instead tried to mimic Facebook. Linked In (Greed) is almost exactly the opposite of Temperance.

The seven godly virtues are listed below, as set out by Pope Gregory, based on Paul. The first three are considered Godly, the other four Cardinal.

  1. Faith: belief in the right things (including the virtues!).
  2. Hope: taking a positive future view, that good will prevail.
  3. Charity: concern for, and active helping of, others.
  4. Fortitude: never giving up.
  5. Justice: being fair and equitable with others.
  6. Prudence: care of and moderation with money.
  7. Temperance: moderation of needed things and abstinence from things which are not needed.

Looking at this list it strikes me that the first three virtues are already present in social media. I associate Wikipedia with Faith, I associate it with a belief in knowledge itself, and in the ability of people to self govern. I associate Google, before it decided to be political, with Hope. It was based on a positive view of nature and people: that given free access to organized information they will come to the right conclusions. I liked that originally, ranking was decided based on people’s common choice. It was anti-FB, and humbling: there was no way that you could proclaim yourself greater than your neighbor if others didn’t see you that way. Currently Google allows paid customers to promote themselves, and conforms search for political patrons, eg China. In this way, it has become more like FB.

I associate “Go fund me,” with the virtue of Charity, and would like to propose that perhaps Prudence is Consumer Reports, or maybe e-bay. This leaves room for Fortitude, Justice, and Temperance (now that Google+ is dead). I leave it to you to fill in the gap.

Robert Buxbaum, January 8, 2019. There is a great manga fiction involving the seven deadly sins; Full Metal Alchemist. Also I should note that there are many versions of the seven virtues including the seven virtues of Buddhism: Right decisions, Valor, Benevolence, Respect, Honesty, Honor, and Loyalty.

The hard scrabble dictionary

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The rules or Scrabble are unchanging and always changing. The general rule is that Scrabble allows the use of every common word in the English language. In practice, there are two or more dictionaries of words. One of these has virtually no abbreviations, only a few foreign-derived words, and only a select few offensive terms. It is this one, “The Official Scrabble Players Dictionary,” that determines play. You’ll need the other dictionary to look up swear words or secondary meanings, or find common abbreviations.

Words get removed from the scrabble dictionary when someone -- anyone might find them offensive.

Words get removed from the scrabble dictionary when someone — anyone might find them offensive.

Both of these dictionaries change on a regular basis, by the way. And this is as it should be, and both exist in both English and American versions. The common dictionary adds words slowly, as they come into use and drops them slowly as they fall out. The Scrabble dictionary changes fast and for no obvious reason, adding and removing words for political and social aspect and for improved playability (whatever that is). Thus there is little rhyme or reason to the additions or deletions. Four years ago some ten 4000 words were added, mostly unusual words, and many insult words were removed. When the dictionary was changed again in September of this year, players are not told of some changes, but for the most part, there no obvious way to guess. Several words that were offensive in the last version, now are not. Other words that were OK then are now removed as offensive. You’ll play a word you’ve used for years and be told that it is no longer valid. Or someone will use a word you’ve never seen, and never will see otherwise, and you’ll find it is valid. Words added this year include: OK (previously an abbreviation), zen (previously a foreign word), and sheeple (previously a portmanteau, non-word). Also, I’m happy to say, fuck (a welcome addition). I looked up a bunch of previously removed insult words, and find that goy and spic are back, but i find that negro is not.  There is no list in print that tells you what’s been added, and that’s not right. Some articles have a few examples of new words, and some claim to have a list, but clearly it’s only a small fraction of the real list. There is nothing like a full addition list that I could find.

I’ve a bigger gripe though against removed words, especially when they are common words made to disappear for political effect. The previous dictionary, 2014, removed spic, goy, goyim, and negro; that was not right. The current dictionary added back all but negro (check for yourself, here). The word is still in use, both verbally and in literature, and not particularly offensive, less offensive than spic, IMHO. The American Negro College Fund doesn’t seem to mind the word negro. Malcolm X didn’t either. No one tells you these words are gone; they just disappear in the night.

