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January 29, 2007

More Thoughts on Pecuniary Externality

Again go wild, go wiki and check out pecuniary externality.

Now then. I’ve been giving some thought to this idea and what impact it has on all of us. The wiki definition got me thinking…how do we pay attention to this economic principle as it plays out over time? And how do we assess the positive and/or negative outcomes? And positive and/or negative for whom?
One externality I thought of was...

Proposition 13 here in California that was passed in the ‘70s. At the time, as I recall, Jerry Brown (now Attorney General) was governor. Also at the time the state enjoyed a $5 billion budget surplus. Brown wanted to save the money for a rainy day that he expected to be coming. He also wanted to look at the possibility of creating a computer networking connecting all the public schools in the state. For that absurd idea the press labeled him “Governor Moonbeam”. Go figure.

Back to Prop 13. (BTW The Cato Institute has a more positive take on this here.)A number of conservative wanted that money to be returned to taxpayers through tax rebates and caps on property taxes. They won. Over time what occurred was a measurable decline in the quality of public education (paid extensively through property taxes at the time). Prop 13 also made it less likely for couples in the suburbs to move after their kids had grown because their property taxes were so low. That meant that young couples had to buy homes farther away from metro hubs like San Francisco and Silicon Valley increasing the need for wider freeways and so more traffic. This led to more pollution and of course more respiratory ailments among suburban children and so on and so on.
I guess if you are a developer out on the outer ring of suburbia, or a pediatric pulmonary specialist, or a civil engineer with a contract with CalTrans these externalities turned out to be good things. For the rest of us…

Any econ majors out there care to comment?

January 27, 2007

Getchure Body Bags, Toe Tags Right Here!!!... Dark Humor Shines Light, Raises Money

Not long ago I saw a local public affairs program on a Philadelphia TV station where various community leaders and activists were talking with local government officials about youth violence and the skyrocketing homicides in the city (400 last year). One of the participants was Paul Vallas, the superintendent of the public schools there. At one point an interesting issue came up – who pays the funeral costs for these youngsters, if their families cannot afford to bury them? The answer is: the Philadelphia Public Schools. The superintendent finds the money somehow and then negotiates some consideration from local funeral homes to help with the expenses.

There was something oddly touching about this. Something deeply human emerged from an otherwise very bureaucratic and dehumanizing conversation. Somehow we find a way to bury these children. We just don’t seem to have the wherewithal to keep them alive.

Then I came across this site, Skeletons in the Closet, from the Los Angeles Coroner’s Office. The folks there sell a lot of cool stuff with logos attached. Stuff like garment bags with a “Body Bag” logo on it, key chains made with official coroner toe tags. They also have a full line of shirts and jackets; even office supplies like post-it notes and mouse pads with body outlines on them. For those with more refined tastes, they even have kitchen supplies like cutting boards with chalk outlines and the tag line “We have our work cut out for us”.

This dark humor isn’t for everyone, of course. The money they raise from this enterprise goes to fund youth DUI prevention programs and such.

This may be a great idea for other cities as well. Perhaps cities like Philadelphia could launch a similar product line to fund more gang intervention programs, or leadership programs in middle schools. And oh yeah, maybe some of the funds could also be used for burying our kids. Just a thought.

Again here is the link.

January 24, 2007

529 Tuition Plans & Pecuniary Externality

First off here is a working definition of "pecuniary externality".

Andrew Samwick, an econ prof at Dartmouth, chimes in on his blog, Vox Baby, about 529 Tuition Plans. Not sure I get the whole thing (I skipped Econ in college), but I think the gist seems to be that over time the rise in college tuition will go up as the size of the average size of 529 plans go up.

He talks about this in terms of “pecuniary externality”. Some excerpts:

The pecuniary externality comes in when we think about how much the tuition will go up. What drives that? I'd argue that it will be the average size of a 529 plan, as would be the case in any market responding to an increase in consumers' willingness to pay for a good. Since the tax advantage is positively related to income, even if all of the money going into 529 plans were new saving, it would be the higher income families that would have the larger-than-average 529 balances and the lower income families that would have the smaller-than-average 529 balances. (If the higher income families are simply shifting money from other accounts to 529 plans, then this strengthens the argument.)

