On Trusting Experts…and Which Experts to Trust

August 1, 1914. As Europe moved inexorably toward catastrophe, Kaiser Wilhelm II was getting cold feet at the prospect of a two-front war. When a telegram arrived suggesting that the war might be contained to a Germany-vs-Russia conflict, the Kaiser jumped at the opportunity.

The telegram was from Prince Lichnowsky, the German ambassador in London, reporting on a conversation with the British Foreign Secretary, Sir Edward Grey. As Lichnowsky interpreted Grey’s remarks, England would stay neutral–and also guarantee France’s neutrality–if Germany would confine herself to attacking Russia and would promise not to attack France. (Which was a misinterpretation–but more on that later.)

Immediately, the Kaiser called in General von Moltke, the Chief of Staff, and gave him his new marching orders: turn around the troops destined for the attack in the west, and redirect them to the eastern front. Barbara Tuchman writes of Moltke’s reaction.

Aghast at the thought of his marvelous mobilization wrenched into reverse, Moltke refused point-blank. For ten years, first as assistant to Schlieffen, then as his successor, Moltke’s job had been planning for this day, The Day, Der Tag, for which all Germany’s energies were gathered, on which the march to final mastery of Europe would begin. It weighed upon him with an oppressive, almost unbearable responsibility…Now, on the climactic night of August 1, Moltke was in no mood for any more of the Kaiser’s meddling with serious military matters, or with medling of any kind of the fixed arrangements. To turn around the deployment of a million men from west to east at the very moment of departure would have taken a more iron nerve than Moltke disposed of. He saw a vision of the deployment crumbling apart in confusion, supplies here, soldiers there, ammunation lost in the midle, companies without officers, divisions without staffs, and those 11,000 trains, each exquisitely scheduled to click over specified tacks at specified intervals of ten minutes, tangled in a grotesque ruin of the most perfectly planned military movement in history.

“Your majesty,” Moltke said to him now, “it cannot be done. The deployment of millions cannot be improvised…Those arrangements took a whole year of intricate labor to complete…and once settled, it cannot be altered.”

“Your uncle would have given me a different answer,” the Kaiser said to him bitterly.

It was not until after the war that General von Staab–Chief of the Railway Division and the man who would have actually been responsible for the logistics of the redirection–learned about this interchange between Moltke and the Kaiser. Incensed by the implied insult to the capabilities of his bureau, he wrote a book, including pages of detailed charts and graphs, proving that it could have been done.

So, what happened here? The Kaiser trusted his military expert, von Moltke–but the real expert in railway operations (and this was substantially a railway question)–disagreed. At the time of decision-making, von Staab’s personal opinion was never even solicited.

Clearly, what the Kaiser should have said when faced with Moltke’s opposition was “Tell von Staab to get his ass in here, and let’s talk about it.” (Or however a German Emperor would have phrased that thought.) Indeed, there was particular reason to do this, given that the Kaiser evidently had some serious concerns about Moltke–as evidenced by his passive-aggressive “your uncle would have given me a different answer” comment.

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On Fire

My childhood and growing-up years were haunted by fire – a thing which I have been reminded about, on reading the horrific accounts of the fast-moving fire that swept a resort town on the eastern shore of Greece’s Attic Peninsula earlier this week, and on reading about the massive Carr Fire just now threatening whole tracts of northern California. I grew up in Southern California, living there until I enlisted after college, went away and never really returned for more than a couple of weeks. (Less a single year to the day at Mather AFB in 1981-82.) My parents loved living in the hills, preferably at the end of a dirt road; if not out of sight of a neighbor’s fireplace sending up a little plume of smoke – then on at least half an acre and that far distant from their rooftop. Dad was a research biologist. He gave the most wonderful nature walks imaginable, and would have been – as he once confessed, being happy as a desert rat, living in a hut in the Mojave. This meant that we were usually living in, or within sight of California chaparral-covered hills – hills which nature has designed expressly for the purposes of burning over, every twenty or thirty years.

There is no escaping that unadorned fact. Fire governs the wilderness. Certain of the native plant seeds do not even properly germinate until heated to so-many degrees. The plants themselves are resinous and burn readily, when the hot wind desert wind blows. This I knew, early on. The standing old-growth forests, and even the newer pine-woods other parts of California and the west – they are governed, bound, ruthlessly maintained by cycles of naturally-occurring fire and renewal. Fire thins the new seedlings, eliminates disease-weakened trees, clears away the mast and muddle – the broom that ruthlessly sweeps away, and renews. This my father taught us. A lesson which certain environmental groups seem to refuse, with the energy of a small child refusing a spoonful of delicious creamed spinach. No! Don’t cut down those pine-bark-infested pine trees! No, don’t clear-cut that brush! It’s icky interference with nature! And don’t do controlled burns, which endanger the spotted lizard-owl something! So the burnable load increases, increases and increases again, and when it finally all goes up, it burns so hot that the earth turns clean and barren, like a kiln transforming clay into pottery. Nature deferred will extract her penalty.

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West Coast Real Estate Starts to Turn

When I moved to the West coast I noted that prices were generally high relative to incomes.  It is well documented elsewhere that San Francisco area housing prices are very high and Seattle has been skyrocketing as well.  In Portland, housing isn’t as costly as Seattle or San Francisco but is very high relative to the local job market, particularly within the city limits and in the nicer areas.  A condo in “the Pearl” in Portland (a local high rise market) is 2-3 times what I’d pay for a comparable unit in my former River North area in Chicago.