My opinion, such as it is. I’m asking Mattel, Hasbro, Colliers, and/or Merriam-Webster: allow in all normal words, despite the fact that several have implied insults, or real ones. AND PUBLISH A COMPLETE CORRECTIONS PAGE, you [non recognized word]. Thank you.

Robert Buxbaum, December 27, 2018.

Measles, anti-vaxers, and the pious lies of the CDC.

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Measles is a horrible disease that contributed to the downfall that had been declared dead in the US, wiped out by immunization, but it has reappeared. A lot of the blame goes to folks who refuse to vaccinate: anti-vaxers in the popular press. The Center for Disease Control is doing its best to promote to stop the anti-vaxers, and promote vaccination for all, but in doing so, I find they present the risks of measles worse than they are. While I’m sympathetic to the goal, I’m not a fan of bending the truth. Lies hurt the people who speak them and the ones who believe them, and they can hurt the health of immune-compromized children who are pushed to vaccinate. You will see my arguments below.

The CDC’s most-used value for the mortality rate for measles is 0.3%. It appears, for example, in line two of the following table from Orenstein et al., 2004. This table also includes measles-caused complications, broken down by type and patient age; read the full article here.

Measles complications, death rates, US, 1987-2000, CDC.

Measles complications, death rates, US, 1987-2000, CDC, Orenstein et. al. 2004.

The 0.3% average mortality rate seems more in tune with the 1800s than today. Similarly, note that the risk of measles-associated encephalitis is given as 10.1%, higher than the risk of measles-diarrhea, 8.2%. Do 10.1% of measles cases today produce encephalitis, a horrible, brain-swelling disease that often causes death. Basically everyone in the 1950s and early 60s got measles (I got it twice), but there were only 1000 cases of encephalitis per year. None of my classmates got encephalitis, and none died. How is this possible; it was the era before antibiotics. Even Orenstein et. al comment that their measles mortality rates appear to be far higher today than in the 1940s and 50s. The article explains that the increase to 3 per thousand, “is most likely due to more complete reporting of measles as a cause of death, HIV infections, and a higher proportion of cases among preschool-aged children and adults.”

A far more likely explanation is that the CDC value is wrong. That the measles cases that were reported and certified as such are the ones that are the most severe. There were about 450 measles deaths per year in the 1940s and 1950s, and 408 in 1962, the last year before the MMR vaccine was developed and by Dr. Hilleman of Merck (a great man of science, forgotten). In the last two decades there were some 2000 measles cases reported US cases but only one measles death. A significant decline in cases, but the ratio does not support the CDC’s death rate. For a better estimate, I propose to divide the total number of measles deaths in 1962 by the average birth rate in the late 1950s. That is to say, I propose to divide 408 by the 4.3 million births per year. From this, I calculate a mortality rate just under 0.01% in 1962, That’s 1/30th the CDC number, and medicine has improved since 1962.

I suspect that the CDC inflates the mortality numbers, in part by cherry-picking its years. It inflates them further by treating “reported measles cases.” as if they were all measles cases. I suspect that the reported cases in these years were mainly the very severe ones. Mild case measles clears up before being reported or certified as measles. This seems the only normal explanation for why 10.1% of cases include encephalitis, and only 8.2% diarrhea. It’s why the CDC’s mortality numbers suggest that, despite antibiotics, our death rate has gone up by a factor of 30 since 1962.

Consider the experience of people who lived in the early 60s. Most children of my era went to public elementary schools with some 1000 other students, all of whom got measles. By the CDC’s mortality number, we should have seen three measles deaths per school, and 101 cases of encephalitis. In reality, if there had been one death in my school it would have been big news, and it’s impossible that 10% of my classmates got encephalitis. Instead, in those years, only 48,000 people were hospitalized per year for measles, and 1,000 of these suffered encephalitis (CDC numbers, reported here).

