Nation of victims: the Inspector General’s perspective

I attended a wedding this weekend in Massachusetts (a healthy percentage of the upper-income attendees had been defendants in custody, child support, and alimony lawsuits so people were a little less sentimental than in other states (Best Man: “[the groom] said that if I did a good job today that I could be best man at the next one.”)). As it happened I was seated next to a retired U.S. military officer who had been “inspector general” for eight years on a base with about 1200 members of the military.

What were his office’s responsibilities? “The majority of the work was handling complaints about discrimination or harassment,” he responded. “Mostly women complaining about sex discrimination but also some race discrimination complaints.” What percentage had merit? “About one percent,” he said. “If these people had put half of the effort that they put into pursuing complaints into working the base would have been about twice as productive.”

I thought of that conversation today while watching television in our local airport lounge. The man who murdered Alison Parker and Adam Ward in Roanoke, Virginia (Wikipedia) was a frequent flyer in the American grievance system, having sued one employer for race discrimination and threatened a second employer with an Equal Employment Opportunity Commission complaint.

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Extreme power reduction in a Cessna 172

Nightmare for flight instructors: Nasa drop-tests a Cessna 172 from 100 feet: on YouTube. Maybe a good reminder to students to maintain airspeed and keep a touch of power in for normal approaches and landings…

(The goal was to test emergency locator transmitters (a selection) that are supposed to start transmitting in response to high G forces.)

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Parent’s view on topless women in Times Square

A friend arrived in Manhattan with his three children just in time for the press to erupt with stories about topless women in Times Square (e.g., nytimes, Daily News). His response to the complaints that this kind of, um, exposure would be bad for children: “It is not even in the top 100 things in NY that can harm children.”

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Petco: Private Equity home run

“Petco Files IPO, Plans Return to Public Markets” is a Wall Street Journal story about Petco, which keeps going back and forth between private and public. The private equity guys last purchased the company from public shareholders in 2006 for $1.7 billion. Now they will sell it back to the public for $4 billion. So a starting theory could be that they collected $2.3 billion from the public shareholders. “8 Takeaways from Petco’s IPO Filing” is a follow-up WSJ piece noting that “Since TPG and Leonard Green took Petco private, they’ve received two dividends. The first one came in 2010, when Petco made a cash payment to its PE owners of roughly $700 million. Moody’s estimates this payment returned over 85% of the equity invested in the company by its owners. In 2012, the company made another dividend payment of roughly $589 million.” In other words, whatever the private equity guys put at risk has been completely paid back. The money that comes from this IPO and the value of their remaining holdings will be gravy.

Presumably it is successes like this that keep people excited about private equity.

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Video simulation of Burning Man airspace

Here’s an interesting use of video for education: a Burning Man airspace movie. It shows simulated airplanes arriving, departing, and in scenic traffic around the event.

[Non-pilots: I think this video still might be worth watching to see how three-dimensional information is presented.]

Readers: Have you seen similar videos? e.g., for Oshkosh?

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Entrepreneurs: Set up that Irish subsidiary early!

“How Etsy Crafted a Tax Strategy in Ireland” is a Wall Street Journal article about the arts and crafts marketplace working to escape U.S., New York State, and New York City tax rates on its $200 million/year in revenue:

In Etsy’s case, it set up a subsidiary in Ireland, the location of its European headquarters, then lent the unit money to be used to buy intellectual property from the U.S. company, according to a person familiar with the situation. The details of how Etsy set up the Irish subsidiary and how it plans to use it to reduce taxes hadn’t previously been known.

Etsy’s U.S. tax bill will increase initially, because the U.S. company made money on the sale of the intellectual property. But the structure is expected to eventually reduce Etsy’s U.S. tax bill because the income associated with the intellectual property held in Dublin will be taxed at the Irish rate of 12.5%, much lower than the U.S. rate.

It turns out that the company is going to pay at least $15 million in additional taxes in the short term, but these could have been avoided if the Irish subsidiary had been set up earlier and the intellectual property transferred when it wasn’t worth so much.

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How well does 4K streaming from YouTube work?

Folks:

In an effort to win a prize for highest ratio of technology to subject matter interest, I have directed and co-starred in a 4K video. Location: our kitchen. Camera: Sony RX100 IV. Tripod: none. Lighting: Overhead track with LED bulbs from Costco. Then I uploaded two copies to YouTube:

This raises a few questions…

  1. why doesn’t YouTube just refuse to let people upload stuff like this? Or limit them to 720p?
  2. can you see a difference between the versions? Or does YouTube compression render the differences in the original file quality irrelevant?
  3. can you get smooth playback at true 4K? (for me the answer is “yes” with Windows Media Player locally on this Windows 10 desktop, “no” with VLC locally, “yes” with streaming YouTube on Verizon FiOS, “no” with streaming YouTube on Comcast)
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Child support litigation in Canada

An article on a child support lawsuit in Canada may be worth watching. The plaintiff is “Alana Jung, a 25-year-old college student studying early childhood education.” She had sex with a basketball player and now, under the Canadian child support formula, a nationwide system unlike our state-by-state patchwork, she is entitled to a tax-free $1.355 million per year. As there is no fixed age for the termination of child support in Canada (see the Canada chapter of Real World Divorce), she is potentially looking at 25 years of revenue or $33.9 million total. An early childhood educator in Alberta earns about $14.50 per hour (source) pre-tax. Ignoring the tax differential and assuming 1800 hours of work per year, the plaintiff would there collect 1300 years of income under the formula.

