Wed, 27 Jul 2005
Competition as a commons
Hopefully everyone is familiar with the Tragedy of
the Commons. In a sentence, the tragedy works like this: if you
have a depletable resource in demand, and no person or institution can
control its use, it will be entirely consumed. This
principle applies to many things beyond the village grazing commons
from which it was originally derived. Fish, clean water, clean air,
and park benches suitable for homeless to sleep are all subject to the
tragedy. A characteristic of a commons being depleted is an
overinvestment in extractive resources, e.g. fishing boats.
The tragedy can also be applied to bad commons. That is, resources
with a negative value, e.g. ignorance, greed, or excess profit
margins. Just as we need to be careful to set property rights so that
there are no unmanaged positive commons, we also need to make
sure not to set property rights in such a way that we eliminate
negative commons.
For example, the (typically) Nigerian 419 scammer relies on
people's ignorance. In this scam, the scammer claims to have control
over millions of dollars which they cannot receive themselves.
Instead, they offer the victim a percentage in return for making the
exchange seem to be an honest business deal. Once the victim realizes
that it is a scam, no other version of the same scam will work. The
ignorance is depleted. And gauging from the feverish activity of 419
spammers sending me offers, they are overinvesting in their scam.
Or for another example, free markets create a commons out of high
profits. If someone invents a new way to make money (and no patent
applies), anyone is free to enter the market and deplete the high
profits. The purpose of the patent system is to create a manager for
this commons.
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Mon, 25 Jul 2005
Ride starting Sun Jul 24 19:31:07 2005
24.40 km 80057.46 feet 15.16 mi
4778.00 seconds 79.63 minutes 1.33 hours 11.42 mi/hr
Rode around the big loop including Norwood Pond and the Rutland Trail. On the section
of the trail that I rode today just before turning southwest, you can see the
damage that ATVs cause. Basically, it works like this: first, you get little
puddles as the ATVs kill the grass and compress the soil. The little puddles
keep the soil soft and sticky. The ATV wheels go through the puddle and pick
up a little bit of mud. That mud is then flung elsewhere on the trail. This
makes the puddle deeper. This process, unfortunately, ends when ATVs find the
mudhole so deep that they start going around the edge.
Lest ATV riders think I'm picking on them, hikers will find the above
process familiar. Exactly the same process happens with hiking
trails. There is only one solution: don't hike or ride through mud. Hikers
have figured this out and put out alerts about wet trails. People are
officially discouraged from hiking during times when a trail is wet, e.g.
during mud season (the season between winter and spring).
Unfortunately, the Rutland Trail's drainage ditches are often clogged with
debris. The puddles never drain and never dry out, so now there are some
serious mudpits near Knapps Station, or as the map below calls it, "North
Stockholm." The drainage ditches need to be cleared, and the puddle holes
filled with some material which will drain.

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I can blame authorities for trying...
"You can't blame authorities for trying [to stop
terrorism using methods which are not
constitutional]."
Yes, I can. They know that what they are doing is a senseless waste
of taxpayer dollars. Being terrified by terrorism is exactly and
precisely the goal of terrorism. It is clear to anybody with two
brain cells to rub together that individuals have substantial ability
to kill many other individuals. It is clear to anybody with three
brain cells to rub together that if you stop them from doing one
thing, they will move on to do another.
How do you stop terrorism?
By not being terrified. By not overreacting. By not giving up
essential liberties to obtain a little temporary safety. By not
wasting treasure on useless tactics.
We are a country which kills 20,000 of its own citizens yearly with
guns, and we don't ban guns. We are a country which kill 50,000 of
its own citizens yearly with cars, and we don't ban cars. Heck,
30,000 US citizens kill themselves each year on purpose.
If terrorists came to America and killed 1,000 people a year, it
wouldn't even begin to show up on the causes of death. We
can safely ignore terrorism. Rational public policy would have put
the money spent combatting terrorism into something more sensible,
like a billion for energy research, another billion for alternative
energy subsidization, another billion for mixed-mode transportation.
The above was published on Dave Farber's IP list. I received
several "attaboy"s and one comment saying "Anyone with a single brain
cell would agree that we need to stop terror." I disagree. Do we
need to stop earthquakes? Hurricanes? Tornados? Volcanos?
Blizzards? Or do we need to survive them?
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Sat, 23 Jul 2005
Ride starting Sat Jul 23 19:56:49 2005
26.67 km 87487.55 feet 16.57 mi
5218.00 seconds 86.97 minutes 1.45 hours 11.43 mi/hr
Whoopsies! Started this ride way too late. Should have gone on a
much shorter ride. Ended up coming home in the dark. Like "headlights on and
invisible to cars" dark. Oh well. It was an excellent ride, including two
very much back roads.
Holding to a philosophy of riding whenever the weather permits, I
am learning something about myself. I really really enjoy the feeling of
being out on the road pumping the pedals. The beautiful landscape, the
physical challenge, the attention to breathing, all make me very happy.
And yet, I find that I have a certain reluctance to get on the saddle.
I don't think the word "laziness" describes it adequately, although
it would be easy to use that word. I think it may be a desire to do
all the other things that I could be doing, e.g. blogging, or reading,
or surfing the web.

