About Frank Moraes

Frank Moraes is a freelance writer and editor online and in print. He is educated as a scientist with a PhD in Atmospheric Physics. He has worked in climate science, remote sensing, throughout the computer industry, and as a college physics instructor. Find out more at About Frank Moraes.

Silicon Valley Wage Theft Proves Free Market Rhetoric Is False

Steve Jobs: Not an entrepreneur; A bully and thiefAs you may have heard, employees of high tech companies in Silicon Valley have filed a class action lawsuit claiming that big firms colluded to keep wages low by not competing with each other. These companies are Apple, Google, Intel, Adobe, Intuit, and Pixar. How very “free market” of them! You will find all the nasty details in Mark Ames’ excellent Pando Daily article, The Techtopus: How Silicon Valley’s Most Celebrated CEOs Conspired to Drive Down 100,000 Tech Engineers’ Wages.

What’s especially wonderful about this case is that the primary villain is everyone’s favorite example of the kind of “entrepreneur” we must encourage with low taxes and no aid to the poor: Steve Jobs. Of course, as I note all the time: Apple has got to where it is not by innovating but by packaging. In addition, they use the legal system to attack competition. And now we know that Steve Jobs himself was directly intimidating other companies into making this deal that cost 100,000 employees an estimated $9 billion over five years at the end of the 2000s. Adobe CEO Bruce Chizen wrote at the time, “[I]f I tell Steve [Jobs] it’s open season (other than senior managers), he will deliberately poach Adobe just to prove a point. Knowing Steve, he will go after some of our top Mac talent…”

Because I have worked a lot in the high tech world, I know what a crock most of this “innovator” fawning is. The real innovators tend to get swallowed or crushed by the big companies. The big companies are not innovators—ever. Again: look at Apple. All they’ve ever done is package other people’s technology well. They are above all good at branding. But people on the outside really think they are great. Yesterday, Thomas Friedman wrote a hilarious column that shows just how thoroughly he has metabolized the globalized, libertarian Silicon Valley Kool-Aid, Start-Up America: Our Best Hope. He starts by talking about some banal ideas that he calls “creative” coming from large companies that he calls “start-ups.” And what links all these companies together?

What they all have in common is they wake up every day and ask: “What are the biggest trends in the world, and how do I best invent/reinvent my business to thrive from them?” They’re fixated on creating abundance, not redividing scarcity, and they respect no limits on imagination. No idea here is “off the table.”

This is not creativity or innovation; this is trend chasing; this is what people who don’t have any new ideas do. But of course, Friedman doesn’t understand this. Rich men in nice suits told him it’s the future. And Friedman so wants to believe—he’s written books saying it is the way things are. We learned the lesson of The Lexus and the Olive Tree where he told us that to unleash the free market, each country must put itself in a “golden straitjacket.” And The World Is Flat taught us that globalization is super-keen but even if it ain’t we have to live with it because he and the rest of his class are gonna cram it down our throats.

All of this is about the great libertarian idea of free markets and free minds. The problem is that the markets are anything but free. And even more important, the minds are closed. Friedman is the poster-child for this. He believes in the new global world order and no amount of fact will change his mind. Of course, he’s just the front for the New Gilded Age tycoons who spew out this free-market claptrap while working behind the scenes to do everything they can to distort the market to their advantage.

Dean Baker as always has a extremely insightful take on this whole wage-theft situation. In one sense, it is no big deal: companies are doing illegal and immoral things to increase profits is not surprising. What is interesting, however, is what it says about all of the libertarian rhetoric that comes out of Silicon Valley. They always claim that no government intervention is necessary because in a free market everything takes care of itself. But their actions indicate that they do not think this is true in our current “free” market:

If they really believed the market had a deep sea of competitors in which no individual actor could count for much, then their non-compete agreements would serve no purpose. If Google, Apple, Intel and the other biggies agreed not to hire each others’ workers, it really wouldn’t affect their pay since there would always be new upstarts ready to jump in and hire away underpaid engineers.

The fact the Silicon Valley honchos took the time to negotiate and presumably enforce these non-compete agreements was because they did not think that there were enough competitors to hire away their workers. They believed that they had enough weight on the buy-side of the market for software engineers that if they agreed to not compete for workers, they could keep their wages down.

So the issue is that businesses will continue to abuse workers and the system generally. We should do everything we can to stop it. But what we should not do is believe the free market claptrap that comes from these people. Because when it comes down to it, it is clear that even they don’t believe it.

