Monday, January 31, 2011

Skeptics And Thermostats


By William Easterly | Published January 26, 2011

Many have suffered from being in a building where there was a centralized thermostat for the whole building (or the whole floor), with the predictable result that some rooms are way too hot or way too cold. (Sounds like a metaphor, watch for it…)

Things were even more extreme in the former Soviet Union, where there were centralized heating plants for a whole city, and the hot air would then be pumped out to individual homes and offices. So basically the whole city had one centralized thermostat.

Krasnoyarsk thermal power station Number 1 in Siberia. In 2008 during winter temperatures of -4 degrees, a burst pipeline at this station cut off central heat for days for some 10,000 people.

What a nice and simple solution there is: give each room its own thermostat. First, there is automatic adjustment from the thermostat to keep it from being too hot or too cold. Second, the people in the room at any one moment can choose to adjust the thermostat according to their preferences.

A thermostat is a very simple knowledge processing device. So this is a great metaphor for (here it comes!) the advantages of decentralized knowledge over centralized knowledge (Hat tip to Adam Martin for the Facebook conversation that sparked this idea).

When skeptics (like me) criticize the uselessness of very aggregated centralized knowledge on “how to do development”, we get labeled nihilists, like we’re saying nobody never knows nothing nowhere no how. But what we’re really saying is that centralized knowledge is an impossible dream for overall economic development, but decentralized knowledge can work very well.

In sum:

1) Skeptics like me are not criticizing ALL knowledge, just saying some types are useful, and others are not. And so the best systems are those that can gather and process decentralized knowledge.

2) Well-functioning markets and democracy give people their own thermostats.

Sunday, January 30, 2011

Orange Book In Ignorance

What is the value of Orange Book? Does Orange Book represent real solutions? I don’t think so. I don’t think by transferring subsidies from corporate to the hand of masses is going to be more efficient in allocating resources after what BN has done recklessly for a very long time in government. Unless for the purpose of getting votes, Pakatan Rakyat and its minister in waiting absolutely will do anything necessary to be in Putrajaya. I feel anxious in contrast. Everything is subsidize, who cares, rich and poor, equality in democracy defines socialism! I want less government, I want personal responsibility and I want to demonstrate my reason in satisfying myself. Sadly, where is free market anyway which acknowledge the theme of scarcity? Of course, politicians would definitely say free market policy doesn’t work in market failure. Market inflicts us poorer; market makes us slide into economic crash every ten years.

Yes, keep spending is the impulse here because it’s tells us how insatiable they are when it comes to spending. Spending is really a disgraceful policy because its makes government grows bigger. Citing the book, I read where figures shown cogently and its analyses have been properly and morally blatant. Orange Book is all about spending in deficits. I’m getting bores of Pakatan Rakyat simply put corruption and power abuses as their platform condemning the leakages or outflow illicit money from the country. Are there any other reasons that Pakatan could manifest instead of these ‘real’ political punch issues? Reallocation of subsidies is worse rather than cutting spending, don’t they realize? Government nationalizing the highways, government acquisition over water assets, government providing free Wi Fi, and government is giving RM500 for teachers; nobody ever going to tell me this “I don’t want all these gifts” but ironically many appreciates with “Thanks government for doing this” or better “This is the government all for the people interest” Pakatan is enticing us with money. Pakatan is molding us to be irresponsible and pliant citizens! This is immoral and implausible.

Yet, they still emulate BN’s policies as it inevitably? For too long BN is monstrously in spending and the most laudable countering policy, Pakatan must reduce its spending! If BN is creating more departments, then Pakatan must begin to perish this entire fat department! If BN is fixing the prices, then Pakatan must unfix the prices. If BN is controlling means of production, then Pakatan must do in contrast! If BN is manipulating interest rates, then Pakatan must let the market fixing its rates. What is so hard to implement after all?

Again, I really don’t like this Orange Book. I personally oppose several of its inimical agenda. As I said in earlier post, cutting spending is a must in making limited role of government. We must cut spending in all Ministries, abolishing all subsidies (including petrol, sugar etc), corporate welfare types, repealing unproductive regulations and releasing inefficient services to the private sectors. Save the money will bring greater investment efficiently correspond with market interest rates. It’s all for Austrian Business Cycle Theory (ABCT) which I propounded. For an instance, simple but not easy task for spending cuts in higher education, no further grants and annual allocation for established national higher institutions namely USM, UM, UKM, UTM and UPM. Privatize and be independent from the government. What am I going to do with student loans? Surrender it back to universities (giving loans only to the needy) to decide with its exclusive autonomy. Let them determine the interest rates for pay back. My proposal is to go out there to the market and developing your competitive edge. Do manage your annual student intakes without government intervention. It’s assuming the universities to earn reputation assiduously, or perhaps, this satisfy directly the stakeholders and I believe the country shall benefit with what they produce.

I wonder, I need third force to run all this lofty goals resisting Pakatan's temptation policies. A Tea Party Movement (Malaysia) perhaps? Or civil liberties movement whose claims themselves different? For certain, we need to do some reassessment to ensure government return to its small size. A government must pursue for strong individual character, respecting the rule of law and free society.

Sunday, January 23, 2011

Just Boys


Let’s rock with My Chemical Romance, peoples! Yeah, I really love them so much. Make it happen, make it presence. I’m waiting; I’m waiting and now what? Danger Days is here on stage, buddy. Black parade to Danger Days, you know what, they are truly damn creative, luring and persuasive in producing quality lyrics and its crazy rhythm. I must say that My Chemical Romance songs have exhilarating their fans across the globe including myself which they, patronizing my heart and mind with every ‘please’ words and its beauty all the time. No one but just boys; Gerard, Ray, Mikey and Frank. I remember and remember me! Here some of my hits; Helena, You know what they do to guys in prison, Vampires will never hurt you and etc. And now, Na na na na!!!! Can’t wait to listen the entire tracks from its new album. More info, please log on www.mychemicalromance.com