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Fri, 22 Jul 2005
Democrats have stupid ideas
Earl asked me why Democrats
have stupid ideas. I've already blogged on these topics -- that's
why I had links to the blog entries, but I'll write really really
succinctly here why I think the Democrats are pursuing a losing
cause.
The minimum wage does one of two things: it is either so low that
it doesn't help much, or it is so high that it puts the worse-off
workers (the ones you'd really prefer to help) out of a job. Anything
in-between is a compromise between helping people insufficiently and
putting only a few people out of a job.
Public schooling hands the education of our children over to the
government. The government is not your friend. It is at best an
enemy you can tolerate. Such toleration should not include allowing
them to teach your children.
Medicare pursues the automotive maintenance model of health care.
You're the car, the doctor is the mechanic, and the government is the
owner who pays the bills and decides whether the car is worth fixing
or not.
Labor unions are fine as voluntary organizations. Unfortunately, they
have been granted a protected status under the law that causes them to
be more concerned about their own existance than protecting worker
interests. Since their only task is to protect their own member's
jobs, they serve private parties, not a public benefit. There is no
reason to give them special protection.
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Mon, 18 Jul 2005
Democrats have ideas
Apparently the idea is going around that Democrats
have no ideas. That's silly. Of course Democrats have ideas.
The trouble is that they have stupid ideas. For example,
they keep pushing the minimum
wage or labor
unions or health
care or public
schooling.
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Wed, 13 Jul 2005
Consumer/Worker Protection
Many people think that the role of government is to protect "the
little guy" from corporations. Free-market economists disagree. It
is the role of competition to protect the little guy from
corporations. The problem is one of information. How do you discern
the proper amount of protection? After all, you can completely
protect consumers by preventing corporations from selling anything,
and workers by preventing corporations from employing anyone. Set the
protection level high enough, and that's what you get even if that's
not what you meant.
Free-market economists believe that government cannot ever set the
protection level correctly. The information cannot flow to the
government quickly enough to adapt to changing workers, economic
conditions, technology, procedures, and the market for safety.
People's desire for protection also changes over time and their life
circumstances. There is no one correct level &emdash; any one level
set by the government will be wrong for some people.
Does that leave "the little guy" screwed?
No. You see, it is corporations themselves that have the
information necessary to set the protection level correctly for their
market. They won't volunteer that information. Instead, they will
reflect it in their prices. If they are not protecting the consumer,
competition will force them to charge lower prices. If they protect
the consumer more, competition will allow them to charge higher prices.
Does that mean that consumers have to have perfect information in Libertopia?
No. Probably only 10% of consumers take the time to compare
prices, quality, etc. These people are admired, though, and less
diligent consumers listen to them. Over time, their information
distributes itself among the less concerned shoppers. If a company is
charging too much for too little protection, it will have lowered
sales.
Free-market economists aren't in favor of less consumer protection.
They're in favor of a different kind of consumer protection -- one
which they believe generates a greater diversity of results which
better matches the needs of individuals.
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Ride starting Wed Jul 13 19:29:32 2005
15.43 km 50610.53 feet 9.59 mi
2984.00 seconds 49.73 minutes 0.83 hours 11.56 mi/hr
Stinking hot. Still 86 degrees and it's 8:24PM. Sweating like a pig.
Oink, oink.

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Economics as opinion
It seems clear to me that many people interpret differences between
economists as evidence that economics is solely in the realm of
opinion. I disagree with this conclusion. Economists disagree on the
things which are not yet decided. Economics is very much a live
discipline at this time. The person who brought transaction costs
(Ronald Coase) to our attention is still alive! The founders of the
public choice school of thought are still alive.
Unfortunately, economists do not do a good job informing people of
the things which are well decided, about which differing opinions are
not valid. It's not news when a controversy is resolved. People
don't read the news for agreement; they read it to find out about
controversy.
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Sun, 10 Jul 2005
Nuangola Station
I visited the Wilkes-Barre and
Hazelton Railway on Saturday night. By chance, the photo I took
of the remains of the station
was taken from very nearly the same point that a historic picture was
taken:
Some people in the house just to the right of the modern photograph
told me that yes, this was the trolley line heading underneath the
mountain. They said that the tunnel was blocked about 1/4 of the way.
Being a half-mile tunnel, that implies that you can still travel 1/8th
of a mile under Penobscot Mountain. Unfortunately, I didn't have time
to make the one-mile hike back to the tunnel portal to
investigate.
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Fri, 08 Jul 2005
Ride starting Fri Jul 8 09:43:01 2005
19.51 km 63998.70 feet 12.12 mi
6450.00 seconds 107.50 minutes 1.79 hours 6.77 mi/hr
The final ride, out and back on the Huckleberry trail. We sent the long
ride down the hill to Ellet and back up again. The happy crew:

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Thu, 07 Jul 2005
Ride starting Thu Jul 7 15:39:30 2005
0.19 km 627.70 feet 0.12 mi
388.00 seconds 6.47 minutes 0.11 hours 1.10 mi/hr
Not a ride, but instead a record of me finding the geocache along the
Huckleberry Trail.

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Wed, 06 Jul 2005
Ride starting Wed Jul 6 14:36:14 2005
83.22 km 273040.22 feet 51.71 mi
18998.00 seconds 316.63 minutes 5.28 hours 9.80 mi/hr
Rode the New River Trail. It's a former Norfolk Southern
railbed from Pulaski to Galax and Fries. We rode the longer section from
Galax to Pulaski. The line to Fries is only five miles long, so we didn't
ride any portion of it. We (David
Boynton and I) rode nearly 52 miles. The intrepid bicyclists before setting
out:
The first tunnel is along the Chestnut River. You can see that Dave is
swallowed up by the tunnel entrance:
It appears as if the tunnel
continues on forever in the pitch-black. However, before you run out of light
from the entrance, the tunnel curves enough to let you see the exit:
I really like this picture of Dave riding out of the tunnel:
Dave took a picture of me exiting the tunnel:
We took a break at Fries Junction:
You can get a sense of how pretty the trail is from this picture:
The second tunnel, along the New River:
It started to rain after that, and I had to stop taking pictures. The ride
was downhill to the point where it left the New River to connect to the
north-south line through Pulaski. All in all a very pleasant, but tiring
ride.

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Ride starting Wed Jul 6 09:31:42 2005
18.64 km 61141.86 feet 11.58 mi
6719.00 seconds 111.98 minutes 1.87 hours 6.20 mi/hr
Rode to Merrimac and joined up with the Huckleberry Trail. Very pretty
ride once you get off Prices Fork Road.

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Tue, 05 Jul 2005
Ride starting Tue Jul 5 09:34:34 2005
16.40 km 53811.52 feet 10.19 mi
6769.00 seconds 112.82 minutes 1.88 hours 5.42 mi/hr
On Tuesday we went out on the ride I did on
Saturday. One difference is that we went down
Country Club Lane to the Huckleberry Trail instead of riding on 460 Business.

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Mon, 04 Jul 2005
Ride starting Mon Jul 4 09:47:32 2005
19.07 km 62564.77 feet 11.85 mi
4670.00 seconds 77.83 minutes 1.30 hours 9.13 mi/hr
Monday's ride went out Glade Road to Tom's Creek and then back through
Prices Fork. Exactly where the route turns in Prices Fork somebody has a cute
sign reading "Weeds Have Rights Too" at the edge of his abbreviated lawn.
The steepest part of this ride was coming up from Tom's Creek. Otherwise the
hills were merely rolling, not killer.

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Sun, 03 Jul 2005
Ride starting Sun Jul 3 11:12:01 2005
9.35 km 30667.58 feet 5.81 mi
3428.00 seconds 57.13 minutes 0.95 hours 6.10 mi/hr
The first workshop day of the Gathering doesn't start until after
the Gathering-wide worship on First-day, so we didn't have much time to ride.
I took them out the Huckleberry Trail until half the time had elapsed and
then we turned around. I rode with the short ride all week. The long riders
got as far as the bridge over the existing rail line.

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Sat, 02 Jul 2005
Ride starting Sat Jul 2 09:07:56 2005
16.10 km 52816.36 feet 10.00 mi
4560.00 seconds 76.00 minutes 1.27 hours 7.90 mi/hr
Just got back from the Quaker Gathering at Virginia Tech in Blacksburg, VA. I led the Meeting for Bicycling
workshop there. The next 8 posts will cover the rides I led.
This ride, although not long, went down 700 feet into the valley.
And back up again, of course. I did this ride before the first workshop
to make sure that the
less-experienced riders would be able to walk the steepest sections. This is
the steepest ride that we did all week.

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