Suffrage, Hamlet, and Galilean Moons

Galileo GalileiOn this day in 1820, the civil rights leader Susan B Anthony was born. She was an amazing woman who did a great deal, including organizing for women’s suffrage, starting the first women’s temperance movement, and founding the journal, The Revolution. She lived to be 86 years old, but unfortunately never saw women get the right to vote. I was fascinated with her when the United States government came out with a dollar coin with her on the face. It was a great coin because of the smaller size, replacing the totally ridiculous Eisenhower dollars. But a lot of people had a problem with it. How dare we celebrate a feminist on our money! What people actually said was that they confused it with the quarter. I don’t accept that; it is far more difficult to tell a dime from a penny by feel. Regardless, the coin was only minted from 1979 to 1981 and then in 1999. In its place, we now have the Sacagawea dollar which I love, partly Susan B Anthonybecause of the color. (One can do silver-copper coin tricks using the two dollars.) But no one today complains about the size of the dollar, even though it is exactly the same as the Anthony dollar. Regardless, here in California (and Florida, New York, West Virginia and Wisconsin), it is Susan B Anthony Day. So happy Susan B Anthony Day!

John Barrymore was born in 1882. He was one of the great actors. We especially know him for his Shakespearean acting. Here is a bit of a screen test of him performing Hamlet. At the beginning is Orson Welles talking about how great he was. Take my advice: never listen to Welles discuss Shakespeare. He was very good, but when he talks about Shakespeare, it’s drivel. But I think he is quite right about Barrymore. It is the best up to that time. Shakespearean acting has only gotten better, but this is still really good:

Other birthdays: French painter Charles-Andre van Loo (1705); philosopher Jeremy Bentham (1748); Romanian painter Ion Andreescu (1850); great mathematician Alfred North Whitehead (1861); songwriter Walter Donaldson (1893); probably the least interesting of Les Six, Georges Auric (1899); actor Allan Arbus (1918); actor Harvey Korman (1927); actor Claire Bloom (83); screenwriter Troy Kennedy Martin (1932); singer-songwriter Melissa Manchester (63); actor Jane Seymour (63); Futurama creator Matt Groening (60); character actor Christopher McDonald (59); and journalist Josh Marshall (45).

The day, however, belongs to Galileo Galilei who was born on this day in 1564. I guess it is best to call him a scientist, although his most important work would now be called physics. I think mostly of his work on basic mechanics showing that gravitational acceleration is constant. This is because size of the gravitational force is proportional to an objects mass, but that is matched by its inertia. This is not a simple concept.

Galileo is probably better known for his enormous impact on astronomy. He was the first person to seriously apply the telescope to the field. And as a result, he saw things others did not, like the moons of Jupiter, the phases of Venus, and sun spots. He was also a big proponent of heliocentrism, which got him in a bit of trouble with the Church. And personally, I think if you live your whole life without angering the religious dogmatists, you really haven’t lived.

Happy birthday Galileo Galilei!

More Disingenuous Treacle from Mankiw

Greg MankiwWell, Greg Mankiw is out with a great big pile of income inequality apologetics in The New York Times, Yes, the Wealthy Can Be Deserving. His article in a nutshell: superstar actors make more today than they did 50 years ago because they are worth it. Matt Yglesias‘ reaction to this argument is exactly the same as mine. He concludes, “It’s true—times change in ways that are disproportionately beneficial to some people. But that’s not a strong case for believing that whatever distribution of economic resources happens to emerge at any given time is optimal.”

Mankiw uses Robert Downey Jr as an example, so I’ll go along with it. It is true that more people have seen Downey in Iron Man 3 than saw Cary Grant in His Girl Friday. But the extra audience is due to changes in the economy and technology. These are social goods that have nothing whatsoever to do with Robert Downey Jr’s charm and acting ability. Why is he paid more? It’s quite simple: he’s lucky. The way the economy is set up either over-rewards him or under-rewarded Grant. What this means is that a given economic system under different conditions does not reward the same individuals the same. Thus, it must be unfair under some conditions and Mankiw’s argument doesn’t even acknowledge this, much less address it.

Mankiw is up to his usual tricks as well. Rather than looking at total taxes paid by people, he looks at federal taxes, which are the most progressive. This is unconscionable. What is he, an academic economist or a political operative for the Republican Party? Well, we all know the answer to that! He also makes some very questionable assumptions about Downey’s worth based upon the gross receipts of Marvel’s the Avengers. I cannot say whether he is just ignorant of the way actual businesses run (very common among conservatives) or he is, as is often the case, just being disingenuous.

There is a underlying problem with Mankiw’s big thesis that these huge salaries make us all richer: it isn’t true. In 1980, one could reasonably make that argument. But the last four decades have shown that as the top has done better, the middle and bottom have at best stayed even. I hate that people like Mankiw continue to argue this nonsense. If they want to go all Ayn Rand and say that it is tyranny to take a penny away from the rich, that’s fine with me. That’s their opinion. But this argument that income inequality is better for everyone doesn’t hold up. Of course, I know why they keep using it. It may be wrong, but it plays a hell of a lot better than the one about the poor oppressed rich.

This is not the first time that Mankiw has made this argument. Last June I wrote about another article where he highlighted Steve Jobs, J K Rowling, and Steven Spielberg. It’s shameful that he brings up these kinds of examples. All of the important work these people did was as workers, but who he’s defending are primarily owners. He does tip his hat to corruption, but only to say that people like Madoff should be thrown in jail. But as I’m sure Mankiw knows, that’s the exception. When people like James Dimon rob, cheat, and steal, they get bonuses.