The defendant has offered to give her $180,000 per year, which would work out to perhaps $4.5 million until the child ages out of the system. The plaintiff seeks somewhere between $600,000 per year and $1 million per year (up to $25 million in revenue). Supposedly in mid-October a judge will decide what level of profitability is appropriate.

Canadians sometimes express resentment that ownership of a child is more profitable than going to college and working, but in fact children in Canada are less lucrative than children in some U.S. states.

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Incentives and drunken driving

A lot of what I’ve written over the years here concerns the tension between the research economists and psychologists, who say that human behavior is pretty easy to change with incentives, and politicians who say that human behavior won’t be affected by incentives (e.g., Book Review: The Redistribution Recession looks at what happened when politicians offered to give Americans free houses, food, and health care on condition that they not take a W-2 job; Real World Divorce looks at the extent to which Americans will fight for custody of children who yield more cash than going to college and working).

“A Simple Fix for Drunken Driving” is a WSJ article on the same general theme. Psychologists who get paid to treat alcoholics believe that straightforward incentives (not involving paychecks to therapists) won’t affect their behavior:

Among the most enduring of these myths is the idea that no one can recover from a drinking problem without our help. Treatment professionals save many lives that would otherwise be lost to addiction, but we are not the sole pathway to recovery. National research surveys have shown repeatedly that most people who resolve a drinking problem never work with a professional.

Some members of the addiction field can also be faulted for spreading an extreme version of the theory that addiction is a “brain disease,” which rules out the possibility that rewards and penalties can change drinking behavior. Addiction is a legitimate disorder, in which the brain is centrally involved, but as Dr. Higgins notes, “it is not akin to a reflex or rigidity in a Parkinson’s patient.”

In their haste to ensure that people who suffer from substance-abuse disorders are not stigmatized, some well-meaning addiction professionals insist that their patients have no capacity for self-control. Most people with alcohol problems do indeed struggle to make good choices, but that just means they need an environment that more strongly reinforces a standard of abstinence.

This belief has persisted for roughly 25 years after a 1991 paper showing that cocaine users could be “induced to refrain from it when promised a small reward, like $10 for a negative urine test.”

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How much energy do American college students actually spend on microaggressions, etc.?

Atlantic Magazine’s September 2015 issue has a couple of articles written by old people about how worthless young people are. “The Coddling of the American Mind” writes about students as interested in “microaggressions” as students in Missoula were in partying:

Last year, at the University of St. Thomas, in Minnesota, an event called Hump Day, which would have allowed people to pet a camel, was abruptly canceled. Students had created a Facebook group where they protested the event for animal cruelty, for being a waste of money, and for being insensitive to people from the Middle East. The inspiration for the camel had almost certainly come from a popular TV commercial in which a camel saunters around an office on a Wednesday, celebrating “hump day”; it was devoid of any reference to Middle Eastern peoples. Nevertheless, the group organizing the event announced on its Facebook page that the event would be canceled because the “program [was] dividing people and would make for an uncomfortable and possibly unsafe environment.”

The article points out that being so thin-skinned that you can’t handle hearing someone talk about something upsetting is an official sign of mental illness (see the “Common Cognitive Disorders” list at the end).

“That’s Not Funny!” is a companion piece by the awesome Caitlin Flanagan (not officially “old” but a different generation than today’s college kids). She goes to a convention where colleges book comedians to come to the campus:

I saw ample evidence of the repressive atmosphere that Rock and Seinfeld described, as well as another, not unrelated factor: the infantilization of the American undergraduate, and this character’s evolving status in the world of higher learning—less a student than a consumer, someone whose whims and affectations (political, sexual, pseudo-intellectual) must be constantly supported and championed. To understand this change, it helps to think of college not as an institution of scholarly pursuit but as the all-inclusive resort that it has in recent years become—and then to think of the undergraduate who drops out or transfers as an early checkout. Keeping hold of that kid for all four years has become a central obsession of the higher-ed-industrial complex. How do you do it? In part, by importing enough jesters and bards to keep him from wandering away to someplace more entertaining, taking his Pell grant and his 529 plan and his student loans with him.

But which jesters, which bards? Ones who can handle the challenge. Because when you put all of these forces together—political correctness, coddling, and the need to keep kids at once amused and unoffended (not to mention the absence of a two-drink minimum and its crowd-lubricating effect)—the black-box theater of an obscure liberal-arts college deep in flyover territory may just be the toughest comedy room in the country.

These articles make for fun reading (especially Flanagan’s) but are they covering representative behavior on campus? If American college kids were spending this much time arguing about microaggression, wouldn’t Fortune 500 companies be expanding a lot faster in Asia and Germany so that they could hire young people who were more work-oriented? (Companies could stay in the U.S. and hire older workers rather than recent college graduates but we are all apparently comfortable with age discrimination by U.S. employers (since the media doesn’t bother to cover it).)

[Separately, when will we find a college that shows a genuine commitment to diversity by encouraging older people, e.g., in their 40s or 60s, to enroll as full-time students? How is a group of (mostly American) 18-22-year-olds “diverse”?]

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