Putting this all together, we can infer that the list price increases in college costs could outstrip the capacity of low-income families to pay them from their 529 plans. Depending on how much colleges raise their list prices and how the details of financial aid programs work out, lower income families may be worse off by the presence of 529 plans, even if they are saving through them.

Here is the link.

And here is Professor Samwick's entry on pecuniary externality as it relates to health care.

An Idea Whose Time Has Come… Or Has It Gone?

One of the problems I have always had about moving up my alarm clock by a few minutes to make sure that I am on time is that I always knew that the time was rigged, and then I would make adjustments. And then I would race to my appointment hoping to be on time.

Finally there is a new clock (although with no alarm yet) that sets a random time forward (between 5 and 15 minutes more or less). Since there is no way to know exactly how far off the clock is, those old adjustment strategies will no longer work.

Now if they can make it so that it is off by an hour or so…

January 23, 2007

Transit Publicus – Week 1

My first week using public transportation in Philadelphia is winding down. Or is it winding up? Whatever. It is almost over. While I can’t say that I have had a breadth of experience – only two bus routes and two train routes in the city and suburbs – my experience does not lack depth. I have taken these routes at various times of the day and night, and I have used them during peak hours, off-peak hours, and weekends.

A little context may be in order. For the past year I have been spending most of my time on the west coast in the Bay Area and the Wine Country. When I decided to stay here in Philadelphia on a slightly more permanent basis (three weeks a month more or less), I was faced with the decision about “personal vs public transit”. So, I chose public for a variety of reasons, not the least of which being the cost of personal transport.

Saving money was not the only factor in my calculations, though. I have been in any number of conversations with various “fellow progressives” over the last few years about how important it is for all of us to begin changing our behavior in response to the global environmental crisis that is in the forefront of most of our minds these days. Just one problem, however. I did not see any of us (including me) actually changing that behavior, especially when it came to a choice about giving up our cars and relying on public transit to get us there and back again. So, I decided to forgo getting a car, and see what it is really like to join the masses that comprise mass transit.

Before I head off to the tailor shop to be fitted for some saintly robes, I do have a few carbon sins I need to confess. Once I make that confession and firmly resolve to sin no more, I will immediately head back to the Bay Area, get refitted for shoes that will leave a carbon footprint to rival Bigfoot’s, and engage in the wanton excesses that come with living in the land of the sixteen-lane freeway. And a more than passing mention must be made of the one hundred plus trans-continental flights I have taken over the past six years.

Maybe I should just cancel that fitting appointment at the tailor shop and get a hair shirt off the rack.

Ok back on track… So, what have I noticed in this first week with a diminished footprint? Well, let’s deal with the obvious first. It is both the most obvious and least discussed aspect of the public transit conversation – black folk take buses; white folk take trains. I don’t know how this happened. It has no power of law (at least black folks are free to sit anywhere they wish nowadays), but it might as well have the power of law the way it plays itself out. For me, as a middle-class white man, taking the bus means that I will be the only white guy on the bus, and usually the only white person period. Not so for trains, though.

Taking the train is an exercise in middle-class predictability. I know I will be surrounded by others who look like me, act like me, and probably think like me (although I hold tenaciously to the delusion that my thinking is somehow unique). Oh there are any number of persons of color on the train, but the most striking difference is the number of white middle-class passengers that are regulars.

Perhaps the bus routes have something to do with this. Maybe it is the perceived unpredictability of the bus schedules. Maybe this, maybe that. But here’s the thing, so far the buses and trains have pretty much taken me anywhere in the city I wanted to go.

Before I close this first week’s journal entry, I need to mention another form of public transit I use here from time to time – Philly CarShare. This non-profit organization has dozens of “pods” scattered throughout the city with cars (mostly Priuses) parked in designated spaces. I can then reserve a car on the web. There are enough pods nearby that I have never had a problem reserving a car at the time I needed one. The cars have a computerized sensor on the windshield and I have a doohickey fob thingy (sorry to be so technical) that I put on my keychain, which allows me to swipe and drive. The cars cost $7 per hour and that includes gas, insurance, maintenance, everything. For anyone living in Center City, this is an unbelievably sensible way to go – both from an economical and environmental perspective.