I am so sick of reading Mankiw. It seems a couple of times each year, he will come out with another adult fairy tale, explaining to all of us idiots that we just don’t understand economics. And it’s so simple: if you encourage the job creators (You know, people like Robert Downey Jr!) fairy dust will be sprinkled throughout the economy, trickling down on all the rest of us. I think trickle is the wrong word, but what we get from Mankiw is treacle.

Update (15 February 2014)

I can’t believe I forgot to bring this up. As I discussed this morning, even as star salaries are higher than ever, the wages of establish actors have gone down. So even in Mankiw’s own example, we can see as a practical matter, Robert Downey Jr’s $50 million paycheck is not making everyone else richer by bringing more people into the theaters. (Of course, it isn’t Downey who’s bring them in.)

Update (16 February 2014 9:29 am)

Paul Krugman takes Mankiw to task. I particularly liked this:

Mankiw argues that our tax system is fair because the top 0.1 percent pays a higher share of income in federal taxes than the middle class. This neglects the partial offset of this progressivity by regressive state and local taxes. But surely the main point is that to the extent that taxes on the 0.1 percent are high (they aren’t really, in historical context) that’s largely because Mitt Romney lost the 2012 election, so that Obama’s partial rollback of the Bush tax cuts and the high-income surcharges that partially finance health reform remained in place and the Ryan budget didn’t happen. It’s kind of funny to claim that our system is fair thanks to policies that you and your friends tried desperately to kill.

In other words, Mankiw is being disingenuous.

Update (16 February 2014 9:42 am)

Dean Baker does a much more thorough job with Markiw. He starts by noting that Downey’s huge paycheck is only partly the result of technology; another part is the stricter enforcement of copyright. His larger point is that the current system that we have is a choice. It is not at all the most efficient or fairest. As he concludes, “If the 1 percent are able to extract vast sums from the economy it is because we have structured the economy for this purpose. It could easily be structured differently, but the 1 percent and its defenders aren’t interested in changing things.” You should read the whole thing, but here is a taste:

Then we get to the CEOs who Mankiw tells us get high pay because of what they contribute to their companies and the economy. If this is the case, how do we explain CEO’s of companies like Lehman, Bear Stearns, and AIG walking away with hundreds of millions of dollars even though they drove their firms into bankruptcy? When the CEO of Exxon-Mobil gets hundreds of millions because soaring worldwide oil prices sent Exxon’s profits through the roof, do we really think the pay is a function of hard work? How do we explain the fact that CEOs of incredibly successful companies in Europe, Japan, and South Korea make on average around a tenth as much as our crew does?

To Live With Ikiru

IkiruI watched Akira Kurosawa’s Ikiru after many years. It is the story of a man who learns that he is dying of stomach cancer and so decides to use his life to do something meaningful. You can well imagine what kind of sentimental claptrap this would be in the hands of Hollywood. Ikiru—which means “to live”—is not at all sentimental. In fact, the main character dies halfway through the film. But that doesn’t mean it isn’t inspiring. It shows how one man decided to change his life for the better without any of the cheap movie tricks that I so despise. (Think: Beaches.)

The film is a product of the post-war period in Japan and focuses on a bureaucrat, Kanji Watanabe, who follows the tradition of doing as little as possible. This is highlighted at the beginning of the film when Watanebe uses as scrap paper, pages from a document titled, “A Proposal for Increasing Departmental Efficiency.” This is followed by the narrator telling us, “The best way to protect your place in the world is to do nothing at all.” This goes along with a quote provided in Stephen Prince’s excellent commentary from Masao Miyamoto, “The three great principles of Japanese bureaucracy are: don’t be late; don’t take time off; and do no work.” Watanabe wasn’t always like this, but he certainly is at this mature point in his career.

At the same time, we are introduced to a group of local women who want the government to fix a problem. Near where they live is an open sewer that is making their children sick. They want it to be remediated and turned into a park. So they go to the government and end up being sent from one agency to another. They stand as the opportunity that Watanabe needs to find redemption and his pathway “to live”—even if it is for a short time.

(As a political matter, I have a problem with too much focus on governmental bureaucracy. Bureaucratic obstruction in the government was a big problem and still is in many places. But at least in this country, it has gotten much better. Now, the “run around” is much more common in dealing with corporations. A couple of years ago, Paul Krugman noted, “I’ve recently had fairly extensive dealings with both our healthcare system and with the New Jersey DMV. In one case, I encountered vast amounts of paperwork, mind-numbing bureaucracy, and extremely frustrating delays. In the other, my needs were met quickly and politely. So far, then, it’s DMV 1, private health system (and I have very good insurance) 0.” That’s my experience.)

The structure of the film is very interesting. As I said, Watanabe dies halfway through the film. As a result, his actual redemption is shown through the recollections of other bureaucrats as they get drunk at his wake. While sober, they all want to disregard what he has accomplished as just doing his job. But we’ve already seen that all the bureaucrats think their jobs are to do nothing. As they drink they begin to celebrate what he has done and commit to doing it themselves. Of course, the next day at work, they are all back to business as usual. All of them, that is, except for one mostly impotent low-level bureaucrat, Kimura, who acts as the conscience of the second half of the film.

