Categories
Liberty

[1416] Of appeal to the mind, not authority

I used to be impressed of individuals that are able to cite names — some obscure, others well-known — when discussing philosophy. Green with envy, I once tried to widen the scope of my reading in hope to achieve the same ability to refer to great philosophers like Kant, Smith and Ibn Khaldun whenever necessary, hoping to gain the same ability while impressing others. No more do I think as such.

While names are important for the purpose of discussing historical development of various thoughts, names themselves are irrelevant to ideas. One does not, should not, feel compelled to embrace liberty because Adam Smith espoused so. One should not have the impulse to do good because higher beings insist so. One should embrace liberty, or any idea, based on the merit of the idea itself. I am attracted to libertarianism not because of Hayek, or Smith, or Friedman or any other name associated with libertarianism. I accept that the Earth is spherical not because the Greek sages or the Muslim astronomers said so. I accept it because of the proofs that have been presented to me. I accept comparative advantage not because Ricardo said so but for its truth in governing trade.

Frequent reference to great thinkers during philosophical discussions outside of the realm of history of thoughts, of how thoughts developed over time, is nothing but an appeal to authority. It is a fallacy unworthy of those that seek to push the boundaries of ignorance farther away in the retreating darkness. It does not appeal to the mind, the original purpose of philosophy. Thus, I shall awe not at any utterance of another philosophers of old. It may show the person is well-read but it says nothing of his faculty. Of greater value is how one evaluates ideas and proofs on its own merit.

Those that incessantly cite names of great thinkers, respectfully, are missing the point of philosophy, unless rhetorics is the art they wish to pursue instead.

Categories
Economics

[1415] Of Malaysian sovereign funds sit that far?

Interesting graph:

Fair use. Financial Times.

Not particularly about Malaysia but if you are interested:

The sovereign funds remain far smaller than official foreign currency reserves (approximately $5,600bn). But the expectation is that these funds will grow rapidly, possibly to exceed official currency reserves in a number of years. If recent growth were to continue, the total value would reach $13,000bn over the next decade. This might then be 5 per cent of total global financial wealth.

How is the money used? Here the report distinguishes funds by their transparency and by the active, or strategic, nature of their approach to investment (see chart). Norway’s fund is conventionally invested (with widely distributed ownership) and transparent. Singapore’s funds are defined as transparent, but look for large ownership positions. Qatar’s fund is defined as non-transparent and strategic, as is China’s. But Lou Jiwei, chairman of the China Investment Corporation, insists that the new fund will operate on commercial lines. [The brave new world of state capitalism. Martin Wolf. Financial Times. October 15 2007]

As for me, I find sovereign funds confusing because it blurs the line between privatization and nationalization.

Categories
Economics

[1414] Of Prize in Economics for what design?

Adam Smith’s classical metaphor of the invisible hand refers to how the market, under ideal conditions, ensures an efficient allocation of scarce resources. But in practice conditions are usually not ideal; for example, competition is not completely free, consumers are not perfectly informed and privately desirable production and consumption may generate social costs and benefits. Furthermore, many transactions do not take place in open markets but within firms, in bargaining between individuals or interest groups and under a host of other institutional arrangements. How well do different such institutions, or allocation mechanisms, perform? What is the optimal mechanism to reach a certain goal, such as social welfare or private profit? Is government regulation called for, and if so, how is it best designed?

These questions are difficult, particularly since information about individual preferences and available production technologies is usually dispersed among many actors who may use their private information to further their own interests. Mechanism design theory, initiated by Leonid Hurwicz and further developed by Eric Maskin and Roger Myerson, has greatly enhanced our understanding of the properties of optimal allocation mechanisms in such situations, accounting for individuals’ incentives and private information. The theory allows us to distinguish situations in which markets work well from those in which they do not. It has helped economists identify efficient trading mechanisms, regulation schemes and voting procedures. Today, mechanism design theory plays a central role in many areas of economics and parts of political science. [The Prize in Economics 2007. Nobel Prize. October 15 2007]

Honestly, when I heard of it on Sunday, I thought they were awarding an economic prize to intelligent design: I said WTF?

And honestly again, though the concepts might sound familiar, I had never heard of the field before.

Categories
Sports

[1413] Of a ranked Michigan

Well, I was wrong.

Michigan is now ranked #24 in the AP.

And after a weekend of upsets, Ohio State is now #1. I hope they will stay at #1 until November 17; on the same day, Michigan will pull the rug under OSU so hard that they’d wish they were never born.

Oh, yeah, which is a greater upset?

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{democracy:3}
Categories
Politics & government

[1412] Of what the Republicans think of November 2008

“You’ve got more vacancies now than a hotel in hurricane season,” said Paul C. Light, a professor of public service at New York University and one of the nation’s best-known specialists on the federal bureaucracy. “In my 25 years of studying these issues, I’ve never seen a vacancy rate like this.”Michael J. Gerhardt, a law professor at the University of North Carolina who studies the federal appointment process, said that he believed the large number of vacancies reflected a widespread fear by Republicans that the next president, whoever it is, will be a Democrat, and that there is no job security at the top ranks of the executive branch.

“Republicans don’t have as much incentive to give up lucrative jobs in the private sector right now,” Professor Gerhardt said. [White House Is Leaning on Interim Appointments. NYT. October 15 2007]