To see if vaccination is a good idea, lets now consider the risk of vaccination. The CDC reports their vaccine “is virtually risk free”, but what does risk-free mean? A British study finds vaccination-caused neurological damage in 1/365,000 MMR vaccinations, a rate of 0.00027%, with a small fraction leading to death. These problems are mostly found in immunocompromised patients. I will now estimate the neurological risk for actual measles based on the ratio of encephalitis to births, as before using the average birth rate as my estimate for measles cases; 1000/4,300,000 = 0.023%. This is far lower than the risk the CDC reports, and more in line with experience.

The risk for neurological damage from measles that I calculate is 86 times higher risk than the neurological risk from vaccination, suggesting vaccination is a very good thing, on average: The vast majority of people should get vaccinated. But for people with a weakened immune system, my calculations suggest it is worthwhile to not immunize at 12 months as doctors recommend. The main cause of vaccination death is encephalitis, but this only happens in patients with weakened immune systems. If your child’s immune system is weakened, even by a cold, I’d suggest you wait 1-3 months, and would hope that your doctor would concur. If your child has AIDS, ALS, Lupus, or any other, long-term immune problem, you should not vaccinate at all. Not vaccinating your immune-weakened child will weaken the herd immunity, but will protect your child.

We live in a country with significant herd immunity: Even if there were a measles outbreak, it is unlikely there would be 500 cases at one time, and your child’s chance of running into one of them in the next month is very small assuming that you don’t take your child to Disneyland, or to visit relatives from abroad. Also, don’t hang out with anti-vaxers if you are not vaccinated. Associating with anti-vaxers will dramatically increase your child’s risk of infection.

As for autism: there appears to be no autism advantage to pushing off vaccination. Signs of autism typically appear around 12 months, the same age that most children receive their first-stage MMR shot, so some people came to associate the two. Parents who push-off vaccination do not push-off the child’s chance of developing autism, they just increase the chance their child will get measles, and that their child will infect others. Schools are right to bar such children, IMHO.

I’ve noticed that, with health care in, particular, there is a tendency for researchers to mangle statistics so that good things seem better than they are. Health food: is not necessarily so healthy as they say; nor is weight loss. Bicycle helmets: ditto. Sometimes this bleeds over to outright lies. Generic modified grains were branded as cancer-causing based on outright lies and  missionary zeal. I feel that I help a bit, in part by countering individual white lies; in part by teaching folks how to better read statistic arguments. If you are a researcher, I strongly suggest you do not set up your research with a hypothesis so that only one outcome will be publishable or acceptable. Here’s how.

Robert E. Buxbaum, December 9, 2018.

China worse than the US in CO2 per output

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CO2 per year, 1965-2017, China and developed world

CO2 output per year, 1965-2017, China and developed world

For the last decade at least, China has been the industrial  manufacturer to the world. If not for Chinese shoes, the US would go barefoot. if not for Chinese electronics, Americans would be without iPhones, laptops, and TVs. China still trails the US and Europe in banking, software, movies and the like, but relying on China for manufactured goods is a dangerous position for the free world economically, and it’s not much better in terms of pollution.

China is among the world’s worst polluters. It burns coal for power to an extent that the air quality of China’s major cities would be unacceptable most everywhere else. On most days, it is thick with a yellow and grey haze. By 1969 China had passed the US and the European union in terms of CO2 production. And, as 2017, they produce nearly three times as much CO2 as the USA, four times more than the entire European Union. While China claims an interest in changing, the amount of pollution China’s CO2 output is still growing while ours and the EU’s is decreasing.

Manufacturing in the US, China, EU, Japan, Korea. Source: World Bank.

Manufacturing in the US, China, Germany, Japan, Korea. Source: World Bank.