The whole film is episodic. In the first half, we see Watanabe trying different things to make sense of life. An extended section involves a pulp novelist taking him on a tour of the night life. The whole thing is shot from the outside with a distinct subtext of disapproval at the hollowness of it. Then Watanabe starts following a young woman around who quit the bureaucracy because the people who worked for it never did anything. This isn’t sexual. He sees in her a more valid outlook on life. But ultimately, he returns to work, but with the idea of actually doing something. The second half is also episodic, but for a different reason. As in Rashomon, we get different views of the work that Watanabe did. But unlike in that film, it is done to create a single narrative: Watanabe working for the mothers to overcome bureaucratic obstruction.

Despite all of this, the narrative works well. I suspect that had it been normally structured, it would not have worked that well. Or it would have been a much shorter film. Once Watanabe has his insight about what kind of life is worth living, there is little to do except to show the results. So dramatically, the cut to Watanabe’s wake is jarring. But it allows the film to delve more deeply into the social dysfunction of the bureaucracy.

Clearly, there is a cynical take on the film: nothing changes. Unlike in Hollywood films, Watanabe doesn’t start a trend or lead a revolution. If he had, the movie wouldn’t be realistic. It would be just another story of the romantic hero who saves the world. But ultimately, Watanabe does save his world. And in doing so, he helps all the people in that neighborhood who got an environmental hazard replaced with a park. What’s more, he did act as an inspiration for Kimura, who we see at the very end of the film as he walks out of frame having just been watching kids playing in the new park.

Technically, the film is excellent as well. Most of the set design is very crowded until Watanabe has his epiphany. This is represented in the piles of paper that surround all the bureaucrats in his office as well as the night life. I think it is a stretch to suggest that Kurosawa was making a point about how our things distance us from one another, but that seems a perfectly correct interpretation of what got onto the screen. It is made even more concrete as the bureaucrats get drunk, they are seen crawling over each other.

The camera work is typical of the Kurosawa troupe. We see cross cut tracking shots just like we see in Seven Samurai and Ran. It is quite exciting to watch, especially for a film about a man’s existential crisis. There is surprisingly little music used in the film, which helps with keeping it from turning sentimental. I find I’m often offended when films overuse music to tell me what to feel. There is none of that here. But there is some great use of sound, as when Watanabe walks from the doctor in a daze. There is no sound until he almost walks in front of a truck, when all the sound comes blasting back.

Other than the script, however, the core of the film is Takashi Shimura’s performance. If you know him, it is most likely as the lead ronin in Seven Samurai. But I especially associate him with the woodcutter in Rashomon. (He’s also great in the Japanese version of Godzilla; if you haven’t seen both versions you owe it to yourself.) As regular readers know, I’m a big fan of Toshiro Mifune. But he is a star more than an actor. Shimura is a great actor. In fact, it is hard to believe that the little dying Bureaucrat in 1952 is played by the same man who plays the battle weary ronin in 1954. Of course, this isn’t to say he isn’t a star too. Regardless of the part, he radiates charisma on the screen.

It is commonly said that one should read Don Quixote three times: once when you are young, then in middle age, and finally when you are old. The idea is that you will perceive it differently at those times in your life. I’m sure that’s true of any great work of art. It is certainly true that I see Ikiru differently now than I did in decades previous. As a young man, I was much more egotistical—looking at the world only as a means to my fulfillment. Now I see things much more as Watanabe: I would like to be useful to the world. But being useful is not as easy as it sounds. We are all used to doing so little. We sleepwalk through life like we are zombies. It takes effort “to live.”

The Trials of Mid-Level Actors

That Guy... Who Was in That ThingAndrea alerted me to the documentary That Guy… Who Was in That Thing. It consists of interviews with 16 relatively familiar screen actors about the acting business and their lives. It’s interesting because we don’t get much information about actors at that level. I didn’t learn much, however. I’m very aware of just how extreme the winner-take-all economics of the film business is.

Consider, for example, Marcus Chong (who isn’t in the film). He played Tank in The Matrix. Other than the three principal actors, he was the only member of the Nebuchadnezzar who survived. So when the producers made the two sequels, they needed Chong to reprise the role. They offered him $250,000 to do both films—$125,000 each. Chong wanted $250,000 for each. Eventually, the producers replaced Chong with Harold Perrineau in a very clunky script rewrite. This was a huge mistake. As it is, the biggest problem with the sequels is that they introduce so many new and uninteresting characters. Having Tank would have helped a great deal.

Now I understand: $250,000 is a lot of money for roughly 6 months of work. But for actors who spend most of their time not acting, it isn’t that much. And it especially isn’t much for an actor who was one of the best parts of the hugely successful earlier film. And Chong was hardly alone. While the principals made a lot of money from the film, for everyone else, it was just a job. For most people, it is nothing other than a union job. And that’s good, but not great.