From an economic perspective, the income tax changes passed in late 2017, particularly the virtual elimination of the State and Local Tax deduction (SALT) for high earner households, along with continuing reductions in the mortgage interest deduction, should have had an immediate, negative impact on house prices in high tax states such as Oregon and California.  I didn’t see these effects, but changes in the housing market take a long time to appear, because many transactions are already under way and sellers will hang on in the market rather than taking a perceived “hit” to the value that they expect to receive.

It looks like the market, in Portland at least, has crested and is (likely) to proceed in a downward direction.  From an article in Bloomberg titled “The US Housing Market Looks Headed for Its Worst Slowdown in Years

Dustin Miller, an agent with Windermere Realty Trust in Portland, said he’s trying to manage sellers’ expectations, something he hasn’t had to do since the end of the last housing boom. One customer, a baby boomer moving to a new home across the state, expected to have buyers fighting over her house. She got one bid, below her asking price.  “Buyers want to shop and take some time, as opposed to having to rush and throw offers in,” Miller said. “It’s the market correcting itself. At some point, you hit a peak of momentum, and then things level off.”

The real estate agent refers to this as moving from a ‘peak’ to ‘leveling off’ and we will see if this moves to a prolonged rout, like we had back in 2008-9.  It will also be interesting to see if real estate in high tax states doesn’t bounce back as fast as real estate in states with lower tax rates, but we won’t be able to see the net effect of this for many years (and it is but one variable among a sea of variables).

I have a semi-sad theory about this – I don’t think folks understand the impact of the changes in tax laws until they file their taxes.  Whether due to complexity (it is hard to model just a couple of variables in a tax program unless you know what you are doing) or a lack of financial acumen, I believe that after 2018 taxes are filed in the middle of 2019 you will start to see more of a “wealth effect” as home owners start to realize the potentially large impact of the changes to the SALT deduction.

As I look out my window in Portland I hope that they complete the high rise buildings that they are working on, and don’t break ground on new ones.  We used to look at partially completed buildings for many years in Chicago after the 2008-9 crisis, until they finally completed them up to 5 years later.

Cross posted at LITGM

Lavinia Woodward

Theodore Dalrymple, generally excellent, has a logical takedown of the judge’s reasoning in the sentencing of Lavinia Woodward. I assume most readers here have some knowledge of him, but will note in passing that he is a retired British psychiatrist who comments astutely on modern culture. As his practice was in prisons and a Birmingham city hospital, he is familiar with the dark underside of life.  As illustration, one of his books is Life at the Bottom (recommended).

I think I can offer some insight into a possible motive behind the judge’s seemingly backward reasoning. But by way of introduction, it is related to an idea of Tom Wolfe’s, expressed in The Bonfire of the Vanities, and discussed by Steve Sailer a few years ago. All set with that? There is a dull sameness about the criminal justice system year upon year, and those stuck working in it try to find exceptions.

Judges fall prey to the same temptations. They spend their days sending poor and stupid people, sometimes of color, to prison. The judge wants someone to be merciful to, the DA wants someone to nail to the wall, but these opposite desires spring from the same soil.

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Rickover

Recently watched an excellent documentary on Admiral Hyman Rickover, creator of the nuclear Navy. There’s quite a lot in the documentary that is relevant to today’s issues and concerns, for example:  circa 1972, the CIA had assured the Navy that the top speed of Russian attack subs was about 22 knots.  Rickover suspected that they were wrong, and he directed a carrier which was being shadowed by a Russian sub to gradually increase speed.  When it reached 30 knots, the shadowing sub was still there.

Which provides one more interesting data point at a time when we are being lectured about the need to treat the conclusions of the “intelligence community” with reverence.

In a 1974 speech, Rickover told of an ancient people called the Locrians:

These people gave freedom of speech to all citizens. At public meetings anyone could stand up and argue for changes in law or custom, on one condition. A rope was placed around his neck before he began to speak and, if what he said did not meet with public approval, he was forthwith hanged. That, no doubt, prevented disturbing the even tenor of familiar customs and ways of life.

I have encountered some in the Navy who look with nostalgia on this ancient custom.  But we must face the stark fact that an uncriticized society cannot long endure.

Quite a few organizations in America today are following in the footsteps of the Locrians–the universities, especially, but also certain Silicon Valley companies.  And not only them.

I learned of this documentary about the same time I read about a professor who was disturbed that Hispanic students that she interviewed credited their success to their own hard work and self-reliance rather than to affirmative action.

Rickover was Jewish, and he entered the Navy at a time when Jews were not common in that service…and the negative attitudes toward Jews which were prevalent in the society at large were also quite common in the Navy, perhaps even stronger there than outside.  (The Academy yearbook pages for both Rickover and the only other Jewish midshipman in his class were conveniently perforated for easy removal.)

And I wondered:  If Rickover had been influenced by professors and others endlessly and excessively beating the Victimhood drum, would he have been able to achieve the success and the great accomplishments that he did?  Or would he have just folded up and concluded that it was hopeless, that Jews had no chance in the Navy?

Well, probably not Rickover–he was an extraordinarily tough and resilient man.  But there probably are a lot of people who have high potential, though maybe not on the Rickover level, and who are being inhibited and will be inhibited in achieving that potential due in substantial part to such preaching.