China’s pollution would not be so bad if it were an efficient manufacturer, but there is a lot to suggest that it is not. China produces 50% more industrial goods than the US, but employs far more man hours, and generates more than three times the  CO2. Even in a fairly developed industry like steel, the US uses fewer man hours per ton and generates less CO2. I’m thus drawn to conclude that US companies off-load work to China mainly to get around US labor and pollution laws. Alternately, they off-load manufacture to gain entry to the Chinese market, a market that is otherwise closed to them. When US companies do this, they benefit the corporate managers and owners, but not the US worker. 

The hope (expectation) is that president Trump’s tariffs on Chinese goods will decrease the wage advantage of manufacturing in China, and will decrease the amount of US goods manufactured there. Some of that production, I expect, will move to the US, some will remain in China, and will be imported at a higher price-point. I expect a net decrease in CO2 as the US appears to be the more efficient producer, and because fewer ships will be crossing the Pacific bringing Chinese goods to the US. I expect some increase in tax revenue to the US, and some price inflation as well, as importers pass along the increased cost of Chinese goods. Overall, I think this is an acceptable trade-off, but what do I know.

Robert Buxbaum, November 29, 2018

Less than 1 year to the crash

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Stock market crashes happen for a reason, and generally the reason is that owning stock is seen as less profitable than owning bonds, gold, guns, or hundred-dollar bills stuffed into one’s mattress. For this essay, I thought I might explain the reasoning behind the alarm bells that virtually every economist has been sounding. For the last year and a half they’ve been sure a severe correction is imminent. The reason has to do with price and predictions of profitability.

Let’s begin with Nobel Laureate economist, Paul Krugman of the New York Times. He has been predicting severe job losses, and a permanent stock collapse since Trump’s election in November 2016. Virtually every week he announces that the end is near, and every month the economy looked better. A lesser man would give up, but he has not. Why? Mostly it’s his hatred of all things Trumpian: Krugman can not accept that Trump could avoid destroying the economy, and con not imagine that any investor would see things otherwise.

Apparently some folks felt otherwise, and caused unemployment to drop and the market to rise. but then, in September 2017, Krugman’s dire predictions were echoed by Robert Schiller, 2013 Nobel winner, and author of a textbook the majority of schools use to teach market analysis. Robert Schiller, has argued that valuations are extremely expensive. “This stock market bears striking similarities to that of 1929. “The market is about as highly priced as it was in 1929,” “In 1929 from the peak to the bottom, it was 80 percent down. And the market really wasn’t much higher than it is now in terms of my CAPE [cyclically adjusted price-to-earnings] ratio. So, you give pause when you notice that.”

What Schiller is referring to is his particular version of the price to earnings ratio, the price of the average stock share divided by the amount of the average earnings per share. Schiller’s CAPE version uses the ten-year, inflation-averaged earnings, rather than today’s earnings, and finds the ratio is high, as the graph below shows. When he made these comments, this ratio was 25, nearly as high as the 1929 peak. The ratio is now higher, 32.74, higher than it stood on “Black Tuesday.” Why this number is important is that the profitability of a stock-share is merely the inverse of the Price/ Earnings ratio. The current ratio, 32.74 suggests that the average dollar’s worth of shares will return about 3.05% (1/32.74 = 3.05%). By comparison, one could buy a five-year treasury bond and get 2.96%. That’s hardly less, and federal bonds are totally safe. More alarming yet, the Federal Reserve has indicated that it will continue to raise interest rates at planned rate of 1%/year for at least the next year. At some point, people will decide bonds are the far better bargain, and will exit stocks en-mass. And then it’s crash-city, or so the theory goes.

The Schiller Price to Earnings ratio as of July 27, 2018. It suggests a crash is past due.

The Schiller Price to Earnings ratio as of July 27, 2018. It suggests a crash is past due.