This comes across loud and clear in That Guy… Who Was in That Thing. Even extremely well-established actors like Paul Guilfoyle seem to get relatively little pay. Even more than that, the whole Hollywood system is designed to give them little respect. They are just cogs in the machine, to be plugged into roles. What I didn’t know before is that salaries of the actors have gone down over the last decade. Given that they are not seen as draws (although people like Guilfoyle and Xander Berkeley are for me), producers just offer a low salaries and get someone else if they aren’t accepted.

I’m not going to shed any tears for these guys. It is relatively hard to get into the Screen Actors Guild (SAG). Even so, the average yearly salary of SAG actors is below $5,000. So most actors are making little money. I wouldn’t be at all surprised to learn that the median salary is zero. So these guys are doing okay. And they are doing what most people go into acting for: to act and get paid for it.

But it does bring up the issue of income inequality. I don’t mean the fact that acting is a winner-take-all market. Everyone knows that and so people who go into the business know what they are getting into. The big conservative argument of why we have to pay the “winners” so much is to motivate everyone else. But I don’t see that at all. If there were something vaguely linear about success and financial gain, I don’t think anything would change. Certainly these middle-level actors continue to do good work despite the fact that they know they will never be stars making millions of dollars per film.

Regardless, the documentary provides a far better description of Hollywood than is usual. And generally, what is happening there is the same thing that is happening in the rest of the economy. It isn’t a question of the stars versus the rest. The real money in Hollywood goes to the producers; stars make most of their money by being executive producers. So again, it’s all about the workers versus the owners. In general, working actors and technicians do okay. But very few are getting rich. Luckily for them, they still have strong unions. Without them, it would be far worse—just like in the rest of the economy.

Robots, Patents, and Inequality

Dean BakerDean Baker is probably the most insightful economic thinker in the public discourse. But there is one area where I think he is wrong. He complains that we have nothing to worry about from automation because it will make our lives better. This is in contrast to those of us who believe that robots are like other forms of capital and will be distributed the way that capital is now: unequally and unfairly.

Of course, Baker is aware of this problem. He just prefers to use the automation story to highlight other problems in our society. This morning he wrote, The Scary Robot Story Stems from Confusion by the Story Tellers. In it, he argues the real problem is not the robots, but long patents protection. In a free market, robots will be cheap. “In short, the scary story is a story of patent policy designed to redistribute income upward. It has nothing to do with technology.”

I agree. But you could say the same thing about globalization. The problem isn’t globalization, it is all those other policies designed to redistribute income upward. Our inequality problem is the result of those policies and not the broader economic trends. But given that we do have these policies, globalization is a very bad thing for most people. And robots are a real concern. As Donald Rumsfeld might say, “You lose your job to robots with the policies you have, not the policies you want.”

Baker seems to be focusing too much on the theoretical here. This is not like him. But I suspect in his mind, discussions of robots and automation are a distraction from very real problems in the economy now and going forward. The inefficiencies of our intellectual property system are a big issue to Baker. And it is a big issue to me. But the problem with robots is much deeper than patents.

The real problem is continually increasing inequality. Our broken intellectual property system is a result of that inequality. After all, we didn’t get copyright lengths that are roughly a century long because writers and software developers were demanding it. We got them because powerful rentiers didn’t want to lose their ability to charge rents on really old stuff. The biggest example of this is Disney with Mickey Mouse. So the more robots we have, the more inequality will increase. And that would just result in longer and stronger patent protections.

So I agree with Baker that robots are a second-order problem. But they are still a problem given the unequal status of people in the nation and the world. And the fact that people talk about robots is indicative of the fact that they don’t see our system changing. Unfortunately, they have good reasons for being so cynical.

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Why Isn’t Alan Parker Making Films?

Alan ParkerSometime around this day in 1818, the abolitionist Frederick Douglass was born. Given that he was born a slave, we don’t know exactly what day he was born. He only managed to escape after many attempts at the age of 30. His autobiography, Narrative of the Life of Frederick Douglass, an American Slave, is an amazing book. It shows the complexity of the slave-owner relationship without whitewashing its absolute brutality. I especially remember his discussion of what all the slaves considered a “good” plantation manager as one who would not take pleasure in whipping them. I always remember this when I come upon slavery apologists. And sadly, I come upon slavery apologists quite often. There are a lot of people, in the south especially, that while claiming that slavery was wrong, still want to argue that slaves were treated well. Other than having watched Gone With the Wind, I don’t know of any actual evidence they have to support their claims. On the other side, we not only have the testimony of escaped slaves like Douglass, we have the treatment of Nat Turner and countless testimonies of freed slaves after the Civil War. In this last category, I recommend Andrew Ward’s The Slaves’ War: the Civil War in the Words of Former Slaves. And you definitely should read Douglass’ autobiography.

