A Different Specter is Haunting Europe

The election in Ukraine is getting more attention as Kuchma’s hand-picked successor, Victor Yanukovych, is rejected by the populace. Putin was quick to embrace Yanukovych, who is considered pro-Russian (Ukraine has a large Russian ethnic minority in its eastern region). The opposition candidate, Victor Yushenko, was apparently denied a victory by widespread fraud. With no expertise but a great deal of sympathy, let us refer you to others with more insight.

On the scene:

Tulipgirl
Le sabot post-moderne
Maidan
Orange Ukraine

On the Case:

The Argus specializes in Central Asia and the Causasus.
A Fistful of Euros is a general interest group blog on Europe, center-left politically (by US standards), that has been following events in Ukraine.
SCSU Scholars has been devoting most of its space to the election in Ukraine. Comprehensive and well-presented.

I’m with Stupid

Ted Rall seems to have calmed down a little – this column is more condescending than hysterical. The customary sneering at Jesusland is there, and he does not diminish the importance of hatred and bigotry in explaining the election results, but he seems to feel that stupidity was the major factor. It’s always nice to have Rall’s contribution to rational discourse.

Though there is a religious component to the election results, the biggest red-blue divide is intellectual. “How can 59,054,087 people be so DUMB?” asked the headline of the Daily Mirror in Great Britain, and the underlying assumption is undeniable. By any objective standard, you had to be spectacularly stupid to support Bush.

As evidence, he cites a poll by the Program on International Policy Attitudes (PIPA) at the University of Maryland. I looked up the poll, and it is a real piece of work. Here is a sample question: Is it your impression that the US has or has not found clear evidence in Iraq that Saddam Hussein was working closely with the al-Qaeda terrorist organization? According to the poll, 63% of Bush voters but only 32% of Kerry supporters said that the US had such evidence. Rall cites this as an obvious falsehood. To me, the question seems badly worded and the conclusion is not warranted. It is quite clear that Abu Musab al-Zarqawi was in Iraq before the war. He was in Afghanistan for the war against the US, was wounded, and came to Iraq for treatment. He stayed on to fight the coalition and carry out the blood rituals of his deviant sect. He has re-branded his terrorist outfit as “Al Qaeda in Iraq.” We’ll leave out the Czech intelligence report about Mohammed Atta meeting with Iraqi agents. The connection looks clear enough to me. I suppose Lex and Nito would agree that there may be enough here for an arrest warrant but we would need more for a conviction. Neither do I see enough evidence to convict someone of stupidity for believing it.

The poll also asks opinions on the national economy, compared to the prior year. Bush supporters answered that it had gotten better (48%), while Kerry supporters tended to think it had gotten worse (70%). Again, the question is badly worded, but this time the answers can be checked. According to the Bureau of Labor Statistics, the US unemployment rate was about 5.5% when the survey was taken. It had been between 5.7% and 5.4% for 2004, compared to 6.0% for 2003. Gross domestic product grew at 3.0% in 2003, and at 3.7% annualized for the third quarter of 2004 (US Department of Commerce, Bureau of Economic Analysis). If giving a “wrong” answer to a badly-worded survey is proof of stupidity, well …

Finally, maybe I’m just too suspicious, but PIPA, on whose survey Rall bases his meager analysis, did not even publish its entire survey or the complete results. The questions “to be released” are questions 3-6, 7b-12, 12b, 18, 19, 22, 23, 27-32, 35, 39-40, and 42a-44. It makes me wonder if they failed to make the Bush supporters look sufficiently stupid.

Perhaps encouraged by the low standard set by PIPA, Rall tries some statistics himself:

Educational achievement doesn’t necessarily equal intelligence. After all, Bush holds a Harvard MBA. Still, it bears noting that Democrats are better educated than Republicans. You are 25 percent more likely to hold a college degree if you live in the Democratic northeast than in the red state south. Blue state voters are 25 percent more likely, therefore, to understand the historical and cultural ramifications of Bush’s brand of bull-in-a-china-shop foreign policy.

By the same logic, Mitch is a geek; Bill Gates is a geek; therefore Mitch is Bill Gates. No, really, Ted that doesn’t work, and the bank won’t cash my check for a million dollars. Without going through a couple of layers of supposition, here are the results of the election by level of education. Bush won among high school graduates, people with some college, and college graduates, stated in terms of highest educational attainment. Kerry won those with less than a high school education and those with post-graduate study. Kerry’s winning categories came to 20% of the electorate. That’s a tough way to win an election, or maybe I’m just too stupid to do the math.

A hat tip to Jardine Davies.

Update 11/21/04: Ted Rall proved a little too much for the Washington Post, which has dropped his cartoon. Naturally, he believes this is censorship. Ted, read the first amendment again. The first five words are “Congress shall make no law…”

National Porcine Aviation Festival

Today, the Boston Red Sox had their triumphal parade from Chestnut Hill to City Hall, then over to Charlestown — and into the river. (They were in the amphibious Duck Boats. They covered another mile or so on the water, cruising between two crowded shores, dodging the sailboats, sculls, and kayaks of their aquatic fans.) Over a million people lined the route to celebrate the first World Series win in 86 years. The players were astonished at the turnout, which was two or three times larger than the crowd that greeted the Patriots after their Super Bowl victory.

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Economics Nobel

The University of Chicago is nearly as dominant in October as the New York Yankees, but this was not the year (Go Sox!). This year’s prize went to Finn Kydland of Norway (Carnegie Mellon University and the University of California) and Edward Prescott of the United States (Arizona State University and the Federal Reserve Bank of Minneapolis).

Their breakthrough publication was “Time to Build and Aggregate Fluctuations,” Econometrica 50 (November 1982): 1345-70. Econometrica’s archives are available only to paid subscribers, but there is a copy at the Minneapolis Fed’s website, which also has many other articles by Prescott, some with Kydland. Central banking policy, not surprisingly, was another area of study for them, and “Rules Rather Than Discretion: The Inconsistency of Optimal Plans” (Journal of Political Economy 85 (June 1977): 473-91) extended and quantified viagragen Friedman’s insight of monetary policy as a game between central bankers and rational actors in the economy, with the rational expectations of the players serving to anticipate and subvert the intentions of central policy.

“Time to Build” is considered to be their most important work. It established technological disruptions as one of the drivers of the business cycle, with the lag time of bringing innovative capital assets on line contributing to the uneven effects. This is essentially a supply-side factor in business cycle analysis, and reinforces the futility of monetary fine-tuning.

Does anyone else notice the similarity to Schumpeter’s thoughts on creative destruction?

Update: I finally found an extract of the Nobel committee’s citation, which gives a layman’s explanation of their work and leaves all the horrid math out.

There is nothing so powerful as an idea whose time has come …

There is nothing so powerful as an idea whose time has come – and gone. One perennial favorite of the left is stakeholder theory as a system of business ethics. Under this theory, suppliers, customers, employees, stockholders, and the local community are defined as stakeholders. A corporation is obliged to act in the best interests of all stakeholders, and all stakeholders must participate in the decisions of the corporation that might affect them. Note that stockholders are outnumbered five to one by category, possibly even more by head count. Without a theoretical limit to how remote the connection of a stakeholder, or how small the impact, before they can be disregarded, the number of stakeholders is impossible to determine.

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