Shown above is a historical plot of Schiller’s particular version of the price to earnings ratio based on the S+P 500 index, with data going back to 1880. It’s argued that his version using a ten-year, trailing average of corporate profits, is better than the non-adjusted, one year P/E ratio: the version you find in the newspapers. In the newspaper version, the peaks don’t show up until just after the crash because company profits tend to spike along with prices. In this version, profits can’t exactly spike, and  stock crashes show up as valuation peaks. The crash is seen as a consequence to high values of the Schiller P/E.  In terms of CAPE, we are at a more dangerous spot than in 1929. We are more exuberant than in 2008, or when Alan Greenspan warned of irrational exuberance. Schiller: “you give pause when you notice that.”

Schiller Price to earnings ratios are a good predictor of future stock prices. We are past the end of this chart, suggesting a significant loss of stock value ahead.

Schiller Price to earnings ratio plotted versus 20 year stock return. The higher the Schiller P/E, the lower the return. We are past the end of this chart suggesting we should expect a significant loss of capital value.

Stock pull-backs are sometimes gradual, as in 1968 through 1982, but more often the pullback is sudden, a crash. People typically expect a stock return in excess of bonds of 2% or so. They sometimes accept less, and sometimes demand more. Schiller calls the cause “animal spirits.” The fear is that investors will suddenly go back to the historical norm and demand of stocks 2% more return than the 3.05% they get from bonds. If they’d suddenly demand a 5.05% return on stocks to balance, the stock prices would fall by 40%. If the crash happened now, it would take a 40% drop in stock prices to raise the earnings ratio to 5.05%. But if they wait a year, until after the Fed raised the interest rate to 3.5%, we’d expect a greater pull-back 50% or so, a major crash. As early as last year, Schiller has advised moving out of US stock into foreign stocks, particularly European, noting that the US market was  the most expensive in the world. I don’t agree that Europe is a safe haven, but agree that a crash is likely given current return rates, snd the treasury plan to raise interests by 1% over the next year.

Schiller claims that the reason the recession has not hit so far is that people trust Trump. I would not have expected a comment like that from a Yale economist, especially given the constant carping from the TV news. Still Schiller may be on to something. The stock market went up dramatically after the Trump election. There are some advantages to a narcissist president. It also seems Trump’s tariffs are helping to provide jobs, as I predicted. In this quarter, the GDP rose at an impressive 4.1% rate. Gains came even where you’d expect otherwise. US soybean exports rose by 9600% despite a boycott from China. If the economy keeps going like this it might be as much as a year before the correction. A likely scenario is that the Fed raises interest rates, growth slows to 2.5% or less, and with bond interest rates at 3.5% people will get out of stocks in a big way. My expectation is that China will suffer too, and with it Europe. With luck, the Fed will then lower interest rates to 2%, or so. In my opinion interest rates should matches the inflation rate, more or less. I don’t know why the Federal Reserve does not do this, but instead swings its interest rates from very high to low, now aiming for a far excess of inflation rate. I suspect it’s mistake, one that we will pay for soon.

Robert Buxbaum, July 29, 2018. My only other stock analysis post was on bitcoin, In December 2017 I thought it had gone about as far as it would go. Shortly there-after bitcoin value crashed. I hope I don’t cause a crash

The Great, New York to Paris, Automobile race of 1908.

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As impressive as Lindberg’s transatlantic fight was in 1926, more impressive was George Schuster driving and winning the New York to Paris Automobile race beginning in the dead of winter, 1908, going the long way, through Russia. As of 1908, only nine cars had ever made the trip from Chicago to California, and none had done it in winter, but this race was to go beyond California, to Alaska and then over the ice through Russia and to Paris. Theodore Roosevelt was president, and Americans were up to any challenge. So, on February 12, 1908 there congregated in Times Square, New York, a single, US-made production car, along with five, specially made super-cars from Europe; one each from Italy and Germany; and three from France. The US car, a Thomas Flyer (white), is shown in the picture below. The ER Thomas company sent along George Schuster, as an afterthought: he was a mechanic and test-driver for the company, and was an ex bicycle racer. The main driver was supposed to be Montague Roberts, a dashing sportsmen, but the fellow dropped out in Cheyenne, Wyoming. Schuster reached the Eiffel tower on July 30, 1908, 169 days after leaving New York. The Germans and Italians followed. None of the French super-cars got further than Vladivostok, and one dropped out after less than 100 miles.