Other birthdays: inventor of the typewriter Christopher Latham Sholes (1819); inventor Margaret Knight (1838); meteorologist Charles Thomson Rees Wilson (1869); painter Nina Hamnett (1890); comedian Jack Benny (1894); labor organizer Jimmy Hoffa (1913); actor Edward Platt (1916); mathematician Herbert Hauptman (1917); actor Vic Morrow (1929); actor Florence Henderson (80); dancer Gregory Hines (1946); magician Teller (66); radio host Terry Gross (63); actor Meg Tilly (54); and actor Simon Pegg (44).

The day, however, belongs to Alan Parker who is 70 today. He is one of my very favorite directors. And he hasn’t made a damned thing in over a decade! I don’t know why. Anyway, he is one of the most varied filmmakers ever. And yet, he has a clear visual style and storytelling perspective. To give you some idea, he directed Midnight Express, Mississippi Burning, The Commitments, and Evita. My personal favorite is Angel Heart, which I think is a perfect film. Sadly, Parker seems to regret doing the film because it doesn’t have an important message. If bringing important messages to the screen means more things like The Life of David Gale, I beg Parker to bring me more melodrama! Regardless, I don’t think Parker has ever made a film that wasn’t at least worth a try. And of his 14 films, 13 of them are definitely worth watching.

Happy birthday Alan Parker!

Economic Lensing and Fairness

ProductivityThere is this thing in economics called Marginal Productivity Theory. It claims to show that in a world of perfect competition, everyone makes exactly what they are worth. So if a CEO makes $30 million per year, that must be because he adds $30 million per year to the economy. It doesn’t really matter whether the theory is true, of course. There is no such thing as perfect competition in the world. This is something that constantly amazes me. Physicists deal with idealized systems because it is often the case that real world systems can be approximated that way, or controlled to be that way. But economics, which is a social—and therefore, practical—science has many practitioners who make the most ridiculous assumptions about the state of the world.

I came upon Marginal Productivity Theory because I’m trying to get my head around what I think is a fundamental flaw with a pure capitalist system. What I have seen all the way through my working life is that even on its own terms, people do not get paid what they are worth. The big example of this is the CEO who costs his corporation millions but ends up with a large bonus. But let’s not think that large. In general, the way the economy works is as a lens to magnify the differences between people. I have seen this kind of thing often:

Person Productivity Reward
A 1.01 10.00
B 1.00 1.00

What I’m showing here is just an example, but a 1% advantage in productivity can easily produce a ten-fold increase in compensation. That’s not the point that I’m making, however. Rather, I just want to show the economic system does do this to one extent or another. And the effect gets particularly ridiculous on the upper income margin. But in America, we just assume that the there is some kind of linear correlation between someone’s value and their reward. But this is most clearly not the case.

Consider a winner-take-all market like screen acting. If George Clooney had never been born, then there would be someone else in his position. His value to the economy might be slightly less, but it would be close. Instead, it is quite possible that the Slightly Less Wonderful George Clooney Replacement doesn’t even make a living as an actor. But one thing is for sure, because of the lensing effect of the economy, this guy isn’t making anything close to what Clooney makes. But any fair economic system should only reward Clooney for the marginal improvement that he provides over the Slightly Less Wonderful George Clooney Replacement. (Note: I’m a big fan of George Clooney; he’s the Cary Grant of my generation.)

All of this is to counter the conservative mythology that people are worth exactly what they are paid. I mean this in strictly economic terms. I’m not even considering all the hobbies and so forth that people have that add value to the society but are never compensated. Unfortunately, the neoclassical economists are convinced that their simplistic and unrealistic assumptions are valid. So they claim that of course the economy is perfectly efficient. Never has a tautology been so widely believed! Meanwhile, in the real economy, we have all kinds of inefficiencies and distortions. But given that this theory tells the rich that they absolutely deserve everything they have and more, it is accepted as fact.

If we are ever to make the economy relatively fair, we must get past this idea that the markets are perfect and someone’s pay is representative of their economic value. This is one of the most damaging ideas in our society.

A Little Valentine’s Day Reality

You'll Do

I am a cynical son of a bitch when it comes holidays and romance. So Valentine’s Day is a big day for me. In 2012, I wrote The Blood of St. Valentine’s Day. It was about the two (or three) saints who the day is most likely named after. And it turns out that they were both brutally murdered, like most saints. Ah, romance! In 2013, I wrote Play Valentine’s Day Well. It was my advice to men about how to play the game of love. Actually, it is very good advice. But what do I have to say for 2014?

According to Wikipedia, “In 1797, a British publisher issued The Young Man’s Valentine Writer, which contained scores of suggested sentimental verses for the young lover unable to compose his own.” This is still with us today. But now guys can’t even be bothered to copy the trite and plagiarized sentiments; we just buy greeting cards. Still, I think it is a hell of an idea. Most women love it when you write them a poem. I know because I’ve done it for countless friends and it always plays well.

So I thought for 2014, I would update that tradition. I offer the following poem to young lovers everywhere to do with as they please:

I hope that I should never see
You screwing a guy who’s not me.