Well, that’s it for now. Next entry in a few weeks when I return to Philadelphia.

Stay safe. Be green.

Afterthoughts... after the jump.

Afterthoughts...

One more thing that I noticed during the first week that may be worthy of note…
early last week I went to the Chestnut Hill section of the city to use an internet café. It is a very posh part of town with lots of aromatherapy spas, fine paper and stationary stores, quaint candle shops – you get the idea. When I went to the counter to pay for my coffee, the very pleasant young barista asked me if I needed my parking validated. (There are several parking lots in the business district, and parking is free is for active shoppers.) I said no, and that didn’t drive there.

Then it occurred to me how many subtle, and not so subtle ways the car is subsidized at the expense of the environment. Why is it that I could not show my weekly transit pass to this pleasant young woman at the counter and get a discount on my coffee purchase? In fact why aren’t there any number of establishments in the city doing the same thing. If I have a Public TV membership card, I can get discounts all over town. Why not with a SEPTA (the name of Philadelphia’s transit system) card?

This led me to think about the fact that a generation to two ago the #23 bus route I took to Chestnut Hill was once the 23 trolley line, although my parents would have called it “the 23 Car Line”. The trolley tracks ran from Chestnut Hill in the northwest corner of the city along Germantown Avenue (an old colonial road that ran on a diagonal through the city) and then down into South Philadelphia. In those days trolley lines such as the 23 served not only to move people about, but also to link every socio-economic sector of the city seamlessly. Most of the tracks are gone now; the cars now able to drive down the center of the streets without waiting for passengers to get on and off. All so much more efficient, except that we have lost those small moments of connection, those trifle bits of social capital when we were not so alone, so self-contained.

Race and class need to be more prominent in any conversations about public transit. There is something very wrong with me being the only white guy on the bus... This must change.

Well that really is it for this entry. Maybe in the intervening weeks I’ll research some of the transits systems that we once had in key cities all over the country.

January 19, 2007

CA Bill to Ban Spanking Young Children

Two questions: 1) what took us so long as a society to have legislation like this? 2) why just banning spanking of children under 3?

Let’s be clear – spanking is hitting, spanking is violent, spanking is an assault. The subtext to this whole conversation about spanking is that children are still seen as “belonging to their parents”, as in “property of…” This may well be the heart of the matter. What if, rather than children “belonging to”, parents are “responsible for…”? What if parents begin to see that their children are not their property, but are potentially autonomous human beings who deserve to be treated with respect even when they also need to be disciplined?

Where is the line between spanking and child abuse? Since this line is impossible to draw, perhaps we need to avoid going down that road at all.

Here is the story.

January 16, 2007

MLK Day

One of the many things I love about Martin Luther King Day is that I hear so many recordings of his speeches and sermons on the radio. It occurred to me that we can hear his voice, and be inspired, anytime we want at The King Center site. It is heartbreaking to recall just how young he was – not quite 40. Perhaps it is now time for the thirty and forty somethings to finally take over and begin to run this country and this world. They can do no worse than this generation is doing.
A belated happy MLK Day! Hope you had a chance to serve your community yesterday.

January 15, 2007

Influential Jazz Musician Dies

It is sad to learn from the LA Times and in The Philadelphia Inquirer that saxophonist Michael Becker, winner of 11 Grammy Awards, died at age 57 of leukemia.
Cincidentally, Alice Coltrane, wife of legendary saxophonists, John Coltrane, also died this past weekend. This is an eerie coincidence given how influencial Trane was to Brecker's growth as an artist.

Here is a clip on YouTube of his remarkable playing. This one on an EWI. And here is another great clip.

January 13, 2007

iArrogant iApple May Have Clear Shot at iPhone After iAll

iArrogant iApple May Have Clear Shot at iPhone After All

It turns out that Cisco Systems may not own the iPhone trademark after all. Some experts point out that in order to maintain ownership of a trademark, a company needs to file a “Declaration of Use” within 6 years of the initial filing. Looks like that didn’t happen. If that is the case, it may well be that Apple may be able to use the iPhone name without having to agree wit any of Cisco’s terms.
Wow! Someone at Cisco is having a long day!

Here is one legal opinion.

