Friday, July 22, 2016

Pigou Breakthrough

Prime Minister of Canada, Justin Trudeau, has announced that his Liberal government will adopt a nationwide price on carbon emissions.  Employing Pigouvian taxes (or subsidies) to internalize putative externalities, as University of Cambridge economist Arthur Cecil Pigou described in The Economics of Welfare, has long been suggested as a cost-effective means to reduce the generation and release of greenhouse gases. Although market-based methods combating climate change have traditionally been anathema to many environmental organizations, the often icy opposition to Pigouvian taxation, or, alternatively, cap-and-trade approaches, seems rapidly to be melting.  Although University of Chicago economist, and Pigou critic, Ronald Harry Coase would likely not approve, Canada has announced it will adopt a Pigouvian approach to curb its carbon emissions, either by individual provinces and territories, or, failing that, through a national policy.  No announcements have yet been made about the taxation of political hot air.

Wednesday, July 13, 2016

Well May She Rule

Brand new Prime Minister Theresa May delivered a remarkable speech upon assuming office on June 13, 2016.  Notable among the topics she addressed were unity and inequality, about which she said the following:
[W]e believe in a union not just between the nations of the United Kingdom but between all of our citizens - every one of us - whoever we are and wherever we’re from.
That means fighting against the burning injustice that if you’re born poor you will die on average nine years earlier than others. 
If you’re black you are treated more harshly by the criminal justice system than if you’re white. 
If you’re a white working-class boy you’re less likely than anybody else in Britain to go to university. 
If you’re at a state school you’re less likely to reach the top professions than if you’re educated privately. 
If you’re a woman you will earn less than a man. 
If you suffer from mental health problems, there’s not enough help to hand. 
If you’re young you will find it harder than ever before to own your own home. If you’re from an ordinary working-class family, life is much harder than many people in Westminster realise.
Although it is much more difficult to effect real social change than simply to utter stirring words, May established a reputation as Home Secretary for setting and accomplishing measurable goals.  May she succeed!

Tuesday, July 12, 2016

First Law Of Robotics

On July 8, 2016, a terrible shooting massacre of police and civilians took place in Dallas, Texas.  My condolences go to all the victims of this tragedy.  There is little I can add that others, including United States President Obama, have not already expressed more eloquently.

One surprising aspect of these awful events was the use of a robot to kill the suspected shooter.

In Runaround, his short story published in 1942, Isaac Asimov described "The Three Laws of Robotics".  They are
1.  A robot may not injure a human being or, through inaction, allow a human being to come to harm.
2.  A robot must obey the orders given it by human beings except where such orders would conflict with the First Law.
3.  A robot must protect its own existence as long as such protection does not conflict with the First or Second Laws.
Asimov foresaw some of the ethical implications of employing robots to kill.  Humanity will increasingly live all of them.

Friday, July 8, 2016


The enfant terrible of unicorns, medical testing firm Theranos, Inc., has had its horn substantially clipped by the Centers for Medicare & Medicaid Services ("CMS").  On July 7, 2016, the CMS announced - on Theranos' own website - that the privately-held company will suffer the following sanctions beginning August 6, 2016:
– Revocation of the [Newark, California] laboratory’s CLIA [Clinical Laboratory Improvement Amendments] certificate which, as dictated by the regulations, includes a prohibition on owners and operators of the lab from owning, operating or directing a lab for at least two years from the date of revocation 
– Limitation of the laboratory’s CLIA certificate for the specialty of hematology 
– A Civil Money Penalty 
– A Directed Portion of a Plan of Correction 
– Suspension of the laboratory’s approval to receive Medicare and Medicaid payments for any services performed for the specialty of hematology 
– Cancellation of the laboratory’s approval to receive Medicare and Medicaid payments for all laboratory services
These penalties represent serious blows to Theranos.

Wednesday, July 6, 2016

Raisin d'√Čtat

In response to a petition filed with the Agricultural Marketing Service ("AMS") of the United States Department of Agriculture ("USDA") by Little People of America ("LPA"), "a nonprofit organization that provides support and information to people of short stature and their families", the AMS announced on June 23, 2016, that it plans to amend its federal regulations on raisin nomenclature,
removing five references to the term ‘‘midget’’ in the following sections: 52.1845(b) and (c), 52.1850(a)(2) and (a)(3), and Table I.
As its reasoning, the AMS states,
The revisions will modernize and help clarify the language of the standard by removing dual terminology for the same requirement.
Once the rule is final, on July 23, 2016, the AMS plans to use the descriptor "small" to describe diminutive raisins.

Congratulations to the LPA for achieving this regulatory redress.  

Tuesday, July 5, 2016

XY Zone

In an echo of Matt Ridley's recent observation that female leadership is on the rise around the world, the two leading finalists to become leader of the Conservative and Unionist Party - and, incidentally, next Prime Minister of the United Kingdom - are both impressive women:  Theresa May and Andrea Leadsom.  This is promising news for both the Tories and their country, whose future is beclouded by political and economic uncertainty.

Saturday, June 25, 2016


If the United Kingdom does actually Brexit the European Union, the country could be a superb candidate to Brattach itself to the rival North American Free Trade Agreement.  Commonalities in history, culture, and level of economic development raise intriguing possibilities for a "North Atlantic Free Trade Agreement".

Friday, June 24, 2016

German Headquarter

On June 23, 2016, a small majority of voters in the United Kingdom ("U.K.") expressed their preference to quit membership of the European Union.  Much has been, and will be, written elsewhere about various consequences of this decision for the U.K..  I would like to highlight an important implication for the post-Brexit European Union ("E.U.").

Using 2014 GDP figures, the U.K. economy makes up 17.6% of the total GDP of the E.U., while Germany accounts for a larger, yet comparable, 20.7%.  Removing the U.K. from the E.U., the economy of Germany would contribute more than 25% of total E.U. GDP, and be almost 40% larger than the next largest national economy, that of France.  Time will tell what effects such a large imbalance of economic power will have on the governance and stability of the E.U..  With the U.K. gone, it will be much more difficult to view the E.U. as club of equals.