A guy who’s handsome and can speak,
Who’s manicured and does not reek;

A guy who’s total take-home pay—
One month of mine takes him one day;

A guy who drives a great new car,
Who pals around with movie stars;

Upon whose greatness all rely,
And always hate to say goodbye.

If this attractive you would be,
You never would have been with me.

I actual like that poem because it does get down to the ultimate truth of romance: we punch our weight. People don’t hook up with us because we are the best person in the world to them; we hook up because we are each about as good as we can get. And that’s great! It’s the nature of the universe. The only word that I disagree with is “if” when Stephen Stills wrote, “If you can’t be with the one you love, love the one you’re with.” Settling is not only acceptable, it is necessary.

As you live through this Valentine’s Day, remember the wisdom of That Mitchel and Web Look. Be a little bit deluded in each other’s favor. That’s what love is!

Rian Johnson’s Problematic Looper

LooperAnother day, another time travel movie. Last week, I watched Looper and last night, I watched a bit of it to remind me what it was all about. It is the third film by Rian Johnson. The first was Brick, an interesting but ultimately disappointing film. The second was The Brothers Bloom, an interesting but ultimately disappointing film. Looper is also an interesting but ultimately disappointing film.

The basic plot is that a crime syndicate 30 years in the future sends people back in time to be killed and disposed of. The Loopers do the killing. When they are done with their careers, they from 30 years later are sent back to be killed. After that, they get to hang out for 30 years until the syndicate finds them and sends them back in time to be killed. Time travel narratives are always difficult. I’m fine with paradox, but it really creates a drag on drama. And personally, it takes me out of the film.

A good example happens at the beginning of the film where a minor character allows his 30 year old self to escape. In order to get the older character to come in so he can be killed, they start cutting parts off the younger character’s body. These immediately disappear from the older character. By the time he comes in, he has so little left of his body that he has to crawl. This creates nothing so much as a thousand questions in my mind. It is later explained in the film that as different things happen, it changes the probability distribution of the future character’s life. I think a fairly interesting science fiction story could grapple with some of these issues. But the film does not and it creates a muddled foundation on which to hang the plot.

Apart from this, there are other problems. Johnson is a distinctly intellectual writer. When it comes to emotion, he is largely lost. Other than having less stylized dialog, the main character in Looper (Joe) is no different than the main character in Brick. They are both hard men who don’t seem to care about anyone. Yet both plots depend upon the character actually caring. There is no arc for the character. This is particularly problematic in Looper, where the plot depends upon Joe changing from selfish to altruistic. In the end, I didn’t buy it.

The film is also overly dependent on exposition voice over. It’s almost too much at the beginning when Joe provides what seems like a treatise on loopers. And it comes in multiple chapters, I assume because even Johnson realized he was telling the audience way too much to do it all at once. But that isn’t the greatest sin—we are used to films talking too much to get the plot rolling. The problem is at the end when Joe does something that is completely out of character. The denouement is totally dependent upon it. But it would have made no sense if Joe hadn’t been there to explain it.

Having now seen all three of Rian Johnson’s feature films, I do think I have a handle on him. I think he is a good director. And as a writer, he has a lot of good ideas. But he is badly in need of a writer to fix the many problems that he doesn’t seem capable of fixing. First, he needs someone who can write interesting characters. Even his best characters are two-dimensional. Second, he needs someone who can provide an emotional core to his scripts. He’s clearly aware of this problem because he does play around with it, even if he is ineffectual. And finally, he needs someone who can land the ending. Brick was okay because it was pure genre. But both The Brothers Bloom and Looper have endings that don’t mesh with what came before.

Grant Wood and Lots of Songs

Grant WoodI just got word that Ralph Waite has died. You probably know him as the father on The Waltons. But more generally, he was a character actor—undoubtedly the most fulfilling kind of actor one can be on the screen. But I have long admired him for a film I’ve never seen. In 1980, he wrote and directed the film On the Nickel. It is the story of a ex-drunk who gets lonely for his old skid row drinking buddy. So he goes and finds him and stuff happens. Like I said, I haven’t seen the film, but it looks like an inspiring work. I do have mixed feelings about it. I’m not fond of people romanticizing drug addiction. On the other hand, the film clearly shows the drunks as more than the sum total of their problems. My hope for it is that it is as good as They Might Be Giants. And that is very good indeed. Here’s the trailer:

On this day in 1910, William Shockley was born. He is best remembered as the co-inventor of the transistor. So he is one of fathers of modern electronics. But he is most remembered for his beliefs in eugenics and racial differences in intelligence. The thing about all of this is that intelligence tests are a mess. I’ve discussed this a bit with regard to Jason Richwine and the Flynn effect. But regardless of the science, what we see with Shockley is racism dressed up as science. It just goes to show that you can easily be brilliant in one field and clueless in another.