January 11, 2007

Apple’s New iPhone… iArrogance It Seems

During his presentation at MacWorld this week, Steve Jobs announced Apple’s latest in coolness – the iPhone. And it could do for Apple in the telephone business what iTunes and the iPod has done for them in the music (and soon the movie) business.

There is only one problem – Apple does not own the iPhone trademark. Cisco Systems does. It appears that Jobs jumped the gun, and assumed he could muscle a company like Cisco. That might turn out to be too big a stretch even for Steve Jobs.

In his corporate blog, Cisco General Counsel, Mark Chandler, explains why Cisco is suing Apple over the trademark infringement. According to Chandler the issue wasn’t about money, but about iNteroperability between their product and Apple’s sometime in the future. Playing well with others has never been Apple’s strong suit, and it seems that this time it might cost them a cool name to go with their new cool phone.

Here is the Cisco press release. BTW speaking of coolness, check out Cisco's new logo - the bridge is very cool.

More info here @ news.com.

January 10, 2007

Take Public Transit and Keep the Change

In a new study just released the average two-car family can save over $6,000 a year if they give up one of their cars and one person commutes on public transit instead of driving. That might mean a savings of $35,000 to $50,000 over the life of a car.

Here are the details.

January 4, 2007

From the Web Archives…

This appears to be the first actual website on the World Wide Web (W3 as it was called in those days). It is just a brief list of links that explain what the web is, the people developing it, its history and so forth.

The first registered website still in existence is not a well known one. It is symbolics.com registered 15-Mar-1985. Microsoft.com? Not even in the first 100 sites registered. Apple.com? It comes in at #64 registering on 19-Feb-1987.

The web, the internets, the tubes all seem to have arrived overnight. Actually, it took a number of years to develop into even the rudimentary tool it was by the time Microsoft saw its potential.

January 3, 2007

Photographs That Changed the World

There is an article by Ransom Riggs in the most recent issue of Mental Floss Magazine, called 13 Photographs That Changed the World. Some of them are iconic… others maybe not so world changing. Einstein sticking out his tongue? Che's body on display in Bolivia? Not so sure.
There are a few missing, I suspect. No photo of the flag raising on Mount Surabachi. No photograph of the earth taken from the moon (well maybe that is not technically a photograph). No photo of Jack Ruby killing Lee Harvey Oswald.
It is, though, a good start.

2006 Man Booker Prize Winner Interview

Kiran Desai, last year’s winner of this prestigious prize for fiction writing awarded to an author who is a citizen of the UK or the Republic of Ireland gives a brief, but fascinating, interview about her book, The Inheritance of Loss. And at 35 she is the youngest woman to have won this award.

The Man Booker Prize site is here. And the interview is here.

Hi Res Photography – No Longer Just for the Spooks

For some time now we have all been hearing how the CIA, the NSA and their sister organizations “on the dark side” (as Dick Cheney calls it) have been able to use hi resolution satellite images to spot details from space. Now hi resolution photography is becoming increasingly available to the rest of us mortals. In time these technological developments may be as problematic for privacy advocates as government surveillance.

Here (the thumbnail on the left) is a high-resolution image of downtown Boston. At first all you will see is a panorama of the buildings. If you place your mouse in the very center and double click, however, you will begin to see just how powerful this tool is. Soon you will notice that there is a motorized tourist trolley. In no time you can read the sign on its side “Old Town Trolley Tours and Charter”. There is a pedestrian on the sidewalk - a black male carrying something under his arm, perhaps a newspaper, and possibly a cup of coffee in his left hand.

In the frame on the left you can see plants on someone’s deck. You can even notice that several of them are on their side, proably from the wid. It would seem that anyone living in that apartment, if they had happened to be out on that deck when the photo was taken, might have had an expectation of privacy.

That was then. This is now.

January 2, 2007

An Energy Audit

The new year brings on many resolutions – trips to the gym, organizing closets, knuckling down to finish that novel… oh yeah, and organizing all those receipts for the accountant.

While you are doing (or more likely not doing) all those endlessly fascinating tasks, you might also cosider doing an audit of your personal CO2 emissions. And below is link to a form that will help you do just that.

Be the change… Happy New Year.

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