The race was sponsored by The New York Times and Le Matin, a Paris newspaper. They offered a large trophy, a cash prize of $1000, not enough to pay for the race, and the prospect of fame. The original plan was for drivers to go from New York to San Francisco, then to Seattle by ship, and Northern Alaska, driving to Russia across the Arctic ice. That plan was abandoned when Schuster, the first driver to reach Alaska, discovered ten foot snows outside of Valdez. The race was modified so that travel to Russia would be by ship. Schuster took his Thomas to Russia from Alaska, the other two drivers reached Russia from Seattle by way of Japan. Schuster was given a bonus of days to account for having taken the longer route. Because of his detour, he was the last to arrive in Russia. From Japan, the route was Vladivostok, Omsk, Moscow, St. Petersburg, Berlin, and Paris, 21,900 miles total; 13,341 miles driven. Schuster drove most of those 13,341 miles, protected by his own .32-caliber pistol, and mostly guided by the stars and a sextant. He’d taught himself celestial navigation as there were no roadmaps, and hardly any roads.

George Schuster driving the Thomas Flyer, the only American entry, and the only production motorcar in the race.

George Schuster driving the Thomas Flyer with another mechanic, George Miller, the Flyer was only American entry, and the only production motorcar in the race. Note that the flag has only 45 stars.

The ship crossing of the Pacific was a good idea given that, even in the dead of winter, global warming meant that the arctic could not be relied upon to be solid ice. As it was, Schuster had to content with crossing the Rockies in deep snow, and crossing Russia in the season of deepest mud. He reached the Eiffel tower at 6 p.m. on July 30, 1908. The German car had arrived in Paris three days ahead of Schuster, but was penalized to second place because the German team had avoided the trip to Alaska, and had traveled some 150 km of the Western US by railroad while Schuster had driven. The Italian team reached Paris months later, in September, 1908. That the win went to the only production car to compete is indicative, perhaps of the reliability that comes with mass production. That Mr. Schuster was not given the fame that Lindberg got may have to do with the small size of the prize, or with him being a mechanic while Lindberg was a “flyer”. Flyers were sexy; even the car was called a flyer. The Times saw fit to hardly mention Schuster at all, and when it did, it spelled his name wrong. Instead the Times headline read, “Thomas Flyer wins New York to Paris Race.” You’d think the car did it on its own, or that the driver was named Thomas Flyer.

The Flyer crossing a swollen river in Manchuria.

Schuster in his Flyer crossing a swollen river in Manchuria.

The Times could not get enough of Montague Roberts; the driver of the first leg was famous and photographic. They tried to get Roberts to drive the last few miles into Paris, “once the roads were good”. And Roberts was the one chosen to drive in the hero-parade in New York, Schuster rode too, but didn’t drive. Schuster was feted by Theodore Roosevelt, though, who said he liked people “who did things.” Schuster said he’d never do a race like that again, and he never did race again.

The race did wonders for the reputation of American automobiles, and greatly spurred the desire for roads, but it did little or nothing for the E.R.Thomas company. Thomas cars were high cost, high power models, and they lost out in the marketplace to Henry Ford’s, low-cost Model T’s. You’d think that, in the years leading up to WWI, the US Army might buy a high cost, high reliability car, but they were not interested, and the Thomas company did little to capitalize on their success. The Flyer design that won the race was discontinued. It was a 60 hp, straight 4 cylinder engine version, replaced by lower cost Flyers with 3 cylinders and 24 hp. Shortly after that, Edwin R. Thomas, decided to drop the Flyer altogether. His company went bankrupt in 1912, and was bought by Empire Smelting. The original Flyer was sold in 1913 at a bankruptcy action, lot #1829, “Famous New York to Paris Racer.”