And now, if you don’t mind, we are going to have a little musical interlude. There are a number of musicians with birthdays today. I don’t have a lot to say about any of them, so I’m mostly just going to present some songs. The first musician is Tennessee Ernie Ford who was born in 1919. Yesterday, I wrote about the Red Army Choir singing “Sixteen Tons.” That was a whole lot of fun, but it was Ford who had a mega-mega-mega-hit with the song. So get those fingers snapping, because here we go:

Peter Tork is 72 today. He was the member of The Monkeys who wasn’t all that cool with it. He was also the one with red hair. Here he is doing Goffin and King’s “Pleasant Valley Sunday”:

Peter Gabriel is 64 today. I used to be a huge fan of his, but I’ve been out of touch for some time. For now, let’s listen to his first solo single, “Solsbury Hill”:

And then the unique Henry Rollins is 53. He was, of course, the primary lead singer of Black Flag. It is interesting to see him now because he is so muscular. But he used to be a skinny little thing. He started working out because of all the violence at Black Flag concerts. Anyway, here he is with Rollins Band, doing a very good and funny song “Liar”:

Other birthdays: great Rococo painter Giovanni Battista Piazzetta (1682 or 1683); economist Thomas Malthus (1766); philosopher Lev Shestov (1866); economist Roy Harrod (1900); Burmese painter Aung Khin (1921); actor Kim Novak (81); actor George Segal (80); actor and personal man-crush Oliver Reed (1938); theologist Elaine Pagels (71); actor Donald Sumpter (71); actor Stockard Channing (70); and Jerry Springer (70).

The day, however, belongs to the great painter Grant Wood who was born on this day in 1891. He is best known for the painting American Gothic. I think it is a remarkable painting just because of its composition. Thematically, no one seems to really agree about it. Some have claimed that it is is satire about American repression and others think it is a celebration of American hard work. I side more with the satire crowd. Wood, of course, was satirizing nothing. But the painting does bring to mind the vacuousness of the American work ethic: we work a hard and long because that’s the way we are, and we get no special joy out of it. The father looks right at the observer, so one gets a sense of resolve from him. The daughter is looking away, providing a sense of acquiescence. For good and bad, it is a representation of America.

Appraisal - Grant Wood

I haven’t seen a lot of other works by Wood, but nothing that I have seen is as powerful as American Gothic. But his work is quite impressive nonetheless. I see in his work a mature synthesis of a lot of different art trends. There is especially a lot of illustrative and “primitive” aspects to his landscapes. I would like to know more of his work. I’ve requested a number of books on him, so if he becomes another of my fascinations, I’m sure you’ll be hearing about it.

Birthplace of Herbert Hoover - Grant Wood

Happy birthday Grant Wood!

Ranting Leftist on Economic Inequality

Raise the Minimum Wage?

As a ranting leftist, I have a little economic news to impart to you. It seems that what people like me have been saying for a long time is backed up by economic data: both the private views of the rich and the public views of the mainstream are driven by the self-interest of the power elite. Who that is allowed on network television would ever have imagined?

Last week I saw a segment on The Young Turks, What Changes When You Win The Lottery. It was about an article by Andrew Oswald and Nattavudh Powdthavee, Money Makes People Right-Wing and Inegalitarian. As I’ve written about here, in general, the rich are conservative and the poor are liberal. So these researchers looked at why that is, “Rich people typically lean right politically. Are they motivated by deeply moral views or self-interest? This column argues that money makes you right-wing. It shows that lottery winners in the UK are more likely to switch their allegiance from left to right.”

Their conclusions are disappointing but hardly surprising. One can imagine someone like Daymond John (founder of FUBU) thinking that he made it on his own so anyone could and thus his being a conservative. That would be how humans acted if they were morally rational. But it seems what really drives us is our sense of self-justification. And I get that. We all want to think that the bad things that have happened in our lives are the result of bad luck, and the good things that have happened are the result of our own brilliance. But it is sad that we generalize about this to others, and use it to justify high levels of income inequality just because it makes us feel better. As the authors conclude, “Voting choices are made out of self-interest and then come to be embroidered in the mind with a form of moral rhetoric.”

Paul Krugman discussed this study today along with another paper that discusses a different aspect of inequality. The paper by two IMF scholars, Davide Furceri and Prakash Loungani, is, Who Let the Gini Out? Searching for Sources of Inequality. They find that the standard neoliberal economic policies actually make income inequality worse. The two issues they look at are austerity (which lowers employment rates) and increased capital flows (which allows companies to move operations away to cheaper countries).

These two studies do not bode well for the world. It means that mostly the rich are trapped in thinking that high levels of income inequality are good simply because it is good for them. Related to this is that the neoliberal policies that almost everyone who is given a voice in the economic debate accept as God given. In fact, it is quite common for economic reporters to scoff at anyone who argues that “free” trade agreements might not be so great.

Krugman puts it exactly the way I would, so I will leave the conclusion to him:

So, if you were a ranting leftist, you might say that political attitudes are shaped by class, and that ideological justifications for high inequality are just a veil for class interest. You might also say that “sound” economic policies are really just policies that redistribute income upwards. And it turns out that the econometric evidence more or less supports your rant.