ER Thomas went on to found another car company, as was the style in those days. Thomas-Detroit went on make similar cars to the Flyer, but cheaper. The largest, the K-30, was only 30 hp. The original Thomas Flyer is now in the National Automobile Museum, Reno Nevada. after being identified by Schuster and restored. Here is a video showing the original Flyer being driven by a grandson of George Schuster. There is a lower-power Thomas Flyer (black) in a back space of the Henry Ford museum (Detroit). Protos vehicles, similar to the one that came in second, were produced for the German military through WWI. Their manufacturer, Siemens, benefited, as did the German driver.

Advertisement for the Protos Automobile, a product of Siemens motor company. The race did not include a production Protos but one made specially for the race.

Advertisement for the Protos Automobile, a product of Siemens motor company. The race did not include a production Protos but one made specially for the race.

The Thomas engine (and the Protos) engine) live on in a host of cars with water-cooled, four-cylinder, straight engines. In 1922, Chalmers-Detroit merged with Maxwell and continued to produce versions of the old Flyer design, now with an internal drive-shaft. The original Flyer was powered via a gear-chain, like a bicycle. In 1928, Maxwell was sold to Chrysler. Chrysler persists in calling their high-power, four-cylinder engines by the name Chalmers. As for Schuster, when ER Thomas closed its doors, he had still not been paid for his time as a race driver. He went to work for Pierce-Arrow, another maker of large, heavy vehicles. The “cheaper by the dozen” family (two parents, 12 kids) drove a Pierce-Arrow.

The Great race appears in two documentaries and two general audience movies, both comedies. The first of these was Mishaps of the New York–Paris Race, released by Georges Méliès, July 1908, just about as the Flyer was entering Paris. The second movie version  “The Great Race” was released in 1965. It’s one of my favorite movies, with Jack Lemon as the Protos driver (called Dr. Fate in the movie), Tony Curtis as “The Great Leslie”, the Flyer driver. For the movie, the Flyer is called “The Leslie”, and with Natalie Wood as a female reporter who rides along and provides the love interest. In the actual race reporters from the New York Times, male, traveled in the Flyer’s rear seat sending stories back by carrier pigeon.

Path of the Great Race

Path of the Great Race

As a bit of fame, here’s George Schuster in 1958 on “What’s my secret.” He was 85, and no one knew of him or the race. Ten years later, in 1968, Schuster finally received his $1000 prize, but still no fame. A blow-by-blow of the race can be found here, in Smithsonian magazine. There is also an article about the race in The New York Times, February 10, 2008. This article includes only two pictures, a lead picture showing one of the French cars, and another showing Jeff  Mahl, the grandson of George Schuster, and a tiny bit of the flyer. Why did the New York Times choose these pictures? My guess is it’s the same reason that they reported as they did in 1908: The French car looked better than the Flyer, and Jeff Mahl looked better than George Schuster.

Robert Buxbaum, July 20, 2018. What does all this mean, I’ve wondered as I wrote this essay. There were so many threads, and so many details. After thinking a bit, my take is that the movie versions were right. It was all a comedy. Life becomes a comedy when the wrong person wins, or the wrong vehicle does. A simple mechanic working for a failing auto company beat great drivers and super cars, surpassing all sorts of obstacles that seem impossible to surpass. That’s comedy, It’s for this reason that Dante’s Divine Comedy is a comedy. When we see things like this we half-choose to disbelieve, and we half-choose to laugh, and because we don’t quite believe, very often we don’t reward the winner as happened to Schuster for the 60 years after the race. Roberts should have won, so we’ll half-pretend he did.